Full text of Federal Reserve Bulletin : June 1992
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
VOLUME 78 •
NUMBER 6 •
JUNE 1992
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 • 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
403 AN ANALYSIS OF POTENTIAL TREASURY
AUCTION TECHNIQUES
By reviewing the academic literature on auctions, this article puts current Treasury practice and a popular proposal for reform in critical perspective. It also examines an alternative
scheme that uses technology to give better
protection against certain kinds of manipulative behavior and that has a potential for lowering borrowing costs.
414 INDUSTRIAL PRODUCTION AND
CAPACITY UTILIZATION
The index of industrial production rose
0.2 percent in March, after having increased a
revised 0.5 percent in February. Total industrial capacity utilization rose 0.1 percentage
point in March, to 78.1 percent.
417 STATEMENTS TO THE CONGRESS
Alan Greenspan, Chairman, Board of Governors, discusses recent stock market developments in Japan and says that the impact on the
United States from changes to date in Japanese stock prices is likely to be limited, before
the Senate Committee on Banking, Housing,
and Urban Affairs, April 17, 1992.
421 David W. Mullins, Jr., Vice Chairman, Board
of Governors, presents the views of the Board
on proposed legislation concerning the government securities market and says that substantial progress has been made in exploring,
identifying, and implementing approaches to
improve Treasury auctions and that this process should be allowed to run its course before
the Congress turns to legislative approaches to
reform, before the Subcommittee on Domestic
Monetary Policy of the House Committee on
Banking, Finance and Urban Affairs, April 28,
1992.
425 Peter D. Stemlight, Executive Vice President,
Federal Reserve Bank of New York, testifies
on matters related to the U.S. government
securities market, focusing on automating
Treasury auctions, and says that additional
legislation is not needed to ensure that public
confidence in the auction process is not impaired, before the Subcommittee on Domestic
Monetary Policy of the House Committee on
Banking, Finance and Urban Affairs, April 28,
1992.
428 ANNOUNCEMENTS
Interim regulation to implement Foreign Bank
Supervision Enhancement Act of 1991.
Revisions to the staff commentary on Regulation B (Equal Credit Opportunity).
Interim rule to amend Regulation Y (Bank
Holding Companies and Change in Bank
Control).
Proposed new Regulation DD to implement
the Truth in Savings Act.
Publication of revised Lists of Marginable
OTC Stocks and of Foreign Margin Stocks.
Changes in Board staff.
431 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET COMMITTEE
At its meeting on February 4-5, 1992, the
Committee established ranges for growth of
M2 and M3 of 2Vi to 6V2 percent and 1 to
5 percent respectively, measured from the
fourth quarter of 1991 to the fourth quarter of
1992. The monitoring range for growth of
total domestic nonfinancial debt was set at
41/2 to 8V2 percent for the year. In carrying out
policy, the Committee indicated that it would
continue to evaluate the behavior of the monetary aggregates in the light of progress toward
price level stability, movements in their
velocities, and developments in the economy
and financial markets.
With regard to the implementation of policy for the period immediately ahead, the
Committee adopted a directive that called for
maintaining the existing degree of pressure
on reserve positions but that included a bias
toward possible easing during the intermeeting period. Accordingly, the directive indicated that in the context of the Committee's
long-run objectives for price stability and
sustainable economic growth, and giving
careful consideration to economic, financial,
and monetary developments, slightly greater
reserve restraint might be acceptable or
slightly lesser reserve restraint would be
acceptable during the intermeeting period.
The reserve conditions contemplated at this
meeting were expected to be consistent with
growth of M2 and M3 at annual rates of
around 3 percent and IV2 percent respectively
over the three-month period from December
through March.
441 LEGAL DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and
pending cases.
A1 FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as of
April 28, 1992.
A3 GUIDE TO TABULAR PRESENTATION
A4 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A69 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
A70 INDEX TO STATISTICAL TABLES
A72 BOARD OF GOVERNORS AND STAFF
A74 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A76 FEDERAL RESERVE BOARD
PUBLICATIONS
A78 SCHEDULE OF RELEASE DATES FOR
PERIODIC RELEASES
A80 MAPS OF THE FEDERAL RESERVE
SYSTEM
A82 FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES
An Analysis of Potential Treasury
Auction Techniques
Vincent Reinhart, of the Board's Division of Monetary Affairs, prepared this article.
Last summer's revelation of abuses of the rules
governing the primary market for government securities spurred a comprehensive review of all aspects
of market activity. Some of that work appeared in
the Joint Report on the Government Securities
Market, which the U.S. Department of the Treasury, the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal
Reserve System transmitted to the Congress in
January 1992. While the Joint Report addressed
many issues, its advocacy of experimentation with
alternative auction designs for selling Treasury
securities in particular attracted considerable attention. This attention likely owed to the sizable
stakes. With the outstanding federal debt totaling
$2.8 trillion and mounting with each year's fiscal
deficit, the gain to the Treasury from even a modest
improvement in selling technique could be substantial. In fiscal year 1991, for example, gross issuance by the federal government exceeded $1.7 trillion. Given that scale of borrowing, a reduction of
one basis point in the average annual issuing rate at
Treasury auctions would trim more than $200 million from the federal deficit each year. At the same
time, the Treasury must maintain the integrity of
the auction process by ensuring that no illicit activity is hidden by the sheer volume of transactions. A
concern by investors that the market was not open
and fair would be translated into lessened demands
for Treasury debt and higher costs of borrowing.
By reviewing the academic literature on auctions, this article puts current Treasury practice and
a popular proposal for reform in critical perspective. It also examines the alternative scheme
embraced in the Joint Report that uses technology
to give better protection against certain kinds of
manipulative behavior and that has a potential for
lowering borrowing costs.
BACKGROUND ON BIDDING
There is a large academic literature on auctions,
with important early contributions by William
Vickrey and Milton Friedman and significant later
work by Paul Milgrom, among others (see the
references at the end of the article). This research
has classified the types of auctions, rigorously modeled the bidding strategies, and ranked auctions by
various criteria regarding efficiency. Unfortunately,
this literature has a language all its own that differs
from the terms that the financial press uses. To
avoid confusion, this article will use explicit, if
somewhat unwieldy, names for each auction.
William Vickrey established the basic taxonomy
of auctions by classifying them based on the order
in which prices are quoted and the way in which
bids are entered.1 First, securities can be awarded
at prices that are progressively lowered until the
entire issue is sold; alternatively, the auctioneer can
arrange the bids in ascending order by their price
and decide on a single price that places the total
issue. By the second measure, the auction can be a
private affair with sealed bids opened by the auctioneer, or it can be conducted in real time, with
participants in a single room or connected by phone
bidding in public. This two-by-two classification
yields four auction types: the first-price sealed-bid
auction, the second-price sealed-bid auction, the
descending-price open-outcry auction, and the
ascending-price open-outcry auction.
Complicating matters, researchers after Vickrey
further classified models by an assumption about
the information that bidders have regarding the
value of the auctioned object. One such model is
the private-values case, in which bidders' valuations are subjective decisions, independent of each
1. William Vickrey, "Counterspeculation, Auctions, and Competitive Sealed Tenders," Journal of Finance, vol. 16 (March
1961), pp. 8-37.
404
Federal Reserve Bulletin • June 1992
other. Another is the common-values case, in which
each participant attempts to measure the value of
the item by the same objective yardstick. The
auction of a unique work of art not for resale is the
prototypical private-values model, whereas a Treasury auction—with each bidder guessing at the
security's value at the end of the day—is an example of a common-values model. This article concentrates on the common-values case, which is
applicable to the sale of Treasury securities, and
also assumes that agents care only about maximizing profit.
In general terms, the expected profit from winning an auction for bidder 1, n u depends on the
expected value of the security in secondary market
trading, Vj, less the awarded price, b u times the
probability of winning the auction, Pr{-}. In more
formal terms and using i as an index to represent
the bidders in the auction,
Ttj = (vt - bx) - Pr{bx > bt, for all other /}.
The format of the auction determines how the bid
price affects the probability of winning and the
profit from acquiring the security, as well as what
information is revealed about the security's value
through the auction process.
First-Price Sealed-Bid
Auction
The current practice of auctioning government
securities falls into the first-price sealed-bid category, which in the financial community is termed
an English auction (except by the English, who call
it an American auction). Bidding takes place in
private and, as diagram 1 shows, awards are made
at the highest priced bids covering the total auction
size. It is termed a first-price auction because in the
1. First-price sealed-bid auction
sale of one unit of good or security the award is
made at the highest bid. In the figure, the horizontal
bars measure the cumulative amount of bids at the
given price or higher.2 Thus, participants pay differing prices reflecting the strength of their bids.
In terms of the expected return from winning the
auction, a high bid lowers the profit from victory
and raises the probability of winning. The strategic
bidder trades between the two: He or she lowers
the bid relative to valuation in order to profit more
from winning and accepts the risk of lowering the
probability of winning. The optimal strategy is to
shade a bid toward the perceived market consensus; the more certain that consensus is (in terms of
lower variability), the more the strategic investor
will shade his or her bid. 3
Another factor comes into play in the commonvalues case: Since all participants guess about the
price—where the security will trade after the
auction—a high bid signals a heightened probability of subsequent loss of profit for that bidder. In
that sense, winning is losing, as entering the highest bid signals that one's valuation exceeds that of
all other interested parties. This is the "winner's
curse" and gives aggressive bidders an additional
reason to rein in their enthusiasm. Avoiding the
winner's curse may lead to the pooling of bids, as a
group of investors is more likely to have a clearer
view of the market consensus and is less likely to
be in the far end of the bid-price distribution. The
pooling of bids is a service provided by dealers,
who collect customer business and place largescale orders.
Second-Price
Sealed-Bid
Auction
The Treasury could collect sealed bids, arrange
them by price, and award all the securities at a
single price that just places the entire issue (diagram 2). This auction is termed second-price because, when a single unit is on the block, the price
charged would be that of the highest bid below the
price that places the issue, or the second-best price.
The second-price auction, called a Dutch auction in
2. Treasury auctions are actually conducted in terms of yields;
for convenience, I discuss them in terms of price.
3. James L. Smith, "Non-Aggressive Bidding Behavior and the
'Winner's Curse,'" Economic Inquiry, vol. 19 (July 1981),
pp. 380-88.
An Analysis of Potential Treasury Auction Techniques
405
3. Descending-price open-outcry auction
2. Second-price sealed-bid auction
Price
Auction size
Quantity
the financial press, has been proposed as a simple
alternative to current Treasury practice that would
prevent the type of abuses witnessed last year while
lowering average borrowing costs. 4
A second-price auction, in which the winner
pays, not his or her bid, but only the second-best
bid, severs the gain in winning from the probability
of winning. An aggressive bidder can receive a
sure award but pay a price closer to the market
consensus. As a result, less of the shading that
marks the response to the winner's curse should
occur. Accordingly, customers may be more willing to place their business directly by bidding at the
auction than to go through a dealer.
Descending-Price
Open-Outcry
Auction
This procedure is used to auction flowers in the
Netherlands, hence it is referred to by academics as
a Dutch auction. Bidders congregate in one room,
or plug into its electronic equivalent, and wait as
the auctioneer calls out a sequence of decreasing
prices. In an auction of one unit of a good or
security (diagram 3), the auction stops when one
bidder is willing to pay the price called out. For
multiple units, the eager bidder is awarded the
security, and the auction continues, with the auctioneer selling the remaining securities at progressively lower prices. The strategic decision is identical to that of the first-price sealed-bid auction: The
optimal bidder does not want to be too aggressive
and stop the auction well above the likely market
consensus, but will shade his or her bid to avoid the
winner's curse. In other words, what market particl
i
4. Milton Friedman, "How to Sell Government Securities,"
Wall Street Journal, August 28, 1991. Merton Miller also has
embraced this reform, as quoted in Diana B. Henrique, "Treasury's
Troubled Auctions," New York Times, September 15, 1991.
ipants refer to as an English auction is strategically
identical to what academics refer to as a Dutch
auction. As a result, investors have the same incentive to pool bids and place customer orders at
dealers.
Ascending-Price
Open-Outcry
Auction
The auctioneer can just as well cry out an ascending sequence of prices to the gathered bidders,
stopping the auction when enough are willing to
take down the total issue. Such a price sequence is
plotted in diagram 4 for the auction of a single
good or security. In keeping with the mirror imaging, academics term this an English auction. 5
The auction of multiple units of a security begins
as a price is called out and all interested parties
submit their quantities demanded. The volume of
bids at that price is announced and, in successive
rounds, the price is raised until the volume demanded is smaller than the issue. When that point
5. Indeed, in the private-values model (which we do not analyze), another equivalence proposition holds: What market participants refer to as a Dutch auction is strategically identical to what
academics refer to as an English auction—unless there is a time
limit on the bidding, in which case it is called a Scotch auction.
4. Ascending-price open-outcry auction
Price
406
Federal Reserve Bulletin • June 1992
is reached, the seller knows that the price just
previously called out is the highest price consistent
with placing the entire issue—that is, it clears the
primary market. Everyone who bids at the top price
and some fraction of the bidders at the previous
price not in the top group receive awards at that
lower price. 6 As the auctioneer calls out an increasing price list, bidders receive news that participants
prize the security more highly than those low
quotes. In effect, the auctioneer's initial announcements rule out low-price outcomes, revealing that
the true market value is probably higher. This increasing sequence of prices lessens the winner's
curse. Besides, if an investor is truly alone in
valuing the security highly, the auction stops before
the price is pushed too far up when the other
bidders drop out.
In 1961, Vickrey established that the four major
auction formats provide equal proceeds to the seller
when individual valuations are independent. Obviously, the Treasury market violates this assumption, as the value that bidders place on the security
reflects an imperfect estimate of the price in subsequent market trading—that is, bidders in a Treasury auction care about the common value of the
security. In the common-values case, as later researchers showed, an ascending-price open-outcry
delivers the greatest proceeds to the seller under
many circumstances. 7 Essentially, in such an auction, bidders condition their behavior on the highest expected value of the security and shade their
bids the least relative to the other formats.
THE POTENTIAL FOR PROFIT IN AUCTIONS
The current auction format elicits one form of
strategic behavior: Because awards are priced at
the bid, the participants have incentives to shade
their bids to avoid the winner's curse. As a result,
customers have an incentive to pool their bids with
dealers so that a combination of bids can, by a law
of large numbers, be appropriately cast. The auc6. Those partial awards might go to those who were electronically timed as placing the earliest bids or to all bidders on a pro rata
basis.
7. This was shown formally by Paul Milgrom and Robert J.
Weber, "A Theory of Auctions and Competitive Bidding," Econometrica, vol. 50 (September 1982), pp. 1089-122, theorem 11.
tion format may encourage two other types of
strategic behavior as well. First, a dealer may
combine with a customer to corner a significant
portion of one auction—70 percent under the current rules. This strategy is called single-dealer cornering. Second, a group of dealers can conspire to
accomplish the same end; this strategy is called
collusive combining. In a sealed-bid auction, to
garner the lion's share of awards, the single strategist or the group need make only a slightly more
aggressive bid than the other participants expect.
Indeed, the second-price auction, a popular candidate to replace the current format, may make these
strategies less expensive for the purchasers than
they would be under current practice. The strategic
purchaser could corner the issue by bidding substantially more than the market consensus but pay a
price closer to the mass of the distribution that
marks the other bids.
Clearly, single-dealer cornering and collusive
combining are similar. However, the informational
requirements and incentives for these two types of
strategic behavior vary across auction type, and
actions taken to combat one might make the other
more likely. To analyze the collusive potential in
auctions, one must first understand the incentive
behind cornering an auction—or the way in which
one variety of squeeze can work.
How a Corner
Works
The potential for profit in a corner, or squeeze, lies
in the interaction of the three main trading forums
for Treasury securities: the when-issued market,
the Treasury auction, and the secondary market.
Those markets are represented by the three panels
of diagram 5, arrayed by time—before, at, and after
the auction. As the right panel shows, the price of a
Treasury security must satisfy the ultimate holders
of securities (pension funds, insurance companies,
mutual funds, and the general investing public),
seen as the intersection of their downwardly sloped
demand schedule with the vertical Treasury supply
schedule.
Current auction procedures, however, get securities to those holders indirectly, through the intermediation of dealers. As the middle panel shows, the
demand derived from current and anticipated customer orders produces a flatter and more inward
An Analysis of Potential Treasury Auction Techniques
407
5. The three main markets for Treasury securities, according to time of trading
During when-issued trading
At the auction
schedule at the auction as a result of the shading of
bids in the attempt to avoid the winner's curse.
An investor can purchase the security before the
auction, as long as he or she can find someone
willing to sell it short. The when-issued market,
shown in the left panel, matches those parties.
Those seeking secure ownership rights trace a
downwardly sloped demand schedule, while those
willing to sell what they do not yet have make up
the short-sale schedule. Selling a security before
the auction involves a risk, as short sellers may not
win awards at the auction to cover their open
positions and so will have to borrow or buy the
security after the auction settles to make delivery.
Accordingly, the when-issued price should clear
above the expected auction price.
The cornering of an auction is depicted in diagram 6. Short sales are made at a price just enough
above the anticipated auction price to pay the sellers for exposing themselves to the likely risk at the
auction. Those sellers, however, turn out to be
wrong about the auction for, while the market
consensus coalesces around bids consistent with
the Demand schedule in the middle panel, one
party comes in with bids that shift the actual schedule to Demand'. The cornerer exploits the sealedbid nature of the auction: By bettering the market
consensus, the schemer wins the bulk of the awards
(measured by the horizontal distance between the
two demand schedules). 8
Since other parties cannot react, the Treasury
receives only a modestly higher price for its auc-
8. A manipulator could bypass the auction by amassing a controlling position in either when-issued or secondary market trading.
To effect that strategy, purchase orders would have to be spread
across many sellers in an effort to hide the intent to corner from the
general market.
tioned securities, but the major price action awaits
secondary market trading. The cornerer restricts
the supply of the security in the secondary market
(seen as the inward shift in the vertical supply
schedule in the right panel), so that the price that
clears that market is well above the auction price.
From there, the cornerer slowly unwinds that position, expanding market supply to sell at prices
above the ultimate level determined by the final
owners of Treasuries. In effect, the cornerer acts as
a discriminating monopolist, carefully regulating
secondary market sales to earn all the revenue
given by the area under the demand schedule. The
cornerer's cost is given by the unshaded rectangle,
leading to the profit given by the shaded area.
Indeed, the profit from a market squeeze may
come by other means. While the issue remains in
the cornerer's control during secondary trading,
short sellers must borrow the security to make
delivery. That transaction is one side of a repurchase agreement in which the owner of the desirable security—the cornerer—lends it to a short
seller in return for cash at a preferential borrowing
rate. In effect, by creating a demand for the issue,
the cornerer can finance his or her position at a
below-market borrowing rate.
The when-issued market plays two important
roles in cornering strategy. First, early trading allows the market consensus to coalesce quickly and
thus provides a usually accurate forecast of the
auction price. By aiding in the "price discovery"
of the appropriate price on the security to be auctioned, the when-issued market serves in tightening
the spread of bids; thus, the cornerer needs to bid
only slightly higher than that consensus to be
assured awards. Second, a group of thwarted
bidders—those who shorted in the when-issued
market—are forced to the secondary market to
408
Federal Reserve Bulletin • June 1992
6. How a corner works
close their positions. Their surprising presence
makes the demand schedule less price sensitive, as
no substitute exists for the security that they promised to deliver. As a result, as long as they keep
their positions open, short sellers will need to
borrow the desirable security and thus provide the
cornerer favorable financing in the repurchase
market.
The successful cornerer makes use of three elements of the current practice:
• When-issued trading creates a core of reliable
demanders for the auctioned security (those who
sold short).
• The first-price method of allocating awards
reduces demand at the auction and makes that
demand more price sensitive.
• Sealed bids allow a cornerer to place bids only
marginally better than the consensus to win all the
awards.
These characteristics of current procedures promise
profit in successfully cornering a Treasury auction,
although such trades are not without considerable
risk. Even slight shifts in the prevailing level of
interest rates could more than wipe out the profit
from controlling a significant portion of an outstanding issue.
The Potential for
Collusion
One dealer with adequate capital and the willingness to be exposed to substantial risk can possibly
take advantage in the current market. A harder
problem to assess is whether or not an auction's
design may entice a group of dealers to conspire in
an attempt to corner. The theoretical analysis of the
incentives for collusion in auctions proceeds as
follows.
Let us suppose that a few dealers, intent on
extracting profit from those not in the ring, willfully plan together to purchase all that is sold at an
auction. They agree on a price just above the market consensus that is sure to win all the awards. A
sealed-bid auction, however, tempts each of the
conspirators to move just above the agreed-upon
price and to steal awards; as a result, the cartel
likely will not hold. 9 Hence, on the one hand,
incentives in the classic first-price sealed-bid auction are structured so as to make collusion unlikely.
On the other hand, in an ascending-price openoutcry auction, such a conniver among conspirators
has to show his or her hand, making such manipulation less likely. Even if bidding is secret, the
other members of the cartel will know by the price
movement that someone has cheated. The cartel
will hold.
By this theoretical argument, one might surmise
that the current first-price sealed-bid auction protects, at least, against the willful joining of dealers
to exploit the Treasury and other dealers. Unfortunately, a gap exists between models and reality, as
the rule limiting awards to 35 percent of the issue
paradoxically turns incentives back toward collusion. If a conniver plays within the lines of the
35 percent rule, he or she will not win enough
securities at the auction to control the secondary
market. Consequently, tough enforcement of
quantity limits more strongly binds conspirators
together.
9. This outcome also holds for a descending-price open-outcry
auction. The first one to leave the pool stops the auction before the
others can react.
An Analysis of Potential Treasury Auction Techniques
More to the point, theoretical analyses of collusion assume that a small number of colluding parties share information, an assumption that ignores
the multiple arenas in which dealers compete. Dealers will not cooperate in auctions if such cooperation jeopardizes their trading in the secondary market. Given the large number of participants and the
apparent mistrust among dealers, auction format is
unlikely to bring them together.10 Thus, from the
standpoint of public policy, the chief risk seems to
lie in the manipulative actions of a single dealer,
the rogue with capital, which threaten the integrity
of the market.
A CLOSER LOOK AT A POPULAR
PROPOSAL FOR REFORM
The abuses of the auction rules last summer rekindled enthusiasm for a simple alternative, the
second-price sealed-bid auction, to the current discriminatory pricing practice. Proponents argue that
awarding securities at a uniform price rather than at
the bid prices would end cornering attempts by
eliminating the profit potential in market manipulation. And in a way that sounds contradictory, they
argue that total revenue would increase by the
surrender of the ability to discriminate across bids.
The Consequences for
Revenue
The algebra required to calculate an optimal bidding plan in a multiple-unit auction quickly
becomes intractable. No analyst yet has worked
through the strategic implications of a large core of
bidders carving up a block of securities. The logic
of the single-unit case, however, suggests that the
extent of bid shading can be extreme. In a firstprice auction of multiple units, a strategic bidder
does not have to beat the participant with the next
highest valuation to win but must better only the
middle of the pack of bidders.
If one steps away from the explicit modeling of
bidder behavior, the implications for revenue can
10. The existence of interdealer brokers is one sign of the level
of mistrust among dealers. These intermediaries provide anonymity
to dealers in transactions between dealers, who are reluctant to
phone their competition directly and to show which side of the
market they are on.
409
be spelled out in terms of shifts in the demand
schedule for the auctioned security.11 As shown in
diagram 7 (which repeats the middle panel of the
three-figured determination of market prices), part
of the Treasury's total revenue results from its
charging winners the price that they bid, which for
its current practice is measured by the area under
the demand schedule labeled "First price." That
price discrimination, however, discourages some
demand, as investors shade their bids for fear of the
winner's curse. Adopting a second-price system
turns part of that surplus back to the bidders, shifting out the demand schedule to the position labeled
"Second price." Under a first-price scheme, the
Treasury would have to work down the left
demand schedule and award securities at lower
prices to place the total issue (marked by the vertical dashed line). Under the second-price scheme,
one price, depicted by the horizontal line drawn to
intersect the right demand schedule at the issuance
size, exhausts the issue. The consequences for revenue depend on whether or not the loss from the
inability to price discriminate (left triangle) is
greater than the gain from added demand (right
triangle).
Support for the second-price scheme is stronger
than the balancing of these welfare triangles would
suggest. Those analysts working with explicit models of bidder behavior in a Treasury-like format,
rather than with reduced-form demand schedules,
typically find that a second-price scheme does produce higher revenue for the seller. Further, in 1962
Milton Friedman made a persuasive argument that
11. For details, see Henry Goldstein, "The Friedman Proposal
for Auctioning Treasury Bills," Journal of Political Economy,
vol. 70 (August 1962), pp. 386-92.
7. The effect of second-price awards on revenue
410
Federal Reserve Bulletin • June 1992
revenue would increase. 12 Dealers devote considerable energy to the auction only to sell those securities almost immediately to customers—and most
profit from doing so. Part of the resources devoted
to that distribution could be appropriated by the
Treasury if it could directly deal with those customers. A second-price auction, because it is less
penalizing to the aggressive or the uninformed,
may be the best vehicle to attract those people.
The Consequences for
Cornering
As seen previously, the current format reduces
demand at auctions and makes it more sensitive to
price in relation to the demand determined by the
buy-and-hold ownership of the long-time investor.
This reduction is the rational response to the Treasury's discriminating pricing: The investor shows
less of his true consumer surplus to a seller whose
stated intention is to seize it.
Moving to a common-price format permits
demand at the auction to reflect the true nature of
investor preference. With no friction, investors can
bypass the dealer intermediaries and bid directly,
sharing the resulting savings with the Treasury.
Viewed in terms of the three-figured determination
of Treasury prices, second-price awards would
make the auction demand curve identical to the
secondary market demand curve (diagram 8).
Against this backdrop, the cornerer of an auction
would place surprising bids that shift the demand
schedule from Demand to Demand'. The horizontal
distance of that shift represents the cornerer's
12. From correspondence quoted in Goldstein, "The Friedman
Proposal," p. 391.
8. The effect of second-price awards on cornering
awards, or the extent to which secondary market
supply can be restricted. As seen in the right panel
of the figure, however, the investors who are
unwilling to pay the auction price will be unwilling
to pay the secondary market price. Now the cornerer acting as a discriminating monopolist, rather
than maximizing profit, minimizes loss (the shaded
triangle). Clearly, one cannot profit from cornering
a market with invariant demand, because one ultimately must sell the security to those from whom it
was bid away. In this simple world, cornering
would be eliminated by the removal of the potential for profit.
This result, however, requires that the switch in
auction technique completely unify the primary
and secondary markets. Even after the adoption of
common-price awards, presence at auctions may
still be limited to a segment of the investor populace, perhaps to those who are more sensitive to price.
Those who sold short in the when-issued market
want quickly to cover their positions at the auction.
Also, participants at an auction face uncertain outcomes, since they may not be awarded securities if
they have not cast their bids appropriately. Those
particularly averse to this quantity risk may well
delay purchase to secondary trading. Most important, direct bidding requires incurring the fixed
costs of ensuring payment and arranging for the
placement of bids—the prospects for which depend
on the pace of automation and the nature of regulation. As a result, the infrequent purchaser may
remain in the secondary market. In other words,
advocates of this format assume that dealers exist
solely to shade bids because of the Treasury's
discriminatory pricing. If, however, dealers provide
any other service in the distribution of securities,
then a gap remains between the demand schedules
An Analysis of Potential Treasury Auction Techniques
of the auction and the secondary market. A sufficiently large gap represents an opportunity for
manipulation. Indeed, second-price awards might
encourage strategems should differences between
primary and secondary markets remain. A
would-be manipulator could place bids for a substantial fraction of an issue well above the market
consensus, and thus ensure awards, but pay only
that price required to allocate the remaining portion
of securities to his or her unsuspecting competitors.
AN ALTERNATIVE
PROPOSAL
On balance, the switch to single-price awards likely
represents an improvement on current Treasury
practice; however, the Joint Report recommended
the study of a more radical change. Collusive behavior relies on the closed nature of sealed bids—
whether in the current first-price procedure or in
the second-price alternative. A schemer needs only
to beat the market's best guess formed moments
before bidding closes in order to leave his or her
competitors no chance to react.
An open-outcry system lets other market participants react to any surprise. Technologically, pieces
of paper are not needed for the expression of the
intent to purchase Treasury securities. As an alternative, registered dealers could connect by phone
(with appropriately designed security) to a central
computer; those not preregistered could appear at
their local Reserve Bank with sufficient documentation to be included as a serious bidder. The scenario
might unfold as follows. The auction begins as the
Treasury calls out a price and all interested parties
submit their quantity demanded. With quick tabulation, the volume of bids at that price is announced
and, in successive rounds, the price is raised until
the volume demanded is smaller than the size of
the issuance. The next-to-last price called out clears
the auction market because it is the highest price
consistent with selling the entire issue. Everyone
who bid at the top price would be guaranteed
awards at the lower, market-clearing price. Those
who bid at the next-to-last price but who did not
move up into the top group receive the remaining
securities at that lower price. Since bids from that
group would exceed the remaining securities, some
scheme for partial awards would be required.
411
Strategically, a dealer attempting to corner this
auction must show his or her hand to the competition as the Treasury auctioneer raises the price. But
the public exposure of the manipulator's addition
to the volume of bids warns other participants—
particularly those short the when-issued security—
that they must raise their own bids if they want to
receive awards. That opportunity for others to react
should narrow the potential for profit in a corner
attempt. To the extent that the average issuing price
is raised in the attempt, the Treasury garners part of
the profits. In contrast, in a sealed-bid auction, the
bulk of the price action comes at the announcement
of surprising awards, when other dealers realize
that they are short and then react. In a real-time
auction, that reaction occurs during the bidding.
Also, the positive information revealed by the
ascending-price nature of this auction format, on
average, should benefit Treasury revenue.
A real-time auction may pose a daunting technical challenge. The goal of equal access requires
that every effort be made to decentralize the system: Anyone willing to pay the fixed cost of a
properly configured terminal should be allowed to
enter. At the same time, all bidders must be
screened to ensure payment if their bids are successful. If the fixed cost of entry is too large,
participation at the auction will be limited and a
two-tiered distribution of securities and all the
attendant risks may be perpetuated. If access is too
free, the physical demands of directing a large
volume of messages in a narrow span of time may
prove taxing to any computer network. The private
sector provides some precedent, but those efforts
are small relative to the scale of operation required
to sell Treasury securities.
Opening the auction might create new opportunities for large traders to move prices. For example,
the surprising presence of a large trader elevating
demand during the early stages of an auction might
lead to a groundswell of enthusiasm that would
push up the market-clearing price. 13 Similarly, the
sudden dropping out by a large trader at a low price
might dampen spirits enough to lower the marketclearing price. Either action might present the
13. See the description of the "herd effect" provided by Gary L.
Gastineau and Robert A. Jarrow, "Large-Trader Impact and Market
Regulation," Financial Analysts Journal (July/August 1991),
pp. 40-51.
412
Federal Reserve Bulletin • June 1992
potential for profit. Also, as long as the three trading forums in Treasury securities are imperfectly
integrated, the possibility of a market squeeze
remains. At the least, an open-outcry auction does
not abet a squeeze attempt by facilitating the bidding away of securities by surprise, as both types of
sealed-bid auctions do. Thus, the Treasury would
be less likely to be the counterparty from which a
manipulator amassed a controlling position. Further, with easy entry, large traders would be pitted
against each other in their pursuit of trading profits,
as an open-outcry system turns market forces
against market manipulation. As an added benefit,
the technical sophistication required to conduct an
automated open-outcry system could also be made
available for surveillance regarding compliance
with the auction rules.
CONCLUSION
While the academic literature suggests that the
current Treasury procedure has drawbacks, it does
not readily identify the best way to auction government securities. Individual elements of the problem
are addressed, but other considerations do not fit
nicely into the theoretical models. The Treasury is
obliged to provide easy entry into the auctions,
broadening, where possible, the ownership of the
public debt; and it must adhere closely to a
crowded schedule of borrowing. Also, while the
Treasury may not always get top dollar for its
issues, the present auction system may ease the
conduct of monetary policy and ensure a deep
and active secondary market in government
obligations.
The shift to single-price awards may mark an
improvement over the current technique, but it may
not avoid the repetition of recent experience. No
matter how rigidly rules are enforced, the incentive
to manipulate the market remains.
This reading of the literature suggests that the
optimal Treasury auction would have the following
attributes (in order of decreasing importance):
• Second price. If all securities are awarded at
the lowest price of an accepted bid, investors wary
of the winner's curse may enter the auction directly.
Such entrance raises total demand because bidders
no longer feel the need to shade their bids. Also, by
making direct bidding more attractive, individual
dealers will no longer have as much access to
customer business in attempts to swing the market.
• Real time. Auctions involving many participants that are conducted on an open-outcry basis
are less susceptible to corners, which rely on
surprise. In a sealed-bid auction, such surprise
requires only stepping above the market consensus.
That surprise is lost if market participants can react
during the bidding.
• Ascending price. If the auctioneer calls out an
ascending list of prices until the issue is sold, the
surprise of a cornering attempt is further eroded.
Simply, other participants remain in the bidding.
Also, an ascending-price auction produces the
highest expected revenue to the seller.
In this regard, the open outcry of bids is a form of
insurance against threats to the integrity of trading:
An auction in real time makes active manipulation
more difficult. As a side benefit, an open-outcry
auction returns some of the potential profit from
collusion to the Treasury in the form of higher
prices.
There are no guarantees that any system will
prevent manipulation. Any new system, however,
should be flexible enough to permit experimentation with auction design. Planning for an openoutcry system may provide the requisite flexibility.
A transition to a new auction system has potential problems, as any reform is likely to be designed
to entice investors to bid directly. Investors, however, may be hesitant at first to step in, preferring to
observe before acting, especially if bidding has a
substantial fixed cost. In the interim between the
change in format and direct participation by investors, the auction would rely on dealers for their
usual role—buying a large share of issuance—even
though the reforms would ultimately erode their
customer base and lessen their market power. If
dealers left the market before final investors
appeared, experimentation with alternative auction
techniques might prove expensive. However, if
access to the auction were kept as open as possible,
scores of price-sensitive investors in the Treasury
market might step in should auction prices differ
markedly from those in secondary trading. Indeed,
the threat of entry in itself might be sufficient to
lessen the risk of an adverse reaction.
An Analysis of Potential Treasury Auction Techniques
REFERENCES
Bikhchandani, Sushil, and Chi-fu Huang. "Auctions with Resale Markets: An Exploratory
Model of Treasury Bill Markets," Review of
Financial Studies, vol. 2 (1989), pp. 311-39.
Eatwell, John, Murray Milgate, and Peter Newman,
eds. The New Palgrave: A Dictionary of Economics. New York: Macmillan Press, 1987.
Friedman, Milton. "Comment on 'Collusion in the
Auction Market for Treasury Bills,'" Journal of
Political Economy, vol. 72 (October 1964),
pp. 513-14.
"How to Sell Government Securities," Wall Street Journal, August 28, 1991.
Gastineau, Gary L., and Robert A Jarrow. "LargeTrader Impact and Market Regulation," Financial Analysts Journal (July/August 1991),
pp. 40-51.
Goldstein, Henry. "The Friedman Proposal for
Auctioning Treasury Bills," Journal of Political
Economy, vol. 70 (August 1962), pp. 386-92.
Graham, Daniel A., and Robert C. Marshall.
"Collusive Bidder Behavior at Single-Object
Second-Price and English Auctions," Journal of
Political Economy, vol. 95 (December 1987),
pp. 1217-39.
Henriques, Diana B. "Treasury's Troubled Auctions," New York Times, September 15, 1991.
McAfee, R. Preston, and John McMillan. "Auctions and Bidding," Journal of Economic Literature, vol. 25 (June 1987), pp. 699-738.
413
Mester, Loretta J. "Going, Going, Gone: Setting
Prices with Auctions," Federal Reserve Bank
of Philadelphia Business Review (March/April
1988), pp. 3-13.
Milgrom, Paul. "Auctions and Bidders: A Primer,"
Journal of Economic Perspectives, vol. 3 (Summer 1989), pp. 3-22.
, and Robert J. Weber. "A Theory of
Auctions and Competitive Bidding," Econometrica, vol. 50 (September 1982), pp. 1089-122.
Robinson, Marc S. "Collusion and the Choice
of Auction," The Rand Journal of Economics,
vol. 16 (Spring 1985), pp. 141^15.
Smith, James L. "Non-Aggressive Bidding Behavior and the 'Winner's Curse,'" Economic Inquiry, vol. 19 (July 1981), pp. 380-88.
Smith, Vernon L. "Bidding Theory and the Treasury Bill Auction: Does Price Discrimination
Increase Bill Prices?" Review of Economics and
Statistics, vol. 48 (May 1966), pp. 1 4 1 ^ 6 .
U.S. Department of the Treasury, U.S. Securities
and Exchange Commission, and Board of Governors of the Federal Reserve System, Joint Report
on the Government Securities Market. Washington, D.C.: Government Printing Office, 1992.
Vickrey, William. "Counterspeculation, Auctions,
and Competitive Sealed Tenders," Journal of
Finance, vol. 16 (March 1961), pp. 8-37.
Weber, Robert J. "Multiple-Object Auctions," in
Englebrecht-Wiggans, Richard, Martin Shubik,
and Robert M. Stark, eds. Auctions, Bidding, and
Contracting: Uses and Theory. New York: New
York University Press, 1983, pp. 165-91.
•
414
Industrial Production and Capacity Utilization
Released for Publication
April 15
The index of industrial production rose 0.2 percent
in March, after having increased a revised 0.5 percent in February. The increase in March was led by
gains in the production of durable consumer goods
and a pickup in energy output, mainly at utilities.
At 107.2 percent of its 1987 annual average, total
industrial production in March was 2.1 percent
above its year-ago level; but despite the recent
gains, it was still about 1 percent below its level of
last October. For the first quarter as a whole, industrial production declined at an annual rate of 4.1
percent, after having fallen 0.7 percent in the previous quarter. Total industrial capacity utilization
rose 0.1 percentage point in March, to 78.1 percent.
Industrial production indexes
Twelve-month percent change
1987
1988
1989
1990
1991
Twelve-month percent change
1992
1987
1988
1989
1990
1991
1992
Capacity and industrial production
Ratio scale, 1987 production = 100
— Total industry
Ratio scale, 1987 production = 100
— 140
Capacity
— Manufacturing
Capacity
120
100
^^^^^
1
1
1
Production
1
1
1
1
^
— 80
1
1
1
1
1
^
^
Production
1
1
1
V
—
1
Percent of capacity
All series are seasonally adjusted. Latest series, March. Capacity is an index of potential industrial production.
^
Percent of capacity
415
Industrial production and capacity utilization
Industrial production, index, 1987=100'
Percentage change
Category
1991
1992
1991
Dec.
r
r
Jan.
Feb/
Mar.P
Dec.
107.2
Total
107.4
106.4
106.9
19922
2
1
Jan.
Feb.
-.6
-.9
.5
-.6
-.8
.6
r
r
Mar.P
Mar. 1991
to
Mar. 1992
.2
2.1
Previous estimate
107.4
106.6
107.2
Major market groups
Products, total
Consumer goods
Business equipment
Construction supplies
Materials
108.4
109.1
121.4
95.0
105.8
107.4
108.0
119.8
95.3
104.9
107.9
108.5
121.2
95.3
105.2
108.3
109.0
121.4
95.1
105.4
-.5
-.9
-.3
-1.0
-.8
-1.0
-1.0
-1.2
.3
-.8
.5
.5
1.2
.0
.3
.3
.5
.2
-.2
.2
1.7
4.1
1.0
1.2
2.7
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
108.1
107.1
109.5
98.8
107.9
107.2
105.8
109.0
97.5
106.8
107.8
106.7
109.1
98.1
106.6
107.9
106.8
109.3
97.9
108.8
-.4
-.7
-.1
-.8
-2.8
-.8
-1.2
-.4
-1.4
-1.0
.5
.9
.1
.7
-.3
.1
.1
.2
-.2
2.1
2.6
1.7
3.7
-3.5
2.3
MEMO
Capacity utilization, percent
1991
Average,
1967-90
Low,
1982
1992
High,
1988-89
Mar.
Dec.
Jan.
Feb.'
Mar.P
Capacity,
percentage
change,
Mar. 1991
to
Mar. 1992
Total
82.1
71.8
85.0
78.4
78.7
77.8
78.0
78.1
2.5
Manufacturing
Advanced processing
Primary processing .
Mining
Utilities
81.4
81.0
82.3
87.4
86.7
70.0
71.4
66.8
80.6
76.2
85.1
83.6
89.0
87.2
92.3
77.2
76.8
79.9
89.0
83.0
77.7
76.6
80.2
86.2
83.4
76.9
75.7
79.7
85.0
82.6
77.1
76.0
79.8
85.6
82.3
77.0
75.9
79.7
85.4
84.0
2.7
3.1
1.9
.6
1.1
1. Seasonally adjusted.
2. Change from preceding month to month indicated.
When analyzed by market group, the data show
that the production of durable consumer goods
increased 0.5 percent in March because of gains in
the production of trucks, appliances, and furniture;
output of autos declined last month. The output of
nondurable consumer goods rose 0.4 percent in
March, boosted by a sharp increase in energy for
residential use. The production of business equipment excluding motor vehicles increased 0.2 percent as most major categories posted gains; however, even sifter allowing for the effects of a strike
at a major producer of construction-related machinery, the output in this sector has remained weak and
has changed little, on balance, over the past year.
The production of construction supplies edged
lower last month and, on average, the output in the
first quarter was a bit below that of the previous
quarter. Materials output rose 0.2 percent because
production of energy materials, which had declined
r Revised,
p Preliminary.
during the relatively mild winter, rebounded in
March. The output of nonenergy materials, which
fell noticeably in December and January, rebounded partially in February but was unchanged
in March; the recent weakness in both durables and
nondurables has been widespread.
When analyzed by industry group, the data show
that manufacturing output edged up 0.1 percent in
March but that capacity utilization at factories
declined 0.1 percentage point, to 77.0 percent. In
March, the operating rates for both primary and
advanced processing edged down. Within primary
processing, capacity utilization for chemicals, for
stone, clay, and glass products, and for fabricated
metals declined, but most other primary-processing
industries posted gains. Within advanced processing, the factory operating rate increased noticeably
for furniture and fixtures but declined for instruments; most other major advanced-processing
416
Federal Reserve Bulletin • June 1992
industries posted small and nearly offsetting
changes. On the whole, the utilization rates both
for primary and advanced processing have weakened since last fall, with large declines for transportation equipment, paper and products, rubber and
plastic products, primary chemicals, and miscellaneous manufactures.
The production at mines decreased 0.2 percent in
March. The output at utilities jumped 2.1 percent,
after having been curtailed over the winter months
because of the unseasonably warm weather.
417
Statements to the Congress
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve System,
before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, April 17, 1992
I am pleased to appear today to discuss, as you
requested, recent stock market developments in
Japan. I think that it is useful to review these
developments from a longer time perspective
than that of just the past few weeks. I also will
address the implications for Japanese banks and
for the overall performance and prospects for the
Japanese and world economies.
Japanese stock prices nearly tripled from the
end of 1985 to the end of 1989. The reasons for
this increase are not completely clear. It seems to
have been fueled, in part, by the low interest
rates associated with an expansionary monetary
policy adopted by the Bank of Japan from February 1985 to December 1987. This initiative was
directed at countering the contractionary effects
on the Japanese economy of the doubling of the
yen's exchange value against the dollar. Land
prices in Japan also soared during this period,
reinforcing the rise in stock prices because Japanese corporations are major land owners. Although other world stock markets were also
generally booming in the early part of this period,
the Japanese market far outpaced the markets of
other industrial economies.
Profits of Japanese corporations increased
very strongly—9Vi percent per year in 1987 and
1988—but stock prices rose at a much faster rate.
As a result, conventional price-earnings ratios
hit a peak of more than 70 in August 1987, which
was about three to five times the PE ratios in
other major markets. Even after adjusting for
certain accounting differences (primarily with
respect to depreciation allowances) and the prevalence of cross-share holdings among Japanese
corporations, Japanese PE ratios were still twice
the ratios of other major equity markets.
The reaction of the Japanese stock market to
the October 1987 contraction in the U.S. market
was particularly mild. And the Japanese market
resumed its rapid rise in early 1988, regained its
August 1987 highs by mid-1988, and continued to
soar until year-end 1989.
Just as the reasons for the sharp increase in
stock prices are not entirely clear, so too the
factors behind the decline that began in 1990
cannot be enumerated with full confidence. Indeed, the decline may be at least partly a correction from an inexplicable and unsustainable high
level. Under such conditions any random event
can engender a contraction.
Nonetheless, monetary policy has been an
important influence. Policy tightening in Japan
began in earnest in mid-1989, largely with the
avowed intent of curbing the land and stock price
bubble before it was perceived to take on uncontrollable dimensions. By late 1990, nominal
short-term interest rates had risen 350 basis
points. The growth rate of M2+CDs (the Bank of
Japan's targeted aggregate) plummeted in response. Real long-term interest rates rose more
than 200 basis points from late 1989 until late
1990.
Stock market prices declined 40 percent in
1990, dropping particularly sharply after the Iraqi
invasion of Kuwait. After having rallied briskly
along with other major stock markets in the wake
of the allied victory in the Persian Gulf war, the
Japanese market seesawed through most of 1991.
Late in the year, however, amid growing anxieties over the slowing of economic activity in
Japan, a rapidly worsening profit outlook, and
recurring revelations of financial market improprieties, stock prices began a renewed plunge.
From the end of October 1991 through April 16,
1992, the market fell a further 30 percent. This
has occurred despite a significant easing of monetary policy.
This latest decline in Japanese stock prices
brought conventional Japanese PE ratios down
418
Federal Reserve Bulletin • June 1992
to the neighborhood of 30 or so, somewhat above
that for the S&P 500 in the U.S. market. Doubtless, adjusted PE ratios for Japanese stocks are
lower than this, and other valuation measures
such as price-to-book-value or price-to-freecash-flow are less elevated.
The Japanese stock market decline does not
appear to have had important spillover effects on
U.S. financial markets to date. Our stock market
has been quite strong over the past year or so. In
general, movements in price changes among major stock markets are only weakly correlated,
because they respond primarily to developments
in the home country, which have the greatest
impact on profits. One exception to this pattern
would be the consequence of major shocks, such
as the 1990 oil price shock, which affect all the
world's economies.
The decline in the Japanese stock market has
not had any great effect on the yen-dollar exchange rate, either. That exchange rate has
moved over a range of ¥ 123 to ¥ 142 per dollar
over the past year and a half, a much narrower
percentage range than, for example, the Deutsche mark-dollar rate. Since the December 1989
peak of the Japanese stock market, the net
appreciation of the yen against the dollar has
been 8 percent.
The rapidly rising prices of Japanese land and
equities, together with the huge appreciation of
the yen from 1985 to 1987, made foreign land,
equity, and bonds demonstrably attractive to
Japanese investors. Yen-denominated debt rose
sharply against the increasingly valuable collateral, freeing funds to move abroad. During the
1986-88 period, Japan was a huge exporter of
long-term capital, exceeding $130 billion in each
of those three years, on a net basis, an amount
far in excess of Japan's current account surpluses, which averaged more than $80 billion per
year.
Despite increased gross demands for foreign
currencies, the yen appreciated steeply against
the dollar. Along with rising concern over market
access abroad, Japanese manufacturers were led
to undertake large direct foreign investments to
expand manufacturing capacity in their foreign
markets. Direct foreign investment outflows
peaked at more than $45 billion in 1990. Similarly, rising yen-denominated asset values led to
large-scale portfolio diversification abroad.
Long-term foreign portfolio investments by Japanese residents, including purchases of U.S.
government and corporate bonds, averaged
nearly $90 billion per year during the 1986-88
period, net of portfolio investments by foreign
nationals in Japanese securities. The excess of
long-term capital outflows over the current account surplus was balanced primarily by shortterm private capital inflows, notably borrowing
abroad by Japanese banks, which averaged more
than $55 billion per year during the 1986-88
period.
This pattern of capital flows began to change
during 1990 and was sharply reversed in 1991 as
Japanese stock and land values peaked and
eroded. Japan experienced net long-term capital
inflows in 1991, the first year for such an occurence since 1980. A still-positive but reduced
rate of net foreign direct investment by Japan
was more than offset by net portfolio and other
long-term capital inflows. Japanese portfolio
holders continued to purchase American and
other foreign securities, though at rates far below
the rates of 1986-89. These purchases of U.S.
and other foreign securities were outweighed,
however, by very large purchases by foreigners
of Japanese securities. Stock purchases were
particularly strong. The sharp decline in Japanese stock prices made equities seem more reasonably priced, and the decline in prices had
apparently left foreign investors' portfolios underweighted in yen assets.
The long-term capital inflow and current account surplus in 1991 were offset by large private
short-term capital outflows. Japanese banks,
whose capital positions were eroding with the
stock market decline, moved to shrink their
balance sheets by reducing both foreign assets
and foreign liabilities; liabilities were reduced $93
billion more than assets. The 1991 pattern of
capital flows appears to have continued into the
early months of 1992.
Some concerns have been expressed in the
financial press about the implication, for markets
outside Japan, of this reversal from Japan's being
a long-term capital exporter to its being a longterm capital importer. These concerns, while
understandable, seem to me exaggerated. As
long as Japan continues to run current account
Statements
surpluses, it must, by definition, be an overall
capital exporter. To the extent that Japan's
global current account surplus is widening, the
net increase in Japan's capital exports contributes to the supply of world savings, thereby in
effect reducing pressure on interest rates in international credit markets.
To be sure, shifts in the composition of Japan's
desired capital exports may cause some price
adjustments in various asset markets. But these
adjustments need not be terribly disruptive. Japanese investors hold, for example, only a small
fraction—2 percent to 3 percent—of outstanding
marketable U.S. Treasury securities. Their holdings of U.S. equities are of even smaller magnitudes. Although U.S. data indicate that Japanese
investors sold, net, about $20 billion in U.S.
Treasuries in 1990, interest rates on these instruments nonetheless declined, as other investors,
including U.S. investors, were willing to buy
them. In 1991, Japanese investors were, in fact,
small net purchasers of U.S. bonds and stocks.
The big change in 1991 was in net purchases by
foreigners of Japanese securities, particularly
stocks, which were very large.
IMPLICATIONS FOR JAPANESE
BANKS
Reflecting the decline in the Japanese stock market and the adoption of the Bank for International Settlements capital standards, Japanese
banks have restrained their asset growth in both
domestic and international markets in recent
years. Whereas the domestic assets of Japanese
banks increased at double-digit rates in the years
1985 through 1989, they increased only 8 percent
in 1990 and were flat in 1991. The pattern is even
more dramatic in terms of international activity.
The international assets of Japanese banks almost quadrupled from 1984 to 1989, with their
share of international assets of all banks rising
from less than one-fourth to almost 40 percent. In
1990 and 1991, however, the international assets
of Japanese banks declined, on balance, and their
international share fell back to less than onethird.
The restraint in the overall asset growth of
Japanese banks has been caused, in part, by their
desire to exceed the minimum risk-weighted cap-
to the Congress
419
ital ratios in the Basle Accord on capital adequacy. In the past, asset growth at Japanese
banks appeared to have been oriented toward
accumulation of market share, in part fueled by a
relatively low cost of capital as well as by additions to capital resulting from large and growing
unrealized profits on their equity portfolios. In
the past two years, these sources' support of the
growth objective has disappeared; it appears that
Japanese banks are focusing much more carefully on the profitability of their core banking
business. This shift in business priorities is likely
to be a healthy development in the long run.
Japanese banks differ from banks in some
other countries, including the United States,
because they have been permitted to hold substantial equity positions in nonfinancial corporations. The appreciation of the value of these
equity holdings buttressed the capital of Japanese banks. Investors in Japanese bank stocks,
recognizing the value of these appreciating nontraditional bank assets, were willing to pay large
premiums to acquire shares of Japanese banks.
These premiums were above what might be expected based on the earnings of the banks from
their banking business alone. To that extent,
owning shares in banks took on some of the
characteristics of owning shares in a mutual
fund.
Bank regulators, in developing the Basle Accord, were well aware that the quality of Japanese bank capital resulting from unrealized gains
in equity securities was inferior to capital derived
from other sources. Because such capital was
correctly judged to be subject to market risk and
because banks would in all probability be subject
to a tax liability for capital gains if forced to
realize such gains to bolster capital, the Basle
Accord permitted only 45 percent of these unrealized gains to be counted as capital—and, moreover, not as equity capital but only as tier 2 (that
is, supplemental) capital.
The effect of the decline in the Tokyo stock
market on the risk-weighted capital ratios of
Japanese banks varies from bank to bank, depending on the nature and overall importance of
equity holdings at individual banks. In this context, the critical question is not the ability of
Japanese banks to meet the Basle Accord's minimum requirement of 8 percent for the sum of tier
420
Federal Reserve Bulletin • June 1992
1 and tier 2 capital but rather how much additional capital will banks need to raise and at what
cost. Or, alternatively, how much will banks be
induced to scale back their assets? A significant
constraint on the asset growth of Japanese banks
could be serious for nonbank borrowers in Japan
because of the heavy reliance of companies in
Japan on bank credit and because capital market
and other nonbank sources of funds are not as
well developed in Japan as in the United States.
However, Japanese banks may choose to protect their traditional domestic business base and
instead choose to pare back their loans to some
of their newer customers, including those in
overseas markets. Spreads and margins on banking transactions in these markets might in the
short run increase somewhat as a major competitor scales back, just as such spreads narrowed
when the Japanese banks expanded their activities. Over the intermediate run, however, the
flexibility to lend by other banks and the increased supply of credit from nonbank sources
are likely to be sufficient to ensure that credit
market conditions on a worldwide basis will not
be substantially weakened by a scaling back by
Japanese banks.
MACROECONOMIC EFFECTS ON THE
JAPANESE AND WORLD ECONOMIES
In addition to their possible effects on credit
availability in Japan, lower prices of Japanese
stocks could affect Japan's real economy through
their negative impact on the wealth of households, with attendant effects on private consumption expenditure and, in turn, real GNP. One
important limiting factor, however, is that stocks
constitute less than 10 percent of total household
financial wealth in Japan. In addition, estimates
from econometric studies suggest that in Japan
the marginal propensity to consume out of wealth
is relatively small.
There are additional reasons to suspect that
actual impacts on consumption from declining
equity prices could be even smaller in the present
episode. Evidence from saving rates suggests
that the expansion of household wealth during
the recent stock market boom was not fully
incorporated into household spending plans. In
fact, the household saving rate had been on a
downward trend in the 1980s. During the eight
quarters since the Tokyo stock market turned
down in early 1990, there has been little evidence
of a shift in household expenditure to replenish
the stock of savings; the household saving rate
has remained well below its average of the previous decade. Although consumption has decelerated with the recent slowdown in overall real
growth, it has not been conspicuously weak.
Possible negative effects on consumption from
lower equity prices could be compounded by
additional declines in prices of housing and land,
which are mutually affected by developments in
the stock market. Residential and commercial
real estate prices have turned down in major
metropolitan areas in the latest surveys and have
stopped rising as quickly in other parts of the
country.
Negative effects of the stock market decline on
investment in Japan could be more significant.
The net asset positions of nonfinancial firms are
affected directly by share-price declines. Lower
stock prices also have substantially elevated the
cost of issuing new equity, as well as increased
the cost of equity-linked methods of raising
funds. In coming months Japanese firms will
need to refinance a significant amount of previously issued convertible and warrant bonds. Of
course, Japanese investors may be able to borrow through other avenues—including a revitalized domestic corporate bond market—but it is
likely to be at substantially higher costs than in
the past, which would tend to reduce Japanese
international competitiveness. Japanese authorities have interpreted the recent deceleration of
bank credit as arising from weak demand for
funds. It is possible, however, in view of the
deterioration of the asset portfolios of some
Japanese banks' and the negative impact of the
stock market decline on banks' capital that tightening of credit could restrain investment.
Spillovers to business confidence also represent a potential risk to private investment from
the stock market decline. Measures of business
confidence have deteriorated steadily in recent
months, and investment has been a weak sector
of final demand. The latest surveys of business
intentions indicate that private investment may
decline in fiscal year 1992 as much as 5 percent,
Statements
to the Congress
421
which would be the first decline since 1975 and a
sharp reversal of rapid increases in private investment spending in recent years.
The recent slowdown in the Japanese economy
has been reflected in reduced import demand and
a widening external surplus. Reflecting the incorporation of some negative effects from stock
market price declines that have occurred already, most forecasts project growth of domestic
demand and GNP in Japan to be weak until the
second half of this year, with some risk of further
slowing if stock prices continue to slide substantially further. Accordingly, growth in Japanese
demand for U.S. exports is not likely to be a
particular source of strength for the U.S. economy in the near term. Nevertheless, even though
Japan is the second largest export market for the
United States, the separate contribution of the
stock market decline to weaker Japanese demand
for U.S. exports is not expected to be large.
In summary, the decline in the Japanese stock
market is a significant development, especially
for Japan. It appears primarily to be a correction
of the bubble in asset prices that was causing
distortions to the Japanese economy with some
spillover effects on the rest of the world. The
Federal Reserve will continue to monitor closely
the developments in Japanese financial markets
and their implications for our economy and markets. In my judgment the impact on the United
States from Japanese stock price changes to date
is likely to be limited.
•
Statement by David W. Mullins, Jr., Vice Chairman, Board of Governors of the Federal Reserve
System, before the Subcommittee on Domestic
Monetary Policy of the Committee on Banking,
Finance and Urban Affairs, U.S. House of Representatives, April 28, 1992
first Congress charged the Department of the
Treasury with the responsibility of borrowing in
the name of the new republic. In 1913, the
drafters of the Federal Reserve Act assigned the
Federal Reserve District Banks to serve as fiscal
agents for the Treasury and facilitated the nationwide distribution of the debt. Later, in 1934, the
Congress created the Securities and Exchange
Commission to enforce securities laws that were
targeted to counter the considerable problems at
hand in private financial markets by nurturing
fairness and openness. Although the Board
works closely with the various agencies and has
general oversight responsibilities for the activities of the District Banks, it has little direct
regulatory authority for the U.S. government
securities market.
We think that this arrangement is wise and
gives the Board of Governors a unique perspective by allowing us to examine important issues
regarding this market from an economywide perspective. Freed of the specific responsibilities of
managing the debt, distributing securities, or
policing trading activity, we can evaluate the
consequences of proposed reform against broad
public policy standards.
Our overall evaluation of both pieces of legislation started from a fundamental question: What
are the problems that need to be addressed? In
the Board of Governors' view, the government
securities market ably performs an important
Thank you for this opportunity to communicate
the Board of Governors' views on proposed
legislation concerning the government securities
market. The Joint Report on the Government
Securities Market suggested comprehensive administrative changes, some already made and
others proposed, that will significantly increase
openness in this market and sharply limit the
possibility of a replay of recent events. 1 The
Board supports these changes, which are targeted to the problems and to the opportunities
identified to foster fair and efficient markets. In
the Board's view, this progress makes it inadvisable to enact either H.R.4450 or H.R.3927.
This decision was made after having carefully
weighed the costs and benefits of further change,
as we see them at this time, in accordance with
our legislated role in the oversight of financial
markets. In 1789, President Washington and the
1. U.S. Department of the Treasury, U.S. Securities and
Exchange Commission, and Board of Governors of the
Federal Reserve System. Joint Report on the Government
Securities Market (Government Printing Office, 1992).
422
Federal Reserve Bulletin • June 1992
allocative role in the U.S. economy by matching
a voracious borrower, the federal government,
with investors across the nation and around the
world. The U.S. government has been able to tap
this market with record issuance time and time
again. This market is deep and liquid, routinely
permitting participants to execute trades of huge
size with remarkable rapidity at paper-thin bidask spreads. Consequently, the market serves as
an important source of liquidity for individuals
and financial institutions.
The trading community commits large sums of
risk capital to provide these services in the
pursuit of profits. But there are economy wide
benefits as well. The government securities market has an impressive ability to digest news,
translating the daily barrage of economic releases
and political commentary efficiently into prices.
In doing so, it provides real-time quotes on a host
of issues that serve as benchmarks for the pricing
of nongovernment securities. That responsiveness also serves monetary policy well because it
gives us a reliable gauge of financial markets in
general and a liquid and efficient venue to conduct open market operations.
However, we sit here today as the result of
identifiable problems with the market. The problems that have come to light so far—evidence of
lying in the issuance of government securities
and episodes of price distortions that are perhaps
related to attempts to manipulate the market—
clearly signaled the need to act. And we have
acted, all of us. The Joint Report provides a
blueprint for the thoughtful and comprehensive
renovation of this market. Taken together, these
changes open the government securities market,
significantly altering the way that business is
conducted. They enhance our surveillance in the
primary and secondary markets, establish more
systematic lines of communication among the
agencies, promise to broaden direct participation
at auctions, and, by warning that there will be
active Treasury supply management to shave
outsized profit owing to price anomalies, put
market participants on notice that there is no
tolerance for manipulative acts. Frankly, a failure of the primary market to keep pace with the
technical advance in the secondary market likely
contributed to the problems that were identified.
We still rely on slips of paper and ballot boxes
around the country to place government debt,
while secondary market traders sit before banks
of computers, able to transact in size on a word
or a few keystrokes. We must automate and we
must do it quickly.
Moreover, as endorsed in the Joint Report,
alternative auction designs may help to channel
the force of competition in our favor. One such
alternative—a single-price and open auction—
holds the promise of enhancing participation in
the auction and exposing attempts to manipulate
the market, thereby narrowing the possibility of
manipulation and producing lower Treasury borrowing costs.
H.R.4450
With this common ground, it is clear that the
Board shares many of the objectives of
H.R.4450. This proposed legislation calls for the
broad reconstruction of the auction process, instructing the Board of Governors to direct automation in a way that increases public access, to
conduct experiments with single-price awards, to
attempt additional experiments with a tap issuance technique, and to produce a study of the
results for the Congress within two years. Also,
H.R.4450 would require that any advisory committee established to advise the Board or the
Secretary of the Treasury or any Federal Reserve Bank on the marketing or sale of Treasury
securities include as large a number of members
as is feasible and hold open meetings.
We agree that automation of and experimentation with selling techniques potentially could
serve the Treasury and the U.S. taxpayer well.
However, we do not believe that H.R.4450 is the
means to effect that change. Following the Joint
Report blueprint, the Treasury along with academic experts, market participants, and others is
in the process of a rigorous examination of
auction reform to design a new system and frame
an experiment that will test it fairly. Indeed, we
are giving the Treasury all the aid we can and are
jointly sponsoring a conference in early June to
bring together interested parties to examine these
issues in detail.
I believe that the Joint Report motivated the
careful examination of innovative techniques for
Statements
selling securities and combating manipulation.
The Board would prefer to see this process run
its course. Legislating experiments now would
be premature, perhaps forcing the Treasury to
implement procedures that were inefficient or
that created undesirable incentives, to the detriment of overall funding costs. If, at a later date,
the Congress deemed that the Treasury's experiment was poorly designed or did not give adequate consideration to alternative auction techniques, then the matter could be revisited. We
feel it is unwise to attempt to legislate the path
that progress should take. The Board fully intends to take an active consulting role in this
process and would welcome an invitation to
return here to keep the committee fully informed.
The same argument applies with greater force
to the provision of H.R.4450 requiring an experiment with tap issuance. Any means of broadening participation in the auction should be the
subject of rigorous analysis and consideration. It
is not clear that legislated mandates are either
necessary or useful. For example, in a tap issuance, the Treasury would have to set prices.
Moving away from letting markets set prices in
an auction presents new problems in establishing
and changing the prices at which the securities
would be sold to manage the Treasury's cash
flow. Because these issues are complex and
mistakes in even a modest experiment are potentially very costly, the focus should be on doing
what is best for taxpayers rather than meeting
rigid legislative mandates and deadlines.
Although we appreciate that H.R.4450 would
grant the Board significant responsibilities in
reforming the auction, we are concerned that this
would confuse and potentially disrupt the longstanding relationship among the Treasury, the
Board, and the Federal Reserve Banks. The
proposed legislation would appear to require that
the Board take authority long granted to the
Treasury, namely acting as principal with respect
to the structure of Treasury auctions. Moreover,
the degree to which the Board's role under
H.R.4450 would supplant Treasury direction in
the specified areas, let alone in peripheral areas,
is unclear. Such conflicting authorities could
serve to slow the development of an automated
auction system and could create other difficulties
in the fiscal agency relationship. Monetary policy
to the Congress
423
is difficult enough without the further entanglement of substantive decisions about debt issuance.
The Board also is concerned about H.R.4450's
requirement that it prescribe regulations concerning internal controls for participants in the
automated system. It is essential that firms maintain an effective system of internal controls. But
once legislation proposed in the Joint Report is
enacted that prohibits misleading statements to
issuers of government securities, the authority of
the self-regulatory organizations in this area will
be adequate, rendering superfluous the enacthient of additional legislation to mandate internal
controls.
Lastly with regard to H.R.4450, the requirement for public advisory committees on debt
issuance directly concerns the Treasury, and we
defer to its judgment on this matter. I would
caution, however, that mandating access may
erode the usefulness of these meetings. As a
result, to maintain their market knowledge the
Treasury may need to turn more to informal
contacts that are beyond the scope of the legislation to maintain their market knowledge. Thus,
the public could know less than under present
arrangements.
H.R.3927
In the past nine months we have made much
progress in designing and implementing fundamental improvements in the government securities market. Unfortunately, I see little of that
progress reflected in H.R.3927. This bill would
allow the erection of elaborate reporting requirements, under various rationales, that have the
potential to impose on the government securities
market the enforcement structure of the equity
market with little regard to appropriateness.
The government securities market provides for
the wholesale and large-scale exchange of homogeneous securities among sophisticated market
professionals. It is not subject to the types of
insider-trading abuses that roil equity markets
with a distressing regularity. The abuses in the
government securities market that have cropped
up so far as we are aware—attempts at price
manipulation and violation of auction rules—
424
Federal Reserve Bulletin • June 1992
have simple, targeted remedies appropriate to
their relatively infrequent occurrence. Markets
differ, and regulation should reflect that difference. With each basis point in borrowing cost
adding more than $200 million a year to the
deficit, the stakes are too high to legislate for the
sake of mere consistency among securities laws.
In the Board of Governors' view, no compelling cost-benefit case has been made to impose
broad-based reporting requirements in the government securities market, either directly or
through audit trails or so-called transparency
requirements. Without question, increased reporting would deter manipulation and facilitate
the investigation of abuses. But does that high
level of vigilance warrant the substantial cost
ultimately borne by taxpayers? Are not the proposals in the Joint Report equally efficacious and
far less costly in dealing with these problems?
The Board has not yet been shown the evidence of widespread malfunctions in the government securities market that would give reason to
impose the substantial costs that likely would
follow from the passage of H.R.3927. The reporting burden, falling on all traders, would boost the
cost of every trade. True, the direct costs of
additional recordkeeping might be kept manageable by the adroit application of the law by
regulators. But it might not. H.R.3927 turns that
decision over to the regulators once nominal
hurdles are passed.
We fear that an indirect cost of reporting
requirements may loom even larger in the long
run. Rather than risk divulging their finances and
trading strategies, participants might reduce their
presence or withdraw entirely from the domestic
market, leaving the Treasury with fewer willing
customers for its mounting debt. Even backup
authority, because it might be difficult to resist
implementing, sends the same chilling message
about the U.S. market to participants choosing a
trading arena in the global marketplace. Moreover, in view of the extensive nature of the other
changes proposed in this report, one might question the capacity of this market to absorb, at an
acceptable cost, this additional change. Market
participants will not bear that cost: Ultimately, it
must be passed on to the U.S. taxpayer.
My colleagues and I feel that further fundamental changes in this vital market are too important
to be made without explicit congressional approval. Although some supported backup authority in the Joint Report, the agencies generally
agreed that extensive reporting requirements need
not be implemented at this time. If it is the case
that the other substantial changes already in motion fail to increase openness in the government
securities market, allowing manipulative practices
to lurk in the shadows, then the Congress should
make the explicit decision to impose reporting
requirements. Since H.R.3927 potentially could
allow regulators to reach into every aspect of
trading behavior, it is a wiser course of action to
return here for enabling legislation in the future
should such authority appear necessary.
CONCLUSION
Substantial progress has been made in exploring,
identifying, and implementing approaches to improve Treasury auctions. Board staff members
have been in almost continual contact with their
counterparts at the Treasury, and we are confident that good-faith efforts on auction reform will
continue. We believe that this process should be
allowed to run its course. If the progress is
deemed insufficient, the Congress can then return to legislative approaches to reform. In our
view, H.R.4450 is not necessary, is possibly
detrimental, and risks entwining debt management authority and monetary policy.
Similarly, it is unwise to confuse the equity
and government securities markets. The latter
has served the national interest by efficiently
placing the federal debt with few evident problems. If we let the force of competition work to
our advantage, the government securities market
can continue to provide substantial benefits.
H.R.3927 risks imposing large costs in the search
for elusive and, given the information that we
now have, perhaps limited benefits.
•
Statements
Statement by Peter D. Sternlight, Executive Vice
President, Federal Reserve Bank of New York,
before the Subcommittee on Domestic Monetary
Policy of the Committee on Banking, Finance
and Urban Affairs, U.S. House of Representatives, April 28, 1992
It is a pleasure for me to respond to your committee's invitation to testify today on matters
related to the U.S. government securities market. As an official of the Federal Reserve Bank of
New York, which is significantly involved in
processing Treasury auctions, I thought it would
be useful to focus my statement on the current
status of automating Treasury auctions. I would
also be happy to give my views, from my vantage
point at the Federal Reserve Bank of New York,
on other matters the committee may wish to
raise.
Automation of Treasury auctions is a highpriority matter for the Treasury and the Federal
Reserve. Planning work in this regard was under
way before the events of last August, but our
timetable has been expedited in the wake of the
events of the past year—notably the revelation
of certain abusive practices by individuals at
Salomon Brothers pertaining to Treasury auction rules.
The work on auction automation may be
thought of as a several-staged approach. The first
phase, which has been developed by the Federal
Reserve Bank of Kansas City, encompasses a
system that provides for the electronic submission of bids placed throughout the country,
mainly by noncompetitive
bidders, using the
Federal Reserve's standard "Fedline" terminal.
Fedline is the standard terminal that is currently
in use to connect the Federal Reserve Banks with
depository institutions for a variety of operational purposes. Although this system can facilitate the submission of electronic bids, it is not
designed to handle the last-minute rush of large
competitive bids that, in fact, make up the bulk
of the dollar volume of auction bidding. Moreover, Fedline does not have an automated
backup system. Designed mainly for noncompetitive bidders, many of which bid through relatively small financial institutions, the system is
expected to serve its intended purpose very well.
In the aggregate, of course, noncompetitive bids,
to the Congress
425
though individually small, can add up to sizable
amounts and can be a significant factor in auctions. Moreover, some large institutions in the
New York Federal Reserve District have expressed interest in using this new electronic
system to submit noncompetitive bids on behalf
of customers. The first phase is expected to be
available countrywide by about the middle of this
year.
When this first phase is completed, more than
9,000 depository institutions that have Fedline
terminals connected to their Reserve Banks will
be able to enhance their terminals and submit
bids electronically. Other bidders, including nonbank securities brokers and dealers, will also be
able to install Fedline terminals and submit bids
electronically. This will be a significant step in
broadening public access to the auctions across
the nation. But I should note again that the first
phase is limited because it could not handle—and
was never designed to handle—the last-minute
flurry of large competitive bids; nor does it have
a reliable automated backup system.
Phase 2 of the automation process comprises a
system designed specifically to meet the more
demanding needs, including backup capabilities,
of large competitive bidders. The system is being
designed by the Federal Reserve Bank of New
York, in accordance with Treasury specifications, and the project is on track for completion
by about the end of this year. This system will be
able to handle the last-minute rush of competitive
bids with a very high degree of reliability and
backup recoverability in the event of adverse
circumstances. The system will also assist Treasury and Federal Reserve staff in monitoring
auctions and enforcing the Treasury's rules.
Bidders under this system will also make use
of the Fedline terminal but with enhanced software that upgrades it to a so-called "Fast Fedline
terminal." Software development for the Phase 2
system, which consists of analysis, design, and
coding, is scheduled for completion before midyear. Currently, system analysis is complete;
software design is close to completion; and coding is nearly two-thirds done.
Because of the critical importance of this application, we have set aside six full months for
testing after the completion of the system's software development. First, we will thoroughly test
426
Federal Reserve Bulletin • June 1992
the system ourselves for four months to make
sure that it works properly, paying particular
attention to backup contingency capabilities. I
cannot stress too much the overriding importance
of a reliable backup procedure; a hitch in the
smooth and timely conduct of an auction could
have disturbing repercussions in the Treasury
market and, more generally, in financial markets.
Overlapping the last month of our testing will
be testing of the system's communications and
security components with the large competitive
bidders, who will be familiarizing themselves
with the system at the same time. Then there will
be a month or so of volume and stress tests—
posing different kinds of challenging situations to
make sure the system can stand up to all the
operational contingencies that may be at all likely
to confront it. Finally, we will spend about a
month in parallel operations—that is, bidders will
continue to submit tenders manually but will also
submit them electronically—to check the system
in a production environment. If all goes well, and
I note again that we are on track so far, we
expect to be able to go "live" by about the end of
this year—as indicated in the schedule in the
Joint Report to the Congress earlier this year.
Although Phase 2 will essentially automate the
auction process at the Reserve Bank level, there
are also plans for carrying the process further. A
third phase will automate the Treasury's procedures for combining the input from the various
Reserve Banks around the country, and a fourth
phase will comprise the automated issuance of
securities to successful bidders. These latter
phases should be completed in 1993 or 1994.
COMMENT ON PROPOSED
LEGISLATION
With respect to proposed legislation regarding
the conduct of Treasury auctions (H.R.4450), I
would like to make a few comments from the
standpoint of the Federal Reserve Bank of New
York. A major provision of this bill is to require
the Federal Reserve to implement an automated
Treasury auction by the end of this year.
We welcome the support and encouragement
of your committee, and of others in the Congress, in this important effort. Speedy implementation of automation is a high-priority matter for
both the Federal Reserve and the Treasury, but I
should note that an even more critical consideration is that the job be done right. A crash
program to meet a legislated deadline would
serve us ill if the new procedures were implemented before we were totally comfortable that
they could do the job. We have a special concern
about the ability to recover very rapidly from any
computer processing interruption. As I said earlier, we are now on track to complete what we
call Phase 2 of the auction automation effort by
about the end of this year—that's the phase that
automates the transmission and processing of
large competitive tenders, in effect the " c o r e " of
the auction. But if we find in the course of quality
testing that another month or two is needed to
iron out potential bugs, I believe that time should
be taken to do the job properly. I'm confident
that the Treasury shares this view.
I should add that for many years the Federal
Reserve has acted as the Treasury's agent in
matters of debt management. Responsibility for
determining the method, amount, and timing of
Treasury debt issuance appropriately rests with
the Treasury. We are therefore not at all comfortable with the role of being directly required
by law to do certain things with respect to
auctions when we serve only as Treasury's fiscal
agent. If auction changes are to be mandated
with a time deadline—which is questionable in
itself—it would seem more appropriate to us that
the Congress direct its requirements to the Treasury, which can in turn instruct us accordingly.
A similar comment would apply to several
matters covered in the proposed legislation,
including not only auction automation but also
the eligibility of bidders, experimentation with a
single-price auction, and employment of continuous sale procedure for marketing short-term
securities.
We also welcome the committee's support for
more open access to Treasury auctions. Indeed,
that has been an important part of the motivation
for developing an automated system. The move
toward more open access is also thoroughly
consistent with several changes in auction rules
that the Treasury has made in recent months.
This move includes permitting registered brokers
and dealers (as well as primary dealers and
depository institutions) to submit bids on behalf
Statements
of customers and to bid without having to post a
deposit, provided they have an autocharge agreement with a bank. Another recent change in
Treasury rules consistent with broadening auction access was the increase in the maximum
noncompetitive award on coupon-bearing issues.
With all due respect, however, it does seem to
me that specific measures undertaken to implement more open access are better left to Treasury discretion—to be sure, with appropriate
congressional oversight—rather than seeking to
have specific aspects of open access mandated.
The Federal Reserve, as well as the Treasury,
is deeply concerned that auction participants
maintain the highest level of integrity in their
bidding activities. With active cooperation by the
Federal Reserve, the Treasury has developed
revised standards for participation that we be-
to the Congress
28
lieve are consistent with a broadening of access
and maintenance of high integrity. We understand and share congressional concern that the
events of last year not impair public confidence
in the auction process. However, we do not
believe that additional legislation is needed to
achieve that result. At a minimum, the measures
adopted in recent months should be given time to
work, and the automation plans now being devised and tested should be allowed to come to
fruition on their expedited but prudent schedule.
If, at some point, new regulatory authority with
respect to the conduct of Treasury finance is
deemed necessary, we believe such authority is
more appropriately placed with the Treasury, to
which the Congress has already given substantial
regulatory responsibility for the U.S. government securities market.
•
428
Announcements
INTERIM REGULATION TO IMPLEMENT
FOREIGN BANK SUPERVISION
ENHANCEMENT ACT OF 1991
The Federal Reserve Board issued on April 8,
1992, an interim regulation to carry out provisions
of the Foreign Bank Supervision Enhancement Act
of 1991.
Although the interim regulation is effective
immediately, the Board requested public comment
over a sixty-day period on its provisions. The comment period ends June 15, after which the Board
will review the interim regulation based on all
comments received and issue a final regulation.
The act stems from a recommendation sent to the
Congress last year during the Board's investigation
of the Bank of Credit and Commerce International.
The Board concluded that additional legislation
was needed to strengthen federal regulation and
supervision of foreign bank operations in this
country.
As of December 1991, there were 304 foreign
banks with operations in the United States, and
they had aggregate banking assets of $866 billion.
A key mandatory standard in the law requires
that a foreign bank applying to operate in the
United States must be subject to comprehensive
supervision or regulation by its home country
authorities on a consolidated basis. It also must
supply any information to the Board that is needed
to assess the application adequately. The act also
contains discretionary standards to be considered
by the Board in deciding on applications, and these
are set forth in the regulation.
In making a determination on consolidated home
country supervision, the interim regulation stipulates that the Board will assess, among other factors, the extent to which the home country supervisor does the following:
• Ensures that the foreign bank has adequate
procedures for monitoring and controlling its
worldwide operations
• Receives information on the condition of the
foreign bank outside its home country, whether
through examination, audit reports, or otherwise
• Obtains information on the dealings and the
relationships between the foreign bank and its
affiliates
• Obtains financial reports that permit analysis
of the condition of the foreign bank on a consolidated basis
• Evaluates prudential standards, such as capital
adequacy, on a worldwide basis.
The interim regulation also details the procedures to be used in the filing of applications by
foreign banks to operate in this country through a
branch, agency, representative office, or commercial lending company.
In filing an application, a foreign bank is required to describe applicable secrecy laws, if any,
in its home country that would restrict the provision of information to the Board. If the restrictions
are significant enough to impede the monitoring of
the foreign bank's operations, the Board could deny
the application.
The interim regulation also addresses the termination of offices of a foreign bank, hearing procedures, examination of offices and affiliates of foreign banks, the limitation on loans to one borrower,
and activities of state branches and agencies.
REVISIONS TO THE STAFF COMMENTARY
ON REGULATION B
The Federal Reserve Board issued on April 7,
1992, revisions to its staff commentary on Regulation B (Equal Credit Opportunity).
The revisions clarify the relationship between
Regulation B and Regulation C, which implements
the Home Mortgage Disclosure Act (HMDA). The
clarifications address data collection on loan applications received by creditors through brokers or
other persons.
429
The revisions also state that use of the uniform
residential loan application form dated May 1991
and prepared by the Federal Home Loan Mortgage
Corporation and the Federal National Mortgage
Association does not violate Regulation B. Creditors subject to HMDA may use the form as issued.
INTERIM RULE TO AMEND REGULATION Y
The Federal Reserve Board issued on April 8,
1992, an interim rule to carry out provisions of the
Federal Deposit Insurance Corporation Improvement Act of 1991 that affect bank holding companies and foreign banking organizations with operations in the United States.
The interim rule amends Regulation Y (Bank
Holding Companies and Change in Bank Control)
and is effective immediately. The interim rule will
be reviewed by the Board at a later date after
the receipt of public comment. Public comment is
requested by June 15, 1992.
The interim rule specifies additional factors that
the Federal Reserve must consider in acting on
applications submitted under the Bank Holding
Company Act to acquire a bank.
PROPOSED ACTIONS
The Federal Reserve Board published for public
comment on April 3,1992, a proposed new Regulation DD to implement the Truth in Savings Act. In
general, the act and the proposed regulation require
depository institutions to provide consumers with
more information about their deposit accounts,
including savings and checking accounts and
certificates of deposit. Comment is requested by
June 10, 1992.
The Board on April 10, 1992, requested public
comment on proposed modifications to its riskbased capital guidelines affecting the treatment of
multifamily housing loans and certain collateralized transactions. The Board should receive comments by May 15, 1992.
The Board is also requesting public comment on
whether U.S. companies operating in the French
government debt market have the same competitive
opportunities as French companies in that market.
Comments must be received by June 25, 1992.
PUBLICATION OF REVISED LISTS
OF MARGINABLE OTC STOCKS AND
OF FOREIGN MARGIN STOCKS
The Federal Reserve Board published on April 24,
1992, a revised List of Marginable OTC Stocks
(OTC List) for over-the-counter (OTC) stocks that
are subject to its margin regulations. Also published was the List of Foreign Margin Stocks (Foreign List) for foreign equity securities that are
subject to Regulation T (Credit by Brokers and
Dealers). The lists are effective May 11, 1992, and
supersede the previous lists that were effective
February 10, 1992.
The Foreign List indicates those foreign equity
securities that are eligible for margin treatment at
broker-dealers. There were six additions to the
Foreign List, which now contains 300 securities.
The changes that have been made to the revised
OTC List, which now contains 2,976 OTC stocks,
are as follows:
• Two hundred fourteen stocks have been included for the first time, 199 under National Market System (NMS) designation.
• Twenty-four stocks previously on the list have
been removed for substantially failing to meet the
requirements for continued listing.
• Thirty-nine stocks have been removed for
reasons such as listing on a national securities
exchange or involvement in an acquisition.
The OTC List is published by the Board for the
information of lenders and the general public. It
includes all OTC securities designated by the Board
pursuant to its established criteria as well as all
OTC stocks designated as NMS securities for
which transaction reports are required to be made
pursuant to an effective transaction reporting plan.
Additional OTC securities may be designated as
NMS securities in the interim between the Board's
quarterly publications and will be immediately
marginable. The next revised list is scheduled for
publication in August 1992.
Besides NMS-designated securities, the Board
will continue to monitor the market activity of
other OTC stocks to determine which stocks meet
the requirements for inclusion and continued inclusion on the OTC List.
430
Federal Reserve Bulletin • June 1992
CHANGES IN BOARD STAFF
The Board of Governors has announced the resignation of Ricki Rhodarmar Tigert, Associate General Counsel for International Banking, effective
April 17, 1992.
The Board also announced on May 11, 1992, the
promotion of Kathleen M. O'Day from Assistant
General Counsel to the position of Associate General Counsel for International Banking.
431
Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON FEBRUARY 4-5,
1992
1. Domestic Policy Directive
The information reviewed at this meeting suggested that economic activity remained sluggish.
Spending for housing and exports was rising, but
retail sales had been weak, and nonresidential construction continued to hold down overall investment expenditures. Nonfarm payroll employment
had changed little in December, and industrial production had edged lower in November and December as business firms acted to hold down inventories in the face of slack final demand. Wage and
price increases continued to trend downward.
Total nonfarm payroll employment was about
unchanged in December after a large decline in
November. Manufacturing jobs fell in December
for a fourth consecutive month, with nearly all of
the losses occurring in durable goods industries.
Employment in retail and wholesale trade contracted again, while employment in construction,
which had been depressed by unseasonably severe
weather in November, registered a small rise. New
hires in December were concentrated in health
services and local governments. The civilian unemployment rate rose to 7.1 percent in December, its
high for the year.
Industrial production declined slightly in December and was unchanged on balance since July; the
limited information available suggested that production might have contracted appreciably further
in January. Over the November-December period,
output was held down in part by reduced production of motor vehicles; in addition, unseasonably
warm weather led to lower production of electricity
and natural gas. Additional restraints on output
included the depressing effects of a strike at a
major supplier of industrial equipment and persisting declines in the production of defense and space
equipment. By contrast, the output of other types of
business equipment had strengthened, particularly
in the office and computing component, and the
production of construction supplies and a variety of
nondurable goods had increased. Total industrial
capacity utilization declined further in December
but remained somewhat above its low of last
March.
Consumer spending had been weak on balance
in recent months amid continuing indications of
depressed consumer confidence and essentially no
growth in disposable income. Nominal retail sales
were estimated to have declined appreciably in
November and December, and for the fourth quarter decreases in sales were widespread among general merchandise, apparel, and furniture and appliance stores. Against a background of improved
consumer attitudes toward homebuying and the
strongest quarterly pace of new home sales since
the spring of 1990, single-family housing starts
rose in December from an upward-revised November level. With high vacancy rates persisting for
multifamily units, starts of such units remained
near their May 1991 low.
Business fixed investment appeared to have
fallen in the fourth quarter as a small rise in equipment spending was offset by further steep reductions in nonresidential construction. After little
change in the third quarter, shipments of nondefense capital goods picked up in the fourth quarter,
principally because of a surge in outlays for computers. Recent data on orders suggested little
growth in business spending for equipment over
the near term. Office and other commercial construction activity weakened substantially further in
November. The persistently low occupancy rates
for commercial structures, and the continuing
downtrend in construction contracts and appraisal
values of office properties, suggested that nonresidential construction activity would remain
depressed for some time.
432
Federal Reserve Bulletin • June 1992
Business inventories rose noticeably over the
months of September through November after substantial liquidation earlier in the year. At the retail
level, inventories continued to build, and inventoryto-sales ratios rose for most types of retailers,
although the pace of accumulation appeared to
have slowed in November. Wholesale inventories
expanded sharply in October and November; for
most types of distributors, inventory-to-sales ratios
had moved up in recent months but had remained
well below their highs of a year ago. By contrast,
manufacturing stocks in the aggregate continued to
decline, despite slowing shipments that led to
buildups in stocks of finished goods in some industries. The ratio of stocks to sales in manufacturing
remained on a downtrend that began in late 1990.
The nominal U.S. merchandise trade deficit narrowed considerably in November. For the OctoberNovember period, a sizable rise in exports that was
only partly offset by an increase in imports brought
a substantial improvement in the trade balance
from the third-quarter rate. The strength in exports,
which may have been associated in part with a
bunching of shipments, was concentrated in aircraft, machinery, consumer goods, and agricultural
products. Among imports, most of the rise was in
consumer goods. The available data on economic
activity in the major foreign industrial countries
suggested that relatively weak growth had continued into the fourth quarter. In most of these countries, with output moving closer to or further below
potential, inflationary pressures appeared to have
eased somewhat further.
Producer prices of finished goods declined in
December; prices of food and energy moved lower,
while prices of other finished goods rose at about
the reduced pace of earlier months in the year. At
the consumer level, prices of nonfood, non-energy
items increased in December at the moderate rate
evident since the first quarter of 1991 and well
below the pace for 1990. Average hourly earnings
rose more rapidly in December than in prior
months; however, for the year as a whole, this
earnings measure increased at a considerably
slower pace than in 1990.
At its meeting on December 17, 1991, the Committee adopted a directive that called for initially
maintaining the existing degree of pressure on
reserve positions but that included a marked bias
toward easing during the intermeeting period.
Accordingly, the directive indicated that in the
context of the Committee's long-run objectives for
price stability and sustainable economic growth,
and giving careful consideration to economic,
financial, and monetary developments, slightly
greater reserve restraint might be acceptable or
somewhat lesser reserve restraint would be acceptable in the intermeeting period. The reserve conditions contemplated under this directive were
expected to be consistent with growth of M2 and
M3 at annual rates of around 3 percent and 1 Vi percent respectively over the period from November
through March.
Shortly after the meeting, with incoming information continuing to point to a very sluggish economy, receding inflationary pressures, and slow
growth in the broader monetary aggregates, open
market operations were directed toward a substantial easing of conditions in reserve markets. This
step was taken in conjunction with a reduction in
the discount rate from 4 l /i to 3 l /i percent that was
approved by the Board of Governors effective
December 20. Two technical reductions were made
to expected levels of adjustment plus seasonal borrowing during the intermeeting period to reflect the
downward drift in seasonal borrowing in early winter. Adjustment plus seasonal borrowing averaged
a little above expected levels over most of the
intermeeting interval, although very large adjustment borrowing occurred on the settlement day of
one reserve maintenance period as a result of a
reserve shortfall. At the beginning of the intermeeting period, the federal funds rate averaged around
4Vi percent; after the easing of reserve conditions,
the funds rate dipped to a little below 4lA percent
through the first week of the new year and then
dropped further to around 4 percent as relatively
mild year-end pressures abated.
In response to the easing in reserve markets,
other short-term interest rates declined about the
same amount as the federal funds rate, while
longer-term rates fell somewhat less. Rates on
intermediate- and long-term securities continued to
decline through the early part of 1992 as incoming
data seemed to indicate further economic weakness. However, these rates began to firm again by
mid-January; over the latter part of the intermeeting period, concerns mounted with regard to current and prospective supplies of federal debt offerings, especially in the context of proposals for
Record of Policy Actions of the Federal Open Market Committee
fiscal stimulus, and market participants reacted to
evidence that tended to suggest an improved economic outlook and consequently a reduced prospect of further monetary easing. For the intermeeting period as a whole, interest rates on
intermediate-term Treasury issues were up somewhat, while rates on long-term Treasury and private instruments registered mixed changes. Following the 1 percentage point drop in the discount rate,
the prime rate was reduced by the same amount,
to 6V2 percent. Broad stock price indexes rose
substantially.
In foreign exchange markets, the trade-weighted
value of the dollar in terms of the other G-10
currencies rose slightly on balance over the intermeeting period. The dollar declined early in the
period, particularly against the German mark, in
response to the easing of monetary policy in the
United States and the nearly concurrent rise in
official German lending rates. In January, however,
the dollar rebounded sharply amid market speculation that interest rates in the United States might
not decline further and that interest rates in Germany might have peaked. On balance, the dollar
weakened appreciably against the Japanese yen
over the intermeeting period in response to concerns about trade imbalances between the two
countries and to official intervention during the
period in support of the yen.
After accelerating somewhat in the fourth quarter from a very weak performance earlier, growth
of M2 and M3 appeared to have slowed in January,
partly reflecting temporary distortions in demand
deposits and money market funds around year-end.
The slower growth also seemed to reflect the attraction of relatively high bond yields and persistently
rising prices in the stock market at a time when
many banking institutions were aggressively reducing offering rates on deposits. For the year 1991,
the expansion of both M2 and M3 was estimated to
have been at rates a little above the lower ends of
the Committee's ranges, while growth of total
domestic nonfinancial debt appeared to have been
marginally above the lower end of its monitoring
range.
The staff projection prepared for this meeting
pointed to a recovery in economic activity. In the
near term, a small overhang of inventories and
depressed confidence would tend to limit overall
increases in spending despite indications of a sub-
433
stantial pickup in residential construction, notably
of single-family homes. Subsequently, however,
the cumulative effects of earlier declines in interest
rates would be expected to lead to a moderate
pickup in growth, with the risks to that trajectory
for the economy being viewed as about in balance.
Stronger consumer spending, a rise in business
equipment investment, and a swing from liquidation to accumulation of inventories were projected
to provide most of the impetus for faster growth.
The retarding effects of depressed nonresidential
construction activity and of the ongoing restructuring of household and business balance sheets were
expected to lessen gradually as the expansion progressed. The potential nature and size of any stimulative fiscal package remained highly uncertain,
and the staff projection did not incorporate major
new fiscal initiatives. The substantial though diminishing slack expected in labor and product markets
in coming quarters was projected to induce further
declines in the underlying rate of inflation.
In their discussion of the economic situation and
outlook, Committee members continued to view
some strengthening in aggregate demand and overall business activity as the most likely prospect
during the months ahead, with the expansion settling into a pattern of moderate growth by the
second half of the year. The available information
suggested that the sluggish performance of the
economy was continuing in early 1992, though
there were indications, still very tentative and
largely anecdotal, of some improvement. Nonetheless, the decline in interest rates over the second
half of 1991 accompanied by the appreciable
progress achieved by many financial institutions,
business firms, and households in improving their
balance sheets appeared to have established a basis
for a pickup in final demand. The timing and
strength of an upturn remained subject to substantial uncertainties, and the need for further policy
stimulus to foster a satisfactory economic expansion could not be ruled out. The uncertainties arose
in part from the largely unpredictable course of
fiscal policy, the still depressed state of business
and consumer confidence, the strength and effects
of continuing efforts to shore up balance sheets,
and the extent to which economic growth might
slow abroad. With regard to the outlook for inflation, the available data and anecdotal information
about recent increases in costs and prices reflected
434
Federal Reserve Bulletin • June 1992
quite promising developments, and the members
continued to anticipate appreciable progress toward
a lower core rate of inflation.
In keeping with the practice at meetings when
the Committee establishes its long-run ranges for
growth of the money and debt aggregates, the
Committee members and Federal Reserve Bank
presidents not currently serving as members had
prepared projections of economic activity, the rate
of unemployment, and inflation for the year 1992.
Measured from the fourth quarter of 1991 to the
fourth quarter of 1992, the forecasts for growth of
real GDP had a central tendency of \3A to 2Vi percent. Projections of the civilian rate of unemployment in the fourth quarter of 1992 were concentrated in a range of 63/4 to 7 percent. These forecasts
pointed to rates of resource utilization that seemed
consistent with appreciable progress toward price
stability. Projections of the increase in the CPI
from the fourth quarter of 1991 to the fourth quarter of 1992 were centered in a range of 3 to
3V2 percent; this range compared with a realized
increase in the CPI of 3 percent in 1991, but the
result for 1991 had been heavily influenced by the
sharp decline in oil prices, so the members' forecasts represented a significant decrease in the
underlying rate of inflation. Forecasts of growth of
nominal GDP had a central tendency of AV2 to
53/4 percent for 1992.
The members acknowledged that there were substantial risks of an outcome outside the central
tendency of their forecasts for economic activity.
Views differed with regard to the most likely direction of any deviation, but many of the members
saw those risks as being in better balance than
previously. Among the uncertainties in the outlook
was the extent to which financial intermediaries
would continue to restrict their extensions of credit
to less than prime borrowers. In this connection, a
number of members reported on anecdotal indications that banking institutions in various parts of
the country appeared to have become somewhat
more willing lenders, even though overall survey
results and many banker comments did not indicate
any easing in credit standards. A second source of
uncertainty related to the continuing efforts of business firms and households to strengthen their balance sheets and in the process to divert some of
their corporate cash flows or disposable personal
incomes from spending to reducing debt and
improving equity positions. These efforts together
with lower market interest rates already appeared
to have induced significant progress toward reducing debt exposures and debt servicing costs, but the
financial restructuring process was still under way
and the extent to which it would continue to inhibit
spending remained unclear. A further source of
uncertainty related to the ongoing and widespread
adjustments in corporate business structures, including downsizings, that were aimed at improving
the competitive efficiency of business firms. While
these restructuring activities were serving to
strengthen the long-run competitive position of the
economy, they tended for the present to inhibit
overall spending, both directly and indirectly
through the adverse effects of widely publicized
job cutbacks on consumer sentiment.
Many of the members observed that fiscal policy
developments were adding to the uncertainties in
the economic outlook. At the moment, the potential
outcome of fiscal initiatives by the Administration
and the Congress was unknown. In the view of at
least some members, a limited package of shortterm fiscal stimulus measures implemented relatively early this year could have a favorable effect
on business activity. On the other hand, adoption of
fiscal measures involving substantial stimulus,
which would further impede the prospects for longterm budgetary balance, would be likely to have
strongly adverse repercussions on financial markets
and perhaps on business and consumer confidence.
Indeed, concerns about the outlook for fiscal policy
might well have been an important factor behind
the rise in long-term bond yields this year. It also
was noted that uncertainty about the exact provisions of the fiscal program that might eventually
be adopted was causing some businesses to defer
investment decisions.
In their review of business conditions in different
parts of the country, members again reported on
mixed patterns of activity in recent months, and
they described overall conditions in the different
regions as ranging from slightly weaker to slightly
stronger. Although an expected upturn in general
business activity had not materialized thus far,
many members sensed some improvement in business attitudes. Notwithstanding the persistence of
gloomy consumer sentiment, contacts among retailers indicated that many had experienced somewhat
better sales in recent weeks than they had antici-
Record of Policy Actions of the Federal Open Market Committee
pated earlier, though reports from some parts of the
country pointed to significant exceptions. Members
commented that the pickup in sales of singlefamily homes together with reduced interest burdens stemming from home mortgage refinancings
would tend to stimulate consumer spending in the
quarters ahead. Over the near term, production
activity was likely to be inhibited to some degree
by the moderate buildup that had occurred late in
1991 in wholesale and retail inventories. As the
year progressed, however, a pickup in consumer
spending probably would encourage some increase
in inventory investment. Likewise, cautious business attitudes along with excess capacity in several
key industries and the ongoing efforts to improve
balance sheets would limit the growth in business
spending for plant and equipment for some period
of time, probably until an upturn in final demand
was well under way. The prospects for commercial
construction activity remained severely constrained
by high vacancy rates in many parts of the country.
On the foreign side, the outlook for relatively sluggish economic growth in several key industrial
nations implied more limited growth in U.S.
exports; in addition, if sentiment favoring more
protectionism were to gather added strength in the
context of a weak domestic economy, new trade
restrictions might be imposed that would have
adverse effects.
With regard to the prospects for inflation, members observed that core inflation was continuing
to recede, and in the context of their outlook
for relatively limited pressures on production
resources, some commented that they would not
view an inflation result below the central tendency
of the members' projections as a surprising outcome. Developments having favorable implications
for inflation included an extended period of subdued monetary growth, highly competitive conditions in domestic and international markets for
numerous products, and productivity gains associated with business restructuring activities that were
adding to the usual operating efficiencies achieved
during the early quarters of cyclical upswings. The
members did not rule out the possibility that unanticipated surges in energy or food prices might
temporarily arrest or reverse progress toward price
stability, but they assumed that such prices would
move in line with most other prices in the year
ahead.
435
In keeping with the requirements of the Full
Employment and Balanced Growth Act of 1978
(the Humphrey-Hawkins Act), the Committee at
this meeting reviewed the ranges for growth of the
monetary and debt aggregates in 1992 that it had
established on a tentative basis in July 1991. The
tentative ranges included expansion of 2 l /i to
6V2 percent for M2 and 1 to 5 percent for M3,
measured from the fourth quarter of 1991 to the
fourth quarter of 1992. The monitoring range for
growth of total domestic nonfinancial debt had
been set provisionally at 4V2 to 8V2 percent for
1992. All of these ranges were unchanged from
those for 1991 that the Committee had set in February and reaffirmed in July of last year.
In the Committee's discussion, a majority of the
members indicated a preference for affirming the
ranges for 1992 that had been established on a
tentative basis in July. While those ranges were
acceptable to all the members, several expressed a
preference for lowering them.
In formulating the Committee's objectives for
1992, members stressed that policy needed to promote sustainable expansion in economic activity
while consolidating and extending gains against
inflation. Both objectives were attainable, especially in light of the degree of slack in the economy. However, the translation of these objectives
into specific money growth ranges was complicated by questions about the relation of the monetary aggregates to spending. Since 1989, the level
of M2 had fallen increasingly short of levels that
past historical relationships with nominal GDP and
market interest rates would have indicated. Insofar
as could be judged at this point, retention of a 2xh
to 6V2 percent range for M2 should provide adequate leeway and operational flexibility to accommodate a satisfactory economic performance.
Demand for M2 balances relative to income would
continue to be damped if, as appeared likely, banks
and thrifts were to reduce further their offering
rates on deposits in lagged response to earlier
declines in market rates. The reductions in offering
rates could be pronounced if banking institutions
maintained their cautious lending policies and
many prime borrowers continued to channel a
larger-than-usual share of their financing needs
toward longer-term market sources of funds and
away from depository institutions. Under those circumstances, velocity could well rise appreciably
436
Federal Reserve Bulletin • June 1992
and relatively modest M2 growth would not necessarily be inconsistent with a satisfactory economic
expansion. On the other hand, the continuing
improvement in the balance sheets and capital positions of depository institutions might prompt them
as a group to become more willing lenders and thus
to bid more aggressively for deposits to fund additional lending. In this case faster growth of M2,
perhaps toward the upper end of the tentative range,
might be desirable. On balance, the members
believed that adoption of the tentative M2 range for
1992 should allow sufficient room for the likely
range of developments in the intermediation process. Nonetheless, the substantial uncertainties surrounding the outlook for M2 suggested that the
Committee would have to approach monetary
developments with a great deal of flexibility over
the year ahead.
An unchanged target range for M3 also was seen
as likely to provide adequate room for a desirable
rate of growth in this aggregate in the context of
accommodating the Committee's broad policy
objectives. The growth of M3 probably would continue to be affected to a greater extent than that of
M2 by the diversion of credit demands to sources
outside depository institutions and by the ongoing
contraction of the thrift industry in conjunction
with the activities of the Resolution Trust Corporation. Accordingly, a lower range for M3 than for
M2 appeared to remain appropriate. Retention of
an unchanged monitoring range for growth in nonfinancial debt also seemed warranted for 1992,
even though the expansion in such debt was likely
to accelerate somewhat from a very sluggish pace
in 1991, mainly as a result of more rapid growth
in the federal debt. Nonfederal debt also might
increase a little faster this year, but the pickup was
likely to be limited by the still cautious attitudes of
households and businesses toward new debt. Thus,
the 1991 range for nonfinancial debt should comfortably encompass an expansion of credit to support stronger spending in 1992.
Members who preferred a lower range for M2
believed that a reduction was desirable at this time
to underscore the Committee's commitment to its
long-run objective of price stability. While the
unchanged range supported by the majority might
provide the flexibility needed for a desirable antiinflationary policy in the year ahead, a lower range
would be more consistent with the Committee's
ultimate objective of price level stability. However,
in the view of other members a reduction at this
time could be interpreted as an indication that the
Committee might not be willing to supply enough
liquidity to foster an appreciable strengthening in
the economy in 1992, especially if a fairly rapid
increase in M2 were needed to compensate for
relatively slow money growth in 1991. No member
advocated higher monetary growth ranges, but a
number suggested that the emergence of more normal patterns of monetary velocity in association
with an economic performance in line with the
central tendency of the members' projections might
appropriately result in M2 growth in the upper half
of the Committee's range.
Concerns about the implications of slow money
growth in 1991 and the possibility of more normal
velocity patterns in 1992 prompted some members
to suggest a modification of the current procedure
for constructing yearly monetary growth ranges.
The modification would involve linking the ranges
for the current year to those for the previous year
rather than to the actual outcomes for that year. The
new approach would place monetary targeting in a
multi-year context with the objective of constraining money growth to a desired range over a longer
horizon. Such an approach would have advantages
over current procedures if the relationship between
money growth and spending could be predicted
with confidence. In the course of the Committee's
discussion, however, a number of members referred to questions that had arisen about that relationship in recent years as thrift institutions were
closed and credit flows increasingly bypassed
depository institutions. A satisfactory performance
of the economy in 1992 might well be accompanied by a rise in velocity, although there was considerable uncertainty about such an outcome.
Should velocity in fact rise, the acceleration of the
broader aggregates implied by this alternative
approach and the associated easing of reserve conditions and short-term interest rates might not be
consistent with the Committee's objectives. Given
the uncertainties about velocity, a broad array of
indicators, in addition to money, would need to
continue to be assessed in determining the appropriate stance of the Committee in providing
reserves. Members concluded that the proposal
should be studied further and reconsidered later in
light of changing circumstances.
Record of Policy Actions of the Federal Open Market Committee
At the conclusion of the Committee's discussion,
all of the members indicated that they favored or
could accept the ranges for 1992 that the Committee had established on a tentative basis at its meeting in July 1991. In keeping with the Committee's
usual procedures under the Humphrey-Hawkins
Act, the ranges would be reviewed at midyear, or
sooner if deemed necessary, in light of the behavior
of the aggregates and ongoing economic and financial developments. The Committee approved the
following paragraph for inclusion in the domestic
policy directive:
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 this meeting established ranges for growth of M2 and M3 of 2Vi to
6V2 percent and 1 to 5 percent, respectively, measured
from the fourth quarter of 1991 to the fourth quarter of
1992. The monitoring range for growth of total domestic
nonfinancial debt was set at AV2 to 8V2 percent for the
year. With regard to M3, the Committee anticipated that
the ongoing restructuring of depository institutions
would continue to depress the growth of this aggregate
relative to spending and total credit. 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.
Votes for this action: Messrs. Greenspan, Corrigan,
Angell, Hendricks, Hoenig, Kelley, LaWare, Lindsey,
Melzer, Mullins, Ms. Phillips, and Mr. Syron. Votes
against this action: None.
In the Committee's discussion of policy for the
period immediately ahead, all of the members
favored or found acceptable a proposal to maintain
unchanged conditions in reserve markets and to
bias the directive toward possible easing during the
intermeeting period. In support of this policy, members observed that reserve conditions had been
eased substantially over the past several months,
including the easing undertaken in the latter part of
December, and that much of the stimulus from
recent policy actions had yet to be felt in the
economy. The members generally agreed that
enough monetary stimulus probably had been
implemented to foster the desired upturn in economic activity without further policy moves. Nonetheless, the high degree of uncertainty surrounding
the outlook suggested that the Committee needed
437
to remain alert to the possibility of developments
that might require additional easing.
In these circumstances, a majority of the members expressed a preference for a directive that was
biased toward some easing. The lagged effects of
earlier easing actions could prove to be less stimulative than anticipated, in part because of ongoing
balance sheet restructuring activities. The persistence of a weak economy might well have especially severe consequences, and, in the view of
some members, signs of such an outcome would
call for prompt action. However, many members
who supported a bias toward ease also stipulated
that there should not be an unusually strong presumption that any easing would in fact be implemented during the intermeeting period ahead: The
Committee should ease only in response to cumulating evidence that economic activity was not
picking up or that monetary growth was falling
appreciably short of current expectations. A few
members, while not ruling out the possible need for
further easing, preferred not to bias the directive in
either direction. In this view, more emphasis
needed to be put on the inflationary risks of overreacting to the current weakness in the economy,
and a symmetrical directive would require more
persuasive evidence of the need for some easing
before action was taken.
With regard to the outlook for monetary expansion, some members expressed concern about the
relatively sluggish growth of the broader aggregates. While the most recent data suggested some
pickup in M2 growth, the behavior of that aggregate had been erratic in recent months and it was
difficult to discern its underlying trend. According
to a staff analysis prepared for this meeting, the
growth of M2 and M3 could be expected to accelerate somewhat in the period ahead, given current
conditions in reserve markets and some projected
strengthening in the economy. However, expansion
of M2 probably would continue to be restrained by
the aggressive reductions by depository institutions
in their offering rates on deposit components of this
aggregate and the continuation of related shifts of
M2 funds into higher-yielding capital market
instruments. In addition, the expected pickup in the
pace of RTC resolutions over the balance of the
first quarter would tend to moderate the growth of
M2 and especially M3. To the extent that subdued
growth of the broader aggregates were to reflect
438
Federal Reserve Bulletin • June 1992
such special influences, there would not be significant adverse implications for the overall performance of the economy. Moreover, in the view of
some members, the very considerable strength of
narrow measures of money and reserves also
tended to attenuate concerns about the possibly
inadequate expansion of the broader monetary
aggregates; indeed, in at least one view, the rapid
growth of narrow money would become a worrisome development were it to persist. The members
generally concluded, however, that somewhat faster
growth in the broader aggregates would be a welcome development.
At the conclusion of the Committee's discussion,
all of the members indicated that they were prepared to vote for a directive that called for maintaining the existing degree of pressure on reserve
positions. The members also noted their preference
for or acceptance of a directive that included some
bias toward possible easing 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, slightly greater reserve restraint
might be acceptable or slightly lesser reserve
restraint would be acceptable during the intermeeting period. The reserve conditions contemplated at
this meeting were expected to be consistent with
growth of M2 and M3 at annual rates of around
3 percent and \V.i percent respectively over the
three-month period from December through March.
At the conclusion of the meeting the following
domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests
that economic activity has remained sluggish. Total nonfarm payroll employment was little changed in December, and the civilian unemployment rate rose to 7.1 percent. Industrial production fell slightly in November and
December, partly reflecting a sizable drop in motor vehicle assemblies. Consumer spending has been weak on
balance in recent months amid continuing indications of
depressed consumer confidence and essentially no
growth in disposable income. Demand for business
equipment has been uneven, while nonresidential construction has remained in a steep decline. Single-family
housing starts continued to recover in December. The
nominal U.S. merchandise trade deficit narrowed in
November, and for October-November combined the
trade balance improved substantially from the third-
quarter rate. Wage and price increases have continued to
trend downward.
Short-term interest rates have declined appreciably
since the Committee meeting on December 17, while
longer-term rates have registered mixed changes. The
Board of Governors approved a reduction in the discount
rate from 4]/i to 3lA percent on December 20. In foreign
exchange markets, the trade-weighted value of the dollar
in terms of the other G-10 currencies rose slightly on
balance over the intermeeting period.
After accelerating somewhat in the fourth quarter, M2
and M3 slowed in January, partly reflecting temporary
distortions around year-end. For the year 1991, the
expansion of both M2 and M3 is estimated to have been
at rates a little above the lower ends of the Committee's
ranges. Growth of total domestic nonfinancial debt
appears to have been marginally above the lower end of
the Committee's monitoring range for the year.
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 this meeting
established ranges for growth of M2 and M3 of 1 x h to
6V2 percent and 1 to 5 percent, respectively, measured
from the fourth quarter of 1991 to the fourth quarter of
1992. The monitoring range for growth of total domestic
nonfinancial debt was set at 4Vi to 8V2 percent for the
year. With regard to M3, the Committee anticipated that
the ongoing restructuring of depository institutions
would continue to depress the growth of this aggregate
relative to spending and total credit. The behavior of the
monetary aggregates will continue to be evaluated in the
light of progress toward price level stability, movements
in their velocities, and developments in the economy and
financial markets.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. In the context of
the Committee's long-run objectives for price stability
and sustainable economic growth, and giving careful
consideration to economic,financial,and monetary developments, slightly greater reserve restraint might or
slightly lesser reserve restraint would be acceptable in
the intermeeting period. The contemplated reserve conditions are expected to be consistent with growth of M2
and M3 over the period from December through March
at annual rates of about 3 and 1V2 percent, respectively.
Votes for this action: Messrs. Greenspan, Corrigan,
Angell, Hendricks, Hoenig, Kelley, LaWare, Lindsey,
Melzer, Mullins, Ms. Phillips, and Mr. Syron. Votes
against this action: None.
2. AGREEMENT TO "WAREHOUSE"
CURRENCIES
FOREIGN
On February 5, 1991, the Committee had approved
a reduction from $15 billion to $10 billion in the
Record of Policy Actions of the Federal Open Market Committee
amount of eligible foreign currencies that the System was prepared to "warehouse" for the Treasury
and the Exchange Stabilization Fund (ESF). The
purpose of the warehousing facility is to supplement the U.S. dollar resources of the Treasury and
the ESF for financing their purchases of foreign
currencies and related international operations.
At this meeting, the Committee agreed to reduce
the limit further to $5.0 billion, a ceiling that earlier
had been in place for many years. System holdings
of foreign currencies under the warehousing facility had risen to a peak of $9.0 billion in March
439
1990, but by the end of August 1991 they had been
cut back to their current level of $2.0 billion.
Accordingly, the new $5.0 billion ceiling was
expected to provide an adequate cushion of unused
capacity and, thus, to maintain operational flexibility to respond on short notice to unanticipated
developments.
Votes for this action: Messrs. Greenspan, Corrigan,
Angell, Hendricks, Hoenig, Kelley, LaWare, Lindsey,
Melzer, Mullins, Ms. Phillips, and Mr. Syron. Votes
against this action: None.
441
Legal Developments
FINAL RULE—AMENDMENTS
G, T, U, AND X
TO REGULATIONS
The Board of Governors is amending 12 C.F.R. Parts
207, 220, 221, and 224, its Regulations G, T, U, and X
(Securities Credit Transactions; List of Marginable
OTC Stocks; and List of Foreign Margin Stocks). The
List of Marginable OTC Stocks (OTC List) is comprised of stocks traded over-the-counter (OTC) in the
United States that have been determined by the Board
of Governors of the Federal Reserve System to be
subject to the margin requirements under certain Federal Reserve regulations. The List of Foreign Margin
Stocks (Foreign List) represents foreign equity securities that have met the Board's eligibility criteria
under Regulation T. The OTC List and the Foreign
List are published four times a year by the Board. This
document sets forth additions to or deletions from the
previous OTC List and additions to the previous
Foreign List. Both Lists were last published on January 27, 1992 (57 Federal Register 2997) and effective
on February 10, 1992.
Effective May 11, 1992, accordingly, pursuant to the
authority of sections 7 and 23 of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78g and
78w), and in accordance with 12 C.F.R. 207.2(k) and
207.6 (Regulation G), 12 C.F.R. 220.2(u) and 220.17
(Regulation T), and 12 C.F.R. 221.2G) and 221.7 (Regulation U), there is set forth below a listing of deletions
from and additions to the OTC List, and additions to
the Foreign List.
Deletions from the List of Marginable OTC
Stocks
Stocks Removed for Failing Continued Listing
Requirements
Air Methods Corporation: Warrants (expire 08-28-92)
America West Airlines, Inc.: $.25 par common; 7.5%
convertible subordinated debentures
Amith Bancorp Inc.: $2.50 par common
Belmoral Mines Ltd.: No par common
Bonneville Pacific Corporation: $.01 par common
Broadway Financial Corporation: No par common
Colorocs Corporation: $.05 par common
Corporated Capital Resources, Inc.: $.025 par common
Eastco Industrial Safety Corp.: $.01 par common
Environmental Control Group, Inc.: $.10 par common
Hammond Company, The: No par common
Heritage Bancorp, Inc.: $.10 par common
Jacor Communications, Inc.: No par common
Jones Intercable, Inc.: 7.5% convertible subordinated
debentures
Metro-Tel Corporation: $.025 par common
Moniterm Corporation: $.025 par common
NAC RE Corp.: 6!/4% convertible subordinated
debentures
Production Operators Corp.: 9.25% convertible subordinated debentures
Stansbury Holdings Corporation: $.25 par common
Suburban Bankshares, Inc. (Florida): Class A, $.10
par common
Sudbury Inc.: $.01 par common
Sulcus Computer Corporation: Series A, no par redeemable convertible preferred; Class B, Warrants
(expire 06-30-92)
Stocks Removed for Listing on a National
Securities Exchange or Being Involved in an
Acquisition
Air Wis Services, Inc.: $.10 par common
Allwaste, Inc.: $.01 par common
Alta Health Strategies, Inc.: $.01 par common
America First Federally Guaranteed Mortgage Fund 2
Limited Partnership: Exchangeable units of limited
partnership interest
American Insured Mortgage Investors, Series 85 Limited Partnership: Depository units of limited partnership interest
Ameritrust Corporation: $1.66% par common
442
Federal Reserve Bulletin • June 1992
Bindley Western Industries, Inc.: 85/s% convertible
subordinated debentures
Care Group Inc., The: Warrants (expire 04-24-92)
Citizens Utilities Company: Series A, $.25 par common; Series B, $.25 par common
Clarcor Inc.: $1.00 par common
Community Bancorp Inc. (Pennsylvania): $.01 par
common
Compuchem Corp.: $.01 par common
Cytrx Corporation: Class B, Warrants
(expire 11-09-92)
E'Town Corporation: No par common
Electronic Data Technologies: $.01 par common
Envirosafe Services, Inc.: $.01 par common
Fedelity Bancshares, Inc.: $1.00 par common
First City Bancorp, Inc.: No par common
First Illinois Corporation: $1.00 par common
First Interstate of Iowa, Inc.: $1.00 par common
Florida Employers Insurance Co.: $.01 par common
GNW Financial Corporation: $.01 par common
Inter Federal Savings Bank (Tennessee): $1.00 par
common
Long Island City Financial Corporation, The: $.01 par
common
Merry Lane & Investment Company, Inc.: No par
common
North Carolina Natural Gas Corporation: $2.50 par
common
Occupational Urgent Care Health Systems, Inc.: No
par common
Orthopedic Services, Inc.: $.01 par common
Piper Jaffray Incorporated: $1.00 par common
Relm Communications, Inc.: No par common
Sanford Corporation: $.01 par common
Talman Home Federal Savings and Loan Association
of Illinois: $.01 par common
Teradata Corporation: $.01 par common
Valley Capital Corporation: $1.00 par common
Value Merchants, Inc.: $.01 par common
Vencor, Incorporated: $.25 par common
Waterhouse Investor Services, Inc.: $.01 par common
Workman's Bancorp, Inc.: $1.00 par common
Additions to the List of Marginable OTC
Stocks
Abaxis, Inc.: No par common
Abbey Healthcare Group Incorporated: $.001 par
common
Access Health Marketing, Inc.: $.001 par common
Adesa Corporation: No par common
Advacare, Inc.: $.01 par common
Advantage Bancorp, Inc. (Wisconsin): $.01 par common
Advantage Health Corporation: $.01 par common
Affinity Biotech, Inc.: $.01 par common
AGCO Corporation: $.01 par common
Agridyne Technologies, Inc.: $.06 par common
Albank Financial Corporation: $.01 par common
America Online, Inc.: $.01 par common
American Biogenetic Sciences, Inc.: Class A, $.001
par common
American Business Information, Inc.: $.0025 par common
American United Global, Inc.: $.01 par common
Amylin Pharmaceuticals, Inc.: $.001 par common
Aqua Buoy Corporation: $.001 par common
Arch Communications Group, Inc.: $.01 par common
Armstrong Pharmaceuticals, Inc.: $.08 par common
Back Bay Restaurant Group, Inc.: $.01 par common
Belden & Blake Energy Corporation: No par common
Bell Sports Corporation: $.01 par common
Biospecifics Technologies Corporation: $.001 par
common
Biosys: No par common
Bisys Group, Inc., The: $.02 par common
Box Energy Corporation: Class A voting, $1.00 par
common; Class B non-voting, $1.00 par common
BPI Environmental, Inc.: Series A, $.01 par redeemable convertible preferred
Braun's Fashions Corporation: $.01 par common
Buttrey Food and Drug Stores Company: $.01 par
common
California Micro Device Corporation: Warrants
(expire 04-20-97)
Calumet Bancorp, Inc.: $.01 par common
Canstar Sports, Inc.: No par common
Cardiopulmonics, Inc.: $.01 par common
Cavco Industries, Inc.: $.10 par common
CEL-SCI Corporation: $.001 par common; Warrants
(expire 02-06-95)
Cellcor, Inc.: $.01 par common
Legal Developments
Cellular Communications International, Inc.: $.01 par
common
Cellular Communications of Puerto Rico, Inc.: $.01
par common
Cellular Technical Services Company, Inc.: $.001 par
common
Chemtrak Incorporated: $.001 par common
Chipsoft, Inc.: Class A, $.01 par common
Chromcraft Revington, Inc.: $.01 par common
Chronimed, Inc.: $.01 par common
Citfed Bancorp, Inc.: $.01 par common
Coastal Banc Savings Association: $.00017 par common
Collins Industries, Inc.: $.10 par common
Communications & Entertainment Corporation: $.01
par common; Class A, $.05 par common
Comtech Telecommunications Corp.: $.10 par common
Corvas International, Inc.: No par common
Cosmetic Center, Inc., The: Class A, $.01 par common
Craftmade International, Inc.: $.20 par common
Curaflex Health Services, Inc.: $.01 par common
Cytorad Incorporated: Units (expire 01-31-97)
Cytotherapeutics, Inc.: $.01 par common
Damark International, Inc.: Class A, $.01 par
common
Day Runner, Inc.: No par common
Defense Software & Systems, Inc.: $.01 par common
Delta Queen Steamboat Co., The: $.01 par common
Deprenyl USA, Inc.: No par common; Class A, Warrants (expire 04-19-93)
Digital Products Corp.: $.025 par common; Series A,
Warrants (expire 02-07-95); Series B, Warrants
(expire 02-07-97)
DSG International Limited: Ordinary shares, $.01 par
value
Dura Pharmaceuticals, Inc.: No par common
Durr-Fillauer Medical, Inc.: 1% convertible subordinated debentures
Ecoscience Corporation: $.01 par common
Endosonics Corporation: No par common
Engle Homes, Inc.: $.01 par common
Enhanced Imaging Technologies, Inc.: $.001 par common
Ero, Inc.: $.01 par common
Eskimo Pie Corporation: $1.00 par common
Evergreen Resources, Inc.: No par common
F&M Bancorp (Maryland): $5.00 par common
Fahnestock Viner Holdings, Inc.: Class A non-voting,
No par common
Farrel Corporation: $.01 par common
443
First Commerce Corporation: $25.00 par cumulative
preferred
First Financial Corporation (Indiana): $.25 par common
First Financial Corporation of Western Maryland:
$1.00 par common
First Mortgage Corporation: No par common
First Western Corporation: $.01 par common
Fleet Call, Inc.: Class A, $.001 par common
Forstmann & Company, Inc.: $.001 par common
Fourth Financial Corporation: Depository Shares representing Vi6 cumulative convertible preferred A
stock
Frame Technology Corporation: No par common
Fred's, Inc.: No par common
Gates/FA Distributing, Inc.: $.01 par common
Gibraltar Packaging Group, Inc.: $.01 par common
Gilead Sciences, Inc.: $.001 par common
Health O Meter Products, Inc.: $.01 par common
Healthwatch, Inc.: Series A, Warrants
(expire 04-30-93); Series B, Warrants
(expire 04-30-94)
Heart Technology, Inc.: $.01 par common
Herbalife International, Inc.: $.01 par common
Heritage Federal Bancshares, Inc.: $1.00 par common
HF Financial Corporation: $.01 par common
I-Stat Corporation: $.15 par common
ICU Medical, Inc.: $.10 par common
I.S.G. Technologies Inc.: No par common
Industrial Holdings, Inc.: $.01 par common; Class A,
Warrants (expire 01-14-97); Class B, Warrants
(expire 01-14-97)
Infinity Broadcasting Corporation: Class A, $.002 par
common
Innovo Group, Inc.: $.01 par common
Integral Systems, Inc.: $.01 par common
International Jensen Incorporated: $.01 par common
Interneuron Pharmaceuticals, Inc.: Class B, Warrants
(expire 03-08-95)
Kendall Square Research Corporation: $.01 par common
Kinnard Investments, Inc.: $.02 par common
Kopin Corporation: $.01 par common
Liberty Media Corporation: Class A, $1.00 par common; Class B, $1.00 par common; $.01 par convertible preferred
Licon International, Inc.: $.001 par common
Lincare Holdings, Inc.: $.01 par common
Litchfield Financial Corporation: $.01 par common
444
Federal Reserve Bulletin • June 1992
Lone Star Steakhouse & Saloon, Inc.: $.01 par common
Longhorn Steaks, Inc.: No par common
Restor Industries, Inc.: $.01 par common; Warrants
(expire 08-12-94)
Roper Industries, Inc.: $.01 par common
M-Wave, Inc.: $.01 par common
Matrix Pharmaceutical, Inc.: $.01 par common
Maxicare Health Plans, Inc.: $.01 par common
Meadowbrook Rehabilitation Group, Inc.: Class A,
$.01 par common
Medical Diagnostics, Inc.: $.01 par common
Medical Technology Systems, Inc.: $.01 par common;
Warrants (expire 05-31-92); Warrants
(expire 07-10-96)
Medicis Pharmaceutical Corporation: Class A, $.001
par common; Class B, Warrants (expire 03-28-95);
Class C, Warrants (expire 04-10-95)
Memorex Telex N.V.: American Depository Receipts
Men's Wearhouse, Inc., The: $.01 par common
Menley & James, Inc.: $.01 par common
Mohawk Industries, Inc.: $.01 par common
S & T Bancorp, Inc.: $2.50 par common
Sanborn, Inc.: $.01 par common; Warrants (expire
08-07-96)
Sand Technology Systems International, Inc.: Class
A, No par common
Satellite Technology Management, Inc.: No par common
Sayett Group, Inc.: $.01 par common; Warrants
(expire 02-05-95)
Scholastic Corporation: $.01 par common
Schuler Homes, Inc.: $.01 par common
Sciclone Pharmaceuticals, Inc.: No par common;
Warrants (expire 03-12-97)
Scotts Company, The: Class A, $.01 par common
Seragen, Inc.: $.01 par common
Sholodge, Inc.: No par common
Simula, Inc.: $.01 par common
Spectranetics Corporation, The: $.001 par common
Sphinx Pharmaceuticals Corporation: $.01 par common
SSE Telecom, Inc.: $.01 par common
Staar Surgical Company: $.01 par common
Staff Builders, Inc.: Warrants (expire 01-31-95)
Summit Care Corporation: No par common
Sybron Chemical Industries, Inc.: $.01 par common
Synopsys, Inc.: $.01 par common
Nahama & Weagant Energy Company: No par common
NBT Bancorp, Inc.: $.001 par common
NCI Building Systems, Inc.: $.01 par common
Neorx Corporation: $.02 par convertible exchangeable
preferred
Noel Group, Inc.: $.01 par common
Northern Trust Corporation: Depository shares representing V20 of a share of cumulative convertible
preferred stock, Series E
Noven Pharmaceuticals, Inc.: $.0001 par common
Odd's-n-End's, Inc.: $.01 par common
Omega Financial Corporation: $5.00 par common
Opta Food Ingredients, Inc.: $.01 par common
Option Care, Inc.: $.01 par common
Pan Petroleum Master Limited Partnership: Depository receipts for units of limited partnership
PCI Services, Inc.: $.001 par common
Peoples Holding Company, The: $5.00 par common
Phycor, Inc.: No par common
Plains Spirit Financial Corporation: $.01 par common
Polymedica Industries, Inc.: $.01 par common
Pomeroy Computer Resources, Inc.: $.01 par common
Premier Anesthesia, Inc.: $.001 par common
Protein Design Labs, Inc.: $.01 par common
Protocol Systems, Inc.: $.01 par common
Providential Corporation: $.001 par common
Radiation Care, Inc.: $.01 par common
Reliable Financial Corporation: $.01 par common
Repossession Auction, Inc.: $.00067 par common;
Warrants (expire 12-18-96)
Target Therapeutics, Inc.: $.0025 par common
Taseko Mines, Limited: No par common
Tele-Communications, Inc.: Liquid yield options due
2008
Teledata Communication, Ltd.: Ordinary Shares,
NIS .1
Telios Pharmaceuticals, Inc.: No par common
TNT Freight ways Corporation: $.01 par common
Tocor II, Inc.: Units (expire 12-31-96)
Triconex Corporation: No par common
Union Planters Corporation: Series E, No par cumulative convertible preferred
United Postal Bancorp, Inc.: $.01 par common
United Retail Group, Inc.: $.001 par common
Univax Biologies, Inc.: $.01 par common
USA Truck, Inc.: $.01 par common
Varsity Spirit Corporation: $.01 par common
Ventritex, Inc.: No par common
Verdix Corporation: $.01 par common
Veterinary Centers of America, Inc.: $.001 par common; Warrants (expire 10-10-92)
Videotelecom Corporation: $.01 par common
Vitalink Pharmacy Services, Inc.: $.01 par common
Legal Developments
Walker Interactive Systems, Inc.: $.001 par common
Walker Power, Inc.: $.01 par common
Whole Foods Market, Inc.: No par common
Worthington Foods, Inc.: No par common
3. In section 265.11(c)(ll)(vi), paragraphs (A) and (B)
are removed and paragraph (vi) is revised to read as
follows:
(vi) With respect to nonbank acquisitions, the nonbanking activities involved do not clearly fall within
activities that the Board has designated as permissible for bank holding companies under section
225.25(b) of Regulation Y.
Xircom, Inc.: $.001 par common
Zynaxis, Inc.: $.01 par common
Additions to the List of Foreign Margin
445
Stocks
Bandai Co., Ltd.: ¥ 5 0 par common
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Clarion Co., Ltd.: ¥ 5 0 par common
Japan Storage Battery Co., Ltd.: ¥ 5 0 par common
Maruichi Steel Tube Ltd.: ¥ 5 0 par common
Orders Issued Under Section 3 of the Bank
Holding Company Act
Arvest Bank Group, Inc.
Bentonville, Arkansas
Okamoto Industries, Inc.: ¥ 5 0 par common
Order Approving Acquisition of a Bank
Sanwa Bank, Ltd.: ¥ 5 0 par common
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
("Rules"). The amendment would expedite applications processing by expanding the authority of the
Federal Reserve Banks to approve certain applications
under sections 3 and 4 of the Bank Holding Company
Act ("BHC Act") (12 U.S.C. § 1841 et seq.). Specifically, this amendment would delete certain provisions
of the Board's Rules to permit the Reserve Banks to
approve applications involving:
(a) banking organizations that rank among a state's
five largest banking organizations or among the 50
largest banking organizations in the United States, or
(b) the acquisition of certain large nonbanking companies by bank holding companies with over $1 billiori in
assets.
Effective April 8, 1992, 12 C.F.R. Part 265 is
amended as follows:
1. The authority citation for Part 265 continues to read
as follows:
Authority. Sections ll(i) and (k) of the Federal Reserve Act (12 U.S.C. 248(i) and (k)).
2. In section 265.11(c)(ll)(v), paragraph (A) is removed and paragraphs (B) and (C) are redesignated as
(A) and (B), respectively.
Arvest Bank Group, Inc., Bentonville, Arkansas
("Arvest"), 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 Farmers and Merchants Bank,
Prairie Grove, Arkansas ("Bank").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (57 Federal Register 6606 (1992)). 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.
Arvest operates five subsidiary banks in Arkansas.
The principal shareholders of Arvest control other
banks that operate in Arkansas and Oklahoma (collectively, the "Walton Chain"). The Walton Chain is the
third largest commercial banking organization in Arkansas, controlling $876.3 million in deposits, representing 4.5 percent of total deposits in commercial
banking organizations in Arkansas.1 Bank is the 80th
largest commercial banking organization in Arkansas,
controlling $54.8 million in deposits, representing less
than 1 percent of total deposits in commercial banking
organizations in the state. Upon consummation of this
proposal, the Walton Chain would remain the third
largest commercial banking organization in the state,
controlling $931.1 million in deposits, representing 4.8
1. State deposit data are as of June 30, 1991, and market data are as
of June 30, 1990. Data are adjusted to reflect mergers and acquisitions
that were approved through January 31, 1992.
446
Federal Reserve Bulletin • June 1992
percent of total deposits in commercial banking organizations in Arkansas.
The Walton Chain and Bank compete in the Fayetteville/Springdale, Arkansas banking market.2 The
Walton Chain controls five depository institutions in
the market and in the aggregate is the largest of twenty
depository institutions operating in the market.3 The
Walton Chain controls deposits of $792.3 million,
representing approximately 37.1 percent of total deposits in depository institutions in the Fayetteville/
Springdale banking market ("market deposits"). Bank
is the tenth largest depository institution in the market,
controlling $47.4 million in deposits, representing approximately 2.2 percent of market deposits. Upon
consummation of this proposal, the Walton Chain
would control approximately 39.3 percent of market
deposits. Upon consummation of this proposal, the
Herfindahl-Hirschman Index ("HHI") for the market
would increase by 164 points to 2090.4
Fourteen commercial banking organizations and five
thrifts would continue to operate in the market following consummation of this proposal. In addition, the
Fayetteville/Springdale market is attractive for entry.
The market population increased by 19.5 percent from
1980 to 1990, compared to an increase of 5.6 percent
for the state of Arkansas. The projected increase in the
population from 1989 to 1994 for the market is 8.2
percent, compared to a projected 2.7 percent increase
for the state. The per capita income in the market also
is higher than in the rest of the state. Since 1987, the
market has gained two competitors, one through
de novo entry and one as a result of the sale of two
banks of a multibank holding company located in the
market to two separate competitors. In addition, several large commercial banking organizations have recently entered the market through acquisitions of
small banks or thrifts.
After review of the concentration levels, the number
of competitors that will remain, the attractiveness of
the market for entry, and the other facts of record, the
Board has determined that consummation of the proposal is not likely to result in a significantly adverse
effect on competition in the Fayetteville/Springdale or
any other relevant banking market.
The financial and managerial resources and future
prospects of Arvest, its affiliated and subsidiary banks,
and Bank are consistent with approval of this proposal, especially in light of Arvest's commitment to
increase its leverage ratio prior to consummation of
this proposal. The Board also finds that considerations
relating to the convenience and needs of the communities to be served and the other factors the Board
must consider under section 3 of the BHC Act also are
consistent with approval.
Based on the foregoing and other factors of record,
the Board has determined that the application should
be, and hereby is, approved. This approval is specifically conditioned upon compliance by Arvest and its
subsidiaries with the commitments made in connection
with this application. The commitments and conditions relied on in reaching this decision are conditions
imposed in writing by the Board in connection with its
findings and decision and may be enforced in proceedings under applicable law. The acquisition shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of St. Louis, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
April 27, 1992.
2. The Fayetteville/Springdale banking market is approximated by
Benton and Washington Counties, Arkansas.
3. In this context, depository institutions include commercial banks,
savings banks and savings associations. Market share data are based
on calculations in which the deposits of thrift institutions are included
at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, major competitors of commercial banks. See Midwest Financial Group, 75 Federal
Reserve Bulletin 386 (1989); National City Corporation, 70 Federal
Reserve Bulletin 743 (1984).
4. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered highly concentrated.
The Department of Justice has informed the Board that a bank merger
or acquisition generally will not be challenged (in the absence of other
factors indicating anticompetitive effects) unless the post-merger HHI
is at least 1800 and the merger increases the HHI by at least 200
points. The Justice Department has stated that the higher than normal
HHI thresholds for screening bank mergers and acquisitions for
anticompetitive effects implicitly recognizes the competitive effect of
limited-purpose lenders and other non-depository financial entities.
Orders Issued Under Section 4 of the Bank
Holding Company Act
Voting for this action: Vice Chairman Mullins and Governors Angell, Kelley, LaWare, Lindsey, and Phillips. Absent
and not voting: Chairman Greenspan.
J E N N I F E R J. JOHNSON
Associate Secretary of the Board
The Chuo Trust and Banking Company,
Limited
Tokyo,Japan
Order Approving Application to Conduct Investment
Advisory Services
The Chuo Trust and Banking Company, Limited,
Tokyo, Japan ("Applicant"), a foreign bank subject to
the provisions of the Bank Holding Company Act (the
Legal Developments
"BHC Act"), has applied, pursuant to section 4(c)(8)
of the BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.21(a) of the Board's Regulation Y (12 C.F.R.
225.21(a)), to acquire 51 percent of the voting equity in
a joint venture company ("Joint Venture") that proposes to engage in investment advisory activities that
are permissible for bank holding companies under
section 225.25(b)(4) of the Board's Regulation Y
(12 C.F.R. 225.25(b)(4)).i The remaining 49 percent of
Joint Venture would be acquired by J. & W. Seligman
& Co., Incorporated, New York, New York ("Seligman").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (56 Federal Register 7047 (1991)). The time
for filing comments has expired, and the Board has
considered the application and all comments received
in light of the factors set forth in section 4(c)(8) of the
BHC Act.
Applicant is the 69th largest banking organization
worldwide and the sixth largest trust bank in Japan,
controlling total consolidated assets of approximately
$41.5 billion.2 Applicant maintains agencies in New
York, New York, and Los Angeles, California.
Seligman has organized and distributes shares of the
Seligman Group of Mutual Funds ("the Funds"),3
consisting of 13 registered, open-end investment companies and two closed-end investment companies.
Seligman also is engaged in activities that are permissible for state member banks and bank holding companies, including providing discretionary asset management services to high-net-worth individuals,
pension plans, trusts, not-for-profit organizations and
other sophisticated investors in the United States and
in various securities brokerage and trust activities.
The Board previously has determined by regulation
that the investment advisory services that Applicant
proposes to conduct through Joint Venture are closely
related to banking and permissible for bank holding
companies under section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)). 12 C.F.R. 225.25(b)(4). Applicant and Joint Venture propose to conduct these
activities pursuant to the Board's regulations. The
Board also must find that the proposed acquisition
"can reasonably be expected to produce benefits to
the public . . . that outweigh the possible adverse
effects, such as undue concentration of resources,
1. Applicant, a foreign bank operating agencies in N e w York and
California, is subject to certain provisions of the BHC Act by
operation of section 8(a) of the International Banking Act of 1978
(12 U.S.C. § 3106).
2. All banking data are as of September 30, 1990.
3. In addition, Seligman is the investment adviser to these funds and
participates in formulating investment strategies, determines the composition of the funds through the day-to-day management of the
portfolios of the funds, and monitors the investment performance of
the funds.
447
decreased or unfair competition, conflicts of interests, or unsound banking practices." 12 U.S.C.
§ 1843(c)(8).
In prior decisions, the Board has expressed concern
that joint ventures could potentially lead to a matrix of
relationships between co-venturers that could breach
the legally mandated separation of banking and commerce, create the possibility of conflicts of interests
and other adverse effects that the BHC Act was
designed to prevent, or impair or give the appearance
of impairing the ability of the banking organization to
function effectively as an independent and impartial
provider of credit. This concern is particularly acute
where the joint venture involves a relationship between a bank holding company and a firm engaged in
impermissible securities activities, and, therefore, has
the potential for the mingling of permissible and impermissible securities activities.4 Further, joint ventures must be carefully analyzed for any possible
adverse effects on competition and on the financial
condition of the banking organization involved in the
proposal.
The Board has relied on certain commitments to
address the potential adverse effects raised by joint
ventures between bank holding companies and firms
generally engaged in securities activities not authorized for bank holding companies. These commitments
are designed to separate the activities of the joint
venture from those of the nonbanking co-venturer. In
this case, Applicant, Joint Venture and Seligman have
made several commitments similar to those the Board
has relied upon in other cases to mitigate potential
adverse effects, with two exceptions.5 First, Applicant
proposes to have officer and employee interlocks
between Seligman and Joint Venture. Second, Applicant proposes that the name of the Joint Venture
("Chuo Trust & Seligman Co. Ltd.") reflect its connection with Seligman.
In this case, the proposed officer interlocks involve
Seligman officers with substantial roles for determining the strategic policies of the Funds.6 These interlocking officers have been chosen to be officers of Joint
Venture because of their demonstrated investmentadvisory expertise. Their role at the Joint Venture will
be limited to providing investment advice to customers
of Joint Venture—an activity that is permissible for
4. See Amsterdam-Rotterdam
Bank, N.V., 70 Federal
Reserve
Bulletin 835 (1984) ("Amsterdam-Rotterdam"); See also The LongTerm Credit Bank of Japan, Limited, 75 Federal Reserve Bulletin 719
(1989)("Long-Term Credit Bank").
5. See Amsterdam-Rotterdam.
A number of these commitments are
described in the Appendix.
6. One proposed officer interlock would permit Seligman's director of
research to also serve as an officer of Joint Venture. This individual has
supervisory responsibility over all of the portfolio managers for the
Seligman Funds. The other proposed interlocking officer currently
serves as the portfolio manager for a specific open-end Seligman Fund.
448
Federal Reserve Bulletin • June 1992
bank holding companies. The proposed interlocking
officers have no role in marketing the Seligman Funds
and have committed not to sell, market or recommend
shares of any Seligman Fund to any customers of the
Joint Venture. All of the interlocking non-officer employees will be employees with clerical or administrative functions only, and will be limited in number.
Under these circumstances, the Board does not believe that the proposed officer and employee interlocks
would cause Applicant to be involved in impermissible
securities activities.7
In AmRo, the Board relied on a commitment that the
joint venture name would be distinct from, and not
linked with, the securities firm co-venturer, Delfi
American Corporation. Chuo argues that this restriction is unnecessary in this case because the customers
of the joint venture are expected to be sophisticated
investors.
The Board limited the use of Delfi's name by the
joint venture in the AmRo case in order to avoid the
appearance that the joint venture sponsored, or was in
any way responsible for, the Delfi mutual funds. The
Board was also concerned in that case that the precedent of permitting common names would lead large
banking organizations and securities firms to establish
joint ventures that would market products using the
name of the securities firms, thereby creating the
perception that the banking organization had acquired
a company that was engaged in impermissible securities activities.8 Limiting reference to the securities
firm in the name of the joint venture prevented this
practice without inhibiting the operation of the joint
venture or limiting its conduct of permissible activities.
Based on all the facts of record, the Board continues
to believe that the prohibition against a connection
with the securities firm co-venturer in a joint venture's
name is a necessary condition to ensure that the public
benefits of the proposal outweigh the possible adverse
effects of the joint venture with a firm engaged in
impermissible securities activities. Accordingly, the
Board's action in this case is subject to the condition
that the Joint Venture's name not include a reference
to Seligman.
Applicant and Seligman do not currently compete
with each other in any relevant market. Accordingly,
consummation of the proposed transaction would not
eliminate any existing competition between Applicant
and Seligman.
7. Interlocks involving officers with other responsibilities would
require review by the Board.
8. The Board has in other contexts also limited the ability of bank
holding companies and their subsidiaries to share the same name as a
mutual fund advised by the company or subsidiary. 12 C.F.R.
225.125.
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 transaction on these resources.9 Based on
financial submissions by Applicant that make adjustments to reflect Japanese banking and accounting
principles, including consideration of a portion of
unrealized appreciation in Applicant's portfolio of
equity securities, Applicant's consolidated tier 1 and
total risk-based capital ratios meet applicable standards. The Board has also considered that the scope of
the proposed investment advisory activities is limited
to agency services and that the proposal requires a
de minimis capital investment. Based on all the facts of
record, the Board concludes that the financial considerations are consistent with approval. The managerial
resources of Applicant also are consistent with approval.
Consummation of Applicant's proposal may be expected to provide increased convenience to Joint
Venture's customers and gains in efficiency. The
Board expects that the de novo entry of Joint Venture
into the market for these services would increase the
number of firms in the U.S. capable of offering advice
to an international clientele with respect to the U.S.
securities market. Accordingly, the Board has determined that performance of the proposed activities by
Joint Venture can reasonably be expected to produce
benefits to the public.
For the reasons discussed above, and in reliance on
the commitments made by Applicant, Joint Venture
and Seligman, and the conditions in this order, the
Board believes that the proposal is not likely to result
in decreased or unfair competition, conflicts of interests, unsound banking practices, concentration of resources or other adverse effects, and that the balance
of public interest factors that the Board is required to
consider under section 4(c)(8) of the BHC Act is
favorable.
Based on the foregoing, including the conditions
described in this Order, and all of the facts of record,
including the commitments made by Applicant, Joint
Venture, and Seligman in connection with its application, the Board has determined that the application
should be, and hereby is, approved. This determination is also subject to all the conditions set forth in the
Board's Regulation Y, including those in sections
225.4(d) and 225.23(b), and to the Board's authority to
require such modification or termination of the activities of a bank holding company or any of its subsid-
9. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal
Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal
Bulletin 155 (1987).
Reserve
Reserve
Legal Developments
iaries as the Board finds necessary to assure compliance with, or to prevent evasion of, the provisions and
purposes of the BHC Act and the Board's regulations
and orders issued thereunder. The Board's approval of
this proposal is specifically conditioned on compliance
by Applicant, Joint Venture, and Seligman with these
conditions and commitments which are conditions
imposed in writing by the Board in connection with its
findings and decision and may be enforced in proceedings under applicable law.
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of New
York, acting pursuant to delegated authority.
By order of the Board of Governors, effective
April 29, 1992.
Voting for this action: Vice Chairman Mullins and Governors Angell, Kelley, LaWare, Lindsey, and Phillips. Absent
and not voting: Chairman Greenspan.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Appendix
Applicant's Commitments
1. Applicant will apply for the Board's prior approval
to retain its investment in the Joint Venture should
Seligman expand into a line of business other than the
businesses it currently engages in. If required by the
Board in such circumstances, Applicant will divest its
investment in Joint Venture.
2. The offices of Seligman and the Joint Venture will
have separate entrances.
3. Applicant and its subsidiaries will not distribute
prospectuses or sales literature for Seligman's mutual
funds or make any such literature available to the
public at any of their offices.
4. Officers and employees of the New York branch and
the Los Angeles agency will be instructed not to
express any opinion concerning the advisability of
purchasing the securities of any Seligman mutual fund.
5. The names of customers of the New York branch or
Los Angeles agency will not be furnished to Seligman's mutual funds.
6. None of Seligman's mutual funds will have offices in
any building which is likely to be identified in the
public's mind with Applicant or its subsidiaries.
7. Applicant and its subsidiaries will not act as registrar, transfer agent or custodian for any of Seligman's
mutual funds.
449
8. Applicant and its subsidiaries will not engage,
directly or indirectly, in the sale or distribution of, or
purchase for their account, any shares of Seligman's
mutual funds.
9. Applicant and its subsidiaries will not purchase in
their sole discretion any securities of Seligman's mutual funds in a fiduciary capacity, will not extend credit
to any such mutual fund, or accept securities of any
such mutual fund as collateral for a loan which is for
the purpose of purchasing securities of any such fund.
10. Applicant will not make any investment in Seligman or nominate any director of Seligman.
11. Applicant and its banking subsidiaries will not take
into account the fact that a potential borrower competes with Joint Venture in determining whether to
extend credit to that borrower.
12. Neither Applicant nor any of its banking subsidiaries will extend credit directly or indirectly to the
Joint Venture, any customer of the Joint Venture or
Seligman on terms more favorable than those afforded
similar borrowers in similar circumstances.
13. Applicant, as the 51 percent shareholder of Joint
Venture, commits that Joint Venture will not provide
to the Seligman Group mutual funds access to its
customer lists. Seligman has agreed that the Seligman
Group of mutual funds will not solicit business from
the clients of the Joint Venture and will not seek
access to the customer lists of the Joint Venture.
14. Joint Venture will not solicit customers of the
Seligman Group of mutual funds and Joint Venture
will not request or accept access to the customer lists
of such mutual funds.
15. Applicant, as the 51 percent shareholder of the Joint
Venture, commits that any referral by the Joint Venture
of its customers to the Seligman Group will include
notice that alternative providers of the same mutual
fund services are available. Seligman Group has agreed
that any referral of a customer of the Seligman Group to
the Joint Venture by the Seligman Group will include
notice that additional organizations are available which
provide the same services as Joint Venture.
16. Joint Venture will not act as investment adviser to
any investment company organized and advised by
Seligman or any affiliate of Seligman (or any other
investment company that may in the future be so
organized and advised).
17. Joint Venture will not provide advice in the United
States to any investor that is not a sophisticated
investor. The term "sophisticated investor" has the
same meaning as the term "accredited investor" as
that term is defined in the securities Act of 1933, as
amended and Regulation D, 12 C.F.R. 230.
18. No officer or employee of Seligman, whose responsibility consists of selling or marketing the shares of
any of the Seligman Funds (or any other open-end
450
Federal Reserve Bulletin • June 1992
investment company that may be established by Seligman), or whose responsibility consists of overseeing
the corporate affairs of any of the Seligman Funds (or
any other open-end investment company that may be
established by Seligman) will serve concurrently as an
officer or employee of the Joint Venture.
19. No director, officer or employee of the Joint
Venture will recommend any of Seligman's mutual
funds to a client or prospective client of the Joint
Venture, or in any way solicit a client or prospective
client of the Joint Venture on behalf of any of Seligman's mutual funds.
subsidiaries in Michigan, Illinois, and Indiana. This
proposal represents an internal reorganization of
FOA's subsidiary banks and would not have a significantly adverse effect on competition in any relevant
banking market. Accordingly, competitive considerations are consistent with approval.
The Board also concludes that the financial and
managerial resources and future prospects of Ann
Arbor Bank and Livingston Bank are consistent with
approval.
Orders Issued Under Bank Merger Act
In analyzing the effect of this merger on the convenience and needs of the communities to be served by
Ann Arbor Bank, the Board has taken into account the
record of performance of Ann Arbor Bank and Livingston Bank under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the federal financial supervisory agencies to
encourage financial institutions to help meet the credit
needs of the local communities in which they operate,
consistent with the safe and sound operation of such
institutions. To accomplish this end, the CRA requires
the appropriate federal supervisory authority to "assess an institution's record of meeting the credit needs
of its entire community, including low- and moderateincome neighborhoods, consistent with the safe and
sound operation of the institution," and to take that
record into account in its evaluation of applications to
merge under the Bank Merger Act and to establish a
domestic branch.3
In this regard, the Board has considered comments
filed by several individuals ("Protestants") alleging
that Ann Arbor Bank has failed to provide adequate
assistance for the development of low-income housing
in Ann Arbor. Protestants cited as an example Ann
Arbor Bank's refusal to donate a downtown office
building for use as low-income housing. The Board has
carefully reviewed the CRA performance records of
Ann Arbor Bank and Livingston Bank, as well as
Protestants' comments, the banks' responses, and all of
the other relevant facts, 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
First of America Bank—Ann Arbor
Ann Arbor, Michigan
Order Approving Merger of Banks
First of America Bank—Ann Arbor, Ann Arbor,
Michigan ("Ann Arbor Bank"), a state member bank,
has applied under section 18(c) of the Federal Deposit
Insurance Act (12 U.S.C. § 1828(c)) ("Bank Merger
Act") to merge with First of America Bank—Livingston, Howell, Michigan ("Livingston Bank"), with
Ann Arbor Bank as the surviving entity. Ann Arbor
Bank has also applied under section 9 of the Federal
Reserve Act (12 U.S.C. § 321) to establish branches at
the 7 offices of Livingston Bank and has applied to
make an additional investment in bank premises pursuant to section 24A of the Federal Reserve Act
(12 U.S.C. § 371(d)).1
Notice of the applications, affording interested persons an opportunity to submit comments, has been
given in accordance with applicable law. As required
by the Bank Merger Act, reports on the competitive
effects of the merger were requested from the United
States Attorney General, the Office of the Comptroller
of the Currency, and the Federal Deposit Insurance
Corporation. The time for filing comments has expired,
and the Board has considered the applications and all
the comments received in light of the factors set forth in
the Bank Merger Act and the Federal Reserve Act.
Ann Arbor Bank and Livingston Bank are subsidiary banks of First of America Bank Corporation,
Kalamazoo, Michigan ("FOA"). FOA, with total consolidated assets of $16.8 billion,2 controls 25 banking
1. These branches will be located at: 10014 East Grand River,
Brighton; 8130 West Grand River, Brighton; 11050 Highland Road,
Hartland; 2300 East Grand River, Howell; 207 North Michigan,
Howell; 219 North Walnut Street, Howell; and 222 West Main,
Pinckney, all in Michigan.
2. Asset data are as of December 31, 1991.
Convenience and Needs
Considerations
3. 12 U.S.C. § 2903.
4. 54 Federal Register 13,742 (1989). The Agency CRA Statement
provides guidance regarding the types of policies and procedures that
the supervisory agencies believe financial institutions should have in
place in order to fulfill their responsibilities under the CRA on an
ongoing basis, and the procedures that the supervisory agencies will
use during the applications process to review an institution's record of
performance under the CRA.
Legal Developments
Initially, the Board notes that Ann Arbor Bank
received a "satisfactory" rating from the Federal
Reserve Bank of Chicago in its most recent examination for CRA performance as of September 1991.
Livingston Bank has an outstanding CRA performance
rating as reflected in its most recent examination for
CRA performance by its primary regulator, the Federal Deposit Insurance Corporation. 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.5 In addition, the Board has recently concluded that the CRA performance records of all of
FOA's subsidiary banks are generally consistent with
approval of applications under the convenience and
needs factor in the Bank Holding Company Act. 6
The record also indicates that Ann Arbor Bank has
in place the types of policies and procedures outlined
in the Agency CRA Statement that contribute to an
effective CRA program. For example, Ann Arbor
Bank has appointed a CRA Officer as well as a
Community Liaison, and has formed a CRA Committee, which includes representatives from all lending
departments. The CRA Committee meets bi-monthly,
and annually performs an audit of Ann Arbor Bank's
CRA activities.
In addition, Ann Arbor Bank has an officer calling
program that permits outreach to realtors, business
groups, churches, municipalities, nonprofit organizations, and schools. Ann Arbor Bank markets its loan
products through a wide variety of media, including
marketing directed at low- and moderate-income individuals. Ann Arbor Bank also offers mortgage loans
and small business services for low- and moderateincome customers. For example, Ann Arbor Bank
offers the FOA Initiative Mortgage, with downpayments as low as 5 percent, and assists small businesses
through a program with the Wayne Downtown Development Authority to provide loans to attract new
business to the downtown district and to assist existing
businesses to continue operating within the city.
The Board has considered Protestants' proposal
regarding the donation of a building for a homeless
facility in light of Ann Arbor Bank's response and
other activities by Ann Arbor Bank to assist lowincome or homeless individuals.7 The bank currently
5. 54 Federal Register at 13,745.
6. First of America Bank Corporation, 76 Federal Reserve Bulletin
371 (1992).
7. This building, known as the Downtown Club, served as a
single-room occupancy facility for the homeless until 1982. Its residential operations ceased when the building was converted into a
commercial office building. In 1986, Ann Arbor Bank acquired the
mortgage and was forced to foreclose on the property in June 1991.
451
holds a substantial mortgage on the building. While
Ann Arbor Bank has considered Protestants' suggestion that the building be donated, Ann Arbor Bank has
determined that it is not feasible, in light of the
financial consequences to the bank, to make a charitable donation of the building. Ann Arbor Bank also
notes that conversion from the current office configuration to a facility for single-room occupancy would
require substantial renovations.
The Board also notes that Ann Arbor Bank engages
in activities that support the development of lowincome housing. For example, Ann Arbor Bank has
extended credit to facilitate the expansion and rehabilitation of the Ann Arbor YMCA, which includes a
single-room occupancy facility for low-income individuals in Ann Arbor. In addition, Ann Arbor Bank
has provided a line of credit to the Washtenaw
Affordable Housing Corporation for housing acquisition and renovation for low- and moderate-income
individuals, and has extended credit to the Arrowwood Hills Cooperative, which provides housing to
low-income individuals.
On the basis of all the facts of record, including
comments received and relevant examination reports, the Board concludes that convenience and
needs considerations, including the CRA performance records of Ann Arbor Bank and Livingston
Bank, are consistent with approval of these applications.
Other Considerations
Ann Arbor Bank has also applied under section 9 of
the Federal Reserve Act to establish branches at the
offices of Livingston Bank. The Board has considered the factors it is required to consider when
reviewing applications for establishing branches
pursuant to section 9 of the Federal Reserve Act, and
finds these factors to be consistent with approval.
In connection with its branch applications, Ann
Arbor Bank has requested permission under section
24A of the Federal Reserve Act to make an additional
investment in bank premises. The Board concludes
that the additional investment in bank premises
will support Ann Arbor Bank's acquisition of the
offices of Livingston Bank and is consistent with
approval.
Based on the foregoing and other facts of record,
the Board has determined that the applications
should be, and hereby are, approved. This approval
is specifically conditioned on compliance by Ann
Arbor Bank and Livingston Bank with all of the
commitments made in connection with these applications. The commitments and conditions relied on
in reaching this decision are conditions imposed in
452
Federal Reserve Bulletin • June 1992
writing by the Board in connection with its findings
and decision and may be enforced in proceedings
under applicable law. This transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Chicago,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
April 13, 1992.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and
not voting: Governor Mullins.
J E N N I F E R J . JOHNSON
Associate Secretary of the Board
ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT
INSURANCE CORPORATION IMPROVEMENT ACT
OF 1991
By the Board
April 3, 1992
David V. Nelson
Vice President
Norwest Corporation
Norwest Center
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479
Dear Mr. Nelson:
Norwest Corporation, Minneapolis, Minnesota ("Norwest"), has proposed to acquire certain assets and
assume certain liabilities of First Federal Savings
Bank of South Dakota, Rapid City, South Dakota
("First Federal"), through its bank subsidiary, Norwest Bank South Dakota, N.A., Sioux Falls, South
Dakota, ("Bank"). As structured, the transaction requires the Board's approval pursuant to section 5(d)(3)
of the Federal Deposit Insurance Act ("FDI Act"), as
amended by the Federal Deposit Insurance Corporation Improvement Act of 1991 (Pub. L. No. 102242, § 501, 105 Stat. 2236, 2388 (1991)). By letter dated
March 31, 1992, the Board determined not to approve
this proposal. The Board issues this Statement explaining in more detail the reasons for its action.
The Board must consider the factors and follow the
procedures established in the Bank Merger Act
(12 U.S.C. § 1828(c)) in considering proposals under
section 5(d)(3) of the FDI Act. The Bank Merger Act
prohibits approval of any proposal that would substantially lessen competition in any relevant banking market unless the agency finds that the anticompetitive
effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of
the transaction in meeting the convenience and needs
of the community to be served. 12 U.S.C. § 1828(c).
Norwest and First Federal directly compete in three
banking markets, including the Rapid City, South
Dakota banking market.1 In the Rapid City banking
market, Bank is the largest of 13 commercial banking
or thrift institutions (together, "depository institutions"), controlling deposits of $487 million, representing approximately 39.3 percent of total deposits in
depository institutions in the market ("market deposits"). 2 First Federal controls $184.2 million in deposits
in the Rapid City market. With all thrift deposits in the
Rapid City banking market weighted at 50 percent,3
First Federal is the fifth largest depository institution
in the market, and its deposits represent approximately 7.4 percent of total market deposits. If the
proposed merger were consummated, Bank would
control $664 million in deposits, 4 and its share of total
market deposits would increase to approximately 50
percent of market deposits. 5 The Herfindahl-Hirschman Index ("HHI"), for this market would increase by 825 points to 2988.6
These measures are particularly significant in light
of the structure of the Rapid City banking market.
Bank currently controls more than twice the share of
the Rapid City banking market as the second largest
competitor. Upon consummation of Norwest's proposal, Bank would control 20 of the 48 branches of
depository institutions in the market, and only one
other depository institution would operate more than
three branches. Moreover, most of the remaining
1. The Rapid City banking market is comprised of Butte, Lawrence,
Pennington, Haakon, Custer, Fall River, Shannon, Jackson, and
Bennett Counties; Lakeside Township, Southwest Meade Unorganized Territory, and Belle Fourche-Cheyenne Valleys Unorganized
Territory in Meade County.
2. Deposit and market share data are as of June 30, 1991.
3. See, e.g., First Union Corporation, 76 Federal Reserve Bulletin
83 (1990); First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991).
4. This calculation accounts for Norwest's proposal to transfer the
Custer branch of First Federal to First Western Bank, Custer, South
Dakota.
5. Because the deposits of First Federal would be transferred to a
commercial bank pursuant to Norwest's proposal, First Federal's
deposits are included at 100 percent following Bank's proposed
assumption of these deposits. See First Banks, Inc., 76 Federal
Reserve Bulletin 669, 670 n.9 (1990).
6. If thrift deposits are weighted at 50 percent both before and after
consummation of Norwest's proposal, Bank's market share would
increase to 46.4 percent and the HHI would increase by 565 points to
2,727.
Legal Developments
depository institutions in the market are relatively
small and have small market shares. This market has
not enjoyed entry of new competitors since 1987, and
this market is not of the size, and has not experienced
the high growth rate, that typically attracts new competitors.7
The Board has considered Norwest's argument that
the various measures of market share overstate the
competitive effect of the transaction because these
measures do not reflect the troubled financial condition of First Federal and recent flow of deposits to
other institutions, or the competition offered by credit
unions in this market. However, based on a review of
all the facts of record, including the structure of the
Rapid City market, the current market share controlled by Norwest, and the number and location of
branch offices of Norwest following the transaction,
the Board believes that the proposed transaction
would have a significantly adverse effect on competition in the Rapid City banking market.
The Board also believes these significant competitive effects are not clearly outweighed in the public
interest by benefits to the convenience and needs of
the communities to be served. The RTC has advised
the Board that it has received bids for First Federal
from various other prospective purchasers, including
qualified bidders that do not have a significant pres7. Between 1980 and 1990, population in the Rapid City market
increased by 7.4 percent compared to a national average of 9.7
percent.
453
ence in the Rapid City market. While public benefits
would result from Norwest's proposal, the Board does
not believe that, in light of the facts of this case, these
benefits clearly outweigh the likely adverse effects of
the proposal on competition in the Rapid City banking
market.
For these reasons, and based on all of the facts of
record, the Board concludes that considerations relating to the competitive effects of this proposal are not
consistent with approval. Considerations relating to
the financial and managerial resources and future
prospects of the existing and proposed institutions,
and the convenience and needs of the communities to
be served, do not lend sufficient weight to warrant
approval of this application.
Accordingly, it is the Board's judgment that approval of this application is not warranted and, it is for
these reasons that the Board has denied the application under section 5(d)(3) of the FDI Act.
Very truly yours,
JENNIFER J. JOHNSON
Associate Secretary of the Board
cc: Federal Reserve Bank of Minneapolis
Resolution Trust Corporation
Office of the Comptroller of the Currency
Federal Deposit Insurance Corporation
Department of Justice
ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT
ACT OF 1991
By the Director of the Division of Banking Supervision and Regulation and the General Counsel
of the Board
Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of
Governors of the Federal Reserve System, Washington, D.C. 20551.
Bank Holding Company
Panhandle Bancshares, Inc.,
Panhandle, Texas
Acquired
Thrift
Surviving
Bank(s)
New MeraBank, F.S.B.,
El Paso, Texas (Wolfin
Branch)
The First National
Bank of Panhandle,
Panhandle, Texas
Approval
Date
April 3, 1992
454
Federal Reserve Bulletin • June 1992
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)
BB&T Financial Corporation,
Wilson, North Carolina
BRAD, Inc.,
Black River Falls, Wisconsin
Camilla Bancshares, Inc.,
Camilla, Georgia
City Holding Company,
Charleston, West Virginia
Commerce Bancshares, Inc.,
Kansas City, Missouri
CBI-Illinois, Inc.,
Kansas City, Missouri
Commercial Financial Corp.,
Storm Lake, Iowa
Community Bancorp of
Louisiana, Inc.,
Raceland, Louisiana
Community Group, Inc.,
Chattanooga, Tennessee
First Banks, Inc.,
St. Louis, Missouri
First Capital Bancorp, Inc.,
Guthrie, Oklahoma
First Central Bancshares, Inc.,
Lenoir City, Tennessee
First National Agency of Bagley,
Inc.,
Bagley, Minnesota
First Tule Bancorp of Delaware,
Inc.,
Wilmington, Delaware
Glen Burnie Bancorp,
Glen Burnie, Maryland
Grayson Bankshares, Inc.,
Independence, Virginia
Reserve
Bank
Bank(s)
Peoples Bank,
Thomas ville,
North Carolina
Bank of Melrose,
Melrose, Wisconsin
Bank of Camilla,
Camilla, Georgia
Home Bancorp, Inc.,
Sutton, West Virginia
First Peoria Corporation,
Peoria, Illinois
The Commercial Trust &
Savings Bank,
Storm Lake, Iowa
Community Bank of
Lafourche,
Raceland, Louisiana
Consolidated
Bancorporation, Inc.,
Chattanooga,
Tennessee
WIN Bancorp, Inc.,
Winchester, Illinois
First Capital Bank,
Guthrie, Oklahoma
First Central Bank,
Lenoir City, Tennessee
Fosston Bancorporation,
Inc.,
Fosston, Minnesota
The First National Bank
of Tulia,
Tulia, Texas
The Bank of Glen Burnie,
Glen Burnie, Maryland
Grayson National Bank,
Independence, Virginia
Effective
Date
Richmond
April 15, 1992
Chicago
April 8, 1992
Atlanta
April 3, 1992
Richmond
March 30, 1992
Kansas City
April 3, 1992
Chicago
April 23, 1992
Atlanta
April 17, 1992
Atlanta
April 17, 1992
St. Louis
March 30, 1992
Kansas City
April 9, 1992
Atlanta
April 7, 1992
Minneapolis
April 3, 1992
Dallas
April 7, 1992
Richmond
April 21, 1992
Richmond
April 8, 1992
Legal Developments
Section 3—Continued
Applicant(s)
HNB Corporation,
Arkansas City, Kansas
Lockhart Bankshares-Delaware,
Inc.,
Wilmington, Delaware
Lockhart Bankshares, Inc.,
Lockhart, Texas
Mabrey Insurance Agency, Inc.,
Okmulgee, Oklahoma
Niota Bancshares, Inc.,
Niota, Tennessee
Northwest Financial Corp.,
Spencer, Iowa
Old State Bank Corporation,
Fremont, Michigan
Peoples Bancorporation, Inc.,
Easley, South Carolina
Princeton National Bancorp,
Inc.,
Princeton, Illinois
San Bancorp.,
Sanborn, Iowa
Southern Banking Corporation,
Altamonte Springs, Florida
TB&C Bancshares, Inc.,
Columbus, Georgia
Union Bancorp, Inc.,
Bowling Green, Virginia
Union Planters Corporation,
Memphis, Tennessee
Villages Bancorporation, Inc.,
Lady Lake, Florida
Reserve
Bank
Bank(s)
American Bancorp of
Ponca City, Inc.,
Ponca City, Oklahoma
First-Lockhart National
Bank,
Lockhart, Texas
Lockhart
Bankshares-Delaware,
Inc.,
Wilmington, Delaware
First-Lockhart National
Bank,
Lockhart, Texas
The Morris State Bank,
Morris, Oklahoma
Bank of Niota,
Niota, Tennessee
Conover Bancorporation,
Creston, Iowa
The Old State Bank of
Fremont,
Fremont, Michigan
The Peoples National
Bank,
Easley, South Carolina
Illinois Valley
Bancshares,
Princeton, Illinois
Ocheyedan
Bancorporation,
Ocheyedan, Iowa
Southern Bank of Central
Florida,
Altamonte Springs,
Florida
Citizens First Bank,
Rome, Georgia
Union Bank and Trust
Company,
Bowling Green,
Virginia
Southeastern Bancshares,
Inc.,
Alexandria, Tennessee
First Bank of the
Villages,
Lady Lake, Florida
Effective
Date
Kansas City
April 3, 1992
Dallas
April 21, 1992
Dallas
April 21, 1992
Kansas City
April 22, 1992
Atlanta
April 17, 1992
Chicago
April 21, 1992
Chicago
April 1, 1992
Richmond
April 1, 1992
Chicago
April 21, 1992
Chicago
April 9, 1992
Atlanta
April 6, 1992
Atlanta
April 2, 1992
Richmond
April 2, 1992
St. Louis
April 20, 1992
Atlanta
April 2, 1992
455
456
Federal Reserve Bulletin • June 1992
Section 4
Applicant(s)
Alpha Financial Group, Inc.,
Minonk, Illinois
Mahaska Investment Company,
Oskaloosa, Iowa Mahaska
Investment Company ESOP,
Oskaloosa, Iowa
Matewan BancShares, Inc.,
Matewan, West Virginia
Montana Bancsystem, Inc.,
Billings, Montana
Norwest Corporation,
Minneapolis, Minnesota
Norwest Corporation,
Minneapolis, Minnesota
Nonbanking
Activity/Company
Effective
Date
Ghiglieri Insurance
Agency,
Toluca, Illinois
making and servicing of
loans
Chicago
April 10, 1992
Chicago
April 13, 1992
Hampden Venture
Limited Partnership,
Gilbert, West Virginia
making and servicing
loans
general insurance
surety/bond activities
National Ag
Underwriters, Inc.,
Anoka, Minnesota
Richmond
April 10, 1992
Minneapolis
April 22, 1992
Minneapolis
April 3, 1992
Minneapolis
April 16, 1992
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.
State of Idaho, Department of Finance v. Board of
Governors, No. 92-70107, (9th Cir., filed February 24, 1992). Petition for review of Board order
returning without action a bank holding company
application to relocate its subsidiary bank from
Washington to Idaho.
Davis v. Board of Governors, No. 91-6972 (Supreme
Court, filed December 4, 1991). Petition for certiorari seeking review of Burke v. Board of Governors,
940 F.2d 1360 (10th Cir. 1991), in which the court of
appeals upheld Board orders assessing civil money
penalties and issuing orders of prohibition. The
Board's oppositionto certiorari was filed on April
15, 1992.
In re Subpoena Served on the Board of Governors,
Nos. 91-5427, 91-5428 (D.C. Cir., filed December 27, 1991). Appeal of order of district court,
dated December 3, 1991, requiring the Board and
the Office of the Comptroller of the Currency to
produce confidential examination material to a private litigant. The court of appeals stayed the district
Reserve
Bank
court order on January 7, 1992, and oral argument
was held on the case on March 17, 1992.
Greenberg v. Board of Governors, No. 91-4200 (2d
Cir., filed December 4, 1991). Petition for review of
orders of prohibition issued by the Board on October 28, 1991. Oral argument was held on April 22,
1992.
First Interstate BancSystem of Montana, Inc. v.
Board of Governors, No. 91-1525 (D.C. Cir., filed
November 1, 1991). Petition for review of Board's
order denying on Community Reinvestment Act
grounds the petitioner's application under section 3
of the Bank Holding Company Act to merge with
Commerce BancShares of Wyoming, Inc. The case
is pending.
Board of Governors v. Kemal Shoaib, No. CV 91-5152
(C.D. California, filed September 24, 1991). Action
to freeze assets of individual pending administrative
adjudication of civil money penalty assessment by
the Board. On October 15, the court issued a preliminary injunction restraining the transfer or disposition of the individual's assets.
Board of Governors v. Ghaith R. Pharaon, No. 91CIV-6250 (S.D. New York, filed September 17,
1991). Action to freeze assets of individual pending
administrative adjudication of civil money penalty
assessment by the Board. On September 17, the
court issued an order temporarily restraining the
transfer or disposition of the individual's assets.
Legal Developments
In re Smouha, No. 91-B-13569 (Bkr. S.D. New York,
filed August 2, 1991). Ancillary proceeding under
the U.S. Bankruptcy Code brought by provisional
liquidators of BCCI Holdings (Luxembourg) S.A.
and affiliated companies. On August 15, 1991, the
bankruptcy court issued a temporary restraining
order staying certain judicial and administrative
actions, which has been continued by consent.
Fields v. Board of Governors, No. 3:91CV069 (N.D.
Ohio, filed February 5, 1991). Appeal of denial of
request for information under the Freedom of Information Act.
Synovus Financial Corp. v. Board of Governors, No.
89-1394 (D.C. Circuit, filed June 21, 1989). Petition
for review of Board order permitting relocation of a
bank holding company's national bank subsidiary
from Alabama to Georgia. On December 20, 1991,
the Court of Appeals vacated the Board's order,
ruling that the Board has no authority over interstate
relocations of national banks. Synovus's petition for
rehearing was denied on March 27, 1992.
MCorp v. Board of Governors, No. CA3-88-2693
(N.D. Texas, filed October 10, 1988). Application
for injunction to set aside temporary cease and
desist orders. The case is pending.
457
WRITTEN AGREEMENTS APPROVED BY FEDERAL
RESERVE BANKS
Bank South Corporation
Atlanta, Georgia
The Federal Reserve Board announced on April 21,
1992, the execution of a Written Agreement among the
Federal Reserve Bank of Atlanta and Bank South
Corporation, Atlanta, Georgia.
Connecticut Bancorp, Inc.
Norwalk, Connecticut
The Federal Reserve Board announced on April 8,
1992, the execution of a Written Agreement among the
Federal Reserve Bank of New York, the Banking
Commissioner, State of Connecticut, and Connecticut
Bancorp, Inc., Norwalk, Connecticut.
Farmers National Bancorp of Cynthiana, Inc.
Cynthiana, Kentucky
FINAL ENFORCEMENT ORDERS ISSUED BY THE
BOARD OF GOVERNORS
The Federal Reserve Board announced on April 6,
1992, the execution of a Written Agreement among the
Federal Reserve Bank of Cleveland, the Department
of Financial Institutions, Commonwealth of Kentucky, and Farmers National Bancorp of Cynthiana,
Inc., Cynthiana, Kentucky.
Blaine E. Correll
Somerset, Kentucky
Northeast Bancorp, Inc.
Stamford, Connecticut
The Federal Reserve Board announced on April 8,
1992, the termination of a Cease and Desist Order
issued, on December 20, 1991, against Blaine E.
Correll, an institution-affiliated party of First and
Farmers Bancshares, Inc., Somerset, Kentucky.
The Federal Reserve Board announced on April 8,
1992, the execution of a Written Agreement among
the Federal Reserve Bank of New York, the Banking
Commissioner, State of Connecticut, and Northeast
Bancorp, Inc., Stamford, Connecticut.
State Bank and Trust of Colorado Springs
Colorado Springs, Colorado
The Federal Reserve Board announced on April 15,
1992, the issuance of a Cease and Desist Order against
the State Bank and Trust of Colorado Springs, Colorado Springs, Colorado.
Security Bank Corporation
Manassas, Virginia
The Federal Reserve Board announced on April 15,1992,
the execution of a Written Agreement among the Federal
Reserve Bank of Richmond, the Bureau of Financial
Institutions of the Commonwealth of Virginia, and the
Security Bank Corporation, Manassas, Virginia.
58
Financial and Business Statistics
CONTENTS
WEEKLY REPORTING COMMERCIAL BANKS
A3 Guide to Tabular Presentation
Assets and liabilities
A20 All reporting banks
A22 Branches and agencies of foreign banks
Domestic Financial Statistics
MONEY STOCK AND BANK CREDIT
FINANCIAL MARKETS
A4
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
A5
A6
A7
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds—Large member banks
POLICY INSTRUMENTS
A8 Federal Reserve Bank interest rates
A9 Reserve requirements of depository institutions
A10 Federal Reserve open market transactions
FEDERAL RESERVE BANKS
A l l Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings
FEDERAL FINANCE
A26
A27
A28
A28
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
A29 U.S. government securities
dealers—Transactions
A30 U.S. government securities dealers—Positions
and financing
A31 Federal and federally sponsored credit
agencies—Debt outstanding
MONETARY AND CREDIT AGGREGATES
A13 Aggregate reserves of depository institutions
and monetary base
A14 Money stock, liquid assets, and debt measures
A16 Bank debits and deposit turnover
A17 Loans and securities—All commercial banks
COMMERCIAL BANKING INSTITUTIONS
A18 Major nondeposit funds
A19 Assets and liabilities, last-Wednesday-of-month
series
SECURITIES MARKETS AND
CORPORATE FINANCE
A32 New security issues—State and local
governments and corporations
A33 Open-end investment companies—Net sales
and asset position
A33 Corporate profits and their distribution
A33 Total nonfarm business expenditures on new
plant and equipment
A34 Domestic finance companies—Assets and
liabilities and business credit
59
Federal Reserve Bulletin • June 1992
Domestic Financial Statistics—Continued
REAL ESTATE
A35 Mortgage markets
A36 Mortgage debt outstanding
A54 U.S. reserve assets
A54 Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance
sheet data
A57 Selected U.S. liabilities to foreign official
institutions
CONSUMER INSTALLMENT CREDIT
A37 Total outstanding and net change
A3 8 Terms
FLOW OF FUNDS
A39 Funds raised in U.S. credit markets
A41 Direct and indirect sources of funds to credit
markets
A42 Summary of credit market debt outstanding
A43 Summary of credit market claims, by holder
Domestic Nonfinancial Statistics
SELECTED MEASURES
A44 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross domestic product and income
A52 Personal income and saving
REPORTED BY BANKS
IN THE UNITED STATES
A57
A58
A60
A61
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES
A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
SECURITIES HOLDINGS AND TRANSACTIONS
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and
notes—Foreign transactions
INTEREST AND EXCHANGE RATES
International Statistics
SUMMARY STATISTICS
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A69 Guide to Statistical Releases and
Special Tables
A3
Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
c
e
P
r
*
0
ATS
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
G-10
GNMA
Corrected
Estimated
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
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
Group of Ten
Government National Mortgage Association
GDP
HUD
IMF
IO
IPCs
IRA
MMDA
n.a.
n.e.c.
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SAIF
SCO
SDR
SMSA
VA
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
Not available
Not elsewhere classified
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 metropolitan statistical area
Veterans Administration
GENERAL INFORMATION
In some of the tables, details do not add 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
Domestic Financial Statistics • June 1992
1.10
RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted 1
1991
1991
1992
1992
Monetary and credit aggregate
Q2
1
2
3
4
Reserves of depository institutions2
Total........
Required
Nonborrowed
Monetary base 3
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontransaction
10 In M25
11 In M3 only 6
Q3
Q4
Q1
Time and savings deposits
Commercial banks
Savings, including MMDAs
Smalltime 7
Large time8,
Thrift institutions
15 Savings, including MMDAs
16 Smalltime 7
17 Large time8'9
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
Debt components4
20 Federal
21 Nonfederal
Jan.
Feb.
Mar.
7.4
7.9
4.3
6.6
15.3
15.5
19.3
8.4
24.9
25.0
25.4
9.8
20.3
25.3
24.0
8.2
24.1
22.5
22.2
7.8
13.7
13.4
12.8
9.1
45.3
44.7
48.9
16.4
19.4
20.5
19.2
4.0
7.4
4.4
1.8
-1.9
4.2
7.5
.6r
-1.3
.7
4.7
11.1
2.3
1.0
.2
4.3
16.4
4.2
2.1
n.a.
n.a.
14.3
4.8
2.4r
3.1
4.5
9.2
2.9
1.2r
-,5r
3.0
16.2
3.1rr
1.2
-i.r
2.4
27.0
9.4
7.0
7.7
3.8
10.1
-.7
-3.3
n.a.
n.a.
3.4
-9.7
-1.6
-9.9
-.7
-5.1 r
.0
-7.7
1.6r
.7
-6.2 r
— 1.6r
3.1r
-4.3 r
-4.6
-16.1
13.1
i.r
-3.3
13.2
1.5r
-8.0
16.0
-8.4
-14.4
19.2
-18.9
-18.1
18.0
-15.0
-18.2
17.4
-15.6
-10.4
20.0
-21.7
-25.8
22.9
-23.7 rr
- 16.6
11.1
-14.4
-16.2
16.8
-14.2
-35.0
9.8
-24.2
-40.3
10.3r
-22.5
-36.5
22.8
-24.7
-29.9
13.0
-20.7
-31.6
14.5r
-21.1
-28.2
24.1
-24.5
-24.5
31.1
—31.6r
—35.4
24.3
-27.9
-44.1
7.6
28.8
-4.7
11.4
-4.0
37.2
.9
26.9
.7
38.5
3.3
38.0
-1.7
22.1
12.3
38.2
-18.8
-18.5
6.8
3.4
13.9
1.9
12.2
1.7
10.8
2.4
7.7
1.5
5.9
1.2
5.9
3.1
n.a.
n.a.
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with regulatory changes in reserve requirements. (See also table 1.20.)
3. 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 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 due to depository institutions,
the U.S. government, and foreign banks and official institutions, less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and
automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, (2) savings and small
time deposits (time deposits—including retail repurchase agreements (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
Dec.
3.0
8.9
3.4
4.2
components
12
13
14
Nov.
n.a.
n.a.
offices in the United Kingdom and Canada, and (3) balances in both taxable and
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding creditmarket debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial
sectors are monthly averages, derived by averaging adjacent month-end levels.
Growth rates for debt reflect adjustments for discontinuities over time in the levels
of debt presented in other tables.
5. Sum of (1) overnight RPs and Eurodollars, (2) money market fund balances
(general purpose and broker-dealer), (3) MMDAs, and (4) savings and 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 institution-only money market funds. This sum is
seasonally adjusted as a whole.
7. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRA and Keogh account balances at commercial banks and
thrift institutions are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market
funds, depository institutions, and foreign banks and official institutions.
Money Stock and Bank Credit
1.11
RESERVES OF DEPOSITORY INSTITUTIONS A N D RESERVE BANK CREDIT
A5
1
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1992
1992
Factor
Jan.
Feb.
Mar.
Feb. 12
Feb. 19
Feb. 26
Mar. 4
Mar. 11
Mar. 18
Mar. 25
SUPPLYING RESERVE F U N D S
1 Reserve Bank credit outstanding
U.S. government securities
2
Bought outright-system account
Held under repurchase agreements . . .
3
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
307,590
304,147
308,062
302,753
306,852
304,294
304,826
308,003
310,221
306,913
264,753
1,489
263,190
776
265,433
3,466
262,086
0
263,633
2,207
264,988
0
264,800
1,328
264,501
4,201
264,642
6,323
266,790
863
6,005
32
0
5,960
40
0
5,960
93
0
5,960
0
0
5,960
128
0
5,960
0
0
5,960
83
0
5,960
67
0
5,960
206
0
5,960
57
0
279
16
1
797
34,219
63
22
2
688
33,406
38
32
2
576
32,462
35
21
1
674
33,976
56
23
2
1,084
33,759
42
22
3
587
32,692
32
25
2
560
32,037
11
27
2
1,081
32,153
78
30
2
433
32,547
35
38
1
529
32,639
12 Gold stock
13 Special drawing rights certificate account .
14 Treasury currency outstanding
11,058
10,018
21,039
11,058
10,018
21,078r
11,058
10,018
21,120
11,058
10,018
21,070"
11,058
10,018
21,079"
11,058
10,018
21,089"
11,058
10,018
21,099
11,058
10,018
21,109
11,058
10,018
21,119
11,058
10,018
21,128
303,218
666
301,646r
689
302,799
711
301,375r
685
302,677'
691
302,013"
693
301,710
702
302,739
730
303,289
703
302,887
704
7,180
369
6,241
225
5,614
218
6,584
222
5,874
223
5,139
207
5,563
224
5,245
198
5,906
232
5,724
205
4,330
262
4,529
242
4,665
278
4,532
244
4,436
255
4,561
225
4,623
253
4,671
267
4,498
288
4,900
281
8,440
7,929
7,886
7,731
8,151
8,296
7,461
7,615
7,997
8,123
28,723
29,500
26,293
Mar. 18
Mar. 25
ABSORBING RESERVE F U N D S
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 3
25,240
24,799
28,086
23,525
26,701
25,325
26,463
End-of-month figures
Wednesday figures
1992
1992
Jan.
Feb.
Mar.
Feb. 12
Feb. 19
Feb. 26
Mar. 4
Mar. 11
306,524
303,8%
317,969
304,020
305,018
307,180
311,999
306,291
265,834
1,160
SUPPLYING RESERVE F U N D S
1 Reserve Bank credit outstanding
U.S. government securities2
Bought outright-system account . . .
Held under repurchase agreements
Federal agency obligations
Bought outright
Held under repurchase agreements
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Extended credit
10 Float
11 Other Federal Reserve assets
306,533
12 Gold stock
13 Special drawing rights certificate account
14 Treasury currency outstanding
303,555
262,619
3,529
265,423
0
265,796
1,805
262,670
0
264,161
9,469
264,912
0
264,677
2,016
263,576
4,291
265,244
6,856
5,960
135
0
5,960
0
0
5,960
0
0
5,960
0
0
5,960
522
0
5,960
0
0
5,960
111
0
5,960
102
0
5,960
294
0
5,960
100
0
88
21
3
198
33,980
35
25
2
290
31,821
23
29
0
512
32,400
31
22
2
1,113
34,098
55
22
2
4,837
32,942
34
24
2
303
32,785
20
23
2
251
31,960
14
29
2
831
32,375
420
36
3
422
32,765
23
45
1
346
32,823
11,058
10,018
21,060
11,058
10,018
21,099"
11,057
10,018
21,138
11,058
10,018
21,070r
11,058
10,018
21,079"
11,058
10,018
21,089"
11,058
10,018
21,099
11,058
10,018
21,109
11,058
10,018
21,119
11,058
10,018
21,128
299,879
684
301,374r
698
303,212
711
302,214r
691
302,997"
692
301,731"
698
302,239
734
303,353
703
303,272
703
302,932
711
10,828
321
5,477
264
6,846
262
5,834
224
6,407
209
5,103
207
6,313
248
4,466
188
4,533
258
4,631
172
4,556
251
4,623
231
4,610
364
4,532
250
4,436
208
4,561
256
4,623
279
4,671
270
4,498
299
4,900
305
ABSORBING RESERVE F U N D S
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 3
7,629
7,222
8,098
7,831
8,169
8,121
7,309
7,699
7,991
7,990
24,520
25,842
24,637
24,467
37,007
25,509
25,448
28,015
32,640
26,856
1. For amounts of cash held as reserves, see table 1.12. Components may not
sum to totals because of rounding.
2. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes any 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 • June 1992
1.12
RESERVES A N D BORROWINGS
Depository Institutions 1
Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification
1
?
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks
Total vault cash
Applied vault cash
Surplus vault cash
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks7 . . .
Total borrowings at Reserve Banks8
Seasonal borrowings
Extended credit 9
1992
1989
1990
1991
Dec.
Dec.
Dec.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
35,436
29,828
27,374
2,454
62,810
61,887
923
265
84
20
30,237
31,786
28,884
2,903
59,120
57,456
1,664
326
76
23
26,659
32,513
28,872
3,641
55,532
54,553
979
192
38
1
23,447
31,536
27,680
3,856
51,127
50,198
929
645
287
302
23,197
32,299
28,386
3,913
51,584
50,501
1,083
261
211
12
25,004
31,714
28,053
3,661
53,057
52,165
892
108
86
1
26,659
32,513
28,872
3,641
55,532
54,553
979
192
38
1
25,416r
34,135
30,396
3,739r
55,812
54,809
1,003
233
17
1
24,918 r
34,218
30,320
3,897r
55,238
54,174r
1,065
77
22
2
28,058
31,647
28,225
3,422
56,282
55,252
1,030
91
32
2
1991
Biweekly averages of daily figures for weeks ending
1992
1991
1 Reserve balances with Reserve Banks2
2 Total vault cash 3 ..
3 Applied vault cash ,
4 Surplus vault
cash
5 Total reserves 6
6 Required reserves
7 Excess reserve balances at Reserve Banks7 . . .
8 Total borrowings at Reserve Banks 8
9 Seasonal borrowings
10 Extended credit 9
Nov. 27
Dec. 11
Dec. 25
Jan. 8
Jan. 22
Feb. 5
Feb. 19
Mar. 4
Mar. 18
Apr. 1
24,155
32,656
28,825
3,832
52,979
52,045
934
103
84
2
26,839
31,093
27,607
3,486
54,446
53,842
605
110
45
1
26,133
33,284
29,554
3,730
55,687
54,484
1,203
116
41
1
27,557
33,318
29,601
3,717
57,158
56,020
1,138
521
22
1
26,147 r
33,156
29,732
3,424r
55,879
54,966
913
136
13
0
22,374r
36,384
32,137
4,248r
54,511
53,488
1,023
130
20
2
25,108 r
34,354
30,494
3,860r
55,602
54,435
1,168
69
22
2
25,922 r
32,944
29,169
3,775r
55,091
54,15l r
941r
63
24
3
29,111
30,564
27,398
3,166
56,509
56,001
508
75
29
2
27,580
32,414
28,825
3,589
56,404
54,785
1,620
117
38
1
1. Data in this table also appear in the Board's H.3 (502) weekly statistical
release. For ordering address, see inside front cover. Components may not sum to
totals because of rounding.
2. Excludes required clearing balances and adjustments to compensate for float
and includes other off-balance-sheet " a s - o f ' adjustments.
3. Total "lagged" vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash
can be used to satisfy reserve requirements. Under contemporaneous reserve
requirements, maintenance periods end thirty days after the lagged computation
periods during which the balances are held.
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. 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 there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
Money Stock and Bank Credit
1.13
SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE F U N D S
A7
Large Banks'
Millions of dollars, averages of daily figures
1992, week ending Monday
Source and maturity
1
2
3
4
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
Feb. 3
Feb. 10
Feb. 17
Feb. 24
Mar. 2
Mar. 9
Mar. 16
Mar. 23
Mar. 30
78,298
16,179
80,521
15,834
80,399
15,725
79,454
15,685
79,013
16,533
81,871
16,364
77,492
16,666
72,856
16,555
73,215
15,967
20,786
18,354
19,659
19,567
21,232
19,144
25,031
19,150
22,497
19,935
19,725
21,308
19,358
21,284
19,026
21,497
18,107
20,489
Repurchase agreements on U.S. government and federal
agency securities
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
14,808
14,302
15,391
14,679
14,360
15,956
14,926
14,528
13,733
15,230
13,735
15,525
12,281
17,124
12,199
17,656
12,219
17,192
25,315
12,004
25,583
11,848
26,110
12,166
26,749
12,139
26,789
11,883
25,438
11,662
25,201
12,272
25,668
12,391
26,017
12,896
MEMO: Federal funds loans and resale agreements in
immediately available funds in maturities of one day
or under continuing contract
9 To commercial banks in the United States
10 To all other specified customers
56,403
21,704
56,789
22,260
56,528
20,403
54,399
21,138
56,720
20,638
54,496
21,458
51,403
23,411
49,600
22,527
47,482
20,703
5
6
7
8
1. Banks with assets of $4 billion or more as of Dec. 31, 1988.
Data in this table also appear in the Board's H.5 (507) weekly statistical release.
For ordering address, see inside front cover.
2. Brokers and nonbank dealers in securities, other depository institutions,
foreign banks and official institutions, and U.S. government agencies.
A8
1.14
DomesticNonfinancialStatistics • June 1992
FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Seasonal credit2
Adjustment credit1
Federal Reserve
Bank
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
Extended credit3
On
5/1/92
Effective date
Previous rate
On
5/1/92
Effective date
Previous rate
On
5/1/92
Effective date
Previous rate
3.5
12/20/91
12/20/91
12/20/91
12/20/91
12/20/91
12/20/91
12/20/91
4.5
3.75
4/30/92
4/30/92
4/30/92
4/30/92
4/30/92
4/30/92
4/30/92
3.95
4.25
4/30/92
4/30/92
4/30/92
4/30/92
4/30/92
4/30/92
4/30/92
4.45
12/24/91
12/23/91
12/20/91
12/20/91
12/20/91
3.5
3.75
4.5
4/30/92
4/30/92
4/30/92
4/30/92
4/30/92
3.95
Range of rates for adjustment credit in recent years
Effective date
In effect Dec. 31, 1977.
Range (or
level)—
All F.R.
Banks
6
F.R.
Bank
of
N.Y.
6
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5
6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
10
10-10.5
10.5
10.5-11
11
11-12
12
10
10.5
10.5
11
11
12
12
1980—Feb. 15
19
May 29
30
June 13
16
29
July 28
Sept. 26
Nov. 17
Dec. 5
12-13
13
12-13
12
11-12
11
10
10-11
11
12
12-13
1978—Jan.
9
20
May 11
12
July
13
13
13
12
11
11
10
10
11
12
13
Effective
1981-—May
5
Nov.
7
6
4
Dec.
13-14
14
13-14
13
12
F.R.
Bank
of
N.Y.
14
14
13
13
12
70
73
7
3
16
77
30
Oct. 1?
13
Nov. 77
26
Dec. 14
15
17
11.5-12
11.5
11-11.5
11.5
11.5
10.5
10-10.5
10
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5
10.5
10
10
9.5
9.5
9
9
9
8.5
8.5
1984-—Apr.
—Apr.
9
n
Nov. 71
76
Dec. 74
8.5-9
9
8.5-9
8.5
9
8.5
8.5
1985-—May
—May 70
74
7.5-8
7.5
7.5
7.5
1982--July
-July
Aug.
1. Adjustment credit is 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. Seasonal credit is available to help relatively small depository institutions
meet regular seasonal needs for funds that arise from a clear pattern of intrayearly movements in their deposits and loans and that cannot be met through
special industry lenders. The discount rate on seasonal credit takes into account
rates on market sources of funds and ordinarily is reestablished on the first
business day of each two-week reserve maintenance period; however, it is never
less than the discount rate applicable to adjustment credit.
3. Extended credit may be made available to depository institutions when
similar assistance is not reasonably available from other sources, including special
industry lenders. Such credit may be provided when exceptional circumstances
(including sustained deposit drains, impaired access to money market funds, or
sudden deterioration in loan repayment performance) or practices involve only a
particular institution, or to meet the needs of institutions experiencing difficulties
adjusting to changing market conditions over a longer period (particularly at times
of deposit disintermediation). The discount rate applicable to adjustment credit
Range (or
level)—
All F.R.
Banks
11
11
11
4.25
4/30/92
4/30/92
4/30/92
4/30/92
4/30/92
4.45
4
Effective date
Range (or
level)—
All F.R.
Banks
1986—Mar. 7
10
Apr. 21
July 11
Aug. 21
22
7-7.5
7
6.5-7
6
5.5-6
5.5
7
7
6.5
6
5.5
5.5
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
6.5-7
7
7
7
27
1990—Dec. 19
1991—Feb.
1
4
Apr. 30
May 2
Sept. 13
Sept. 17
Nov. 6
7
Dec. 20
24
In effect May 1, 1992
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
3.5
3.5
ordinarily is charged on extended-credit loans outstanding less than thirty days;
however, at the discretion of the Federal Reserve Bank, this time period may be
shortened. Beyond this initial period, a flexible rate somewhat above rates on
market sources of funds is charged. The rate ordinarily is reestablished on the first
business day of each two-week reserve maintenance period, but it is never less
than the discount rate applicable to adjustment credit plus 50 basis points.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual
Statistical Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment-credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. A surcharge of 2 percent was reimposed on Nov. 17, 1980; the surcharge
was subsequently raised to 3 percent on Dec. 5, 1980, and to 4 percent on May 5,
1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981,. and to 2
percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the
surcharge was changed from a calendar quarter to a moving thirteen week period.
The surcharge was eliminated on Nov. 17, 1981.
Policy Instruments
1.15
A9
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Requirements
Type of deposit 2
Net transaction
Percent of
deposits
Effective date
3
10
12/17/91
4/2/91
0
12/27/90
0
12/27/90
accounts3
1. Required reserves must be held in the form of deposits with Federal Reserve
Banks or vault cash. Nonmember institutions may maintain reserve balances with
a Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions. For previous reserve requirements, see earlier editions of the Annual
Report or the Federal Reserve Bulletin. Under provisions of the Monetary
Control Act, depository institutions include commercial banks, mutual savings
banks, savings and loan associations, credit unions, agencies and branches of
foreign banks, and Edge corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 17, 1991, the exemption was raised from $3.4
million to $3.6 million. The exemption applies in the following order: (1) net
negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable
deductions); and (2) net other transaction accounts. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement.
3. Transaction accounts include all deposits against which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
three per month for the purpose of making payments to third persons or others.
However, money market deposit accounts (MMDAs) and similar accounts subject
to the rules that permit no more than six preauthorized, automatic, or other
transfers per month, of which no more than three may be checks, are not
transaction accounts (such accounts are savings deposits).
The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage change in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 17,
1991, for institutions reporting quarterly, and Dec. 24, 1991, for institutions
reporting weekly, the amount was increased from $41.1 million to $42.2 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on Apr.
2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions
that report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than 1 Vi years was reduced from 3
percent to l'/i 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 Vi 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 1V2 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 were the reserve
requirement on nonpersonal time deposits with an original maturity of less than
1 Vi years (see note 4).
A10
1.17
DomesticNonfinancialStatistics • June 1992
FEDERAL RESERVE OPEN MARKET TRANSACTIONS 1
Millions of dollars
1991
Type of transaction
1989
1990
1992
1991
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
U . S . TREASURY SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchanges
Redemptions
14,284
12,818
231,211
12,730
24,739
7,291
241,086
4,400
20,158
120
277,314
1,000
5,776
0
28,009
0
529
0
19,508
0
2,198
0
25,409
0
2,823
0
24,141
0
837
0
21,967
0
0
1,628
26,750
1,600
123
0
24,435
0
5
6
7
8
9
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
327
0
28,848
-25,783
500
425
0
25,638
-27,424
0
3,043
0
24,454
-28,090
1,000
340
0
3,425
-2,443
0
200
0
1,131
-2,202
0
0
0
2,002
-2,034
0
178
0
1,655
-2,585
0
0
0
1,570
-3,562
0
0
0
1,298
-989
0
0
0
6,020
-2,742
0
10
11
12
13
One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
1,436
490
-25,534
23,250
250
200
-21,770
25,410
6,583
0
-21,211
24,594
0
0
-3,425
1,993
650
0
-1,131
2,202
0
0
-1,877
1,686
2,133
0
-1,492
2,135
300
0
-1,570
3,562
0
0
-1,174
539
1,027
0
-6,020
2,292
14
15
16
17
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
287
29
-2,231
1,934
0
100
-2,186
789
1,280
0
-2,037
2,894
0
0
688
300
0
0
0
0
0
0
-126
347
880
0
-163
300
0
0
0
0
0
0
-124
451
0
0
0
300
18
19
20
21
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
284
0
-1,086
600
0
0
-1,681
1,226
375
0
-1,209
600
0
0
-688
150
0
0
0
0
0
0
0
0
375
0
0
150
0
0
0
0
0
0
0
0
0
0
0
150
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
16,617
13,337
13,230
25,414
7,591
4,400
31,439
120
1,000
6,116
0
0
1,379
0
0
2,198
0
0
6,390
0
0
1,137
0
0
0
1,628
1,600
1,150
0
0
1,323,480
1,326,542
1,369,052
1,363,434
1,570,456
1,571,534
112,414
110,280
116,266
118,481
137,073
135,281
98,063
97,925
118,127
118,263
136,922
136,282
123,000
124,654
129,518
132,688
219,632
202,551
310,084
311,752
16,847
16,847
40,447
40,447
12,432
3,718
14,165
22,879
51,345
36,000
21,412
33,228
9,824
13,353
-10,055
24,886
29,729
3,981
3,595
9,121
-2,462
16,619
-15,684
-725
0
0
442
0
0
183
0
5
292
0
0
0
0
5
0
0
0
14
0
0
51
0
0
45
0
0
85
0
0
0
Repurchase agreements2
33 Gross purchases
34 Gross sales
38,835
40,411
41,836
40,461
22,807
23,595
537
537
3,061
3,061
714
695
275
294
1,744
1,191
390
808
571
706
35 Net change in federal agency obligations
-2,018
1,192
-1,085
0
-5
5
-70
508
-503
-135
36 Total net change in System Open Market
Account
-12,073
26,078
28,644
3,981
3,590
9,126
-2,532
17,127
-16,186
-860
Matched transactions
25 Gross sales
26 Gross purchases
Repurchase agreements2
27 Gross purchases
28 Gross sales
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not sum to
totals because of rounding.
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
Federal Reserve Banks
1.18
FEDERAL RESERVE BANKS
All
Condition and Federal Reserve Note Statements 1
Millions of dollars
Account
Feb. 26
Mar. 4
Wednesday
End of Month
1992
1992
Mar. 11
Mar. 18
Mar. 25
Jan. 31
Feb. 28
Mar. 31
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency obligations
7 Bought outright
8 Held under repurchase agreements
9 Total U.S. Treasury securities
11,058
10,018
629
11,058
10,018
623
11,058
10,018
616
11,058
10,018
615
11,058
10,018
607
11,058
10,018
614
11,058
10,018
632
11,057
10,018
599
60
0
0
44
0
0
45
0
0
459
0
0
69
0
0
112
0
0
62
0
0
52
0
0
5,960
0
5,960
111
5,960
102
5,960
294
5,960
100
5,960
135
5,960
5,960
0
264,912
266,693
267,867
272,100
266,994
266,148
265,423
267,601
10 Bought outright2
11 Bills
12 Notes
13 Bonds
14 Held under repurchase agreements
264,912
130,033
102,835
32,043
0
264,677
129,798
102,835
32,043
2,016
263,576
128,697
102,835
32,043
4,291
265,244
129,741
103,460
32,043
6,856
265,834
129,531
104,260
32,043
1,160
262,619
128,767
101,520
32,332
3,529
265,423
130,544
102,835
32,043
0
265,796
129,492
104,260
32,043
1,805
15 Total loans and securities
270,932
272,808
273,973
278,813
273,123
272,354
271,444
273,613
4,979
998
6,440
1,000
5,656
1,001
5,419
1,007
4,835
1,007
5,034
994
5,155
1,001
8,172
1,007
27,067
4,860
26,002
5,003
26,042
5,335
26,164
5,643
26,218
5,659
26,928
6,130
25,999
5,041
26,060
5,444
330,541
332,952
333,699
338,737
332,524
333,129
330,347
335,971
281,969
282,498
283,564
283,472
283,121
280,117
281,605
283,383
22 Total deposits
35,947
37,318
37,674
42,325
36,956
40,595
36,659
36,952
23
24
25
26
30,381
5,103
207
256
30,478
6,313
248
279
32,751
4,466
188
270
37,235
4,533
258
299
31,847
4,631
172
305
29,195
10,828
321
252
30,688
5,477
264
231
29,480
6,846
262
364
4,505
2,369
5,827
2,224
4,762
2,228
4,949
2,311
4,458
2,235
4,788
2,558
4,860
2,317
7,538
2,226
324,790
327,866
328,228
333,057
326,769
328,058
325,441
330,099
2,732
2,647
372
2,734
2,342
9
2,737
2,522
211
2,739
2,573
368
2,742
2,604
408
2,683
2,383
6
2,734
2,171
0
2,745
2,598
529
33 Total liabilities and capital accounts
330,541
332,952
333,699
338,737
332,524
333,129
330,347
335,971
34 MEMO: Marketable U.S. Treasury securities held in
custody for foreign and international accounts
265,009
267,191
267,478
266,278
264,354
266,801
268,036
271,183
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies
19 All other 4
20 Total assets
LIABILITIES
21 Federal Reserve notes
Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
27 Deferred credit items
28 Other liabilities and accrued dividends5
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to Bank)
36 LESS: Held by Federal Reserve Bank
37 Federal Reserve notes, net
38
39
40
41
Collateral held against notes, net:
Gold certificate account
Special drawing rights certificate account
Other eligible assets
U.S. Treasury and agency securities
42 Total collateral
362,562
80,593
281,969
363,421
80,924
282,498
364,098
80,534
283,564
364,235
80,763
283,472
363,391
80,271
283,121
364,621
84,504
280,117
363,222
81,617
281,605
362,146
78,762
283,383
11,058
10,018
0
260,893
11,058
10,018
0
261,422
11,058
10,018
0
262,488
11,058
10,018
0
262,396
11,058
10,018
0
262,045
11,058
10,018
0
259,041
11,058
10,018
0
260,529
11,057
10,018
0
262,308
281,969
282,498
283,564
283,472
283,121
280,117
281,605
283,383
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. Components may
not sum to totals because of rounding.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—-and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within ninety days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
A12
1.19
DomesticNonfinancialStatistics • June 1992
FEDERAL RESERVE BANKS
Maturity Distribution of Loan and Security Holding 1
Millions of dollars
Type and maturity grouping
1 Total loans
2
3
4
Within fifteen days
Sixteen days to ninety days
Ninety-one days to one year
Wednesday
End of month
1992
1992
Feb. 26
Mar. 4
Mar. 11
Mar. 18
Mar. 25
Jan. 31
Feb. 28
Mar. 31
60
44
45
459
69
112
62
52
39
6
0
32
13
0
457
2
0
67
2
0
112
0
0
58
4
0
46
6
0
60
1
0
5 Total acceptances
0
0
0
0
0
0
0
0
6
7
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
264,912
266,693
267,867
272,100
266,994
262,619
265,423
265,7%
13,395
63,618
86,713
61,400
15,192
24,594
14,873
63,906
87,040
61,088
15,192
24,594
13,834
69,039
84,120
61,088
15,192
24,594
19,450
64,082
87,070
61,713
15,192
24,594
14,487
63,035
87,174
62,513
15,192
24,594
8,864
64,603
86,028
63,788
14,796
24,540
8,559
69,052
87,851
60,175
15,192
24,594
6,571
67,222
89,745
62,473
15,192
24,594
5,960
6,071
6,062
6,253
6,060
5,960
5,960
5,960
403
502
1,411
2,726
764
154
231
783
1,413
2,726
764
154
190
695
1,523
2,686
814
154
582
535
1,483
2,686
814
154
300
535
1,524
2,750
797
154
108
867
1,343
2,647
841
154
403
502
1,411
2,726
764
154
220
524
1,515
2,750
797
154
Within fifteen days
Sixteen days to ninety days
Ninety-one days to one year
9 Total U.S. Treasury securities
10
11
12
N
14
15
2
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
16 Total Federal agency obligations
17
18
19
20
21
22
Within fifteen days 2
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. Components may not sum to totals because of rounding.
fifteen
2. Holdings under repurchase agreements are classified as maturing within
days in accordance with the maximum possible maturity of the agreements.
Monetary and Credit Aggregates
1.20
A13
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY BASE'
Billions of dollars, averages of daily figures
1992
1991
Item
1988
Dec.
1989
Dec.
1991
Dec.
1990
Dec.
Aug.
Total reserves 3
Nonborrowed reserves 4
^
Nonborrowed reserves plus extended credit5
Required reserves
6
Monetary base
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
52.69
52.59
52.59
51.80
323.13
53.75
53.56
53.56
52.77
325.22
54.37
54.13
54.13
53.36
327.68
56.42
56.34
56.34
55.35
332.16
57.33
57.24
57.24
56.30
333.26
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
1
2
3
4
5
Sept.
47.60
45.88
47.12
46.55
263.77
47.73
47.46
47.48
46.81
274.57
49.10
48.78
48.80
47.44
300.35
53.75
53.56
53.56
52.77
325.22
50.89
50.12
50.42
49.80
316.68
51.15
50.50
50.80
50.22
318.50
51.82
51.56
51.57
50.73
320.93
Not seasonally adjusted
6
7
8
9
10
Total reserves
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves 8
Monetary base 9
49.00
47.29
48.53
47.96
267.46
49.18
48.91
48.93
48.26
278.30
50.58
50.25
50.28
48.91
304.04
55.38
55.18
55.19
54.40
329.35
50.49
49.73
50.03
49.41
316.68
50.99
50.35
50.65
50.07
317.28
51.43
51.17
51.18
50.35
319.14
52.89
52.78
52.78
51.99
323.06
55.38
55.18
55.19
54.40
329.35
55.79 55.17
55.56 55.10
55.56 55.10
54.79 54.11
328.75 328.59
56.17
56.08
56.08
55.14
331.07
63.75
62.03
63.27
62.70
283.00
1.05
1.72
62.81
62.54
62.56
61.89
292.55
.92
.27
59.12
58.79
58.82
57.46
313.70
1.66
.33
55.53
55.34
55.34
54.55
333.61
.98
.19
50.61
49.84
50.14
49.52
320.07
1.09
.76
51.13
50.48
50.78
50.20
320.70
.93
.65
51.58
51.32
51.33
50.50
322.71
1.08
.26
53.06
52.95
52.95
52.16
326.88
.89
.11
55.53
55.34
55.34
54.55
333.61
.98
.19
55.81 55.24
55.58 55.16
55.58 55.16
54.81 54.17
333.09 333.20
1.00
1.06r
.23
.08
56.28
56.19
56.19
55.25
335.84
1.03
.09
N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 1 0
11
12
13
14
15
16
17
Total reserves 11
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base 12 ,
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 and estimates of the impact on required
reserves of changes in reserve requirements are available from the Monetary and
Reserves Projections Section, Division of Monetary Affairs, Board of Governors
of the Federal Reserve System, Washington, D.C. 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with
regulatory changes in reserve requirements.
3. Seasonally adjusted, break-adjusted total reserves equal seasonally
adjusted, break-adjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally
adjusted, break-adjusted total reserves (line 1) less total borrowings of depository
institutions from the Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9)
plus excess reserves (line 16).
8. To adjust required reserves for discontinuities that are due to regulatory
changes in reserve requirements, a multiplicative procedure is used to estimate
what required reserves would have been in past periods had current reserve
requirements been in effect. Break-adjusted required reserves include required
reserves against transactions deposits and nonpersonal time and savings deposits
(but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves
(line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3)
(for all quarterly reporters on the "Report of Transaction Accounts, Other
Deposits and Vault Cash" and for all weekly reporters whose vault cash exceeds
their required reserves) the break-adjusted difference between current vault cash
and the amount applied to satisfy current reserve requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with changes in reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to
satisfy reserve requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted,
consists of (1) total reserves (line 11), plus (2) required clearing balances and
adjustments to compensate for float at Federal Reserve Banks, plus (3) the
currency component of the money stock, plus (4) (for all quarterly reporters on
the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current
reserve requirements. Since the introduction of changes in reserve requirements
(CRR), currency and vault cash figures have been measured over the computation
periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
A14
1.21
DomesticNonfinancialStatistics • June 1992
MONEY STOCK, LIQUID ASSETS, A N D DEBT MEASURES'
Billions of dollars, averages of daily figures
1992
1991
1988
Dec.
1989
Dec.
1990
Dec.
1991
Dec.
Dec.
Jan.
Feb.
Mar.
Seasonally adjusted
2
1
2
3
4
5
Measures
Ml
M2
M3
L
Debt
6
7
8
9
Ml components
Currency
Travelers checks 4
Demand deposits5
Other checkable deposits
786.9
3,071.1
3,923.1
4,677.9
9,312.6
794.1
3,227.3
4,059.8
4,891.7
10,059.6
826.1
3,339.0
4,114.6
4,966.6
10,749.9
898.2
3,439.4r
4,171.4r
4,988.5r
11,216.2
898.2
3,439.4r
4,171.4"
4,988.5r
11,216.2
910.3
3,448.2"
4,175.4"
4,983.9"
11,238.4"
930.8
3,475.1"
4,199.8"
5,015.8
11,273.9
938.6
3,473.2
4,188.1
n.a.
n.a.
212.3
7.5
286.5
280.6
222.6
7.4
279.0
285.1
246.8
8.3
277.1
293.9
267.3
8.2
289.5
333.2
267.3
8.2
289.5
333.2
269.4
8.2
293.8"
338.9
271.6
8.1
305.0"
346.0
271.9
8.0
309.6
349.1
2,284.2
852.0
2,433.2
832.5
2,512.9
775.6
2,541.2r
732.l r
2,541.2r
732. l r
2,537.9"
727.2"
2,544.4"
724.6"
2,534.6
714.9
Commercial banks
12 Savings deposits, including MMDAs
9
13 Small time deposits10
.
14 Large time deposits - "
542.7
447.0
366.9
541.4
531.0
398.2
581.9
606.4
374.0
664.9
598.5
354.0
664.9
598.5
354.0
676.0
587.7
346.4
688.9
576.1"
341.6"
695.3
569.2
337.0
Thrift institutions
15 Savings deposits, including MMDAs
16 Small time deposits 9
17 Large time deposits 10
383.5
585.9
174.3
349.7
617.5
161.1
338.8
562.3
120.9
377.8r
464.5
83.1
377.8r
464.5
83.1
385.4"
455.0
81.4
395.4"
443.0"
79.0
403.4
432.7
76.1
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
241.9
91.0
316.3
107.2
348.9
133.7
360.5
179.1
360.5
179.1
360.0
182.4
363.7
188.2
358.0
185.3
2,101.5
7,211.1
2,249.8
7,809.7
2,493.6
8,256.3
2,766.0
8,450.3
2,766.0
8,450.3
2,779.7
8,458.7"
2,793.4
8,480.5
n.a.
n.a.
916.6
3,462.4"
4,189.2"
5,009.1
11,244.4
930.3
3,473.8
4,193.2
n.a.
n.a.
267.8
7.8
300.0
342.4
269.5
7.8
296.3
342.9
271.1
7.7
302.0
349.5
2,545.8"
726.9"
2,543.5
719.4
Nontransaction
10 In M2j
11 In M3
components
Debt components
20 Federal debt
21 Nonfederal debt
Not seasonally adjusted
2
22
23
24
25
26
Measures
Ml
M2
M3
L
Debt
27
28
29
30
Ml components
Currency
Travelers checks 45
Demand deposits
Other checkable deposits
811.9
3,240.0
4,070.3
4,911.0
10,045.1
844.1
3,351.9
4,124.7
4,986.4
10,737.2
917.3
3,453.2r
4,182.1r
5,008.8r
11,203.6
917.3
3,453.2r
4,182.1r
5,008.8r
11,203.6
214.8
6.9
298.9
283.5
225.3
6.9
291.5
288.1
249.5
7.8
289.9
296.9
270.0
7.7
303.0r
336.5
270.0
7.7
303.0"
336.5
2,279.7
850.8
2,428.1
830.3
2,507.8
772.8
2,535.9"
728.9r
2,535.9"
728.9"
2,538.1"
724.4"
Commercial banks
33 Savings deposits, including MMDAs
34 Small time deposits 9 ..
35 Large time deposits •
543.8
446.0
365.9
543.0
529.5
397.1
580.0
606.3
373.0
662.4
598.7
352.8
662.4
598.7
352.8
672.3
589.5
344.0
685.2
577.6"
340.5"
696.8
569.4
337.5
Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits
38 Large time deposits
381.1
584.9
175.2
347.6
616.0
162.0
337.7
562.2
120.6
376.3
464.6
82.8
376.3
464.6
82.8
383.3"
456.4
80.8
393.3"
444.2"
78.8
404.3
432.9
76.2
Money market mutual funds
39 General purpose and broker-dealer
40 Institution-only
240.8
91.4
314.6
107.8
346.8
134.4
358.1
180.3
358.1
180.3
359.5
188.1
368.8
196.9
366.9
191.4
Repurchase agreements and eurodollars
41 Overnight
42 Term
83.2
227.4
77.5
178.5
74.7
158.3
75.7
128.6r
75.7
128.6"
77.1"
126.9"
76.7"
128.0"
73.1
130.2
2,098.9
7,199.0
2,247.5
7,797.7
2,491.3
8,245.8
2,764.9
8,438.7
Nontransaction
31 In M2
32 In M38
804.1
3,083.8
3,934.7
4,694.9"
9,298.0
918.0"
3,456.2"
4,180.5"
5,002.0"
11,226.3"
components
Debt components
43 Federal debt
44 Nonfederal debt
For notes see following page.
2,764.9
8,438.7
2,782.0
8,444.3"
2,798.2
8,446.3
n.a.
n.a.
Monetary and Credit Aggregates
A15
N O T E S T O T A B L E 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
weekly statistical release. Historical data are available from the Money and
Reserves Projection Section, Division of Monetary Affairs, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the 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 due to depository institutions,
the U.S. government, and foreign banks and official institutions, less cash items in
the process of collection and Federal Reserve float; and (4), other checkable
deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and
automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, (2) money market
deposit accounts (MMDAs), (3) savings and small time deposits (time deposits—
including retail RPs—in amounts of less than $100,000), and (4) balances in both
taxable and tax-exempt general purpose and broker-dealer money market funds.
Excludes individual retirement accounts (IRAs) and Keogh balances at depository
institutions and money market funds. Also excludes all balances held by U.S.
commercial banks, money market funds (general purpose and broker-dealer),
foreign governments and commercial banks, and the U.S. government. Seasonally adjusted M2 is computed by adjusting its non-Mi component as a whole and
then adding this result to seasonally adjusted Ml.
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) term Eurodollars held
by U.S. residents at foreign branches of U.S. banks worldwide and at all banking
offices in the United Kingdom and Canada, and (3) balances in both taxable and
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Debt data are based on monthly
averages. This sum is seasonally adjusted as a whole.
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those due 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) MMDAs, and (4) savings and
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 a consolidation adjustment that represents the estimated amount of overnight RPs and
Eurodollars held by institution-only money market funds.
9. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRAs and Keogh accounts at commercial banks and thrift
institutions are subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market
funds, depository institutions, and foreign banks and official institutions.
A16
1.22
DomesticNonfinancialStatistics • June 1992
BANK DEBITS A N D DEPOSIT TURNOVER'
Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates
1991
1992
Bank group, or type of customer
Aug.
4 ATS-NOW accounts 4
5 Savings deposits
Oct.
Nov.
Dec. r
Jan.
Seasonally adjusted
DEBITS TO
Demand deposits3
1 All insured banks
2 Major New York City banks
3 Other banks
Sept.
256,150.4
129,319.9
126,830.5
277,916.3
131,784.0
146,132.3
281,413.9
141,264.0
140,144.6
273,918.3r
136,947.7r
136,970.6r
281,469.0r
142,143.2r
139,325.8r
287,974.5r
144,228.7r
143,745.8r
278,234.2r
140,769.6r
137,464.6r
298,306.9
153,868.0
144,438.8
321,402.9
176,795.2
144,607.7
2,910.5
547.5
3,349.6
558.8
3,628.1
1,376.1
3,659.4
516.7
3,679.1
2,904.0
3,759.9
2,733.0
3,553.7
3,233.1
3,828.6
3,279.7
3,771.5
3,092.5
735.1
3,421.5
408.3
800.6
3,804.1
467.7
818.4
4,403.3
449.6
792.2r
4,460.8r
434.9r
817.9r
4,498.2r
445.9r
837.1r
4,607.9r
459.6r
787.3r
4,214.7r
429.6r
851.7
4,793.4
453.9
912.2
5,507.6
452.1
15.2
3.0
16.5
2.9
16.1
3.3
15.9
2.3
15.7
4.7
15.9
4.4
14.8
5.0
15.8
5.0
15.3
4.7
DEPOSIT TURNOVER
Demand deposits3
6 All insured banks
7 Major New York City banks
8 Other banks
9 ATS-NOW accounts 4
10 Savings deposits
Not seasonally adjusted
DEBITS TO
Demand deposits3
11 All insured banks
12 Major New York City banks
13 Other banks
14 ATS-NOW accounts 4
15 MMDAs6
16 Savings deposits
256,133.2
129,400.1
126,733.0
277,400.0
131,784.7
145,615.3
281,296.1
140,936.4
140,359.7
286,956.8r
146,342.8
140,614.0r
271,983.5r
137,659.5
134,324.0r
296,037.8r
149,704.6
146,333.2r
267,995.2r
136,592.8
131,402.4r
306,122.5
157,942.7
148,179.8
321,595.7
173,821.1
147,774.6
2,910.7
2,677.1
546.9
3,342.2
2,923.8
557.9
3,625.9
n.a
1,406.9
3,693.2
2,751.7
537.0
3,679.4
n.a
3,110.7
3,770.6
n.a
3,132.6
3,314.0
n.a
2,939.5
3,883.7
n.a
3,314.5
4,188.0
n.a
3,367.8
735.4
3,426.2
408.0
799.6
3,810.0
466.3
818.3
4,380.9
450.6
843.2r
4,771.4
454.2r
790.2r
4,305.8
430.2r
858.6r
4,775.5
466.8r
751.7r
4,059.4 r
406.9
833.4
4,591.4
445.1
892.8
5,067.7
453.6
15.2
7.9
2.9
16.4
8.0
2.9
16.1
n.a
3.4
16.3
6.8
2.4
15.9
n.a
4.9
16.2
n.a
4.9
13.9
n.a
4.5
15.8
n.a
5.1
16.6
n.a
5.1
DEPOSIT TURNOVER
Demand deposits3
17 All insured banks
18 Major New York City banks
19 Other banks
20 ATS-NOW
accounts 4
21 MMDAs6
22 Savings deposits
1. Historical tables containing revised data for earlier periods can be obtained
from the Banking and Money Market Statistics Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
Data in this table also appear on the Board's G.6 (406) monthly statistical
release. For ordering address, see inside front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOWs) and
accounts authorized for automatic transfer to demand deposits (ATSs).
5. Excludes ATS and NOW accounts.
6. Money market deposit accounts.
Commercial Banking Institutions
1.23
LOANS A N D SECURITIES
A17
All Commercial Banks 1
Billions of dollars, averages of Wednesday figures
1992
1991
Item
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Seasonally adjusted
1 Total loans and securities2
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
5 Commercial and industrial . . . . .
Bankers acceptances held . . .
6
Other commercial and
7
industrial
8
U.S. addressees 4 .
9
Non-U.S. addressees
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15 State and political
subdivisions
16 Foreign banks
17 Foreign official institutions
18 Lease-financing receivables . . . .
19 All other loans
2,763.9
2,765.7
2,774.6
2,776.4
2,778.3
2,789.4
2,805.1
2,821.6
2,836.0
2,843.5
2,844.6
2,851.8
478.2
177.5
2,108.3
635.1
8.7
484.1
176.9
2,104.8
630.6
8.2
493.9
176.2
2,104.6
626.0
7.7
503.7
175.3
2,097.4
623.6
7.5
513.2
174.0
2,091.1
619.4
7.8
523.4
175.8
2,090.2
622.0
7.4
538.4
177.1
2,089.6
622.6
7.0
550.5
177.6
2,093.4
621.0
7.6
562.5
178.5
2,095.0
617.6
7.9
564.2
179.0
2,100.2
614.5
7.3
568.7
179.1
2,096.7
608.9
7.6
576.8
176.6
2,098.4
606.4
7.6
626.5
620.6
5.8
861.5
374.3
48.5
622.4
616.6
5.9
863.8
373.6
49.1
618.3
612.6
5.7
868.6
372.9
49.0
616.1
610.3
5.7
867.7
371.0
47.4
611.6
605.7
5.9
866.9
370.3
48.4
614.6
608.5
6.1
867.9
367.2
5o. r
615.6
608.9
6.6r
869.0
364.4
51.2
613.4
606.8
6.6
870.6
363.2
53.6
609.7
602.9
6.8
871.1
363.9
54.6
607.2
601.1
6.1
870.7
363.9
59.3r
601.3
595.0
6.2r
875.4r
364.2
56.9
598.8
592.4
6.4
877.0
362.9
60.4
36.0
33.6
36.5
33.7
39.3
33.9
38.8
34.0
37.7
34.2
37.6
34.3
38.1
34.1
39.2
33.9
40.6
34.1
40.3
33.7
42.1
33.7
42.6
34.3
32.3
7.1
2.5
33.1
44.2
31.7
6.6
2.4
33.0
43.6
31.3
6.5
2.5
33,2
41.5
30.9
6.6
2.4
32.4
42.8
30.5
6.6
2.3
31.7
43.1
30.1
6.9
2.3
31.7
40.2
29.7
6.6
2.4
31.5
40.0
29.4
6.8
2.6
31.3
41.8
29.2
7.2
2.5
31.4
42.9
28.3
7.1
2.4
31.3
48.8r
28.4
6.6
2.3
31.3
46.9
28.4
6.4
2.2
31.4
46.4
Not seasonally adjusted
20 Total loans and securities2
2,762.7
2,761.6
2,775.7
2,769.6
2,775.4
2,789.5
2,807.8
2,826.9
2,842.4
2,840.3
2,847.2
2,852.6
21 U.S. government securities
Other securities
23 Total loans and leases 2
24 Commercial and industrial . . . . .
25
Bankers acceptances held 3 ...
Other commercial and
26
industrial
77
U.S. addressees 4
Non-U.S. addressees
28
79 Real estate
30 Individual
31 Security
32 Nonbank financial
institutions
33 Agricultural
34 State and political
subdivisions
35 Foreign banks
36 Foreign official institutions
37 Lease-financing receivables
38 All other loans
479.9
177.0
2,105.7
638.3
8.4
484.0
176.5
2,101.0
633.4
8.2
493.1
176.2
2,106.5
628.0
7.7
501.5
174.3
2,093.8
623.5
7.2
511.7
174.2
2,089.5
617.6
7.6
521.9
175.8
2,091.8
619.1
7.4
537.3
177.4
2,093.1
621.1
7.0
551.5
177.9
2,097.6
619.7
7.9
558.5
178.7
2,105.2
618.9
8.2
563.8
179.5
2,096.9
611.4
7.4
572.7
179.2
2,095.3r
608.1
7.8
582.2
176.8
2,093.7
609.1
7.6
629.9
623.8
6.0
860.2
371.6
49.8
625.2
619.3
5.9
864.4
371.9
46.7
620.3
614.3
6.0
868.9
370.7
49.1
616.3
610.5
5.7
868.8
368.3
46.3
609.9
604.1
5.8
868.8
369.3
47.3
611.8
605.8
6.0
868.8
368.7
48.7
614.1
607.9
6.2
870.3
365.3
50.9
611.9
605.7
6.1
872.0
364.7
53.6
610.7
604.3
6.4
871.3
368.6
55.2
604.0
597.5
6.5
870.1
368.1
58.9r
600.3r
593.7
6.7
872.5
364.2
61.5
601.5
594.9
6.5
873.6
360.4
62.1
35.5
32.7
36.1
33.3
39.6
34.2
39.0
34.7
37.8
35.1
37.2
35.3
37.8
35.0
39.5
34.2
41.9
34.1
40.8
33.3
41.8
32.8
42.0
33.0
32.2
6.9
2.5
33.1
42.8
31.7
6.4
2.4
33.0
41.6
31.3
6.3
2.5
32.9
43.0
30.7
6.5
2.4
32.1
41.6
30.4
6.5
2.3
31.6
42.9
30.1
6.9
2.3
31.6
43.2
29.7
6.8
2.4
31.6
42.2
29.4
7.1
2.6
31.4
43.3
29.1
7.7
2.5
31.4
44.6
28.6
6.9
2.4
31.6
44.9r
28.5
6.5
2.3
31.5
45.7
28.4
6.3
2.2
31.5
45.2
V
1. Data have been revised to reflect new seasonal adjustment factors and
benchmarking to Call reports. Historical data may be obtained from the Banking
and Money Market Statistics Section, Division of Monetary Affairs, Board of
Governors of the Federal Reserve System, Washington, DC 20551.
Components may not sum to totals because of rounding.
2. Adjusted to exclude loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the fifty states and the District of Columbia.
A18
1.24
DomesticNonfinancialStatistics • June 1992
MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Billions of dollars, monthly averages
1991r
1992
Source of funds
Seasonally adjusted
1 Total nondeposit funds
2 Net balances due to related foreign offices
3 Borrowings from other than commercial banks
in United States
4 Domestically chartered banks
5 Foreign-related banks
Not seasonally adjusted
6 Total nondeposit funds
7 Net balances due to related foreign offices
8 Domestically chartered banks
9 Foreign-related banks
10 Borrowings from other than commercial banks
in United States 4
11 Domestically chartered banks
12
Federal funds and security RP
borrowings
13
Other
14 Foreign-related banks 6
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan. r
Feb/
Mar.
265.7
27.8
260.8
23.6
250.4
17.0
248.5
18.1
246.8
18.2
249.1
20.3
263.1
31.1
264.0
33.0
275.4
39.0
279.3
43.7
283.6
42.6
284.7
45.8
237.9
170.8
67.1
237.2
167.7
69.5
233.4
164.4
69.0
230.4
160.7
69.7
228.6
156.5
72.1
228.9
155.2
73.7
232.1
153.7
78.3
231.0
149.6
81.4
236.4
151.4
85.0
235.6
153.8
81.8
241.0
156.7
84.3
238.9
152.6
86.3
263.1
26.5
-3.3
29.8
267.0
26.2
-.3
26.5
251.4
16.5
-3.7
20.2
244.7
14.8
-7.3
22.1
243.5
16.3
-7.2
23.6
246.5
19.4
-8.8
28.3
264.4
30.7
-7.2
37.8
268.3
33.9
-4.4
38.3
273.7
42.6
-3.8
46.3
275.3
44.3
-4.9
49.2
284.2
42.8
-1.0
43.8
288.5
46.2
-1.2
47.5
236.6
168.9
240.9
170.9
234.9
164.6
229.8
158.9
227.2
154.8
227.1
154.1
233.7
154.5
234.4
153.9
231.2
150.1
230.9
149.5
241.4
157.2
242.3
155.7
166.1
2.9
67.7
168.1
2.8
70.0
161.7
2.8
70.4
155.7
3.2
70.9
151.1
3.7
72.4
150.6
3.5
72.9
151.3
3.2
79.2
150.7
3.2
80.5
146.9
3.1
81.1
146.1
3.4
81.4
153.7
3.5
84.3
152.4
3.3
86.7
441.5
440.2
442.5
443.7
441.5
442.8
437.5
437.1
438.2
440.0
436.0
437.5
429.5
429.7
426.1
425.8
423.9
422.6
416.0
413.6
413.6
412.5
406.7
407.2
22.8
20.4
15.8
19.9
24.1
23.6
22.8
20.7
25.3
17.2
23.8
26.9
29.2
28.7
34.2
28.5
26.4
25.4
27.8
33.1
19.5
25.2
21.8
20.1
MEMO
Gross large time deposits
15 Seasonally adjusted
16 Not seasonally adjusted
U.S. Treasury demand balances at commercial
banks8
17 Seasonally adjusted
18 Not seasonally adjusted
1. Commercial banks are nationally and state-chartered banks in the fifty states
and the District of Columbia, agencies and branches of foreign banks, New York
investment companies majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks.
Data in this table also appear in the Board's G.10 (411) release. For ordering
address, see inside front cover.
Data have been revised to reflect new seasonal adjustment factors and benchmarking to Call reports. Historical data may be obtained from the Banking and
Money Market Statistics Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve System, Washington, DC 20551.
2. Includes federal funds, repurchase agreements (RPs), and other borrowing
from nonbanks and net balances due to related foreign offices.
3. Reflects net positions of U.S. chartered banks, Edge act corporations, and
U.S. branches and agencies of foreign banks with related foreign offices plus net
positions with own International Banking Facilities (IBFs).
4. Borrowings through any instrument, such as a promissory note or due bill,
given for the purpose of borrowing money for the banking business. This includes
borrowings from Federal Reserve Banks and from foreign banks, term federal
funds, loan RPs, and sales of participations in pooled loans.
5. Figures are based on averages of daily data reported weekly by approximately 120 large banks and quarterly or annual data reported by other banks.
6. Figures are partly averages of daily data and partly averages of Wednesday
data.
7. Time deposits in denominations of $100,000 or more. Estimated averages of
daily data.
8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at commercial banks. Averages of daily data.
Commercial Banking Institutions
1.25
ASSETS A N D LIABILITIES OF COMMERCIAL BANKS
A19
Last-Wednesday-of-Month Series 1
Billions of dollars
1992
1991
Account
Dec.
Jan.
Feb.
Mar.
May
June
July
Aug.
Sept.
Oct.
Nov.
3,413.3
3,416.8
3,443.6
3,403.4
3,433.3
3,470.1
3,508.4
3,536.0
3,496.1
3,493.7
3,491.9
3,011.3
704.8
539.6
165.2
38.1
2,268.4
176.0
2,092.4
608.7
870.7
367.5
245.5
3,011.2
711.4
547.3
164.1
37.6
2,262.2
171.3
2,091.0
607.8
871.5
363.1
248.6
3,015.4
720.0
557.3
162.7
39.1
2,256.3
166.3
2,090.0
607.9
872.5
360.3
249.3
ALL COMMERCIAL BANKING
INSTITUTIONS 2
1
Total assets
? Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other
3
4
5
6
7
8
9
10
11
1?
13
14
15
16
17
18
19
Total cash assets
Reserves with Federal Reserve Banks ..
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets
20
Other assets
21
ToUl liabilities
?? Total deposits
Transaction accounts
Savings deposits (excluding
checkable)
75
Time deposits
7 6 Borrowings
77 Other liabilities
28 Residual (assets less liabilities)
23
24
2,929.7
633.2
468.4
164.8
26.9
2,269.6
167.9
2,101.7
632.0
865.7
370.9
233.2
2,941.0
640.6
477.5
163.1
30.1
2,270.3
161.4
2,108.8
627.6
868.8
370.7
241.8
2,947.9
650.5
488.2
162.3
33.4
2,264.0
169.2
2,094.8
622.2
867.8
369.5
235.4
2,933.7
654.0
492.1
161.9
31.3
2,248.4
161.3
2,087.1
616.5
868.2
369.3
233.1
2,953.1
663.5
500.6
162.9
32.4
2,257.3
163.8
2,093.5
619.0
867.9
368.7
237.8
2,980.6
686.3
522.3
164.0
34.9
2,259.4
168.4
2,091.0
618.5
871.5
365.5
235.5
3,001.8
695.9
530.6
165.2
36.0
2,270.0
171.4
2,098.6
620.3
871.4
363.8
243.1
3,022.0
704.9
538.5
166.4
33.2
2,283.9
172.4
2,111.5
620.4
871.3
370.2
249.7
219.8
26.7
31.1
87.2
210.8
29.3
29.8
78.2
212.9
24.3
29.7
88.0
197.5
22.6
31.0
71.9
204.0
26.1
30.2
75.5
206.8
25.9
30.7
75.3
225.3
24.7
29.6
90.5
230.6
29.2
30.7
87.5
203.2
23.7
31.1
72.8
206.1
27.4
30.7
73.4
205.0
28.5
29.8
71.4
31.0
43.8
29.1
44.3
27.3
43.6
27.6
44.4
27.2
44.9
29.3
45.5
32.8
47.7
33.3
49.9
28.2
47.4
28.9
45.6
28.2
47.1
271.6
263.8
265.0
282.8
272.2
276.2
282.8
281.3
283.4
281.7
276.3
3,086.0
3,087.2
3,107.0
3,059.2
3,086.1
3,132.1
3,171.3
3,195.9
3,145.8
3,142.3
n.a.
2,322.2
617.7
2,312.3
611.4
2,350.3
639.8
2,327.1
612.4
2,325.7
614.3
2,345.7
628.7
2,388.4
670.4
2,392.1
682.9
2,339.3
643.9
2,346.5
652.5
2,353.9
663.6
608.7
1,095.7
489.8
274.0
327.3
613.4
1,087.5
500.4
274.5
329.6
623.1
1,087.4
489.0
267.7
336.5
627.4
1,087.2
466.7
265.4
344.2
631.3
1,080.0
483.8
276.6
347.2
643.0
1,074.0
501.3
285.1
338.0
650.7
1,067.3
487.3
295.6
337.0
656.1
1,053.1
499.5
304.3
340.2
667.7
1,027.8
507.2
299.3
350.2
680.2
1,013.8
503.5
292.3
351.4
691.1
999.2
495.4
290.7
352.0
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 4
29
Total assets
3,002.4
3,003.5
3,021.4
2,985.4
3,000.9
3,025.1
3,052.3
3,068.7
3,032.2
3,029.6
3,033.4
30
31
37
33
34
35
36
37
38
39
40
41
47
43
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Revolving home equity
Other real estate
2,647.8
594.7
447.7
147.0
26.9
2,026.2
141.0
1,885.2
494.4
814.3
65.3
749.0
370.9
205.7
2,655.3
602.1
456.9
145.1
30.1
2,023.1
136.8
1,886.3
490.0
816.8
66.0
750.8
370.7
208.9
2,665.1
611.3
467.2
144.1
33.4
2,020.5
146.5
1,874.1
482.5
815.1
66.6
748.4
369.5
207.0
2,650.3
613.0
470.0
143.0
31.3
2,005.9
141.5
1,864.4
475.6
814.9
67.3
747.6
369.3
204.6
2,659.4
621.1
477.2
143.8
32.4
2,006.0
142.8
1,863.2
472.9
814.3
68.1
746.2
368.7
207.4
2,673.8
638.2
493.4
144.8
34.9
2,000.6
144.5
1,856.2
471.0
817.1
68.9
748.2
365.5
202.6
2,687.9
644.9
499.4
145.4
36.0
2,007.1
150.7
1,856.4
468.3
816.8
69.2
747.6
363.8
207.5
2,694.7
651.0
505.6
145.4
33.2
2,010.5
150.5
1,860.1
463.4
816.3
69.9
746.4
370.2
210.2
2,688.2
652.3
508.5
143.8
38.1
1,997.8
156.3
1,841.5
454.9
815.7
71.0
744.8
367.5
203.4
2,688.0
660.3
517.8
142.5
37.6
1,990.0
150.7
1,839.3
454.5
816.0
70.6
745.4
363.1
205.8
2,697.7
668.5
527.5
141.0
39.1
1,990.1
148.7
1,841.4
454.6
817.2
70.6
746.6
360.2
209.4
44
45
46
47
48
194.2
25.8
31.1
85.6
185.2
28.2
29.8
76.2
187.7
23.9
29.7
86.3
171.5
22.1
31.0
70.3
176.5
24.9
30.1
74.0
179.1
25.1
30.7
73.6
197.6
24.0
29.6
88.3
201.7
28.5
30.7
85.4
176.3
23.3
31.1
71.0
179.7
26.8
30.7
71.7
177.6
28.0
29.7
68.9
49
Total cash assets
Reserves with Federal Reserve Banks.
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets
29.1
22.7
27.3
23.6
25.6
22.3
25.7
22.3
25.2
22.3
27.4
22.4
30.7
25.0
31.1
25.9
26.2
24.7
27.1
23.4
26.8
24.1
50
Other assets
160.4
163.0
168.5
163.6
165.0
172.2
166.8
172.3
167.7
161.9
2,753.4
2,767.4
2,794.1
2,821.0
2,836.2
2,796.1
2,792.6
n.a.
All other
158.1
51
Total liabilities
2,775.1
2,776.2
2,792.2
57
53
54
Deposits
Transaction accounts
Savings deposits (excluding
checkable)
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)3
2,285.6
608.3
2,275.7
601.7
2,313.5
630.4
2,289.3
603.1
2,286.9
605.3
2,301.2
619.4
2,340.9
660.4
2,342.5
672.6
2,292.0
634.1
2,301.3
643.2
2,307.8
653.7
605.1
1,072.2
357.6
131.9
227.3
609.7
1,064.3
369.8
130.7
227.2
619.3
1,063.8
352.7
126.0
229.2
623.7
1,062.6
339.1
125.0
232.0
627.5
1,054.1
354.6
125.9
233.5
639.2
1,042.6
362.1
130.8
230.9
646.8
1,033.7
346.8
133.3
231.3
652.1
1,017.8
356.8
136.9
232.4
663.6
994.3
367.9
136.2
236.1
676.1
982.0
360.8
130.5
236.9
687.0
967.1
355.9
131.9
237.7
55
56
57
58
1. Data have been revised to reflect benchmarking to quarterly Call reports.
Back data are available from the Banking and Monetary Statistics Section, Board
of Governors of the Federal Reserve System, Washington, D.C., 20551. Data in
this table also appear in the Board's H.8 (510) weekly statistical release.
Data are partly estimated. They include all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries. Components may not sum
to totals because of rounding.
2. Includes insured domestically chartered commercial banks, agencies and
branches of foreign banks, Edge act and agreement corporations, and New York
State foreign investment corporations. Data are estimates for the last Wednesday
of the month based on a sample of weekly-reporting foreign-related institutions
and quarter-end condition reports.
3. This balancing item is not intended as a measure of equity capital for use in
capital adequacy analysis.
4. Includes all member banks and insured nonmember banks. Loans and
securities data are estimates for the last Wednesday of the month based on a
sample of weekly-reporting banks and quarter-end condition reports.
A20
1.26
DomesticNonfinancialStatistics • June 1992
ASSETS A N D LIABILITIES OF LARGE WEEKLY-REPORTING COMMERCIAL BANKS 1
Millions of dollars, Wednesday figures
1992
Account
Jan. 29"
Feb. 5r
Feb. 12"
Feb. 19"
Feb. 26"
Mar. 4
Mar. 11
Mar. 18
Mar. 25
ASSETS
1 Cash and balances due from depository institutions
2 U.S. Treasury and government securities
3 Trading account
4 Investment account
5
Mortgage-backed securities2
All others, by maturity
6
One year or less
7
One year through five years
8
More than five years
9 Other securities
10 Trading account
11 Investment account
12
State and political subdivisions, by maturity
13
One year or less
14
More than one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
17 Federal funds sold3
18 To commercial banks in the United States
19 To nonbank brokers and dealers
20 To others
21 Other loans and leases, gross
22 Commercial and industrial
23
Bankers acceptances and commercial paper
24
All other
25
U.S. addressees
26
Non-U.S. addressees
27 Real estate loans
28
Revolving, home equity
29
All other
30 To individuals for personal expenditures
31 To financial institutions
32
Commercial banks in the United States
33
Banks in foreign countries
34
Nonbank financial institutions
35 For purchasing and carrying securities
36 To finance agricultural production
37 To states and political subdivisions
38 To foreign governments and official institutions
39 All other loans
40 Lease-financing receivables
41 LESS: Unearned income
42
Loan and lease reserve 6
43 Other loans and leases, net
44 Other assets
45 Total assets
Footnotes appear on the following page.
104,647
228,752
20,659
208,093
78,603
103,562
236,427
22,681
213,745
80,075
103,753
235,114
22,485
212,628
80,398
127,323
235,668
23,319
212,349
79,361
105,954
233,915
21,861
212,055
79,643
111,597
239,442
22,213
217,229
81,363
106,475
239,261
20,824
218,437
81,187
107,885
238,298
21,764
216,534
80,522
104,112
239,269
23,306
215,962
80,700
24,731
57,940
46,819
55,464
1,614
53,850
22,580
3,231
19,349
31,269
13,178
24,123
61,566
47,981
55,415
1,214
54,200
22,377
3,239
19,137
31,823
13,560
23,086
61,471
47,674
54,745
1,155
53,589
22,323
3,233
19,091
31,266
13,398
23,864
61,377
47,747
54,414
1,094
53,319
22,291
3,325
18,966
31,028
13,895
23,647
61,793
46,972
54,432
1,147
53,285
22,306
3,331
18,975
30,978
12,532
24,497
63,212
48,157
54,678
1,256
53,421
22,155
3,325
18,830
31,266
12,456
25,423
63,621
48,205
54,243
1,188
53,055
22,152
3,361
18,790
30,904
12,346
25,725
62,899
47,388
53,739
1,286
52,453
22,116
3,338
18,779
30,337
12,281
26,089
62,741
46,432
54,256
1,690
52,566
22,064
3,322
18,742
30,502
11,804
95,174
66,533
22,804
5,837
1,008,012
288,483
1,584
286,899
285,399
1,500
105,909
71,849
26,966
7,094
1,011,899
290,399
1,669
288,730
287,197
1,533
99,220
67,665
25,051
6,503
1,007,027
287,870
1,586
286,284
284,841
1,443
102,611
71,092
25,699
5,820
1,006,939
289,256
1,820
287,436
285,838
1,597
93,564
61,418
26,219
5,927
1,001,530
288,727
1,771
286,956
285,404
1,551
106,866
69,704
30,993
6,168
1,005,490
290,562
1,761
288,801
287,414
1,387
94,426
60,048
27,606
6,772
1,002,846
289,038
1,764
287,274
285,996
1,278
98,102
63,756
28,587
5,759
1,002,613
289,678
1,638
288,040
286,744
1,297
93,869
60,083
28,536
5,250
1,001,859
289,028
1,501
287,527
286,192
1,335
402,283
41,688
360,595
186,781
45,521
21,565
1,934
22,022
14,126
5,850
17,344
898
20,898
25,826
3,275
37,133
967,603
154,890
403,469
41,635
361,835
185,874
46,628
21,458
2,348
22,822
14,282
5,825
17,260
957
21,399
25,805
3,223
37,840
970,836
157,281
404,307
41,604
362,703
185,740
44,720
20,375
1,732
22,614
14,025
5,867
17,241
896
20,622
25,739
3,215
38,023
965,790
156,474
402,036
41,563
360,472
184,695
44,615
20,709
1,593
22,313
13,777
5,872
17,322
985
22,590
25,792
3,213
37,992
965,734
153,307
400,707
41,510
359,198
184,210
43,733
20,305
1,596
21,832
13,387
5,774
17,221
885
21,102
25,784
3,195
37,885
960,451
149,516
401,807
41,432
360,376
182,971
43,940
19,099
1,819
23,021
14,975
5,805
17,193
855
21,611
25,770
3,120
38,551
963,819
153,463
402,972
41,361
361,611
182,318
44,178
19,849
1,490
22,839
13,226
5,804
17,116
861
21,578
25,755
3,094
38,587
961,166
151,623
401,716
41,330
360,386
182,248
44,495
20,192
1,710
22,594
13,751
5,784
17,118
915
21,207
25,700
3,075
38,444
961,095
151,863
400,430
41,321
359,109
182,536
44,946
20,428
2,020
22,499
14,217
5,784
17,083
852
21,299
25,685
3,065
38,169
960,625
145,936
1,619,709
1,642,988
1,628,492
1,652,951
1,610,364
1,642,320
1,619,539
1,623,264
1,609,871
Weekly Reporting Commercial Banks
1.26
A21
ASSETS A N D LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1992
Account
Jan. 29"
Feb. 5 r
Feb. 12r
Feb. 19"
Feb. 26"
Mar. 4
Mar. 11
Mar. 18
Mar. 25
1,110,251
230,402
182,636
47,766
7,957
1,796
20,098
5,194
668
12,051
99,458
780,391
748,866
31,525
25,172
1,517
4,477
360
1,130,593
239,837
192,247
47,590
8,599
2,339
20,934
4,870
940
9,909
104,610
786,147
754,085
32,062
25,737
1,565
4,400
360
1,121,830
233,930
188,726
45,204
7,649
1,757
20,645
4,490
542
10,120
101,469
786,432
753,794
32,638
26,3%
1,570
4,314
357
1,134,594
249,800
196,825
52,974
8,192
1,653
25,619
5,133
573
11,805
102,112
782,683
749,888
32,795
26,279
1,619
4,544
353
1,112,697
233,222
184,686
48,536
8,026
1,771
22,083
4,661
622
11,373
100,503
778,972
746,505
32,467
26,226
1,611
4,282
348
1,139,953
249,354
198,922
50,431
7,780
2,149
22,341
4,648
524
12,989
106,718
783,881
751,381
32,500
26,135
1,781
4,305
279
1,127,609
240,698
192,711
47,986
7,182
1,808
21,645
4,492
958
11,900
103,847
783,064
750,725
32,339
26,075
1,806
4,168
290
1,117,038
237,144
191,250
45,894
7,645
1,671
20,922
4,837
524
10,294
103,223
776,671
745,569
31,102
25,546
1,824
3,437
296
1,114,291
236,973
188,978
47,994
8,059
1,535
20,999
5,421
643
11,338
102,384
774,935
744,372
30,563
25,137
1,843
3,274
309
281,938
0
29,818
252,120
285,886
440
20,152
265,294
282,342
0
19,704
262,638
296,408
0
14,696
281,712
275,491
0
12,600
262,891
283,727
0
14,545
269,183
270,840
0
10,049
260,792
285,935
350
20,446
265,139
271,694
0
13,125
258,569
LIABILITIES
46 Deposits
47 Demand deposits
48
Individuals, partnerships, and corporations
49
Other holders
50
States and political subdivisions
51
U.S. government
52
Depository institutions in the United States
53
Banks in foreign countries
Foreign governments and official institutions
54
55
Certified and officers' checks
56 Transaction balances other than demand deposits
57 Nontransaction balances
Individuals, partnerships, and corporations
58
59
Other holders
States and political subdivisions
60
61
U.S. government
Depository institutions in the United States
62
Foreign governments, official institutions, and banks
63
64 Liabilities for borrowed money 6
65 Borrowings from Federal Reserve Banks
66 Treasury tax and loan notes
67 Other liabilities for borrowed money
68 Other liabilities (including subordinated notes and
debentures)
107,489
106,730
104,006
101,472
101,726
97,885
100,361
99,355
102,892
1,499,678
1,523,209
1,508,178
1,532,474
1,489,914
1,521,565
1,498,810
1,502,328
1,488,877
120,031
119,780
120,313
120,477
120,450
120,755
120,729
120,937
120,994
Total loans and leases, gross, adjusted, plus securities . . 1,312,482
160,122
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates
1,224
685
Commercial and industrial
Other
538
23,409
Foreign branch credit extended to U.S. residents
453
Net due to related institutions abroad
1,329,902
160,773
1,219
684
535
23,544
-971
1,321,463
160,545
1,212
674
537
23,195
-2,834
1,321,726
158,227
1,214
681
533
23,165
-2,068
1,314,251
158,131
1,220
683
537
23,136
1,961
1,330,128
158,762
1,221
690
531
23,225
-4,650
1,323,225
156,660
1,223
692
530
23,247
-3,406
1,321,087
153,531
1,219
692
527
23,173
-3,492
1,320,546
152,278
1,207
679
528
23,186
2,543
69 Total liabilities
70 Residual (total assets less total liabilities)8
MEMO
71
72
73
74
75
76
77
1. Components may not sum to totals because of rounding.
2. Includes certificates of participation, issued or guaranteed by agencies of the
U.S. government, in pools of residential mortgages.
3. Includes securities purchased under agreements to resell.
4. Includes allocated transfer risk reserve.
5. Includes negotiable order of withdrawal (NOW), automatic transfer service
(ATS), and telephone and preauthorized transfer savings deposits.
6. Includes borrowings only from other-than-directly-related institutions.
7. Includes federal funds purchased and securities sold under agreements to
repurchase.
8. This balancing item is not intended as a measure of equity capital for use in
capital-adequacy analysis.
9. Excludes loans to and federal funds transactions with commercial banks in
the United States.
10. 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.
11. Credit extended by foreign branches of domestically chartered weeklyreporting banks to nonbank U.S. residents. Consists mainly of commercial and
industrial loans, but includes an unknown amount of credit extended to other than
nonfinancial businesses.
NOTE. Data that formerly appeared in table 1.28, Assets and Liabilities of Large
Weekly Reporting Commercial Banks in New York City, can be obtained from the
Board's H.4.2 (504) weekly statistical release. For ordering address see inside
front cover.
A22
1.30
DomesticNonfinancialStatistics • June 1992
LARGE WEEKLY-REPORTING U.S. BRANCHES A N D AGENCIES OF FOREIGN B A N K S
Liabilities 1
Assets and
Millions of dollars, Wednesday figures
1992
Account
Jan. 29r
1 Cash and balances due from depository
institutions
2 U.S. Treasury and government agency
securities
3 Other securities
4 Federal funds sold1
5 To commercial banks in the United States . . .
6 To others 2
7 Other loans and leases, gross
8 Commercial and industrial
9
Bankers acceptances and commercial
paper
10
All other
11
U.S. addressees
12
Non-U.S. addressees
13 Loans secured by real estate
14 To financial institutions
Commercial banks in the United States..
15
16
Banks in foreign countries
17
Nonbank financial institutions
18 For purchasing and carrying securities
19 To foreign governments and official
institutions
20 All other
21 Other assets (claims on nonrelated parties) ..
22 Total assets3
23 Deposits or credit balances due to other
than directly related institutions
24 Demand deposits
25 Individuals, partnerships, and
corporations
26 Other
27 Nontransaction accounts
28 Individuals, partnerships, and
corporations
29 Other
30 Borrowings from other than directly
related institutions
31 Federal funds purchased
32 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 due to related institutions abroad
Feb. 5 r
Feb. 12r
Feb. 26r
Mar. 4
Mar. 11
Mar. 18
Mar. 25
16,543
16,441
15,633
16,504
16,226
16,705
16,667
16,850
16,881
20,459
8,913
11,276
3,905
7,371
164,689
97,381
20,802
8,947
10,271
3,518
6,753
164,837
96,916
20,180
9,015
11,8%
3,116
8,780
161,778
%,729
20,167
8,992
14,441
5,890
8,551
162,240*
%,531r
19,381
8,990
13,461
4,318
9,143
163,587
97,266
20,005
9,006
13,795
4,720
9,075
163,983
98,074
19,865
8,983
12,652
4,665
7,987
161,985
97,341
19,5%
9,150
12,233
5,407
6,827
162,906
97,764
19,541
9,065
9,194
3,061
6,133
163,909
97,365
2,314
95,067
92,171
2,896
36,843
20,851
7,824
1,866
11,161
7,225
2,620
94,2%
91,422
2,873
37,104
21,578
8,119
2,068
11,391
6,925
2,487
94,243
91,416
2,827
37,107
20,238
7,294
1,832
11,112
5,348
2,454
94,077r
91,262r
2,816
37,038r
20,325
7,347
1,685
11,292
5,828
2,611
94,655
91,808
2,847
36,930
21,144
7,755
1,692
11,697
5,759
2,751
95,323
92,447
2,876
36,873
20,718
7,854
1,681
11,183
5,841
2,601
94,740
91,875
2,865
36,783
19,966
7,687
1,493
10,787
5,479
2,507
95,257
92,376
2,881
36,737
19,595
7,407
1,598
10,590
6,319
2,455
94,909
92,069
2,840
36,830
20,605
7,476
1,687
11,442
6,599
405
1,984
30,169
368
1,946
29,774
357
2,000
29,382
370
2,148r
28,619*
373
2,114
28,722
354
2,123
28,572
381
2,036
30,229
369
2,122
28,161
363
2,148
27,542
291,836
293,310
290,954
289,975r
291,929
296,005
291,646
293,101
288,400
100,643
3,665
98,889
4,030
97,881
3,613
%,346 r
3,919
99,639
3,439
97,864
3,753
99,802
3,529
101,485
3,516
101,039
3,638
2,801
864
96,978
2,898
1,131
94,859
2,771
842
94,269
3,019
899
92,427r
2,759
679
%,200
2,731
1,022
94,112
2,729
800
%,273
2,804
713
97,968
2.882
756
97,401
68,409
28,569
66,421
28,439
66,131
28,138
64,050*
28,377
67,395
28,805
66,395
27,717
68,454
27,819
69,857
28,112
69,699
27,702
100,834
51,208
107,677
58,151
103,524
56,087
104,131r
55,760
103,051
51,131
111,763
61,162
104,905
49,828
104,804
49,472
99,924
45,861
22,093
29,115
49,627
25,313
32,838
49,526
20,895
35,192
47,437
21,340
34,419
48,371r
21,331
29,800
51,920
25,122
36,040
50,600
17,501
32,326
55,078
18,051
31,421
55,332
16,743
29,118
54,063
15,600
34,027
27,234
14,454
35,073
26,955
13,626
33,811
26,920
13,217r
35,154r
26,480
13,705
38,215
26,515
12,917
37,683
25,712
13,945
41,133
25,939
14,537
40,795
24,329
14,520
39,543
24,183
291,836
293,310
290,954
289,975r
291,929
2%,005
291,646
293,101
288,400
193,608
23,337
193,220
17,550
192,459
19,559
192,603r
24,007'
193,346
21,162
194,216
16,729
191,134
19,735
191,071
18,279
191,171
20,985
1. Includes securities purchased under agreements to resell.
2. Includes transactions with nonbank brokers and dealers in securities.
3. Includes net due from related institutions abroad for U.S. branches and
agencies of foreign banks having a net "due from" position.
4. Includes other transaction deposits.
Feb. 19
5. Includes securities sold under agreements to repurchase.
6. Includes net to related institutions abroad for U.S. branches and agencies of
foreign banks having a net "due to" position.
7. Excludes loans to and federal funds transactions with commercial banks in
the United States.
Financial Markets
A23
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING 1
1.32
Millions of dollars, end of period
1991
1987
Dec.
Item
1988
Dec.
1989
Dec.
1990
Dec.
1992
1991
Dec.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Commercial paper (seasonally adjusted unless noted otherwise)
1 AU issuers
358,997
458,464
525,831
561,142
530,300
532,426
532,342
534,%9
530,300
533,342r
527,942
102,742
159,777
183,622
215,123
214,445
212,031
219,938
218,149
214,445
220,208
210,687
1,428
1,248
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
174,332
194,931
210,930
199,835
183,195
189,236
180,179
181,582
183,195
180,224r
178,995
2
2
3
4
5
Financial companies
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper5
Total
Bank-related (not seasonally
adjusted) 3
6 Nonfinancial companies6
43,173
43,155
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
81,923
103,756
131,279
146,184
132,660
131,159
132,225
135,238
132,660
132,910
138,260
Bankers dollar acceptances (not seasonally adjusted) 7
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
11
12
13
70,565
66,631
62,972
54,771
43,770
43,462
44,910
43,947
43,770
43,112
41,305
10,943
9,464
1,479
9,086
8,022
1,064
9,433
8,510
924
9,017
7,930
1,087
11,017
9,347
1,670
10,174
8,237
1,937
9,876
8,306
1,570
10,750
8,754
1,996
11,017
9,347
1,670
11,291
9,273
2,018
10,578
8,831
1,747
0
965
58,658
0
1,493
56,052
0
1,066
52,473
0
918
44,836
0
1,739
31,014
0
1,678
31,610
0
1,862
33,172
0
1,705
31,491
0
1,739
31,014
0
1,574
30,247
0
1,364
29,363
16,483
15,227
38,855
14,984
14,410
37,237
15,651
13,683
33,638
13,0%
12,703
28,973
12,843
10,351
20,577
12,876
10,966
19,620
13,265
11,105
20,541
13,472
10,486
19,982
12,843
10,351
20,577
12,995
9,740
20,377
12,819
9,315
19,170
1. Components may not sum to totals because of rounding.
2. 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.
3. Includes all financial-company paper sold by dealers in the open market.
4. Bank-related series were discontinued in January 1989.
5. As reported by financial companies that place their paper directly with
investors.
1.33
6. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
7. Data on bankers acceptances are gathered from institutions whose acceptances total $100 million or more annually. The reporting group is revised every
January. In January 1988, the group was reduced from 155 to 111 institutions. The
current group, totaling approximately 100 institutions, accounts for more than 90
percent of total acceptances activity.
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans 1
Percent per year
Date of change
Rate
1989— Jan. 1
Feb. 10
24
June 5
July 31
10.50
11.00
11.50
11.00
10.50
1990— Jan.
8
10.00
1991— Jan.
Feb.
May
Sept.
Nov.
Dec.
2
4
1
13
6
23
9.50
9.00
8.50
8.00
7.50
6.50
Period
Average
rate
1989
1990
1991
10.87
10.01
8.46
1989— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
10.50
10.93
11.50
11.50
11.50
11.07
10.98
10.50
10.50
10.50
10.50
10.50
1. Data in this table also appear in the Board's H.15 (519) weekly and G.13
Period
1990—Jan. ...
Feb. ..
Mar. ..
Apr. ..
May ...
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec. ..
Average
rate
10.11
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
Period
1991—Jan. ...
Feb. .
Mar. .
Apr. ..
May ..
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec.
1992—Jan. .
Feb.
Mar.
Apr.
(415) monthly statistical releases. For ordering address, see inside front cover.
A24
1.35
DomesticNonfinancialStatistics • June 1992
INTEREST RATES Money and Capital Markets
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1991
Item
1989
1990
1992
1992, week ending
1991
Dec.
Jan.
Feb.
Mar.
Feb. 28
Mar. 6
Mar. 13
Mar. 20
Mar. 27
MONEY MARKET INSTRUMENTS
1 Federal funds'- 2 ' 3
2 Discount window borrowing
9.21
6.93
8.10
6.98
5.69
5.45
4.43
4.11
4.03
3.50
4.06
3.50
3.98
3.50
3.96
3.50
4.08
3.50
3.95
3.50
4.04
3.50
3.94
3.50
3
4
5
Commercial paper3'5'6
1-month
3-month
6-month
9.11
8.99
8.80
8.15
8.06
7.95
5.89
5.87
5.85
4.98
4.61
4.49
4.11
4.07
4.06
4.11
4.11
4.13
4.28
4.30
4.38
4.19
4.20
4.24
4.27
4.28
4.32
4.28
4.29
4.35
4.32
4.34
4.43
4.27
4.29
4.39
6
7
8
Finance paper, directly placed3'5'7
1-month
3-month
6-month
8.99
8.72
8.16
8.00
7.87
7.53
5.73
5.71
5.60
4.69
4.39
4.31
3.99
3.99
3.95
4.01
4.02
3.96
4.18
4.20
4.15
4.08
4.12
4.04
4.17
4.19
4.12
4.19
4.21
4.14
4.23
4.24
4.17
4.16
4.19
4.17
Bankers acceptances3'5'8
3-month
6-month
8.87
8.67
7.93
7.80
5.70
5.67
4.42
4.28
3.97
3.96
4.00
4.02
4.19
4.29
4.08
4.11
4.17
4.23
4.19
4.28
4.21
4.36
4.19
4.31
9.11
9.09
9.08
8.15
8.15
8.17
5.82
5.83
5.91
4.84
4.47
4.41
4.07
4.05
4.07
4.05
4.07
4.13
4.23
4.25
4.42
4.14
4.16
4.27
4.22
4.22
4.34
4.24
4.24
4.41
4.28
4.29
4.50
4.22
4.25
4.42
9.16
8.16
5.86
4.48
4.06
4.05
4.26
4.16
4.20
4.28
4.30
4.26
8.11
8.03
7.92
7.50
7.46
7.35
5.38
5.44
5.52
4.07
4.10
4.17
3.80
3.87
3.95
3.84
3.93
4.08
4.04
4.18
4.40
3.94
4.03
4.19
4.04
4.13
4.32
4.02
4.16
4.43
4.06
4.23
4.50
4.03
4.18
4.40
8.12
8.04
7.91
7.51
7.47
7.36
5.42
5.49
5.54
4.12
4.16
4.20
3.84
3.88
3.84
3.84
3.94
4.01
4.05
4.19
4.37
3.96
4.08
n.a.
4.02
4.10
n.a.
4.02
4.13
4.37
4.09
4.27
n.a.
4.08
4.27
n.a.
9
10
Certificates of deposit, secondary
11
12
13
1-month
3-month
6-month
14 Eurodollar deposits, 3-month 3 ' 10
18
19
20
U.S. Treasury bills
Secondary market
3-month
6-month
1-year
Auction average 3,5 "
3-month
6-month
I-year
21
22
23
24
25
26
27
Constant maturities12
1-year
2-year
3-year
5-year
7-year
10-year
30-year
8.53
8.57
8.55
8.50
8.52
8.49
8.45
7.89
8.16
8.26
8.37
8.52
8.55
8.61
5.86
6.49
6.82
7.37
7.68
7.86
8.14
4.38
5.03
5.39
6.19
6.69
7.09
7.70
4.15
4.96
5.40
6.24
6.70
7.03
7.58
4.29
5.21
5.72
6.58
6.96
7.34
7.85
4.63
5.69
6.18
6.95
7.26
7.54
7.97
4.41
5.37
5.86
6.70
7.04
7.37
7.88
4.55
5.53
6.00
6.79
7.13
7.45
7.92
4.64
5.66
6.14
6.91
7.24
7.54
7.97
4.73
5.84
6.33
7.08
7.37
7.63
8.03
4.64
5.75
6.26
7.00
7.29
7.56
7.97
Composite13
28 Over 10 years (long-term)
8.58
8.74
8.16
7.58
7.48
7.78
7.93
7.81
7.86
7.93
8.00
7.93
7.00
7.40
7.23
6.96
7.29
7.27
6.56
6.99
6.92
6.32
6.65
6.69
6.13
6.47
6.54
n.a.
n.a.
6.74
n.a.
n.a.
6.76
6.27
6.67r
6.74
6.35
6.77
6.71
6.45
6.88
6.76
6.48
6.91
6.79
6.50
6.94
6.77
9.66
9.77
9.23
8.75
8.64
8.75
8.81
8.78
8.77
8.80
8.85
8.81
9.26
9.46
9.74
10.18
9.32
9.56
9.82
10.36
8.77
9.05
9.30
9.80
8.31
8.61
8.82
9.26
8.20
8.51
8.72
9.13
8.29
8.67
8.83
9.23
8.35
8.73
8.89
9.25
8.31
8.72
8.87
9.23
8.32
8.70
8.87
9.21
8.34
8.74
8.89
9.23
8.38
8.78
8.89
9.31
8.36
8.73
8.90
9.25
37 A-rated, recently offered utility bonds17
9.79
10.01
9.32
8.68
8.57
8.79
8.91
8.72
8.86
8.99
8.98
8.87
MEMO: Dividend-price ratio18
38 Preferred stocks
39 Common stocks
9.05
3.45
8.96
3.61
8.17
3.25
7.62
3.11
7.54
2.90
7.54
2.94
7.64
3.01
7.86
2.94
7.52
2.99
8.00
3.03
7.69
2.99
7.76
3.01
IS
16
17
U . S . TREASURY NOTES AND BONDS
STATE AND LOCAL NOTES AND BONDS
Moody's series14
79
30 Baa
31 Bond Buyer series
CORPORATE BONDS
32 Seasoned issues, all industries16
Rating group
33
34 Aa
35 A
36 Baa
1. The daily effective federal funds rate is a weighted average of rates on
trades through N.Y. brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday
of the current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. An average of offering rates on commercial paper placed by several leading
dealers for firms whose bond rating is AA or the equivalent.
7. An average of offering rates on paper directly placed by finance companies.
8. Representative closing yields for acceptances of the highest rated money
center banks.
9. An average of dealer offering rates on nationally traded certificates of
deposit.
10. Bid rates for Eurodollar deposits at 11 a.m. London time. Data are for
indication purposes only.
11. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.
12. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
13. Unweighted average of rates on all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower" bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with twenty years to maturity, issued by twenty
state and local governmental units of mixed quality. Based on figures for
Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. 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.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample often issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36
STOCK MARKET
A25
Selected Statistics
1991
Indicator
1989
1990
1992
1991
July
Aug.
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
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
Utility
4
Finance
5
180.13
228.04
174.90
94.33
162.01
183.66
226.06
158.80
90.72
133.21
206.35
258.16
173.97
92.64
150.84
208.29
262.48
177.15
90.05
151.69
213.33
268.22
178.42
92.38
157.70
212.55
266.21
177.99
93.72
157.69
213.10
265.68
187.45
95.25
158.94
213.25
264.89
188.52
96.78
159.78
214.26
266.01
185.47
98.08
159.96
229.34
286.62
201.55
99.31
174.50
228.12
286.09
205.53
96.19
174.05
225.21
282.36
204.09
94.16
173.49
6 Standard & Poor's Corporation
(1941-43 = 10)1
323.05
335.01
376.20
380.23
389.40
387.20
386.88
385.87
388.51
416.08
412.56
407.36
7 American Stock Exchange
(Aug. 31, 1973 = 50p
356.67
338.32
360.32
364.33
367.38
369.55
376.82
382.38
373.08
409.08
413.74
404.09
165,568
13,124
156,359
13,155
179,411
12,486
157,871
10,883
171,490
12,514
163,242
13,378
177,502
13,764
187,191
14,487
197,914
17,475
239,903
20,444
226,476
18,126
185,581
15,654
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
Customer financing (millions of dollars, end-of-period balances)
10 Margin credit at broker-dealers3
34,320
28,210
36,660
30,600
32,240
33,170
33,360
34,840
36,660
36,350
38,200
39,090
Free credit balances at brokers4
11 Margin accounts
12 Cash accounts
7,040
18,505
8,050
19,285
8,290
19,255
6,545
16,945
7,040
17,040
6,950
17,595
6,965
17,100
7,040
17,780
8,290
19,255
7,865
19,990
7,620
20,370
7,350
19,305
Margin requirements (percent of market value and effective date) 6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June 8 , 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. On July 5, 1983, the American Stock Exchange rebased its index, effectively
cutting previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at brokerdealers has included credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to brokers and are subject to withdrawal by customers on demand.
5. New series since June 1984.
6. These requirements, stated in regulations adopted by the Board of Governors pursuant to the Securities Exchange Act of 1934, limit the amount of credit
that can be used to purchase and carry "margin securities" (as defined in the
regulations) when such credit is collateralized by securities. Margin requirements
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 option plus 20 percent
of the market value of the stock underlying the option (or 15 percent in the case
of stock-index options).
A26
1.37
DomesticNonfinancialStatistics • June 1992
SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1991
Account
1989
1992
1990
Apr.
May
July
June
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
SAIF-insured institutions
1 Assets
1,249,055
1,084,821
1,027,464
1,020,677
1,001,582
984,966
972,524
949,008
937,813
934,560
920,170
909,266
733,729
633,385
608,857
605,947
596,022
586,285
578,274
566,053
560,756
557,134
551,140
545,689
170,532
155,228
143,968
141,582
139,536
137,098
135,751
135,253
134,967
133,344
129,583
127,415
25,457
32,150
58,685
16,897
24,125
48,753
14,413
21,903
46,702
14,438
21,724
45,827
14,625
20,645
45,174
14,247
20,301
44,352
14,036
20,390
43,259
13,126
18,519
42,423
12,446
18,150
43,061
12,307
17,511
42,761
12,287
17,547
41,769
11,669
16,842
40,934
2 Mortgages
3 Mortgage-backed
securities
4 Contra-assets to
mortgage assets 1 .
5 Commercial loans
6 Consumer loans
Contra-assets to non7
mortgage loans 2 .
8 Cash and investment
securities
9 Other3
3,592
1,939
1,742
1,739
1,745
1,676
1,546
1,399
1,375
1,153
1,247
1,104
166,053
116,955
146,644
95,522
132,878
89,301
134,012
87,757
130,443
86,133
130,263
82,590
132,010
78,422
125,905
75,380
120,793
73,907
123,422
73,847
120,129
73,847
118,539
72,620
10 Liabilities and net worth . 1,249,055
1,084,821
1,027,464
1,020,677
1,001,582
984,966
972,524
949,008
937,813
934,560
920,170
909,266
945,656
252,230
124,577
127,653
27,556
23,612
835,4%
197,353
100,391
96,962
21,332
30,640
806,266
164,268
86,779
77,489
21,752
35,178
801,678
159,625
82,312
77,313
23,647
35,720
792,923
151,474
78,966
72,508
20,480
36,705
775,434
146,901
76,104
70,797
21,654
40,976
763,751
142,908
74,424
68,484
22,649
43,216
749,363
132,727
68,816
63,911
19,080
47,838
741,360
127,356
66,609
60,747
20,390
48,706
737,554
125,147
66,005
59,142
21,695
50,163
732,070
121,931
65,842
56,089
17,468
48,701
649,045
119,953
62,636
57,317
18,878
49,197
11
12
13
14
15
16
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
1. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
mortgage loans, contracts, and pass-through securities include loans in process,
unearned discounts and deferred loan fees, valuation allowances for mortgages
"held for sale," and specific reserves and other valuation allowances.
2. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
nonmortgage loans include loans in process, unearned discounts and deferred loan
fees, and specific reserves and valuation allowances.
1.38
3. Includes holding of stock in Federal Home Loan Bank and finance leases
plus interest.
NOTE. Components do not sum to totals because of rounding. Data for credit
unions and life insurance companies have been deleted from this table. They will
be shown in a separate table which will appear quarterly, starting in the December
issue.
SOURCE. Savings Association Insurance Fund (SAIF)-insured institutions:
Estimates by the Office of Thrift Supervision (OTS) for all institutions insured by
the SAIF and based on the OTS thrift institution Financial Report.
FEDERAL FISCAL A N D FINANCING OPERATIONS 1
Millions of dollars
Calendar year
Type of account or operation
U.S. budget2
1 Receipts, total
2 On-budget
3 Off budget
4 Outlays, total
5 On-budget
6 Off budget
7 Surplus or deficit ( - ) , total
8 On-budget
9 Off budget
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase (-)) . . .
12 Other 1
Fiscal
year
1989
Fiscal
year
1990
Fiscal
year
1991
1992
1991
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
990,701
727,035
263,666
1,144,020
933,107
210,911
-153,319
-206,072
52,753
1,031,308
749,652
281,656
1,251,766
1,026,711
225,065
-220,469
-277,059
56,590
1,054,260
760,377
293,883
1,323,750
1,082,067
241,685
-269,492
-321,690
52,198
78,068
57,216
20,852
114,082
94,099
19,983
-36,014
-36,883
869
73,194
50,898
22,296
117,748
95,455
22,293
-44,555
-44,557
3
103,662
80,172
23,490
106,199
95,500
10,698
-2,537 r
-15,328
12,792
104,091
79,937
24,154
119,742
97,189
22,553
-15,650
-17,252
1,601
62,056
38,290
23,766
110,817r
87,593r
23,224
—48,761r
-49,303 r
542
72,917
46,353
26,564
122,279
100,700
21,579
-49,362
-54,347
4,985
141,806
3,425
8,088
220,101
818
-451
276,802
-1,329
-5,981
40,657
-11,235
6,592
25,641
28,195
-9,281
22,825
-24,258
3,970r
11,449
925
3,276
20,938
30,975
—3,152r
50,138
-2,961
2,185
40,973
13,452
27,521
40,155
7,638
32,517
41,484
7,928
33,556
52,719
18,111
34,608
24,524
6,317
18,207
48,782
17,697
31,085
47,857
10,828
37,028
16,882
5,477
11,405
19,843
6,846
12,997
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
1. Components may not sum to totals because of rounding.
2. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act also moved two
social security trust funds (federal old-age survivors insurance and federal
disability insurance trust fund) off-budget. The Postal Service is included as an
off-budget item in the Monthly Treasury Statement beginning in 1990.
3. Includes special drawing rights (SDRs); reserve position on the U.S. quota
in the International Monetary Fund (IMF); loans to the IMF; other cash and
monetary assets; accrued interest payable to the public; allocations of SDRs;
deposit funds; miscellaneous liability (including checks outstanding) and asset
accounts; seigniorage; increment on gold; net gain or loss for U.S. currency
valuation adjustment; net gain or loss for IMF loan-valuation adjustment; and
profit on sale of gold.
SOURCES. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government (MTS) and the Budget of the U.S. Government.
Federal Finance
1.39
All
U.S. BUDGET RECEIPTS A N D OUTLAYS 1
Millions of dollars
Calendar year
Source or type
Fiscal
year
1990
Fiscal
year
1991
1992
1991
H2
HI
Jan.
Feb.
RECEIPTS
1 All sources
2 Individual income taxes, net
3 Withheld
4 Presidential Election Campaign Fund . . .
Nonwithheld
5
6
Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Employment taxes and
contributions
11
Self-employment taxes and
contributions
12 Unemployment insurance
13 Other net receipts
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts
1,031,308
1,054,260
548,861
503,123
540,504
519,288
104,091
62,056
72,917
466,884
388,384
32
151,285
72,817
467,827
404,152
32
142,693
79,050
243,087
190,219
30
117,675
64,838
230,745
207,469
3
31,728
8,455
232,389
193,440
31
109,405
70,487
233,983
210,552
60,451
36,047
33,2%
9,867
25,601
1,197
22,213
33,941
5
1,056
12,789
19,503
35,728
7
3,925
20,157
110,017
16,510
113,599
15,513
58,830
8,326
54,044
7,603
58,903
7,904
54,016
7,956
3,856
864
2,348
1,129
13,547
1,805
380,047
396,011
210,476
178,468
214,303
186,839
31,832
353,891
370,526
195,269
167,224
199,727
175,802
30,797
29,964
33,557
1,853
265
415
1
0
34,237
21,795
21,635
4,522
25,457
20,922
4,563
19,017
12,929
2,278
2,638
8,996
2,249
22,150
12,296
2,279
3,306
8,721
2,317
-1,361
619
415
1,472
1,945
373
35,345
16,707
11,500
27,316
42,430
15,921
11,138
22,847
18,153
8,096
6,442
12,106
17,535
8,568
5,333
16,032
20,703
7,488
5,631
8,991
24,690
8,694
5,521
13,503
3,349
1,367
930
3,170
3,395
1,291
733
923
4,077
1,412
879
1,066
1,251,776
1,323,750
640,867
647,461
632,153
693,760
119,742
110,817 R
122,279
299,331
13,762
14,444
2,372
17,067
11,958
272,514
16,167
15,946
1,750
18,708
14,864
152,733
6,770
6,974
149,497
8,943
8,081
979
9,933
6,878
122,089
7,592
7,4%
816
8,324
7,684
147,531
7,651
8,473
1,436
11,221
7,335
25,675
1,678
1,308
-23
1,232
878
24,265
1,217
1,312
254
1,244
1,055
22,947
1,675
1,592
411
1,397
1,527
67,160
29,485
8,498
75,639
31,531
7,432
38,672
13,754
3,987
37,491
3,939
17,992
14,748
3,552
36,579
17,094
3,784
4,736
2,546
599
-1,851
2,111
540
7,733
2,462
743
38,497
41,479
19,537
18,988
21,234
21,104
4,375
3,750
3,642
7,423
33,485
19,754
1,833
1,130
OUTLAYS
18 All types
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
1,216
7,343
7,450
16,218
29 Health
30 Social security and medicare
31 Income security
57,716
346,383
147,314
71,183
373,495
171,618
29,488
175,997
78,475
31,424
176,353
75,948
35,608
190,247
88,778
41,458
193,156
87,215
6,688
33,497
17,663
6,808
32,937
18,465
32
33
34
35
36
29,112
10,004
10,724
184,221
-36,615
31,344
12,295
11,358
195,012
-39,356
15,217
4,868
4,916
91,155
-17,688
15,479
5,265
6,976
94,650
-19,829
14,326
6,187
5,212
98,556
-18,702
17,425
6,586
2,465
1,058
937
17,577
-3,147
3,142
1,145
776
16,498
-2,851
Veterans benefits and services
Administration of justice
General government
Net interest 6
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.
6,821
99,405
-20,435
881
16,884
-3,238
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf, U.S. government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1990.
A28
1.40
DomesticNonfinancialStatistics • June 1992
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION 1
Billions of dollars, end of month
1990
1991
1992
Item
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
r
1 Federal debt outstanding
3,081.90
3,175.50
3,266.10
3,397.30
3,491.70
3,562.90
3,683.10
3,820.40
2 Public debt securities
3 Held by public
4 Held by agencies
3,052.00
2,329.30
722.70
3,143.80
2,368.80
775.00
3,233.30
2,437.60
795.80
3,364.80
2,536.60
828.30
3,465.20
2,598.40
866.80
3,538.00
2,642.90
895.10
3,665.30
2,745.70
919.60
3,801.70
2,833.00
968.70
29.90
29.80
.20
31.70
31.60
.20
32.80
32.60
.20
32.50
32.40
.10
26.50
26.40
.10
25.00
24.80
.10
17.80
17.60
.10
18.70
18.60
.10
5 Agency securities
6 Held by public
7 Held by agencies
Mar. 31
n.a.
3,881.30
n.a.
n.a.
n.a.
n.a.
n.a.
2,988.90
3,077.00
3,161.20
3,281.70
3,377.10
3,450.30
3,569.30
3,706.80
3,783.60
9 Public debt securities
10 Other debt 2
2,988.60
.30
3,076.60
.40
3,160.90
.40
3,281.30
.40
3,376.70
.40
3,449.80
.40
3,569.00
.30
3,706.40
.40
3,783.20
.40
11 MEMO: Statutory debt limit
3,122.70
3,122.70
3,195.00
4,145.00
4,145.00
4,145.00
4,145.00
4,145.00
4,145.00
8 Debt subject to statutory limit
1. Components may not sum to totals because of rounding.
2. Consists of guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
of Columbia stadium bonds.
SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the
United States.
Types and Ownership 1
Billions of dollars, end of period
1991
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Nonmarketable 2
State and local government series
Foreign issues3
Government
Public
Savings bonds and notes
Government account series4
Non-interest-bearing
By holder5
15 U.S. Treasury and other federal agencies and trust funds
16 Federal Reserve Banks
17 Private investors
18 Commercial banks
19 Money market funds
20 Insurance companies
21 Other companies
22 State and local treasuries
Individuals
Savings bonds
23
24
Other securities
25
Foreign and international6 .
26
Other miscellaneous investors
1988
1990
1992
1991
Q2
Q3
Q4
Q1
2,684.4
2,953.0
3,364.8
3,801.7
3,538.0
3,665.3
3,801.7
3,881.3
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
6.6
6.6
.0
107.6
575.6
21.3
2,931.8
1,945.4
430.6
1,151.5
348.2
986.4
163.3
6.8
6.8
.0
115.7
695.6
21.2
3,362.0
2,195.8
527.4
1,265.2
388.2
1,166.2
160.8
43.5
43.5
.0
124.1
813.8
2.8
3,798.9
2,471.6
590.4
1,430.8
435.5
1,327.2
159.7
41.9
41.9
.0
135.9
959.2
2.8
3,516.1
2,268.1
521.5
1,320.3
411.2
1,248.0
161.0
42.1
42.1
.0
131.3
883.2
21.9
3,662.8
2,390.7
564.6
1,387.7
423.4
1,272.1
158.1
41.6
41.6
.0
133.5
908.4
2.5
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
3,878.5
2,552.3
615.8
1,477.7
443.8
1,326.2
157.8
42.0
42.0
.0
139.9
956.1
2.8
589.2
238.4
1,858.5
184.9r
11.8
118.6r
87.1
471.6r
707.8
228.4
2,015.8
164.9r
14.9
125.r
93.4
487.5r
828.3
259.8
2,288.3
171.5r
45.4
142.0r
108.9
490.4r
968.7
288.4
2,563.2
222.0
80.0
168.0
150.8
490.0
895.1
255.1
2,397.9
195.6r
55.2
152.5r
130.8
489.3r
919.6
264.7
2,489.4
216.9"
64.5
162.9r
142.0
491.4r
968.7
288.4
2,563.2
222.0
80.0
168.0
150.8
490.0
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
109.6
79.2
362.2
433.0r
117.7
98.7
392.9
520.7r
126.2
107.6
421.7rr
674.4
138.1
125.8
457.7
730.8
133.2
110.3
439.8r
691.r
135.4
122.1
443.4rr
710.8
138.1
125.8
457.7
730.8
n.a.
n.a.
n.a.
n.a.
1. Components may not sum to totals because of rounding.
2. Includes (not shown separately) securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
3. Nonmarketable series denominated in dollars, and series denominated in
foreign currency held by foreigners.
4. Held almost entirely by U.S. Treasury and other federal agencies and trust
funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust
1989
funds are actual holdings; data for other groups are Treasury estimates.
6. Consists of investments of foreign balances and international accounts in the
United States.
7. 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. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder, the Treasury
Bulletin.
Federal Finance All
1.42
U.S. GOVERNMENT SECURITIES DEALERS
Transactions'
Millions of dollars, daily averages, par value
1992, week ending
1992
Item
Feb. 5
Feb. 12
Feb. 19
Feb. 26
Mar. 4
Mar. 11
32,335
32,442
39,257
37,948
34,829
41,031
41,049
51,448
32,056
21,845
13,809
51,306
33,518
18,904
19,831
50,530
33,559
14,364
11,672
50,196
33,266
14,253
14,638
42,751
31,151
15,785
14,612
Jan.
Feb
Jan. 29
37,212
36,927
IMMEDIATE TRANSACTIONS 2
By type of security
U.S. Treasury securities
1 Bills
Coupon securities, by maturity
2 Less than 3.5 years
3 3.5 to 7.5 years
4 7.5 to 15 years
5
15 years or more
Federal agency securities
Debt, maturing in
6
Less than 3.5 years
3.5 to 7.5 years
7
7.5 years or more
8
Mortgage-backed securities
9
Pass-throughs
10
All others
11
12
13
14
15
16
By type of counterparty
Primary dealers and brokers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
Customers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
30,957
32,848
29,975
14,037
14,504
48,693
43,820
19,367
17,455
50,004
32,906
17,537
14,718
51,138
40,483
18,515
14,787
44,856
32,179
16,010
14,548
4,636
610
720
5,301
652
681
5,702
615
596
6,276
620
622
5,918
515
664
6,017
733
545
4,540
500
424
6,431
563
633
5,094
830
875
4,010
711
654
11,891
2,657
13,669
2,948
12,359
2,646
10,624
2,978
10,593
2,732
13,566
2,955
13,010
2,076
12,714
2,736
9,800
2,664
14,170
3,090
73,458
105,664
95,816
103,810
89,504
101,665
98,125
91,728
96,260
93,941
1,383
6,227
1,456
7,284
1,463
6,590
1,534
5,818
1,281
5,748
1,914
7,257
1,037
5,957
1,437
7,212
1,521
5,892
1,146
8,244
48,862
60,884
56,276
53,448
50,531
56,750
63,381
53,226
57,123
51,407
5,278
6,573
4,228
9,016
4,585
8,321
5,178
9,332
5,451
8,416
5,984
7,784
5,816
7,576
5,381
9,265
4,427
9,129
6,191
8,238
3,295
4,078
4,242
4,234
3,601
3,313
3,870
4,503
7,619
6,484
1,836
2,470
1,172
2,077
12,313
1,955
1,528
1,365
9,614
2,215
1,946
1,877
11,087
1,930
1,487
1,510
9,385
97
49
49
10
33
12
11
25
28
FUTURE AND FORWARD
TRANSACTIONS
By type of deliverable security
U.S. Treasury securities
17 Bills
Coupon securities, by maturity
18 Less than 3.5 years
19 3.5 to 7.5 years
20 7.5 to 15 years
21
15 years or more
Federal agency securities
Debt, maturing in
22
Less than 3.5 years
23
3.5 to 7.5 years
24
7.5 years or more
Mortgage-backed
25
Pass-throughs3
26
Others
1,801
1,096
1,052
7,264
2,177
1,446
1,720
11,407
2,014
1,311
1,928
10,178
119
39
30
67
75
26
38
44
51
9,105
1,308
17,241r
2,099
14,856
2,299
1,074
526
386
2,019
1,527
368
750
1,809
314
718
2,655
722
1,667
1,032
1,516
9,653
2,639
8,985
14
79
33
22
50
103
15,722
2,657
16,928r
2,523
18,787
2,653
12,576
1,693
11,909
2,302
13,844
2,287
16,000
1,646
1,390
1,478
186
522
2,212
2,626
262
678
2,924
2,192
397
1,235
3,253
991
368
302
1,899
1,212
1,323
2,877
1,177
423
516
2,543
438
508
1,287
555
385
458
2,552
1,477
1,680
10,259
1,118
OPTION TRANSACTIONS 5
27
28
29
30
31
By type of underlying security
U.S. Treasury, coupon
securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency, mortgagebacked securities
Pass-throughs
480
2,618
211
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Averages for transactions are based on the
number of trading days in the period. Immediate, forward, and future transactions
are reported at principal value, which does not include accrued interest; option
transactions are reported at the face value of the underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Transactions for immediate delivery include purchases or sales of securities
(other than mortgage-backed agency securities) for which delivery is scheduled in
five business days or less and "when-issued" securities that settle on the issue
date of offering. Transactions for immediate delivery of mortgage-backed securities
include purchases and sales for which delivery is scheduled in thirty days or less.
Stripped securities are reported at market value by maturity of coupon or corpus.
3. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest only securities (IOs),
and principal only securities (POs).
461
277
1,972
4. Futures transactions are standardized agreements arranged on an exchange.
Forward transactions are agreements made in the over-the-counter market that
specify delayed delivery. All futures transactions are included regardless of time
to delivery. Forward contracts for U.S. Treasury securities and federal agency
debt securities are included when the time to delivery is more than five days.
Forward contracts for mortgage-backed securities are included when the time to
delivery is more than thirty days.
5. Options transactions are purchases or sales of put-and-call options, whether
arranged on an organized exchange or in the over-the-counter market, and include
options on futures contracts on U.S. Treasury and federal agency securities.
NOTE. In tables 1.42 and 1.43, the term "n.a." refers to data that are not
published because of insufficient activity.
Data formerly shown under option transactions for U.S. Treasury securities,
bills; Federal agency securities, debt; and mortgage-backed securities, other than
pass-throughs are no longer available because of insufficient activity.
A30
1.43
DomesticNonfinancialStatistics • June 1992
U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing 1
Millions of dollars
1991
1992
1992, week ending
Item
Jan.
Dec.
Feb.
Jan. 29
Feb. 5
Feb. 12
Feb. 19
Feb. 26
Mar. 4
Mar. 11
Mar. 18
Positions 2
N E T IMMEDIATE TRANSACTIONS 3
By type of security
U.S. Treasury securities
1 Bills
Coupon securities, by maturity
Less than 3.5 years
2
3.5 to 7.5 years
3
7.5 to 15 years
4
15 years or more
5
Federal agency securities
Debt, maturing in
6
Less than 3.5 years
7
3.5 to 7.5 years
7.5 years or more
8
Mortgage-backed securities
Pass-throughs
9
10 All others .
Other money market instruments
11 Certificates of deposit
12 Commercial paper
13 Bankers acceptances
16,998
12,607
11,229
15,153
11,865
11,393
11,705
7,686
16,945
17,365
17,489
5,572
-6,646
-5,919
-1,471
2,425
-7,485
-6,185
-1,643
3,136
-12,891
-3,040
-1,755
-1,623
-10,009
-6,158
-1,553
-680
-11,956
-6,176
-2,932
5,894
-15,707
-991
-3,974
1,691
-14,980
-3,090
-279
4,880
-9,209
-2,679
-259
2,364
-11,592
-3,323
-1,549
-874
-7,546
-4,875
-2,075
-3,546
-9,3%
-5,770
-3,748
4,474
2,720
3,711
4,190
3,536
3,597
5,788
4,208
3,705
5,175
3,961
3,503
6,285
3,975
3,683
5,989
4,163
3,667
6,673
4,483
3,455
4,514
4,184
4,029
5,403
4,120
3,656
3,883
3,850
3,731
5,598
3,518
3,598
22,743
17,578
26,067
18,947
25,445
16,417
24,441
17,374
20,411
19,413
33,198
17,234
26,582
15,774
23,810
14,475
16,830
15,546
25,097
14,383
33,462
12,738
2,928
5,420
1,413
3,442
5,228
1,195
2,717
6,266
1,456
3,289
5,352
995
2,666
5,036
1,380
2,534
6,541
1,395
2,748
6,357
1,555
3,133
6,827
1,569
2,182
6,153
1,226
2,651
5,156
908
2,981
4,822
845
-9,264
-11,740
-7,362
-12,426
-11,004
-9,993
-6,738
-4,978
-2,168
-13
-42
2,136
-571
-655
-5,094
1,776
2,550
576
-4,835
1,810
2,817
228
-5,093
2,526
2,559
599
-4,643
2,067
1,973
889
-4,360
1,745
3,408
224
-3,301
1,589
3,609
-235
-3,901
1,921
2,453
-53
-7,977
1,786
1,849
875
-6,388
1,750
2,256
1,092
-5,267
1,283
3,745
1,297
-5,551
110
117
28
313
127
17
-24
-37
59
14
15
4
-28
-49
-38
-54
238
166
-49
-5
-7
30
-23
19
-19
29
65
-32
39
-51
-21
100
%
-8,152
-7,680""
2,511
3,851
-144,4% -112,128
-2,399
3,922
-116,867
-548
1,710
-114,105
-17,100
4,339
-118,244
-10,319
4,430
-107,153
-8,942
4,541
-108,811
1,829
3,318
-113,906
-6,309
2,767
-131,487
-12,371
3,608
-128,847
FUTURE AND FORWARD TRANSACTIONS5
By type of deliverable security
U.S. Treasury securities
14 Bills
Coupon securities, by maturity
15 Less than 3.5 years
16 3.5 to 7.5 years
17 7.5 to 15 years
18 15 years or more
Federal agency securities
Debt, maturing in
Less than 3.5 years
19
3.5 to 7.5 years
20
7.5 years or more
21
Mortgage-backed securities
22 Pass-throughs
23 All others
24 Certificates of deposit
-7,180
1,457
-192,213
Financing6
Reverse repurchase agreements
25 Overnight and continuing
26 Term
169, %5
231,570
203,915
277,551
211,815
278,414
195,723
294,626
215,129
290,397
200,490
305,654
220,692
259,834
208,689
270,360
219,297
257,030
208,649
265,674
217,530
264,365
Repurchase agreements
Z! Overnight and continuing
28 Term
271,474
223,264
320,575'
258,693
322,440
264,340
313,548
284,050
322,953
275,376
306,038
292,167
331,275
248,460
328,160
254,891
325,893
240,120
318,936
241,764
333,579
246,613
Securities borrowed
29 Overnight and continuing
30 Term
60,006'
29,811
66,170r
32,028
71,618
31,200
67,734r
33,626
72,346
31,536
73,806
31,454
72,487
28,990
73,132
32,904
71,504
31,230
76,597
32,317
75,785
31,380
Securities loaned
31 Overnight and continuing
32 Term
5,867'
897
7,327r
1,556
7,703
1,436
7,282r
3,436
7,071
1,201
9,548
1,049
10,346
1,238
8,7%
2,143
7,506
1,544
7,769
1,754
6,912
1,698
Collateralized loans
33 Overnight and continuing
10,755
18,459
16,951
19,729
18,488
16,440
15,862
17,883
15,944
15,983
16,815
MEMO: Matched book
Reverse repurchases
34 Overnight and continuing
35 Term
117,204
198,594
144,047
238,005
150,143
234,039
139,527
250,915
154,507
246,586
144,555
258,946
153,531
213,652
147,813
227,887
153,438
216,934
151,839
224,788
155,228
222,781
Repurchases
36 Overnight and continuing
37 Term
138,847
170,965
173,994
194,820
176,327
197,647
165,516
213,751
178,737
209,821
168,701
225,018
174,649
180,511
181,234
186,975
182,566
178,373
179,428
179,898
181,513
180,882
7
1. Data for positions and financing are obtained from reports submitted to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Weekly figures are close-of-business Wednesday data; monthly figures are averages of weekly data. Data for positions and
financing are averages of close-of-business Wednesday data.
2. Securities positions are reported at market value.
3. Net immediate positions include securities purchased or sold (other than
mortgage-backed agency securities) that have been delivered or are scheduled to
be delivered in five business days or less and "when-issued" securities settle on
the issue date of offering. Net immediate positions of mortgage-backed securities
include securities purchased or sold that have been delivered or are scheduled to
be delivered in thirty days or less.
4. Includes securities such as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest only (IOs), and principal
only (POs).
5. Futures positions are standardized contracts arranged on an exchange.
Forward positions reflect agreements made in the over-the-counter market that
specify delayed delivery. All futures positions are included regardless of time to
delivery. Forward contracts for U.S. Treasury securities and for federal agency
debt securities are included when the time to delivery is more than five business
days. Forward contracts for mortgage-backed securities are included when the
time to delivery is more than thirty days.
6. Overnight financing refers to agreements made on one business day that
mature on the next business day; continuing contracts are agreements that remain
in effect for more than one business day but have no specific maturity and can be
terminated without advance notice by either party; term agreements have a fixed
maturity of more than one business day .
7. Matched-book data reflect financial intermediation activity in which the
borrowing and lending transactions are matched. Matched-book data are included
in the financing breakdowns given above. The reverse repurchase and repurchase
numbers are not always equal because of the "matching" of securities of different
values or types of collateralization.
NOTE. Data for future and forward commercial paper and bankers' acceptances and
term financing of collateralized loans are no longer available because of insufficient activity.
Federal Finance All
1.44
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
Debt Outstanding
Millions of dollars, end of period
1991
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department 1
4 Export-Import Bank •
5 Federal Housing Administration
6 Government National Mortgage Association participation
certificates
7 Postal Service 6
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 Banks 8
15 Student Loan Marketing Association 9
16 Financing Corporation
17 Farm Credit Financial Assistance Corporation
18 Resolution Funding Corporation
1992
1989
1988
Agency
Sept.
Oct.
Nov.
Jan.
341,386
381,498
411,805
434,668
436,189
438,032
439,670
442,772
440,317
37,981
13
11,978
183
35,668
8
11,033
150
35,664
7
10,985
328
42,159
7
11,376
393
42,409
7
11,267
336
42,638
7
11,267
337
42,951
7
11,267
365
41,035
7
9,809
397
42,872
7
9,809
335
1,615
6,103
18,089
0
0
6,142
18,335
0
0
6,445
17,899
0
0
6,948
23,435
0
0
8,421
22,378
0
0
8,421
22,606
0
0
8,421
22,891
0
0
8,421
22,401
0
0
8,421
24,300
0
303,405
115,727
17,645
97,057
55,275
16,503
1,200
0
0
345,830
135,836
22,797
105,459
53,127
22,073
5,850
690
0
375,407
136,108
26,148
116,064
54,864
28,705
8,170
847
4,522
392,509
117,895
30,941
123,403
53,590
34,194
8,170
1,261
23,055
393,780
106,510
31,502
127,460
52,010
36,821
8,170
1,261
29,9%
395,394
105,945
31,818
128,594
52,488
37,072
8,170
1,261
29,9%
3%,719
107,344
31,099
130,197
52,105
36,497
8,170
1,261
29,996
401,737
107,543
30,262
133,937
52,199
38,319
8,170
1,261
29,9%
397,445
104,607
29,332
133,988
51,673
38,419
8,170
1,261
29,9%
152,417
142,850
134,873
179,083
194,234
192,747
194,837
185,576
183,098
11,972
5,853
4,940
16,709
0
11,027
5,892
4,910
16,955
0
10,979
6,195
4,880
16,519
0
11,370
6,698
4,850
14,055
0
11,261
11,261
8,201
11,261
9,803
8,201
8,201
8,201
9,803
4,850
11,875
0
4,820
11,375
0
4,820
11,375
0
4,820
10,725
0
4,820
10,725
0
59,674
21,191
32,078
58,496
19,246
26,324
53,311
19,265
23,724
52,324
18,890
70,8%
50,694
18,597
88,756
48,534
18,599
89,957
48,534
48,534
18,562
84,931
48,534
18,534
82,481
MEMO
19 Federal Financing Bank debt13
20
21
22
23
24
Lending to federal and federally sponsored agencies
Export-Import Bank
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
Other Lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
1. Consists of mortgages assumed by the Defense Department between 1957
and 1%3 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. On-budget after 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 1%9 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown in 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
18,628
92,018
8,201
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. Since 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
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
A32
1.45
DomesticNonfinancialStatistics • June 1992
NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1991
Type of issue or issuer,
or use
1989
1 All issues, new and refunding1
1990
1992
1991
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
113,646
120,339
154,402
15,744
13,240
11,357
17,734
15,796
12,612
12,256
15,956
By type of issue
2 General obligation
3 Revenue
35,774
77,873
39,610
81,295
55,100
99,302
5,919
9,825
5,253
7,987
3,088
8,269
6,510
11,224
5,871
9,925
3,954
8,658
5,643
6,613
6,212
9,744
By Type of issuer
4 State
5 Special district or statutory authority 2
6 Municipality, county, or township
11,819
71,022
30,805
15,149
72,661
32,510
24,939
80,614
48,849
2,328
8,890
4,526
3,371
6,272
3,597
7,195
605
3,557
1,171
10,817
5,746
1,671
9,435
4,690
1,036
8,243
3,333
3,021
5,162
4,073
3,174
7,511
5,271
7 Issues for new capital, total
84,062
103,235
116,953
12,164
9,586
8,967
13,495
12,020
7,127
7,691
10,637
By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
15,133
6,870
11,427
16,703
5,036
28,894
17,042
11,650
11,739
23,099
6,117
34,607
21,664
13,395
21,447
26,121
8,542
n.a.
1,585
720
1,673
4,119
676
3,391
1,507
1,248
1,573
2,793
916
1,549
1,511
1,744
1,825
1,276
973
1,638
1,297
2,682
1,915
2,621
349
4,631
1,924
488
1,931
3,070
1,083
3,524
2,385
1,194
1,953
868
218
n.a.
1,974
1,643
894
1,683
141
n.a.
1,075
1,412
2,104
1,811
528
3,707
8
9
10
11
12
13
1. Par amounts of long-term issues based on date of sale.
2. Since 1986, has included school districts.
1.46
NEW SECURITY ISSUES
SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data/
Bond Buyer Municipal Data Base beginning 1986. Public Securities Association
for earlier data.
U.S. Corporations
Millions of dollars
1991
Type of issue, offering,
or issuer
1989
1990
July
r
1992
1991
r
r
Aug.
Sept.
r
Oct.
Nov.
Dec.
Jan.
Feb.
r
37,137
1 All issues'
377,836
339,052
455,291
23,155
35,472
32,180
34,893
34,286
32,391
45,000
2 Bonds2
319,965r
298,814r
389,933r
20,473
28,742r
26,759
26,029
25,233
24,871
38,202r
27,601
By type of offering
3 Public, domestic
4 Private placement, domestic 3
5 Sold abroad
179,694r
117,420
22,851
188,778r
86,982r
23,054
287,041r
74,930
27,962r
18,899
n.a.
1,574
26,867r
n.a.
1,875
23,856
n.a.
2,902
23,469
n.a.
2,560
23,164
n.a.
2,070
23,326
n.a.
1,544
34,530"
n.a.
3,671r
26,200
n.a.
1,700
76,175r
49,465r
10,032
18,656r
8,461
157,176r
52,635r
40,018rr
12,71l
17,621
6,597
169,23lr
85,535r
37,809"
13,628
23,994r
9,331
219,637r
3,600
1,500
697
1,457
749
12,471
7,643
1,388
809
1,897
668
16,337r
6,994r
967r
231
1,315
408
16,844
4,732
1,209
744
1,430
958
16,957
4,536
2,044
180
3,073
226
15,175
4,956
1,977
150
2,238
1,085
14,464
7,302r
2,818rr
455
3,761r
2,467r
21,399"
3,844
1,664
1,004
3,569
416
17,104
12 Stocks2
57,870
40,165
n.a.
2,682
6,730
5,421
8,864
9,053
7,520
6,798
9,536
By type of offering
13 Public preferred
14 Common
15 Private placement
6,194
26,030
25,647
3,998
19,443
16,736
17,408
47,860
n.a.
203
2,479
n.a.
1,952
4,778
n.a.
666
4,755
n.a.
3,527
5,337
n.a.
3,240
5,813
n.a.
2,771
4,749
n.a.
739
6,060
n.a.
4,306
5,230
n.a.
9,308
7,446
1,929
3,090
1,904
34,028
5,649
10,171
369
416
3,822
19,738
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
685
1,427
18
143
46
350
3,167
2,050
56
150
8
1,298
1,842
858
0
55
0
2,666
3,623
2,095
16
320
25
2,622
4,054
2,158
0
174
84
2,583
2,684
2,535
0
233
17
2,014
2,040
1,233
426
200
163
2,689
2,541
3,194
78
489
n.a.
3,234
6
7
8
9
10
11
16
17
18
19
20
21
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures represent gross proceeds of issues maturing in more than one year;
they are the principal amount or number of units calculated by multiplying by the
offering price. Figures exclude secondary offerings, employee stock plans,
investment companies other than closed-end, intracorporate transactions, equities sold abroad, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.
2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCES. IDD Information Services, Inc., the Board of Governors of the
Federal Reserve System, and, before 1989, the U.S. Securities and Exchange
Commission.
Securities Market and Corporate Finance
1.47
O P E N - E N D INVESTMENT COMPANIES
A33
Net Sales and Assets
Millions of dollars
1992
1991
Item 1
1991
1990
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan r
Feb.
1 Sales of own shares 2
344,420
464,488
39,329
38,014
37,316
45,218
41,365
51,018
66,048
48,007
3 Net sales
288,441
55,979
342,088
122,400
28,767
10,562
28,128
9,886
26,319
10,997
27,957
17,261
28,454
12,911
39,050
11,968
41,917
24,131
30,867
17,140
4 Assets4
568,517
807,001
690,486
712,782
730,426
753,344
752,798
807,077
823,767
846,880
5 Cash 5
6 Other
48,638
519,875
60,937
746,064
55,293
635,193
52,791
659,992
53,884
676,543
59,902
695,492
59,689
693,109
60,292
746,785
62,289
761,478
63,410
783,470
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 dividends. Excludes reinvestment of capital gains
distributions.
3. Does not includes sales or redemptions resulting from transfers of shares
into or out of money market mutual funds within the same fund family.
1.48
4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership,
which comprises substantially all open-end investment companies registered with
the Securities and Exchange Commission. Data reflect underwritings of new
companies.
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1990
Account
1989
1990
1991
1991r
Ql
Q2
Q3
Q4
Ql
Q2
Q3
Q4r
1 Profits with inventory valuation and
capital consumption adjustment
2 Profits before taxes
3 Profits tax liability
4 Profits after taxes
5
Dividends
Undistributed profits
6
351.7
344.5
138.0
206.6
127.9
78.7
319.0
332.3
135.3
197.0
133.7
63.3
306.8
312.4
124.5
187.9
137.8
50.2
340.2
336.6
137.6
199.1
132.3
66.7
339.8
331.6
137.9
193.7
132.5
61.2
299.8
335.1
138.8
196.3
133.8
62.5
296.1
326.1
127.1
199.0
136.2
62.8
302.1
309.1
119.4
189.7
137.8
51.9
303.5
306.2
123.5
182.7
136.7
46.1
306.1
318.2
128.6
189.6
138.1
51.5
315.6
316.1
126.4
189.7
138.5
51.2
7 Inventory valuation
8 Capital consumption adjustment
-17.5
24.7
-14.2
.8
3.1
-8.7
-6.6
10.2
3.8
4.4
-32.6
-2.7
-21.2
-8.8
6.7
-13.6
9.9
-12.6
-4.8
-7.3
.7
-1.3
SOURCE. Survey of Current Business (U.S. Department of Commerce).
1.50
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data at seasonally adjusted annual rates
1990
Industry
1
Manufacturing
7
3
1990
1991
Air
Other
Public utilities
8
9
10
Ql
Q2
Q3
Q4
Ql
Q2
553.68
534.11
530.13
535.50
524.57
527.86
528.88
544.99
557.48
82.58
110.04
77.95
105.66
78.18
104.63
82.48
111.57
79.03
110.69
81.24
109.90
79.69
107.66
74.51
102.54
76.36
102.54
80.32
101.52
79.63
106.64
9.88
10.02
9.12
9.97
10.12
9.89
10.09
10.09
10.00
9.12
9.29
6.40
8.87
6.20
5.92
10.22
6.55
6.44
10.43
7.56
5.66
9.55
5.87
6.81
7.54
6.82
5.59
11.18
6.48
6.27
10.10
6.68
6.50
9.81
6.52
5.32
9.79
6.54
5.33
9.21
6.88
6.53
9.61
7.70
44.10
23.11
241.43
43.67
22.84
246.37
47.67
23.63
266.00
43.80
23.88
241.32
45.88
24.36
238.87
43.36
23.68
244.19
42.87
21.71
239.50
43.09
23.38
251.42
45.36
22.60
250.37
47.08
23.32
262.20
49.22
23.17
265.68
1. Figures are amounts anticipated by business.
2. "Other" consists of construction, wholesale and retail trade, finance and
Q4
529.20
Transportation
5
6
7
Q3
532.61
Nonmanufacturing
4
19921
1991
19921
insurance, personal and business services, and communication.
SOURCE. Survey of Current Business (U.S. Department of Commerce).
A34
1.51
DomesticNonfinancialStatistics • June 1992
DOMESTIC FINANCE COMPANIES
Assets and Liabilities
Billions of dollars, end of period; not seasonally adjusted
1990
Account
1989
1988
1991
1990
Q2
Q3
Q4
Q1
Q2
Q3
Q4
ASSETS
Accounts receivable, gross1
Consumer
Business
Real estate
426.2
146.2
236.5
43.5
445.7
140.8
256.0
48.9
486.7
136.0
290.8
59.9
468.8
138.6
274.8
55.4
474.0
140.9
275.4
57.7
486.7
136.0
290.8
59.9
478.9
131.6
290.0
57.3
487.9
133.9
295.5
58.5
487.8
132.5
296.6
58.7
491.6
129.6
303.8
58.1
50.0
7.3
52.0
7.7
56.6
9.2
54.3
8.2
55.1
8.6
56.6
9.2
57.0
10.3
58.7
10.8
59.6
12.9
58.5
13.2
7 Accounts receivable, net
8 All other
368.9
72.4
386.1
91.6
420.9
99.6
406.3
95.5
410.3
102.8
420.9
99.T
411.6
103.4
418.4
106.1
415.2
111.9
419.9
116.5
9 Total assets
441.3
477.6
520.6
501.9
513.1
520.6
515.0
524.5
527.1
536.4
15.4
142.0
14.5
149.5
19.4
152.7
15.8
152.4
15.6
148.6
19.4
152.7
22.0
141.2
22.7
140.6
24.0
138.1
24.3
141.3
n.a.
n.a.
50.6
137.9
59.8
35.6
n.a.
n.a.
63.8
147.8
62.6
39.4
n.a.
n.a.
82.7
157.0
66.0
42.8
n.a.
n.a.
72.8
153.0
66.1
41.8
n.a.
n.a.
82.0
156.6
68.7
41.6
n.a.
n.a.
82.7
157.0
66.0
42.8
n.a.
n.a.
77.8
162.4
68.0
43.7
n.a.
n.a.
81.7
164.2
72.2
43.0
n.a.
n.a.
87.4
163.4
72.1
42.1
n.a.
n.a.
83.0
170.6
73.7
43.5
441.3
477.6
520.6
501.9
513.1
520.6
515.0
524.5
527.1
536.4
1
2
3
4
5 LESS: Reserves for unearned income
Reserves for losses
6
LIABILITIES AND CAPITAL
10 Bank loans
11 Commercial paper
Debt
Other short-term
Long-term
Due to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits
12
13
14
15
16
17
18 Total liabilities and capital
1. Excludes pools of securitized assets.
1.52
DOMESTIC FINANCE COMPANIES
Business Credit Outstanding and Net Change 1
Millions of dollars, end of period; seasonally adjusted, except as noted
1992
1991
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
258,957
292,638
309,709
307,599
310,876
311,632
309,709
306,905
308,162
39,479
29,627
698
38,110
31,784
951
33,204
35,404
819
34,119
34,822
797
34,167
33,989
769
33,664
33,375
746
33,204
35,404
819
31,764
33,841
879
31,886
34,433
878
Wholesale
Automotive
Equipment
All other
Pools of securitized assets
33,814
6,928
9,985
0
32,283
11,569
9,126
2,950
32,487
9,790
8,459
4,905
30,072
10,594
8,695
4,053
31,831
11,075
8,407
4,458
32,292
10,414
8,418
4,639
32,487
9,790
8,459
4,905
31,788
9,274
8,072
4,661
32,877
9,302
8,271
4,690
Leasing
9 Automotive
10 Equipment
11 Pools of securitized assets
26,804
68,240
1,247
39,129
75,626
1,849
44,445
87,821
1,820
45,387
86,732
1,844
45,837
87,701
1,803
45,299
90,079
1,885
44,445
87,821
1,820
44,277
88,849
1,837
43,009
88,958
1,753
12 Loans on commercial accounts receivable and factored
commercial accounts receivable
13 All other business credit
18,511
23,623
22,475
26,784
23,859
26,697
23,204
27,279
23,295
27,544
23,338
27,483
23,859
26,697
24,600
27,062
24,575
27,531
1 Total
Retail financing of installment sales
2 Automotive
3 Equipment
4 Pools of securitized assets
5
6
7
8
Net change (during period)
24,066
33,681
17,071
2,576
3,277
756
-1,923
-2,804
1,257
2,269
1,442
-26
-1,369
2,157
253
-4,906
3,619
-132
-547
1,676
-36
48
-833
-28
-503
-614
-23
-460
2,029
73
-1,440
-1,562
60
122
591
-1
Wholesale
Automotive
Equipment
All other
Pools of securitized assets
861
957
628
0
-1,532
4,641
-859
2,950
204
-1,779
-668
1,955
-564
-37
-17
545
1,759
481
-289
405
461
-662
11
181
195
-624
41
266
-699
-516
-387
-244
1,089
28
199
29
Leasing
9 Automotive
10 Equipment
11 Pools of securitized assets
2,111
10,581
526
12,325
7,386
602
5,316
12,195
-29
759
587
165
450
969
-41
-538
2,378
82
-854
-2,258
-65
-168
1,028
17
-1,268
109
-84
825
3,964
1,383
-162
91
43
520
741
-25
1 Total
Retail financing of installment sales
7 Automotive
3 Equipment
4 Pools of securitized assets
5
6
7
8
12 Loans on commercial accounts receivable and factored
commercial accounts receivable
13 All other business credit
1. Data in this table also appear in the Board's G.20 (422) monthly
release. For ordering address, see inside front cover.
statistical
2. Data on pools of securitized assets are not seasonally adjusted,
Real Estate
1.53
A35
MORTGAGE MARKETS Conventional Mortgages on New Homes
Millions of dollars, except as noted
1991
Item
1989
1990
1992
1991
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
Terms1
1 Purchase price (thousands of dollars)
2 Amount of loan (thousands of dollars)
3 Loan-price ratio (percent)
4 Maturity (years)
J Fees and charges (percent of loan amount)2
6 Contract rate (percent per year)
159.6
117.0
74.5
28.1
2.06
9.76
153.2
112.4
74.8
27.3
1.93
9.68
155.0
114.0
75.0
26.8
1.71
9.02
157.8
114.3
73.3
25.9
1.86
9.00
153.4
115.0
76.5
27.5
1.61
8.78
162.6
116.0
73.5
26.4
1.53
8.38
159.1
113.8
73.1
26.4
1.50
8.28
153.9
114.9
75.2
26.2
1.85
8.17
154.7
110.2
72.9
24.5
1.84
8.29
167.0
123.2
76.1
25.2
1.75
8.21
Yield (percent per year)
1 OTS series3
HUD series4
10.11
10.21
10.01
10.08
9.30
9.20
9.30
8.88
9.04
8.76
8.64
8.67
8.53
8.30
8.49
8.69
8.65
8.74
8.51
8.91
10.24
9.71
10.17
9.51
9.25
8.59
9.06
8.60
8.71
8.34
8.69
8.09
8.10
7.81
8.72
7.81
8.74
8.01
8.85
8.20
8
SECONDARY MARKETS
9
10
Yield (percent per year)
FHA mortgages (HUD series)5
GNMA securities
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
104,974
19,640
85,335
113,329
21,028
92,302
122,837
21,702
101,135
124,954
21,636
103,318
125,884
21,576
104,308
126,624
21,547
105,077
128,983
21,796
107,187
131,058
21,981
109,077
133,399
21,980
111,419
136,506
21,902
114,604
Mortgage transactions (during period)
14 Purchases
22,518
23,959
37,202
3,032
3,408
3,299
5,114
4,809
5,358
7,282
Mortgage commitments (during period)1
15 Issued8
16 To sell9
n.a.
n.a.
23,689
5,270
40,010
7,608
3,196
762
4,122
917
3,806
569
5,285
78
7,202
249
6,639
343
6,834
1,143
Mortgage holdings (end of period)9
17 Total
18 FHA/VA-insured
19 Conventional
20,105
590
19,516
20,419
547
19,871
24,131
484
23,283
23,906
471
23,435
24,922
462
24,460
25,239
468
24,772
26,809
460
26,349
27,384
456
26,928
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Mortgage transactions (during period)
20 Purchases
21 Sales
78,588
73,446
75,517
73,817
97,727
92,478r
9,155
9,305
8,644
7,449
10,170
9,545
11,475
9,537r
11,475
10,521r
n.a.
12,061
n.a.
14,002
Mortgage commitments (during period)10
22 Contracted
88,519
102,401
114,031
7,468
6,358
11,594
16,961
15,683
n.a.
n.a.
FEDERAL HOME LOAN MORTGAGE CORPORATION
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; 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 rates on loans closed, assuming prepayment at
the end of ten years; from Office of Thrift Supervision (OTS).
4. Average contract rates on new commitments for conventional first mortgages; from U.S. Department of Housing and Urban Development (HUD).
5. Average gross yields 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. Large monthly movements in average yields may reflect
market adjustments to changes in maximum permissible contract rates.
6. Average net yields to investors on fully modified pass-through securities
backed by mortgages and guaranteed by the Government National Mortgage
Association (GNMA), assuming prepayment in twelve years on pools of thirtyyear mortgages insured by the Federal Housing Administration or guaranteed by
the Department of Veterans Affairs carrying the prevailing ceiling rate. Monthly
figures are averages of Friday figures from the Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to one- to four-family loan commitments accepted in the Federal National
Mortgage Association's (FNMA's) free market auction system, and through the
FNMA-GNMA tandem plans.
8. Does not include standby commitments issued, but includes standby
commitments converted.
9. Includes participation as well as whole loans.
10. 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, while the
corresponding data for FNMA exclude swap activity.
A36
1.54
Domestic Financial Statistics • June 1992
MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1990
Type of holder and property
1 All holders
2
3
4
5
By type of property
One- to four-family residences
Multifamily residences
Commercial
Farm
By type of holder
6 Major financial institutions
7 Commercial banks
8
One- to four-family
9
Multifamily
10
Commercial
11
Farm
12 Savings institutions3
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
Finance companies4
1988
1989
1991
1990
Q4
Ql
Q2
Q3
Q4P
3,270,118
3,676,616
3,912,217
3,912,217
3,947,700
3,999,621
4,016,644
4,048,767
2,201,231
291,405
692,236
85,247
2,549,935
303,416
739,240
84,025
2,765,111
307,069
756,075
83,962
2,765,111
307,069
756,075
83.962
2,790,684
310,746
762,328
83,942
2,837,989
311,817
766,043
83,771
2,870,100
308,357
755,041
83,145
2,904,287
310,276
750,473
83,730
1,831,472
674,003
334,367
33,912
290,254
15,470
924,606
671,722
110,775
141,433
676
232,863
11,164
24,560
187,549
9,590
1,931,537
767,069
389,632
38,876
321,906
16,656
910,254
669,220
106,014
134,370
650
254,214
12,231
26,907
205,472
9,604
1,913,945
844,456
455,698
37,008
334,520
17,231
801,628
600,154
91,806
109,168
500
267,861
13,005
28,979
215,121
10,756
1,913,945
844,456
455,698
37,008
334,520
17,231
801,628
600,154
91,806
109,168
500
267,861
13,005
28,979
215,121
10,756
1,902,050
856,499
461,916
38,379
338,697
17,507
776,551
583,694
88,743
103,647
468
269,000
11,737
29,493
216,768
11,001
1,898,114
871,222
476,188
37,562
339,433
18,039
755,219
570,044
86,448
98,280
447
271,674
11,743
30,006
219,204
10,721
1,860,161
870,726
478,678
36,394
337,331
18,323
719,341
547,455
81,880
89,603
402
270,094
11,720
29,%2
218,179
10,233
1,845,625
875,914
484,5%
37,523
335,357
18,438
698,754
533,850
79,344
85,183
377
270,958
11,763
30,115
218,111
10,%8
37,846
45,476
48,777
48,777
48,187
48,972
50,658
51,567
23 Federal and related agencies
24 Government National Mortgage Association
25
One- to four-family
26
Multifamily
27 Farmers Home Administration3
28
One- to four-family
29
Multifamily
Commercial
30
31
Farm
32
Federal Housing and Veterans Administration
33
One- to four-family
34
Multifamily
35 Federal National Mortgage Association
36
One- to four-family
37
Multifamily
38 Federal Land Banks
39
One- to four-family
40
Farm
41
Federal Home Loan Mortgage Corporation
42
One- to four-family
43
Multifamily
200,570
26
26
0
42,018
18,347
8,513
5,343
9,815
5,973
2,672
3,301
103,013
95,833
7,180
32,115
1,890
30,225
17,425
15,077
2,348
209,498
23
23
0
41,176
18,422
9,054
4,443
9,257
6,087
2,875
3,212
110,721
102,295
8,426
29,640
1,210
28,430
21,851
18,248
3,603
250,761
20
20
0
41,439
18,527
9,640
4,690
8,582
8,801
3,593
5,208
116,628
106,081
10,547
29,416
1,838
27,577
21,857
19,185
2,672
250,761
20
20
0
41,439
18,527
9,640
4,690
8,582
8,801
3,593
5,208
116,628
106,081
10,547
29,416
1,838
27,577
21,857
19,185
2,672
264,189
22
22
0
41,307
18,522
9,720
4,715
8,350
9,492
3,600
5,891
119,1%
108,348
10,848
29,253
1,884
27,368
23,221
20,570
2,651
276,798
22
22
0
41,430
18,521
9,898
4,750
8,261
10,210
3,729
6,480
122,806
111,560
11,246
29,152
2,041
27,111
23,649
21,120
2,529
283,455
22
22
0
41,566
18,598
9,990
4,829
8,149
11,395
3,948
7,446
125,451
113,6%
11,755
29,053
2,124
26,929
23,906
21,489
2,417
282,731
23
23
0
41,713
18,496
10,141
4,905
8,171
12,744
4,384
8,360
128,578
116,336
12,242
28,970
2,225
26,745
24,881
22,529
2,352
44 Mortgage pools or trusts 6
45 Government National Mortgage Association
46
One- to four-family
47
Multifamily
48 Federal Home Loan Mortgage Corporation
49
One- to four-family
50
Multifamily
51 Federal National Mortgage Association
52
One- to four-family
53
Multifamily
54 Farmers Home Administration5
55
One- to four-family
Multifamily
56
57
Commercial
58
Farm
811,847
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
0
38
40
946,766
368,367
358,142
10,225
272,870
266,060
6,810
228,232
219,577
8,655
80
21
0
26
33
1,110,555
403,613
391,505
12,108
316,359
308,369
7,990
299,833
291,194
8,639
66
17
0
24
26
1,110,555
403,613
391,505
12,108
316,359
308,369
7,990
299,833
291,194
8,639
66
17
0
24
26
1,144,876
409,929
397,631
12,298
328,215
319,978
8,237
312,101
303,554
8,547
62
14
0
23
24
1,186,251
413,707
401,304
12,403
341,132
332,624
8,509
331,089
322,444
8,645
55
13
0
21
21
1,228,788
422,501
409,826
12,675
348,843
341,183
7,660
351,917
343,430
8,487
52
12
0
20
20
1,272,155
429,772
416,425
13,347
361,785
354,214
7,571
372,107
363,615
8,492
47
11
0
19
17
59 Individuals and others 7
60 One- to four-family
61
Multifamily
62 Commercial
63 Farm
426,229
259,971
79,209
67,618
19,431
588,815
414,763
81,634
73,023
19,395
636,955
449,440
84,408
83,816
19,291
636,955
449,440
84,408
83,816
19,291
636,585
447,344
84,227
85,790
19,224
638,457
447,339
83,452
88,495
19,171
644,241
451,988
83,740
89,424
19,089
648,256
454,841
83,772
90,628
19,014
1. Based on data from various institutional and governmental sources, with
figures for some quarters estimated in part by the Federal Reserve. Multifamily
debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by
bank trust departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by institutions insured by the Federal Savings and Loan Insurance
Corporation include loans in process and other contra-assets (credit balance
accounts that must be subtracted from the corresponding gross asset categories to
yield net asset levels).
4. Assumed to be entirely loans on one- to four-family residences.
5. Securities guaranteed by the Farmers Home Administration (FmHA) sold to
the Federal Financing Bank were reallocated from FmHA mortgage pools to
FmHA mortgage holdings in 1986:4 because of accounting changes by the FmHA.
6. Outstanding principal balances of mortgage-backed securities insured or
guaranteed by the agency indicated. Includes private pools, which are not shown
as a separate line item.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.
Consumer Installment
1.55
Credit
A37
CONSUMER INSTALLMENT CREDIT Total Outstanding and Net Change 1
Millions of dollars, amounts outstanding, end of period
1991
Holder and type of credit
1992
1988
Sept.
Oct.
Nov.
Dec.
Jan r
Feb.
Seasonally adjusted
1 Total
664,049
718,863
735,102
729,152
730,317
730,147
729,420
729,473
729,274
2
3
4
5
284,214
174,104
25,348
180,383
290,676
199,082
22,471
206,633
284,585
220,110
20,919
209,487
270,219
232,070
18,892
207,971
270,013
233,661
18,943
207,700
268,123
234,666
19,059
208,300
267,909
234,504
19,116
207,891
268,256
234,816
18,649
207,752
267,780
236,001
18,292
207,202
Automobile
Revolving
Mobile home
Other
Not seasonally adjusted
674,855
730,901
748,300
732,183
730,722
732,256
743,548
733,256
725,774
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets
324,792
146,212
88,340
48,438
63,399
3,674
n.a.
342,770
140,832
93,114
44,154
57,253
3,935
48,843
347,466
137,450
92,911
43,552
45,616
4,822
76,483
335,509
132,471
93,305
37,281
37,036
4,753
91,829
335,258
131,778
92,746
37,359
37,424
4,529
91,628
334,904
130,679
92,373
38,651
36,987
4,388
94,274
340,930
129,566
92,779
43,130
36,014
4,362
96,767
335,983
126,677
91,922
40,580
35,153
4,377
98,564
331,317
127,281
91,471
39,108
34,510
4,151
97,936
By major type of credit3
14 Automobile
15 Commercial banks
16 Finance companies
17 Pools of securitized assets
284,328
123,392
97,245
0
290,705
126,288
82,721
18,235
284,813
126,259
74,3%
24,537
273,354
119,730
69,853
26,808
272,092
119,276
69,364
26,803
268,927
118,502
67,907
26,237
268,284
117,494
66,549
27,997
266,888
116,750
65,151
29,431
265,183
116,159
65,412
28,482
18 Revolving
19 Commercial banks
20 Retailers
21 Gasoline companies
22 Pools of securitized assets
184,045
123,020
43,833
3,674
n.a.
210,310
130,811
39,583
3,935
23,477
232,370
132,433
39,029
4,822
44,335
231,281
125,524
32,964
4,753
56,438
231,862
126,234
33,055
4,529
56,290
235,674
125,734
34,319
4,388
59,459
247,519
132,625
38,652
4,362
60,139
239,019
126,736
36,169
4,377
60,087
235,033
123,905
34,727
4,151
60,633
25,143
9,025
7,191
22,240
9,112
4,716
20,666
9,763
5,252
18,996
9,614
5,300
19,026
9,600
5,358
19,021
9,656
5,401
18,877
9,552
5,520
18,808
9,638
5,509
18,460
9,409
5,509
181,339
69,355
41,776
4,605
n.a.
207,646
76,559
53,395
4,571
7,131
210,451
79,011
57,801
4,523
7,611
208,553
80,641
57,318
4,317
8,583
207,742
80,148
57,056
4,304
8,535
208,633
81,012
57,371
4,332
8,578
208,868
81,259
57,497
4,478
8,631
208,541
82,859
56,017
4,411
9,046
207,098
81,844
56,360
4,381
8,821
6 Total
7
8
9
10
11
12
13
23 Mobile home
24 Commercial banks
25 Finance companies
26 Other
27 Commercial banks
28 Finance companies
29 Retailers
30 Pools of securitized assets 2
1. The Board's series on amounts of credit covers most short- and intermediate-term credit extended to individuals that is scheduled to be repaid (or has the
option of repayment) in two or more installments.
Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering address, see inside front cover.
2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.
A38
DomesticNonfinancialStatistics • June 1992
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT 1
Percent per year, except as noted
1992
1991
Item
1989
1990
1991
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
INTEREST RATES
Commercial banks2
48-month new car 3
24-month personal
120-month mobile home
Credit card
12.07
15.44
14.11
18.02
11.78
15.46
14.02
18.17
11.14
15.18
13.70
18.23
11.06
15.24
13.73
18.24
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10.61
14.88
13.37
18.19
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
9.89
14.39
12.93
18.09
Auto finance companies
5 New car
6 Used car
12.62
16.18
12.54
15.99
12.41
15.60
12.40
15.63
12.38
15.60
12.23
15.46
10.79
15.06
10.41
14.90
10.04
14.34
10.19
14.00
54.2
46.6
54.6
46.1
55.1
47.2
55.4
47.2
55.4
47.2
55.4
47.0
54.1
47.0
53.7
46.9
53.5
48.4
53.8
48.0
91
97
87
95
88
%
88
97
87
%
88
97
88
%
88
93
89
97
89
97
12,001
7,954
12,071
8,289
12,494
8,884
12,518
8,902
12,460
8,9%
12,684
9,077
13,245
9,029
13,476
9,105
13,135
9,007
13,340
8,912
1
2
3
4
OTHER TERMS 4
Maturity (months)
7 New car
8 Used car
Loan-to-value
9 New car
10 Used car
ratio
Amount financed (dollars)
11 New car
12 Used car
1. 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 only for the second month of each quarter.
3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies.
Flow of Funds
1.57
A39
F U N D S RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data at seasonally adjusted annual rates
1991
1990
Instrument or sector
Q2
Q3
Q4
Qi
Q2
Q3
Q4
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors ..
722.8
767.2
714.7
644.5
465.9
669.3
593.2
479.9
434.5
538.9
476.1
414.1
By lending sector and instrument
7 U.S. government
Treasury securities
4 Agency issues and mortgages
143.9
142.4
1.5
155.1
137.7
17.4
146.4
144.7
1.6
246.9
238.7
8.2
278.2
291.9
-13.8
239.6
234.2
5.4
242.3
243.6
-1.3
271.5
272.5
-1.0
199.2
223.2
-24.0
269.1
275.3
-6.2
365.5
394.3
-28.8
278.7
274.9
3.8
5 Private
578.9
612.1
568.4
397.6
187.7
429.7
350.9
208.5
235.2
269.7
110.6
135.4
487.1
83.5
79.1
324.5
234.9
24.4
71.6
-6.4
91.8
33.5
9.9
1.6
46.8
463.5
53.7
103.4
306.5
231.0
16.7
60.8
-2.1
148.6
50.4
40.5
11.9
45.8
414.9
65.0
74.3
275.7
218.0
16.4
42.7
-1.5
153.5
43.1
39.9
21.4
49.1
328.5
45.5
47.7
235.3
215.2
3.6
16.7
-.1
69.2
14.3
1.5
9.7
43.7
254.7
32.3
85.8
136.6
139.2
3.2
-5.5
-.2
-67.0
-16.5
-25.7
-18.4
-6.4
335.2
56.2
66.8
212.2
218.4
-7.5
2.5
-1.2
94.5
14.2
26.7
-.7
54.4
277.3
36.5
30.2
210.6
187.6
17.0
4.8
1.3
73.6
13.4
-6.9
19.3
47.7
250.2
18.3
65.7
166.1
158.3
3.6
4.0
.2
-41.7
-4.2
-20.6
-34.4
17.6
289.3
25.3
83.7
180.3
140.5
14.7
25.0
.2
-54.0
-21.2
3.2
-6.9
-29.1
320.2
37.7
104.1
178.4
161.5
4.3
14.9
-2.3
-50.5
-7.0
-36.1
-16.1
8.7
179.8
37.9
88.3
53.6
115.0
-14.1
-44.6
-2.6
-69.2
-26.3
-22.9
-42.4
22.4
229.5
28.2
67.1
134.2
139.8
8.1
-17.5
3.8
-94.1
-11.3
-47.0
-8.1
-27.6
83.0
302.2
193.7
-10.6
65.9
138.5
48.9
315.8
247.4
-7.5
62.4
192.5
63.2
287.3
217.9
1.6
50.0
166.3
42.6
257.8
97.3
2.5
15.3
79.5
24.4
160.3
3.1
2.6
-21.6
22.1
48.9
274.5
106.3
-5.5
14.1
97.8
34.6
223.8
92.5
8.7
11.2
72.6
12.4
165.5
30.5
1.1
4.8
24.6
25.5
169.7
40.0
4.7
5.8
29.4
28.0
186.9
54.8
1.6
6.6
46.6
20.2
108.3
-17.9
.9
-47.2
28.5
23.8
176.1
-64.4
3.4
-51.7
-16.0
75 Foreign net borrowing in United States
?6
77 Bank loans n.e.c
78 Open market paper
29 U.S. government loans
6.2
7.4
-3.6
3.8
-1.4
6.4
6.9
-1.8
8.7
-7.5
10.6
5.3
-.1
13.1
-7.7
23.5
21.6
-2.9
12.3
-7.5
15.6
16.4
4.0
6.4
-11.2
36.3
20.7
1.3
23.1
-8.8
26.2
1.9
2.0
25.6
-3.3
19.0
28.6
-5.2
15.6
-20.0
62.8
11.5
8.1
46.7
-3.5
-59.6
14.7
-3.5
-51.9
-18.8
22.7
16.5
1.4
16.0
-11.1
36.4
22.9
9.9
14.9
-11.4
30 Total domestic plus foreign
729.0
773.6
725.3
668.0
481.4
705.6
619.4
498.9
497.2
479.3
498.8
450.5
7
8
9
10
11
1?
n
14
IS
16
17
18
19
?0
?1
77
24
By instrument
Debt capital instruments
Tax-exempt obligations
Corporate bonds
Home mortgages
Multifamily residential
Commercial
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
By borrowing sector
State and local government
Nonfinancial business
Nonfarm noncorporate
Corporate
Financial sectors
31 Total net borrowing by financial sectors
264.1
213.4
191.0
168.3
135.4
192.3
92.0
220.7
101.3
83.2
141.8
215.3
37 U.S. government-related
33 Sponsored-credit-agency securities
34 Mortgage pool securities
35 Loans from U.S. government
171.8
30.2
142.3
-.8
119.8
44.9
74.9
.0
151.0
25.2
125.8
.0
167.4
17.1
150.3
-.1
157.0
8.8
148.2
.0
172.8
11.6
161.2
.0
146.2
13.7
132.5
.0
185.6
37.1
148.9
-.5
149.6
13.1
136.5
.0
118.0
-29.7
147.6
.0
172.9
20.6
152.3
.0
187.6
31.1
156.3
.2
36
37
38
39
40
41
92.4
44.2
.4
-3.6
26.9
24.4
93.7
18.2
.3
.6
54.8
19.7
40.0
17.7
.0
1.9
31.3
-11.0
.9
15.6
.3
1.2
8.6
-24.7
-21.6
44.5
-.1
3.7
-31.7
-38.0
19.5
82.7
.2
2.1
-38.6
-26.9
-54.3
-64.1
.1
2.0
35.1
-27.3
35.2
24.9
.6
1.1
24.2
-15.7
-48.3
38.1
.1
1.3
-52.0
-35.8
-34.7
63.1
-.1
-2.9
-46.3
-48.5
-31.1
10.8
.9
9.6
-16.0
-36.4
27.7
66.0
-1.2
6.7
-12.3
-31.5
29.5
142.3
92.4
6.2
14.3
19.6
8.1
4.7
.4
39.1
44.9
74.9
93.7
-3.0
5.2
19.9
1.9
33.5
3.6
32.5
25.2
125.8
40.0
-1.4
6.2
-14.1
-1.4
31.1
-1.9
21.4
17.0
150.3
.9
-1.1
-27.7
-31.2
-.5
23.2
-1.9
40.1
8.8
148.2
-21.6
-12.9
-5.4
-39.6
-2.7
6.0
-.2
33.3
11.6
161.2
19.5
-9.9
-29.5
-45.0
4.1
47.4
-2.7
55.1
13.7
132.5
-54.3
-5.8
-42.0
-30.9
-2.7
1.1
-1.4
27.5
36.7
148.9
35.2
14.2
-30.8
-20.6
1.3
25.1
.3
45.6
13.1
136.5
-48.3
-17.9
-8.0
-43.2
1.9
-9.4
-.6
28.9
-29.7
147.6
-34.7
-11.9
-3.3
-51.4
-.9
-4.8
-.1
37.7
20.6
152.3
-31.1
-8.5
-7.9
-37.7
-3.3
-6.8
4.0
29.2
31.3
156.3
27.7
-13.1
-2.4
-26.3
-8.6
45.0
-4.3
37.5
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
By borrowing sector
47 Sponsored credit agencies
43
44
45 Commercial banks
46 Bank affiliates
47 Savings and loan associations
48 Mutual savings banks
49 Finance companies
50 Real estate investment trusts (REITs)
51 Securitized credit obligation (SCO) issuers
A40
DomesticNonfinancialStatistics • June 1992
1.57—Continued
1990
Transaction category or sector
1987
1988
1989
1990
1991
1991
Q2
Q3
Q4
Q1
Q2
Q3
Q4
All sectors
52 Total net borrowing, all sectors
993.1
987.0
916.3
836.3
616.9
897.8
711.3
719.7
598.5
562.5
640.6
665.8
53
54
55
56
57
58
59
60
316.4
83.5
130.7
324.9
33.5
2.7
32.3
69.1
274.9
53.7
128.5
306.7
50.4
39.3
75.4
58.1
297.3
65.0
97.3
275.7
43.1
41.6
65.9
30.4
414.4
45.5
84.8
235.6
14.3
-.2
30.7
11.4
435.1
32.3
146.7
136.5
-16.5
-18.1
-43.6
-55.6
412.4
56.2
170.2
212.3
14.2
30.1
-16.3
18.6
388.5
36.5
-32.0
210.7
13.4
-2.8
79.9
17.1
457.5
18.3
119.2
166.8
-4.2
-24.7
5.4
-18.6
348.8
25.3
133.2
180.4
-21.2
12.6
-12.2
-68.4
387.1
37.7
182.0
178.3
-7.0
-42.5
-114.3
-58.7
538.4
37.9
115.5
54.5
-26.3
-11.9
-42.5
-25.1
466.1
28.2
156.1
133.0
-11.3
-30.4
-5.5
-70.3
61 MEMO: U.S. government, cash balance
-7.9
10.4
-5.9
8.3
14.7
-17.6
18.4
24.2
34.6
-35.8
-14.6
74.4
Totals net of changes in U.S. government cash balances
62 Net borrowing by domestic nonfinancial sectors
63 Net borrowing by U.S. government
730.7
151.8
756.8
144.7
720.6
152.3
636.2
238.6
451.2
263.5
686.9
257.2
574.7
223.8
455.7
247.3
399.9
164.6
574.7
304.9
490.8
380.2
339.7
204.2
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
External corporate equity funds raised in United States
64 Total net share issues
65 Mutual funds
66 All other
67 Nonfinancial corporations
68 Financial corporations
69 Foreign shares purchased in United States
7.1
-119.3
-65.4
15.8
208.6
56.4
-19.5
27.0
116.1
179.8
237.5
300.9
70.2
-63.1
-75.5
14.5
-2.1
6.1
-125.4
-129.5
3.2
.9
38.5
-103.9
-124.2
3.0
17.3
65.7
-50.0
-63.0
6.1
6.9
150.6
58.0
17.5
6.4
34.2
77.1
-20.7
-48.0
3.3
23.9
45.9
-65.4
-74.0
6.5
2.2
83.7
-56.7
-61.0
2.8
1.6
97.6
18.5
-12.0
4.3
26.2
125.2
54.6
11.0
7.0
36.6
178.1
59.4
17.0
7.0
35.3
201.3
99.6
54.0
7.2
38.4
Flow of Funds
1.58
A41
DIRECT A N D INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data at seasonally adjusted annual rates
1991
Transaction category or sector
Q2
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
2 Total net advances by federal agencies and foreign
sectors
248.0
Q3
Q4r
Qlr
r
Q2
593.2 R
479.9
347.4
190.8
282.9
100.9
185.2
-26.9
31.0
142.0
176.3
-27.3
56.4
45.6
180.5
-15.7
-19.6
140.1
176.0
-35.8
2.5
36.1
163.6
30.8
59.6
63.6
182.4
26.2
75.1
-3.7
141.9
-24.2
76.8
28.1
28.8
164.0
60.2
30.6
123.9
31.1
45.8
714.7
644.5 R
188.1
261.7
246.8
30.2
74.4
137.9 184.1
-11.0 -24.7
31.0
27.8
99.4
173.7
-38.0
9.8
3
4
5
6
By instrument
U.S. government securities
Residential mortgages
Federal Home Loan Bank advances to thrifts
Other loans and securities
70.1
139.1
24.4
14.3
85.2
86.3
19.7
16.8
7
8
9
10
By lender
U.S. government
Sponsored credit agencies and mortgage pools
Monetary authority
Foreign
-7.9
169.3
24.7
61.8
-9.4
112.0
10.5
95.0
125.3
-7.3
72.7
33.6
166.7
8.1
53.2
Agency and foreign borrowing not included in line I
11 Sponsored credit agencies and mortgage pools
12 Foreign
171.8
119.8
6.4
151.0
10.6
167.4
23.5
157.0
15.6
172.8
36.3
146.2
26.2
185.6
19.0
149.6
118.0
6.2
62.8
-59.6
13 Total private domestic funds advanced
652.8
685.3
688.2
573.7r
391.6
588.2
418.2R
493.7
363.9
383.6
14
15
16
17
18
19
246.3
83.5
67.5
267.2
65.0
65.5
96.5
183.1
-11.0
340.0
45.5
63.4r
34.6r
65.6r
-24.7
335.7
32.3
83.2
-31.3
-66.3
-38.0
311.5
56.2
75.7
25.7
92.1
-26.9
246.6
36.5
159.8
24.4
189.7
53.7
94.4
161.3
205.9
19.7
28.2r
52.6r
-27.3
411.9
18.3
95.6
-18.6
-29.2
-15.7
208.7
336.2
25.3
37.7
73.5
97.0
-20.9 - 2 0 . 8
41.5 -115.0
-35.8 -48.5
497.3
538.5
534.0
388.7 R
348.4
282.4
299.41
519.5
307.4
135.3
136.8
149.1
76.2
157.0
176.4
87.1
177.0 121.2
-90.9 -153.4r
197.9 183.7
249.9 237.2r
92.7 140.9
-157.3 -211.9
215.5 241.6
197.6 111.7
107.6
-160.8
135.6
216.9r
61.8
-170.8
188.3
440.2
123.3
-173.6
209.4
148.4
By source of funds
25 Private domestic deposits and repurchase agreements .
26 Credit market borrowing
27 Other sources
28 Foreign funds
29 Treasury balances
30 Insurance and pension reserves
31 Other.net
173.8
92.4
231.1
43.7
-5.8
94.9
98.4
229.6
93.7
215.3
9.3
7.3
174.1
24.5
209.5
40.0
284.5
-9.9
-3.4
192.0
105.8
-5.7
19.5
268.6
23.5
-22.8
209.1
36.9
45.5
-54.3 r
308.2r
87.5
13.7
128.3
78.7r
Private domestic nonfinancial investors
32 Direct lending in credit markets
33 U.S. government securities
34 State and local obligations
35 Corporate and foreign bonds
36 Open market paper
37 Other loans and mortgages
247.9r
100.5
96.1
6.4
13.3
31.5
240.5
134.5
57.3
-32.2
41.9
39.0
325.4
175.4
40.0
21.3
53.0
35.7
64.6r
134.6
7.6
-120.3r
12.8
29.8r
9.4
-5.7
-13.5
38 Deposits and currency
39 Currency
40 Checkable deposits
41 Small time and savings accounts
42 Money market fund shares
43
Large time deposits
44 Security repurchase agreements
45 Deposits in foreign countries
190.3
19.0
-.3
76.0
28.9
47.6
21.6
-2.5
233.1
14.7
12.5
122.4
28.1
24.7
19.7
22.6r
52.0
4.5
19.5
19.9r
34.5 -32.7
-91.2 -15.5
-13.8
18.2
7.5
7.8
74.2
30.9
-4.1 r
40.8r
106.0
-70.7
-26.5
20.4
16.9
-23.5
46 Total of credit market instruments, deposits, and
currency
438.2
U.S. government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
LESS; Federal Home Loan Bank advances
20 Total credit market funds advanced by private financial
institutions
21
22
23
24
By lending institution
Commercial banks
Savings institutions
Insurance and pension funds
Other financial institutions
MEMO
47 Public holdings as percent of total
48 Private financial intermediation (percent)
49 Total foreign funds
Corporate equities not included above
50 Total net issues
51 Mutual fund shares
52 Other equities
53 Acquisitions by financial institutions
54 Other net purchases
120.2
118.0
21.2
40.6
32.9
-11.2
-21.6
194.2
125.5
62.7
-26.5
2.9
29.6
185.9r
123.3r
24.9
-23.4 r
21.7
47.7
9.6
-21.0
-36.6
21.9
225.7
11.7
83.0
.6
98.2
86.7
9.1
14.9
4.4
25.9
77.6
7.1
-119.3
-65.4
-15.1
y
369.0
-20.7
5.7
235.5
148.5
26.9
78.6
104.3
22.2
1.0
53.3
334.5r
24.0
5.3
164.1
141.0r
34.0
76.2
105.5
70.2
-63.1
160.2
18.8
42.3
r
22.6
.4
59.4
56.0
-42.1
-20.5
7.r
-1.0
62.8
38.5
6.1
-125.4 -103.9
18.9
4.1
-123.3 -84.3
1. Line 1 of table 1.57.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
13. Line 1 less line 2 plus lines 11 and 12. Also line 20 less line 26 plus line 32.
Also sum of lines 28 and 47 less lines 40 and 46.
18. Includes farm and commercial mortgages.
25. Line 38 less lines 39 and 45.
26. Excludes equity issues and investment company shares. Includes line 19.
28. Foreign deposits at commercial banks, plus bank borrowings from foreign
branches, plus liabilities of foreign banking agencies to foreign affiliates, less
claims on foreign affiliates and deposits by banking institutions in foreign banks.
29. Demand deposits and note balances at commercial banks.
FRASER
27. r
-2.2
35.2
507.1
-28.5
3.4
222.1
310.1
-2.8
-9.6
41.0
61.6
50.9
186.6
-48.5
24.6
30.1
-153.2
218.3
119.2
214.6 -118.1
-48.3 -34.7
367.2
141.1
9.4 -99.3
20.6 -22.3
178.7
291.6
310.1
-180.6
8.2
134.5
16.7
15.2
4.8
-46.6
162.1
18.1
231.2
38.7
56.3
104.8
171.0
-60.8
-56.7
22.1
19.2
-85.7
16.7
-94.7
6.0
14.2
1.0
-22.2
-63.5
-72.8
3.0
17.5
38.2
105.2
48.3
56.9
84.5
40.0
44.6
55.9
-40.2
116.1
97.6
18.5
80.9
35.2
179.8
42.1
-66.4
-36.6
26.3
138.7 R
419.9
NOTES BY LINE NUMBER.
Digitized for
-2.6
11.8
Q31
39.2r
67.8r
77.2
51.3
89.0
25.1
41.1
48.0
83.1
56. r
71.6r
162.6
15.8
208.6
150.6
58.0
76.5
132.1
56.4
-19.5R
27.0
77.1
-20.7
45.9
-65.4 r
-44.4 r
24.9r
83.7
-56.7
53.2
65.7
-50.0
27.5r
-11.7r
64.6 R
-8.3 r
-26.2
125.2
54.6
57.1
122.7
30. Excludes investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 13 less line 20 plus line 26.
33-37. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 37 includes mortgages.
39. Mainly an offset to line 9.
46. Sum of lines 32 and 38, or line 13 less line 27 plus lines 39 and 45.
47. Line 2 divided by line 1.
48. Line 20 divided by line 13.
49. Sum of lines 10 and 28.
50. 52. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding appear in the Board's z.l (780) quarterly statistical release. For
ordering address, see inside front cover.
A42
1.59
Domestic Financial Statistics • June 1992
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING
Billions of dollars, end of period
1990
1991
Transaction category or sector
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
9,242.3
9,987.1
10,760.5
11,229.1
10,445.0
10,597.7
10,760.5
10,833.4
10,958.3
11,084.3
11,229.1
By lending sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
2,104.9
2,082.3
22.6
2,251.2
2,227.0
24.2
2,498.1
2,465.8
32.4
2,776.3
2,757.7
18.6
2,347.4
2,314.4
32.9
2,410.4
2,377.8
32.6
2,498.1
2,465.8
32.4
2,548.8
2,522.4
26.4
2,591.9
2,567.1
24.8
2,687.2
2,669.6
17.6
2,776.3
2,757.7
18.6
5 Private
7,137.4
7,735.9
8,262.4
8,452.8
8,097.6
8,187.3
8,262.4
8,284.6
8,366.4
8,397.0
8,452.8
6
7
8
9
10
11
12
13
14
15
16
17
18
By instrument
Debt capital instruments
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
5,035.8
939.4
852.6
3,243.8
2,173.9
286.7
696.4
86.8
2,101.6
743.6
710.0
85.7
562.3
5,467.9
1,004.4
926.9
3,536.6
2,404.3
304.4
742.6
85.3
2,268.0
794.7
759.8
107.1
606.4
5,932.3
1,049.8
974.5
3,908.0
2,765.1
305.7
753.3
84.0
2,330.0
808.9
754.1
116.9
650.1
6,187.0
1,082.1
1,060.3
4,044.6
2,904.3
308.9
747.7
83.7
2,265.8
792.5
731.2
98.5
643.7
5,793.2
1,031.4
950.6
3,811.2
2,675.7
300.5
751.1
84.0
2,304.4
789.4
753.3
128.7
633.1
5,868.4
1,043.0
958.1
3,867.3
2,726.0
304.8
752.3
84.3
2,318.9
798.7
750.5
131.8
637.9
5,932.3
1,049.8
974.5
3,908.0
2,765.1
305.7
753.3
84.0
2,330.0
808.9
754.1
116.9
650.1
5,991.7
1,052.8
995.5
3,943.5
2,790.7
309.3
759.5
83.9
2,292.9
782.3
748.5
120.8
641.3
6,077.6
1,060.7
1,021.5
3,995.4
2,838.0
310.4
763.2
83.8
2,288.8
784.2
740.9
119.4
644.3
6,128.7
1,072.9
1,043.6
4,012.2
2,870.1
306.9
752.1
83.1
2,268.4
783.7
734.8
107.0
642.8
6,187.0
1,082.1
1,060.3
4,044.6
2,904.3
308.9
747.7
83.7
2,265.8
792.5
731.2
98.5
643.7
19
20
21
22
23
24
By borrowing sector
State and local government
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
752.5
3,188.9
3,196.0
137.6
1,130.5
1,927.9
815.7
3,501.5
3,418.7
139.2
1,180.5
2,098.9
858.3
3,897.7
3,506.3
140.5
1,194.3
2,171.5
882.6
4,060.7
3,509.5
143.1
1,172.7
2,193.7
841.8
3,777.2
3,478.6
138.7
1,195.4
2,144.6
852.9
3,841.9
3,492.5
141.6
1,195.1
2,155.8
858.3
3,897.7
3,506.3
140.5
1,194.3
2,171.5
861.3
3,914.9
3,508.4
139.5
1,195.4
2,173.5
866.7
3,966.3
3,533.4
142.6
1,197.4
2,193.4
874.6
4,002.6
3,519.8
143.6
1,181.9
2,194.3
882.6
4,060.7
3,509.5
143.1
1,172.7
2,193.7
255.7
265.4
288.9
304.4
277.0
283.4
288.9
301.4
288.8
294.5
304.4
94.0
21.5
49.9
90.2
98.5
21.4
63.0
82.5
120.1
18.5
75.3
75.0
136.5
22.5
81.8
63.7
112.4
19.3
65.1
80.2
112.9
19.8
71.5
79.3
120.1
18.5
75.3
75.0
122.9
20.5
87.0
70.9
126.6
19.7
74.0
68.4
130.7
20.0
78.0
65.7
136.5
22.5
81.8
63.7
9,498.0
10,252.5
11,049.4
11,533.5
10,721.9
10,881.2
11,049.4
11,134.8
11,247.0
11,378.8
11,533.5
25 Foreign credit market debt held in
United States
26
27
28
29
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
30 Total credit market debt owed by nonfinancial
sectors, domestic and foreign
Financial sectors
31 Total credit market debt owed by
financial sectors
32
33
34
35
36
37
38
39
40
41
By instrument
U.S. government-related
Sponsored credit-agency securities
Mortgage pool securities
Loans from U.S. government
Private
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
By borrowing sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private financial sectors
45 Commercial banks
46 Bank affiliates
47 Savings and loan associations
48 Mutual savings banks
49 Finance companies
50 Real estate investment trusts (REITs)
51 Securitized credit obligation (SCO) issuers...
1,999.8
2,219.4
2,512.0
2,648.2
2,425.3
2,447.7
2,512.0
2,530.5
2,550.7
2,585.3
2,648.2
1,098.4
348.1
745.3
5.0
901.4
331.9
3.4
35.6
377.7
152.8
1,249.3
373.3
871.0
5.0
970.0
378.2
3.4
37.5
409.1
141.8
1,418.4
393.7
1,019.9
4.9
1,093.5
515.9
4.2
38.6
417.7
117.1
1,575.4
402.5
1,168.1
4.9
1,072.7
561.2
4.1
42.3
386.0
79.1
1,330.1
381.0
944.2
5.0
1,095.1
528.0
4.0
36.5
400.3
126.3
1,367.9
384.4
978.5
5.0
1,079.8
511.6
4.1
36.7
409.6
117.9
1,418.4
393.7
1,019.9
4.9
1,093.5
515.9
4.2
38.6
417.7
117.1
1,452.1
397.0
1,050.3
4.9
1,078.4
529.7
4.2
36.5
400.9
107.0
1,480.3
389.6
1,085.9
4.9
1,070.3
544.2
4.2
37.0
390.1
94.7
1,524.3
394.7
1,124.8
4.9
1,061.0
546.7
4.4
39.0
387.0
83.9
1,575.4
402.5
1,168.1
4.9
1,072.7
561.2
4.1
42.3
386.0
79.1
353.1
745.3
901.4
78.8
136.2
159.3
18.6
361.4
11.4
135.7
378.3
871.0
970.0
77.4
142.5
145.2
17.2
392.5
10.1
185.1
398.5
1,019.9
1,093.5
76.3
114.8
114.0
16.7
536.0
10.6
225.2
407.4
1,168.1
1,072.7
63.4
109.4
74.4
14.0
542.0
11.1
258.5
385.9
944.2
1,095.1
71.6
134.3
125.6
16.7
529.5
10.4
206.9
389.4
978.5
1,079.8
70.7
122.9
116.2
16.2
529.8
10.3
213.8
398.5
1,019.9
1,093.5
76.3
114.8
114.0
16.7
536.0
10.6
225.2
401.8
1,050.3
1,078.4
68.1
114.4
102.8
16.4
533.7
10.6
232.4
394.4
1,085.9
1,070.3
65.9
113.3
89.4
16.6
532.5
10.8
241.8
399.5
1,124.8
1,061.0
64.6
110.5
78.2
15.9
530.8
12.0
249.1
407.4
1,168.1
1,072.7
63.4
109.4
74.4
14.0
542.0
11.1
258.5
All sectors
52 Total credit market debt, domestic and foreign..
53
54
55
56
57
58
59
60
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
11,497.8
12,471.9
13,561.3
14,181.7
13,147.2
13,328.9
13,561.3
13,665.3
13,797.7
13,964.1
14,181.7
3,198.3
939.4
1,278.5
3,247.2
743.6
767.2
513.4
810.2
3,495.6
1,004.4
1,403.6
3,540.1
794.7
818.6
579.2
835.7
3,911.7
1,049.8
1,610.5
3,912.2
808.9
811.3
609.9
847.0
4,346.8
1,082.1
1,758.0
4,048.8
792.5
795.9
566.3
791.4
3,672.5
1,031.4
1,591.0
3,815.3
789.4
809.1
594.0
844.6
3,773.4
1,043.0
1,582.6
3,871.4
798.7
807.0
612.9
840.0
3,911.7
1,049.8
1,610.5
3,912.2
808.9
811.3
609.9
847.0
3,996.1
1,052.8
1,648.1
3,947.7
782.3
805.6
608.8
824.0
4,067.4
1,060.7
1,692.3
3,999.6
784.2
797.6
583.6
812.4
4,206.7
1,072.9
1,720.9
4,016.6
783.7
793.8
572.0
797.3
4,346.8
1,082.1
1,758.0
4,048.8
792.5
795.9
566.3
791.4
Flow of Funds
1.60
A43
SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER
Billions of dollars, except as noted, end of period
1991
1990
Transaction category or sector
1988
1989
1990
1991
Q2
Q3
Q4
Ql
Q2
Q3
Q4
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
9,242.3
9,987.1
10,760.5
11,229.1
10,445.0
10,597.7
10,760.5
10,833.4
10,958.3
11,084.3
11,229.1
2 Total held by federal agencies and foreign sector
2,223.2
2,413.1
2,673.3
2,920.2
2,529.9
2,611.3
2,673.3
2,729.0
2,789.3
2,855.9
2,920.2
By instrument
3 U.S. government securities
4 Residential mortgages
5 Federal Home Loan Bank advances to thrifts
6 Other loans and securities
651.5
900.4
152.8
518.5
688.9
1,038.4
141.8
544.1
763.3
1,221.0
117.1
571.9
862.6
1,394.7
79.1
583.8
714.1
1,126.5
126.3
563.1
745.6
1,171.8
117.9
576.0
763.3
1,221.0
117.1
571.9
789.5
1,261.4
107.0
571.1
808.7
1,306.7
94.7
579.1
835.9
1,352.6
83.9
583.4
862.6
1,394.7
79.1
583.8
By type of lender
U.S. government
Sponsored credit agencies and mortgage pools
Monetary authority
Foreign
214.6
1,113.0
240.6
655.0
207.0
1,238.2
233.3
734.6
240.6
1,403.4
241.4
787.9
250.3
1,563.6
272.5
833.7
227.4
1,315.0
237.8
749.8
242.7
1,360.5
240.8
767.5
240.6
1,403.4
241.4
787.9
248.2
1,438.8
247.3
794.7
256.6
1,468.7
253.7
810.3
257.1
1,514.2
264.7
819.9
250.3
1,563.6
272.5
833.7
Agency and foreign debt not in line 1
11 Sponsored credit agencies and mortgage pools
12 Foreign
1,098.4
255.7
1,249.3
265.4
1,418.4
288.9
1,575.4
304.4
1,330.1
277.0
1,367.9
283.4
1,418.4
288.9
1,452.1
301.4
1,480.3
288.8
1,524.3
294.5
1,575.4
304.4
13 Total private domestic holdings
8,373.2
9,088.7
9,794.4
10,188.8
9,522.1
9,637.7
9,794.4
9,857.9
9,938.1
10,047.2
10,188.8
2,546.8
939.4
744.8
1,560.2
2,734.7
152.8
2,806.7
1,004.4
809.8
1,670.4
2,939.2
141.8
3,148.4
1,049.8
873.2
1,849.8
2,990.4
117.1
3,484.1
1,082.1
956.4
1,818.5
2,926.7
79.1
2,958.5
1,031.4
842.7
1,849.7
2,966.2
126.3
3,027.7
1,043.0
850.5
1,859.0
2,975.4
117.9
3,148.4
1,049.8
873.2
1,849.8
2,990.4
117.1
3,206.5
1,052.8
892.4
1,838.7
2,974.6
107.0
3,258.7
1,060.7
915.8
1,841.7
2,955.9
94.7
3,370.8
1,072.9
938.3
1,824.4
2,924.8
83.9
3,484.1
1,082.1
956.4
1,818.5
2,926.7
79.1
20 Total credit market claims held by private financial
institutions
7,055.3
7,602.9
8,132.4
8,480.4
7,931.6
7,990.0
8,132.4
8,200.4
8,261.9
8,355.5
8,480.4
By holding institution
71 Commercial banks
??, Savings institutions
73 Insurance and pension funds
24 Other finance
2,476.2
1,565.2
1,836.1
1,177.9
2,643.9
1,478.2
2,034.0
1,446.7
2,765.1
1,345.1
2,218.1
1,804.2
2,860.5
1,184.6
2,433.5
2,001.8
2,709.5
1,424.2
2,153.3
1,644.5
2,739.0
1,385.9
2,173.8
1,691.3
2,765.1
1,345.1
2,218.1
1,804.2
2,778.6
1,302.8
2,274.9
1,844.1
2,793.1
1,263.6
2,329.6
1,875.6
2,815.2
1,210.0
2,385.5
1,944.8
2,860.5
1,184.6
2,433.5
2,001.8
By source of funds
75 Private domestic deposits and repurchase
agreements
76 Credit market debt
77 Other sources
78 Foreign funds
79 U.S. Treasury balances
30 Insurance and pension reserves
31 Other, net
3,581.3
901.4
2,572.6
71.6
29.0
1,723.2
748.9
3,790.4
970.0
2,842.5
62.1
25.6
1,908.2
846.6
3,843.8
1,093.5
3,195.1
86.1
30.9
2,067.7
1,010.4
3,844.6
1,072.7
3,563.0
65.5
36.6
2,286.3
1,174.7
3,806.5
1,095.1
3,030.0
63.5
32.1
1,983.0
951.3
3,812.1
1,079.8
3,098.0
86.6
36.6
2,018.6
956.2
3,843.8
1,093.5
3,195.1
86.1
30.9
2,067.7
1,010.4
3,873.3
1,078.4
3,248.7
84.8
26.3
2,126.8
1,010.7
3,836.0
1,070.3
3,355.6
55.3
36.0
2,174.6
1,089.6
3,812.1
1,061.0
3,482.3
64.8
38.5
2,237.4
1,141.5
3,844.6
1,072.7
3,563.0
65.5
36.6
2,286.3
1,174.7
Private domestic nonfinancial investors
37 Credit market claims
U.S. government securities
34 State and local obligations
35 Corporate and foreign bonds
36 Open market paper
37 Other loans and mortgages
2,219.3
1,050.7
486.7
52.4
243.0
386.5
2,455.9
1,169.0
549.4
64.7
245.9
427.0
2,755.5
1,278.0
574.2
194.8
264.7
443.8
2,781.1
1,325.7
583.9
177.7
228.1
465.7
2,685.7
1,214.5
568.9
217.8
264.5
420.0
2,727.6
1,256.8
573.8
201.3
266.4
429.2
2,755.5
1,278.0
574.2
194.8
264.7
443.8
2,736.0
1,277.7
568.2
198.1
250.1
441.8
2,746.5
1,290.5
576.8
201.7
232.1
445.5
2,752.7
1,298.7
584.0
185.1
230.5
454.5
2,781.1
1,325.7
583.9
177.7
228.1
465.7
38 Deposits and currency
39 Currency
40 Checkable deposits
41 Small time and savings accounts
Money market fund shares
4?
43 Large time deposits
44 Security repurchase agreements
45 Deposits in foreign countries
3,814.5
220.1
532.9
2,156.2
318.9
390.3
182.9
13.1
4,039.7
231.8
532.9
2,254.7
405.6
399.3
197.9
17.6
4,122.7
254.4
533.3
2,313.2
461.6
358.3
177.4
24.6
4,150.8
274.0
585.2
2,332.7
496.1
267.1
163.6
32.1
4,066.6
242.7
514.2
2,286.6
425.9
387.1
192.7
17.5
4,076.1
247.2
503.5
2,295.8
452.1
374.1
186.6
16.8
4,122.7
254.4
533.3
2,313.2
461.6
358.3
177.4
24.6
4,149.5
262.0
515.5
2,342.5
509.6
342.9
162.9
14.3
4,124.4
265.9
524.3
2,338.8
489.6
319.7
163.6
22.5
4,105.6
264.8
540.8
2,324.7
489.1
297.8
159.8
28.7
4,150.8
274.0
585.2
2,332.7
496.1
267.1
163.6
32.1
46 Total of credit market instruments, deposits, and
currency
6,033.8
6,495.6
6,878.3
6,931.9
6,752.3
6,803.7
6,878.3
6,885.5
6,870.9
6,858.3
6,931.9
23.4
97.2
726.6
23.5
94.2
796.7
24.2
87.8
873.9
25.3
82.1
899.2
23.6
91.6
813.3
24.0
90.5
854.1
24.2
87.8
873.9
24.5
86.7
879.5
24.8
85.7
865.6
25.1
83.5
884.7
25.3
82.1
899.2
3,619.8
478.3
3,141.6
1,113.6
2,506.2
4,374.8
555.1
3,819.7
1,416.9
2,958.0
4,084.6
578.5
3,506.2
1,342.1
2,742.6
5,219.5
852.4
4,367.2
1,844.4
3,375.1
4,400.7
587.9
3,812.8
1,459.6
2,941.1
3,824.0
547.3
3,276.8
1,232.6
2,591.4
4,084.6
578.5
3,506.2
1,342.1
2,742.6
4,635.1
643.0
3,992.1
1,572.0
3,063.2
4,669.3
681.3
3,988.0
1,577.7
3,091.6
4,937.0
764.0
4,172.9
1,708.0
3,229.0
5,219.5
852.4
4,367.2
1,844.4
3,375.1
7
8
9
10
14
15
16
17
18
19
U.S. government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
LESS: Federal Home Loan Bank advances
33
MEMO
47 Public holdings as percent of total
48 Private financial intermediation (percent)
49 Total foreign funds
Corporate equities not included above
50 Total market value
51 Mutual fund shares
5? Other equities
53 Holdings by financial institutions
54 Other holdings
NOTES BY LINE NUMBER.
1. Line 1 of table 1.59.
2. Sum of lines 3 - 6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market debt of federally sponsored agencies, and net issues of
federally related mortgage pool securities.
13. Line 1 less line 2 plus lines 11 and 12. Also line 20 less line 26 plus line 32.
Also sum of lines 27 and 46 less lines 39 and 45.
18. Includes farm and commercial mortgages.
25. Line 38 less lines 39 and 45.
26. Excludes equity issues and investment company shares. Includes line 19.
28. Foreign deposits at commercial banks, plus bank borrowings from foreign
affiliates, less claims on foreign affiliates and deposits by banking in foreign banks.
29. Demand deposits and note balances at commercial banks.
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 13 less line 20 plus line 26.
33-37. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 37 includes mortgages.
39. Mainly an offset to line 9.
46. Sum of lines 32 and 38, or line 13 less line 27 plus lines 39 and 45.
47. Line 2 divided by lines 1 plus 12.
48. Line 20 divided by line 13.
49. Sum of lines 10 and 28.
50-52. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding appear in the Board's z.l (780) quarterly statistical release. For
ordering address, see inside front cover.
A44
2.10
Domestic Nonfinancial Statistics • June 1992
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
Monthly data seasonally adjusted, 1987=100, except as noted
1992
1991
Measure
1989
1990
1991
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan. r
Feb. r
Mar.
1 Industrial production1
108.1
109.2
107.1
108.1
108.0
108.4
108.4
108.1
107.4
106.4
106.9
107.2
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
108.6
109.1
106.7
112.3
106.8
107.4
110.1
110.9
107.3
115.5
107.7
107.8
108.1
109.6
107.5
112.2
103.4r
105.5
108.7
110.2
108.3
112.8
104.0
107.0
108.5
109.8
108.4
111.6
104.4
107.2
108.9
110.4
109.4
111.8
104.3
107.5
109.0
110.6
109.7
111.9
104.1
107.4
109.0
110.6
110.0
111.4
103.9
106.6
108.4r
109.9r
109.T
110.9r
103.8r
105.8r
107.4
108.6
108.0
109.5
103.4
104.9
107.9
109.3
108.5
110.4
103.6
105.2
108.3
109.6
109.0
110.5
103.9
105.4
108.9
109.9
107.4
108.3
108.4
108.9
109.0
108.6
108.1
107.2
107.8
107.9
2
3
4
5
6
7
Industry groupings
8 Manufacturing
9 Capacity utilization, manufacturing
(percent)
83.9
82.3
78.2
78.7
78.6
78.8
78.7
78.2
77.7
76.9
77.1
77.0
10 Construction contracts (1982= 100)3
172.9
156.2
132.5r
144.0
150.0
143.0
157.0
134.0
152.0
95.0
100.0
n.a.
11 Nonagricultural employment, total4
12 Goods-producing, total
Manufacturing, total
13
Manufacturing, production w o r k e r . . . .
14
15 Service-producing
16 Personal income, total
17 Wages and salary disbursements
Manufacturing
18
19 Disposable personal income
20 Retail sales6
106.0
102.5
102.2
102.3
107.1
115.2
114.4
110.6
115.2
113.2
107.6
101.0
100.5
100.0
109.7
123.1
121.1
113.4
123.4
117.4
106.6
96.4
96.9
96.0
109.9
127.2
124.2
113.5
128.2r
118.3
106.5
96.3
96.7
96.0
109.8
127.1
124.2
113.8
128.3
119.4
106.6
96.4
96.9
96.3
109.9
127.7
124.9
114.4
128.9
118.6
106.7
96.3
96.8
96.0
110.0
128.2
125.4
114.6
129.3
119.0
106.7
96.0
96.6
95.9
110.1
128.4r
125.2
115.6
129.7
118.9
106.5
95.5
96.4
95.6
110.0
128.3r
125.4
114.5
129.5r
118.9
106.5
95.3
96.2
95.4
110.1
129.6r
126.2
115.4r
130.9r
118.8
106.4
95.1
95.9
95.1
110.0
129.4
125.4
113.5
130.7
121.3
106.5
95.1
95.9
95.3
110.2
130.8
127.0
114.4
132.1
122.9
106.5
95.1
95.9
95.4
110.2
n.a.
n.a.
n.a.
n.a.
122.5
Prices7
21 Consumer (1982-84= 100)
22 Producer finished goods (1982=100)
124.0
113.6
130.7
119.2
136.2
121.7
136.2
121.6
136.6
121.7
137.2
121.4
137.4
122.2
137.8
122.3
137.9
121.9
138.1
121.7
138.6
121.9
139.3
122.0
1. A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the
Federal Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other
sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Co., F.W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the armed forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
6. Based on U.S. Bureau of the Census data published in Survey of Current
Business.
1. Based on data not seasonally adjusted, as published in Monthly Labor
Review. Seasonally adjusted data for changes in the price indexes can be obtained
from the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not indexes) for series mentioned in notes 4, 5,and 6, and
indexes for series mentioned in notes 3 and 7 can also be found in the Survey of
Current Business.
Figures for industrial production for the latest month are preliminary, and many
figures for the three months preceding the latest month have been revised. See
"Recent Developments in Industrial Capacity and Utilization," Federal Reserve
Bulletin, vol. 76 (June 1990), pp. 411-35.
Selected Measures
2.11
A45
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted; exceptions noted
1991
Category
1989
1990
1992
1991
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb."
Mar.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
188,601
190,216
191,883
192,095
192,240
192,386
192,522
192,661
192,796
192,906
193,036
2 Labor force (including Armed Forces)1
3 Civilian labor force
Employment
4
Nonagricultural industries2
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force)
8 Not in labor force
126,077
123,869
126,954
124,787
127.421
125,303
127,126
125,004
127,708
125,590
127,605
125,508
127,444
125,374
127,675
125,619
128,083
126,046
128,309
126,287
128,604
126,590
114,142
3,199
114,728
3,186
114,644
3,233
113,230
3,254
113,806
3,283
113,663
3,204
113,500
3,272
113,545
3,183
113,951
3,166
113,811
3,232
114,155
3,194
6,528
5.3
62,524
6,874
5.5
63,262
8,426
6.7
64,462
8,520
6.8
64,969
8,501
6.8
64,532
8,641
6.9
64,781
8,602
6.9
65,078
8,891
7.1
64,986
8,929
7.1
64,713
9,244
7.3
64,597
9,242
7.3
64,432
108,329
109,971
108,975
108,971
109,066
109,073
108,843
108,882
108,760r
108,867
108,886
19,442
693
5,187
5,644
25,770
6,695
27,120
17,779
19,111
711
5,136
5,826
25,843
6,739
28,240
18,322
18,427
697
4,696
5,823
25,412
6,707
28,778
18,434
18,442
693
4,691
5,820
25,393
6,687
28,831
18,414
18,414
684
4,699
5,829
25,387
6,692
28,937
18,424
18,377
679
4,671
5,828
25,335
6,697
29,019
18,467
18,337
674
4,584
5,816
25,261
6,694
29,008
18,469
18,293
670
4,589
5,811
25,247
6,701
29,057
18,514
18,238r
666
4,602r
5,794r
25,175r
6,693r
29,073r
18,519"
18,252
664
4,574
5,800
25,288
6,702
29,076
18,511
18,249
659
4,584
5,797
25,255
6,706
29,086
18,550
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Persons sixteen years of age and older. Monthly figures are based on sample
data collected during the calendar week that contains the twelfth day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures.
2. Includes self-employed, unpaid family, and domestic service workers.
3. Includes all full- and part-time employees who worked during, or received
pay for, the pay period that includes the twelfth day of the month, and exclude
proprietors, self-employed persons, household and unpaid family workers, and
members of the armed forces. Data are adjusted to the March 1984 benchmark,
and only seasonally adjusted data are available at this time.
SOURCE. Based on data from Employment and Earnings (U.S. Department of
Labor).
A46
Domestic Nonfinancial Statistics • June 1992
2.12
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION 1
Seasonally adjusted
1992
1991
1992
1991
Series
Q2
Q3
r
Q4
Ql
Output (1987=100)
Q2
Q3
Q4
Ql
Capacity (percent of 1987 output)
Q2
Q3
Q4r
Ql
Capacity utilization rate (percent)
1 Total industry
106.4
108.1
107.9
106.8
134.5
135.3
136.2
137.0
79.1
79.9
79.3
78.0
2 Manufacturing
106.7
108.5
108.6
107.6
136.9
137.9
138.9
139.7
77.9
78.7
78.2
77.0
3
4
Primary processing
Advanced processing
100.8
104.1
127.5
141.3
128.8
110.6
103.1
109.7
128.1
109.4
104.1
110.7
142.4
143.5
129.3
144.6
79.1
77.4
81.2
77.7
80.8
77.1
79.7
75.9
5
6
7
8
9
10
11
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
106.7
94.0
95.9
92.8
100.3
123.5
107.7
95.1
102.5
103.2
101.4
122.7
110.4
97.0
106.4
97.6
100.6
101.8
98.9
121.9
140.9
125.2
128.6
133.5
121.5
159.5
144.0
134.2
141.8
125.4
129.0
134.0
121.7
161.2
145.3
134.9
142.8
125.7
129.3
134.5
121.9
143.7
125.9
129.1
134.1
75.7
75.1
74.6
69.5
164.3
147.9
136.2
77.4
76.8
66.7
75.4
75.7
79.2
76.7
83.2
75.4
75.3
71.5
74.1
77.6
77.9
75.9
146.6
135.6
76.2
75.8
79.1
74.8
85.8
76.6
76.5
71.1
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
20 Mining
21 Utilities
22 Electric
95.1
100.3
104.5
123.5
162.8
122.1
82.6
81.0
74.2
74.8
67.3
110.6
111.2
89.5
95.9
106.4
105.2
102.8
100.1
137.9
138.7
139.6
140.4
77.2
75.9
73.7
71.3
106.7
99.4
102.7
109.3
115.6
107.6
109.1
104.1
107.6
109.7
104.1
107.4
113.0
126.2
107.1
109.1
132.9
133.8
118.3
118.7
142.3
146.1
121.4
134.8
80.9
84.5
87.7
78.2
83.0
82.0
88.0
90.5
79.4
86.4
88.6
82.1
88.2
91.2
79.5
87.9
89.0
81.0
104.7
112.9
122.6
106.9
131.9
117.7
117.1
139.7
139.2
121.4
88.2
86.6
87.8
78.7
82.4
88.0
101.1
101.8
110.4
115.2
99.7
109.4
97.9
107.4
109.9
114.3
128.4
124.3
114.6
88.4
85.3
92.1
88.9
85.7
92.4
87.0
84.7
89.1
85.3
82.9
87.5
109.6
114.4
Previous cycle
High
108.1
102.0
Low
112.1
125.4
108.1
111.6
110.6
91.7
102.8
118.0
117.9
141.0
142.6
121.4
128.8
124.7
114.7
129.2
125.2
118.8
119.3
143.4
148.7
121.4
114.7
129.5
125.6
Latest cycle
High
Low
1992
Mar.
Aug.
Sept.
Oct.
Nov
Dec. r
Jan. r
Feb/
Mar. p
78.1
Capacity utilization rate (percent)
1 Total industry
89.2
72.6
87.3
71.8
78.4
79.8
79.9
79.8
79.3
78.7
77.8
78.0
2 Manufacturing
88.9
70.8
87.3
70.0
77.2
78.6
78.8
78.7
78.2
77.7
76.9
77.1
77.0
3
4
92.2
87.5
68.9
72.0
89.7
86.3
66.8
71.4
77.9
76.8
81.2
77.5
81.3
77.7
81.4
77.6
80.8
77.1
80.2
76.6
79.7
75.7
79.8
76.0
79.7
75.9
88.8
90.1
100.6
105.8
92.9
96.4
87.8
93.4
68.5
62.2
66.2
66.6
61.3
74.5
63.8
51.1
86.9
87.6
102.4
110.4
90.5
92.1
89.4
93.0
65.0
60.9
46.8
38.3
62.2
64.9
71.1
44.5
74.9
72.9
73.8
69.1
81.1
77.7
75.9
59.7
76.0
76.0
79.6
75.0
86.7
76.5
76.8
67.9
76.2
75.8
79.3
75.1
85.7
76.1
76.2
73.6
75.9
74.6
79.4
76.2
84.5
76.1
75.1
74.2
75.5
76.7
80.0
78.5
82.5
75.4
75.5
70.7
74.8
75.7
78.3
75.5
82.6
74.7
75.2
69.6
73.8
77.2
78.8
77.3
81.0
74.1
74.8
64.0
74.3
77.7
77.5
75.1
81.2
74.1
74.9
68.8
74.2
77.7
77.6
75.5
80.7
74.4
74.6
69.0
77.0
66.6
81.1
66.9
79.3
76.1
75.3
74.8
73.9
72.3
71.1
71.4
71.4
82.1
88.8
90.4
79.7
87.1
88.4
82.3
87.4
91.4
79.6
87.0
89.4
82.4
89.2
92.1
80.0
89.5
87.3
81.9
88.2
89.4
79.4
87.2
87.9
81.6
86.5
90.0
78.9
82.5
89.5
81.1
86.1
87.6
78.5
83.1
87.5
80.9
86.7
87.6
78.9
82.2
88.0
80.9
86.9
88.1
78.8
82.0
88.4
88.5
85.9
92.7
88.5
85.1
90.8
87.9
84.8
89.7
86.8
85.9
90.0
86.2
83.4
87.7
85.0
82.6
87.1
85.6
82.3
86.9
85.4
84.0
88.6
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Primary processing
Advanced processing
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts . . . .
Aerospace and miscellaneous
transportation equipment.
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
20 Mining
21 Utilities
22 Electric
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
80.3
81.3
86.8
77.9
79.0
89.4
94.4
95.6
99.0
88.4
82.5
82.7
96.6
88.3
88.3
80.6
76.2
78.7
89.0
83.0
88.6
1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover. For a detailed description of
the series, see "Recent Developments in Industrial Capacity and Utilization,"
Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35.
2. Monthly high, 1973; monthly low, 1975.
3. Monthly highs, 1978 through 1980; monthly lows, 1982.
Selected Measures
2.13
INDUSTRIAL PRODUCTION
A47
Indexes and Gross Value1
Monthly data seasonally adjusted
portion
1992
1991
1987
Group
1991
avg.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec. r
Jan. r
Feb. r
Mar.P
Index (1987 = 100)
MAJOR MARKETS
1 Total index
7
3
4
6
7
8
9
10
11
1?
N
14
15
16
17
18
19
70
71
22
Final products
Consumer goods, total
Durable consumer goods
Automotive products
Autos and trucks
Autos, consumer
Trucks, consumer
Auto parts and allied goods...
Other
Appliances, A/C, and TV
Carpeting and furniture
Miscellaneous home goods . . .
Nondurable consumer goods
Foods and tobacco
Clothing
Chemical products
Paper products
Energy
Fuels
Residential utilities
100.0
107.1
105.0
105.5
106.4
107.3
108.1
108.0
108.4
108.4
108.1
107.4
106.4
106.9
107.2
60.8
46.0
26.0
5.6
2.5
1.5
.9
.6
1.0
3.1
.8
.9
1.4
20.4
9.1
2.6
3.5
2.5
2.7
.7
2.0
108.1
109.6
107.5
102.3
97.8
90.2
84.6
99.6
109.3
105.8
99.5
99.4
113.4
109.0
106.7
93.5
115.8
123.6
108.5
103.5
110.4
106.5
108.1
104.7
95.9
88.9
76.7
76.3
77.4
107.3
101.4
96.2
93.9
109.2
107.1
105.4
90.4
114.2
122.2
105.5
104.3
105.9
106.9
108.7
105.5
99.3
94.2
85.0
78.3
96.3
108.0
103.4
97.3
97.0
110.8
107.2
105.3
90.6
115.0
122.7
104.4
101.4
105.5
107.7
109.3
106.6
101.1
97.4
89.2
81.9
101.6
109.5
104.1
96.8
96.9
112.8
108.1
106.2
92.0
113.9
121.8
109.0
103.6
111.0
108.6
110.1
108.0
104.2
100.4
92.5
83.8
107.1
112.2
107.3
104.8
99.2
113.8
109.0
106.9
93.9
114.3
123.3
110.0
104.9
111.9
108.7
110.2
108.3
105.5
102.3
98.1
92.8
106.9
108.6
108.1
100.6
103.1
115.5
109.0
106.9
94.3
115.4
122.1
109.4
105.2
110.9
108.5
109.8
108.4
104.0
98.6
90.2
83.0
102.2
111.3
108.3
99.6
103.9
115.9
109.6
107.1
94.8
117.4
122.6
109.5
104.0
111.5
108.9
110.4
109.4
107.7
106.5
103.0
94.6
117.1
111.8
108.7
104.1
101.8
115.6
109.8
107.8
95.2
117.3
124.8
106.7
104.4
107.6
109.0
110.6
109.7
107.5
106.7
105.1
92.6
126.1
109.1
108.1
102.1
101.8
115.6
110.3
107.8
96.3
117.0
125.6
108.5
103.5
110.3
109.0
110.6
110.0
106.0
103.6
99.0
89.8
114.5
110.5
108.0
102.3
101.6
115.2
111.1
108.1
96.5
117.9
126.4
112.0
103.6
115.1
108.4
109.9
109.1
104.6
101.3
96.7
88.2
111.0
108.2
107.2
98.9
101.5
115.5
110.3
107.0
96.2
118.0
126.8
109.3
104.3
111.2
107.4
108.6
108.0
101.4
94.0
84.3
79.1
93.0
108.5
107.4
101.8
101.1
114.5
109.8
107.0
95.0
117.9
126.8
106.7
103.4
108.0
107.9
109.3
108.5
104.6
100.8
94.3
84.8
110.2
110.5
107.6
103.0
101.4
114.1
109.6
107.2
94.8
118.5
124.6
106.1
103.4
107.2
108.3
109.6
109.0
105.1
101.9
95.7
81.9
118.9
111.2
107.6
104.0
102.4
112.9
110.1
107.0
94.5
119.1
125.6
109.0
103.0
111.2
20.0
13.9
5.6
1.9
4.0
2.5
1.2
1.9
5.4
.6
.2
112.2
121.5
131.5
155.5
108.0
126.8
88.6
113.6
91.1
93.3
85.5
112.5
120.3
131.2
155.1
109.5
120.4
76.7
110.8
93.9
107.7
79.3
112.8
121.3
131.5
155.6
109.3
124.1
84.4
112.7
92.5
105.1
83.1
112.7
121.7
131.8
155.6
109.3
125.9
87.9
113.0
91.5
101.3
86.6
112.8
121.9
130.9
154.0
109.1
128.0
90.8
114.8
91.0
103.0
90.8
112.8
122.5
131.1
156.0
109.0
131.2
96.6
114.0
90.0
97.8
86.5
111.6
121.3
130.3
153.1
108.6
126.7
86.2
114.8
89.8
86.7
90.3
111.8
122.2
130.3
152.2
108.2
132.7
99.3
114.2
89.1
80.1
86.2
111.9
122.3
131.7
156.0
106.8
133.1
101.1
113.6
89.1
79.0
86.3
111.4
121.8
133.4
157.8
104.2
130.5
96.5
113.8
88.8
78.1
87.0
110.9
121.4
134.0
159.1
102.3
129.5
96.1
114.1
88.1
75.8
87.9
109.5
119.8
134.1
160.6
100.6
124.2
84.9
113.1
86.9
71.8
98.5
110.4
121.2
134.8
162.2
101.2
129.5
94.7
113.1
86.3
73.9
99.7
110.5
121.4
135.0
163.0
101.3
129.4
95.0
114.0
85.8
76.2
102.0
73
74
75
76
77
78
79
30
31
37
33
Equipment
Business equipment
Information processing and related ..
Office and computing
34
35
36
Intermediate products, total
Construction supplies
Business supplies
14.7
6.0
8.7
103.4
96.0
108.4
101.3
94.0
106.4
101.2
94.9
105.6
102.7
95.8
107.5
104.0
97.4
108.5
104.0
96.9
109.0
104.4
96.7
109.7
104.3
96.5
109.7
104.1
95.4
110.1
103.9
95.9
109.4
103.8
95.0
110.0
103.4
95.3
109.0
103.6
95.3
109.4
103.9
95.1
110.1
37
38
39
40
41
47
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
Pulp and paper materials
Chemical materials
Other
Energy materials
Primary energy
Converted fuel materials
39.2
19.4
4.2
7.3
7.9
2.8
9.0
1.2
1.9
3.8
2.1
10.9
7.2
3.7
105.5
107.1
96.4
114.4
106.0
106.0
105.9
97.0
106.9
106.1
109.7
102.3
102.4
102.0
102.6
103.3
87.5
114.8
101.0
101.2
102.8
92.7
102.4
102.7
108.8
101.3
101.5
100.8
103.4
104.9
92.1
114.6
102.6
101.6
103.1
94.7
102.0
102.9
109.0
101.1
100.5
102.4
104.5
106.2
95.5
114.8
103.8
103.0
103.7
96.8
101.5
103.9
109.2
102.4
101.2
104.7
105.4
106.7
97.3
113.6
105.3
105.9
104.9
98.1
106.9
103.9
108.6
103.4
104.7
101.0
107.0
108.2
100.2
113.5
107.5
108.8
108.1
101.4
110.3
107.7
110.5
104.1
106.2
100.1
107.2
109.1
100.1
114.3
109.0
110.2
107.8
101.5
108.2
107.9
110.9
103.3
104.5
101.0
107.5
109.3
101.3
113.9
109.3
109.5
108.3
99.5
110.4
108.2
111.3
103.6
103.8
103.4
107.4
108.8
101.6
113.6
108.2
107.7
109.6
101.8
112.0
109.9
111.2
103.1
102.8
103.8
106.6
108.6
100.5
113.7
108.3
108.1
107.7
99.9
108.6
108.3
110.1
102.2
100.9
104.5
105.8
108.1
97.0
114.2
108.4
108.1
107.1
98.5
109.6
107.0
109.7
100.4
100.4
100.5
104.9
106.9
95.2
114.1
106.5
105.1
106.2
97.8
104.8
107.3
110.1
100.2
100.2
100.2
105.2
107.5
96.5
114.9
106.4
105.3
106.3
98.8
106.4
106.9
109.3
100.4
100.2
100.8
105.4
107.5
97.0
114.9
106.2
104.8
106.3
99.5
107.7
106.4
108.8
101.0
100.1
102.9
97.3
95.3
107.6
107.9
105.7
106.2
106.1
106.5
106.9
107.3
107.8
108.1
108.4
108.6
108.5
108.8
108.6
108.8
108.5
108.8
108.3
108.7
107.7
108.0
107.0
107.3
107.2
107.5
107.5
107.8
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
SPECIAL AGGREGATES
51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts . . .
53 Total excluding office and computing
machines
54 Consumer goods excluding autos and
trucks
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding office and
computing equipment
58 Materials excluding energy
97.5
105.8
103.7
104.2
105.2
106.2
106.9
106.8
107.3
107.2
106.8
106.1
105.0
105.5
105.7
24.5
23.3
108.6
107.4
106.4
104.6
106.7
105.6
107.6
106.3
108.9
107.7
108.9
108.1
109.5
108.3
109.8
109.7
109.9
109.8
110.7
109.8
109.8
109.1
109.4
108.2
109.4
108.8
109.8
109.0
12.7
124.7
124.5
124.9
125.0
125.0
125.0
124.7
124.4
124.4
124.3
123.9
123.4
123.9
124.2
12.0
28.4
116.0
106.7
114.6
103.1
115.7
104.3
116.3
105.4
116.7
106.1
117.0
108.2
116.2
108.7
117.3
109.0
116.9
109.1
116.0
108.3
115.3
107.8
113.3
106.7
114.6
107.1
114.7
107.1
A48
Domestic Nonfinancial Statistics • June 1992
2.13—Continued
Group
1987
proportion
SIC 2
code
1991
avg.
Mar.
Apr.
May
July
Aug.
Sept
Oct.
Nov.
Dec.
Jan. r
Feb. r
Mar. p
Index (1987 = 100)
MAJOR INDUSTRIES
1 Total index .
20
23
24
25
26
27
28
29
30
31
32
33
Durable goods
24
Lumber and products . . .
Furniture and fixtures . . .
25
Clay, glass, and stone
products
32
Primary metals
33
Iron and steel
331,2
Raw steel
Nonferrous
333-6,9
Fabricated metal
products
Nonelectrical machinery.
Office and computing
machines
357
Electrical machinery
36
Transportation
equipment
Motor vehicles and
parts
Autos and light
trucks
Aerospace and miscellaneous transportation equipment.. 372-6,9
Instruments
38
39
Miscellaneous
Nondurable goods
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing . .
Chemicals and products .
Petroleum products
Rubber and plastic
products
Leather and products . . .
34 Mining
35 Metal
36 Coal
37 Oil and gas extraction...
38 Stone and earth minerals
39 Utilities...
40
Electric.
41 Gas . . . .
105.0
105.5
106.4
108.1
108.0
107.4
106.4
84.4
26.7
57.7
107.4
102.4
109.8
105.2
99.0
108.0
105.9
99.6
108.9
106.6
100.7
109.3
107.5
102.1
109.9
108.3
103.7
110.5
108.4
104.1
110.3
108.9
104.4
111.0
109.0
104.7
111.0
108.6
104.1
110.7
108.1
103.5
110.3
107.2
103.0
109.3
47.3
2.0
1.4
107.1
94.2
99.1
105.0
91.2
95.4
106.0
106.7
92.5
98.5
107.3
96.7
99.4
108.1
107.8
95.3
101.3
108.4
95.2
101.2
108.2
93.8
100.5
107.8
96.4
99.9
107.1
95.2
100.6
105.8
97.1
98.7
2.5
3.3
1.9
.1
1.4
94.9
99.5
98.0
97.3
101.5
94.4
94.7
92.0
89.8
98.4
94.2
94.5
91.6
91.0
98.5
95.1
96.9
94.0
88.9
95.5
94.4
102.3
94.4
102.6
101.0
95.0
96.4
92.9
94.0
101.5
92.8
103.5
105.6
99.1
100.5
93.0
101.3
101.7
97.6
100.8
92.6
101.9
104.0
103.3
98.9
5.4
8.6
100.4
123.5
97.8
123.1
98.0
123.5
99.1
123.6
101.2
121.9
99.6
121.4
2.5
155.5
110.1
155.1
108.6
155.6
155.6
159.1
110.6
160.5
110.3
98.0
93.7
94.6
87.1
95.5
83.5
100.0
2 Manufacturing
3 Primary processing ..
4 Advanced processing
8.6
90.4
79.8
1.8
2.4
3.6
6.4
8.6
1.3
110.6
98.2
89.8
88.2
94.8
100.5
95.8
101.2
99.5
102.6
100.6
103.5
102.4
105.5
100.9
104.4
99.8
123.4
100.9
123.9
101.4
123.3
101.9
123.1
101.9
123.5
101.8
154.0
156.0
111.0
153.0
111.5
152.2
111.0
155.9
157.8
109.8
110.7
102.4
99.7
100.4
95.9
103.2
97.6
103.1
118.7
120.7
101.2
119.0
121.0
99.7
118.3
120.3
109.5
109.6
94.7
102.5
99.0
107.0
114.5
109.0
109.2
98.8
111.5
99.7
92.5
102.6
102.2
101.3
96.7
97.3
89.1
101.8
106.1
117.3
119.8
105.4
116.5
105.6
116.9
123.2
104.6
104.3
118.1
118.2
120.6
109.6
109.5
102.7
103.2
98.1
108.0
113.3
91.2
108.8
107.2
118.6
117.5
105.8
118.4
115.3
107.9
105.4
107.4
98.2
95.4
92.5
101.3
110.4
108.2
108.5
105.9
107.6
97.6
97.2
93.2
101.3
110.7
109.0
105.7
106.5
107.8
98.7
99.2
95.2
101.3
110.6
109.2
107.5
107.6
108.6
99.4
101.7
96.2
105.3
108.6
111.2
109.6
109.6
111.9
111.5
108.3
109.0
108.7
103.1
104.7
98.3
106.5
112.3
112.3
107.3
99.7
100.5
96.2
105.1
112.3
110.9
107.5
118.2
118.7
100.8
102.4
101.3
102.9
106.0
118.2
119.3
108.6
1.0
86.2
84.0
2.3
5.1
3.3
1.2
109.7
97.2
9.8
4.7
92.7
98.3
108.4
121.6
108.3
102.6
104.2
97.8
121.5
110.1
122.8
112.6
105.5
98.7
109.0
114.4
113.5
108.6
106.0
109.6
110.1
97.7
104.4
98.8
106.1
114.2
113.0
106.7
109.4
102.2
102.1
108.6
97.5
104.4
114.6
112.4
106.3
3.0
.3
110.0
104.4
91.5
106.6
90.0
109.2
89.5
110.5
90.9
110.1
91.0
112.6
87.1
113.8
85.8
113.2
83.9
112.6
84.3
113.0
83.2
113.0
83.0
101.1
101.5
147.6
109.9
96.4
100.2
148.0
103.4
96.0
107.5
102.1
102.7
153.0
101.3
155.5
108.0
100.9
145.7
105.9
96.6
107.0
110.2
13
14
7.9
.3
1.2
5.7
.7
100.7
146.5
107.9
96.0
105.9
99.6
151.5
108.4
94.1
105.8
154.0
107.6
93.0
106.4
97.5
144.8
107.3
92.0
104.1
7.6
6.0
1.6
109.2
491.3PT
492,3PT
96.0
106.4
109.8
93.6
105.9
109.8
91.6
79.8
108.4
106.7
82.0
106.0
103.7
10
11,12
88.1
150.2
109.2
95.8
108.1
112.8
108.1
112.6
116.0
110.8
96.9
106.4
96.4
107.8
95.7
107.0
101.4
153.1
110.1
96.0
107.3
111.4
116.4
92.8
111.5
117.1
90.7
110.9
116.6
89.7
110.7
115.6
92.4
109.7
113.4
95.8
109.4
111.0
112.7
104.7
107.9
109.9
100.5
106.8
98.9
107.1
107.6
108.3
109.0
109.3
109.5
109.5
109.3
108.9
108.4
104.4
105.1
106.1
106.9
107.0
107.6
107.6
107.1
106.6
105.6
157.0
112.2
109.3
97.6
SPECIAL AGGREGATES
42 Manufacturing excluding
motor vehicles and
parts
43 Manufacturing excluding
office and computing
machines
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKETS
44 Products, total
1,734.8 1,880.0 1,845.4 1,853.3 1,875.7 1,890.5 1,895.3 1,885.5 1,901.8 1,911.4 1,904.9 1,888.9 1,868.3 1,889.9
45 Final
46 Consumer goods
47 Equipment
48 Intermediate
1,350.9 1,481.8 1,455.6 1,464.6 1,478.1 1,490.5 1,4%. 1 1,484.5 1,501.5 1,510.0 1,504.1 1,488.0 1,467.5 1,489.9
876.2
888.5
833.4 879.8 857.4 862.9 874.4 884.2 888.3 882.7 898.3 902.4 902.2
894.5
517.5 602.0 598.2 601.7 603.7 606.2 607.8 601.8 603.3 607.6 601.8
593.5
591.3 601.4
397.6 400.1 399.2 401.0 400.3 401.4 400.8 401.0
400.8 400.0
384.0 398.2 389.8 388.7
1. Data in this table also appear in the Board's G.17 (419) weekly statistical
release. For ordering address see inside front cover.
A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Standard industrial classification.
Selected Measures
2.14
A49
HOUSING A N D CONSTRUCTION
Monthly figures at seasonally adjusted annual rates, except as noted
1992
1991
Item
1989
1990
1991
May
June
July
Aug.
Sept.
Oct.
Nov.
Jan. r
Feb.
1,055
851
204
1,118
972
146
633
458
175
1,021
851
170
176
1,111
912
199
1,180
989
191
641
467
174
1,033
828
205
192
1,166
965
201
1,283
1,131
152
635
468
167
1,051
887
164
197
Dec. r
Private residential real estate activity (thousands of units, except as noted)
N E W UNITS
Permits authorized
? One-family
3
Two-or-more-family
4 Started
One-family
6
Two-or-more-family
7 Under construction at end of period . .
8
One-family
9
Two-or-more-family
10 Completed
II
One-family
1?
Two-or-more-family
13 Mobile homes shipped
1,339
932
407
1,376
1,003
373
850
535
315
1,423
1,026
396
198
1,111
794
317
1,193
895
298
711
449
262
1,308
966
342
188
961
759
202
1,014
840
174
606 R
434 R
173 R
L,091 R
838 R
253
171
966
760
206
983
830
153
665
445
220
1,072
803
269
173
999
780
219
1,036
870
166
654
446
208
1,104
817
287
172
1,005
794
211
1,053
881
172
652
452
200
1,065
809
256
175
953
769
184
1,053
881
172
648
455
193
1,051
821
230
175
982
782
200
1,020
864
156
632
452
180
1,193
870
323
172
1,028
796
232
1,085
887
198
631
451
180
1,073
879
194
171
14
15
Merchant builder activity in
one-family units
Number sold
Number for sale at end of period' . . .
650
365
535
321
507 R
283
511
298
513
296
505
295
522
292
499
292
526
289
578 R
286
567
283
630
281
613
269
16
17
Price of units sold (thousands
of dollars)2
Median
Average
120.4
148.3
122.3
149.0
120.0
147.0"
116.0
145.4
119.0
145.9
120.0
148.2
120.8
141.8
120.0
147.3
122.6
147.4
118.5
141.7 R
122.0
142.8
123.0
145.1
117.0
144.7
18
Number sold
3,346
3,211
3,219
3,480 R
3,480 R
3,260 R
3,I90R
3,120R
3,150 R
3,230 R
3,310
3,220
3,490
92.9
118.0
95.2
118.3
99.7
127.4
101.3
130.8
102.1
130.6
103.4
132.2
102.0
130.9
100.3
127.8
99.1
126.4
97.9
124.9
100.3
127.3
102.4
130.5
102.8
128.8
1
993
787
206
1,085
907
178
633
454
179
1,021
824
197
171
EXISTING U N I T S ( o n e - f a m i l y )
Price of units sold
(thousands
of dollars)2
19
20
Average
Value of new construction3 (millions of dollars)
CONSTRUCTION
21
77
73
?4
?5
?6
77
28
79
30
31
17
33
Total put in place
Residential
Nonresidential, total
Industrial buildings
Commercial buildings
Other buildings
Public utilities and other
Public
Military
Highway
Conservation and development...
Other
443,720 446,433 403,955r
399,030
398,189
398,409
403,151
406,983 408,779r 405,482" 400,825
407,934
406,243
345,416
196,551
148,865
20,412
65,496
19,683
43,274
337,776
182,856
154,920
23,849
62,866
21,591
46,614
295,187R
I60,561R
134,626 R
21,732
47,997
20,707
44,190"
291,048
154,567
136,481
20,683
50,220
20,858
44,720
290,871
158,282
132,589
20,868
47,596
20,429
43,696
290,299
158,039
132,260
20,885
47,144
20,674
43,557
293,402
162,800
130,602
20,418
46,341
19,973
43,870
296,621
166,578
130,043
20,321
45,589
20,615
43,518
296,306R
166,919R
129,387 R
21,573R
44,580"
20,657"
42,577"
293,693"
166,474"
127,219"
21,665
42,155"
20,368"
43,031"
291,202
165,378
125,824
22,472
40,763
20,770
41,819
294,664
168,636
126,028
22,246
39,863
20,628
43,291
292,628
168,484
124,144
21,656
39,338
20,519
42,631
98,303
3,520
28,171
4,989
61,623
108,655
2,734
30,595
4,718
70,608
108,769 R
1,880 R
29,012
5,331 R
72,546R
107,982
1,918
29,246
5,123
71,695
107,318
1,864
28,776
5,807
70,871
108,110
1,759
28,854
4,688
72,809
109,749
1,783
30,047
4,901
73,018
110,361
2,261
28,610
4,226
75,264
112,472"
1,181"
29,038"
6,095"
76,158"
111,790"
1,829"
28,737"
6,812"
74,412"
109,624
2,671
28,991
5,412
72,550
113,270
2,071
29,310
5,377
76,512
113,614
2,266
31,791
5,886
73,671
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 Bureau in July 1976.
SOURCE. Bureau of the Census estimates for all series except (1) mobile homes,
which are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 17,000 jurisdictions
beginning in 1984.
A50
2.15
Domestic Nonfinancial Statistics • June 1992
CONSUMER A N D 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
1991
1991
Mar.
Change from 1 month earlier
1992
1991
Index
level,
Mar.
1992
1992
1992
Mar.
June
Sept.
Dec.
Mar.
Nov.
Dec.
Jan.
Feb.
Mar.
.1
.3
.5
139.3
.3
.5
138.1
-.9
.6
.3
.6
.5
.5
.5
98.9
146.4
132.1
154.7
.2
-.5
1.2
.2
.2
122.0
123.4
74.4
136.4
128.4
.5
CONSUMER PRICES 2
(1982-84=100)
1 All items
4.9
3.2
3.0
3.0
3.2
3.5
.4
.2
2 Food
3 Energy items
4 All items less food and energy
5 Commodities
6 Services
3.3
1.7
4.8
-2.3
2.7
1.5
.4
.3
-.4
4.4
5.2
3.8
6.0
-.8
3.9
3.1
4.2
-.8
3.2
2.2
3.3
1.2
4.6
4.4
4.6
3.6
3.1
.6
4.3
-6.9
4.8
5.3
4.8
.8
.3
.3
.3
.1
.2
-.2
-1.5
.3
.2
.4
.4
3.2
.6
12.7
4.2
3.5
.9
-1.4
-1.5
2.7
1.7
.7
-.6
-1.5
1.8
1.6
1.3
-4.4
3.7
3.6
1.3
1.0
-1.3
-.5
2.4
1.9
.7
1.0
-7.0
3.0
1.9
-.2
.1
-.1
-.2
-1.4
-.3
-.3
-2.8
.2R
.R
.4
.2
.2
.2
.2
1.1
-.1
.1
.0
1.7
1.2
-.5
-.2
-1.0
-.7
.4
-1.7
.0
.0
1.7
-.lr
.1
-.R
-1.3
-.5
-.2
.4
.0
.2
113.8
121.6
-4.7
-2.0
-1.5
-2.2
-4.5
-3.3
-8.6
.5
-6.6
-.5
-4.9
-3.8
4.8
-7.4
11.3
-20.7
15.5
-.7r
,7r
-.8r
-4.R
1.7
-3.5
.0
2.2
1.2
1.4
-1.2
-3.4
2.2
107.5
73.5
127.8
.4
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
-14.1
1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a
.1
.1
-.3r
-,6r
rental-equivalence measure of homeownership.
SOURCE. Bureau of Labor Statistics.
Selected Measures
2.16
A51
GROSS DOMESTIC PRODUCT A N D INCOME
Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates
1991
1990
1989
1990
1991r
Q4
Ql
Q2
Q3
Q4<
GROSS DOMESTIC PRODUCT
5,244.0
5,513.8
5,672.6
5,557.5
5,589.0
5,652.6
5,709.2
5,739.7
3,517.9
459.8
1,146.9
1,911.2
3.742.6
465.9
1.217.7
2,059.0
3,889.1
445.2
1,251.9
2,191.9
3,812.0
451.9
1,246.4
2,113.6
3,827.7
440.7
1,246.3
2,140.7
3.868.5
440.0
1,252.9
2.175.6
3,916.4
452.9
1,257.4
2,206.1
3,943.7
447.3
1.251.1
2.245.2
837.6
801.6
570.7
193.1
377.6
230.9
802.6
802.7
587.0
198.7
388.3
215.7
726.7
745.2
550.1
174.6
375.5
195.1
750.9
787.4
585.2
191.2
394.0
202.2
709.3
748.4
560.0
184.0
375.9
188.4
708.8
745.8
554.6
180.0
374.7
191.2
740.9
744.5
546.8
169.0
377.8
197.7
747.9
742.0
539.0
165.2
373.8
203.0
36.0
35.5
.0
-2.0
-18.5
-15.0
-36.5
-28.9
-39.2
-35.0
-37.1
-34.0
-3.6
-3.2
6.0
12.1
14 Net exports of goods and services
15 Exports
16 Imports
-82.9
504.9
587.8
-74.4
550.4
624.8
-30.7
591.3
622.0
-76.6
572.6
649.2
-36.8
565.9
602.7
-17.2
589.8
607.0
-37.3
597.0
634.3
-31.4
612.5
643.8
17 Government purchases of goods and services ..
18 Federal
19 State and local
971.4
401.4
570.0
1,042.9
424.9
618.0
1,087.5
445.1
642.4
1,071.2
434.5
636.7
1,088.8
451.5
637.3
1,092.5
452.1
640.4
1,089.1
444.9
644.2
1,079.5
432.0
647.5
5.208.1
2,062.1
892.9
1.169.2
2,634.7
511.3
5,513.8
2,167.6
934.7
1,233.0
2,834.0
512.2
5.691.1
2,211.7
926.5
1.285.2
3,012.9
466.5
5,594.0
2,194.5
927.2
1,267.3
2,905.5
494.0
5,628.2
2,208.6
916.4
1,292.1
2,951.7
467.9
5.689.6
2,223.2
939.5
1.283.7
2,999.0
467.4
5,712.8
2,214.1
929.4
1,284.7
3,035.1
463.5
5,733.8
2,200.8
920.5
1,280.3
3,065.7
467.3
36.0
26.9
9.1
.0
-7.0
7.0
-18.5
-25.2
6.7
-36.5
-29.4
-7.1
-39.2
-43.5
4.3
-37.1
-33.5
-3.6
-3.6
-9.2
5.6
6.0
-14.5
20.4
4,836.9
4,884.9
4,848.8
4,855.1
4,824.0
4,840.7
4,862.7
4,868.0
4,244.7
4,459.6
4,542.5
4,506.8
4,489.8
4,530.8
4,559.8
4,589.3
3,101.3
2,585.8
478.6
2,107.2
515.5
261.7
253.7
3,290.3
2,738.9
514.0
2,224.9
551.4
277.3
274.0
3,388.2
2,808.2
540.5
2,267.7
580.0
289.4
290.6
3,340.0
2,778.3
525.4
2,253.0
561.6
281.7
279.9
3,342.9
2,771.1
536.0
2,235.1
571.8
287.5
284.2
3,377.4
2,800.2
540.1
2,260.1
577.2
288.7
288.5
3.405.3
2.822.4
541.8
2,280.6
582.9
290.2
292.8
3,427.4
2,839.3
544.2
2,295.1
588.1
291.1
297.0
347.0
305.5
41.4
373.2
330.7
42.5
379.7
344.5
35.1
373.9
332.7
41.2
364.2
331.4
32.8
380.0
340.4
39.6
382.5
350.5
32.0
392.0
355.9
36.1
-7.9
1 Total
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
Fixed investment
7
8
Nonresidential
Structures
9
10
Producers' durable equipment
11
Residential structures
12
13
Change in business inventories
Nonfarm
By major type of product
20 Final sales, total
21 Goods
22
Durable
23
Nondurable
24 Services
25 Structures
26 Change in business inventories
27 Durable goods
28 Nondurable goods
MEMO
29 Total GDP in 1987 dollars
NATIONAL INCOME
30 Total
31 Compensation of employees
32 Wages and salaries
33
Government and government enterprises . .
34
Other
35 Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income
38 Proprietors'income 1
39 Business and professional1
40 Farm 1
-12.9
-12.7
-9.5
-11.9
-11.7
-14.2
-13.1
42 Corporate profits ..
43 Profits before tax 3
44 Inventory valuation adjustment
45 Capital consumption adjustment
351.7
344.5
-17.5
24.7
319.0
332.3
-14.2
.8
307.1
312.7
3.1
-8.7
296.1
326.1
-21.2
-8.8
302.1
309.1
6.7
-13.6
303.5
306.2
9.9
-12.6
306.1
318.2
-4.8
-7.3
316.6
317.2
.7
-1.3
46 Net interest
452.6
490.1
480.2
506.4
492.6
481.6
480.1
466.5
41 Rental income of persons 2
1
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (U.S. Department of Commerce).
A52
2.17
Domestic Nonfinancial Statistics • June 1992
PERSONAL INCOME A N D SAVING
Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates
1990
Account
1989
1990
1991
1991 R
Q4
Q1
Q2
Q3
Q4r
PERSONAL INCOME AND SAVING
1 Total personal income
4,380.2
4,679.8
4,834.4
4,764.7
4,768.0
4,821.1
4,853.3
4,895.3
2 Wage and salary disbursements
3 Commodity-producing industries
Manufacturing
4
5 Distributive industries
6
Service industries
7 Government and government enterprises
2,585.8
723.8
542.1
607.5
775.9
478.6
2,738.9
745.4
555.8
634.6
845.0
514.0
2,808.3
738.7
556.5
641.2
887.8
540.6
2,778.2
745.2
557.3
639.0
868.8
525.2
2,770.9
733.4
549.3
635.1
866.5
535.8
2,800.6
735.2
552.3
642.0
883.0
540.5
2,822.4
742.3
559.9
644.0
894.4
541.8
2,839.3
744.1
564.3
643.9
907.2
544.2
253.7
347.0
305.5
41.4
-7.9
119.8
669.0
624.4
325.1
274.0
373.2
330.7
42.5
-12.9
124.8
721.3
684.9
352.0
290.6
379.7
344.5
35.1
-12.7
128.5
718.6
759.5
380.0
279.9
373.9
332.7
41.2
-9.5
127.0
736.9
705.8
358.4
284.2
364.2
331.4
32.8
-11.9
128.7
730.1
737.2
373.1
288.5
380.0
340.4
39.6
-11.7
127.4
721.8
751.5
377.2
292.8
382.5
350.5
32.0
-14.2
128.7
716.7
763.7
381.7
297.0
392.0
355.9
36.1
-13.1
129.4
705.7
785.4
388.1
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income1
Business and professional1
Farm'
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
19
LESS: Personal tax and nontax payments
211.7
224.3
238.0
227.5
235.4
237.0
239.3
240.4
4,380.2
4,679.8
4,834.4
4,764.7
4,768.0
4,821.1
4,853.3
4,895.3
591.7
621.0
616.1
627.2
617.1
613.6
615.1
618.4
20 EQUALS: Disposable personal income
3,788.6
4,058.8
4,218.4
4,137.5
4,151.0
4,207.5
4,238.2
4,276.8
21
LESS: Personal outlays
3,622.4
3,853.1
3,999.1
3,922.5
3,938.4
3,978.7
4,025.7
4,053.5
22 EQUALS: Personal saving
166.1
205.8
219.3
215.0
212.6
228.8
212.5
223.4
19,550.5
13,027.6
14,030.0
19,540.2
13,050.8
14,154.0
19,189.8
12,897.9
13,990.0
19,337.3
12,951.6
14,058.0
19,166.5
12,877.4
13,965.0
19,187.7
12,892.0
14,022.0
19,220.9
12,930.2
13,992.0
19,184.8
12,891.4
13,981.0
4.4
5.1
5.2
5.2
5.1
5.4
5.0
5.2
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
743.4
710.9
715.S
677.5
746.9
713.1
697.2
704.8
28 Gross private saving
826.5
850.4
887.0
853.1
873.0
892.1
875.5
907.2
29 Personal saving
30 Undistributed corporate profits
31 Corporate inventory valuation adjustment
166.1
85.8
-17.5
205.8
49.9
-14.2
219.3
44.7
3.1
215.0
32.8
-21.2
212.6
45.0
6.7
228.8
43.4
9.9
212.5
39.4
-4.8
223.4
51.2
.7
Capital consumption
32 Corporate
33 Noncorporate
350.5
224.0
365.5
229.3
383.6
239.3
372.7
232.7
380.1
235.3
383.2
236.8
384.6
239.1
386.6
246.1
-83.0
-124.2
41.1
-139.5
-165.3
25.7
-171.5
-201.5
30.0
-175.6
-193.6
18.0
-126.1
-146.4
20.4
-179.1
-206.7
27.6
-178.4
-210.2
31.8
-202.4
-242.8
40.4
allowances
34 Government surplus, or deficit ( - ) , national income and
product accounts
35 Federal
36 State and local
37 Gross investment
740.7
719.0
734.3
679.6
764.9
729.6
719.1
723.4
38 Gross private domestic
39 Net foreign
837.6
-96.8
802.6
-83.6
726.7
7.6
750.9
-71.3
709.3
55.7
708.8
20.8
740.9
-21.8
747.9
-24.5
-2.7
8.1
18.8
2.1
18.0
16.5
22.0
18.6
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (U.S. Department of Commerce).
Summary Statistics
3.10
U.S. INTERNATIONAL TRANSACTIONS
A53
Summary
Millions of dollars; quarterly data seasonally adjusted, except as noted 1
1991
1990
1990
Item credits or debits
1 Balance on current account
2 Not seasonally adjusted 2
3 Merchandise trade. balance
. .
Merchandise exports
4
Merchandise imports
5
6 Military transactions, net
7 Investment income, net
Other service transactions, net
Remittances, pensions, and other transfers .
U.S. government grants (excluding military)
1991
-106,304
-92,123
-8,615
-115,917
361,451
-477,368
-6,203
2,689
-108,115
389,550
-497,665
-7,219
11,945
33,595
-4,843
-17,486
-73,586
416,517
-490,103
-5,280
9,363
41,158
-5,383
25,111
28,618
-4,420
-11,071
Q4
Q1
Q2
Q3
Q4
-23,402
-25,136
-27,728
100,580
-128,308
-2,243
6,133
9,716
-1,201
-8,079
10,374
15,507
-18,538
100,549
-119,087
-2,329
4,902
9,420
-1,336
18,255
2,897
4,593
-15,537
103,889
-119,426
-1,484
2,365
10,445
-1,336
8,444
-11,617
-16,502
-20,849
104,018
-124,867
-882
1,863
11,131
-1,293
-1,587
-10,266
-12,213
-18,662
108,061
-126,723
-584
234
10,163
-1,417
0
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )
1,320
2,976
3,572
4,759
1,422
-493
3,197
-553
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
-25,293
0
-535
471
-25,229
-2,158
0
-192
731
-2,697
5,763
0
-177
-367
6,307
-1,092
0
-93
-4
-995
-353
0
31
-341
-43
1,014
0
-190
72
1,132
3,878
0
6
-114
3,986
1,225
0
-23
17
1,232
17 Change in U.S. private assets abroad (increase, - ) .
18 Bank-reported claims3
19 Nonbank-reported claims
20 U.S. purchases of foreign securities, net
21
U.S. direct investments abroad, net
-104,637
-51,255
2,581
-22,575
-33,388
-58,524
5,333
-1,944
-28,476
-33,437
-77,082
3,428
-4,798
-46,215
-29,498
-38,370
-24,513
-2,509
-7,546
-3,802
-2,192
20,598
-1,308
-9,430
-12,052
-15,702
1,215
-2,076
-12,833
-2,008
-18,281
-40,908
-20,710
22 Change in foreign official assets in United States (increase, +) ..
23
U.S. Treasury securities
24 Other U.S. government obligations
25 Other U.S. government liabilities
26 Other U.S. liabilities reported by U.S. banks 3
27 Other foreign official assets
8,624
149
1,383
4,976
1,835
32,425
28,643
667
1,703
2,998
-1,586
20,585
18,623
926
1,603
-1,856
1,289
20,301
20,119
708
1,102
-707
-921
6,631
2,381
-29
1,012
2,501
766
-3,105
-2,287
-219
370
-1,084
115
3,854
5,799
407
453
-2,830
25
13,205
12,730
767
-232
-443
383
28 Change in foreign private assets in United States (increase, + ) . .
29
U.S. bank-reported liabilities3
30 U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in United States, net
207,925
63,382
5,454
29,618
38,920
70,551
53,879
9,975
3,779
1,131
1,781
37,213
58,919
-15,046
-511
18,732
17,261
-1,840
-2,029
802
4,538
-7,361
-18,795
23,125
6,474
1,865
-1,468
10,154
6,100
36,546
25,962
3,409
5,306
4,336
6,608
-28,687
-760
13,434
15,073
7,548
0
18,366
0
63,526
0
-3,139
0
19,072
2,007
0
-8,522
4,322
0
8,781
496
0
-4,156
-6,232
0
750
1,407
18,366
63,526
-3,139
17,066
-12,844
8,285
2,076
-657
-25,293
-2,158
5,763
-1,092
-353
1,014
3,878
1,226
8,343
30,722
18,982
19,199
5,619
-3,475
3,401
13,437
10,738
2,163
-3,656
575
988
-3,162
-4,352
2,870
34 Allocation of special drawing rights
35 Discrepancy
36 Due to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment
281
16,861
35,417
22,198
-1,616
2,325
-1,414
-12,533
-6,659
-ii,419
-8,779
i ,486
4,884
4,214
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
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)
38
39
1. Seasonal factors not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-40.
2. Data are on an international accounts (IA) 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 6.
3. Reporting banks include all kinds of depository institutions besides commer-
cial banks, 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. Survey of Current Business (U.S. Department of Commerce).
A54
3.11
International Statistics • June 1992
U.S. FOREIGN TRADE 1
Millions of dollars; exports, F.A.S. value; imports, Customs value; monthly data seasonally adjusted
1991
Item
1 Exports of domestic and foreign
merchandise, excluding grant-aid
shipments
2 General imports, including merchandise
for immediate consumption plus
entries into bonded warehouses
3 Trade balance
1989
363,812
1990
393,592
421,614
Aug.
Sept.
Oct.
Nov.
Dec.
Jan. r
Feb."
34,380
35,348
37,114
36,939
35,887
35,406
37,815
473,211
495,311
487,870
40,910
42,282
43,434
41,109
41,886
41,355
41,198
-109,399
-101,718
-66,256
-6,530
-6,934
-6,320
-4,171
-5,999
-5,949
-3,383
1. The Census basis data differ from merchandise trade data shown in table
3.10, U.S. International Transactions Summary, because of coverage and timing.
On the export side, the largest difference is the exclusion of military sales (which
are combined with other military transactions and reported separately in the
"service account" in table 3.10, line 6). On the import side, this table includes
imports of gold, ship purchases, imports of electricity from Canada, and other
transactions; military payments are excluded and shown separately in table 3.10,
3.12
1992
1991
as indicated above. Since Jan. 1, 1987 census data have been released forty-five
days after the end of the month; the previous month is revised to reflect late
documents. Total exports and the trade balance reflect adjustments for undocumented exports to Canada. Components may not sum to totals because of
rounding.
SOURCE. FT900, Summary of U.S. Export and Import Merchandise Trade
(U.S. Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1991
Type
1 Total
2 Gold stock, including Exchange
Stabilization Fund,
3 Special drawing rights •
4 Reserve position in International
Monetary Fund
5 Foreign currencies 4
1988
1989
Sept.
Oct.
Dec.
Jan.
Feb.
47,802
74,609
83,316
74,731
74,508
74,651
77,719
75,868
75,088
11,057
9,637
11,059
9,951
11,058
10,989
11,062
10,722
11,059
10,710
11,058
10,942
11,057
11,240
11,058
10,980
11,058
11,020
9,745
17,363
9,048
44,551
9,076
52,193
9,094
43,853
9,065
43,674
8,943
43,708
9,488
45,934
9,113
44,717
8,996
44,014
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. Gold stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights are valued according to a techique 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, 16 currencies were used; since January 1981, 5 curren-
3.13
1992
1990
cies 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 by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus net transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1991
Assets
1988
1989
Sept.
1 Deposits
Assets held in custody
2 U.S. Treasury securities2
3 Earmarked gold3
Oct.
Nov.
Dec.
Jan. r
Feb."
Mar.P
347
589
369
384
223
346
968
321
264
262
232,547
13,636
224,911
13,456
278,499
13,387
279,013
13,330
280,249
13,326
285,905
13,307
281,107
13,303
293,958
13,303
297,834
13,305
300,277
13,304
1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies at face value.
1992
1990
3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce,
Earmarked gold is gold held for foreign and international accounts; it is not
included in the gold stock of the United States.
Summary Statistics
3.14
FOREIGN BRANCHES OF U.S. BANKS
A55
Balance Sheet Data'
Millions of dollars, end of period
1992
1991
Assets
1988
1989
1990
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
All foreign countries
505,595
545,366
556,925
528,077
547,038
546,570
550,777
548,901
547,968
550,618
7 Claims on United States
Parent bank
4 Other banks in United States
5 Nonbanks
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
11 Other assets
169,111
129,856
14,918
24,337
299,728
107,179
96,932
17,163
78,454
36,756
198,835
157,092
17,042
24,701
300,575
113,810
90,703
16,456
79,606
45,956
188,4%
148,837
13,296
26,363
312,449
135,003
72,602
17,555
87,289
55,980
169,061
130,169
12,447
26,445
2%,855
112,916
76,393
19,110
88,436
62,161
177,572
137,036
13,692
26,844
299,910
114,526
77,293
18,930
89,161
69,556
176,959
136,570
13,432
26,957
299,915
108,269
80,060
18,685
92,901
69,696
177,828
137,165
13,543
27,120
304,212
107,343
84,980
18,940
92,949
68,737
176,301
137,509
12,884
25,908
303,934
111,729
81,970
18,652
91,583
68,666
180,298
142,483
11,715
26,100
297,154
103,456
82,081
18,223
93,394
70,516
178,026
142,019
10,837
25,170
301,900
108,052
83,255
18,421
92,172
70,692
12 Total payable in U.S. dollars
357,573
382,498
379,479
359,316
367,828
365,223
365,143
363,941
359,651
365,149
191,184
152,294
16,386
22,504
169,690
82,949
48,396
10,961
27,384
21,624
180,174
142,962
12,513
24,699
174,451
95,298
36,440
12,298
30,415
24,854
163,593
126,746
11,973
24,874
167,039
79,317
41,761
14,160
31,801
28,684
171,393
133,450
13,109
24,834
166,677
79,860
40,656
13,609
32,552
29,758
170,615
132,929
12,904
24,782
164,543
75,649
41,132
13,889
33,873
30,065
171,701
133,984
12,668
25,049
165,653
75,986
42,808
13,671
33,188
27,789
169,662
133,476
12,025
24,161
167,010
78,114
41,635
13,685
33,576
27,269
174,033
138,892
10,924
24,217
157,132
70,637
39,753
13,202
33,540
28,486
172,377
138,754
10,006
23,617
163,623
75,087
41,839
13,136
33,561
29,149
1 Total, all currencies
n Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19
70 Public borrowers
71
Nonbank foreigners
22 Other assets
163,456
126,929
14,167
22,360
177,685
80,736
54,884
12,131
29,934
16,432
United Kingdom
23 Total, all currencies
156,835
161,947
184,818
162,879
172,113
172,795
174,648
175,599
174,467
172,479
74 Claims on United States
75 Parent bank
76 Other banks in United States
77 Nonbanks
78 Claims on foreigners
79 Other branches of parent bank
30 Banks
31 Public borrowers
37 Nonbank foreigners
33 Other assets
40,089
34,243
1,123
4,723
106,388
35,625
36,765
4,019
29,979
10,358
39,212
35,847
1,058
2,307
107,657
37,728
36,159
3,293
30,477
15,078
45,560
42,413
792
2,355
115,536
46,367
31,604
3,860
33,705
23,722
31,315
28,189
816
2,310
103,935
38,382
30,168
3,717
31,668
27,629
34,409
31,205
997
2,207
105,699
39,077
31,658
3,502
31,462
32,005
32,615
29,021
1,502
2,092
108,397
36,757
33,375
3,492
34,773
31,783
32,531
28,901
1,259
2,371
111,323
36,637
36,709
3,512
34,465
30,794
35,257
31,931
1,267
2,059
109,692
35,735
36,394
3,306
34,257
30,650
36,660
32,765
1,432
2,463
108,006
33,357
36,497
3,377
34,775
29,801
34,655
31,302
1,211
2,142
107,645
33,924
36,700
3,144
33,877
30,179
34 Total payable in U.S. dollars
103,503
103,208
116,762
100,966
105,243
103,439
103,591
105,974
103,833
102,341
38,012
33,252
964
3,796
60,472
28,474
18,494
2,840
10,664
5,019
36,404
34,329
843
1,232
59,062
29,872
16,579
2,371
10,240
7,742
41,259
39,609
334
1,316
63,701
37,142
13,135
3,143
10,281
11,802
28,870
26,608
680
1,582
56,127
30,279
12,534
3,083
10,231
15,969
31,772
29,673
727
1,372
56,354
30,840
12,485
2,899
10,130
17,117
29,995
27,404
1,378
1,213
57,155
28,655
13,269
2,%9
12,262
16,289
30,054
27,689
894
1,471
59,200
29,210
15,480
2,848
11,662
14,337
32,418
30,370
822
1,226
58,791
28,667
15,219
2,853
12,052
14,765
33,801
31,239
901
1,661
55,281
26,827
14,106
2,707
11,641
14,751
31,788
29,724
678
1,386
55,985
26,747
14,789
2,657
11,792
14,568
35 Claims on United States
36 Parent bank
37 Other banks in United States
38 Nonbanks
39 Claims on foreigners
40 Other branches of parent bank
41 Banks
4?
Public borrowers
41 Nonbank foreigners
44 Other assets
Bahamas and Caymans
45 Total, all currencies
170,639
176,006
162,316
166,333
169,898
170,529
170,846
168,326
167,678
168,972
46 Claims on United States
47 Parent bank
48 Other banks in United States
49
50 Claims on foreigners
51 Other branches of parent bank
5? Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
105,320
73,409
13,145
18,766
58,393
17,954
28,268
5,830
6,341
6,926
124,205
87,882
15,071
21,252
44,168
11,309
22,611
5,217
5,031
7,633
112,989
77,873
11,869
23,247
41,356
13,416
16,310
5,807
5,823
7,971
111,787
77,566
11,119
23,102
46,318
10,774
21,113
7,394
7,037
8,228
116,263
80,890
12,063
23,310
45,321
10,326
20,535
7,149
7,311
8,314
117,782
83,286
11,028
23,468
43,662
9,086
20,300
7,435
6,841
9,085
118,164
83,348
11,457
23,359
44,177
10,268
19,865
7,363
6,681
8,505
115,244
81,520
10,907
22,817
45,229
11,098
20,174
7,161
6,7%
7,853
116,694
84,712
9,626
22,356
42,660
10,549
18,787
6,600
6,724
8,324
115,400
84,499
8,%9
21,932
44,033
11,528
19,311
6,545
6,649
9,539
56 Total payable in U.S. dollars
163,518
170,780
158,390
162,260
165,966
166,598
166,582
163,771
163,108
164,548
1. Since June 1984, reported claims held by foreign branches have been
reduced by an increase in the reporting threshold for "shell" branches from $50
million to $150 million equivalent in total assets, the threshold now applicable to
all reporting branches.
A56
International Statistics • June 1992
3.14—Continued
1991
Aug.
Sept.
Oct.
1992
Nov.
Dec.
Jan.
Feb.
All foreign countries
57 Total, all currencies
505,595
545,366
556,925
528,077
547,038
546,570
550,777
548,901
547,968
550,618
58 Negotiable certificates of deposit (CDs) ..
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
28,511
185,577
114,720
14,737
56,120
23,500
197,239
138,412
11,704
47,123
18,060
189,412
138,748
7,463
43,201
18,796
178,249
122,179
10,085
45,985
17,579
188,381
131,931
11,843
44,607
18,928
186,246
130,092
10,356
45,798
18,334
188,686
131,383
12,892
44,411
16,284
198,121
136,431
13,260r
48,430"
16,156
189,231
127,730
13,683r
47,818r
15,988
190,885
123,775
12,674
54,436
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
270,923
111,267
72,842
15,183
71,631
20,584
296,850
119,591
76,452
16,750
84,057
27,777
311,668
139,113
58,986
14,791
98,778
37,785
290,257
112,845
62,329
18,030
97,053
40,775
295,393
113,849
62,665
19,420
99,459
45,685
295,282
108,534
68,286
17,247
101,215
46,114
298,152
109,085
67,945
19,394
101,728
45,605
288,254
112,033
63,097
15,596
97,528
46,242
295,713
105,725
72,374
16,704
100,910
46,868
299,046
108,744
71,346
16,972
101,984
44,699
69 Total payable in U.S. dollars
367,483
396,613
383,522
360,397
367,450
366,449
369,515
370,561
360,439
363,680
70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks
24,045
173,190
107,150
13,468
52,572
19,619
187,286
132,563
10,519
44,204
14,094
175,654
130,510
6,052
39,092
14,183
167,207
115,999
8,449
42,759
13,180
176,642
125,429
10,368
40,845
14,157
174,274
123,399
9,011
41,864
13,813
176,254
124,625
11,436
40,193
11,909
185,286
129,669
11,707r
43,910r
11,442
176,783
121,296
12,191r
43,296r
11,515
179,178
117,272
11,532
50,374
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
160,766
84,021
28,493
8,224
40,028
9,482
176,460
87,636
30,537
9,873
48,414
13,248
179,002
98,128
20,251
7,921
52,702
14,772
164,188
79,277
23,330
11,496
50,085
14,819
163,299
79,427
21,239
12,591
50,042
14,329
161,850
75,243
25,653
10,565
50,389
16,168
164,275
76,224
24,501
13,375
50,175
15,173
158,993
76,601
24,156
10,304
47,932
14,373
156,191
70,691
25,748
10,555
49,197
16,023
156,744
74,466
23,665
10,652
47,961
16,243
United Kingdom
156,835
161,947
184,818
162,879
172,113
172,795
174,648
175,599
174,467
172,479
82 Negotiable CDs
83 To United States
Parent bank
84
85
Other banks in United States
Nonbanks
86
24,528
36,784
27,849
2,037
6,898
20,056
36,036
29,726
1,256
5,054
14,256
39,928
31,806
1,505
6,617
14,148
27,915
20,367
1,662
5,886
12,941
31,534
23,707
1,724
6,103
14,145
29,137
21,080
2,053
6,004
13,506
30,560
22,629
1,934
5,997
11,333
37,720
29,834
1,438
6,448
10,993
31,018
23,112
2,325
5,581
10,581
30,631
23,464
1,891
5,276
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
86,026
26,812
30,609
7,873
20,732
9,497
92,307
27,397
29,780
8,551
26,579
13,548
108,531
36,709
25,126
8,361
38,335
22,103
96,773
27,457
25,131
10,722
33,463
24,043
98,572
29,898
23,525
12,071
33,078
29,066
100,267
26,879
28,254
10,045
35,089
29,246
102,299
26,977
27,959
12,628
34,735
28,283
98,167
30,054
25,541
9,670
32,902
28,379
104,868
27,561
31,929
10,432
34,946
27,588
104,432
27,864
30,686
10,685
35,197
26,835
81 Total, all currencies
105,907
108,178
116,094
100,131
104,303
103,238
104,433
108,755
103,232
100,882
94 Negotiable CDs
95 To United States
Parent bank
96
97
Other banks in United States
Nonbanks
98
22,063
32,588
26,404
1,752
4,432
18,143
33,056
28,812
1,065
3,179
12,710
34,697
29,955
1,156
3,586
12,337
23,788
18,949
1,216
3,623
11,249
27,272
22,228
1,259
3,785
12,397
24,394
19,391
1,704
3,299
12,042
25,517
20,923
1,481
3,113
10,076
33,003
28,260
1,177
3,566
9,236
26,419
21,663
1,954
2,802
9,061
26,261
21,788
1,639
2,834
99 To foreigners
100 Other branches of parent bank
101
Banks
102 Official institutions
103
Nonbank foreigners
104 Other liabilities
47,083
18,561
13,407
4,348
10,767
4,173
50.517
18,384
12,244
5,454
14,435
6,462
60,014
25,957
9,488
4,692
19,877
8,673
54,848
18,480
9,731
7,929
18,708
9,158
56,829
20,878
8,401
9,149
18,401
8,953
56,639
18,319
12,040
7,050
19,230
9,808
57,527
18,678
10,542
9,995
18,312
9,347
56,626
20,800
11,069
7,156
17,601
9,050
57,522
18,498
13,061
7,580
18,383
10,055
55,216
18,863
11,188
7,698
17,467
10,344
93 Total payable in U.S. dollars
Bahamas and Caymans
105 Total, all currencies
170,639
176,006
162,316
166,333
169,898
170,529
170,846
168,326
167,678
168,972
963
123,117
77,159
7,036
38,922
1,055
128,150
82,075
8,841
37,234
981
130,223
84,853
7,070
38,300
1,034
129,781
83,057
9,728
36,996
1,173
129,872
79,394
10,23l r
40,247r
1,382
130,433
79,783
10,045r
40,605r
1,709
131,009
73,744
9,733
47,532
106 Negotiable CDs
107 To United States
108
Parent bank
109 Other banks in United States
Nonbanks
110
953
122,332
62,894
11,494
47,944
678
124,859
75,188
8,883
40,788
646
114,738
74,941
4,526
35,271
111 To foreigners
Other branches of parent bank
112
113
Banks
114 Official institutions
115 Nonbank foreigners
116 Other liabilities
45,161
23,686
8,336
1,074
12,065
2,193
47,382
23,414
8,823
1,097
14,048
3,087
44,444
24,715
5,588
622
13,519
2,488
39,994
21,846
5,558
655
11,935
2,259
38,616
20,515
5,431
647
12,023
2,077
36,861
19,675
5,218
666
11,302
2,464
37,857
19,555
5,984
646
11,672
2,174
35,200
17,388
5,662
572
11,578
2,081
33,958
16,442
5,464
450
11,602
1,905
34,425
17,050
5,054
490
11,831
1,829
162,950
171,250
157,132
162,040
165,235
166,226
166,157
163,603
162,667
164,241
117 Total payable in U.S. dollars
Summary Statistics
3.15
A57
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1991r
Item
1 Total1
By type
2 Liabilities reported by banks in the United States
3 U.S. Treasury bills and certificates
U.S. Treasury bonds and notes
6 U.S. securities other than U.S. Treasury securities
By area
10 Asia
12 Other countries
1989
Aug.
Sept.
Oct.
Nov.
Dec.
Jan. r
Feb."
312,477
344,529
350,476
356,885
350,518
358,025
366,199
364,286
374,385
36,496
76,985
39,880
79,424
43,417
86,071
47,374
88,596
38,402
90,394
41,526
94,428
42,701
92,855
38,161
92,692
40,487
92,711
179,269
568
19,159
202,487
4,491
18,247
197,104
4,704
19,180
196,815
4,734
19,366
197,645
4,765
19,312
198,157
4,7%
19,118
205,351
4,827
20,465
207,805
4,858
20,770
215,549
4,892
20,746
132,849
9,482
9,313
153,338
1,030
6,469
167,191
8,671
21,184
138,0%
1,434
7,955
166,349
9,260
30,064
134,806
1,183
8,812
170,467
10,001
31,377
134,826
1,202
9,010
165,061
9,608
31,911
133,082
1,558
9,2%
170,423
9,121
32,604
134,667
1,519
9,689
173,891
9,428
33,991
137,522
1,383
9,982
169,652
7,310
36,038
139,590
2,092
9,602
173,873
7,636
36,774
145,407
2,409
8,284
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
3.16
1992
1990
bonds and notes payable in foreign currencies; zero coupon bonds are included at
current value.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
SOURCE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States and on the 1984 benchmark survey of foreign portfolio
investment in the United States.
LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies 1
Millions of dollars, end of period
1991r
Item
1988
74,980
68,983
25,100
43,884
364
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
1989
67,835
65,127
20,491
44,636
3,507
1990
70,477
66,7%
29,672
37,124
6,309
Mar.
June
Sept.
Dec.
64,815
65,404
27,587
37,818
4,375
59,306
60,534
27,795
32,739
1,648
63,063
63,518
29,632
33,886
2,348
74,944
73,099
26,307
46,792
3,274
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.
A58
3.17
International Statistics • June 1992
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States 1
Millions of dollars, end of period
1992
1991"
Holder and type of liability
1989
1990
1991r
Aug.
Sept.
Oct.
Nov.
Dec.
Jan. r
Feb."
1 All foreigners
736,878
759,634
753,759
735,425
739,374
750,213
758,168
753,759
750,593
753,961
2 Banks' own liabilities
3 Demand deposits
4 Time deposits 2
Other.
6 Own foreign offices4
577,498
22,032
168,780
67,823
318,864
577,229
21,723
168,017
65,822
321,667
573,156
20,319
159,520
65,607
327,710
554,807
18,425
147,136
71,791
317,455
558,008
19,889
150,211
67,927
319,981
565,384
17,637
154,693
72,934
320,120
575,625
21,630
154,314
75,679
324,002
573,156
20,319
159,520
65,607
327,710
571,078
19,309
147,328
73,698
330,743
573,289
18,902
144,298
77,092
332,997
159,380
91,100
182,405
96,796
180,603
110,734
180,618
105,325
181,366
107,019
184,829
112,280
182,543
110,938
180,603
110,734
179,515
109,980
180,672
112,299
19,526
48,754
17,578
68,031
18,664
51,205
16,475
58,818
16,791
57,556
17,047
55,502
17,206
54,399
18,664
51,205
17,687
51,848
17,115
51,258
7 Banks' custody liabilities5
8 U.S. Treasury bills and certificates6
9 Other negotiable and readily transferable
instruments 7
10 Other
11 Nonmonetary international and regional
organizations
4,894
5,918
8,597
6,945
7,160
7,665
8,721
8,597
9,795
10,555
12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 Other
3,279
96
927
2,255
4,540
36
1,050
3,455
6,443
43
2,414
3,986
4,971
28
1,550
3,393
5,655
36
2,307
3,312
5,964
28
2,490
3,446
6,828
24
2,392
4,412
6,443
43
2,414
3,986
8,012
39
1,949
6,024
8,819
35
1,808
6,976
16 Banks' custody liabilities5
17 U.S. Treasury bills and certificates 6
18 Other negotiable and readily transferable
instruments
19 Other
1,616
197
1,378
364
2,154
1,730
1,974
1,269
1,505
1,032
1,701
1,246
1,893
1,530
2,154
1,730
1,783
1,328
1,736
1,317
1,417
2
1,014
0
424
0
705
0
473
0
455
0
363
0
424
0
455
0
417
2
20 Official institutions9
113,481
119,303
130,903
136,648
129,519
135,933
135,640
130,903
133,827
136,804
21 Banks' own liabilities
22 Demand deposits
23 Time deposits
24 O t h e r .
31,108
2,196
10,495
18,417
34,910
1,924
14,359
18,628
34,226
2,642
16,324
15,260
43,860
1,683
15,465
26,712
34,603
1,645
13,951
19,007
37,559
1,307
14,544
21,708
38,960
1,621
13,145
24,194
34,226
2,642
16,324
15,260
37,604
1,480
16,203
19,921
38,187
1,297
14,444
22,446
25 Banks' custody liabilities5
26 U.S. Treasury bills and certificates 6
27 Other negotiable and readily transferable
instruments
28 Other
82,373
76,985
84,393
79,424
96,677
92,692
92,788
88,596
94,916
90,394
98,374
94,428
96,680
92,855
96,677
92,692
96,223
92,711
98,617
94,731
5,028
361
4,766
203
3,879
106
4,021
171
4,102
420
3,811
135
3,611
214
3,879
106
3,424
88
3,699
187
29 Banks10
515,275
540,805
520,138
501,929
511,935
515,954
521,517
520,138
515,054
516,343
30 Banks' own liabilities
31 Unaffiliated foreign banks
Demand deposits
32
33
Time deposits 2
34
Other.
35 Own foreign offices 4
454,273
135,409
10,279
90,557
34,573
318,864
458,470
136,802
10,053
88,541
38,208
321,667
457,566
129,856
8,630
83,088
38,138
327,710
431,124
113,669
8,254
70,595
34,820
317,455
442,303
122,322
8,990
74,589
38,743
319,981
447,730
127,610
8,164
78,181
41,265
320,120
455,881
131,879
11,396
80,199
40,284
324,002
457,566
129,856
8,630
83,088
38,138
327,710
451,178
120,435
8,807
73,079
38,549
330,743
453,170
120,173
8,369
73,786
38,018
332,997
61,002
9,367
82,335
10,669
62,572
7,471
70,805
8,242
69,632
8,161
68,224
8,363
65,636
7,855
62,572
7,471
63,876
7,693
63,173
7,700
5,124
46,510
5,341
66,325
5,694
49,407
5,309
57,254
5,816
55,655
6,041
53,820
5,852
51,929
5,694
49,407
5,782
50,401
5,980
49,493
36 Banks' custody liabilities5
37 U.S. Treasury bills and certificates 6
38 Other negotiable and readily transferable
instruments
39 Other
103,228
93,608
94,121
89,903
90,760
90,661
92,290
94,121
91,917
90,259
41 Banks' own liabilities
42 Demand deposits
43 Time deposits2
44 Other 3
88,839
9,460
66,801
12,577
79,309
9,711
64,067
5,530
74,921
9,004
57,694
8,223
74,852
8,460
59,526
6,866
75,447
9,218
59,364
6,865
74,131
8,138
59,478
6,515
73,956
8,589
58,578
6,789
74,921
9,004
57,694
8,223
74,284
8,983
56,097
9,204
73,113
9,201
54,260
9,652
45 Banks' custody liabilities5
46 U.S. Treasury bills and certificates6
47 Other negotiable and readily transferable
instruments
48 Other
14,389
4,551
14,299
6,339
19,200
8,841
15,051
7,218
15,313
7,432
16,530
8,243
18,334
8,698
19,200
8,841
17,633
8,248
17,146
8,551
7,958
1,880
6,457
1,503
8,667
1,692
6,440
1,393
6,400
1,481
6,740
1,547
7,380
2,256
8,667
1,692
8,026
1,359
7,019
1,576
7,203
7,073
7,456
7,062
7,542
7,596
7,137
7,456
7,835
8,048
40 Other foreigners
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners
1. Reporting banks include all kinds of depository institutions besides commercial banks, 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 due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of
foreign banks, consists principally of amounts due to head office or parent foreign
bank, and foreign branches, agencies, or wholly owned subsidiaries of head office
or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development and
the Inter-American and Asian Development Banks. Data exclude "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—Continued
1992
1991
Area and country
1989
1990
1991
Aug.
Sept. r
Oct.
Nov.
Dec.
Jan.'
Feb."
1
736,878
759,634
753,759r
735,425r
739,374
750,213r
758,168'
753,759'
750,593
753,961
2 Foreign countries
731,984
753,716
745,162'
728,480'
732,214
742,548'
749,447'
745,162'
740,798
743,406
237,501
1,233
10,648
1,415
570
26,903
7,578
1,028
16,169
6,613
2,401
2,418
4,364
1,491
34,4%
1,818
102,362
1,474
13,563
350
608
254,452
1,229
12,382
1,399
602
30,946
7,485
934
17,735
5,350
2,357
2,958
7,544
1,837
36,690
1,169
109,555
928
11,689
119
1,545
249,001r
l,193 r
13,337r
937
1,341
31,808
8,620'
765'
13,541r
7,161r
1,866
2,184
11,391
2,222
37,236r
1,598
100,247r
622
9,224r
241
3,467r
234,979r
%1
11,168
1,065
1,170
26,572r
7,038r
851
12,507
5,651
l,248 r
2,313
10,3%
1,424
35,%7
1,780
95,358r
955
15,176
136
3,243
237,068
1,109
13,992
1,038
618
27,467
7,500
944
12,507
6,311
1,459
2,391
10,834
1,435
38,343
1,538
95,612
854
9,670
117
3,329
246,935r
1,232
13,659'
912
938
30,491r
7,891
840
12,274
6,546
l,173 r
2,431
12,279*"
1,217
36,733
1,493
99,466r
807
12,964
178
3,411
251,443'
1,313
14,600
1,143
1,080
31,095
8,032
890
13,288
6,124
1,452
2,223
11,148
1,105
36,711
1,836'
99,844r
544
15,357'
236
3,422
249,001'
1,193'
13,337'
937
1,341
31,808
8,620'
765'
13,541'
7,161'
1,866
2,184
11,391
2,222
37,236'
1,598
100,247'
622
9,224'
241
3,467'
244,603
1,041
13,350
991
893
29,044
8,048
873
10,798
7,%2
1,912
1,114
9,371
1,887
35,867
1,476
102,364
493
13,555
169
3,395
245,698
1,030
15,185
997
623
26,450
9,098
897
9,554
7,322
1,388
2,540
10,653
2,544
34,945
1,681
102,115
529
13,747
246
4,154
3 Europe
4
Austria
5 Belgium-Luxembourg
6
Denmark
7
Finland
8
9 Germany
10 Greece
Italy
11
17 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
70 Yugoslavia
Other Western Europe"
71
U.S.S.R
77
23
Other Eastern Europe
18,865
20,349
21,563
23,919
24,039
24,685
23,131
21,563
18,646
20,437
75 Latin America and Caribbean
76
Argentina
77
Bahamas
78
Bermuda
79
Brazil
30
British West Indies
31
Chile
3?
Colombia
33 Cuba
34
Ecuador
35 Guatemala
36 Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
47
Venezuela
Other
43
311,028
7,304
99,341
2,884
6,351
138,309
3,212
4,653
10
1,391
1,312
209
15,423
6,310
4,362
1,984
2,284
9,482
6,206
332,997
7,365
107,386
2,822
5,834
147,321
3,145
4,492
11
1,379
1,541
257
16,650
7,357
4,574
1,294
2,520
12,271
6,779
343,705'
7,758
99,727r
3,178
5,942
162,422r
3,284
4,662
2
1,232
1,594
231
19,957r
5,592r
4,695
1,249
2,111
13,181'
6,888r
339,139r
6,978
93,459'
3,520
6,074
164,512r
3,162
4,735
9
1,236
1,613
235
20,33l r
5,732
4,748
1,287
2,471r
12,249
6,788
342,851
6,869
96,141
3,120
6,069
165,769
3,090
4,642
8
1,226
1,585
213
20,958
5,565
4,374
1,305
2,539
12,348
7,030
340,473r
7,190
99,858
3,191
5,998
160,488r
3,348
4,823
4
1,237
1,541
202
19,958r
5,499
4,450
1,234
2,442
12,237
6,773
345,107'
7,452
100,339
3,295
5,811
163,419r
3,388
4,797
12
1,236
1,589
201
20,499'
5,924
4,563
1,240
2,373
12,171
6,798
343,705'
7,758
99,727'
3,178
5,942
162,422'
3,284
4,662
2
1,232
1,594
231
19,957'
5,592'
4,695
1,249
2,111
13,181'
6,888'
348,561
7,901
100,557
3,658
5,785
165,012
3,322
4,627
6
1,250
1,554
234
20,373
6,272
4,348
1,233
2,313
13,530
6,586
347,674
7,883
99,083
3,478
5,760
166,832
3,457
4,714
5
1,219
1,549
227
20,322
6,262
4,403
1,221
2,157
12,401
6,701
44
156,201
136,844
120,504r
122,422r
119,608
120,434r
120,0^
120,504'
119,105
120,449
1,773
19,588
12,416
780
1,281
1,243
81,184
3,215
1,766
2,093
13,370
17,491
2,421
11,246
12,754
1,233
1,238
2,767
67,076
2,287
1,585
1,443
15,829
16,%5
2,619
11,495r
14,374r
2,418
1,463r
2,015
47,053r
2,538
2,449
2,252
15,752r
16,076r
2,247
12,26c
14,206
2,373
1,239r
2,697
48,876r
2,272
1,465
2,650
14,834r
17,303r
2,198
10,100
14,476
2,487
1,078
2,847
48,091
2,131
1,651
3,348
15,309
15,892
2,494
12,443
13,941'
2,504
1,230
2,115
47,068
2,169
1,926
3,113
15,529'
15,902r
2,783
11,675
13,795'
2,613
1,412'
2,108
46,004
2,555
2,139
3,581
16,301'
15,053
2,619
11,495'
14,374'
2,418
1,463'
2,015
47,053'
2,538
2,449
2,252
15,752'
16,076'
2,739
10,951
15,162
2,297
1,037
2,193
45,992
2,442
2,256
2,933
15,901
15,202
2,607
10,616
14,848
2,336
1,2%
2,137
45,107
2,754
2,469
3,224
18,410
14,645
3,824
686
78
206
86
1,121
1,648
4,630
1,425
104
228
53
1,110
1,710
4,822r
l,621 r
79
228
31
1,082
l,781r
4,017
957
91
137
58
992
1,782
4,483
1,125
82
242
37
1,145
1,852
4,558
1,241
78
207
42
1,182
1,808
4,465
1,060
93
173
32
1,280
1,827
4,822'
1,621'
79
228
31
1,082
1,781'
5,042
1,620
86
201
28
1,204
1,903
4,895
1,632
82
199
30
1,190
1,762
64 Other countries
65
Australia
All other
66
4,564
3,867
697
4,444
3,807
637
5,567r
4,464
l,103 r
4,004
3,149
855
4,165
3,231
934
5,463
4,445
1,018
5,282
4,116
1,166
5,567'
4,464
1,103'
4,841
3,619
1,222
4,253
3,065
1,188
67 Nonmonetary international and regional
organizations
68
International
69
Latin American regional
Other regional 16
70
4,894
3,947
684
263
5,918
4,390
1,048
479
8,597'
6,ior
1,181
1,315
6,945
4,371
1,531
1,043
7,160
5,122
1,094
944
7,665r
5,4 l l r
1,242
1,012
8,721'
e.iso 1
1,366
1,175
8,597'
6,101'
1,181
1,315
9,795
7,339
1,422
1,034
10,555
8,232
1,500
823
24 Canada
China
45
46
47
48
49
50
51
5?
53
54
55
56
Israel
Japan
57
58
59
60
61
62
63
Egypt
Morocco
South Africa
Zaire
Oil-exporting countries 14
Other
Taiwan
India
Philippines
Thailand
Middle-East oil-exporting countries 13
Other
11. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23.
12. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
14. Comprises Algeria, Gabon, Libya, and Nigeria.
15. Excludes "holdings of dollars" of the International Monetary Fund.
16. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A59
A60
3.18
International Statistics • June 1992
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1991r
Area and country
1989
1990
1992
1991r
Aug.
Sept.
Oct.
Nov.
Dec.
Jan. r
Feb.?
1 Total
534,492
511,543
513,916
502,982
499,931
511,082
514,637
513,916
508,108
508,357
2 Foreign countries
530,630
506,750
507,724
500,502
497,224
509,301
511,347
507,724
503,913
501,817
119,025
415
6,478
582
1,027
16,146
2,865
788
6,662
1,904
609
376
1,930
1,773
6,141
1,071
65,527
1,329
1,302
1,179
921
113,093
362
5,473
497
1,047
14,468
3,343
727
6,052
1,761
782
292
2,668
2,094
4,202
1,405
65,151
1,142
597
530
499
114,252
327
6,158
686
1,912
15,112
3,339
553
8,242
2,539
669
344
1,844
2,315
4,540
1,063
60,429
824
789
1,970
597
98,921
185
6,534
945
771
13,827
3,112
495
5,931
2,095
599
308
1,995
1,633
3,609
1,407
51,971
820
1,024
1,015
645
103,340
297
7,175
670
908
14,504
2,678
473
6,541
1,949
679
266
2,337
1,896
4,048
1,385
54,243
802
773
1,157
559
103,710
374
7,677
624
1,195
13,085
2,077
487
6,370
2,169
682
301
2,410
1,842
4,195
1,195
55,436
803
714
1,358
716
107,754
325
6,962
671
1,378
14,813
2,839
555
6,362
2,220
776
358
2,480
2,347
4,469
1,151
55,917
848
1,001
1,689
593
114,252
327
6,158
686
1,912
15,112
3,339
553
8,242
2,539
669
344
1,844
2,315
4,540
1,063
60,429
824
789
1,970
597
112,628
211
6,726
792
1,854
15,1%
3,295
550
8,000
2,664
801
360
2,487
2,751
4,497
1,065
56,582
822
1,152
2,331
492
110,7%
447
7,422
709
1,586
13,742
3,405
562
7,292
2,454
665
350
2,120
2,923
3,921
1,078
57,086
810
1,144
2,491
589
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe 2
22
U.S.S.R
23 Other Eastern Europe 3
15,451
16,091
14,995
14,509
14,750
16,099
15,845
14,995
14,761
15,712
75 Latin America and Caribbean
26 Argentina
77
Bahamas
78 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador
35 Guatemala
36 Jamaica
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41
Uruguay
42
Venezuela
43 Other
230,438
9,270
77,921
1,315
23,749
68,749
4,353
2,784
1
1,688
197
297
23,376
1,921
1,740
771
929
9,652
1,726
231,506
6,967
76,525
4,056
17,995
88,565
3,271
2,587
0
1,387
191
238
14,851
7,998
1,471
663
786
2,571
1,384
245,997
5,869
87,142
2,185
11,845
107,864
2,805
2,425
0
1,053
228
158
16,606
1,126
1,563
739
599
2,527
1,263
249,811
5,749
78,804
11,773
12,336
111,240
2,779
2,368
0
1,238
182
150
15,282
1,540
1,477
728
571
2,395
1,199
250,969
5,749
80,643
6,854
11,885
112,790
2,732
2,432
0
1,115
185
150
16,441
3,619
1,478
712
577
2,463
1,144
255,126
5,735
85,959
4,305
11,499
116,429
2,721
2,542
0
1,095
191
162
16,874
1,247
1,546
722
555
2,406
1,138
252,834
5,778
87,160
4,102
11,687
111,999
2,833
2,574
0
1,090
195
161
17,401
1,122
1,641
724
550
2,634
1,183
245,997
5,869
87,142
2,185
11,845
107,864
2,805
2,425
0
1,053
228
158
16,606
1,126
1,563
739
599
2,527
1,263
249,524
5,823
89,225
3,535
12,421
106,945
2,817
2,374
0
1,044
214
157
17,058
1,112
1,651
735
548
2,610
1,255
245,451
5,998
84,110
4,444
12,748
106,444
2,745
2,330
0
1,063
230
158
17,361
898
1,662
737
604
2,611
1,308
44
157,474
138,722
125,246
129,777
120,533
126,978
127,191
125,246
119,644
122,329
634
2,776
11,128
621
651
813
111,300
5,323
1,344
1,140
10,149
11,594
620
1,952
10,648
655
933
71
i
90,699
5,766
1,247
1,573
10,749
13,106
747
2,089
9,723
441
952
855
84,770
6,029
1,910
1,650
8,284
7,796
575
1,522
9,154
435
876
919
90,513
5,404
1,682
1,875
9,335
7,487
621
1,460
9,567
459
869
945
80,532
5,164
1,633
1,939
10,433
6,911
597
1,578
10,204
482
841
994
84,767
5,363
1,916
1,831
9,973
8,432
698
1,584
10,172
450
872
907
85,504
5,797
1,971
1,803
9,957
7,476
747
2,089
9,723
441
952
855
84,770
6,029
1,910
1,650
8,284
7,796
813
1,919
9,859
445
1,012
873
80,492
5,683
1,849
1,574
8,073
7,052
704
1,881
9,711
418
1,043
943
80,190
6,272
1,789
1,542
10,878
6,958
57 Africa
58 Egypt
59 Morocco
60 South Africa
61
Zaire
62 Oil-exporting countries 5
63 Other
5,890
502
559
1,628
16
1,648
1,537
5,445
380
513
1,525
16
1,486
1,525
4,928
294
575
1,235
4
1,298
1,522
5,344
315
576
1,610
9
1,273
1,561
5,281
320
579
1,498
8
1,270
1,606
5,273
302
589
1,495
9
1,260
1,618
5,242
351
583
1,493
7
1,320
1,488
4,928
294
575
1,235
4
1,298
1,522
4,874
255
591
1,217
4
1,116
1,691
4,801
223
550
1,189
4
1,209
1,626
64 Other countries
65 Australia
66 Allother
2,354
1,781
573
1,892
1,413
479
2,306
1,665
641
2,140
1,464
676
2,351
1,526
825
2,115
1,503
612
2,481
1,718
763
2,306
1,665
641
2,482
1,473
1,009
2,728
1,491
1,237
67 Nonmonetary international and regional
organizations6
3,862
4,793
6,192
2,480
2,707
1,781
3,290
6,192
4,195
6,540
24 Canada
45
46
47
48
49
50
51
57
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries 4
Other
1. Reporting banks include all kinds of depository institutions besides commercial banxs, as well as some brokers and dealers.
2. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23.
3. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
Nonbank-Reported
3.19
Data
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1991r
Type of claim
1989
1990
Aug.
2 Banks' own claims on foreigners
3 Foreign public borrowers
4 Own foreign offices2
5 Unaffiliated foreign banks
6
Deposits
Other
7
8 All other foreigners
9 Claims of banks' domestic customers 3 ...
11
Negotiable and Readily transferable
12
Outstanding collections and other
13 MEMO: Customer liability on
14 Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States 3
Sept.
Oct.
Nov.
511,082
35,261
313,021
119,829
72,534
47,295
42,971
514,637
36,323
313,783
120,218
71,610
48,608
44,313
Dec.
579,044
580,013
534,492
60,511
296,011
134,885
78,185
56,700
43,085
511,543
41,900
304,315
117,272
65,253
52,019
48,056
513,916
36,705
318,849
116,534
69,237
47,297
41,828
58,594
13,019
67,501
14,375
66,097
15,240
67,376
19,512
66,097
15,240
30,983
41,333
37,918
35,054
37,918
14,592
11,792
12,939
12,810
12,939
12,899
13,628
6,743
8,739
6,743
45,767r
44,574r
38,815
502,982
35,699
302,086
116,449
70,874
45,575
48,748
41,920
499,931
35,680
304,518
113,872
68,482
45,390
45,861
38,213
Jan. r
Feb."
508,108
34,894
307,850
121,198
71,174
50,024
44,166
508,357
38,681
305,937
118,595
70,646
47,949
45,144
37,285
n.a.
580,013
567,307
593,087
39,822
40,589
513,916
36,705
318,849
116,534
69,237
47,297
41,828
38,815
subsidiaries of head office or parent foreign bank.
3. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
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 July 1979 Bulletin,
p. 550.
1. Data for banks' own claims are given on a monthly basis, but the data for
claims of banks' own domestic customers are available on a quarterly basis only.
Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.
2. For U.S. banks, includes amounts due from own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition" filed
with bank regulatory agencies. For agencies, branches, and majority-owned
subsidiaries of foreign banks, consists principally of amounts due from head office
or parent foreign bank, and foreign branches, agencies, or wholly owned
3.20
1992
1991r
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1991r
1989
Maturity, by borrower and area
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 y e a r
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of more than one year 2
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
June
Sept.
233,184
238,123
206,903
199,216
199,517
195,164
172,634
26,562
146,071
60,550
35,291
25,259
178,346
23,916
154,430
59,776
36,014
23,762
165,985
19,305
146,680
40,918
22,269
18,649
158,660
21,794
136,866
40,555
22,417
18,138
160,346
19,286
141,060
39,171
20,820
18,352
159,829
17,461
142,368
35,335
17,925
17,410
55,909
6,282
57,991
46,224
3,337
2,891
53,913
5,910
53,003
57,755
3,225
4,541
49,184
5,450
49,782
53,258
3,040
5,272
49,840
5,939
42,670
53,993
3,008
3,212
50,368
7,309
41,127
53,150
2,937
5.455
51,207
5,682
47,280
49,462
2,815
3,383
4,666
1,922
47,547
3,613
2,301
501
4,121
2,353
45,816
4,172
2,630
684
3,859
3,290
25,774
5,165
2,374
456
4,128
3,390
24,962
5,414
2,426
237
3,832
3,823
23,220
5,645
2.456
195
3,717
3,676
19,232
6,095
2,393
222
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
1990
2. Remaining time to maturity.
3. Includes nonmonetary international and regional organizations.
A61
A62
3.21
International Statistics • June 1992
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1
Billions of dollars, end of period
1989
Area or country
1 Total
2 G-10 countries and Switzerland
3
Belgium-Luxembourg
4 France
5 Germany
6
Italy
7 Netherlands
8
Sweden
9
Switzerland
10 United Kingdom
11 Canada
12 Japan
198/
382.4
1990
1991
1980
346.3
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
338.8
333.9
321.7
331.5
317.8
325.6r
321.0r
r
Sept.
Dec."
336.8r
341.6r
159.7
10.0
13.7
12.6
7.5
4.1
2.1
5.6
68.8
5.5
29.8
152.7
9.0
10.5
10.3
6.8
2.7
1.8
5.4
66.2
5.0
34.9
152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.2
146.6
6.7
10.4
11.2
5.9
3.1
2.1
6.2
64.0
4.8
32.2
139.3
6.2
10.2
11.2
5.4
2.7
2.3
6.3
59.9
5.1
30.1
143.6
6.5
11.1
11.1
4.4
3.8
2.3
5.6
62.6
5.0
31.3
132.1
5.9
10.4
10.6
5.0
3.0
2.2
4.4
60.8
5.9
23.9
129.9
6.2
9.7
8.8
4.0
3.3
2.0
3.7
62.3
6.8
23.2
130.2
6.1
10.5
8.3
3.6
3.3
2.5
3.3
59.8
8.2
24.6
134.7
5.8
11.1
9.7
4.5
3.0
2.1
3.9
65.6
5.9
23.2
137.5
6.0
11.3
8.2
5.6
4.7
1.9
3.4
68.5
5.8
22.2
13 Other developed 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
26.4
1.9
1.7
1.2
2.0
2.2
.6
8.0
2.0
1.6
2.9
2.4
21.0
1.5
1.1
1.1
1.8
1.8
.4
6.2
1.5
1.3
2.4
1.8
20.7
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
.7
2.0
1.6
23.0
1.5
1.2
1.1
2.6
1.7
.4
8.2
1.3
1.0
2.0
2.1
22.4
1.5
1.1
.9
2.7
1.4
.8
7.8
1.4
1.1
1.9
1.8
23.0
1.6
1.1
.8
2.8
1.6
.6
8.4
1.6
.7
1.9
2.0
22.6
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
.9
1.8
1.8
23.1
1.4
.9
1.0
2.5
1.5
.6
9.0
1.7
.8
1.8
1.9
21.1
1.1
1.2
.8
2.4
1.5
.6
7.0
1.9
.9
1.8
2.0
21.7
1.0
.9
.7
2.3
1.4
.5
8.3
1.6
1.0
1.6
2.4
22.6
.6
.9
.7
2.6
1.4
.6
8.2
1.4
1.6
1.9
2.7
25 OPEC countries 2
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
17.4
1.9
8.1
1.9
3.6
1.9
16.6
1.7
7.9
1.7
3.4
1.9
17.1
1.3
7.0
2.0
5.0
1.7
15.5
1.2
6.1
2.1
4.3
1.8
15.3
1.1
6.0
2.0
4.4
1.8
14.2
1.1
6.0
2.3
3.1
1.7
12.8
1.0
5.0
2.7
2.5
1.7
17.1
.9
5.1
2.8
6.6
1.6
14.0
.9
5.3
2.6
3.7
1.5
15.6
.8
5.6
2.8
5.0
1.5
14.6
.7
5.4
2.8
4.2
1.5
31 Non-OPEC developing countries
97.8
85.3
77.5
68.8
66.7
67.1
65.4
66.4r
65.
65.2
64.3
9.5
24.7
6.9
2.0
23.5
1.1
2.8
9.0
22.4
5.6
2.1
18.8
.8
2.6
6.3
19.0
4.6
1.8
17.7
.6
2.8
5.6
17.5
4.3
1.8
12.8
.5
2.8
5.2
16.7
3.7
1.7
12.6
.5
2.3
5.0
15.4
3.6
1.8
12.8
.5
2.4
5.0
14.4
3.5
1.8
13.0
.5
2.3
4.7
13.9
3.6
1.7
13.7
.5
2.2
4.6
11.6
3.6
1.6
14.3
.5
2.0
4.7
10.5
3.7
1.6
16.2r
.4
1.9
4.8
9.5
3.6
1.7
15.5
.4
2.1
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia3
.3
8.2
1.9
1.0
5.0
1.5
5.2
.7
.7
.3
3.7
2.1
1.2
6.1
1.6
4.5
1.1
.9
.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0
.3
3.8
3.5
.6
5.3
1.8
3.7
1.1
1.2
.2
3.6
3.6
.7
5.6
1.8
3.9
1.3
1.1
.2
4.0
3.6
.6
6.2
1.8
3.9
1.5
1.6
.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7
.4
3.6
3.5
.5
6.8
2.0
3.7
1.6
2.1
.6
4.1
3.0
.5
6.9
2.1
3.7
1.7
2.3
.4
4.1
2.8
.5
6.5
2.3
3.6
1.9
2.3
.3
4.1
3.0
.5
6.8
2.3
3.7
1.7
2.4
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 3
.6
.9
.0
1.3
.4
.9
.0
1.1
.4
.9
.0
1.0
.4
.9
.0
.9
.5
.9
.0
.8
.4
.9
.0
.8
.4
.8
.0
1.0
.4
.8
.0
.8
.4
.7
.0
.8
.4
.7
.0
.8
.4
.7
.0
.7
52 Eastern Europe
53 U.S.S.R
54 Yugoslavia
55 Other
3.2
.3
1.8
1.1
3.6
.7
1.8
1.1
3.5
.7
1.6
1.3
3.3
.8
1.4
1.2
2.9
.4
1.4
1.1
2.7
.4
1.3
1.1
2.3
.2
1.2
.9
2.1
.3
1.0
.8
2.1
.4
1.0
.7
1.8
.4
.8
.7
2.4
.9
.9
.7
56 Offshore banking centers
57
Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60
Netherlands Antilles
61 Panama 4
62 Lebanon
63 Hong Kong
64 Singapore
65 Others 5
54.5
17.3
.6
13.5
1.2
3.7
J
1L2
7.0
.0
44.2
11.0
.9
12.9
1.0
2.5j
43.1
9.2
1.2
10.9
2.6
1.3j
40.3
8.5
2.5
8.5
2.3
1.4
52.7r
6.8r
7.1
14. r
3.5
1.3
52.0
12.0
2.2
15.9
1.2
1.3
8.0
.0
io!o
7.0
.0
42.5
2.8
4.4
11.5
7.9
1.4
.1
I
7.7
6.6
.0
48.5r
6.8r
4.2
15.1
1.4
1.3|
9I8
42.6
8.9
4.5
9.3
2.2
1.5
.1
8.7
7.5
.0
50.2r
8.4r
4.4
14.2
1.1
1.4
9^6
6.1
.0
36.6
5.5
1.7
9.0
2.3
1.4
J
9.7
7.0
.0
11.6
8.9
.0
12^4
7.2
.0
12! 1
7.7
.0
12^2
7.1
.0
66 Miscellaneous and unallocated6
23.2
22.6
30.3
33.3
34.5
38.1
39.8
36.5
40.0r
44.7r
48. r
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
Since June 1984, reported claims held by foreign branches have been reduced
by an increase in the reporting threshold for "shell" branches from $50 million to
$150 million equivalent in total assets, the threshold now applicable to all
reporting branches.
2. This group comprises the Organization of Petroleum Exporting Countries
shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and
Oman (not formally members of OPEC).
3. Excludes Liberia.
4. Includes Canal Zone beginning December 1979.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
3.22
Data
A63
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States 1
Millions of dollars, end of period
1991
1990
Type and area or country
32,952
1
7 Payable in dollars
3 Payable in foreign currencies
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities
10 Payable in dollars
11 Payable in foreign currencies
By area or country
Financial liabilities
17
13
14
15
16
17
18
1988
Belgium-Luxembourg
Germany
Netherlands
Switzerland
United Kingdom
27,335
5,617
1989r
38,764
33,973
4,791
1990
June
43,417r
40,982r
39,794r
40,653r
40,036
r
38,535
4,882r
36,415r
r
r
4,566
35,317
4,477r
36,174rr
4,479
35,277
4,759
17,903
14,365
3,538
Dec.
45,614r
38,535
4,882
40,034
5,580r
r
43,417
Dec. p
Mar.
Sept.
Sept.
14,507
10,608
3,900
17,879
14,035
3,844
18,467
14,737
3,730
20,347
16,059
4,288r
18,467r
r
14,737
3,730r
17,557r
14,188r
3,369r
17,280r
13,928r
3,352r
18,175r
14,686rr
3,489
18,445
6,505
11,940
16,727
1,717
20,885
8,070
12,815
19,938
947
24,949
10,494
14,456
23,798
1,152
25,267
10,960
14,306
23,974
1,292
24,949
10,494
14,456
23,798
1,152
23,424r
8,842r
14,583r
22,227r
1,197
22,515r
8,699r
13,815r
21,390"
1,125r
22,m1 r
9,039
13,439
21,488r
990r
22,133
9,018
13,115
20,912
1,221
9,962
289
359
699
880
1,033
6,533
11,660
340
258
464
941
541
8,818
9,866
344
700
622
990
576
6,024
11,29?
350
463
606
942
628
7,679r
9,866r
344
700r
622
990
576
6,024r
9,219r
285
632r
561
945
577
5,579r
9,318r
297
556r
659"
917
535
5,731r
9,835r
347
416
654
943
510
6,397r
9,153
362
297
659
932
361
5,912
19
Canada
388
610
229
309
229r
278r
293r
305
268
70
71
72
73
74
75
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
839
184
0
0
645
1
0
1,357
157
17
0
724
6
0
3,400
371
0
0
2,407
5
4
3,560
395
0
0
2,548
4
0
3,400
371
0
0
2,407
5
4
3,636
392
0
0
2,674
6
4
3,308
375
12
0
2,319
6
4
3,472
314
0
1
2,555
6
4
3,814
512
0
1
2,697
8
4
3,312
2,563
3
4,151
3,299
2
4,562
3,360
5
4,697r
3,562r
4
4,562r
3,360r
5
4,420r
3,347r
1
4,350"
3,297r
4
4,559r
3,530*
19
4,610
3,533
13
77
78
29
Venezuela
Middle East oil-exporting countries
30
31
Africa
Oil-exporting countries 3
2
0
2
0
2
0
2
0
2
0
2
0
9
7
32
Allother 4
4
100
409
479
409
2
2
Commercial liabilities
33 Europe
34
Belgium-Luxembourg
35
Germany
36
37
Netherlands
38
Switzerland
United Kingdom
39
r
3
2
r
6
4
1
52
r
8,726
247
880
943
704
471
3,168
7,319
158
455
1,699
587
417
2,079
9,071
175
877
1,392
710
693
2,620
10,310
275
1,218
1,270
844
775
2,792
10,039
245
1,270
1,051
699
746
2,839
10,310
275
1,218
1,270
844
775
2,792
9,826
263
l,214r
1,389
730r
661
2,813r
8,835
254
1,246
1,044
745r
586
2,328r
8,976
229
999
914r
750
490
3,071r
40
Canada
1,217
1,124
1,251
1,263
1,251
1,231
1,186
1,018
992
41
47
43
44
45
46
47
Latin America and Caribbean
1,090
49
286
95
34
217
114
1,224
41
308
100
27
323
164
1,671
12
538
145
30
475
130
1,690
18
371
129
42
592
165
1,671
12
538
145
30
475
130
1,621
14
495
218
36
346
126
l,646r
6
505
180
50
364
121
1,512
14
450
209
46
290
101
1,351
3
310
217
107
302
93
6,915
3,094
1,385
7,550
2,914
1,632
9,471
3,639
2,016
9,533
3,356
2,728
9,471
3,639
2,016
8,623r
3,412r
l,568r
8,818r
3,394r
1,699
8,869
3,317
1,808
9,233
3,610
1,500
576
202
886
339
841
422
1,334
610
841
422
655
225
594
224
835
356
761
357
1,328
1,030
1,406
1,408
1,406
l,468r
1,436
1,268
1,070
Bermuda
Brazil
British West Indies
48
49
50
Japan
Middle East oil-exporting countries 2,5
51
52
Oil-exporting countries
53
All other 4
1. For a description of the changes in the International Statistics tables, see
July 1979 Bulletin, 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.
Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A64
International Statistics • June 1992
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
United States 1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1991r
1990
Type, and area or country
1988
1989r
1990
Sept.
Dec.
Mar.
June
Sept.
Dec. p
1 Total
33,805
33,173
35,008
3i,387 r
35,008
35,213
36,837
37,898
42,101
2 Payable in dollars
3 Payable in foreign currencies
31,425
2,381
30,773
2,400
32,499
2,509
29,902r
2,485r
32,499
2,509
32,945
2,268
34,779
2,058
35,585
2,313
39,710
2,391
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
21,640
15,643
14,544
1,099
5,997
5,220
777
19,297
12,353
11,364
989
6,944
6,190
754
19,609
13,495
12,400
1,095
6,114
5,247
866
17,865r
ll,916 r
10,640"^
l,276r
5,949
5,2%
652
19,609
13,495
12,400
1,095
6,114
5,247
866
19,498
12,907
11,901
1,006
6,590
5,894
6%
20,741
12,417
11,644
773
8,325
7,637
688
22,221
16,055
15,070
985
6,166
5,493
673
24,203
16,801
15,994
807
7,402
6,629
773
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
14 Payable in dollars
15 Payable in foreign currencies
12,166
11,091
1,075
11,660
505
13,876
12,253
1,624
13,219
657
15,400
13,521
1,878
14,852
548
14,522rr
12,744
1,778
13,966r
556
15,400
13,521
1,878
14,852
548
15,715
13,649
2,066
15,150
565
16,095
13,912
2,183
15,498
597
15,677
13,235
2,442
15,022
655
17,898
15,145
2,753
17,087
811
10,278
18
203
120
348
217
9,039
8,463
28
153
152
238
153
7,4%
9,505
76
358
367
265
357
7,838
9,013r
27
145
142r
264r
228r
7,980r
9,505
76
358
367
265
357
7,838
10,588
85
193
312
380
422
8,981
11,821
74
255
298
429
433
10,184
13,029
76
245
434
420
580
10,905
13,281
13
252
337
386
589
11,075
16
17
18
19
20
21
22
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
2,325
1,904
2,904
2,006r
2,904
1,850
1,986
2,084
2,509
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
8,160
1,846
19
47
5,763
151
21
8,020
1,890
7
224
5,486
94
20
6,0%
1,594
3
68
4,026
177
25
6,107
1,443
4
70
4,191
158
23
6,0%
1,594
3
68
4,026
177
25
6,161
1,847
6
68
3,810
179
28
5,849
1,031
4
127
4,307
161
29
6,118
1,3%
19
124
4,209
173
32
7,422
1,717
8
115
5,188
210
40
31
32
33
Asia
Japan
Middle East oil-exporting countries
623
354
5
590
213
8
860
523
8
531
207
9
860
523
8
568
246
11
747
398
4
637
279
3
624
343
5
34
35
Africa
Oil-exporting countries
106
10
140
12
37
0
49
7
37
0
62
3
64
1
61
1
57
1
All other 4
148
180
206
158
206
268
275
292
310
5,181
189
672
669
212
344
1,324
6,209
242
964
6%
479
313
1,575
7,038
212
1,240
806
555
301
1,774
6,497r
188
1,206
642r
491
300
1,673
7,038
212
1,240
806
555
301
1,774
7,041
226
1,273
870
604
324
1,636
7,434
220
1,388
953
707
2%
1,813
6,863
186
1,328
852
641
259
1,803
8,389
192
1,537
928
637
287
2,058
983
1,091
1,073
l,152r
36
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1,073
1,211
1,240
1,231
1,591
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,241
36
230
299
22
461
227
2,184
58
323
297
36
508
147
2,371
14
246
324
40
661
192
2,408r
25
340r
252
35
652r
224
2,371
14
246
324
40
661
192
2,314
15
231
309
49
653
181
2,418
16
245
297
43
711
195
2,489
8
255
384
37
740
1%
2,577
11
263
388
41
827
201
52
53
54
Asia
Japan
Middle East oil-exporting countries 2
2,993
946
453
3,570
1,199
518
4,064
1,399
460
3,659r
1,223r
408r
4,064
1,399
460
4,282
1,756
497
4,123
1,582
500
4,209
1,742
495
4,461
1,786
639
55
56
Africa
Oil-exporting countries 3
435
122
429
108
488
67
372r
72
488
67
394
68
428
63
431
80
417
95
57
All other 4
333
393
366
434r
366
473
452
454
463
1. For a description of the changes in the International Statistics tables, see
July 1979 Bulletin, 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
3.24
A65
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
Transaction and area or country
1990
1992
1991
1992
1991
Jan.Feb.
Aug.
Sept.
Oct. r
Nov/
Dec. r
Jan. r
Feb. p
20,587
19,594
14,729
17,446
23,305
25,904
21,317
21,094
U.S. corporate securities
STOCKS
173,293
188,419
1 Foreign purchases
2 Foreign sales
210,782
199,598
44,622
46,998
17,934
16,192
12,919
13,659
17,201
16,791
3 Net purchases, or sales ( - )
-15,126
11,183
-2,376
1,742
-740
410
993
-2,717
-2,599
223
4 Foreign countries
-15,197
10,615
-2,256
1,606
-850
365
956
-2,700
-2,480
224
-8,479
-1,234
-367
-397
-2,866
-2,980
886
-1,330
-2,435
-3,477
-2,891
-63
-298
182
18
-63
-228
-139
-222
3,809
2,177
-126
4,263
1,181
153
158
-1,423
-252
-129
-70
17
-1,186
482
1,384
-171
-2,607
-2,809
28
51
753
39
21
-209
96
831
439
315
67
-33
-96
4
61
-567
-95
62
38
-48
-501
16
25
-402
210
135
-7
-125
-452
-21
12
6
-93
-216
385
366
-6
267
156
20
-215
-238
-50
22
-42
-508
254
694
-197
39
735
158
14
-91
-1,883
-125
44
-52
-7
-1,637
131
-280
-35
-665
-429
7
25
-1,318
-28
-159
44
-287
-882
260
1,025
-272
-2,211
-2,194
13
23
-105
-224
30
-114
304
-304
222
359
101
-396
-615
15
28
71
568
-120
136
110
45
37
-17
-119
-1
118,764
102,047
152,815
125,146r
34,187
28,689
14,989
10,817*
14,492
12,315
12,844
10,709
16,035
13,051
15,092
12,348
16,334
14,177
17,853
14,512
5
6
7
8
9
10
11
France
Germany
Netherlands
Switzerland
United Kingdom
Latin America and Caribbean
13 Middle East 1
14 Other Asia
15 Japan
16
17 Other countries
1?
18 Nonmonetary international and
regional organizations
BONDS2
19 Foreign purchases
20 Foreign sales
21 Net purchases, or sales ( - )
16,717
27,669*
5,498
4,172*
2,177
2,135
2,984
2,744
2,157
3,341
22 Foreign countries
17,187
27,800*
5,458
4,269*
2,216
2,198
2,883
2,701
2,124
3,334
73
74
75
76
77
78
79
30
31
37
33
34
35
10,079
373
-377
172
284
10,383
1,906
4,291
76
1,083
727
96
-344
13,651*
854
1,577
482
572
9,239*
1,340
2,446r
2,185
8,237
5,730
56
-115*
3,820
56
871
-104
189
2,745
-56
1,273
-146
453
136
43
71
1,722*
-26
106
47
116
1,400*
-40
172
449
2,015
1,818
4
-53
-111
93
156
-18
-52
384
-155
130
350
2,027
1,149
-2
-23
1,722
-25
213
44
-64
1,878
86
-365
182
526
237
12
35
1,284
110
274
91
-449
714
51
110
313
1,164
874
13
-52
1,084
75
113
13
73
184
114
624
253
543
149
11
72
1,404
-2
594
-113
-67
919
-153
505
-75
352
257
28
63
2,416
58
277
9
256
1,826
97
768
-71
101
-121
15
8
-471
-131
-97
-39
-63
101
43
33
7
France
Germany
Netherlands
Switzerland
United Kingdom
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
36 Nonmonetary international and
regional organizations
40
Foreign securities
37 Stocks, net purchases, or sales ( - ) 3
38 Foreign purchases
39 Foreign sales
40 Bonds, net purchases, or sales ( - )
41
Foreign purchases
42 Foreign sales
-9,205
122,641
131,846
-22,412
314,645
337,057
-31.446*
119,853*
151,299*
-15,842*
324,809*
340,652*
-4,844
22,953
27,797
-1,102
67,795
68,897
-3,527*
9,620*
13,147*
-2,167*
22,197*
24,364*
-2,163*
9,940*
12,103*
-1,064*
23,546*
24,610*
-2,381
11,310
13,691
-4,721
33,240
37,961
-2,016
13,155
15,171
779
29,938
29,159
-1,716
11,015
12,731
-1,839
26,296
28,135
-2,574
12,433
15,007
-1,365
35,494
36,859
-2,270
10,520
12,790
263
32,301
32,038
43 Net purchases, or sales ( - ) , of stocks and bonds
-31,617
-47,288*
-5,946
-5,694*
-3,227*
-7,102
-1,237
-3,555
-3,939
-2,007
44 Foreign countries
-28,943
-47,054*
-6,362
-5,799*
-3,407*
-6,766
-1,680
-3,925
-4,190
-2,172
45
46
47 Latin America and Caribbean
48
49
50 Other countries
-8,443
-7,502
-8,854
-3,828
-137
-180
-34,377*
-7,636
837*
-7,113*
-8
1,243*
-6,854
249
-119
694
-15
-317
-4,773*
-1,009
108
-306*
-7
188
-2,594*
-352
454
-1,155*
2
238
-5,700
-1,619
546
-198
1
204
-4,898
675
991
1,505
-41
88
-4,326
8
-478
316
159
396
-4,593
-910
-819
2,183
-5
-46
-2,261
1,159
700
-1,489
-10
-271
51 Nonmonetary international and
regional organizations
-2,673
-234*
416
-336
443
370
251
165
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
105
180
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
3. As a result of the merger of a U.S. and U.K. company in July 1989, the
former stockholders of the U.S. company received $5,453 million in shares of the
new combined U.K. company. This transaction is not reflected in the data.
A66
3.25
International Statistics • June 1992
MARKETABLE U.S. TREASURY BONDS A N D NOTES
Foreign Transactions
Millions of dollars
1991
1992
Country or area
1990
1992
1991
Jan.Feb.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan. r
Feb."
Transactions, net purchases or sales ( - ) during period1
1 Estimated total2
18,927
22,342R
12,888
1,356
-3,862
414
5,446
4,483R
10,623
2 Foreign countries 2
18,764
22,161r
13,490
722
-2,804
-171
5,352
3,774r
9,866
3,624
18,455
9,507r
10
523
5,880 -4,725
1,077 -3,735
1,152
-662
112
1,005
-1,260
5,647r
11,463 ll,440 r
13
13
-4,627 -2,746
12,644
855
1,087
-2,903
480
-246
8,883
4,448
40
-588
1,554
71
-360
-372
-239
292
388
1,774
0
-118
464
-190
195
-426
3
-184
-32
1,090
8
78
228
1
326
549
46
195
-311
-578
0
-838
5,023
201
707
-25
-74
1,105
212
2,910
-13
-441
2,779r
-21
-139
-888
582
-778
2,349"
l,664r
10
-1,841
5,324
559
805
-1,936
180
142
2,649
2,925
0
964
7,320
296
282
-967
300
-388
6,234
1,523
40
-1,552
3 Europe 2
4 Belgium-Luxembourg
5 Germany
6 Netherlands
7
Sweden . . .
Switzerland2
8
United Kingdom
9
10 Other Western Europe
11 Eastern Europe
12 Canada
13
14
15
16
17
18
19
20
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22 International
23 Latin American regional
14,734
33
3,943
10,757
-10,952
-14,785
313
842
11,539
10
5,316
6,213
3,471r
-4,034 r
689
-299
-4,111
435
-801
-3,745
7,245
-2,331
307
-2,007
1,436
-20
-2,010
3,466
-2,115
-364
27
-62
-1,076
-2
-1,883
809
-2,067
-3,625
10
-213
-2,086
20
-14
-2,092
3,467
4,111
39
-981
-3,842
7
-525
-3,324
3,709
503
-26
929
1,075
122
-1,065
2,018
864r
-l,332 r
318
579
-2,920
266
-357
-2,829
7,675
-398
207
-1,384
-1,191
169
-444
-916
-430
-1,933
100
-623
163
287
-2
181r
-355 r
-72
-602
-1,007
-7
634
654
-146
-1,058
-1,211
152
585
287
72
94
95
-133
709
786
-156
757
197
-58
-1,359
-1,204
51
18,764
23,218
-4,453
22,161r
5,200r
16,961r
13,490
8,247
5,243
722
-458 r
1,180"
-2,804
830
-3,634
-171
512
-683
5,352
7,194
-1,842
3,774r
2,521r
l,253r
9,866
8,361
1,505
3,624
-114
3,738
-387
0
-6,822
239
2,302
48
-795
0
313
0
96
0
-163
219
623
48
1,679
0
MEMO
24 Foreign countries
25 Official institutions
26 Other foreign2
Oil-exporting countries
27 Middle East^
28 Africa 4
1. Estimated 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. Includes U.S. Treasury notes, denominated in foreign currencies, publicly
issued to private foreign residents.
2,265
-3,731
0
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
Interest and Exchange Rates
3.26
A67
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per year
Country
Country
Percent
Austria..
Belgium .
Canada..
Denmark
France . .
8.0
8.5
6.85
9.5
9.6
Month
effective
Dec.
Dec.
Apr.
Dec.
Dec.
1991
1991
1992
1991
1991
Percent
Germany, Fed. Rep. of.
Italy
Japan
Netherlands
1. Since Feb. 1981, the rate has been that at which the Bank of France
discounts Treasury bills for seven to ten days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
3.27
Rate on Apr. 30, 1992
Rate on Apr. 30, 1992
Rate on Apr. 30, 1992
Country
8.0
12.0
3.75
8.5
Month
effective
Dec.
Nov.
Apr.
Dec.
1991
1991
1992
1991
Norway
Switzerland
i
United Kingdom2
Percent
Month
effective
10.50
7.0
July 1990
Aug. 1991
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 the
central bank transacts the largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
Averages of daily figures, percent per year
1992
1991
Type or country
1
7
3
4
5
6
7
8 Italy
9
10
1989
1990
1991
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
9.16
13.87
12.20
7.04
6.83
8.16
14.73
13.00
8.41
8.71
5.86
11.47
9.07
9.15
8.01
5.34
10.38
8.29
9.28
8.09
4.96
10.44
7.75
9.33
7.89
4.48
10.73
7.50
9.48
7.99
4.06
10.60
7.23
9.45
7.55
4.05
10.33
7.42
9.51
7.28
4.26
10.58
7.63
9.59
8.16
4.05
10.56
7.10
9.63
8.48
7.28
9.27
12.44
8.65
5.39
8.57
10.20
12.11
9.70
7.75
9.19
9.49
12.04
9.30
7.33
9.27
9.20
11.44
9.22
6.41
9.32
9.41
11.66
9.39
6.22
9.59
9.97
12.46
9.61
6.02
9.45
9.86
12.00
9.41
5.18
9.52
9.93
12.17
9.50
5.19
9.52
9.99
12.25
9.56
4.95
9.42
9.92
12.38
9.50
4.72
NOTE. Rates are for three-month interbank loans, with the following exceptions: Canada, finance company paper; Belgium, three-month Treasury bills; and
Japan, CD rate.
Oct.
A68
3.28
International Statistics • June 1992
FOREIGN EXCHANGE RATES 1
Currency units per dollar
1991
Country/currency
1989
1990
1992
1991
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
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
79.186
13.236
39.409
1.1842
3.7673
7.3210
4.2963
6.3802
1.8808
162.60
78.069
11.331
33.424
1.1668
4.7921
6.1899
3.8300
5.4467
1.6166
158.59
77.872
11.686
34.195
1.1460
5.3337
6.4038
4.0521
5.6468
1.6610
182.63
78.660
11.408
33.391
1.1302
5.3994
6.2947
4.1953
5.5391
1.6208
183.68
77.122
11.003
32.198
1.1467
5.4232
6.0831
4.2447
5.3406
1.5630
179.52
74.756
11.108
32.501
1.1571
5.4618
6.1257
4.2971
5.3858
1.5788
182.42
75.178
11.391
33.307
1.1825
5.4776
6.2763
4.4230
5.5088
1.6186
187.13
75.865
11.693
34.189
1.1928
5.4871
6.4462
4.5325
5.6400
1.6616
192.26
76.241
11.620
33.927
1.1874
5.5098
6.3906
4.5023
5.5773
1.6493
192.83
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
7.8008
16.213
141.80
1,372.28
138.07
2.7079
2.1219
59.561
6.9131
157.53
7.7899
17.492
165.76
1,198.27
145.00
2.7057
1.8215
59.619
6.2541
142.70
7.7712
22.712
158.26
1,241.28
134.59
2.7503
1.8720
57.832
6.4912
144.77
7.7591
25.802
164.75
1,221.04
129.63
2.7412
1.8269
56.352
6.3643
141.43
7.7738
25.818
170.46
1,182.21
128.04
2.7417
1.7618
55.256
6.1558
138.90
7.7612
25.863
168.73
1,189.76
125.46
2.6891
1.7780
54.194
6.2044
136.92
7.7582
25.992
164.87
1,215.92
127.70
2.6012
1.8218
54.177
6.3472
139.47
7.7463
28.378
160.50
1,248.28
132.86
2.5779
1.8706
54.790
6.5188
143.26
7.7404
28.896
161.65
1,241.55
133.54
2.5521
1.8568
54.138
6.4606
141.09
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/pound z
1.9511
2.6214
674.29
118.44
35.947
6.4559
1.6369
26.407
25.725
163.82
1.8134
2.5885
710.64
101.96
40.078
5.9231
1.3901
26.918
25.609
178.41
1.7283
2.7633
736.73
104.01
41.200
6.0521
1.4356
26.759
25.528
176.74
1.6709
2.7916
757.44
102.56
42.374
5.9246
1.4348
25.975
25.497
177.96
1.6453
2.7665
761.68
99.70
42.523
5.7158
1.3855
25.759
25.431
182.72
1.6337
2.7831
767.09
100.05
42.665
5.7461
1.4039
25.150
25.328
180.90
1.6361
2.8156
769.93
101.73
42.879
5.8764
1.4561
25.049
25.463
177.78
1.6601
2.8830
775.68
104.88
42.744
6.0263
1.5094
25.407
25.637
172.38
1.6567
2.8783
782.55
103.90
43.231
5.9667
1.5194
25.308
25.644
175.66
98.60
89.09
89.84
87.98
85.65
86.09
88.04
90.44
MEMO
31 United States/dollar
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
89.84
currencies of ten industrial countries. The weight for each of the ten countries is
the 1972-76 average world trade of that country divided by the average world
trade of all ten countries combined. Series revised as of August 1978 (see Federal
Reserve Bulletin, vol. 64 (August 1978), p. 700).
A69
Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—-List
Published Semiannually, with Latest
BULLETIN
Reference
Anticipated schedule of release dates for periodic releases
SPECIAL TABLES—Quarterly
Data Published Irregularly, with Latest
BULLETIN
Issue
June 1992
Page
A78
Issue
Page
Reference
Title and Date
Assets and liabilities of commercial banks
March 31, 1991
June 30, 1991
September 30, 1991
December 31, 1991
August
November
February
May
1991
1991
1992
1992
A72
A70
A70
A70
Terms of lending at commercial banks
February 1991
May 1991
August 1991
November 1991
August
October
December
March
1991
1991
1991
1992
A78
A72
A70
A70
Assets and liabilities of U.S. branches and agencies of foreign banks
March 31, 1991
June 30, 1991
September 30, 1991
December 31, 1991
November
December
February
May
1991
1991
1992
1992
A76
A74
A80
A76
Pro forma balance sheet and income statements for priced service
June 30, 1990
March 31, 1991
June 30, 1991
September 30, 1991
October
August
November
January
1990
1991
1991
1992
A72
A82
A80
A70
December 1991
May 1992
A79
A81
Assets and liabilities of life insurance companies
June 30, 1991
September 30, 1991
operations
A70
Index to Statistical Tables
References are to pages A3-A68 although the prefix 'A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 20, 21
Assets and liabilities (See also Foreigners)
Banks, by classes, 19-21
Domestic finance companies, 34
Federal Reserve Banks, 11
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 22
Automobiles
Consumer installment credit, 37, 38
Production, 47, 48
BANKERS acceptances, 10, 23, 24
Bankers balances, 19-21. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 33
Rates, 24
Branch banks, 22, 55
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 33
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 19
Federal Reserve Banks, 11
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 17, 2 0
Weekly reporting banks, 20-22
Commercial banks
Assets and liabilities, 19-21
Commercial and industrial loans, 17, 19, 20, 21, 22
Consumer loans held, by type and terms, 37, 38
Loans sold outright, 20
Nondeposit funds, 18
Real estate mortgages held, by holder and property, 36
Time and savings deposits, 4
Commercial paper, 23, 24, 34
Condition statements (See Assets and liabilities)
Construction, 44, 49
Consumer installment credit, 37, 38
Consumer prices, 44, 46
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 33
Profits and their distribution, 33
Security issues, 32, 65
Cost of living (See Consumer prices)
Credit unions, 37
Currency and coin, 19
Currency in circulation, 5, 14
Customer credit, stock market, 25
DEBITS to deposit accounts, 16
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 19-22
Ownership by individuals, partnerships, and corporations, 22
Turnover, 16
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5, 6, 13
Deposits (See also specific types)
Banks, by classes, 4, 19-21, 22
Federal Reserve Banks, 5,11
Turnover, 16
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, 33
EMPLOYMENT, 45
Eurodollars, 24
FARM mortgage loans, 36
Federal agency obligations, 5, 10, 11, 12, 29, 30
Federal credit agencies, 31
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 28
Receipts and outlays, 26, 27
Treasury financing of surplus, or deficit, 26
Treasury operating balance, 26
Federal Financing Bank, 26, 31
Federal funds, 7, 18, 20, 21, 22, 24, 26
Federal Home Loan Banks, 31
Federal Home Loan Mortgage Corporation, 31, 35, 36
Federal Housing Administration, 31, 35, 36
Federal Land Banks, 36
Federal National Mortgage Association, 31, 35, 36
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 5, 11, 12, 28
Federal Reserve credit, 5, 6, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 31
Finance companies
Assets and liabilities, 34
Business credit, 34
Loans, 37, 38
Paper, 23, 24
Financial institutions
Loans to, 20, 21, 22
Selected assets and liabilities, 26
Float, 51
Flow of funds, 39,41,42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 22
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 11, 20, 21
Foreign exchange rates, 68
Foreign trade, 54
A71
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 21, 54, 55, 57, 58, 63, 65, 66
GOLD
Certificate account, 11
Stock, 5, 54
Government National Mortgage Association, 31, 35, 36
Gross domestic product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51,52
Industrial production, 44, 47
Installment loans, 37, 38
Insurance companies, 28, 36, 81
Interest rates
Bonds, 24
Consumer installment credit, 38
Federal Reserve Banks, 8
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 35
Prime rate, 23
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 33
Investments (See also specific types)
Banks, by classes, 19, 20, 21, 22, 26
Commercial banks, 4, 17, 19-21
Federal Reserve Banks, 11, 12
Financial institutions, 36
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 19-21
Commercial banks, 4, 17, 19-21
Federal Reserve Banks, 5, 6, 8, 11, 12
Financial institutions, 26, 36
Insured or guaranteed by United States, 35, 36
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 25
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, 24
Money stock measures and components, 4, 14
Mortgages (See Real estate loans)
Mutual funds, 33
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 27
National income, 51
OPEN market transactions, 10
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, 23
Producer prices, 44,50
Production, 44, 47
Profits, corporate, 33
REAL estate loans
Banks, by classes, 17, 20, 21, 36
Financial institutions, 26
Terms, yields, and activity, 35
Type of holder and property mortgaged, 36
Repurchase agreements, 7, 18, 20, 21, 22
Reserve requirements, 9
Reserves
Commercial banks, 19
Depository institutions, 4, 5, 6, 13
Federal Reserve Banks, 11
U.S. reserve assets, 54
Residential mortgage loans, 35
Retail credit and retail sales, 37, 38, 44
SAVING
Flow of funds, 39,41,42, 43
National income accounts, 51
Savings and loan associations, 36, 37, 39. (See also SAIF-insured
institutions)
Savings Association Insurance Funds (SAIF) insured institutions, 26
Savings banks, 26, 36, 37
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 31
Foreign transactions, 65
New issues, 32
Prices, 25
Special drawing rights, 5, 11, 53, 54
State and local governments
Deposits, 20, 21
Holdings of U.S. government securities, 28
New security issues, 32
Ownership of securities issued by, 20, 21
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 32
Prices, 25
Student Loan Marketing Association, 31
TAX receipts, federal, 27
Thrift institutions, 4. (See also Credit unions and Savings and
loan associations)
Time and savings deposits, 4, 14, 18, 19, 20, 21, 22
Trade, foreign, 54
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 11, 26
Treasury operating balance, 26
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 19, 20, 21
Treasury deposits at Reserve Banks, 5, 11, 26
U.S. government securities
Bank holdings, 19-21, 22, 28
Dealer transactions, positions, and financing, 30
Federal Reserve Bank holdings, 5, 11, 12, 28
Foreign and international holdings and
transactions, 11, 28, 66
Open market transactions, 10
Outstanding, by type and holder, 26, 28
Rates, 23
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 35, 36
WEEKLY reporting banks, 20-22
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)
A72
Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN, Chairman
DAVID W. MULLINS, JR., Vice
OFFICE OF BOARD
WAYNE D . ANGELL
EDWARD W. KELLEY, JR.
Chairman
DIVISION
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, Special Assistant to the Board
WINTHROP P. HAMBLEY, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
LEGAL
OF INTERNATIONAL
FINANCE
EDWIN M . TRUMAN, Staff
Director
LARRY J. PROMISEL, Senior Associate
Director
CHARLES J. SIEGMAN, Senior Associate
Director
DALE W. HENDERSON, Associate
Director
DAVID H. HOWARD, Senior
Adviser
DONALD B. ADAMS, Assistant
Director
PETER HOOPER III, Assistant
Director
KAREN H. JOHNSON, Assistant
Director
RALPH W. SMITH, JR., Assistant
Director
DIVISION
J. VIRGIL MATTINGLY, JR., General
Counsel
SCOTT G. ALVAREZ, Associate General
Counsel
RICHARD M. ASHTON, Associate General
Counsel
OLIVER IRELAND, Associate General
Counsel
KATHLEEN M. O'DAY, Associate General
Counsel
MARYELLEN A. BROWN, Assistant to the General
Counsel
OFFICE OF THE
SECRETARY
WILLIAM W . WILES,
Secretary
JENNIFER J. JOHNSON, Associate
BARBARA R. LOWREY, Associate
RICHARD C. STEVENS, Assistant
Secretary
Secretary
Secretary1
Adviser
Director
(Administration )
Director
Director
Director
DIVISION
OF MONETARY
DONALD L. KOHN,
AFFAIRS
Director
DAVID E. LINDSEY, Deputy
Director
BRIAN F. MADIGAN, Assistant
Director
RICHARD D . PORTER, Assistant
Director
NORMAND R.V. BERNARD, Special Assistant
to the
Director
STEPHEN C. SCHEMERING, Deputy
Director
Director
WILLIAM A . RYBACK, Associate
Director
FREDERICK M . STRUBLE, Associate
Director
HERBERT A . BIERN, Assistant
Director
ROGER T. COLE, Assistant
Director
JAMES I. GARNER, Assistant
Director
JAMES D . GOETZINGER, Assistant
Director
MICHAEL G. MARTINSON, Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
SIDNEY M . SUSSAN, Assistant
Director
LAURA M. HOMER, Securities Credit Officer
1. O n loan f r o m the Division of Information Resources Management.
EDWARD C. ETTIN, Deputy
Director
WILLIAM R. JONES, Associate
Director
THOMAS D . SIMPSON, Associate
Director
LAWRENCE SLIFMAN, Associate
Director
DAVID J. STOCKTON, Associate
Director
MARTHA BETHEA, Deputy Associate
Director
PETER A. TINSLEY, Deputy Associate
Director
MYRON L. KWAST, Assistant
Director
PATRICK M . PARKINSON, Assistant
Director
MARTHA S. SCANLON, Assistant
Director
JOYCE K. ZICKLER, Assistant
Director
LEVON H. GARABEDIAN, Assistant
DIVISION OF BANKING
SUPERVISION AND
REGULATION
DON E. KLINE, Associate
STATISTICS
Director
Director
GLENN E. LONEY, Assistant
ELLEN MALAND, Assistant
DOLORES S. SMITH, Assistant
RICHARD SPILLENKOTHEN,
OF RESEARCH AND
MICHAEL J. PRELL,
JOHN J. M I N G O ,
DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
GRIFFITH L . GARWOOD,
DIVISION
OFFICE OF THE INSPECTOR
BRENT L. BOWEN, Inspector
BARRY R. SNYDER, Assistant
GENERAL
General
Inspector
General
Board
A73
SUSAN M . PHILLIPS
JOHN P. LAWARE
LAWRENCE B . LINDSEY
OFFICE OF
STAFF DIRECTOR
FOR
DIVISION OF RESERVE BANK
AND PAYMENT SYSTEMS
MANAGEMENT
S. DAVID FROST, Staff
Director
WILLIAM SCHNEIDER, Special
Assignment:
C L Y D E H . F A R N S W O R T H , JR.,
DAVID L. ROBINSON, Deputy
Opportunity
Programs Officer
DAVID L . S H A N N O N ,
Director
CONTROLLER
GEORGE E . L I V I N G S T O N ,
Controller
STEPHEN J. CLARK, Assistant
Controller
(Programs
Budgets)
DARRELL R. PAULEY, Assistant
OF SUPPORT
ROBERT E . FRAZIER,
Controller
(Finance)
SERVICES
Director
GEORGE M. LOPEZ, Assistant
DAVID L. WILLIAMS, Assistant
Director
Director
DIVISION OF INFORMATION
MANAGEMENT
STEPHEN R . MALPHRUS,
RESOURCES
Director
BRUCE M . BEARDSLEY, Deputy
Director
ROBERT J. ZEMEL, Senior
Adviser
MARIANNE M . EMERSON, Assistant
Director
Po KYUNG KIM, Assistant
Director
RAYMOND H. MASSEY, Assistant
EDWARD T. MULRENIN, Assistant
Director
Director
DAY W. RADEBAUGH, JR., Assistant
ELIZABETH B . RIGGS, Assistant
BRUCE J. SUMMERS, Deputy
Director
(Payments
CHARLES W. BENNETT, Assistant
Director
JACK DENNIS, JR., A s s i s t a n t
Director
EARL G. HAMILTON, Assistant
Director
JEFFREY C. MARQUARDT, Assistant
Director
JOHN H. PARRISH, Assistant
Director
LOUISE L. ROSEMAN, Assistant
Director
FLORENCE M. YOUNG, Assistant
Director
RESOURCES
JOHN R. WEIS, Associate
Director
ANTHONY V. DIGIOIA, Assistant
Director
JOSEPH H. HAYES, JR., Assistant
Director
FRED HOROWITZ, Assistant
Director
DIVISION
(Finance
Automation)
DIVISION OF HUMAN
MANAGEMENT
OFFICE OF THE
Director
Director
Director
Director
and
Control)
Project Director, National Information Center
PORTIA W. THOMPSON, Equal Employment
OPERATIONS
and
and
A74
Federal Reserve Bulletin • June 1992
Federal Open Market Committee
and Advisory Councils
FEDERAL
OPEN MARKET
COMMITTEE
MEMBERS
A L A N GREENSPAN,
E. GERALD CORRIGAN, Vice
Chairman
WAYNE D . ANGELL
J O H N P. L A W A R E
THOMAS H . H O E N I G
LAWRENCE B . LINDSEY
S U S A N M . PHILLIPS
JERRY L . JORDAN
THOMAS C . MELZER
RICHARD F. S Y R O N
Chairman
D A V I D W . M U L L I N S , JR.
EDWARD W . KELLEY, JR.
ALTERNATE
MEMBERS
ROBERT D . M C T E E R , JR.
EDWARD G . B O E H N E
JAMES H . O L T M A N
GARY H . STERN
SILAS K E E H N
STAFF
DONALD L. KOHN, Secretary and
Economist
NORMAND R.V. BERNARD, Deputy
Secretary
JOSEPH R. COYNE, Assistant
Secretary
GARY P. GILLUM, Assistant
Secretary
J. VIRGIL MATTINGLY, JR., General
Counsel
ERNEST T. PATRIKIS, Deputy General
Counsel
M I C H A E L J. PRELL,
Economist
EDWIN M . TRUMAN,
Economist
ANATOL B . BALBACH, Associate
Economist
JOHN M . DAVIS, Associate
Economist
RICHARD G. DAVIS, Associate
Economist
THOMAS E. DAVIS, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
ALICIA H. MUNNELL, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D . SIMPSON, Associate
Economist
DAVID J. STOCKTON, Associate
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
WILLIAM J. MCDONOUGH, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY
COUNCIL
R O N A L D G . STEINHART,
TERRENCE A . LARSEN, Vice
President
President
IRA STEPANIAN, First District
EUGENE A . MILLER, S e v e n t h District
CHARLES S. SANFORD, JR., S e c o n d District
TERRENCE A . LARSEN, Third District
JOHN B. MCCOY, Fourth District
EDWARD E. CRUTCHFIELD, Fifth District
DAN W. MITCHELL, Eighth District
E.B. ROBINSON, JR., Sixth District
JOHN F. GRUNDHOFER, Ninth District
DAVID A . RISMILLER, Tenth District
RONALD G. STEINHART, E l e v e n t h District
RICHARD M . ROSENBERG, T w e l f t h District
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
Secretary
Secretary
A75
CONSUMER
ADVISORY
COUNCIL
COLLEEN D. HERNANDEZ, Kansas City, Missouri, Chairman
DENNY D. DUMLER, Denver, Colorado, Vice Chairman
BARRY A . ABBOTT, San Francisco, California
JOHN R. ADAMS, Philadelphia, Pennsylvania
JOHN A . BAKER, Atlanta, Georgia
VERONICA E. BARELA, Denver, Colorado
MULUGETTA BIRRU, Pittsburgh, Pennsylvania
GENEVIEVE BROOKS, Bronx, N e w York
TOYE L. BROWN, B o s t o n , Massachusetts
JOYCE HARRIS, Madison, W i s c o n s i n
GARY S. HATTEM, N e w York, N e w York
JULIA E. HILER, Marietta, Georgia
HENRY JARAMILLO, B e l e n , N e w M e x i c o
KATHLEEN E. KEEST, B o s t o n , Massachusetts
E D M U N D MIERZWINSKI, W a s h i n g t o n , D . C .
BERNARD F. PARKER, JR., Detroit, M i c h i g a n
CATHY C L O U D , W a s h i n g t o n , D . C .
OTIS PITTS, JR., M i a m i , F l o r i d a
MICHAEL D . EDWARDS, Y e l m , Washington
GEORGE C. GALSTER, Wooster, O h i o
E. THOMAS GARMAN, Blacksburg, Virginia
DONALD A . GLAS, Hutchinson, Minnesota
JEAN POGGE, C h i c a g o , Illinois
JOHN V. SKINNER, Irving, Texas
N A N C Y HARVEY STEORTS, D a l l a s , T e x a s
DEBORAH B . GOLDBERG, W a s h i n g t o n , D . C .
MICHAEL M . GREENFIELD, St. Louis, Missouri
THRIFT INSTITUTIONS
ADVISORY
LOWELL N . SWANSON, Portland, Oregaon
MICHAEL W. TIERNEY, Philadelphia, Pennsylvania
SANDRA L. WILLETT, Boston, Massachusetts
COUNCIL
LYNN W. HODGE, Greenwood, South Carolina, President
DANIEL C. ARNOLD, Houston, Texas, Vice President
JAMES L. BRYAN, Richardson, Texas
VANCE W. CHEEK, Johnson City, Tennessee
BEATRICE D'AGOSTINO, Somerville, N e w Jersey
THOMAS J. HUGHES, Merrifield, Virginia
RICHARD A. LARSON, West Bend, Wisconsin
PRESTON MARTIN, San Francisco, California
RICHARD D . PARSONS, N e w York, N e w York
THOMAS R. RICKETTS, Troy, M i c h i g a n
EDMOND M . SHANAHAN, C h i c a g o , Illinois
WOODBURY C. TITCOMB, Worcester, Massachusetts
A76
Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
MS-138, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551 or telephone (202) 452-3244 or FAX
(202) 728-5886. When a charge is indicated, payment should
accompany request and be made payable to the Board of
Governors of the Federal Reserve System. Payment from foreign residents should be drawn on a U.S. bank.
T H E FEDERAL RESERVE S Y S T E M — P U R P O S E S A N D FUNCTIONS.
1984. 120 pp.
A N N U A L REPORT.
A N N U A L REPORT: B U D G E T REVIEW,
T H E U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A M U L T I -
1990-91.
FEDERAL RESERVE BULLETIN. M o n t h l y . $ 2 5 . 0 0 per y e a r or
$2.50 each in the United States, its possessions, Canada,
and Mexico. Elsewhere, $35.00 per year or $3.00 each.
A N N U A L STATISTICAL DIGEST
1981.
1982.
1983.
1984.
1985.
1986.
1987.
1988.
1980-89.
1990.
1982.
1983.
1984.
1985.
1986.
1987.
1988.
1989.
1991.
1991.
239
266
264
254
231
288
272
256
712
196
pp.
pp.
pp.
pp.
pp.
pp.
pp.
pp.
pp.
pp.
$ 6.50
$ 7.50
$11.50
$12.50
$15.00
$15.00
$15.00
$25.00
$25.00
$25.00
per
per
per
per
per
per
per
per
per
per
Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
The Payment System Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
four Handbooks plus substantial additional material.)
$200.00 per year.
Rates for subscribers outside the United States are as follows and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
COUNTRY MODEL, M a y 1984. 5 9 0 pp. $ 1 4 . 5 0 each.
WELCOME TO THE FEDERAL RESERVE. M a r c h 1 9 8 9 . 1 4 p p .
INDUSTRIAL PRODUCTION—1986
EDITION. D e c e m b e r
FINANCIAL F U T U R E S A N D OPTIONS IN THE U . S .
copy.
copy.
copy.
copy.
copy.
copy.
copy.
copy.
copy.
copy.
1986.
440 pp. $9.00 each.
ECONOMY.
December 1986. 264 pp. $10.00 each.
FINANCIAL SECTORS IN O P E N ECONOMIES: EMPIRICAL A N A L Y -
SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each.
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple
are available without charge.
copies
SELECTED INTEREST A N D E X C H A N G E R A T E S — W E E K L Y SERIES
OF CHARTS. Weekly. $30.00 per year or $.70 each in the
United States, its possessions, Canada, and Mexico. Elsewhere, $35.00 per year or $.80 each.
THE FEDERAL RESERVE ACT and other statutory provisions
affecting the Federal Reserve System, as amended through
August 1990. 646 pp. $10.00.
REGULATIONS OF THE B O A R D OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
ANNUAL
PERCENTAGE
RATE
TABLES
(Truth
in
Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp.
Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address,
$2.00 each.
Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or
more to one address, $1.25 each.
Federal Reserve Regulatory Service. Looseleaf; updated at
least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
Businesses
How to File A Consumer Credit Complaint
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancing
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
Making Deposits: When Will Your Money Be Available?
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit
A77
STAFF STUDIES: Summaries Only Printed in the
Bulletin
1 6 0 . B A N K I N G MARKETS A N D THE U S E OF FINANCIAL
SER-
VICES BY SMALL A N D M E D I U M - S I Z E D BUSINESSES,
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.
by
Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.
161. A
REVIEW OF CORPORATE RESTRUCTURING
ACTIVITY,
1980-90, by Margaret Hastings Pickering. May 1991.
21pp.
1 6 2 . EVIDENCE ON THE S I Z E OF B A N K I N G MARKETS FROM
Staff Studies 1-145 are out of print.
MORTGAGE L O A N RATES IN T W E N T Y CITIES, b y S t e p h e n
A. Rhoades. February 1992. 11 pp.
146. THE
ROLE OF THE PRIME RATE IN THE PRICING
OF
1 6 3 . CLEARANCE A N D SETTLEMENT IN U . S . SECURITIES M A R -
BUSINESS L O A N S BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 ,
by
KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob,
Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary
Ann Taylor. March 1992. 37 pp.
Thomas F. Brady. November 1985. 25 pp.
1 4 7 . REVISIONS IN THE MONETARY SERVICES (DIVISIA)
IN-
DEXES OF THE MONETARY AGGREGATES, b y H e l e n T. Farr
and Deborah Johnson. December 1985. 42 pp.
1 4 8 . T H E MACROECONOMIC A N D SECTORAL EFFECTS OF THE
ECONOMIC
RECOVERY
TAX
ACT:
SOME
SIMULATION
RESULTS, by Flint Brayton and Peter B. Clark. December
1985. 17 pp.
REPRINTS OF SELECTED Bulletin ARTICLES
Some Bulletin articles are reprinted. The articles listed below
are those for which reprints are available. Most of the articles
reprinted do not exceed twelve pages.
1 4 9 . T H E OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
B A N K I N G BEFORE A N D AFTER ACQUISITION, b y
Stephen
Limit of ten copies
A. Rhoades. April 1986. 32 pp.
1 5 0 . STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION AND AN APPLICATION, b y J o h n T.
Rose and John D. Wolken. May 1986. 13 pp.
1 5 1 . RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING
FROM 1983 THROUGH 1985, by Patrick I. Mahoney, A l i c e
P. White, Paul F. O'Brien, and Mary M. McLaughlin.
January 1987. 30 pp.
1 5 2 . DETERMINANTS
OF CORPORATE MERGER ACTIVITY:
A
REVIEW OF THE LITERATURE, by Mark J. Warshawsky.
April 1987. 18 pp.
153. STOCK MARKET VOLATILITY, by C a r o l y n D . D a v i s and
Alice P. White. September 1987. 14 pp.
154.
THE
EFFECTS
ON
CONSUMERS
AND
CREDITORS
OF
PROPOSED CEILINGS ON CREDIT C A R D INTEREST RATES,
by Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
1 5 5 . T H E F U N D I N G OF PRIVATE PENSION PLANS, b y M a r k J.
Warshawsky. November 1987. 25 pp.
1 5 6 . INTERNATIONAL TRENDS FOR U . S . B A N K S A N D B A N K I N G
MARKETS, by James V. Houpt. May 1988. 47 pp.
1 5 7 . M 2 PER U N I T OF POTENTIAL G N P AS AN ANCHOR FOR
THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D.
Porter, and David H. Small. April 1989. 28 pp.
1 5 8 . T H E ADEQUACY A N D CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS A N D DERIVATIVE
PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
1 5 9 . N E W DATA ON THE PERFORMANCE OF N O N B A N K SUBSID-
IARIES OF BANK HOLDING COMPANIES, b y N e l l i e L i a n g
and Donald Savage. February 1990. 12 pp.
Recent Developments in the Bankers Acceptance Market. 1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and U.S.
Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the
1983 and 1986 Surveys of Consumer Finances. 10/87.
Home Equity Lines of Credit. 6/88.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89.
The Activities of Japanese Banks in the United Kingdom and in
the United States, 1980-88. 2/90.
Industrial Production: 1989 Developments and Historical
Revision. 4/90.
Recent Developments in Industrial Capacity and Utilization.
6/90.
Developments Affecting the Profitability of Commercial Banks.
7/90.
Recent Developments in Corporate Finance. 8/90.
U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90.
The Transmission Channels of Monetary Policy: How Have
They Changed? 12/90.
U.S. International Transactions in 1990. 5/91.
Changes in Family Finances from 1983 to 1989: Evidence from
the Survey of Consumer Finances. 1/92.
A78
ANTICIPATED
SCHEDULE
OF RELEASE DATES FOR PERIODIC
RELEASES—BOARD
OF THE FEDERAL RESERVE SYSTEM 1 (PAYMENT MUST ACCOMPANY
REQUESTS)
Approximate
release days
OF
GOVERNORS
Weekly Releases
Annual
rate
Date of period to which data
refer
•
Aggregate Reserves of Depository Institutions and
the Monetary Base. H.3 (502) [1.20]
$15.00
Thursday
•
Actions of the Board: Applications and Reports
Received. H.2 (501)
$35.00
Friday
•
Assets and Liabilities of Insured Domestically
Chartered and Foreign Related Banking
Institutions. H.8 (510) [1.25]
$15.00
Monday
•
Factors Affecting Reserves of Depository
Institutions and Condition Statement of Federal
Reserve Banks. H.4.1 (503) [1.11]
$15.00
Thursday
Week ended previous
Wednesday
•
Foreign Exchange Rates. H.10 (512) [3.28]
$15.00
Monday
Week ended previous Friday
•
Money Stock, Liquid Assets, and Debt Measures.
H.6 (508) [1.21]
$35.00
Thursday
Week ended Monday of
previous week
•
Selected Borrowings in Immediately Available
Funds of Large Commercial Banks. H.5 (507)
[1.13]
$15.00
Wednesday
Week ended Thursday of
previous week
•
Selected Interest Rates. H.15 (519) [1.35]
$15.00
Monday
Week ended previous Saturday
•
Weekly Consolidated Condition Report of Large
Commercial Banks, and Domestic Subsidiaries.
H.4.2 (504) [1.26, 1.30]
$15.00
Friday
Wednesday, 1 week earlier
Week ended previous
Wednesday
Week ended previous Saturday
Wednesday, 3 weeks earlier
Monthly Releases
•
Consumer Installment Credit. G.19 (421) [1.55,
1.56]
$ 5.00
5th working day of
month
2nd month previous
•
Debits and Deposit Turnover at Commercial Banks.
G.6 (406) [1.22]
$ 5.00
12th of month
Previous month
•
Finance Companies. G.20 (422) [1.51, 1.52]
$ 5.00
5th working day of
month
2nd month previous
•
Foreign Exchange Rates. G.5 (405) [3.28]
$ 5.00
1st of month
Previous month
•
Industrial Production and Capacity Utilization. G.17
(419) [2.12, 2.13]
$15.00
Midmonth
•
Loans and Securities at all Commercial Banks. G.7
(407) [1.23]
$ 5.00
3rd week of month
•
Major Nondeposit Funds of Commercial Banks.
G. 10 (411) [1.24]
$ 5.00
3rd week of month
•
Research Library—Recent Acquisitions. G. 15 (417)
Free of
charge
1st of month
Previous month
•
Selected Interest Rates. G. 13 (415) [1.35]
$5.00
1st Tuesday of
month
Previous month
Previous month
Previous month
Previous month
1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because
of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than
anticipated.
The respective Bulletin tables that report the data are designated in brackets.
A79
Approximate
release days
Date of period to which data
refer
Quarterly Releases
Annual
rate
•
Agricultural Finance Databook. E.15 (125)
$ 5.00
End of March,
June, September,
and December
•
Country Exposure Lending Survey. E. 16 (126)
$ 5.00
January, April,
July, and
October
•
Flow of Funds Accounts: Seasonally Adjusted
and Unadjusted. Z.l (780) [1.57, 1.58]
$25.00
23rd of February,
May, August,
and November
•
Flow of Funds Summary Statistics. Z.l (788)
[1.59, 1.60]
$ 5.00
15 th of February,
May, August,
and November
•
Geographical Distribution of Assets and Liabilities
of Major Foreign Branches of U.S. Banks. E. 11
(121)
$ 5.00
15 th of March,
June, September,
and December
Previous quarter
•
Survey of Terms of Bank Lending to Business. E.2
(111) [4.23]
$ 5.00
Midmonth of
March, June,
September, and
December
February, May, August, and
November
•
List of OTC Margin Stocks. E.7 (117)
$ 5.00
January, April,
July, and
October
February, May, August, and
November
January, April, July, and
October
Previous quarter
Previous quarter
Previous quarter
Semiannual Releases
•
Balance Sheets for the U.S. Economy. C.9 (108)
5.00
October and April
Previous year
•
Report on the Terms of Credit Card Plans. E.5
(115)
5.00
March and August
January and June
February
End of previous June
Annual Releases
•
Aggregate Summaries of Annual Surveys of
Securities Credit Extension. C.2 (101)
$ 5.00
A80
Maps of the Federal Reserve System
9
1
BOSTON
•
MINNEAPOLIS!
7
CHICAGO
I S A N FRANCISCO
•
CLEVELAND
10
KANSAS
I PHILADELPHIA
4
CITYH
S ? Louis
11
N E W YORK
•
RICHMOND
6m
ATLANTA
DALLAS
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.
A81
1-A
2-B
5_E
4-D
3-C
Baltimore
Pittsburgh
Charlotte
*
'
Buffalo
NH
M A |
ct
7
•
-vD
• Cincinnati
^
NJ
NY
N E W YORK
BOSTON
6-F
7-G
• Nashville
RICHMOND
CLEVELAND
PHILADELPHIA
8-H
TN
Birmingham
WI
IA
Ml
Louisville
Detroit •
n. •
—
IN
Jacksonville
• Memphis
New Orleans
MS
Littl? ^
Rock
Miami
ATLANTA
9-1
ST. LOUIS
CHICAGO
MT
1 ND
1
• Helf ;na
MN
•
1 su
Ml
WI
MINNEAPOLIS
10-J
12-L
Omaha*
J
Denver
ALASKA
I
Seattle
J/
•
/
10
Portland
Oklahoma City
c
OR
CA
KANSAS CITY
/
NV
7
^
11-K
LT
'
)
•
i
9
Salt Lake City
*
• Los Angeles
San Antonio!
HAWAII
DALLAS
SAN FRANCISCO
AZ
•
A82
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Richard N. Cooper
Jerome H. Grossman
Richard F. Syron
Cathy E. Minehan
NEW YORK*
10045
Ellen V. Futter
Maurice R. Greenberg
Herbert L. Washington
E. Gerald Corrigan
James H. Oltman
Buffalo
14240
James O. Aston
PHILADELPHIA
19105
Peter A. Benoliel
Jane G. Pepper
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Jerry L. Jordan
William H. Hendricks
Cincinnati
Pittsburgh
45201
15230
John R. Miller
A. William Reynolds
Marvin Rosenberg
Robert P. Bozzone
RICHMOND*
23219
Anne Marie Whittemore
Henry J. Faison
John R. Hardesty, Jr.
Anne M. Allen
Robert P. Black
Jimmie R. Monhollon
Edwin A. Huston
Leo Benatar
Nelda P. Stephenson
Lana Jane Lewis-Brent
Michael T. Wilson
Harold A. Black
Victor Bussie
Robert P. Forrestal
Jack Guynn
Richard G. Cline
Robert M. Healey
J. Michael Moore
Silas Keehn
Daniel M. Doyle
H. Edwin Trusheim
Robert H. Quenon
James R. Rodgers
Daniel L. Ash
Seymour B. Johnson
Thomas C. Melzer
James R. Bowen
Delbert W. Johnson
Gerald A. Rauenhorst
J. Frank Gardner
Gary H. Stern
Thomas E. Gainor
Burton A. Dole, Jr.
Herman Cain
Barbara B. Grogan
Ernest L. Holloway
Sheila Griffin
Thomas M. Hoenig
Henry R. Czerwinski
Leo E. Linbeck, Jr.
Henry G. Cisneros
Alvin T. Johnson
Judy Ley Allen
Roger R. Hemminghaus
Robert D. McTeer, Jr.
Tony J. Salvaggio
James A. Vohs
Robert F. Erburu
To be announced
William A. Hilliard
Gary G. Michael
George F. Russell, Jr.
Robert T. Parry
Patrick K. Barron
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino1
Harold J. Swart1
Ronald B. Duncan1
Walter A. Varvel1
John G. Stoides1
Donald E. Nelson 1
Fred R. Herr1
James D. Hawkins1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso
Roby L. Sloan1
Karl W. Ashman
Howard Wells
Ray Laurence
John D. Johnson
Kent M. Scott
David J. France
Harold L. Shewmaker
Sammie C.Clay
Robert Smith, III1
Thomas H. Robertson
John F. Moore1
Leslie R. Watters
Andrea P. Wolcott
Gordon Werkema1
•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New
York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines,
Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
Federal Reserve Statistical Releases
Available on the Commerce Department's
Economic Bulletin Board
The Board of Governors of the Federal Reserve
System makes some of its statistical releases available to the public through the U.S. Department of
Commerce's economic bulletin board. Computer
access to the releases can be obtained by sub-
scription. For further information regarding a
subscription to the economic bulletin board,
please call 202-377-1986. The releases transmitted
to the economic bulletin board, on a regular basis,
are the following:
Reference
Number
Statistical release
Frequency of release
H.3
Aggregate Reserves
Weekly/Thursday
H.4.1
Factors Affecting Reserve Balances
Weekly/Thursday
H.6
Money Stock
Weekly/Thursday
H.8
Assets and Liabilities of Insured Domestically Chartered
and Foreign Related Banking Institutions
Weekly/Monday
H.10
Foreign Exchange Rates
Weekly/Monday
H.15
Selected Interest Rates
Weekly/Monday
G.5
Foreign Exchange Rates
Monthly/end of month
G.17
Industrial Production and Capacity Utilization
Monthly/midmonth
G.19
Consumer Installment Credit
Monthly/fifth business day
Z.7
Flow of Funds
Quarterly
Publications of Interest
FEDERAL
RESERVE
REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and 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 at least 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. For convenient reference, it also
contains the rules of the Depository Institutions
Deregulation Committee.
The Securities Credit Transactions
Handbook
contains Regulations G, T, U, and X, dealing with
extensions of credit for the purchases of securities,
together with all related statutes, Board interpreta-
U.S.
MONETARY
POLICY
AND
FINANCIAL
MARKETS
U.S. Monetary Policy and Financial Markets by
Ann-Marie Meulendyke offers an in-depth description
of the way monetary policy is developed by the
Federal Open Market Committee and the techniques
employed to implement policy at the Open Market
Trading Desk. Written from her perspective as a
senior economist in the Open Market Function at the
Federal Reserve Bank of New York, Ann-Marie
Meulendyke describes the tools and the setting of
policy, including many of the complexities that
differentiate the process from simpler textbook
models. Included is an account of a day at the Trading
Desk, from morning information-gathering through
daily decisionmaking and the execution of an open
market operation.
The book also places monetary policy in a broader
tions, rulings, and staff opinions. Also included is the
Board's list of OTC margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, and BB, and
associated materials.
The Payment System Handbook deals with expedited
funds availability, check collection, wire transfers,
and risk-reduction policy. It includes Regulation CC,
Regulation J, the Expedited Funds Availability Act
and related statutes, official Board commentary on
Regulation CC, and policy statements on risk reduction
in the payment systems.
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 138, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
context, examining first the evolution of Federal
Reserve monetary policy procedures from their
beginnings in 1914 to file end of the 1980s. It
indicates how policy operates most directly through
the banking system and the financial markets and
describes key features of both. Finally, the book turns
its attention to the transmittal of monetary policy
actions to the U.S. economy and throughout the
world.
The book is $5.00 a copy for U.S. purchases and
$10.00 for purchasers outside the United States.
Copies are available from the Public Information
Department, Federal Reserve Bank of New York, 33
Liberty Street, New York, N.Y. 10045. Checks must
accompany orders and should be payable to the
Federal Reserve Bank of New York in U.S. dollars.
@FedFRASER