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VOLUME 79 •

NUMBER 6 •

JUNE 1993

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE

Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn
• J. Virgil Mattingly, Jr. • Michael J. Prell • Richard Spillenkothen • Edwin M. Truman

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




Table of Contents
569 RESERVE REQUIREMENTS:
HISTORY, CURRENT PRACTICE,
AND POTENTIAL REFORM

Laws requiring banks and other depository
institutions to hold a certain fraction of their
deposits in reserve, in safe, secure assets, have
been a part of our nation's banking history for
many years. Over time, however, the rationale
for these requirements has changed as the
financial system has evolved and as knowledge about how reserve requirements affect
this system has grown. This article reviews
the basic concepts and current rules regarding
reserve requirements; provides a history of
reserve requirements in the United States,
including recent experience with cuts in these
requirements; and discusses proposals for
reforming the system of reserve requirements
in light of this recent experience and that of
other countries that have reduced their
requirements.

606 INDUSTRIAL PRODUCTION
CAPACITY UTILIZATION
FOR MARCH 1993

Industrial production was unchanged in
March, after having shown strong gains since
October; at 112.0 percent of its 1987 average,
total industrial production was 4.1 percent
above its year-ago level. Total industrial
capacity utilization declined 0.2 percentage
point, to 79.9 percent.
609 STATEMENT TO THE CONGRESS

John P. LaWare, member, Board of Governors, discusses some of the factors influencing
recent national and regional trends in bank
lending as well as changes in the composition
of banks' balance sheets and says that the
steps that banks have taken in recent years to
rebuild their balance sheets have been considerable and may well augur an increase in the
availability of bank credit, before the Subcommittee on Economic Growth and Credit Formation of the House Committee on Banking,
Finance and Urban Affairs, April 2, 1993.

590 INDUSTRIAL PRODUCTION, CAPACITY,
AND CAPACITY UTILIZATION SINCE 1987

The Federal Reserve recently revised its index
of industrial production and the related measures of capacity and utilization. Compared
with the previous index, the revised index
shows that manufacturing grew more slowly
from 1987 until the onset of recession late in
1990 and then recovered more rapidly, albeit
unevenly. The index of industrial capacity was
also revised downward. Capacity utilization,
the ratio of output to capacity, was about the
same for most of 1987-91 as it was before the
revision. However, the more rapid recovery of
revised production from the trough and slower
growth of revised capacity led to an upward
revision of utilization in late 1992 and early
1993.



AND

614

ANNOUNCEMENTS

Publication of documents on market risk and
bank capital by the Basle Committee on Banking Supervision.
Issuance of final rule amending risk-based
capital guidelines for state member banks and
bank holding companies.
Revisions to the staff commentary to Regulation Z.
Revisions to the List of Marginable OTC
Stocks and to the List of Foreign Margin
Stocks.
Release of quarterly table of factors to adjust
interest income of section 20 companies.

617 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, 1993.
A3 GUIDE TO TABULAR PRESENTATION

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

A4 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics

A80 MAPS OF THE FEDERAL RESERVE
SYSTEM

A69 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES

A82 FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES




Reserve Requirements: History,
Current Practice, and Potential Reform
Joshua N. Feinman, of the Board's Division of
Monetary Affairs, prepared this article. Jana
Deschler and Christoph Hinkelmann provided
research assistance.
Laws requiring banks and other depository institutions to hold a certain fraction of their deposits in
reserve, in very safe, secure assets, have been a part
of our nation's banking history for many years. The
rationale for these requirements has changed over
time, however, as the country's financial system
has evolved and as knowledge about how reserve
requirements affect this system has grown. Before
the establishment of the Federal Reserve System,
reserve requirements were thought to help ensure
the liquidity of bank notes and deposits, particularly during times of financial strains. As bank runs
and financial panics continued periodically to
plague the banking system despite the presence
of reserve requirements, it became apparent that
these requirements really had limited usefulness as
a guarantor of liquidity. Since the creation of the
Federal Reserve System as a lender of last resort,
capable of meeting the liquidity needs of the entire
banking system, the notion of and need for reserve
requirements as a source of liquidity has all but
vanished. Instead, reserve requirements have
evolved into a supplemental tool of monetary policy, a tool that reinforces the effects of open market
operations and discount policy on overall monetary
and credit conditions and thereby helps the Federal
Reserve to achieve its objectives.
While useful as an auxiliary policy tool, reserve
requirements also have important implications for
the efficacy of the Federal Reserve's primary tool,
open market operations. In the early 1980s, for
example, when open market operations were
geared toward fostering fairly precise, short-run
control of narrowly defined money (Ml), reserve
requirements were designed to help facilitate this
control by establishing a relatively stable, contem-




poraneous link between reserves and Ml deposits.
Although the Federal Reserve is no longer pursuing
this type of short-run control of money, reserve
requirements still play an important role in the
conduct of open market operations, which are now
aimed at influencing general monetary and credit
conditions by varying the cost and availability of
reserves to the banking system. By helping to
ensure a stable, predictable demand for reserves,
reserve requirements better enable the Federal
Reserve to achieve desired reserve market conditions by controlling the supply of reserves; in so
doing, they help prevent potentially disruptive fluctuations in the money market.
Reserve requirements are not costless, however.
On the contrary, requiring depositories to hold a
certain fraction of their deposits in reserve, either
as cash in their vaults or as non-interest-bearing
balances at the Federal Reserve, imposes a cost on
the private sector equal to the amount of forgone
interest on these reserves—or at least on the fraction of these reserves that banks hold only because
of legal requirements and not because of the needs
of their customers. The higher the level of reserve
requirements, the greater the costs imposed on the
private sector; at the same time, however, higher
reserve requirements may smooth the implementation of monetary policy and damp volatility in the
reserves market.
The Federal Reserve could resolve this policy
dilemma by paying interest on required reserves, or
at least on the part of these reserves that banks
would not hold were it not for legal requirements.
Paying an explicit, market-based rate of return on
these funds would effectively eliminate much of
the costs of reserve requirements without jeopardizing the stable demand for reserves that is needed
for open market operations and for the smooth
functioning of the reserves market.
The Federal Reserve Board has long supported
legislation that would explicitly allow interest to be

570

Federal Reserve Bulletin • June 1993

paid on the balances that depositories are required
to hold in reserve—though not on the cash they
hold in their vaults, which is assumed to be held
primarily to meet customer needs—but to no avail.1
Opposition has typically centered on the adverse
implications such a move would have for Treasury
revenue. If the Federal Reserve paid interest on
required balances, its net earnings would decline,
and because it turns the vast majority of its earnings over to the Treasury, the Treasury's revenues
would decline as well. On the other hand, eliminating the costs of reserve requirements would remove
one government-mandated impediment to deposittaking and lending through the banking system.
Recently, the costs of depository intermediation
have risen sharply because of higher deposit insurance premiums, stifFer capital requirements, more
stringent standards for interbank lending, and other
regulatory burdens. Much of these increased costs
have likely been passed on to the customers of
depositories in the forms of higher loan rates and
lower deposit rates; paying interest on reserves
would be one way of countering some of these
government-mandated increases in costs.

to maintain reserves against transaction deposits,
which include demand deposits, negotiable order
of withdrawal accounts, and other highly liquid
funds.2 Reserves against these deposits can take the
form either of currency on hand (vault cash) or
balances at the Federal Reserve. The Federal
Reserve may vary the percentage of transaction
deposits that must be kept in reserve, but only
within fairly narrow limits prescribed by law;
requirements may also be imposed on certain types
of nontransaction accounts, though again only
within specified limits.3 At present, the required
reserve ratio on nontransaction accounts is zero,
while the requirement on transaction deposits is
10 percent, which is near the legal minimum.
Most depositories are able to satisfy their entire
reserve requirement with vault cash, which they
hold primarily to meet the liquidity needs of their
customers and would likely hold even in the
absence of reserve requirements. For these institutions, reserve requirements are essentially costless.
About 3,000 depositories, however, have vault cash
holdings that are insufficient to satisfy their entire
reserve requirement. To meet their requirements,
these institutions must also maintain deposits,
called required reserve balances, at the Federal
Reserve.

BASIC CONCEPTS AND CURRENT RULES OF
RESERVE REQUIREMENTS
Under current regulations, all depository
institutions—commercial banks, savings banks,
thrift institutions, and credit unions—are required

1. See, for example, "Statement by Arthur F. Burns, Chairman,
Board of Governors of the Federal Reserve System, before the
Subcommittee on Financial Institutions of the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, June 20, 1977,"
Federal Reserve Bulletin, vol. 63 (July 1977), pp. 636-43; "Statement by J. Charles Partee, member, Board of Governors, before the
Subcommittee on Financial Institutions Supervision, Regulation
and Insurance of the Committee on Banking, Finance and Urban
Affairs, U.S. House of Representative, October 27, 1983," Federal
Reserve Bulletin, vol. 69 (November 1983), pp. 840-52; and
"Statement by Alan Greenspan, 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, February 19, 1992," Government Printing Office, Serial No. 102-98 (1992) pp. 42-43. The
Federal Reserve has also requested the lifting of the prohibition on
the payment of interest on demand deposits. See, in particular, the
statement by J. Charles Partee, October 27, 1983.




Reserve Requirements as a Tax
Some uncertainty exists as to whether the Federal
Reserve Act permits interest to be paid on reserves.
In fact, the Federal Reserve has never actually paid

2. For a formal definition of depository institutions and transaction accounts, see Federal Reserve Regulation D (Reserve Requirements of Depository Institutions), sections 204.1 and 204.2.
3. At present, required reserve ratios may be set between 8 percent and 14 percent on transaction accounts in excess of $46.8 million, and between 0 and 9 percent on nonpersonal savings deposits,
nonpersonal time deposits with original maturities of eighteen
months or longer, and net Eurocurrency liabilities. Transaction
deposits of less than $46.8 million, in the so-called low reserve
tranche, are reservable at 3 percent, while the first $3.8 million of
transaction deposits at each depository are exempt from reserve
requirements altogether. The Federal Reserve cannot alter the cutoffs for the low reserve tranche or the exemption, which are
adjusted each year according to a formula provided by law.

Reserve Requirements: History, Current Practice, and Potential Reform

interest on required reserve balances.4 Requiring
depositories to hold idle, non-interest-bearing balances is essentially like taxing these institutions in
an amount equal to the interest they could have
earned on these balances in the absence of reserve
requirements. This forgone interest, or reserve
"tax," directly affects only the depository system
and its customers, and not other parts of the financial system. Hence, it creates an artificial incentive
for depositors and borrowers to bypass the depository system, and in so doing it may redirect credit
flows in ways that impair the efficiency of resource
allocation. In particular, by distorting the relative
price of transaction accounts at depositories, the
reserve tax may induce a smaller level of transaction services than what would be ideal for the
functioning of the economy. The reserve tax also
creates an incentive for depositories to expend
resources trying to minimize required reserves by
fashioning new financial products aimed solely at
delivering transactions services without creating
reservable liabilities.
As is true for most taxes, determining precisely
who bears the burden of the reserve tax is difficult.
That determination depends in a complicated way
on the degree of competitive pressure in the markets for deposits and loans and the associated sensitivities of borrowers, lenders, and depositories to
changes in prices and interest rates. One thing is
certain, however: Depositories and their shareholders do not bear all of the costs but rather pass at
least some of them on to their customers in the
forms of lower deposit rates and higher loan rates.
In compensating-balance arrangements, for example, in which customers maintain non-interestbearing deposits as compensation for bank services, the customers typically "pay" the reserve
tax by holding additional balances. Similarly, to the
extent that some borrowers, such as small and

4. The Federal Reserve Board has, however, at least in the past,
taken the position that it has the discretion to pay interest on
reserves, though individual members of the Congress opposed such
payments at the time of the enactment of the Federal Reserve Act
in 1913 and again as recently as 1978. For details on a Federal
Reserve proposal to pay interest on required reserve balances
in 1978, see Federal Reserve Bulletin, vol. 64 (July 1978),
pp. 605-10. For congressional reaction to this proposal, see, "Monetary Control and the Membership Problem," Hearings before the
Committee on Banking, Finance and Urban Affairs on H.R. 13476,
H.R. 13477, H.R. 12706, and H.R. 14072, 95 Cong. 2 Sess. U.S.
House of Representatives (GPO, 1978), p. 781.




571

medium-sized businesses, have few alternatives
outside of the depository system, these borrowers
may ultimately bear some of the burden of the
reserve tax in the form of higher costs of credit.

Current Estimates of the Reserve Tax
Table 1 presents estimates of the current dollar
magnitude of the reserve tax. In the fourth quarter
of 1992, the required reserve balances of all depositories totaled $23 V billion. Because many of the
2
financial transactions in our economy flow through
these reserve accounts, even in the absence of
reserve requirements depositories would likely hold
some balances at the Federal Reserve as a buffer
against the normal uncertainties surrounding payment flows. Thus, $23 V2 billion should be considered an upper bound on the amount of balances
truly idled by reserve requirements in the fourth
quarter of 1992. Even if banks had invested all of
these funds, moreover, the gains would probably
not have been large because short-term interest
rates are currently at relatively low levels. Using a
federal funds rate of 3 percent as a proxy for the
potential earnings rate on idle balances, the lost
interest income due to reserve requirements totals
only about $700 million, at an annual rate, based
on $23 V billion of balances. About $600 million
2
of this would have accrued to commercial banks
and their customers; even in the unlikely event that
banks were able to retain all of this increased
revenue, it would have boosted their pretax return
on assets for 1992 by only about 2 basis points
compared with an actual pretax rate of return on
assets of a little more than 130 basis points.
On an after-tax basis, the earnings would be even
smaller because depositories and their customers
would have to pay extra taxes on this additional
income. Regardless of the precise figure, however,
1.

Burden of reserve requirements, 1992:Q4
Billions of dollars
Type of
institution

Required
reserve balances

Forgone
interest

All depositories

23.5

.7

Commercial banks
Thrift institutions

21.1
2.4

.6
.1

1. Forgone interest is annualized, based on a federal funds rate of
3 percent.

572

Federal Reserve Bulletin • June 1993

if the Federal Reserve paid interest on all required
reserve balances, the private sector would enjoy a
net increase in after-tax income, whereas the Treasury would see its net revenues reduced. Of course,
if interest rates were higher, the burden of reserve
requirements and the private-sector cost savings
and government revenue losses stemming from
paying interest on required reserve balances would
be commensurately larger than the amounts shown
in table 1. The distortions to resource allocation
would be more pronounced as well. Indeed, the
burden of reserve requirements has, at times, been
considerably larger than it is now, as a result of
both higher interest rates and higher reserve
requirements.
Because reserve requirements are a tax on the
private sector that may distort the optimal allocation of resources in the financial sector, the question arises as to why these requirements were
imposed in the first place. The next section traces
the historical evolution of reserve requirements and
their rationales to see how our current system
developed. Subsequently, several options for
reforming the current system to eliminate the
reserve tax without jeopardizing the effective conduct of monetary policy are analyzed.
HISTORICAL REVIEW OF RESERVE
REQUIREMENTS AND THEIR RATIONALES
Reserve requirements have played a part in our
nation's financial system from the earliest days—
long before the creation of a national currency or a
central bank.
Early State Laws and Practices
The first commercial banks in this country were
chartered by the states and were not required to
keep reserves either against deposits, which were
little used at the time, or against their own, more
ubiquitous, bank notes. In the absence of a national
currency, bank notes were commonly used as a
medium of exchange, though high transaction costs
of redeeming the notes and limited information
about the underlying solvency of the issuer generally confined the use of any individual bank's notes
to a small geographic area. To facilitate the more
widespread use of their notes, banks in New York




and New England entered into voluntary redemption arrangements as early as 1820. Under these
arrangements, one bank agreed to redeem another
bank's notes at par, provided that the issuing bank
maintained a sufficient deposit of specie (gold or its
equivalent) on account with the redeeming bank as
backing for the notes. In essence, these deposits
represented the first required reserves. The primary
purpose of these reserves was to increase the
liquidity of bank notes by ensuring their convertibility into specie. Although in subsequent years
some states began to require banks to maintain
reserves against their notes, and a few even began
to require reserves against deposits, most states still
had no legal reserve requirements when the Civil
War broke out in 1861.

The National Bank Era
Reserve requirements were first established at the
national level in 1863 with the passage of the
National Bank Act. This act provided banks an
opportunity to organize under a national charter
and created a network of institutions whose notes
could circulate more easily throughout the country.
In exchange for this charter, banks had to hold
a 25 percent reserve against both notes and
deposits—a much higher requirement than that
faced by most state banks. Although banks in
"redemption" cities—designated in the act as cities
where notes were likely to accumulate for
redemption—had to hold reserves entirely in the
form of "lawful" money (specie or greenbacks),
banks outside these cities could maintain 60 percent of their reserves in interest-bearing balances at
banks in redemption cities.
Reserve requirements were seen as necessary for
ensuring the liquidity of national bank notes and
thereby reinforcing their acceptability as a medium
of exchange throughout the country. Concentrating
reserves in areas where demands for liquidity were
likely to be most acute was thought to be the surest
means of promoting the widespread use and acceptance of national bank notes. At the same time,
allowing banks outside redemption cities to earn
interest on a portion of their reserves made the
burden of reserve requirements less onerous for
banks that faced more limited demands for
liquidity.

Reserve Requirements: History, Current Practice, and Potential Reform

The federal government had a keen interest in
seeing the use of national bank notes flourish
because, in addition to reserve requirements,
national bank notes were also required to be
backed by holdings of government bonds, which
were needed to finance the Civil War. To make the
issuance of national bank notes less costly, reserve
requirements against these notes were lowered for
banks outside redemption cities from 25 percent to
15 percent in 1864, and banks in redemption cities
outside New York City were allowed to meet half
of their requirements with interest-bearing balances
at a bank in New York. Still dissatisfied with the
rate of growth of national bank notes, the Congress
imposed a tax on state bank notes in 1865, effectively guaranteeing the primacy of national bank
notes as a medium of exchange. Indeed, in subsequent years, these notes began to circulate widely
throughout the country and were rarely redeemed.
With their convertibility no longer in question,
reserve requirements against national bank notes
were lifted in 1873. Requirements remained in
place on deposits, however, which were just emerging as an accepted means of payment. As time
wore on, the role of deposits expanded, and they
eventually supplanted bank notes as the preferred
medium of exchange for many transactions, with
their convertibility supposedly reinforced by
reserve requirements.
A series of bank runs and financial panics in the
late nineteenth and early twentieth centuries made
it patently clear that reserve requirements could
not really guarantee the convertibility of deposits
for the entire banking system. In fact, reserve
requirements were really no help at all in providing
liquidity during a panic because a given dollar of
reserves could not be used simultaneously to meet
a customer's demand for cash and to satisfy reserve
requirements. What was lacking from the national
banking system or, for that matter, from any fractional reserve system—one with reserve requirements of less than 100 percent—was a mechanism
for accommodating temporary variations in the
public's demand for liquidity by adjusting the
quantity of reserves available to the entire banking
system. Absent such a mechanism, systemic panics
and crises stemming from fluctuating liquidity
needs were all too common. Though an individual
bank might be able to meet a temporary surge in
the demand for cash with little attendant adverse




573

effect on the economy, the banking system as a
whole could not without selling securities or calling in loans, thereby squeezing credit supplies,
driving up interest rates, and precipitating a general
financial crisis.

Creation of the Federal Reserve System
The Federal Reserve Act of 1913 created a system
of Reserve Banks that could act as lenders of last
resort by accommodating the temporary liquidity
needs of the banking system and thereby alleviating the periodic financial disruptions that plagued
the national bank era. By discounting eligible assets
of member banks, Federal Reserve Banks provided
a ready, accessible source of liquidity that had been
missing from the national banking system.
Although the creation of the Federal Reserve
System seemingly eliminated any remaining liquidity rationale for reserve requirements, banks that
were members of the System were still required to
hold reserves, though requirements were lower than
those previously in effect for most national banks.
In the original Federal Reserve Act, banks had
to hold in reserve different percentages of their
demand deposits—deposits that could be withdrawn on demand—depending on whether they
were classified as central reserve city banks
(18 percent), reserve city banks (15 percent), or
country banks (12 percent).5 In addition, all member banks faced a 5 percent requirement on time
deposits.6 Member banks outside central reserve
cities were not allowed, however, to meet part of
their requirements with interest-bearing balances at
a bank in a central reserve city. Starting in 1917,
moreover, member banks could no longer use vault
cash to satisfy reserve requirements: They had to

5. Originally, the rationale for these distinctions among cities
was a carryover from the designation of redemption cities in the
national bank era. In 1913, banks in New York, Chicago, and
St. Louis were classified as central reserve city banks, and banks in
about fifty other cities were designated as reserve city banks. In
1922, St. Louis was reclassified as a reserve city, and in 1962 the
central reserve city designation was eliminated altogether. Over the
years, the number of reserve cities changed somewhat as some
cities were added and others deleted by the Federal Reserve Board.
6. For details on the history of changes in reserve requirements
since the inception of the Federal Reserve, see the appendix.

574

Federal Reserve Bulletin • June 1993

meet their requirements entirely with non-interestbearing balances at a Federal Reserve Bank.
On net, therefore, the effective burden of reserve
requirements in terms of forgone interest was
somewhat higher for member banks than for nonmember banks, particularly for those outside central reserve cities. To help offset this increased
burden, in 1917 reserve requirements on demand
deposits were pared further, to 13 percent, 10 percent, and 7 percent respectively for the three types
of member banks, and requirements on time deposits were reduced from 5 percent to 3 percent for all
members. These reductions, coupled with the benefits of access to Federal Reserve credit at the discount window and free Federal Reserve services—
such as check clearing and currency distribution—
were considered sufficient encouragement for
banks to become members of the System, despite
the higher reserve requirement burden that such
membership often entailed. In later years, however,
the burden of reserve requirements would become
more acute, making membership less desirable for
many institutions.
Reserve Requirements as a Means of
Influencing Credit Conditions
In the 1920s and 1930s, the Federal Reserve gradually began to expand its original, reactive role as
lender of last resort and guarantor of the liquidity
of the banking system and adopted a more proactive posture in attempting to influence the nation's
credit conditions. As the emphasis of monetary
policy evolved, so too did the rationale for reserve
requirements. In fact, by 1931, the Federal Reserve
had officially abandoned the view that reserves
were a necessary or useful source of liquidity for
deposits, arguing instead that reserve requirements
provided a means for influencing the expansion of
bank credit.7 Specifically, the Federal Reserve
believed that requiring banks to hold reserves
against the additional deposits needed to fund each
increment of new loans could help restrain an
overly rapid expansion of credit.

7. See "Member Bank Reserves—Report of the Committee on
Bank Reserves of the Federal Reserve System," in Board of Governors of the Federal Reserve System, 19th Annual Report, 1932
(Board of Governors, 1933), pp. 260-85.




In practice, however, reserve requirements were
of little help in containing the rapid credit growth
that occurred in the late 1920s. During this period,
the primary tool used by the Federal Reserve to
influence credit conditions was the discount rate.
Because this rate was generally kept below market
rates and only marginal administrative pressure
was used to dissuade banks from availing themselves of the discount window, banks had an incentive to borrow the reserves they needed to finance
their rapidly expanding assets from the Federal
Reserve, and they responded vigorously to this
incentive. Throughout much of the 1920s, discount
window borrowings were more than half of total
Federal Reserve assets. With the Federal Reserve
effectively accommodating much of the increased
credit expansion, reserve requirements placed no
significant constraint on lending. In addition, the
Federal Reserve had no authority to raise reserve
requirements even if it had wanted to make them a
more binding constraint on credit expansion.
During the Great Depression, as market interest
rates plunged and loan demand all but dried up,
reserve requirements were obviously not needed to
curtail credit growth. In fact, through much of this
period, banks held large quantities of reserves in
excess of their reserve requirements, suggesting
that reserve requirements were not in any way
constraining credit expansion. The Federal Reserve
was concerned that these large excess reserves
could eventually be used to support an overly rapid
buildup of deposits and loans that could ultimately
prove inflationary. Therefore, it excercised its
newly acquired powers under the Banking Act of
1935 and doubled the required reserve ratios on
both demand and time deposits, thereby effectively
absorbing much of extant excess reserves.8 By
1938, however, as evidence mounted that the
nascent economic recovery was imperiled, the Federal Reserve moved to trim reserve requirements
on both demand and time deposits, hoping to free
up additional funds for lending.
8. The Thomas Amendment of 1933 first granted authority to
the Federal Reserve Board to raise reserve requirements, subject to
presidential approval, provided that a national emergency was
declared. The Banking Act of 1935 eliminated the need for presidential approval or the declaration of an emergency, though it also
precluded the Board from reducing requirements below the levels
then in force or from more than doubling those requirements.

Reserve Requirements: History, Current Practice, and Potential Reform

In the years surrounding World War II, monetary
policy considerations became subordinate to
financing the government debt. During this period,
the Federal Reserve abandoned an active monetary
policy role and chose as its highest priority to
accommodate the government's financing needs by
buying Treasury securities at low interest rates.
Postwar Issues: Membership Attrition and
Monetary Control
In 1951, the Federal Reserve resumed an active,
independent monetary policy. In subsequent years,
reserve requirements were adjusted numerous
times, usually to reinforce or supplement the effects
of open market operations and discount policy
on overall monetary and credit conditions. In the
short run, however, reserve requirements placed
little constraint on the expansion of deposits
because the Federal Reserve largely accommodated any such expansion through open market operations. Over time, though, if the Federal
Reserve sought to reduce the availability of money
and credit by providing reserves less generously
through open market operations, it could and
often did augment its actions by raising reserve
requirements.
The use of reserve requirements as a supplemental tool of monetary policy was particularly prevalent in the 1960s and 1970s, as the Federal Reserve
sought to influence the expansion of money and
credit in part by manipulating bank funding costs.
As financial innovation spawned new sources of
bank funding, the Federal Reserve began to adapt
reserve requirements to these new financial products and often changed requirements on the specific
bank liabilities that were most frequently used
as marginal sources of funding. As banks began
to rely more heavily on the issuance of largedenomination time deposits (CDs) to fund their
asset acquisitions in the 1960s, for example, the
Federal Reserve began periodically to alter reserve
requirements on these instruments, thereby affecting their cost of issuance and, thus, the supply of
credit through banks. It sometimes supplemented
its actions by placing a marginal reserve requirement on large time deposits—that is, an additional
requirement applied only to each new increment of
these deposits.




575

Reserve requirements were also imposed on
other, newly emerging liabilities that were the functional equivalents of deposits. For example, as
banks started to rely more on Eurodollar borrowings as a funding source in the late 1960s, partly in
an effort to circumvent existing reserve requirements, the Federal Reserve imposed marginal
requirements on these liabilities and adjusted these
requirements periodically throughout the 1970s.
The imposition of reserve requirements on these
and other managed liabilities was especially useful
in the late 1970s, as the Federal Reserve aggressively sought to curb the expansion of money and
credit and thereby ease price pressures.
Throughout this period, reserve requirements
also had important implications for membership in
the Federal Reserve System. Since membership
was optional for state-chartered banks, some of
these institutions began to leave the System in
the 1950s to take advantage of the lower reserve
requirements imposed by most state regulatory
authorities, some of whom also allowed banks to
meet part of their requirements with interestearning assets. The Federal Reserve feared that if
enough banks left the System, changes in the cost
and availability of reserves to the remaining member banks might have a diminished effect on overall monetary and credit conditions, thus undermining the efficacy of monetary policy.
Change in vault cash accounting. To reduce the
burden of reserve requirements and stem the erosion of membership in the System, legislation was
enacted allowing banks to resume using vault cash
to satisfy their reserve requirements. This change,
which was phased in beginning December 1959,
provided the greatest relief to small banks, which
tended to hold relatively large quantities of vault
cash to meet their customers' liquidity needs. Permitting this vault cash to be used to meet reserve
requirements reduced the amount of non-interestbearing balances these banks had to hold at the
Federal Reserve. Because smaller banks were most
apt to leave the System, it was hoped that this
reform would help stanch membership attrition.
Although larger banks tended to benefit less from
this rule change, they were less likely to leave the
System because they often reaped the greatest
benefits from free Federal Reserve services, par-

576

Federal Reserve Bulletin • June 1993

1. Burden of reserve requirements, 1959-92'
Billions o

2. Marginal reserve tax on transaction deposits,
1959-93 :Q1'

Required reserves

1. The marginal reserve tax is the quarterly average effective federal funds
rate times the highest reserve requirement on transaction deposits during the
quarter.

Effective federal funds rate

Billions of dollars

Forgone interest
(1982 dollars)2

1960
1965
1970
1975
1980
1985
1990
1. Data are annual averages.
2. Forgone interest is defined as required reserve balances multiplied by the
federal funds rate.

ticularly those related to the clearing of financial
transactions.
The change in vault cash accounting did in fact
reduce the level of required reserve balances somewhat in the early 1960s (top panel of chart 1). This
decline, coupled with a drop in short-term interest
rates (middle panel of chart 1), helped lighten the
burden of reserve requirements in terms of the
interest forgone on required reserve balances (bottom panel of chart 1).
Proposals to change the structure of reserve
requirements. This relief proved temporary, however. As interest rates climbed in the late 1960s and
into the 1970s, the burden of reserve requirements




became more onerous; with higher interest rates,
banks were being forced to forgo more earnings by
holding non-interest-bearing required reserve balances. Indeed, the marginal tax rate on transaction
(demand) deposits—the reserve tax on an additional dollar of these deposits, as measured by the
reserve requirement times the rate of interest
forgone—rose through much of this period as well
(chart 2). As a result, more banks began to leave
the Federal Reserve System, taking with them an
ever-increasing share of the deposits in the banking
system. By the early 1970s, for example, the share
of transaction deposits held by member banks had
fallen below 75 percent from nearly 85 percent in
the late 1950s (chart 3). In response, the Federal
Reserve began to argue for additional legislation
aimed at stemming the corrosive effects of the
decline in membership on monetary control. Either
all depository institutions should be subject to
reserve requirements established by the Federal
Reserve, thereby rendering the membership issue
irrelevant, the System argued, or interest should be
paid on required reserve balances, thereby removing banks' primary motive for leaving the System.9
Opposition to both proposals proved strong,
however, with nonmember banks leading the crusade against universal reserve requirements and

9. Each Annual Report of the Board of Governors of the Federal
Reserve System between the years 1964 and 1979 argued for the
adoption of legislation aimed at reforming the structure of reserve
requirements to combat the problem of membership attrition.

Reserve Requirements: History, Current Practice, and Potential Reform

3. Member bank transaction deposits as a share of total
transaction deposits, 1959-80'
Percent

—

—
—

I960

I I I I I
1965

I I I I I
1970

I I I I I
1975

1

70

I I I I I

75

—

-

80

—

*

85

65

1 1
1980

1. Transaction deposits are defined as net demand deposits plus NOW
accounts. Data are expressed as annual averages.

with both the legislative and executive branches of
the federal government opposed to interest on
reserves out of concern about Treasury revenues.
In fact, a 1963 presidential commission cautioned
against any significant cuts in reserve requirements
to avoid a sharp drop in Treasury revenue.10 Most
academics, by contrast, usually supported retaining
and even increasing reserve requirements to tighten
the link between reserves and money, while paying
interest on reserves to eliminate the distortional
effects of the reserve tax.11
Lagged reserve requirements. Thwarted in its
attempts to promote substantive change in the
structure of reserve requirements, the Federal
Reserve took several smaller, unilateral steps aimed
at stemming membership attrition. In 1968, a system of lagged reserve requirements (LRR) was
implemented in which a bank's required reserves
were computed based on its deposit levels from
two weeks earlier. Previously, the computation
period for deposits had been essentially contemporaneous with the maintenance period for reserves.
By switching to LRR, the Federal Reserve hoped to
make it less difficult and costly for banks to calculate their reserve requirements and to manage their
10. Report of the Committee on Financial Institutions to the
President of the United States, Walter W. Heller, Chairman
(GPO, 1963).
11. See, for example, Milton Friedman, A Program for
Monetary
Stability
(Fordham University Press, 1959),
pp. 65-76; Thomas Mayer, "Interest Payments on Required
Reserve Balances," Journal of Finance, vol. 21 (March 1966),
pp. 116-18; and George S. Tolley, "Providing for Growth of the
Money Supply," Journal of Political Economy, vol. 65 (December
1957), pp. 477-85.




577

reserve positions. One problem with LRR was that
it weakened the direct, contemporaneous link
between reserves and money, thus making it harder,
in principle, to manipulate reserves to control
money, at least in the short run. This problem was
not considered a serious one, however, because
Federal Reserve procedures at that time were not
directed at tight, short-run control of money
through a reserves operating target.
Graduated reserve requirements. In the late
1960s, the Federal Reserve also began to move
away from a system of reserve requirements based
on geographic distinctions, as embodied in the
reserve city bank and country bank designations.
By 1972, the old system was eliminated altogether,
and a new system with a progressive, graduated
reserve requirement schedule was implemented.
Under the new system, reserve requirements
increased with the level of each bank's deposits,
independent of its location. Although the specifics
were somewhat complicated (see the appendix for
details), the upshot of the change was to reduce
reserve requirements for smaller banks, which were
still most likely to leave the System. At the same
time, however, the move to a system with many
reserve requirements based on different deposit
levels further weakened the link between the aggregate level of reserves and the total amount of
deposits in the banking system. Again, however,
because the Federal Reserve was not trying to
maintain control of deposits through a reservestargeting procedure, this effect was not a major
concern.
Continued decline of membership. Despite the
efforts of the Federal Reserve, the decline of membership in the System continued unabated, with the
proportion of transaction deposits at member banks
falling below 65 percent of total transaction deposits by the late 1970s (chart 3), in part because rising
interest rates were enlarging the reserve tax
(charts 1 and 2). In response, the Federal Reserve
began to argue more vociferously for changes in
the structure of reserve requirements to prevent
membership attrition from further undermining the
efficacy of monetary policy.12 In 1978, it even went
12. See "Statement by G. William Miller, Chairman, Board of
Governors of the Federal Reserve System, before the Committee

578

Federal Reserve Bulletin • June 1993

so far as to propose a unilateral plan to pay interest
on reserves, which elicited strenuous congressional
opposition.13
The relative decline in the deposit base at member banks became particularly worrisome after
October 1979, when the Federal Reserve adopted a
reserves-based operating procedure designed to
maintain close, short-run control of Ml. The success of this procedure depended in part on how
tight the link was between reserves at member
banks and the level of Ml deposits in the entire
banking system—a link that was being weakened
by the continued decline in membership as well
as by some of the steps the Federal Reserve had
taken to try to reverse this decline, including
switching to LRR and instituting graduated reserve
requirements.

The Monetary Control Act and Ml Targeting
After years of debate, the Congress finally adopted
legislation to reform reserve requirement rules in
order to end the problem of membership attrition
and facilitate control of Ml. The Monetary Control
Act of 1980 (MCA) mandated universal reserve
requirements to be set by the Federal Reserve for
all depository institutions, regardless of their membership status. The act also vastly simplified the
graduated reserve requirement schedule, further
tightening the link between reserves and money.
Although the key focus was on transaction (Ml)
deposits, all of which were made subject to reserve
requirements, certain types of nontransaction
deposits also became subject to requirements,
which effectively broadened the reserve base and
required more depositories to hold reserve balances. In this way, the Federal Reserve's ability to
influence aggregate deposit levels by manipulating
the quantity of reserves was improved. The MCA
on Banking, Finance and Urban Affairs, U.S. House of Representatives, July 27, 1978," Federal Reserve Bulletin, vol. 64 (August
1978), pp. 636-42; and "Statement by Paul A. Volcker, Chairman,
Board of Governors of the Federal Reserve System, before the
Committee on Banking, Housing, and Urban Affairs, U.S. Senate,
February 4, 1980," Federal Reserve Bulletin, vol. 66 (February
1980), pp. 643^8.
13. For details on the Federal Reserve's proposal, see Federal
Reserve Bulletin, vol. 64 (July 1978), pp. 605-10. For congressional reaction, see "Monetary Control and the Membership
Problem." Hearings.




also granted the Federal Reserve authority to
impose a supplemental reserve requirement of up
to 4 percent on transaction accounts. Finally, as a
result of MCA, the number of depositories required
to report their deposits to the Federal Reserve
increased markedly, thus improving the accuracy
and timeliness of data necessary for monetary
control.
To ease the burden of reserve requirements, the
MCA initially set the basic reserve requirement on
transaction deposits at 12 percent—below the
16V4 percent maximum that had been in effect
for member banks—and prohibited the Federal
Reserve from raising this requirement above
14 percent. It also set a 3 percent reserve requirement on the first $25 million of deposits at each
institution—the so-called low reserve tranche—as
a special concession to smaller depositories.
In 1982, the Garn-St Germain Act went even
further by exempting from reserve requirements
altogether the first $2 million of deposits. The law
mandated annual adjustments to the cutoffs for the
exemption and the low reserve tranche based on
aggregate growth in reservable liabilities and transaction deposits respectively. To help smooth the
transition for nonmember banks and thrift institutions, a multiyear phase-in period was put in place,
and the Federal Reserve was also prohibited from
putting reserve requirements on personal time and
savings deposits, which were particularly important sources of funds for these institutions. Finally,
all institutions with reservable deposits, not just
member banks, now had access to the discount
window as well as to Federal Reserve services,
including check clearing, funds transfers, and the
like, though these services were no longer to be
provided free of charge.
The MCA did not specifically prohibit or authorize the payment of interest on required reserves,
although it mandated the payment of interest on
supplemental reserves should the Federal Reserve
ever impose them. The legislative history of the
MCA indicates that the Congress was concerned
about the possible adverse effects of the act on
Treasury revenues, so much so that the MCA even
prohibits the Federal Reserve from lowering the
reserve requirement to less than 8 percent on transaction deposits. The legislative history also indicates that the Congress was concerned that payment of interest on reserves would give the Federal

Reserve Requirements: History, Current Practice, and Potential Reform

Reserve, in its role as a provider of financial services, an unfair competitive advantage over depository institutions, which are prohibited from paying
interest on demand deposits. Appreciative of this
concern and aware of the distortions created by the
prohibition of interest payments on demand deposits, the Federal Reserve advocated removal of this
prohibition in conjunction with the payment of interest on reserves.14 Neither proposal was adopted,
however. Thus, the reserve tax on depositories and
their customers remained.
In 1982, the Federal Reserve took another step to
improve its short-run control of Ml by deciding to
switch to a contemporaneous reserve requirement
(CRR) scheme. By making the period in which
banks are required to maintain their reserves
against transaction deposits virtually contemporaneous with the period in which deposit levels are
computed for the purpose of determining reserve
requirements, this move tightened the real-time
link between reserves and Ml. 15 In so doing, it
remedied a weakness in the short-run monetary
control mechanism of the existing, reserves-based
operating procedure.

Reserve Requirements since the Abandonment
of Ml Targeting
Ironically, by the time CRR was instituted in 1984,
the Federal Reserve had shifted its focus away
from short-run control of Ml via a reserves-based
operating procedure, preferring instead to influence
monetary and credit conditions by adjusting the
cost and availability of reserves to depositories. It
also shifted its focus more toward M2, as this
aggregate was seen as more closely linked to the
ultimate objectives of monetary policy than Ml,
which had become overly sensitive to interest rates
after the authorization of nationwide NOW
accounts and the general deregulation of deposit
rates. Thus, the basic structure of reserve requirements, which had been meticulously designed to

14. See statement by J. Charles Partee, October 27, 1983.
15. Actually, banks were required to hold an average amount of
reserves over a two-week maintenance period ending every other
Wednesday, based on average deposit levels in a two-week computation period that ends on a Monday two days before the end of the
maintenance period.




579

facilitate the control of Ml through a reservesoriented targeting procedure, had seemingly
become an anachronism.
In fact, however, reserve requirements continued
to play an important role in the conduct of monetary policy, in part by providing a stable, predictable demand for aggregate reserves. Absent reserve
requirements, banks would still hold some balances
at the Federal Reserve to meet their clearing needs.
Given the size and volatility of the financial transactions that clear through these reserve accounts,
depositories need to maintain a cushion of balances
in these accounts to provide some protection
against uncertain debits that can potentially leave
their accounts overdrawn at the end of the day and
subject to stiff penalties.16 The exact amount of
balances that banks wish to hold for clearing purposes may vary considerably from day to day,
however, and cannot be forecast with much precision by the Federal Reserve. By making reserve
requirements the binding constraint on banks'
demand for reserves—that is, by keeping required
reserve balances above the uncertain level needed
for clearing purposes—the Federal Reserve can
more accurately determine the banking system's
demand for reserves. In this way, it can more
readily achieve any desired degree of pressure on
bank reserve positions and associated reserve
market conditions simply by manipulating the
maintenance-period-average supply of reserves.
By requiring banks to hold an average amount of
reserves over a two-week maintenance period
rather than a specific amount on each day, current
regulations allow considerable flexibility in daily
reserve management. Banks can use this flexibility
to arbitrage anticipated, intraperiod variations in
the cost of reserves (the federal funds rate), by
substituting reserves on one day of the period when
they are expected to be less costly for reserves on
another day when they are expected to be more
costly. This sort of intraperiod arbitrage serves to
reduce day-to-day fluctuations in the cost of
reserves. The lower the level of required reserve
balances, however, the less leeway a bank has for
manipulating the intraperiod profile of its reserve

16. At present, the penalty rate on overnight overdrafts is the
higher of 200 basis points above the federal funds rate on the day,
or 10 percent. In addition, banks have to offset overdrafts later in
the period to meet their reserve requirements.

580

Federal Reserve Bulletin • June 1993

4. Reserve and clearing balances, 1 9 8 0 - 8 9

5. Volume of funds transactions clearing through reserve
accounts, 1 9 8 0 - 9 0

1980

1982

1984

1986

1988

1990

Observations are annual averages of daily data.

Data are annual averages.

position without jeopardizing its overnight overdraft protection; hence, the bank will be less able to
arbitrage day-to-day variations in the federal funds
rate.
Banks that find their required reserve balances
insufficient to meet their clearing needs—that is, to
provide them with adequate overdraft protection—
are able, under the provisions of MCA, to open
clearing balances. Banks can contract with the Federal Reserve to hold an average amount of these
balances in their reserve accounts over the twoweek reserve maintenance period. If they fail to
hold the amount required under the contract, they
are penalized, much as would be the case if they
failed to hold sufficient balances to meet their
reserve requirements. Unlike required reserve balances, however, which do not earn interest, banks
receive earnings credits on the amount of clearing
balances they are required to hold under their contractual agreement. They can, in turn, use these
earnings credits to defray the costs of Federal
Reserve priced services. Thus, from a bank's perspective, opening a clearing balance is a virtually
costless way to boost the average balance it is
required to hold in its reserve account over the



maintenance period and hence to provide extra
insurance against overdrafts and added flexibility
to reserve management.
Not surprisingly, in the years immediately after
passage of MCA, as required reserve balances fell
as a result of the phased reductions in reserve
requirements for member banks (top panel of
chart 4), many of these institutions opened clearing
balances to help replenish their diminished protection against overdrafts. Indeed, by 1986, the banking system as a whole had contracted to hold
roughly $l 3 /4 billion of clearing balances (bottom
panel of chart 4). To a lesser extent, other banks,
particularly those using small amounts of priced
services from the Federal Reserve and those new to
managing reserve accounts, increased their holdings of excess reserves to help meet their clearing
needs. These changes, coupled with a rebound in
required reserve balances, provided banks with
more of a cushion to handle a sharp increase in the
volume of funds transactions clearing through their
reserve accounts (chart 5).

RECENT CUTS IN RESERVE REQUIREMENTS
In the decade after passage of the MCA in 1980,
the Federal Reserve left reserve requirements
essentially unchanged. More recently, however, it
has taken two steps to reduce these requirements.
In December 1990, the required reserve ratio on
nontransaction accounts—nonpersonal time and
savings deposits and net Eurocurrency liabilities—
was pared from 3 percent to zero, and in April

581

Reserve Requirements: History, Current Practice, and Potential Reform

1992, the 12 percent requirement on transaction
deposits was trimmed to 10 percent.

2.

Effect of recent cuts in reserve requirements
Effective
date of
cut

Rationale
These actions were motivated in part by developments in credit markets, where evidence had
emerged suggesting that some lenders had adopted
a more cautious approach to extending credit. This
caution was exerting a restraining effect on the cost
and availability of credit to some types of borrowers. By reducing depository funding costs and thus
providing depositories with easier access to capital
markets, the cuts in reserve requirements were
designed to put banks in a better position to extend
credit. In particular, the cut in the requirement on
nonpersonal time deposits was aimed directly at
spurring bank lending because these accounts are
often used as a marginal funding source. Of course,
it was recognized that some, if not all, of the
benefits stemming from the reserve requirement
cuts would likely be passed on, over time, to borrowers and lenders.17
The cuts in reserve requirements were also motivated by the Federal Reserve's recognition that
much of the early-1980s rationale for reserve
requirements had evaporated with the abandonment of a reserves-oriented operating procedure
geared to short-run control of Ml. At the same
time, it realized that reserve requirements still
played a vital role in policy implementation.
Indeed, it chose not to make even deeper cuts in
requirements for fear that required balances would
fall to levels insufficient to satisfy the normal clearing needs of the banking system.

Effects of Reserve Requirement Cuts on the
Size of the Reserve Tax
The elimination of the 3 percent reserve requirement on nontransaction accounts at the end of 1990
reduced the level of required reserve balances
roughly $11V^ billion, or about one-third (table 2).

17. For details on the rationales for the recent cuts in reserve
requirements, see Federal Reserve Bulletin, vol. 77 (February
1991), pp. 95-96; and Federal Reserve Bulletin, vol. 78 (April
1992), pp. 272-73.




December 1990
April 1992

Reduction in
required reserve
balances
(billions of
dollars)

Federal
funds
rate
(percent)

Reduction in
interest
forgone
(millions of
dollars)

W/2
m

7.0
4.0

800
350

Using the 7 percent federal funds rate that prevailed at the time as a proxy for the interest that
could have been earned on these balances, the cut
in reserve requirements translated into an increase
of about $800 million in the annual, pretax earnings of depositories and their customers.
As a result of this cut in reserve requirements,
about 2,500 depositories whose vault cash had
formerly been insufficient to meet their reserve
requirements were no longer bound to hold balances at the Federal Reserve. For these institutions,
therefore, the reduction in the nontransaction
requirement essentially eliminated the reserve tax.
Trimming the required reserve ratio on transaction
accounts in April 1992 relieved several hundred
additional institutions from having to hold balances
at the Federal Reserve. Overall, this second cut in
reserve requirements reduced the required reserve
balances of the entire banking system about
$8!/2 billion, resulting in annual pretax savings of
roughly $350 million for the private sector, given
the 4 percent federal funds rate that prevailed at the
time.

Effects on Bank Reserve Management
and Open Market Operations
In the immediate aftermath of the December 1990
cut in reserve requirements, the level of required
operating balances—the sum of required reserve
balances and the amount of clearing balances
required to be held under contractual arrangements
between depositories and the Federal Reserve—
plunged (chart 6). By early February 1991, these
balances reached a trough of about $18^4 billion—
barely more than half their level in the period
preceding the cut in requirements and nearly
40 percent below their seasonal low in early February 1990. Required operating balances typically
reach a low point at this time of the year because

582

Federal Reserve Bulletin • June 1993

6. Reserve balances, 1989-March 31, 1993
Maintenance period averages 1

1989

1990

1991

1992

1993

1. Reserve maintenance periods run for two weeks, so that there are twentysix periods each year. In this chart and in charts 7,8, and 9, there are twenty-six
observations for each full year.
2. Required operating balances are required reserve balances plus required
clearing balances.

required reserves fall from their end-of-year peak.
Also, owing to regulations stipulating that depositories apply their vault cash holdings from two
maintenance periods earlier in meeting their current reserve requirements, the enlarged holdings of
vault cash from year-end do not become available
for use in meeting reserve requirements until late
January and early February.

7. Reserve market volatility, 1988-March 31, 1993
Variance of daily effective federal funds rate

With required operating balances falling below
the levels needed by many depositories for daily
clearing purposes, the marginal dollar of reserve
demand often stemmed from clearing needs on the
day, rather than from a reserve requirement averaged over two weeks. As a result, banks had less
scope for manipulating their reserve positions from
one day to the next and, consequently, for arbitraging anticipated intraperiod variations in the cost of
reserves. Not surprisingly, a variety of measures of
federal funds rate volatility posted significant
increases (chart 7). At the same time, many depositories held levels of excess reserves that greatly
exceeded those seen in comparable periods of
recent years in order to restock their depleted overdraft protection (chart 8). Because the extent to
which banks wanted to boost their holdings of
excess reserves was unknown to the Federal
Reserve, it became more difficult to estimate the
demand for reserves and, thus, to conduct open
market operations.

Transition to a More Orderly Reserve Market
Over the next few months, reserve market conditions returned to normal, with both excess reserves
and the volatility of the funds rate falling back
more or less to levels seen before the cut in reserve
requirements. Although the reasons for the more
stable reserve market climate varied, the rapid
rebuilding of required operating balances was probably the most important. The higher level of balances provided banks with more adequate overdraft
protection and greater flexibility in managing their
reserve positions, thus reducing the need for excess

8. Excess reserves, 1989-March 31, 1993
Maintenance period averages

1988

1989

1990

1991

1992

1. Computed around the maintenance period average.




1993

Billions of dollars

Reserve Requirements: History, Current Practice, and Potential Reform

9. Required clearing balances, 1989-March 31, 1993
Maintenance period averages

Billions of dollars
Reserve
requirement cut

Reserve
requirement cut

4

—2
1989

1990

1991

1992

1993

balances and providing additional leeway for arbitrage in the funds market.
The pronounced rebound in required operating
balances over the remainder of 1991 owed in part
to a surge in required reserves stemming from
rapid growth in transaction deposits. Furthermore,
deliberate efforts by depositories to hold additional
balances also played a role in the faster-than-usual
increase in required operating balances. For example, banks used clearing balances much more after
the cut in reserve requirements (chart 9). Evidence
also suggests that some banks sought to economize
on their vault cash holdings to boost their required
reserve balances. In addition, depositories may
have learned to manage their reserve accounts more
efficiently, making use of improved, real-time
information on the status of their reserve balances
throughout the day to lower the cushion they
needed to hold as insurance against uncertain
debits that can result in overdrafts.

The Cut in the Transaction

Requirement

With the reserve market functioning reasonably
well again, the Federal Reserve believed that it
could safely lower reserve requirements once more.
As it turned out, the cut in the transaction requirement in April 1992 was relatively uneventful.
Although required operating balances initially
dropped sharply, the decline was not nearly as
precipitous as that seen in early 1991; not only was
this cut smaller in terms of its effect on required
reserve balances, it also came at a time of the year
when these balances tend to be high because of the
buildup of transaction deposits in anticipation of
the April 15 tax date. Moreover, required operating



583

balances quickly made up all their lost ground,
spurred by continued rapid growth in required
reserves and another surge in the use of clearing
balances. Indeed, these balances now total about
$6 billion, or more than three times their level
before the first cut in reserve requirements; they
now make up nearly 20 percent of required operating balances versus about 5 percent in late 1990.
The Federal Reserve also made several changes
in reserve accounting rules to help banks better
manage their accounts in a world of lower requirements and to aid the implementation of monetary
policy. First, to smooth the seasonal pattern in
required operating balances, the Federal Reserve
reduced the lag on the application of vault cash for
use in meeting reserve requirements from two
maintenance periods to one, effective in the period
beginning November 12, 1992. By more closely
synchronizing the movements in required reserves
and applied vault cash, this change was designed to
temper seasonal declines in required operating balances, particularly the most severe decline, which
occurs in late January and early February. To give
depositories greater flexibility in managing their
reserve positions from one period to the next, the
Federal Reserve also doubled the carryover privilege, which enables banks to carry forward into the
next maintenance period small reserve surpluses
and deficiencies.18
These changes, coupled with the rebound in
required operating balances, helped prevent the cut
in the transaction requirement from having adverse
effects on the functioning of the reserve market or
on the conduct of open market operations. In fact,
most measures of the volatility of the federal funds
rate are up only marginally relative to their levels
before December 1990, and aggregate excess
reserves are running only a shade higher than
before the cuts in reserve requirements. Some evidence suggests, however, that banks do have a bit
less flexibility in managing their reserve positions
from day to day; in particular, some systematic
patterns in the behavior of the federal funds rate
within reserve maintenance periods have intensified, suggesting that banks may not have as much

18. Since September 1992, depositories have been able to carry
forward one maintenance period the greater of 4 percent of required
reserve plus clearing balances, or $50,000; the carryover allowance
had previously been the greater of 2 percent, or $25,000.

584

Federal Reserve Bulletin • June 1993

scope to arbitrage in the funds market as they once
did.19
Concerned that additional declines in required
operating balances would complicate reserve management and the conduct of open market operations, the Federal Reserve has not made further
cuts in reserve requirements. Nevertheless, owing
to the cuts it did make as well as to declines in
short-term interest rates, the reserve tax has been
falling sharply in recent years (chart 1). Consequently, the marginal tax rate on transaction deposits has dipped to its lowest level in thirty years
(chart 2). Even so, this tax still represents a burden
on the private sector, and one that could rise significantly if interest rates were to increase. Cognizant
of the actual and prospective burden of the reserve
tax, depositories continue to work to fashion financial products aimed largely at exploiting loopholes
in reserve regulations.
POTENTIAL REFORMS TO THE
CURRENT SYSTEM

Several suggestions have been put forth over the
years for reforming the system of reserve requirements. In this section, I review some of these
proposals, drawing heavily on the lessons learned
from the recent cuts in reserve requirements as well
as from the experiences of other countries that have
lowered reserve requirements in recent years.
Eliminate Reserve

Requirements

Although this proposal would clearly eliminate the
reserve tax, recent experience suggests that it
would also engender a significant increase in volatility in the reserves market and seriously complicate the conduct of open market operations. Moreover, absent reserve requirements, the Federal
Reserve would be unable to reinstitute an effective,
19. Specifically, the federal funds rate has tended to be lower on
Fridays, when reserves count three times in the calculation of a
bank's period-average position; depositories are apparently more
reluctant to build up their reserve balances on these days for fear
that they will be unable to work them off later in the period without
jeopardizing their overdraft protection. On settlement days, by
contrast, the funds rate has tended to be higher, as banks move
more aggressively to meet their reserve requirements. The persistence of systematic, intraperiod patterns in the funds rate suggests
that arbitrage opportunities are not being fully exploited.




reserves-oriented targeting procedure to control
money growth if it ever deemed this action
appropriate.
Recent Trends in Other Countries
Several other countries have significantly reduced,
and in some cases essentially eliminated, reserve
requirements in recent years. In the United Kingdom and Switzerland, for example, reserve requirements no longer effectively constrain bank behavior. In these countries, most banks find that their
required reserves fall short of their daily clearing
needs, so that at the margin the latter essentially
determine their demand for reserves. More recently,
Canada has also begun to phase out reserve
requirements, and by 1994, their requirements will
be completely eliminated.
These countries have taken different steps, based
on their own unique institutional structures, to
facilitate bank reserve management and the conduct of open market operations in a world of nonbinding reserve requirements. The Bank of England
(BOE), for example, has adopted a more flexible
operating procedure, often intervening in the
money markets several times a day to fine tune the
cost and availability of reserves to meet everchanging clearing needs. In addition, banks in the
United Kingdom are usually willing to borrow
from the BOE late in the day to meet their clearing
needs. Banks in the United States, by contrast, have
become increasingly reluctant in recent years to
avail themselves of Federal Reserve discount window credit, in part out of concerns that doing so
might be interpreted by market participants as a
sign of financial weakness. Even so, the volatility
of overnight interest rates in the United Kingdom
has tended, on average, to be somewhat higher than
that in the United States, where reserve requirements are still binding for many institutions.
The Swiss National Bank (SNB) has adopted a
different approach than the BOE. Although it now
places somewhat greater emphasis on smoothing
short-term interest rates than it did in the past, it
has been much less accommodative in offsetting
temporary fluctuations in clearing needs than has
the BOE. As a result, Switzerland has experienced
greater volatility in overnight rates than the United
Kingdom, and Swiss banks have chosen to hold
substantial excess reserves, in part because over-

Reserve Requirements: History, Current Practice, and Potential Reform

night overdrafts are prohibited. At the same time,
however, the ability of Swiss banks to access SNB
credit at their own discretion, albeit at a penalty
rate, has likely served to temper reserve market
volatility somewhat.
Although the jury is still out on the full ramifications of Canada's elimination of reserve requirements, which is in the process of being phased in,
the Bank of Canada (BOC) feels that its financial
system is amenable to functioning smoothly in the
absence of reserve requirements. Specifically, Canada's system is highly concentrated, with a handful
of large depositories controlling the lion's share of
financial assets and handling the vast majority of
financial transactions. These "direct clearers" will
be required to clear all transactions through reserve
accounts at the BOC, and although they will have
no reserve requirements, they will be penalized if
their reserve accounts are overdrawn. Thus, a
demand for reserve liabilities at the central bank
will be preserved, thereby enabling the BOC to
implement monetary policy by manipulating the
supply of reserves relative to this demand. Because
the number of direct clearers is so small, moreover,
the BOC can readily gauge the demand for clearing
balances simply by keeping in close contact with
the relevant banks. Finally, the BOC is also able to
adjust the supply of reserves late in the day by
moving government deposits between accounts in
commercial banks and accounts at the BOC,
thereby helping to mitigate volatility in the reserves
market.
Other central banks, such as the Bundesbank and
the Bank of Japan (BOJ), which operate in financial environments more akin to those found in the
United States, have not eliminated reserve requirements. Echoing arguments made by the Federal
Reserve, both the Bundesbank and the BOJ believe
that reserve requirements are essential for providing the stable, predictable demand for reserves that
is needed for the conduct of open market operations and the prevention of undesirable money market volatility. Thus, although the Bundesbank has
pared reserve requirements in recent years, these
requirements are still binding for most German
banks.
Overall, based on the recent experience in the
United States and the experiences of other countries, it seems clear that the Federal Reserve would
have to alter its other tools of monetary policy




585

dramatically if it eliminated reserve requirements.
In particular, to preserve its ability to conduct open
market operations, it would have to ensure that
depositories still had a demand for reserve liabilities at the Federal Reserve. To this end, it would
likely have to require at least some depositories to
clear their financial transactions through the Federal Reserve and to continue to subject them to
penalties for overnight overdrafts. At the same
time, it would probably also have to do something
to make depositories less reluctant to use the discount window as a safety valve to defuse reserve
market pressures. Even so, volatility in the money
market is likely to rise significantly, and the Federal Reserve's ability to achieve desired reserve
market conditions might be undermined as a result
of the difficulty in gauging the banking system's
demand for reserves.
Pay Interest on Required Reserve
Balances—the Preferred Solution
Paying interest on reserves is a preferable alternative to eliminating reserve requirements. Specifically, if the Federal Reserve paid a market-based
rate of interest on required reserve balances, the
reserve tax would essentially be eliminated, as
would the distortional effects of this tax on resource
allocation. Households and businesses would not
face an artificially imposed incentive to redirect
credit flows away from depositories. Furthermore,
depositories would no longer have an incentive to
devote resources to new methods of reserve avoidance. If required reserve balances earned interest,
moreover, the Federal Reserve could even raise
reserve requirements if it wanted to provide banks
with greater flexibility in managing their reserve
positions, reduce volatility in the money markets,
and simplify the conduct of open market operations, without having to worry about imposing a
tax on the private sector.20
20. An alternative proposal would have the Federal Reserve
raise reserve requirements and pay interest only on the increased
balances depositories were required to hold. Though this plan
would not reduce Treasury revenue, it would also not do anything
to reduce the deleterious effects of the current reserve tax. For
details on this proposal, see Spence Hilton, Melissa Gerdts, and
Roxann Robinson, "Paying Interest on Reserves," in Federal
Reserve Bank of New York, Reduced Reserve Requirements: Alternatives for the Conduct of Monetary Policy and Reserve Management (New York: FRBNY, 1993).

586

Federal Reserve Bulletin • June 1993

10. Required reserve balances as a percentage of total
Federal Reserve liabilities, year-end, 1960-91

In the past, proposals to pay interest on required
reserve balances have encountered resistance
largely because they would reduce the earnings
remitted by the Federal Reserve to the Treasury.
Required reserve balances have been declining as a
share of total Federal Reserve liabilities for years,
however, and now make up only about 7 percent of
the total (chart 10). As a result of this decline,
which owes to reductions in reserve requirements
as well as to relatively rapid growth of currency in
circulation, the payment of interest on required
reserve balances would now engender a relatively
smaller reduction in the amount of Federal Reserve
earnings remitted to the Treasury than ever before.
In addition, it had often been argued in the past
that the reserve tax on the depository system and its
customers was more than offset by the governmentbacked deposit insurance program, which provided
a subsidized, implicit government guarantee that
conferred an advantage on depositories in their
competition with other financial intermediaries.
More recently, however, the price of this government guarantee has risen substantially. Not only
have deposit insurance premiums been raised
sharply, but capital requirements for depositories
have been increased, more stringent standards for
interbank lending have been imposed, and certain
restrictions on deposit pricing have resurfaced.
Taken together, these changes have served to
increase the costs of intermediation through the
depository system. Partly as a result of these
increased costs, the share of new credit flows intermediated through the depository system has fallen
dramatically in recent years. Although many of the
credits formerly booked by banks and thrift institutions have been picked up by other intermediaries




or have been channeled directly through the capital
markets, with little attendant effect on the cost or
availability of credit to most borrowers, some credits that are less easily substitutable, such as loans to
small and medium-sized businesses, may have been
curtailed, at least partly as a result of the increases
in depository intermediation costs. Thus, it may be
these borrowers who ultimately pay much of the
price of the higher, government-mandated costs on
depositories. Paying interest on required reserve
balances would be one way of offsetting some of
these higher costs.
APPENDIX: SUMMARY OF RESERVE
REQUIREMENTS SINCE 1913
The tables in this appendix summarize changes in
required reserve ratios since the inception of the
Federal Reserve System in 1913.
Three major structures of reserve requirements
have been used since 1913. The first two, which
preceded passage of the Monetary Control Act of
1980, applied reserve requirements only to banks
that were members of the Federal Reserve System.
The first structure was based on geographic distinctions among member banks (table A.l). From 1913
to 1962, reserve requirements of member banks
varied depending on whether the bank was located
in a central reserve city, a reserve city, or elsewhere. In 1962, the authority of the Federal
Reserve to classify or reclassify cities as central
reserve cities was terminated.
In 1966, the Federal Reserve moved toward the
next structure, involving graduated reserve requirements based on the level of deposits at each bank.
Each deposit interval shown in table A.2 represents
that part of the deposits of each bank that was
subject to the reserve requirement shown. For
example, in July 1966, the first $5 million of time
deposits at banks was subject to a 4 percent requirement; each additional dollar of time deposits was
reservable at 5 percent. By 1972, a full-fledged
graduated reserve requirement schedule was put in
place, without regard to reserve city or country
bank designations (table A.3).
Another change in reserve regulations involved
the definition of "net" demand deposits (tables A.l
and A.2). In 1935, net demand deposits were
defined as total demand deposits minus cash items
in the process of collection and demand balances

Reserve Requirements: History, Current Practice, and Potential Reform

A.l.

587

Reserve requirements based on geographic distinctions among member banks, 1 9 1 3 - 6 6
Percent of deposits
Net demand deposits
Effective date

Central reserve
city banks

Reserve city
banks

Country banks

Time deposits
(all classes of banks)

1913—December 23

18

15

12

5

1917—June 21

13

10

7

3

1936—August 16

19.5

15

10.5

4.5

1937—March 1

22.75

17.5

12.25

5.25

26

20

14

6

1938—April 16

22.75

17.5

12

5

1941—November 1

26

20

14

6

1942—August 20

24

26

22

16

7.5

24

21

15

7

20

14

6

20

13

6

12

5

6

May 1

September 14

22

October 3

20

1948—February 27
June 11
September 24, 16
1949—May 5, 1
June 30, July 1
August 1

22
24

f
1

August 11, 16

23.5

19.5

August 18

23

19

August 25

22.5

18.5

September 1

22

18

23

19

13

24

20

14

22

19

13

21

19

13

20

18

12

19.5

17.5

11.5

March 20, April 1

19

17

11

April 17

18.5

17

April 24

18

16.5

1951—January 11, 16
January 25, February 1
1953—July 9, 1
1954—June 24, 16
July 29, August 1
1958—February 27, March 1

1960—September 1

5

17.5

November 24

17.5

December 1

12

16.5

1962—July 28
October 25, November 1

T
i

In this table and in table A.2, when two dates appear on the same line, the
first applies to the change at central reserve city banks and the second applies
to the change at country banks.




The appendix continues on page 588.

4

588

Federal Reserve Bulletin • June 1993

due from other depositories. In 1969, reserves also
began to be required against net balances due from
domestic offices to their foreign branches.
From June 21, 1973, through December 11,
1974, under the structure of graduated reserve
requirements, member banks were subject to varying marginal reserve requirements against increases
in the following: (1) time deposits of $100,000 or
more; (2) funds obtained through issuance by any
affiliate of the bank of obligations subject to reserve
requirements on time deposits; and (3) funds from
sales of finance bills (table A.3). The requirements
applied only to balances above a specified base:
A.2.

They were not applicable to banks having aggregate obligations of these types of less than
$10 million.
Beginning November 2, 1978, a supplementary
reserve requirement of 2 percent was added to the
existing requirements on time deposits in excess of
$100,000 and for certain other liabilities. This supplementary requirement was eliminated with the
maintenance period beginning July 24, 1980. Also,
effective with the reserve computation period
beginning November 16, 1978, domestic deposits
of Edge corporations were subject to the same
reserve requirements as member banks.

Reserve requirements based on geographic distinctions among member banks and on the level of deposits,
1966-72
Percent of deposits
Time deposits
(all classes of banks)

Net demand deposits

B F TF . JP
CCFR
Country banks
(deposit intervals in
millions of dollars)

Reserve city banks
(deposit intervals in
millions of dollars)

Effective date

0-5
16.5

1966—July 14, 21
September 8, 11

More than 5

0-5

16.5

12

fel W w l ^ i l t l 1 E

M S

Other time
(deposit intervals in
millions of dollars)

Savings

0-5

12

More than 5

4

More than 5

5

4

4

4

1967—March 2

4

3.5

6

3.5

March 16
1968—January 11, 18 ...
1969—April 17

17

17.5

1970—October 1

17

17.5

A.3.

Jill

12.5

% "tlJf¥P|

13
13

5

A graduated reserve requirement schedule for member banks, 1 9 7 2 - 8 0
Percent of deposits
Time and savings deposits
Net demand deposits
(deposit intervals in millions of dollars)
Effective date

Time
(deposit intervals in millions of dollars)
0-5, by maturity

0-2

2-10

10100

10

1972—November 9

100400

30-179
days

180
days
to 4
years

4
years
or
more

More than 5, by maturity
30179
days

180
days
to 4
years

12

10

12

1973—July 19

10.5

12.5

1974—December 12

10.5

12.5

10

12

November 16

1975—February 13 .
October 30 ..
1976—January 8 ...
December 30




7.5

4
years
or
more

i I i

l l l

2.5

2.5

9.5

2.5

2.5

11.75

Reserve Requirements: History, Current Practice, and Potential Reform

A.4.

Reserve requirements since passage of the
Monetary Control Act of 1980
Percent
Effective date

Net
transaction
accounts

SELECTED

Nontransaction
accounts

1980—November 13 . . . .
1990—December 26

12

0

1992—April 2

10

0

Effective with the maintenance period beginning
October 25, 1979, a marginal reserve requirement
of 8 percent was added to managed liabilities in
excess of a base amount. These liabilities included
large time deposits, Eurodollar borrowings, repurchase agreements against U.S. government and
agency securities, and federal funds borrowings
from nonmember institutions. This marginal
requirement was raised to 10 percent on April 3,
1980, lowered to 5 percent on June 12, 1980, and
then eliminated altogether on July 24, 1980.
Since passage of the Monetary Control Act in
November 1980, after an initial phase-in period, all
depository institutions have been subject to reserve
requirements. Required reserve ratios are the same
for all depository institutions under the current
system and apply to transaction accounts and
nontransaction accounts (table A.4). Transaction
accounts include all deposits on 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. The reserve requirements on transaction accounts shown in table A.4
apply only to those accounts that exceed the
exemption and the low reserve tranche, the cutoffs
for which adjust each year according to a formula
provided by law. In 1993, for example, the first
$3.8 million of transaction accounts at each depository is exempt from reserve requirements and
the next $46.8 million is reservable at 3 percent.
Only deposits in excess of this low reserve tranche
are reservable at 10 percent. For the purposes of
reserve requirements, nontransaction accounts
include nonpersonal time and savings deposits that
are not transaction accounts and in which the beneficial interest is held by a depositor that is not a
natural person, as well as net borrowings by banks
in the United States from banks outside the country.




589

BIBLIOGRAPHY

Bank of Canada. "The Implementation of Monetary Policy in a System with Zero Reserve
Requirements," Discussion Paper 3. (September
1991).
Bernanke, Ben, and Frederic Miskin. "Central
Bank Behavior and the Strategy of Monetary
Policy: Observations from Six Industrial
Countries." Working Paper 4082, Cambridge,
Mass.: National Bureau of Economic Research,
1992.
Board of Governors of the Federal Reserve System. "The History of Reserve Requirements in
the United States," Federal Reserve Bulletin,
vol. 25 (November 1938), pp. 953-72.
Federal Reserve Bank of New York. "Reduced
Reserve Requirements: Alternatives for the Conduct of Monetary Policy and Reserve Management," Staff Study (April 1993).
Goodfriend, Marvin, and Monica Hargraves. "A
Historical Assessment of the Rationales and
Functions of Reserve Requirements," Federal
Reserve Bank of Richmond, Economic Review,
vol. 69 (March/April 1983), pp. 3-21.
Horrigan, Brian R. "Are Reserve Requirements
Relevant for Economic Stabilization?" Journal
of Monetary Economics, vol. 21 (January 1988),
pp. 97-105.
Kasman, Bruce. "A Comparison of Monetary Policy Operating Procedures in Six Industrial Countries," Federal Reserve Bank of New York,
Quarterly Review, vol. 17 (Summer 1992),
pp. 5-24.
Meulendyke, Ann-Marie. "Reserve Requirements
and the Discount Window in Recent Decades,"
Federal Reserve Bank of New York, Quarterly
Review, vol. 17 (Autumn 1992), pp. 2 5 ^ 3 .
Stevens, E.J. "Is there any Rationale for Reserve
Requirements?" Federal Reserve Bank of Cleveland, Economic Review, vol. 27 (Quarter 3
1991), pp. 2-17.
Weiner, Stuart E. "Payment of Interest on
Reserves," Federal Reserve Bank of Kansas
City, Economic Review, vol. 68 (January 1983),
pp. 16-31.
"The Changing Role of Reserve
Requirements in Monetary Policy," Federal
Reserve Bank of Kansas City, Economic Review,
vol. 77 (Fourth Quarter 1992), pp. 45-63.
•

590

Industrial Production, Capacity, and
Capacity Utilization since 1987
Richard D. Raddock, of the Board's Division of
Research and Statistics, prepared this article.
The Federal Reserve recently revised its index of
industrial production and the related measures of
capacity and utilization. Compared with the previous index, the revised index shows that manufacturing grew more slowly from 1987 until the onset
of recession late in 1990 and then recovered more
rapidly, albeit unevenly. According to the revised
numbers, from 1987 to 1992 the annual rate of
growth in industrial production averaged 1.3 percent, 0.4 percentage point less than was formerly
shown. From the first quarter of 1992 through the
first quarter of 1993, revised industrial output rose
at an annual rate of 4.4 percent to a new high.
Preliminary estimates show that industrial production changed little in March and April 1993.
The revised production and capacity indexes still
cover manufacturing, mining, and electric and gas
utilities and are still expressed as percentages of
output in 1987. They have, however, incorporated
new monthly and annual data—particularly output
estimates derived from the Annual Survey of Manufactures of the U.S. Bureau of the Census and
capacity utilization results from the Survey of Plant
Capacity, also of the Census Bureau. The incorporation of the new data has progressively lowered
the level of the revised industrial production index
relative to that of the previous one until 1990.
Whereas the previous index showed output peaking
in September 1990 at 110.6 percent of the level of
output in 1987, the revised index shows output
reaching a high of 107.1 in April 1989 and then
retreating a little until October 1989 (chart 1, top
panel). The subsequent rebound recouped nearly
all of the loss by the following summer. Then, as
did the previous index, the revised index shows a
cyclical contraction ensuing. From September 1990
to the following March, production dropped 4 percent to a low of 102.5, compared with the previous




index of 105 percent. By February 1993, industrial
output had reached 109.9 percent of its 1987
average—a new high, but 2.1 percentage points
below the unrevised level.
The Federal Reserve's index of industrial capacity was also revised downward. According to the
revision, the annual growth in capacity from 1987
to 1992 averaged only 1.7 percent, down from the
previous estimate of 2.3 percent. The rate of capacity growth has trended lower for many years; it
tends to be especially slow during and immediately
after recessionary periods, when plant closings
increase and capital spending drops.
As revised, capacity utilization, the ratio of output to capacity, was about the same for most of
1987-91 as it had been before the revision. It
peaked at 84.8 percent in March 1989 and fell to
a cyclical low of 78.3 percent two years later.
1. Revised and earlier industrial output, capacity,
and utilization

591

1.

Historical data for output, capacity, and capacity utilization for total industry, 1 9 8 6 - 9 2 1
Quarter
Year
1

2

3

4

Annual
avg.

Output (percent of 1987 output)
1986
1987
1988
1989
1990

96.1
96.5
103.2
106.6
105.5

95.5
97.9
103.4
106.2
106.1

94.6
98.2
103.4
107.1
106.4

94.8
98.8
104.3
107.1
105.7

94.7
99.4
104.0
106.7
106.5

94.3
100.3
104.0
106.4
106.7

94.8
100.6
104.6
105.3
106.5

94.9
100.9
105.2
105.8
106.8

95.0
100.7
104.7
105.4
106.8

95.6
102.1
105.0
105.0
106.3

96.3
102.2
105.6
105.4
105.0

96.8
102.8
106.3
106.1
104.5

95.4
97.5
103.3
106.6
106.0

94.6
99.5
104.1
106.7
106.3

94.9
100.8
104.8
105.5
106.7

96.2
102.3
105.6
105.5
105.3

95.3
100.0
104.4
106.0
106.0

1991
1992

104.4
104.5

103.2
105.3

102.5
105.6

102.6
106.3

103.3
106.7

104.4
106.0

104.5
106.8

104.6
106.6

105.3
106.2

105.1
107.5

105.0
108.4

104.7
108.9

103.3
105.1

103.4
106.3

104.8
106.5

104.9
108.3

104.1
106.5

Capacity (percent of 1987 output)
1986
1987
1988
1989
1990

119.2
121.6
124.0
125.8
128.2

119.4
121.8
124.1
126.0
128.4

119.6
122.0
124.3
126.2
128.6

119.8
122.2
124.4
126.4
128.8

120.0
122.4
124.6
126.6
129.0

120.2
122.6
124.7
126.8
129.2

120.4
122.8
124.9
127.0
129.4

120.6
123.0
125.0
127.2
129.6

120.8
123.2
125.2
127.4
129.8

121.0
123.4
125.3
127.6
129.9

121.2
123.6
125.5
127.8
130.1

121.4
123.8
125.6
128.0
130.3

119.4
121.8
124.1
126.0
128.4

120.0
122.4
124.6
126.6
129.0

120.6
123.0
125.0
127.2
129.6

121.2
123.6
125.5
127.8
130.1

120.3
122.7
124.8
126.9
129.3

1991
1992

130.5
132.5

130.7
132.7

130.8
132.9

131.0
133.1

131.2
133.2

131.4
133.4

131.5
133.6

131.7
133.7

131.9
133.9

132.0
134.1

132.2
134.2

132.4
134.4

130.7
132.7

131.2
133.2

131.7
133.7

132.2
134.2

131.4
133.5

Utilization (percent of capacity)
1986
1987
1988
1989
1990

80.6
79.3
83.2
84.8
82.3

79.9
80.3
83.3
84.3
82.6

79.1
80.5
83.2
84.8
82.8

79.1
80.8
83.8
84.7
82.1

78.9
81.2
83.5
84.3
82.5

78.4
81.8
83.4
83.9
82.6

78.7
81.9
83.8
82.9
82.3

78.7
82.0
84.2
83.2
82.4

78.7
81.8
83.6
82.7
82.3

79.1
82.7
83.8
82.3
81.8

79.4
82.7
84.2
82.4
80.7

79.8
83.1
84.6
82.8
80.2

79.9
80.1
83.2
84.6
82.6

78.8
81.3
83.6
84.3
82.4

78.7
81.9
83.9
82.9
82.4

79.4
82.8
84.2
82.5
80.9

79.2
81.5
83.7
83.6
82.1

1991
1992

80.0
78.8

78.9
79.3

78.3
79.5

78.3
79.9

78.8
80.1

79.5
79.5

79.5
80.0

79.4
79.7

79.9
79.3

79.6
80.2

79.4
80.8

79.1
81.0

79.1
79.2

78.8
79.8

79.6
79.7

79.4
80.7

79.2
79.8

1. Seasonally adjusted.

Neither the high nor the low reached the extreme
values of the two preceding business cycles. During 1992, utilization rose with production and
reached 81.4 percent in the first quarter of 1993,
0.5 percentage point below its 1967-92 average.
However, the more rapid recovery of revised production from the trough and the slower growth of
revised capacity led to an upward revision of utilization in 1992 and early 1993. For total industrial
production, capacity, and capacity utilization for
the period of the revision, see table 1.

DEVELOPMENTS BY MARKET GROUPS
Pronounced cyclical contractions and recoveries
have been most evident in the output of construction supplies and consumer durable goods, particularly automotive products (chart 2). From its high
in early 1989 to the trough in early 1991, output of
consumer durable goods fell about 20 percent.
After an uneven recovery, it regained its previous



high in early 1993. Because of the peaking of
building activity in 1986, production of construction supplies began to decline before the general
cyclical peak, (table 2). Today, despite the lowest
interest rates in nearly a quarter century, the recovery in output of construction supplies continues
to be constrained—at least in part—by the high
vacancy rates of rental housing and commercial
buildings. In contrast to these strong cyclical patterns, the output of nondurable consumer goods,
business supplies, and energy materials has fluctuated relatively little in recent years.
The production of total equipment grew about
3 percent a year on average from early 1987 to
early 1993, even though output of business vehicles and heavy machinery fell sharply in the recession and production of defense equipment has been
cut considerably since 1990. The recently ended
boom in commercial aircraft and the strong gains
in output of computers, communications equipment, and medical instruments boosted the business equipment group in the 1987-92 period. From

592

Federal Reserve Bulletin • June 1993

2. Industrial output by market groups
Ratio scale, 1987 output

Business supplies
Nondurable consumer goods

Durable consumer goods

Construction supplies

Business equipment
Energy materials
Total equipmi

Defense and space equipment
Durable and nondurable materials

early 1992 through early 1993, output of business
equipment soared at an annual rate of more than
12 percent (8 percent, if office and computing
equipment is excluded).
The production of industrial materials used to
manufacture durable and nondurable goods, which
in the past was more cyclical than that of other
industrial products, has, in recent years, roughly
paralleled the movements of final products (consumer goods and equipment) production.1 This parallel movement may reflect the tighter management
of stocks of materials that reduced overbuilding
and the need for cutting stocks. Swings in net
imports of some materials may have counterbalanced some of the swings in domestic demand.

industry. As a result, short movements and trends
in output, capacity, and utilization differ widely
among industries.

Manufacturing
For analytical purposes, the large and diverse manufacturing sector—85 percent of total industrial
production—is divided into two broad categories:
primary-processing industries, which produce
mainly materials and construction supplies, and
advanced-processing industries, which produce
mainly finished consumer or capital goods.

Primary-Processing Industries
DEVELOPMENTS BY SECTOR
Although industries within manufacturing, mining,
and utilities face similar cyclical forces, they are
also influenced by other factors, such as technology
and resource availability, that may be specific to an

1. The total products grouping includes consumer goods, equipment, and construction and business supplies.




Among these industries, the output of lumber,
stone, clay and glass, and primary and fabricated
metals industries declined relatively severely in
1990-91; output in each case remains below earlier
highs (table 3). From a high in January 1989, the
output index for primary processing dropped
10 percent to the trough. Although recovery has
been substantial since then and output of textiles,
paper, and industrial chemicals reached new highs

Industrial Production, Capacity, and Capacity Utilization since 1987

2.

593

Revised rates of growth in industrial production, by major market group, 1 9 8 7 - 9 2
Series

1988

1989

1990

1992

1991

1987-92

Average annual rate of growth (percent)
Total Index

4.4

1.5

.0

-1.8

2.3

1.3

Products
Final products
Consumer goods
Durable consumer goods
Automotive products
Home goods
Nondurable consumer goods

4.1
4.8
2.9
4.6
6.4
3.0
2.4

1.5
1.9
1.1
1.9
1.6
2.1
.8

-.1
.1
-.5
-4.1
-6.9
-1.5
.5

-2.3
-1.5
-.6
-6.9
-10.9
-3.6
1.2

2.4
2.8
2.3
7.7
10.7
5.3
.9

1.1
1.6
1.0
.5
-.1
1.0
1.2

Equipment
Business equipment
Industrial
Information processing
Transit
Other
Defense and space

7.6
10.7
10.3
11.3
12.8
7.2
-.3

3.1
4.4
3.6
2.5
12.5
2.5
.4

1.1
1.2
-1.2
3.5
1.2
-.5
-1.2

-2.8
-1.1
-5.9
2.1
4.1
-7.6
-7.2

3.5
6.5
2.1
11.7
2.5
3.6
-6.3

2.4
4.3
1.6
6.1
6.5
.9
-3.0

1.8
1.5
2.0

.2
-1.0
1.0

-.8
-2.4
.1

-4.6
-7.5
-2.7

1.1
3.4
-.3

-.5
-1.3
.0

5.0
6.8
4.4
2.2

1.6
1.6
2.6
.8

.1
-.7
.8
1.1

-1.2
-2.3
-.8
.4

2.3
3.5
3.6
-1.1

1.5
1.7
2.1
.7

Intermediate products
Construction supplies
Business supplies
Materials
Durable goods materials
Nondurable goods materials
Energy materials

Difference between revised and earlier growth rates (percentage points)
Total index

-1.0

-1.1

-1.0

.2

.8

-.4

Products
Final products
Consumer goods
Durable consumer goods
Automotive products
Home goods
Nondurable consumer goods

-1.2
-.8
-1.1
-.3
.5
-1.1
-1.3

-1.6
-1.4
-1.5
-1.0
.6
-2.4
-1.8

-1.5
-1.5
-1.1
-2.6
-2.6
-2.1
-.7

-.5
-.3
-.8
-3.2
-6.6
-.3
.0

1.0
1.4
-.4
2.2
1.7
2.3
-1.1

-.7
-.5
-1.0
-1.0
-1.4
-.7
-1.0

.0
-1.1
.5
-1.3
-1.6
-3.1
1.7

-1.3
-2.1
.0
-5.6
4.3
-3.1
1.0

-1.7
-2.1
-2.5
-1.0
-3.7
-2.2
-1.0

.0
.2
.4
-1.3
6.5
-3.5
-.8

3.8
4.0
7.4
4.4
-.9
3.2
2.6

.1
-.2
1.2
-1.0
.9
-1.8
.7

-2.6
-2.9
-2.4

-2.1
-2.6
-1.8

-1.6
-1.6
-1.8

-.6
1.2
-1.9

-.1
2.0
-1.3

-1.4
-.7
-1.8

-.6
-2.2
1.4
.4

-.1
-.8
.4
1.2

-.3
-.9
.1
.4

.9
1.9
-.7
.2

.5
.9
.0
-.1

.1
-.2
.2
.4

Equipment
Business equipment
Industrial
Information processing
Transit
Other
Defense and space
Intermediate products
Construction supplies
Business supplies
Materials
Durable goods materials
Nondurable goods materials
Energy materials

in 1992, growth in output in primary processing
industries averaged only 3A percent per year from
1987 to 1992. By early 1993, output had approximately recovered its peak (chart 3).
So far in the nineties, capacity growth has slowed
to an annual rate of only about 1 percent; the rate of
capacity utilization in primary processing, which
had peaked at 88 percent in early 1989, recovered
from its recessionary dive to a moderate rate of
84 percent in early 1993.



Capacity in some of these basic industries has
remained flat. The annual capability for raw steel
has stayed near 114 million tons, as older mills
have closed and new minimills have been built.
Aluminum mills have wrung some additional output of ingots from old potlines, but no new potlines
have been constructed. Cement clinker capacity
has contracted, and output and capacity in logging
camps and lumber mills have been constrained by
environmental regulation that reduced logging on

594

3.

Federal Reserve Bulletin • June 1993

Revised rates of growth in industrial production, by major industry group, 1 9 8 7 - 9 2
Average annual rate of growth (percent)
Series
1990

1991

1992

1987-92

1.5

.0

-1.8

23

L3

4.7

1.6

-.3

-2.2

3.1

1.3

Primary processing
Advanced processing

3.9
5.1

.9
2.0

-.6
-.2

-3.7
-1.6

3.7
3.6

.8
1.8

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

6.6
.1
.3
2.6

1.8
-.8
1.3
.0

-1.0
-2.3
-1.4
-2.1

-3.3
-6.8
-6.0
-7.7

4.1
6.4
5.2
3.7

1.6
-.7
-.2
-.8

8.7
12.7
12.6
3.1
4.2

-1.3
-1.3
-3.6
-1.4
-1.3

-.7
.2
1.0
-2.2
-3.2

-7.6
-9.8
-11.2
-4.2
-4.6

2.7
4.1
4.0
.7
1.8

.2
.9
.2
-.8
-.7

13.0
10.3
20.3
8.5

3.8
3.8
3.7
2.2

.2
-2.2
6.3
.4

-3.3
-6.3
3.5
1.3

9.8
3.5
22.6
6.2

4.5
1.6
11.0
3.7

Transportation equipment
Motor vehicles and parts
Autos and light trucks
Aerospace and miscellaneous
Instruments

5.2
5.7
4.6
4.7
3.6

4.3
1.2
3.3
7.1
1.0

-2.4
-5.6
-6.9
.4
.3

-4.8
-6.6
-8.8
-3.3
.4

.8
11.2
10.6
-7.6
-1.1

.5
1.0
.3
.1
.8

Miscellaneous manufactures

6.8

.4

-.3

-1.8

4.5

1.9

2.3
1.5
1.8
-1.4
-1.9
3.1

1.3
1.0
-1.1
1.7
-3.2
1.8

.6
1.2
.1
-3.2
-3.0
.6

-.8
1.5
-4.4
-.2
-.3
.6

1.8
.6
3.0
8.1
.5
1.9

1.0
1.2
-.2
.9
-1.6
1.6

.9
6.0
1.9
2.6
-.2

.2
3.1
.4
3.4
-.2

-.3
2.3
1.0
1.1
-3.6

-4.0
-.4
-1.7
-2.5
-8.5

-1.9
3.3
.4
5.0
5.3

-1.0
2.8
.4
1.9
-1.5

1.3
20.3
3.1
-.3
2.3

-1.3
16.8
3.7
-3.7
-1.3

2.0
9.0
4.9
.8
1.4

-1.5
2.4
-2.5
-.9
-8.1

-2.8
3.2
-3.6
-3.5
-.3

-.5
10.1
1.1
-1.5
-1.3

5.0
4.7
6.2

3.5
3.4
3.9

1.1
2.4
-3.3

2.1
1.8
3.0

-.2
-1.1
3.1

2.3
2.2
2.5

1988
Total index
Manufacturing

Primary metals
Iron and steel
Raw steel
Nonferrous
Fabricated metal products
Industrial and commercial machinery and compu
equipment
Excluding computer and office equipment ...
Computer and office equipment
Electrical machinery

Nondurable manufacturing
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing
Chemical and products
Petroleum products
Rubber and plastics products
Leather and products
Mining
Metal mining
Coal
Oil and gas extraction
Stone and earth minerals
Utilities
Electric
Gas

1989

4.4

millions of acres of federal timberland in the Pacific
Northwest (chart 4).

tion remains moderate, as capacity has expanded
with output (chart 5). The performance of individual industries in this sector has been quite disparate
in terms of cyclical volatility and growth.

Advanced-Processing Industries
These industries, which account for 70 percent of
manufacturing, have grown faster than the rest of
industrial production. In early 1992, they regained
their peak level; and in the first quarter of 1993,
output was 12 percent higher than it was in 1987—
up more than 2 percent per year. Even so, utiliza


Motor vehicles. Led by gains in the demand for
trucks, the motor vehicle industry began to recover
in 1992 from three years of declining output and
sales. In 1991, U.S. output of vehicles, which from
1985 to 1988 had averaged about 11 million units,
fell below 9 million units, the lowest level since
1982. Although large, this contraction was not as

Industrial Production, Capacity, and Capacity Utilization since 1987

3.

595

Revised rates of growth in industrial production, by major industry group, 1 9 8 7 - 9 2 — C o n t i n u e d
Difference between revised and earlier growth rates (percentage points)
Series
1988

Total index
Manufacturing

1989

1990

1991

1992

-1.0

-1.1

-1.0

.2

.8

-.4

1987-92

-1.1

-1.3

-1.3

.1

1.0

-.5

Primary processing
Advanced processing

-1.2
-1.1

-.3
-1.6

-.5
-1.6

.0
.0

.4
2.1

-.3
-.4

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

-1.0
-4.5
-3.3
-3.8

-1.3
.7
-.3
-1.5

-1.6
-.9
-2.0
.1

.8
.5
.4
2.4

2.8
1.7
4.1
2.3

-.1
-.5
-.3
-.1

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

-1.6
-1.1
.0
-2.3
-2.0

-.3
2.6
.0
-4.8
-2.2

.1
-.4
.0
.3
-2.0

.6
1.0
.0
.2
.6

-.9
-2.1
.0
.7
.4

-.4
.1
.0
-1.1
-1.0

-.8
-.6
-.8
2.0

-3.2
-.4
-9.6
-.6

-3.7
-3.6
-2.9
-1.3

-.9
-.7
-.3
2.5

6.7
6.4
8.9
4.6

-.4
.2
-1.1
1.4

Transportation equipment
Motor vehicles and parts
Autos and light trucks
Aerospace and miscellaneous
Instruments
Miscellaneous manufactures

.2
.2
-.3
.2
-6.5
-.4

2.2
1.8
3.2
2.5
-4.8
-6.8

-.8
2.1
1.1
-3.2
-.1
-4.1

1.7
.0
-1.3
3.1
-.8
-1.3

2.2
2.1
-1.5
1.9
-1.0
4.4

1.1
1.2
.2
.9
-2.6
-1.8

-1.3
-1.3
.4
-1.2
.2

-1.4
-1.6
.6
-.4
-5.2
1.5

-.7
-.8
1.1
-2.2
2.2
-1.5

-.9
6
-5.5
.1
2.4
.8

-1.2
-.8
-2.6
2.6
-1.1
.0

-1.1
-.8
-1.2
-.3
-1.1
.2

-2.7
.6
-1.5
-3.3
.2

-4.6
.2
-2.2
.6
-4.3

-3.4
.6
-1.0
-.1
-.1

-4.3
-.9
-1.1
-2.3
3.4

-2.8
-2.3
-.6
-1.5
8.5

-3.6
-.4
-1.3
-1.3
1.6

-.5
-2.4
-1.9
.3
-4.5

.0
1.6
3.0
.2
-7.9

-.1
.7
-2.2
.8
-3.5

.0
4.3
1.0
-1.2
1.4

-.5
-2.0
-.2
-.8
1.9

-.2
.5
.0
-.1
-2.4

.6
.1
2.3

1.0
.0
4.7

.3
-.1
2.3

.9
.0
4.4

.4
.0
1.4

.6
.0
3.0

Nondurable manufacturing
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing
Chemical and products
Petroleum products
Rubber and plastics products
Leather and products
Mining
Metal mining
Coal
Oil and gas extraction
Stone and earth minerals
Utilities
Electric
Gas

great as the contractions between 1973 and 1975
and between 1978 and 1982, partly because this
cycle had neither a curtailment in gasoline supplies
nor so extreme a peak in output. The drop in
production of motor vehicles and related parts and
materials from its high in January 1989 to the
trough accounted for about a third of the decline in
manufacturing.
Widely publicized plant closings by Chrysler,
Ford, and General Motors accompanied the downtrend in the production of automobiles. The Big
Three's auto assembly capacity in the United States
fell from more than 9Vi million units in 1986-87 to



less than 6V2 million units in the 1993 model year.
In contrast, reflecting the rising share of trucks in
overall vehicle sales, U.S. capacity to assemble
light trucks increased about a million units to
5XA million units over the same period. Domestic
producers shifted existing plants from autos to light
trucks, built new truck plants, and increased hours
of plant operation. Japanese auto producers continued to increase assembly capacity in the United
States; "transplant" assembly capacity (mainly for
autos) increased from about 1 million units in
1986-87 to more than 2 million units currently.
Altogether, U.S. assembly capacity for motor vehi-

596

Federal Reserve Bulletin • June 1993

3. Revised and earlier output, capacity, and utilization
in primary-processing industries

cles has declined about a million units since 1986—
87 to about 1316 million units. With the increases
in assembly capacity in Canada and Mexico, however, total North American assembly capacity has
increased and has been more than ample to meet
demand.
The revised output and capacity indexes, shown
in the middle panel of chart 6, are based largely on
the unit counts mentioned above (left panel); the
indexes also incorporate an upward adjustment of
about 3 percent per year resulting from gains in the
quality of vehicles—antilock brakes, airbags, more
efficient engines, more amenities, and so on. The
utilization rates for autos and trucks parallel the
4. Output and capacity in primary metals, cement, and lumber




physical output data and indicate that the rate of
capacity utilization, which had dropped from more
than 80 percent in the mid-1980s to less than
60 percent at the trough, recovered to about 80 percent early in 1993. The utilization of light truck
assembly capacity was much higher than that for
automobiles; the capacity utilization rate for
medium and heavy trucks also recovered strongly
with output.
Aerospace and miscellaneous transportation
equipment. Output of transportation equipment
aside from motor vehicles dropped 16 percent from
the end of 1990 to early 1993, to its lowest level in
seven years. Further curtailments in production
seem inevitable. Output of aircraft and parts, boats
and naval ships, and guided missiles is declining.
(The only real strength is in heavyweight motorcycles and mountain bicycles, along with casino
boats, ferries, and other smaller craft.) Sharp cutbacks in defense outlays have been the major drag;
but the production of commercial transport aircraft,
which doubled from 1987 to 1991, is also now
falling.
The boom in output of civil transport aircraft
peaked in late 1991, although orders had already
begun to decline. The boom was fueled by growing
demand for air travel. Airlines were hit, however,
by decreased air travel in 1991 in response to the
Persian Gulf War and recession, by excess capacity, and by substantial price competition in 1992.
New orders fell from more than 1,000 units in 1989
to an annual average of 243 units in 1991-92, and
backlogs dropped as many airlines cancelled orders
or delayed delivery past 1996 in response to record
financial losses in 1991 and 1992. Deliveries

Industrial Production, Capacity, and Capacity Utilization since 1987

5. Revised and earlier output, capacity, and utilization
in advanced-processing industries
Ratio scale, 1987 output = 100
—

—140

Earlier capacity
Earlier output

Revised capacity

•

Revised output
— 80
1

1

1

1

1

1

1

1

1

1

1

1

1
1 1
Percent of capacity

Earlier utilization

Revised utilization

1

1 1
1980

1

1

1

1 1
1985

1

gg

75

1

1

1 1
1990

1

1

peaked at about 160 planes a quarter in the first half
of 1992 but dropped to 110 in the first quarter of
1993. Airframe makers announced further production cuts for 1993 and 1994; much of the current
backlog is not scheduled to be delivered until the
last half of the decade. Shipments of complete
military aircraft have fallen from about 1,200 units
in 1987 to about 600 units in 1992 and 1993.
With the sharp cuts in production, employment
and capacity utilization in the aerospace and miscellaneous transportation industries have dropped
substantially. The utilization rate fell from 88 percent at its peak in the second quarter of 1989 to
70 percent in early 1993.

597

Machinery and instruments. The diverse industries that produce machinery, instruments, and parts
include fast growers like computers, semiconductors, communications equipment, and medical
instruments along with others that produced less at
their recent peaks than they had in the early 1980s.
The output of industrial and commercial machinery and computer equipment grew 4.5 percent per
year from 1987 to 1992;2 but the pace was less than
half that if office and computing machines are
excluded. Because of the phenomenal increase in
computers' performance per dollar, the index for
real production of computer and office equipment
has doubled since 1987. Much of the output gain
was registered during 1992 when the U.S. computer industry emerged from a prolonged downturn. In 1991, shipments in current dollars were
about 8 percent below their peak in 1988 and only
a few percentage points higher than they were in
1987; employment in the computer and office
equipment industry dropped 100,000 from its peak
in 1984 to 416,600 in 1991.
Excluding computers, output of nonelectrical
machinery, which dropped about a tenth from peak
to trough, recovered strongly in 1992 but remained
below its 1989 high. Makers of engines and of farm
and construction machinery produced substantially
less in 1992 than in 1980. In 1992, a rebound in
residential construction, increased public construction, and the end of a strike at a major producer
boosted sales of construction machinery. Nevertheless, because of weakness in commercial construction of office and apartment buildings and the low

2. Standard Industrial Classification (SIC) 35, formerly called
Nonelectrical Machinery.

6. Physical counts and Federal Reserve measures of output, capacity, and utilization for autos and light trucks
Ratio scale, millions

Ratio scale, 1987 output = 100

Ratio scale, percent

FR capacity index
Physical capacity

Physical output

I
1980

1985




1990

Li
1980

I I I I I I I I I I I II
1985

1990

1980

1985

1990

598

Federal Reserve Bulletin • June 1993

level of industrial plant expansion, the level of
output of construction and mining equipment
remains near the weak 1987 level, far below earlier
peaks. Although recovering somewhat late in 1992,
output of farm equipment also remains below earlier peaks. Fewer farmers, declines in net farm
income and the real purchasing power of farm
equity, productivity gains, and conservation tillage
(which requires fewer trips and reduces wear on
the tractor) have reduced the sales of farm
equipment.
The production of electrical machinery, which
had flattened in 1989-90, advanced sharply from
the trough to new highs. Bolstered by gains in
semiconductors and communications equipment,
output increased at a 33/4-percent annual rate from
1987 to 1992. With a double-digit gain in 1992, the
production index for semiconductors and related
components has risen more than 50 percent since
1987, whereas prices of semiconductors have
drifted down. This strong growth is related to the
increasing use of semiconductors and related
devices in computers, communications equipment,
and various recovering industries such as motor
vehicles.
The output of communications equipment, which
eased a bit in the recession, rose sharply in 1992 to
a level more than 25 percent higher than that in
1987. One source of the strength is the robust
growth of the cellular radiotelephone system and of
fiber optics. During 1992, cellular service became
available in each U.S. market block, and the number of new cellular subscribers increased more than
200,000 per month to about 10 million by the end
of the year. Net exports of radio and television
communications equipment have risen substantially in recent years.
Other components of electrical machinery exhibited less robust growth. The output of appliances
and television sets and of electric motors and generators and related parts dropped sharply in the
recession and exhibited moderate growth through
1992. In the first quarter of 1993, output of appliances and television sets rose to 121 percent of
1987 output. However, the output of lighting and
wiring products, storage batteries, and transformers
and switchgear was lower at the end of 1992 than it
was in 1987.
In contrast to the cyclical fluctuations of motor
vehicles, some machinery, and miscellaneous man-




ufactures, the output of instruments has been relatively flat since 1988. The medical instrument business has been the only strong sector; the output of
guidance and navigation equipment has fallen substantially with the decline in defense spending. The
rate of capacity utilization for the overall instruments industry is low.
As in the case of instruments, the industrial
production index for manufactured nondurable
goods has in recent years exhibited a muted cycle
and a slow rate of growth. Among advanced processors, the output of foods grew only about
PA percent per year from 1987 through 1992—
about half as fast as in the preceding five years.
Changing tastes and lifestyles and reduced family
size have shifted production from beef, liquor,
whole milk, and large cakes and pies to poultry,
beer, skim milk, frozen yogurt, and frozen convenience foods. The production of tobacco products
has been trendless for a decade. In contrast, the
output of finished chemicals grew more rapidly;
this growth was led by drugs and medicines, which
advanced a third from 1987 to early 1993.
The industrial production indexes for printing
and publishing, paints, apparel, and leather goods,
however, were lower in early 1993 than in 1987. A
continued uptrend in imports of apparel and leather
goods contributed to that decline. The output of
printed products was reduced in the early 1990s
partly because of a decline in advertising revenues
during the recession, which also restrained demand
for business publications and forms. A drop-off in
corporate takeover activity led to less financial
printing. Declines in tax revenues cut school and
library budgets for educational materials. Newspaper industry receipts in 1992 declined for the
fifth year as newspapers' share of total media
advertising and the circulation of daily newspapers
shrank further.

Mining
From 1987 to mid-1991, mining production, as a
whole, changed relatively little, but afterward it
declined a few percentage points. The easing was
due partly to weak demand for coal, stone, and
earth minerals but mainly to the renewed decline in
crude oil production and the low rate of oil and gas
well drilling that developed as the price of oil

Industrial Production, Capacity, and Capacity Utilization since 1987

retreated after the defeat of Iraq. The estimated
index of mining capacity declined as well. Capacity utilization edged down in 1992 and stayed
within the 85-90 percent range of recent years
(chart 7).
Mining of metal ores increased sharply from the
depressed levels of the mid-1980s. New technology and new mines contributed to the doubling of
production of gold and zinc ores since 1987;
upgraded domestic facilities and disruptions in foreign supplies helped raise output of copper ore in
the United States by 40 percent.
Production of energy by mines, refineries, and
utilities, representing about 15 percent of industrial
production, has been sluggish for the past twenty
years. A key factor has been the long-term downtrend in the production of crude oil and natural gas,
which has dropped more than 20 percent since
1973. This decline has offset much of the gain in
coal mining and nuclear generation of electricity.
After a slight rise in 1991 related to the spurt in
oil prices during the Persian Gulf crisis, production
of domestic crude oil resumed its decline. From
early 1991 to early 1993, it fell 500,000 barrels per
day to 7 million barrels per day—the lowest level
since 1960. Since 1988, when Alaskan output
peaked, the daily rate of production has dropped a
7. Revised and earlier output, capacity, and utilization
in mining




Ratio scale, 1987 output = 100

Earlier capacity—120
Revised capacity
Earlier output

—110

Revised output
Percent of capacity

Earlier utilization

599

million barrels. For more than twenty years, output
in the lower forty-eight states has been trending
down—dropping from 9.4 million barrels per day
in 1970 to 5.4 million in 1992. With the aging of
011 fields, oil well productivity has fallen to about
12 barrels per day per well from about 13.5 barrels
in 1987-88 and more than 18 barrels in the early
1970s.
Moderate prices of crude oil and environmental
restrictions in some areas have depressed drilling
activity in the United States. Drilling for oil and
gas in terms of either footage or well completions
has fallen to less than a third of its peak level in the
early 1980s. The number of active or available
rotary drilling rigs has also been shrinking.
In contrast to that of crude oil, the output of
natural gas, which also declined through 1986,
has recovered; and, despite some weather-related
weakness since the recession, coal has trended up.
The gains in coal mining have been primarily west
of the Mississippi.
Refinery production, which had recovered from
its lows in the early 1980s, has been basically flat
since 1988. Total refinery production of motor gasoline had fallen to 6.3 million barrels in 1982-83
because of the high price of oil and recovered to
6.8 million barrels in 1986-87, when the price of
oil fell. From 1988 to 1992, it stayed at 7 million
barrels per day, about the same as in the late 1970s.
Distillate fuel oil has equalled nearly 3 million
barrels per day in the past few years, below the rate
in the late 1970s but up from that in the mid-1980s.
In 1992, refinery capacity shrank. More stringent
requirements mandated by the Clean Air Act
Amendments of 1990 for summer gasoline vapor
pressure and oxygenated gasoline, as well as the
upcoming reduction in allowable sulfur content
of diesel fuels, necessitated the upgrading of existing refineries. Several idle marginal refineries
permanently closed. The Department of Energy
reports that, at the start of 1993, operable crude
distillation capacity dropped to 15.1 million barrels
per day, down about 500,000 barrels per day from
its average level during 1985-92. Input to crude oil
distillation units rose so that utilization increased

from 86 percent in 1991to88 percent in 1992. this
Revised utilization

rate is moderate for refining; it is well above the
low rates of the early 1980s, when the high price of
oil cut demand, but below the rates in the decade
before the Arab oil embargo.

600

Federal Reserve Bulletin • June 1993

demand is expected to reduce the margin of excess
capacity a few percentage points.

Utilities
From 1986 to 1989, production by electric and gas
utilities increased 13 percent; it was spurred by
relatively low energy prices and a temporary
surplus of deliverable natural gas that caused a
rebound in consumption, particularly industrial
consumption, of natural gas from its 1986 low. The
growth in sales by electric and gas utilities slowed
in 1990-92 because of episodes of mild weather
and economic weakness. Cool weather caused the
generation of electricity to decline in the summer
of 1992, but stronger industrial demand for power
and a return of more normal weather boosted utility
sales in late 1992 and early 1993 (chart 8).
The growth of capacity at utilities in the past few
years has kept up with the slow growth of output so
that the rate of capacity utilization has changed
little. However, the utilization rate is projected to
rise. According to the North American Electric
Reliability Council, the nation's utilities intend to
increase generating capacity at an annual rate of
about IVi percent between 1992 and 2001, compared with a projected annual growth in summer
peak demand of l4/s percent. The more rapid rise in

8. Revised and earlier output, capacity, and utilization
in utilities
Ratio scale. 1987 output = 100

Revised capacity
—

_ ^^
_

Earlier capacity— 120

Percent of capacity

Revised utilization

1980




1985

1990

SIZE OF THE REVISION
The downward revision in industrial production
was centered in manufacturing, especially in nondurable goods industries other than textiles, paper,
and leather goods. The growth of nondurables from
1987 through 1992 was cut in half, to 1 percent per
year (table 3). Especially large downward revisions
were made to printing and publishing and to paving
and roofing materials (part of petroleum products);
output in these industries as well as in apparel and
leather products was lower in 1992 than it had been
in 1987. The output indexes show foods, tobacco
products, apparel, and rubber and plastics products
growing more slowly than they were previously
shown to grow.
In durable manufacturing, several downward
revisions, especially to fabricated metal products,
instruments, and miscellaneous manufactures, were
largely offset by upward revisions to electrical
machinery and transportation equipment. For durable manufacturing, the greater rebound from the
trough shown by the revised index offset the lower
levels in 1989 to 1991, so that by the end of 1992
the revised index exceeded the earlier figures.
For mining, particularly for coal, oil, and gas, the
overall 1987-92 revision in output was small. For
most series, monthly physical output figures, supplied by the Bureau of Mines or the Department of
Energy, were adjusted to more complete annual
data from the same sources. This process typically
affected specific year-to-year movements rather
than the overall 1987-92 rate of growth. In the case
of stone and earth minerals, however, monthly output was estimated largely on the basis of kilowatt
hours purchased by that industry. These estimates
were revised substantially downward to match the
annual physical product figures provided by the
Bureau of Mines.
The output index for utilities was revised upward
because of a correction to the measurement of gas
transmission (the output of electric utilities was
revised only slightly). Previously the sales of gas
by major pipeline companies were used to measure
monthly transmissions. However, most interstate
pipeline companies have become open-access

Industrial Production, Capacity, and Capacity Utilization since 1987

transporters and, since 1987, have increasingly
transported gas owned by others. As a result, sales
of gas owned by pipelines fell far below transmissions. In this revision, pipeline sales were replaced
by cubic feet of natural gas delivered to consumers.
Whereas before the revision a slight decline was
shown, the new series shows that gas transmission
has not been falling; from 1987 to 1992, output of
gas utilities including transmission grew at an
annual rate of 2.5 percent.

REVISIONS TO CAPACITY
The growth of industrial capacity from the end of
1986 to the end of 1992 averaged 1.7 percent per
year, 0.6 percentage point lower than the rate
shown before the revisions (table 4). In manufacturing, large downward revisions to output and
capacity indexes are evident in printing and publishing, instruments, and miscellaneous manufactures. As explained below, the downward revisions
in capacity growth reflect not only new data on
capacity and utilization but also the downward
revisions in the industrial production indexes.
The revised capacity indexes are derived from
(1) the survey by the U.S. Bureau of the Census of
utilization rates in manufacturing establishments
for the fourth quarter of years through 1990,
(2) output and capacity data in physical units from
various sources through 1992, and (3) estimates of
capital stock derived through the perpetual inventory method from investment spending by industry.3 Investment spending comes from the Annual
Survey of Manufactures (ASM) through 1991 and
from the Census Bureau's quarterly survey of plant
and equipment expenditures after 1991.
The Federal Reserve indexes of sustainable
annual capacity are designed specifically to accompany the indexes of production and are also
expressed as percentages of production in 1987. A
basic step in estimating annual levels of the capac-

3. A methodology of the capacity and utilization measures is
found in Richard D. Raddock, "Recent Developments in Industrial
Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June
1990), pp. 411-35, especially pp. 424ff. One of the key sources is
the U.S. Bureau of the Census: "Survey of Plant Capacity," Current
Industrial Report MQ-C1, for various years. This survey provides
utilization rates, not capacity estimates, for manufacturing establishments at the four-digit SIC level.




601

ity index is dividing an industrial production (IP)
index by a utilization rate provided by an outside
survey (Us), that is, implied capacity = IP/Us. Thus,
if in 1987, IP = 100, and Us = 80 percent, then
implied capacity = 100/0.8 = 125. For the most
part, utilization rates from surveys are revised only
slightly, if at all. Thus, the Federal Reserve capacity indexes are typically revised with industrial
production indexes, and the Federal Reserve rates
of utilization change relatively little on average in a
revision (table 5). The sharper increase in 1992 in
the revised industrial production indexes, however,
has raised utilization above its unrevised level in
the fourth quarter of 1992.
This revision was conducted at the end of a very
sluggish period. Given the lack of direct capacity
measures, the capacity indexes are often inferred
indirectly. Making such inferences when output
growth has been particularly slow and utilization
rates are relatively low has the danger of yielding
underestimates of capacity and its growth. Yet, an
alternative measure of capacity utilization reported
by the National Association of Purchasing Management, Inc., currently shows higher rates of utilization in manufacturing and, implicitly, a lower index
of capacity.

TECHNICAL ASPECTS OF THE REVISION
In some respects, the revised production indexes
look much the same as before. Most noticeably, the
1987 weight and comparison base has been maintained, and the structure of the major market and
industry groups has remained basically the same.
However, the updating of monthly data and the
introduction of comprehensive annual data from
the ASM have significantly affected the level and
the movement of the indexes.
Many smaller changes were also made in the
revision. The structure was modified to conform to
the 1987 Standard Industrial Classification (SIC).
Some sources of data were lost, and so some series
based on those sources were dropped or combined
with other series. However, the introduction of new
series increased the number of individual series to
255. Monthly indicators for other series also
changed. For example, some series that had been
based on an industry's monthly purchases of electricity (kilowatt hours) became based on monthly

602

4.

Federal Reserve Bulletin • June 1993

Compound annual rates of growth in end-of-year capacity, by major industry group, 1966-92
Percent
Item
Total Industry

1986-92

Difference between revised
and earlier rates for 1986-92

1966-92

1966-74

1974-82

1982-86

2.8

3.9

2.9

2.4

1.7

-.6

3.2

4.1

3.3

3.2

2.1

-.7

Primary processing
Advanced processing

2.1
3.8

4.2
4.1

1.6
4.2

.4
4.5

1.3
2.4

-.5
-.7

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

3.5
1.7
3.1
1.3

3.8
3.1
4.9
2.5

3.8
.8
2.6
1.4

4.0
2.4
2.1
.6

2.2
.5
2.0
.1

-.4
-2.0
-.4
-.7

-.1
-.9
-1.1
1.3
-.4
1.4

1.8
.7
.2
3.8
1.2
5.6

.2
-.1
.0
.7
-.7
1.5

-3.8
-5.9
-6.0
-.3
-3.6
-5.6

-.5
-.7
-1.0
-.1
.0
.8

-.2
.1
-.3
-.6
-2.0
.2

Manufacturing

Primary metals
Iron and steel
Raw steel
Nonferrous
Primary copper
Primary aluminum
Fabricated metal products
Industrial and commercial machinery
and computer equipment
Electrical machinery

1.6

3.2

1.7

.1

.4

-.6

6.4
5.2

4.7
6.4

8.8
5.4

9.3
4.8

3.4
3.7

-.5
.1

Transportation equipment

2.7

3.0

2.0

3.5

2.7

.6

Motor vehicles and parts1
Autos and light trucks
Aerospace and miscellaneous
Instruments
Miscellaneous

3.2

4.6

1.8

2.i
5.4
2.1

i.3
7.8
4.9

i.i
5.6
.9

2.5
5.7
4.2
4.9
.0

3.7
1.8
1.8
2.4
1.6

2.1
.1
-.8
-2.7
-.7

Nondurable
Foods
Textile mill products
Apparel products
Paper and products
Pulp and paper
Printing and publishing

2.9
2.5
2.0
1.3
2.7
2.4
3.2

4.5
3.0
4.7
2.6
4.1
3.3
3.1

2.5
3.0
.8
1.0
1.9
1.5
3.4

2.1
2.2
.3
1.7
2.2
2.1
4.5

1.9
1.4
1.1
-.2
2.4
2.7
2.1

-1.1
-1.1
-.5
-2.0
.1
-.1
-3.1

Chemicals and products
Plastics materials
Synthetic fibers

3.9
7.0
4.4

7.1
13.4
9.9

2.9
5.0
2.8

1.1
2.3
-.7

3.0
4.6
3.2

-.3
-3.2
2.4

1.6
5.5
-3.2

4.5
9.2
-1.2

1.8
3.6
-3.8

-1.2
5.6
-5.6

-.4
3.2
-3.1

-.8
-.7
-.4

Mining
Metal mining
Coal
Oil and gas extraction
Oil and gas well drilling
Stone and earth minerals

.0
1.4
2.6
-.6
.7
.9

-.3
.5
2.4
-1.2
-.8
2.7

2.2
1.0
3.6
2.5
17.4
.2

-.2
-2.0
2.0
-.3
-5.1
-.1

-2.2
5.5
1.8
-3.9
-12.8
.2

-.4
-1.0
-.4
.0
-.3
-3.3

Utilities
Electric
Gas

3.1
4.2
.3

6.3
8.2
2.6

2.1
3.3
-1.0

1.0
1.8
-1.5

1.5
2.0
.2

.2
.2
.0

Petroleum products
Rubber and plastics products
Leather and products

1. Series began in 1977.

production-worker hours. Seasonal factors were
recalculated.4
Typically, either monthly output or monthly
input data are used to estimate individual production indexes. Monthly output or shipments in
physical units from many private or government
4. A table "Industry structure and series composition of industrial production: classification, value added weight, and descrip-




sources are the basis for 123 series that represent
36 percent of the total index. Input data constitute
74 production-worker-hour series (34 percent of
tion of series" is available with a diskette of historical data of
industrial production, capacity, and capacity utilization from Publication Services, Board of Governors of the Federal Reserve System, Washington, DC 20551. A typed structure table may be
obtained from the Industrial Output Section, Division of Research
and Statistics.

Industrial Production, Capacity, and Capacity Utilization since 1987

5.

603

Revised and earlier capacity utilization rates, by major industry group, 1 9 8 7 - 9 2 1
Percent of capacity, seasonally adjusted
Revised
Item

Earlier

1987-92
average

1988-89
high

1990-91
low

1992:Q4

1987-92
average

1988-89
high

1990-91
low

1992:Q4

Total industry

81.7

84.8

78.3

80.7

81.8

85.0

78.4

79J

Manufacturing

81.0

85.1

76.6

79.6

81.3

85.1

77.2

78.2

Primary processing
Advanced processing

84.1
79.8

89.1
83.3

77.9
76.1

82.7
78.3

84.4
80.0

89.0
83.6

77.9
76.6

82.2
76.6

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

78.7
86.7
80.9
79.0

83.9
93.3
86.8
83.7

73.8
76.8
71.7
71.0

77.7
87.6
79.8
77.7

79.3
83.1
82.8
79.3

84.0
91.2
88.3
86.4

74.8
72.9
74.5
70.8

75.6
80.1
76.0
74.6

Primary metals
Iron and steel
Raw steel
Nonferrous
Primary copper
Primary aluminum

82.5
81.5
81.8
83.9
79.4
95.8

92.9
95.7
92.7
88.9
85.9
100.4

74.3
72.3
71.2
75.9
73.6
97.3

81.2
80.8
81.2
81.8
87.1
97.8

82.9
80.8
80.7
86.3
81.9
97.2

91.6
92.0
94.1
95.0
97.9
103.5

73.6
68.7
67.1
81.1
68.8
97.7

82.5
82.2
78.6
83.0
89.6
99.3

Fabricated metal products
Industrial and commercial machinery
and computer equipment
Electrical machinery

77.2

82.0

71.7

75.1

79.5

85.1

73.9

76.9

77.9
80.4

83.7
84.9

73.0
76.8

81.7
81.2

78.3
79.2

83.5
83.1

74.7
75.1

78.5
74.9

Transportation equipment
Motor vehicles and parts
Autos and light trucks
Aerospace and miscellaneous
Instruments
Miscellaneous

76.6
72.3
73.4
81.0
77.9
77.0

84.2
84.5
89.6
88.3
81.2
80.1

70.1
57.9
53.6
78.1
75.1
72.9

72.0
72.1
74.9
72.0
73.2
77.3

77.2
75.0
71.2
79.2
78.4
81.4

84.6
85.5
83.6
86.2
83.9
85.5

70.1
58.1
47.4
72.3
74.8
80.4

70.1
75.3
73.8
65.5
71.1
80.2

84.1
81.7
87.8
80.2
91.1
93.7
85.2

86.8
83.3
92.1
84.2
94.9
98.1
92.3

80.4
80.8
78.7
74.6
86.0
90.2
78.4

82.1
81.1
90.1
78.6
88.4
91.0
77.2

84.0
81.0
88.1
79.3
91.4
93.3
85.6

86.7
83.0
91.2
84.2
95.8
97.7
90.4

80.3
79.7
80.2
71.5
86.5
87.2
81.2

81.9
79.4
89.1
73.9
88.8
91.8
78.3

82.2
89.5
89.8
86.0
85.2
79.9

85.9
97.0
99.7
88.5
90.5
83.8

78.5
75.5
77.3
84.2
78.5
75.4

81.4
82.8
86.8
89.7
82.3
85.4

81.8
90.7
86.3
87.3
86.5
79.4

86.8
98.9
94.5
90.3
90.4
88.4

77.9
79.0
72.5
86.2
79.0
71.4

81.7
82.0
83.0
90.7
85.0
75.1

Mining
Metal mining
Coal
Oil and gas extraction
Oil and gas well drilling
Stone and earth minerals

85.8
81.4
86.7
86.3
54.0
83.9

87.0
87.5
91.4
86.9
60.7
90.0

86.8
79.5
83.1
87.8
54.0
77.6

87.4
87.3
81.6
90.0
65.0
79.5

85.7
78.0
86.7
86.5
53.5
85.2

87.2
87.2
94.4
86.6
58.8
94.3

86.2
73.6
81.6
86.2
51.2
76.1

86.2
79.1
80.2
90.6
62.0
73.5

Utilities
Electric
Gas

85.0
88.2
74.6

92.6
94.8
85.5

83.4
87.4
68.3

87.1
89.0
80.7

84.3
89.1
69.4

92.3
96.2
80.3

81.6
87.0
62.3

86.2
91.1
70.2

Nondurable
Foods
Textile mill products
Apparel products
Paper and products
Pulp and paper
Printing and publishing
Chemicals and products
Plastics materials
Synthetic fibers
Petroleum products
Rubber and plastics products
Leather and products

1. The "high" columns refer to periods in which utilization generally
peaked; the "low" columns refer to recession years in which utilization

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

the total index) and 40 kilowatt-hour series (27 percent). Each of these types of monthly data has been
updated or revised.
Quarterly production data in physical units have
been introduced to maintain the representation of
physical measures even though the Census Bureau
and other sources have discontinued the monthly
publication of some of these data. The quarterly
production data are the basis for sixteen series that

represent 2 percent of the total industrial production index. A cubic spline generally is used to
interpolate monthly values from the quarterly
figures.
Revised Federal Reserve indexes of electric
power use by industry from 1986 were published in
February 1993 and are incorporated in the new
industrial production indexes for monthly components based on the use of electricity. The Federal




604

Federal Reserve Bulletin • June 1993

Reserve Banks conduct a voluntary monthly survey
of electric utilities, which report sales to industries
classified by SIC codes; the respondents also
include some industrial cogenerators. The revision
reflects conversion of the power series since January 1987 to the 1987 SIC and the incorporation of
more comprehensive annual and monthly source
data, where available. New power series include
indexes for converted paper products (SIC 267)
and plastics products (SIC 308) and exclude indexes for SIC 264, 266, and 307, which no longer
exist in the 1987 SIC.
The U.S. Bureau of Labor Statistics (BLS)
revises its monthly survey data to new levels based
on the number of employees covered by unemployment insurance in March. The last available benchmark was for March 1991. In the estimation of the
Federal Reserve production indexes, the monthly
worker hours (whether or not benchmarked by
BLS) are further adjusted to annual production
levels derived largely from the ASM.
Estimates of real output derived from the ASM
for 1988 through 1991 determine most of the
revised annual indexes of production in manufacturing; the Census of Manufactures, a more complete count of the universe, provides indexes for
1982 and 1987 and will do so for 1992. Historically, the ASM figures tend to show less growth
than do those from the census. Also, the introduction of a new panel of respondents in 1989 apparently caused an understatement of growth in that
year. Consequently, the estimates of output derived
from the ASM were adjusted upward by V percent
2
in 1988 and about IV2 percent in the years from
1989 to 1991. As shown by table 6, the Federal
Reserve's index of manufacturing output has been
revised downward to levels close to the adjusted
levels derived from the ASM.5
Some of the individual production indexes are
benchmarked to annual data that are expressed in
physical volumes, such as tons of steel or gallons

5. Gross output at the four-digit SIC industry level equals value
added plus the cost of materials. The current dollar figures from the
ASM are deflated, for the most part, by the BLS's producer price
indexes. The main exception is the hedonic price index used to
deflate computers. The deflated four-digit industry output figures
are indexed on a 1987 base, weighted with proportions based on
value added in 1987 reported in the Census of Manufactures, and
aggregated. This is essentially the same method of aggregation
used to combine the Federal Reserve's indexes of production.




of gasoline, rather than to deflated output figures
derived from the ASM. This alternative form of
data accounts for some slight difference between
the Federal Reserve and ASM-based indexes of
output.
Cyclical movements in productivity are used in
estimating those monthly indexes based on
production-worker hours or kilowatt hours of electricity used by industrial plants. Through 1991, the
movements in output per hour can be inferred by
adjusting the monthly hours data to more comprehensive annual output measures, such as those
developed from the ASM figures. Given the lack of
such annual output data since 1991, the cyclical
rebound in productivity since then must be estimated from other information such as (1) the movements of output-input ratios in previous cyclical
recoveries and (2) the productivity changes shown
in series based on monthly output data in physical
units. Other indicators of current production, such
as manufacturers' shipments and inventories in
constant dollars, are used to corroborate the current
trends in output-input ratios.
Because the revised industrial production
indexes follow the 1987 SIC, a number of
changes—including splits or recombinations of
series—occurred. One change involved the shift of
some military equipment from SIC 36, Electrical
Machinery, into SIC 38, Instruments; this shift
lowered the growth of this relatively small industry
group more noticeably than it raised the growth of
the larger electrical machinery group.6
6.

Manufacturing output
Index, 1987 average = 100
Federal Reserve
Year

Annual Survey
of Manufactures

Earlier
1988
1989
1990
1991
1992

Revised

Unadjusted

Adjusted

105.8
108.9
109.9
107.5
109.7

104.7
106.4
106.1
103.7
106.9

104.5
104.8
104.9
102.1
n.a.

104.9
106.4
106.1
103.7
n.a.

6. More specifically, search, detection, navigation, and guidance
systems and equipment, part of old SIC 3662, were transferred to
part of new SIC 3812; hydrological, hydrographic, meteorological,
and geophysical equipment, (also part of old SIC 3662) to part of
SIC 3829, Measuring and Controlling Devices, not elsewhere classified; and X-ray apparatus and tubes (old SIC 3693) to SIC 3844,5.

Industrial Production, Capacity, and Capacity Utilization since 1987

The separate series on government-owned and
-operated army, air force, and navy ordnance facilities and navy shipyards were eliminated because
the ASM and the Census of Manufactures provide
no annual data for benchmarking the available
employment data.
In calculating new seasonal adjustment factors,
the staff applied the X-11ARIMA program of Statistics Canada to data through October 1992. Seasonal factors were forecast twelve months ahead to
October 1993. In cases in which cyclical movements appeared to distort seasonal factors, some
original values were replaced with maximum likelihood estimates of more typical values before running the X-l 1ARIMA program. A prior adjustment
for Easter, which may fall in March or April, was
also made for some physical product or kilowatthour series. The Easter adjustment factor was later
combined with the factor computed by the X-l 1 to
get the final seasonal factor. For production-worker
hours, some prior adjustment may have been
required when holidays, specifically Easter and
Labor Day, occurred during the pay period containing the survey week for the BLS employment
survey.
•




605

Availability of Output, Capacity, and
Utilization Estimates
Current estimates of output, capacity, and utilization
are published first in the Federal Reserve statistical
release G. 17(419), "Industrial Production and Capacity Utilization," and then in the statistical tables of the
Federal Reserve Bulletin. All data shown in the release
will be available on the day of issue through the
Department of Commerce's online Economic Bulletin
Board (202-377-3870).
Diskettes containing either historical data (through
1985) or revised data (from 1986 to those most
recently published in the G.17 statistical release) are
available from Publications Services, Board of Governors of the Federal Reserve System, Washington, DC
20551 (202-452-3245). Estimates for total industry
and manufacturing, January 1981 to the latest available
month in 1993, are shown in tables 5A and 5B of the
G.17 statistical release. Hard copy of the revised estimates of series shown in the G.17 release is available
upon written request to Industrial Output Section, Mail
Stop 82, Division of Research and Statistics, Federal
Reserve Board, Washington, DC 20551. A table
"Industry structure and series composition of industrial production: classification, value added weight,
and description of series" is also available upon written request to the Industrial Output Section. A similar
table is available for the capacity indexes.

606

Industrial Production and Capacity Utilization
for March 1993
The revised data described in the previous article
were released for publication on May 14. What
follows is the summary of the earlier, unrevised
indexes released on April 15.

Industrial production was unchanged in March,
after having shown strong gains since October. In
part, the slowdown reflects the loss of output after
the severe mid-March storm along the East Coast;

Industrial production indexes

Twelve-month percent change

Twelve-month percent change

Durable
manufacturing

I
1988

1989

1990

1992

1991

1988

1993

1989

1990

1991

1992

1993

Capacity and industrial production
Ratio scale, 1987 production = 100

Ratio scale, 1987 production = 100
140

— Manufacturing

—

—

120

-

-

-

100

— Total industry
Capacitv

Production

1

1

1

1

1

1

1

Capacity

—

1

I

1

1

1

1

1

1

1

1

80
1

1

I

1

1

Utilization

Utilization

1983

1

Percent of capacity
Manufacturing

Total industry

J

100

Production

Percent of capacity

1981

120

-

80
1

140

—

I
1985

I

I
1987

I

I
1989

I

I L
1991

J
1993

1981

1983

1985

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




1987

I
1989

I

I
1991

I L
1993

607

Industrial production and capacity utilization 1
Industrial production, index, 1987=100
Percentage change
Category

1993

1992

2

1993 2

1992
Dec.

r

r

Jan.

Feb/

Mar. P
112.0

Total

110.0

111.4

r

1

r

Feb.

.5

.3

.6

.4

112.0

Jan.

.5

.4

Dec.

Mar.P

Mar. 1992
to
Mar. 1993

.0

4.1

Previous estimate

110.8

111.3

111.8

Major market groups
Products, total3
Consumer goods ...
Business equipment
Construction supplies
Materials

112.3
113.4
130.2
98.4
109.0

112.7
113.4
131.8
99.5
109.3

113.3
114.2
133.0
100.7
110.0

113.3
114.0
133.4
100.5
110.0

.9
.7
1.9
-.5
.0

.3
.0
1.3
1.2
.3

.5
.7
.8
1.1
.6

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

4.4
4.3
9.8
3.9
3.7

Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities

111.8
111.2
112.7
98.5
114.2

112.8
112.4
113.2
98.0
110.1

113.3
113.3
113.4
95.1
114.6

113.4
113.4
113.3
94.0
115.6

.5
.9
.0
-.9
1.7

.8
1.1
.4
-.5
-3.6

.5
.7
.1
-3.0
4.1

.1
.1
.0
-1.2
.8

4.5
6.0
2.7
-3.6
7.3
MEMO

Capacity utilization, percent
1992
Average,
1967-92

Low,
1982

High,
1988-89

1993

Mar.

Dec.r

Jan.r

Feb.r

Mar.P

Capacity,
percentage
change,
Mar. 1992
to
Mar. 1993

Total

82.0

71.8

85.0

78.4

79.6

79.8

80.1

79.9

2.1

Manufacturing
Advanced processing
Primary processing ..
Mining
Utilities

81.3
80.8
82.3
87.4
86.6

70.0
71.4
66.8
80.6
76.2

85.1
83.6
89.0
87.2
92.3

77.5
76.1
80.8
84.9
83.1

78.5
77.0
82.2
85.8
87.5

79.0
77.4
83.0
85.4
84.3

79.2
77.5
83.5
82.8
87.7

79.1
77.3
83.5
81.8
88.3

2.4
2.9
1.0
.1
.9

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

available evidence suggests that these losses were
only partly made up by month-end. The industries
most affected by the storm include textiles, steel,
furniture, tobacco, and coal mining, although the
exact magnitudes of these effects are tentative.
Overall, the output of consumer goods, intermediate products, and materials were little changed in
March; the production of business equipment
increased 0.4 percent after an average gain of more
than 1 percent a month since October. At 112.0 percent of its 1987 average, total industrial production
was 4.1 percent above its year-ago level. Total
industrial capacity utilization declined 0.2 percentage point, to 79.9 percent.
Within consumer goods industries, declines in
the production of motor vehicles and gasoline were
mostly offset by gains in the output of appliances
and residential utilities. The deceleration in busi


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

ness equipment reflected a small decline in the
production of industrial equipment, which had
grown more than 0.5 percent a month since October, and a slight easing in the pace of production of
information-processing equipment, which had
grown at a rapid pace since December. Cutbacks in
the output of defense and space equipment continue to weaken the industrial sector: During the
past few months, production has fallen an average
of more than Vi percent a month. Production of
construction supplies slipped back slightly after
increasing more than 1 percent in each of the
preceding two months. An increase in the output of
nondurable materials was offset by a decline in
energy materials. Much of the increase in nondurables reflected a pickup in paper production.
Manufacturing output edged up 0.1 percent as
production of durables moved up slightly. Most of

608

Federal Reserve Bulletin • June 1993

the impetus within durables came from the machinery industries, while production in most other
industries either rose only slightly or declined. The
largest decline was in transportation equipment,
where aircraft manufacturing continued to contract;
the output of motor vehicles and parts also
decreased for a second straight month. Within nondurables, paper production increased notably, but




the output of petroleum, textile, and tobacco products dropped. Capacity utilization in manufacturing
edged down 0.1 percentage point, to 79.1 percent.
Mining output declined, as continued weakness
in oil and gas well drilling augmented the cutback
in coal mining. The output of utilities picked
up a little with the persistence of relatively cool
temperatures.
•

609

Statement to the Congress
Statement by John P. LaWare, Member, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Economic Growth
and Credit Formation of the Committee on Banking, Finance and Urban Affairs, U.S. House of
Representatives, April 2, 1993
I appreciate the subcommittee's invitation to
discuss some of the factors influencing recent
national and regional trends in bank lending as
well as changes in the composition of banks'
balance sheets. Traditionally, commercial banks
have been central in financing economic activity.
In recent years, their relative importance has
diminished somewhat, as other financial intermediaries and direct market sources of funds have
tended to substitute for bank credit. Nevertheless, commercial banks remain the major source
of short- and intermediate-term business credit—
and the dominant source of small business financing—and thus continue to have a key function in the financial system. The recent weakness
in the growth of bank loans has raised the issue of
how well banks have been playing their intermediation role and what their future contributions
are likely to be. In view of the importance of
these and related issues, I would like to commend the committee for holding these hearings.
The weakness of bank lending to businesses
over the past couple of years is in some part a
continuation of the trend toward a smaller banking role to which I just alluded. A much more
important factor, however, has been a considerable falloff in the demand for bank credit. This
decline in demand has been mainly associated
with a sharp reversal of some of the balance
sheet trends that developed during the 1980s.
These efforts to strengthen balance sheets have
had a pronounced effect on the demand for bank
credit from both the household and, especially,
the business sectors. A related need by banks to
repair their own balance sheets has led to a
tightening of banks' lending standards and terms




even as demands for their loans were dropping.
The resulting pattern of weak lending has been
apparent across much of the United States, but
the timing and severity of the slowdown have
varied somewhat by region. In the remainder of
my remarks, I will expand on this brief summary
of recent developments.
As the data that the banking agencies have
assembled for the subcommittee indicate, the
pace of expansion of the assets and deposits of
depository institutions has been quite slow or
negative in the past few years after a considerable advance in the 1980s. The growth of loans,
particularly business loans, has been sluggish,
although banks and other depositories have acquired large volumes of U.S. government and
agency securities.
The pattern of bank lending and the condition
of banks have not been uniform across the
United States and have mirrored the unevenness
of economic developments. Perhaps the New
England area provides the best-known regional
aspect to the credit crunch. The boom in the
1980s was unusually strong in this region, particularly with respect to real estate, and the fall in
the 1990s was commensurately sharp. The experience in New England points up the interconnections between the real and financial economies: As the New England economy softened
and real estate prices stopped rising and began to
fall, the quality of bank portfolios deteriorated
rapidly, causing current and prospective declines
in bank capital and generating a need to constrain
lending. Of course, as the economy contracted,
loan demand also fell. But the drop in loans on
the books of New England banks doubtless was
sharper than would have been the case had these
banks felt better capitalized. As banks were
intent on quickly improving capital ratios and
reducing their exposure to further loss, some
creditworthy borrowers appear to have been
denied credit. Such problems have surfaced in
other parts of the United States as well.

610

Federal Reserve Bulletin • June 1993

The regional breakdown of the banking data
indicates that commercial and industrial loans
have declined in the past few years in all parts of
the United States but particularly in the West,
Southwest, and Northeast. These areas, of
course, have had pronounced economic difficulties that likely developed independently of banking conditions. In every region, construction
loans also have contracted substantially. Other
loan categories show more variation, however.
For example, residential real estate loans expanded in the central, midwestern, and southwestern regions but contracted in the Northeast
and the West in the 1990-92 period. Even commercial real estate credit exhibited strength in
some areas, such as the central and midwestern
regions but declined in the Southwest and on the
coasts. Total lending has been weakest in the
Northeast, followed by the Southwest and the
West.
There are several reasons for weak loan
growth. I will begin with the most important
reasons: Households and businesses have opted
to reverse the patterns of spending, investing,
and borrowing that dominated the 1980s. As you
are well aware, that decade was one in which
households, businesses, and, of course, the federal government very substantially increased
their use of debt. Households rapidly added to
their mortgage and other loan liabilities. Businesses simultaneously acquired a very heavy
debt burden. Their borrowing was in considerable part related to an unprecedented substitution of debt for equity, much of it associated with
mergers, takeovers, or defenses against takeovers. During the decade ending in 1989, household debt rose at an average annual rate of about
11 percent, and growth of business debt over this
period averaged only a bit less, 10 percent. The
debt growth of these sectors exceeded the 8
percent average rate of expansion of nominal
gross domestic product (GDP) over this period.
This extraordinary exercise in leveraging by the
business and household sectors was financed in
no small part by banks. For example, business
and consumer loans at banks both expanded at
average annual rates of about 8 percent in the
1980s; for bank mortgage holdings, annual
growth averaged 12 percent.
When some of the assumptions upon which




these trends were based—especially that inflation rates would continue unabated—proved incorrect, pressures to reverse the debt buildup
and leveraging of the 1980s began to emerge. In
particular, a collapse in commercial real estate
undermined the assumption that this market provided a good investment vehicle for borrowers
and sound collateral for lenders. When the economy began to exhibit recessionary behavior,
businesses and households alike initiated efforts
to reduce their debt burdens and strengthen their
balance sheets.
These efforts have focused not only on reducing debt levels but also on substituting equity for
debt, extending maturities to enhance liquidity,
and refinancing existing debt to lower interest
costs. Therefore, the decline in debt owed by the
business sector has been particularly focused on
shorter-term instruments, including bank loans.
In part, these loans have been paid down with the
proceeds of equity issuance. After seven years of
contraction, net funds raised in equity markets
by nonfinancial firms turned around in 1991, and
firms have been issuing new equity at record
rates in recent quarters. Bank loans also have
been paid down with funds raised in bond markets. In addition, a great deal of bond issuance
has been directed toward refinancing existing
high-cost bonds at lower interest rates. This
process has greatly reduced the debt-service
burdens on the corporate sector and has left
business balance sheets considerably strengthened.
It is fair to say, then, that much of the recent
weakness in commercial and industrial loans is
the result of vigorous efforts by businesses to
improve the health of their balance sheets. At the
same time, outlays to finance inventories and
capital have been less than the volume of internal
funds for nonfinancial corporations in the aggregate, further limiting firms' demands for bank or
other credit.
Some of the recent weakness in commercial
and industrial lending by banks appears to be a
continuation of a longer-term downtrend in the
relative importance of this type of business
credit. Reasons for this slippage include increased competition from other sources of business credit, such as finance companies and the
commercial paper market. The key role played

Statement

by depressed demand in explaining the recent
contraction in commercial and industrial loans is
pointed up by the simultaneous marked weakness or outright declines in these competing
sources of short-term credit to businesses.
The weakness in bank loans to the household
sector also appears to be mainly a demand side
phenomenon. The sluggishness in housing prices
and construction activity, for example, has likely
depressed demand for mortgage credit, although
the decline in home prices was nowhere near as
severe as for commercial real estate. Perhaps
more important, employment uncertainties that
accompanied the economic downturn and the
rather slow recovery caused households to take a
more cautious approach to the use of debt. As a
result, consumer credit outstanding contracted in
1991 and was little changed last year. In part, the
anemic performance of consumer credit owed to
paydowns using the proceeds of mortgages refinanced at rates that are well below consumer
loan rates, particularly on an after-tax basis. In
addition, weak consumer credit has been associated with the use of household financial assets,
including bank deposits now yielding only 2
percent to 3 percent to pay down, or to limit, the
growth of, loans.
As with businesses, these efforts, although
depressing bank lending and the level of consumer debt, have contributed to a marked
strengthening of household balance sheets. The
use of deposits and other monetary assets to
constrain household debt growth, incidentally,
has contributed to the very weak performance of
the broader measures of the money supply over
the past two years. Thus, rather than being
indicative of a restrictive monetary policy or a
lack of adequate funding for the economy, slow
money growth rather is the obverse of the rechanneling of credit flows out of banks and into
capital markets—in large part via rapidly expanding bond and equity mutual funds.
These portfolio adjustments of households and
businesses have been motivated largely, as I
have suggested, by efforts to restore balance
sheets that had gotten out of line in the 1980s.
But the timing and pace of these restructuring
activities have been related importantly to the
very favorable trends we have seen in the equity
and bond markets, trends that seem to have




to the Congress

611

accelerated in the past few months. These developments, particularly the dramatic declines in
longer-term interest rates, in turn, appear to owe
heavily to the markets' perception that, at last,
the federal government too is prepared to take
meaningful steps toward putting its own financial
house in order.
Although sluggish loan growth at banks appears attributable largely to weak demand, it is
clear that banks' appetite for loans has slackened
over the past few years. The reason is that banks,
too, found themselves in need of balance sheet
restoration after the 1980s. This need was a result
of the same realities their household and business
customers were facing: The excessive loan liabilities of these latter groups had become the deteriorating loan assets of banks. The impact of
these asset-quality problems on bank lending
policies was intensified by increases in minimum
acceptable capital ratios required both by regulators and by market forces.
Our periodic surveys of bank lending officers
confirm that a distinct shift toward tighter standards for approving loan applications as well as
stiffer lending terms began several years ago.
Greater stringency was most notable with respect to commercial real estate lending, but it
was quite marked as well for business lending.
The tighter terms have included lower ceilings on
the size of credit lines offered, increases in the
cost of these lines, and additional collateral requirements. Also, the relative cost of bank loans,
as measured by the unusually wide spread between the prime rate and banks' cost of funds, is
high.
Although banks apparently ceased tightening
in 1991, there has been little evidence of easing.
In and of themselves, tighter lending standards
and wider lending spreads in a time of an economic recession are not unusual. But the economy has been expanding now for two years, and
the extended bout of stringency stands in some
contrast to this pattern of economic growth.
Besides suggesting the extent of needed balance
sheet restructuring by banks, this prolonged period of adjustment may also reflect the increased
costs of financial intermediation resulting from
recent banking legislation.
With demand for their loans weak, banks have
bid for deposits unenthusiastically. Neverthe-

612

Federal Reserve Bulletin • June 1993

less, deposit inflows have exceeded banks' funding needs, and, partly to accommodate their deposit customers, banks have purchased securities
in volume. This phenomenon is one in which this
subcommittee has expressed an interest. Historically speaking, the ratio of security holdings to
loans at banks is not at a particularly high level.
Indeed, it was much higher in the period from the
end of World War II to the early 1960s. Nor is the
increase in the ratio over the past few years
surprising because it typically rises in periods of
economic weakness. Nevertheless, some observers have blamed the recent shift from lending to
acquisitions of government securities on the Basle
risk-based capital standards.
As you know, banks must maintain minimum
levels of two separate measures of capital: the
ratio of equity capital to assets, a standard and
traditional measure of leverage, and more recently, the ratios of two measures of capital to
risk-adjusted assets. The latter requirements are
the capital standards associated with the Basle
Accord. They formally recognize what has long
been known and understood—if not always acted
upon—by bankers as well as their supervisors,
namely that the amount of capital backing banks'
assets ought to be related to the riskiness of those
assets.
At first glance, the Basle Accord would appear
to have had an important causative role in recent
changes in banks' portfolio composition away
from loans and toward securities. This interpretation would seem to follow from the observation
that, in the period leading up to the full implementation of these standards in December 1992,
banks acquired substantial amounts of U.S.
Treasury and agency securities, which have low
or zero weights in computing risk-based capital
ratios and registered corresponding declines in
the portfolio shares of full-risk-weight loans.
Because the purpose of the risk-based capital
requirements was to better align risks with capital, it would be surprising if their introduction did
not have some impact on banks' portfolio composition. For the preponderance of banks, however, considerable evidence suggests that the
recent trend toward increased securities holdings
much more reflects lackluster loan demand as
described above than efforts to boost risk-based
capital ratios.,




First, during this period most banks already
met capital standards and thus were under no
regulatory pressure to realign their portfolio. In
addition, precisely the better capitalized banks in
recent years have been acquiring the bulk of
liquid Treasury and agency securities. This pattern, in turn, seems to reflect that it has been the
banks with high risk-based capital ratios that also
have had relatively high leverage ratios and have
been most able to grow and accommodate deposit inflows. In an environment of depressed
loan demand, deposit inflows were deployed to
available assets, largely securities. A similar
portfolio pattern of weak loan growth and strong
security acquisitions has developed at credit
unions—institutions not subject to the Basle
Accord. As loan demand revives, the high levels
of securities holdings at banks and other depository institutions likely will be drawn down as
they were in numerous other cyclical upturns.
Another important factor has been the development of the market for mortgage-backed securities, especially collateralized mortgage obligations (CMOs). The CMO market makes available
mortgage-backed instruments that are more attractive to banks than standard mortgage passthrough securities because the effective maturities of some CMO tranches better match those of
banks' deposit liabilities and thus serve to limit
interest rate risk. Indeed, most of the growth in
mortgage-related securities since 1990 has been
in the form of CMOs, and acquisitions of government-backed or guaranteed mortgage-related securities have accounted for 45 percent of all
purchases of U.S. government and agency securities over this period. In part, acquisitions of
mortgage securities can be viewed as substituting
for state and local bonds, which have run off
since late 1986, when the tax-advantaged status
of most of these instruments to banks was ended.
Of course, bank purchases of mortgage-backed
securities provide credit to mortgage markets
just as do acquisitions of mortgages themselves.
Even though the Basle Accord does not seem
to explain the recent trend toward securities
acquisition as currently structured, it does not
adequately address the issue of interest rate risk
that is potentially raised in banks' holdings of
securities. Our examiners do, of course, take
interest rate risk into account when evaluating

Statement

banks. To provide further guidance in this area to
banks and examiners and to respond to requirements of the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA), the
Board has developed a proposal for measuring
interest rate risk in the context of the Basle
Accord and earlier this week approved its publication for public comment.
The steps that banks have taken in recent
years to rebuild their balance sheets have been
considerable and may well augur an increase in
the availability of bank credit. Banks are very
liquid, and lending rates relative to funding costs
appear quite favorable, although banks must now
cover expenses associated with recent legislation
that were not present earlier. Reflecting wider
lending margins and banks' efforts of recent
years to control costs, bank profits last year
reached record levels. Capital markets, meanwhile, have improved markedly, and banks took
full advantage of these conditions by issuing a
record volume of capital last year. As a result of
the strong growth of capital, the share of loans in
the banking system at well-capitalized banks by
the end of last year climbed past 85 percent, and
less than 1 percent was at less than adequately
capitalized banks. Bank asset quality also has
improved, as delinquency rates, while still high,
have headed down.
These developments suggest that banks have
completed much of the adjustment necessary to
attain comfortable balance sheets. Banks seem to
be ready to lend when demand picks up. Indeed,
there have been some tentative signs in recent
months of a pickup in bank lending and a slowing
in their acquisitions of securities. As funding
conditions in capital markets have generally remained very favorable, business firms have continued to raise substantial volumes of funds
there, and loan growth at larger banks has re-




to the Congress

613

mained very weak. At smaller banks as a group,
however, loan runoffs have ceased, and some
growth has developed.
The administration's initiatives on credit
availability recently announced by the Federal
Reserve and the other banking agencies should
provide some help in stimulating loan growth,
particularly for smaller borrowers. The already
announced policy that would create for stronger
banks a basket of loans to small and mediumsized businesses and farms for which documentation would not be reviewed by the examiner
should help quite a lot. I also anticipate policy
proposals that would reduce the burden of real
estate appraisal requirements for most credit to
smaller borrowers to be announced shortly.
These changes will be within the FDICIA
framework and are designed not to affect adversely the safety and soundness of banks and
thrift institutions but are expected to reduce
costs and lags in the small- and medium-sized
business loan market. Other steps under consideration that would lower the cost and burden
of the examination process are—as announced
in mid-March—under active review by the
banking agencies.
To sum up, the past few years have been a
difficult time for our economy and our financial
institutions. During this period, the consequences of the excesses of the past decade have
become apparent, along with the need to make
fundamental adjustments. These adjustments
have left their imprint on financial flows, particularly in the form of a slower pace of overall
credit growth and, especially, restrained balance
sheet expansion by depository institutions. Although this process has been trying, we are likely
to emerge from it with leaner and more efficient
banking institutions that are able to resume a
central role in financing a growing economy. •

614

Announcements
PUBLICATION OF DOCUMENTS ON MARKET
RISK AND BANK CAPITAL BY THE BASLE
COMMITTEE ON BANKING SUPERVISION
The Federal Reserve Board made available on
April 30, 1993, for public comment several documents on market risk and bank capital developed
by the Basle Committee on Banking Supervision
under the auspices of the Bank for International
Settlements. The public comment period extends
through year-end 1993.
These consultative papers, which deal with
supervisory treatment of netting arrangements,
market risk, and interest rate risk, provide an overview of the work to date of the Basle Committee.
While the matters addressed are in their preliminary stages and describe the current status of efforts
that are of an ongoing nature, these efforts have
potential implications for the evaluation of the capital adequacy of internationally active banks.
The Board released an overview, prepared by the
Basle Committee, that summarizes each paper.
Copies of the committee's papers can be obtained
from Publications Services, Board of Governors of
the Federal Reserve System, Washington, DC
20551. Comments should be sent to William Wiles,
Secretary, at the same address.
Any concrete proposals for modifying the U.S.
risk-based capital guidelines that eventually grow
out of these preliminary consultative papers would
be issued for comment before they are adopted for
U.S. banking organizations.

ISSUANCE OF FINAL RULE AMENDING
RISK-BASED CAPITAL GUIDELINES FOR
STATE MEMBER BANKS AND BANK HOLDING
COMPANIES
The Federal Reserve Board issued on April 20,
1993, a final rule amending the risk-based capital
guidelines for state member banks and bank hold


ing companies to lower from 100 percent to 50 percent the risk weight on loans to finance the construction of one- to four-family residences that
have been presold.
The final rule amends the Board's Regulation H
(Membership of State Banking Institutions in the
Federal Reserve System) and Regulation Y (Bank
Holding Companies and Change in Bank Control).
It is effective April 26, 1993, and implements section 618(a) of the Resolution Trust Corporation
Refinancing, Restructuring, and Improvement Act
of 1991 (RTCRRIA).

REVISIONS TO THE STAFF COMMENTARY TO
REGULATION Z
The Federal Reserve Board published on April 1,
1993, revisions to its staff commentary to Regulation Z (Truth in Lending). The rules are effective
immediately, but compliance is optional until October 1, 1993.
The revisions address the interplay between the
Truth in Lending rules on demand features and
other federal rules dealing with credit extended to
executive officers of depository institutions and
provide more flexibility in complying with disclosure requirements. The revisions also offer creditors alternative methods of disclosing security
interests in rescindable transactions.

REVISIONS TO THE LIST OF MARGINABLE
OTC STOCKS AND TO THE LIST OF FOREIGN
MARGIN STOCKS
The Federal Reserve Board published on April 23,
1993, a revised List of Marginable OTC Stocks
that are subject to its margin regulations. Also
published was the List of Foreign Margin Stocks
for foreign equity securities that are subject to
Regulation T (Credit by Brokers and Dealers). The

615

lists are effective May 10, 1993, and supersede the
previous lists that were effective February 8, 1993.
The Foreign List specifies those foreign equity
securities that are eligible for margin treatment at
broker-dealers. There are no additions, deletions,
or changes to the Foreign List, which contains
302 foreign equity securities.
The changes that have been made to the OTC
List, which now contains 3,259 stocks, are as
follows:
• One hundred sixty-nine stocks have been
included for the first time, 139 under National
Market System (NMS) designation.
• Thirty-two stocks previously on the list have
been removed for substantially failing to meet the
requirements for continued listing.
• Thirty-eight 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 over-the-counter securities designated
by the Board pursuant to its established criteria as
well as all OTC stocks designated as NMS securi-




ties 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 publication of the
Board's list is scheduled for August 1993.
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.

RELEASE OF QUARTERLY TABLE OF
FACTORS FOR SECTION 20 COMPANIES
The Federal Reserve Board released on April 12,
1993, its quarterly table of factors to adjust interest
income to be used by section 20 companies that
adopt the Board's alternative index revenue test to
measure compliance with the 10 percent limit on
bank-ineligible securities activities. The table of
factors is available from Publications Services,
Board of Governors of the Federal Reserve System, Washington, DC 20551.
•

617

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; List of Foreign Margin Stocks). The List
of Marginable OTC Stocks (OTC List) is composed 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) is composed of 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
Foreign List. Both Lists were last published on February 1, 1993, and effective on February 10, 1993.

Cortech, Inc.: Rights (expire 05-24-94)
Crest Industries, Inc.: $.01 par common
Everex Systems, Inc.: $.001 par common
First Federal Savings Bank (Puerto Rico): $1.00 par
common
First Seismic Corporation: $.01 par common
Green Isle Environmental Services, Inc.: $.18-3/4 par
common
Hunter Environmental Services Inc.: $.10 par common
Imagine Films Entertainment, Inc.: Warrants (expire
07-30-93)
Jefferson National Bank (New York): $1.00 par common
Main Street & Main Inc.: Warrants (expire 09-04-96)
Millfeld Trading Co., Inc.: Class A; Warrants (expire
09-04-96)

Effective May 10, 1993, 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. 221.2(j) and 221.7 (Regulation U), there is set forth below a listing of deletions
from and additions to the OTC List.

NDE Environmental Corporation: $.001 par common
NESB Corporation: $.01 par common

Deletions from the List of Marginable OTC
Stocks

Pacific International Services Corp.: N o par common
Pentair Inc.: $1.50 par cumulative convertible preferred

Stocks Removed for Failing Continued Listing
Requirements
Alpha 1 Biomedicals, Inc.: Class B, warrants (expire
06-30-95)
American Steel and Wire Corporation: $.20 par common
ARIX Corporation: $.01 par common
B.M.J. Financial Corporation: Rights (expire
03-15-93)
Calendar Capital, Inc.: $.01 par common
Cherokee Inc.: $.01 par common
Circle Fine Art Corporation: $.10 par common




Old Stone Corporation: $1.00 par common; Series B,
12% preferred

Ramtron Holdings Limited: American Depositary Receipts
Receptech Corporation: $.01 par common
Sage Analytics International Inc.: $.001 par common
Southern Educators Life Insurance Co.: $.50 par
common
Tele-Communications Inc.: Series A; $1.00 par 12-%%
cumulative compounding redeemable preferred
USBancorp Inc.: Series A; $2,125 par convertible
preferred
Washington Mutual Savings Bank: $1.00 par preferred
stock

618

Federal Reserve Bulletin • June 1993

Stocks Removed for Listing on a National
Securities Exchange or Being Involved in an
Acquisition

Security Financial Holding Co.: $.01 par common
South Carolina Federal Corp. $1.00 par common
United American Healthcare Corp.: N o par common

Advo, Inc.: $.01 par common
Alden Press Company: $.01 par common
Allmerica Property & Casualty Companies, Inc.: $1.00
par capital
Applied Biosystems Inc.: N o par common
Armstrong Pharmaceuticals, Inc.: $.08 par common
Clinical Homecare Ltd.: $.01 par common
Colonial Companies, Inc.: Class B, non-voting; $1.00
par common
DFSoutheastern, Inc.: $1.00 par common
Diversco, Inc.: $.01 par common
Dominion Bankshares Corporation: $5.00 par common
Elm Financial Services, Inc.: $.01 par common
Fedfirst Bancshares, Inc.: $.01 par common
First Chattanooga Financial Corp.: $1.00 par common
First Federal Savings & Loan Association of Fort
Meyers: $.01 par common
First Federal Savings Bank (Utah): $1.00 par comon
Flagler Bank Corporation: Class A; $.10 par common
Fremont General Corporation: $1.00 par common
Genesis Health Ventures: $.02 par common
Glamis Gold Ltd.: N o par common
Harmonia Bancorp Inc.: $.01 par common
Health Images, Inc.: $.01 par common
Heekin Can, Inc.: $.01 par common
Imagine Films Entertainment, Inc.: $.01 par common
Inforum, Inc.: $.01 par common
Integra Financial Corporation: $5.00 par common
KCS Energy, Inc.: $.01 par common
Lincoln Financial Corporation: N o par common,
$10.00 stated value
Mercantile Bancorporation, Inc.: $5.00 par common
Montclair Bancorp, Inc.: $.01 par common
National Savings Bank of Albany: $1.00 par common
N e w York Bancorp, Inc.: $.01 par common
Piccadilly Cafeterias, Inc.: N o par common
Pioneer Savings Bank (Washington): $1.00 par common
Puget Sound Bancorp: $5.00 par common



Valley National Corporation: $2.50 par common

Additions to the List of Marginable OTC
Stocks
Airsensors, Inc.: $.001 par common; Warrants (expire
03-10-96)
Alamo Group, Inc.: $.10 par common
Alltrista Corporation: N o par common
Amcor Limited: American Depositary Receipts
American Federal Bank, FSB (South Carolina): $1.00
par common
Amtrol Inc.: $.01 par common
Applied Signal Technology, Inc.: N o par common
Argosy Gaming Company: $.01 par common
Arkansas Best Corporation: Series A; $.01 par cumulative convertible exchangeable preferred
Aseco Corporation: $.01 par common
Autoimmune Inc.: $.01 par common
Avecor Cardiovascular Inc.: $.01 par common
Avid Technology, Inc.: $.01 par common
Bancfirst Corporation (Oklahoma): $1.00 par common
Bancinsurance Corporation: N o par common
BHC Financial, Inc.: $.001 par common
Biosurface Technology, Inc.: $.01 par common
BKC Semiconductor Incorporated: No par common
Boca Research, Inc.: $.01 par common
Brock Candy Company: Class A; $.01 par common
Brookstone, Inc.: $.001 par common
Bruno's, Inc.: Convertible debentures (due
09-01-2009)
Campo Electronics Appliances & Computers Inc.:
$.10 par common
Cannon Express, Inc. Class B, non-voting, $.01 par
common
Cascade Savings Bank, FSB (Washington): $1.00 par
common
Casino America, Inc.: $.01 par common
Casino Data Systems: N o par common
Catalytica, Inc.: $.001 par common
CB Bancshares, Inc. (Hawaii): $1.00 par common
Cell Genesys, Inc.: $.001 par common
Champion Industries, Inc.: $1.00 par common
Chesapeake Energy Corporation: $.01 par common
Chico's Fax, Inc.: $.01 par common
Cocensys, Inc.: $.001 par common
Commerce Bank (Virginia): $.01 par common

Legal Developments

Community Bancorp, Inc. (New York): 7.25% Series
B; cumulative convertible preferred
Community Health Computing Corporation: $.001 par
common
Computer Outsourcing Services, Inc.: $.01 par common
Comverse Technology, Inc.: $.01 par common
Coral Gables Fedcorp, Inc.: $.01 par common
Cree Research, Inc.: $.01 par common
Cryolife, Inc.: $.01 par common
Cyberonics, Inc.: $.01 par common
Davidson & Associates, Inc.: $10.00 par common
DF&R Restaurants, Inc.: $.01 par common
Education Alternatives, Inc.: $.01 par common
Energy Biosystems Corporation: $.01 par common
Envirotest Systems, Inc.: Class A; $.01 par common
Equicredit Corporation: $.01 par common
Ethical Holdings Limited: American Depositary Receipts
Excel Technology, Inc.: Series 1; $.001 par redeemable convertible preferred; Warrants (expire
09-30-97)
Fastcomm Communications Corporation: $.01 par
common
Fed One Savings Bank, F.S.B. (West Virginia): $.10
par common
Financial Institutions Insurance Group, Ltd.: $1.00
par common
First Family Bank, FSB (Florida): $1.00 par common
First Federal Savings Bank of Brunswick, Georgia:
$1.00 par common
First Shenango Bancorp, Inc. (Pennsylvania): $.10 par
common
First Southern Bancorp, Inc. (North Carolina): N o par
common
Fossil, Inc.: $.01 par common
Framingham Savings Bank (Massachusetts): Warrants
(expire 01-31-96)
Funco, Inc.: $.01 par common
General Nutrition Companies, Inc.: $.01 par common
Gilat Satellite Networks Ltd.: Ordinary shares
(NIS .01)
Global Industries, Ltd.: $.01 par common
Global Spill Management, Inc.: $.001 par common
Gupta Corporation: $.01 par common
Gymboree Corporation, The: $.001 par common
Hahn Automotive Warehouse, Inc.: $.01 par common
Hamilton Bancorp, Inc. (New York): $.01 par common
Hollywood Park, Inc.: Depositary shares




619

IEC Electronics Corp.: $.01 par common
Inco Homes Corporation: $.01 par common
Incomnet Inc.: N o par common
Independence Federal Savings Bank (Washington,
D.C.): $.01 par common
Independent Entertainment Group, Inc.: $.0001 par
common
Intel Corporation: Warrants (expire 03-07-98)
Intelligent Surgical Lasers, Inc.: N o par common
Intervisual Books, Inc.: N o par common
Intuit Inc.: $.01 par common
Jackpot Enterprises, Inc.: Warrants (expire 01-31-96)
Jackson County Federal Bank, A Federal Savings
Bank (Oregon): Series A; $5.00 non-cumulative convertible preferred
Jefferson Savings Bancorp, Inc. (Missouri): $.01 par
common
JMAR Industries, Inc.: $.01 par common; Warrants
(expire 02-17-98)
Kenfil Inc.: $.01 par common
Kinder-Care Learning Centers, Inc.: $.01 par common; Warrants (expire 04-01-97)
L.S.B. Bancshares, Inc. of South Carolina: $2.50 par
common
Landstar System, Inc.: $.01 par common
Leasing Solutions, Inc.: N o par common
Liberty Technologies, Inc.: $.01 par common
Lomak Petroleum, Inc.: $.01 par common
Lukens Medical Corporation: $.01 par common
Magal Security Systems, Ltd.: Ordinary shares
Marcum Natural Gas Services, Inc.: $.01 par common
Marion Capital Holdings, Inc.: N o par common
Mason-Dixon Bancshares, Inc.: $10.00 par common
Mathsoft, Inc.: $.01 par common
McGaw, Inc.: $.001 par common
Medical Resources, Inc.: $.01 par common
Microchip Technology, Inc.: $.001 par common
Molecular Dynamics, Inc.: $.01 par common
Molten Metal Technology, Inc.: $.01 par common
Mothers Work, Inc.: $.01 par common
Nathan's Famous, Inc.: $.01 par common
National Convenience Stores Incorporated: $.01 par
common
NFO Research, Inc.: $.01 par common
Norand Corporation: $.01 par common
Northrim Bank (Alaska): $1.00 par common
NSA International, Inc.: $.05 par common
Nubco, Inc.: N o par common

620

Federal Reserve Bulletin • June 1993

Orchard Supply Hardware Stores Corporation: $.01
par common
Orthologic Corporation: $.005 par common
Pacific Sunwear of California, Inc.: $.01 par common
Parallan Computer, Inc.: N o par common
Patrick Petroleum Company: Series B; $1.00 par convertible preferred
Penn Central Bancorp, Inc. (Pennsylvania): $1.25 par
common
Pennsylvania Gas and Water: Depositary preferred
shares
Peoples Bancorp, Inc. (Ohio): $1.00 par common
Perceptron, Inc.: $.01 par common
Petersburg Long Distance Inc.: N o par common
Philip Environmental Inc.: N o par common
Physician Corporation of America: $.01 par common
Physicians Health Services, Inc.: Class A, $.01 par
common
Pikeville National Corporation: $5.00 par common
PMR Corporation: $.01 par common
Powersoft Corporation: $.00167 par common
Preferred Health Care Ltd.: $.01 par common
Proxima Corporation: $.001 par common
Quantum Corporation: 6-Vs% convertible
nated debentures due 2002

subordi-

Recovery Engineering, Inc.: $.01 par common
Regent Bancshares Corp. (Pennsylvania): Series A,
$. 10 par convertible preferred
Resound Corporation: $.01 par common
Rocky Shoes & Boots, Inc.: N o par common
Roosevelt Financial Group, Inc.: 6-l/2% non-cumulative convertible preferred
Rouse Company, The: Series A, convertible preferred
stock
RPM, Inc.: Liquid yield option notes due 2012
S3 Incorporated: $.001 par common
Sage Alerting Systems, Inc.: $.01 par common
Savoy Pictures Entertainment, Inc.: $.01 par common
Shaman Pharmaceuticals, Inc.: $.01 par common
Shared Technologies, Inc.: $.001 par common
Shoe Carnival, Inc.: $.01 par common
Southern Energy Homes, Inc.: $.0001 par common
Specialty Paperboard, Inc.: $.001 par common
Standard Management Corporation: N o par common
Staples, Inc.: 5% convertible subordinated debentures
Stephan Company, The: $.01 par common
Sumitomo Bank of California, The: Depositary shares
Sun Bancorp, Inc. (Pennsylvania): $2.50 par common
Sunrise Bancorp, Inc. ( N e w York): $.10 par common
Superconductor Technologies, Inc.: $10.00 par common




Suprema Specialties, Inc.: $.01 par common
Tecnomatix Technologies, Ltd.: Ordinary shares (NIS
.01 par value)
Tencor Instruments: N o par common
Tide West Oil Company: $.01 par common
Tricord Systems, Inc.: $.01 par common
U.S. Can Corporation: $.01 par common
Union Bankshares, Ltd. (Colorado): $.001 par common
Universal Electronics, Inc.: $.01 par common
Vical Incorporated: $.01 par common
Virginia First Savings Bank, F.S.B.: $1.00 par common
Wall Data Incorporated: N o par common
Washington Homes, Inc.: $.01 par common
Watson Pharmaceuticals, Inc.: $.0033 par common
WCT Communications, Inc.: N o par common
Wordstar International Corporation: Warrants (expire
03-26-96)

FINAL RULE—AMENDMENT
HAND
Y

TO

REGULATIONS

The Board of Governors is amending 12 C.F.R. Parts
208 and 225, its Regulations H and Y (Capital and
Capital Adequacy Guidelines). The Board is amending
the risk-based capital guidelines for bank holding
companies and state member banks to lower from
100 percent to 50 percent the risk weight assigned to
certain loans to builders to finance the construction of
presold residential (one- to four-family) properties.
This final rule implements section 618(a) of the Resolution Trust Corporation Refinancing, Restructuring,
and Improvement Act of 1991.
Effective April 26, 1993, 12 C.F.R. Parts 208 and
225 are amended as follows:

Part 208—Membership of State Banking
Institutions in the Federal Reserve System
1. The authority citation for part 208 is revised to read
as follows:
Authority: Sections 9,11(a), 11(c), 19, 21, 25, and 25(a)
of the Federal Reserve Act, as amended (12 U . S . C .
321-338, 248(a), 248(c), 461, 481-486, 601, and 611,
respectively); sections 4 and 13(j) of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1814 and
1823(j), respectively); sections 7(a) of the International
Banking Act of 1978 (12 U . S . C . 3105); sections 907-

Legal Developments

910 of the International Lending Supervision Act of
1983 (12 U.S.C. 3906-3909); sections 2, 12(b), 12(g),
12(i), 15B(c)(5), 17, 17A, and 23 of the Securities
Exchange Act of 1934 (15 U.S.C.78b, 78/(b), 78/(g),
78/(i), 78o-4(c)(5), 78q, 78q-l, and 78w, respectively);
section 5155 of the Revised Statutes (12 U.S.C. 36) as
amended by the McFadden Act of 1927; and sections
1101-1122 of the Financial Institutions Reform, Recover and Enforcement Act of 1989 (12 U.S.C. 3310
and 3331-3351); 12 U.S.C. 93a, 161, 1818, 3907, 3909,
Sec. 618, Pub. L. 102-233, 105 Stat. 1761 (Resolution
Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991).

APPENDIX A TO PART

621

225—[AMENDED]

III. Procedures for Computing Weighted-Risk
Assets and Off-Balance-Sheet Items
C. Risk Weights

^

* * *38

2. Appendix A to part 208 is amended by revising
footnote 35 to read as follows:
FINAL RULE—AMENDMENT

APPENDIX A TO PART

208—[AMENDED]

III. Procedures for Computing Weighted-Risk
Assets and Off-Balance-Sheet Items
C. Risk Weights
%
3

i(i

s|e

* * *35

Part 225—Bank Holding Companies and
Change in Bank Control
1. The authority citation for part 225 is revised to read
as follows:
Authority:
12 U.S.C.
1817(j)(13), 1818, 1831i,
1843(c)(8), 1844(b), 3106, 3108, 3907, 3909, 3310, and
3311-3351.
2. Appendix A to part 225 is amended by revising
footnote 38 to read as follows:

35. Loans that qualify as loans secured by one- to four-family
residential properties are listed in the instructions to the commercial
bank call report. In addition, for risk-based capital purposes, loans
secured by one- to four-family residential properties include loans to
builders with substantial project equity for the construction of one- to
four-family residences that have been presold under firm contracts to
purchasers who have obtained firm commitments for permanent
qualifying mortgage loans and have made substantial earnest money
deposits.




TO REGULATION

O

The Board of Governors is amending 12 C.F.R. Part
215, its Regulation O (Loans to Executive Officers,
Directors, and Principal Shareholders of Member
Banks; Loans to Holding Companies and Affiliates), to
implement recent amendments to section 22(h) of the
Federal Reserve Act, contained in the Housing and
Community Development Act of 1992. The final rule
adopts three exceptions to the aggregate insider lending limit in Regulation O substantially as they were set
forth in the Board's proposed rule. Additional exceptions suggested by commenters will be considered in
future rulemaking.
Effective May 3, 1993, 12 C.F.R. Part 215 is
amended as follows:

Part 215—Loans to Executive Officers,
Directors, and Principal Shareholders of
Member Banks
1. The authority citation for part 215 is revised to read
as follows:
Authority. 12 U.S.C. 248(i), 375a, 375b(7), 1817 (k)(3)
and 1972(2)(F)(vi), Pub. L. 102-550, 106 Stat. 3895
(1992).

38. Loans that qualify as loans secured by one- to four-family
residential properties are listed in the instructions to the FR Y-9C
Report. In addition, for risk-based capital purchases, loans secured by
one- to four-family residential properties include loans to builders with
substantial project equity for the construction of one- to four-family
residences that have been presold under firm contracts to purchasers
who have obtained firm commitments for permanent qualifying mortgage loans and have made substantial earnest money deposits.

622

Federal Reserve Bulletin • June 1993

Subpart A—Loans by Member Banks to Their
Executive Officers, Directors, and Principal
Shareholders

Part 265—Rules Regarding Delegation of
Authority
1. The authority citation for part 265 is revised to read
as follows:

2. Section 215.4 is amended by adding a new paragraph (d)(3) to read as follows:

Authority: 12 U.S.C. 248(i) and (k).

S e c t i o n 215.4—General prohibitions.

2. Section 265.5 is amended by adding paragraph (c)(3)
to read as follows:

^ ***
(3) Exceptions. The general limit specified in paragraph (d)(1) of this section does not apply to the
following:
(i) Extensions of credit secured by a perfected
security interest in bonds, notes, certificates of
indebtedness, or Treasury bills of the United
States or in other such obligations fully guaranteed as to principal and interest by the United
States;
(ii) Extensions of credit to or secured by unconditional takeout commitments or guarantees of
any department, agency, bureau, board, commission or establishment of the United States or any
corporation wholly owned directly or indirectly
by the United States; or
(iii) Extensions of credit secured by a perfected
security interest in a segregated deposit account
in the lending bank.
(iv) The exceptions in this paragraph (d)(3) apply
only to the amount of such extensions of credit
that are secured in the manner described herein.

FINAL RULE—AMENDMENT
TO RULES
REGARDING DELEGATION OF AUTHORITY

Section 2 6 5 . 5 — F u n c t i o n s delegated to
Secretary of the Board.

(c)

^

(3) Application approval under section 5(d)(3) of the
FDI Act. To approve applications pursuant to section 5(d)(3) of the Federal Deposit Insurance Act
(12 U.S.C. 1815(d)(3)), in those cases in which the
appropriate Federal Reserve Bank concludes that,
because of unusual considerations, or for other good
cause, it should not take action.
3. In section 265.6, paragraph (c)(5) is removed.

ORDERS ISSUED UNDER BANK
COMPANY ACT

HOLDING

Orders Issued Under Section 3 of the Bank
Holding Company Act
First Fidelity Bancorporation
Lawrenceville, N e w Jersey
B a n c o Santander, S . A .
Madrid, Spain
Order Approving the Acquisition of a Bank

The Board of Governors is amending 12 C.F.R. Part
265, its Rules Regarding Delegation of Authority, in
order to delegate to the Secretary of the Board, and to
repeal with respect to the General Counsel of the
Board acting with the concurrence of the Director of
the Division of Banking Supervision and Regulation,
the authority to approve certain transactions requiring
the approval of the Board pursuant to section 5(d)(3) of
the Federal Deposit Insurance Act (FDI Act). This
amendment will align the Board's procedures for approving "Oakar" transactions with those procedures
used to approve other types of applications involving a
director interlock with a Federal Reserve Bank.
Effective May 3, 1993, 12 C.F.R. Part 265 is
amended as follows:




First Fidelity Bancorporation, Lawrenceville, New
Jersey ("First Fidelity"), 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 Northeast Bancorp,
Inc., New Haven, Connecticut ("Northeast"), and
thereby indirectly acquire Union Trust Company,
Stamford, Connecticut ("Union Trust"), a state nonmember bank. 1 Banco Santander, S.A., Madrid, Spain

1. The proposal is structured as a merger of First Fidelity's wholly
owned subsidiary, FFB Newco, Inc. ("Newco"), with and into
Northeast pursuant to alternative plans of merger. The first plan,
which would be implemented if the merger is approved by both classes

Legal Developments

("Santander"), which controls First Fidelity within
the meaning of the BHC Act, 2 also has applied under
section 3 of the BHC Act to acquire Northeast and
Union Trust.
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 4171, 12,038 (1993)).
The time for filing comments has expired, and the
Board has considered the applications and all comments received in light of the factors set forth in
section 3(c) of the BHC Act.
First Fidelity, with total consolidated assets of approximately $31.5 billion, is the largest commercial
banking organization in New Jersey, controlling
22.2 percent of commercial bank deposits in the state. 3
First Fidelity operates six subsidiary banks in New
Jersey, Pennsylvania, and New York, 4 and engages
through its subsidiaries in a broad range of banking
and permissible nonbanking activities. Santander,
with total consolidated assets of approximately
$60.3 billion, is the fifth largest banking organization in
Spain and the 95th largest banking organization in the

of Northeast's common stock, provides that all shares of Northeast
would be converted into shares of First Fidelity common stock, and
that the shares of Newco would be converted into shares of Northeast
as the surviving corporation. The second plan of merger would be
implemented if the transaction is approved by the holders of Northeast's voting common stock but not by the holders of its nonvoting
common stock. Under the second plan, Northeast's nonvoting common stock would remain outstanding, Northeast's voting common
stock would be converted into shares of First Fidelity common stock,
and the shares of Newco would be converted into shares of Northeast
stock. Newco has no assets or operations, and was formed for the
purpose of consummating this transaction.
First Fidelity also seeks the Board's approval to acquire up to
24.9 percent of Northeast's voting common stock pursuant to the
exercise of a conditional stock option granted by Northeast to First
Fidelity. The option is exercisable if Northeast receives an acquisition
proposal from a third party, and in certain other circumstances.
2. Santander currently holds approximately 16 percent of the
outstanding voting shares of First Fidelity, and would hold approximately 19 percent of First Fidelity's voting shares upon consummation of this proposal. After consummation, Santander's ownership
interest in First Fidelity could increase to approximately 24 percent
upon exercise of all First Fidelity warrants held by Santander.
Moreover, Santander representatives serve on the board of directors
of First Fidelity, and Santander has proposed to provide certain
management assistance to First Fidelity. See Banco de Santander,
S.A. de Credito, 78 Federal Reserve Bulletin 72 (1992).
3. Asset data for First Fidelity and Northeast are as of December 31,
1992; state deposit and ranking data are as of September 30, 1992.
First Fidelity also is the sixth largest commercial banking organization
in Pennsylvania, controlling 6 percent of commercial bank deposits in
the state, and the 45th largest commercial banking organization in
New York, controlling less than 1 percent of commercial bank
deposits in the state.
4. First Fidelity is in the process of merging all of its New Jersey
banking operations into First Fidelity Bank, N.A., New Jersey,
Newark, New Jersey, and all of its Pennsylvania banking operations
into Fidelity Bank, N.A., Philadelphia, Pennsylvania. First Fidelity's
sole New York bank subsidiary is First Fidelity Bank, N.A., New
York, Bronx, New York.




623

world. 5 In the United States, Santander operates a
branch in New York, New York, and an agency and an
Edge corporation in Miami, Florida. 6 Northeast, with
total consolidated assets of approximately $2.7 billion,
is the third largest commercial banking organization in
Connecticut, controlling 9.9 percent of commercial
bank deposits in the state.
Douglas Amendment

Analysis

Section 3(d) of the BHC Act, the Douglas Amendment, prohibits the Board from approving an application by a bank holding company to acquire, directly or
indirectly, any voting shares of, or interest in, any
bank located outside the state in which the operations
of the bank holding company's bank subsidiaries are
principally conducted ("home state"), unless the acquisition "is specifically authorized by the statute laws
of the State in which such bank is located, by language
to that effect and not merely by implication." 7 For
purposes of the Douglas Amendment, First Fidelity's
home state is New Jersey. 8
In order to approve these applications, the Board
must determine that, under Connecticut law, a Connecticut bank and bank holding company may be
acquired by an out-of-state bank holding company.
The statute laws of Connecticut expressly authorize
the acquisition of a bank located in Connecticut by an
out-of-state domestic bank holding company, if the
second state authorizes the acquisition of a bank in
that state by a Connecticut bank holding company on
a reciprocal basis. 9 The interstate banking laws of
New Jersey expressly authorize the acquisition of a
bank on a reciprocal basis by a Connecticut bank

5. Asset and ranking data for Santander are as of December 31,
1991, and employ exchange rates then in effect.
6. Santander also controls Banco de Santander-Puerto Rico, S.A.,
Hato Rey, Puerto Rico, and Santander National Bank, Bayamon,
Puerto Rico, and owns a minority, noncontrolling interest in The
Royal Bank of Scotland Group pic, Edinburgh, Scotland, a bank
holding company within the meaning of the BHC Act. See Banco de
Santander, S.A. de Credito, 78 Federal Reserve Bulletin 60 (1992).
7. 12 U.S.C. § 1842(d).
8. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
9. Under Connecticut's interstate banking statute, any out-of-state
bank holding company may, with the approval of the Connecticut
banking commissioner, acquire ownership or control of all or part of
the voting stock of a Connecticut bank or bank holding company if the
laws of the state in which the operations of the acquiring bank holding
company's bank subsidiaries are principally conducted expressly
authorize, under conditions no more restrictive than those imposed
under Connecticut law, the acquisition by a Connecticut bank holding
company of a bank or bank holding company having its principal place
of business in that other state. Conn. Gen. Stat. Ann. § 36-553 (West
Supp. 1992).

624

Federal Reserve Bulletin • June 1993

holding company. 10 The Banking Commissioner for
the State of N e w Jersey has determined that Connecticut has reciprocal legislation in effect for purposes of
N e w Jersey's interstate banking statute, and has advised First Fidelity that the New Jersey Department of
Banking has no objection to the proposal. In applying
the Douglas Amendment to Santander, the Board has
considered, in addition to the New Jersey statute, the
interstate banking laws of Rhode Island and New
York, 11 which also provide for interstate banking on a
reciprocal basis, and which contain provisions comparable to Connecticut's interstate banking law. 12
After careful review of the relevant statutes, and in
light of all the facts of record, the Board has concluded
that the proposed acquisition of Northeast is specifically authorized by Connecticut's interstate banking
statute, and that the Board's approval of this proposal
is therefore not prohibited by the Douglas Amendment. Approval of the proposed transaction is conditioned, however, upon the receipt by First Fidelity and
Santander of all required state regulatory approvals.

10. Under New Jersey law, an out-of-state bank holding company
may acquire control of a bank located in New Jersey if the acquiring
bank holding company is located in a reciprocal state (i.e., a state
which allows New Jersey bank holding companies to acquire banks or
bank holding companies located in that state on terms and conditions
substantially the same as those applicable to such an acquisition by
banks and bank holding companies located in that state), and more
than 50 percent of the total aggregate deposits controlled by the
acquiring bank holding company's bank subsidiaries are held by bank
subsidiaries located in reciprocal states. N.J. Stat. Ann. § 17:9A-371
(West Supp. 1992).
11. Santander is subject to the Douglas Amendment directly because it is a bank holding company within the meaning of the BHC
Act, and indirectly because it is a foreign bank subject to the
International Banking Act (12 U.S.C. § 3101 et seq.) ("IBA").
12. Under Rhode Island law, an out-of-state bank or bank holding
company may acquire ownership or control of the voting stock of a
Rhode Island bank or bank holding company if the laws of the state in
which the acquiring bank is located, or the laws of the state in which
the operations of the acquiring bank holding company's bank subsidiaries are principally conducted, expressly authorize, under conditions no more restrictive than those imposed under Rhode Island law,
the acquisition by a Rhode Island bank or bank holding company of a
bank located in that other state, or of a bank holding company the
operations of whose bank subsidiaries are principally conducted in
that other state. R.I. Gen. Laws § 19-30-2 (1989).
Under New York law, an out-of-state bank holding company may
acquire control of a bank located in New York if the New York
Superintendent of Banking determines that the statute laws of the
state in which the operations of the out-of-state bank holding company's banking subsidiaries are principally conducted specifically
authorize the acquisition of control of a bank in that state by a bank
holding company the operations of whose banking subsidiaries are
principally conducted in New York, and that the conditions or
restrictions applicable to an interstate acquisition would apply with
equal effect to an in-state acquisition. N.Y. Banking Law § 142-b
(McKinney 1990). In connection with the processing of these applications, the Federal Reserve Bank of New York has been advised by the
New York Banking Department that Connecticut's interstate banking
law is non-discriminatory and reciprocal with New York's interstate
banking law, and that New York law would not prevent a bank holding
company, the operations of whose banking subsidiaries are principally
conducted in Connecticut, from acquiring control of a bank having its
principal office in New York.




Supervisory

Considerations

Under section 3 of the BHC Act, as amended by the
Foreign Bank Supervision Enhancement Act of
1991,13 the Board may not approve an application
involving a foreign bank unless the bank is "subject to
comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in the
bank's home country." 14 The Board recently determined, in an application under the International Banking Act (12 U.S.C. § 3101 et seq.) ("IBA"), that another Spanish credit institution, Banco de Sabadell,
S.A., Sabadell, Spain ("Banco de Sabadell"), was
subject to comprehensive consolidated supervision by
its home country authorities. 15 Santander has represented to the Board that it is subject to the same
regulatory scheme applicable to Banco de Sabadell,
and has furnished additional information regarding the
authorities' ability to supervise and regulate the activities of Santander on a worldwide, consolidated basis.
The Board has reviewed this information, as well as
the information previously received as it may apply to
Santander. Based on all the facts of record, which
include the information described above, the Board
has concluded that Santander is subject to comprehensive supervision and regulation on a consolidated basis
by its home country supervisor.
In addition, Santander has committed that, to the
extent not prohibited by applicable law, it will make
available to the Board such information on the operations of Santander and any of its affiliates that the
Board deems necessary to determine and enforce
compliance with the BHC Act, the IBA, and other
applicable federal law. Santander also has committed
to cooperate with the Board to obtain any waivers or
exemptions that may be necessary in order to enable
Santander to make any such information available to
the Board. In light of these commitments and other
facts of record, 16 the Board has concluded that

13. Pub. L. No. 102-242, § 201 et seq. 105 Stat. 2286 (1991).
14. 12 U.S.C. § 1842(c)(3)(B). As provided in Regulation Y, the
Board determines whether a foreign bank is subject to consolidated
home country supervision under the standards set forth in Regulation
K. 12 C.F.R. 225.13(b)(4). Regulation K provides that a foreign bank
may be considered subject to consolidated supervision if the Board
determines that the bank is supervised or regulated in such a manner
that its home country supervisor receives sufficient information on the
worldwide operations of the foreign bank, including the relationship of
the bank to its affiliates, to assess the foreign bank's overall financial
condition and compliance with law and regulation. 12 C.F.R.
211.24(c)(1)(h).
15. See Banco de Sabadell, S.A., 79 Federal Reserve Bulletin 366
(1993).
16. In this regard, the Board notes that it previously has reviewed
relevant provisions of Spanish confidentiality, secrecy, and other
laws. See Banco de Sabadell, S.A.,19 Federal Reserve Bulletin 366
(1993).

Legal Developments

Santander has provided adequate assurances of access
to any appropriate information the Board may request.
Competitive, Banking, and Convenience
Considerations

and Needs

Santander and Northeast compete directly in the Metropolitan New York-New Jersey banking market. 17
Upon consummation of this proposal, Santander
would remain the fifth largest commercial banking or
thrift organization in the market, controlling less than
5.5 percent of the total deposits in depository institutions in the market. 18 After considering the number of
competitors remaining in this market, the relatively
small increase in concentration as measured by the
Herfindahl-Hirschman Index ("HHI"), 1 9 and other
facts of record, the Board has concluded that consummation of this proposal would not have a significantly
adverse effect on competition in the Metropolitan New
York-New Jersey banking market or any other relevant banking market.
Considerations relating to the financial and managerial resources and future prospects of First Fidelity,
Santander, Northeast, and their respective subsidiaries, as well as convenience and needs considerations
and other supervisory factors the Board is required to
consider under section 3 of the BHC Act, also are
consistent with approval of these applications. 20

17. The Metropolitan New York-New Jersey banking market is
approximated by New York City; Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, and Westchester Counties in New York;
Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris,
Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in
New Jersey; and portions of Fairfield County in Connecticut. Under
the revised Department of Justice Merger Guidelines, 49 Federal
Register 26,823 (1984), this market is considered unconcentrated.
18. For purposes of this analysis, deposits held by bank subsidiaries
of First Fidelity are considered to be controlled by Santander. 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, 15 Federal Reserve Bulletin 386
(1989); National City Corporation, 70 Federal Reserve Bulletin 743
(1984). Thus, for purposes of this analysis, deposits of thrift institutions are included at 50 percent.
19. Upon consummation of this proposal, the HHI in the Metropolitan New York-New Jersey banking market would increase by
5 points to 560.
20. The Board notes that Santander's capital is in excess of the
minimum levels that would be required by the Basle Accord, and is
considered equivalent to the capital that would be required of a United
States bank holding company.
The Board also has considered the records of performance under
the Community Reinvestment Act (12 U.S.C. § 2901 et seq.)
("CRA") of the United States banks, branches, and agencies controlled by Santander. Although the Board has identified certain
weaknesses in the CRA record of one of Santander's bank subsidiaries, these deficiencies are being addressed by Santander with the
primary Federal regulator for this institution, the Office of the Comptroller of the Currency, and, in light of all the facts of record, do not
reflect so adversely upon the convenience and needs considerations as
to warrant denial of these applications.




625

Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The Board's approval is
specifically conditioned upon compliance with all of
the commitments made by First Fidelity and
Santander in connection with these applications and
with the conditions referred to in this Order. For
purposes of this action, the commitments and conditions relied on in reaching this decision shall be
deemed to be conditions imposed in writing by the
Board and, as such, may be enforced in proceedings
under applicable law.
The transactions approved in this Order 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 Federal
Reserve Bank of Philadelphia or the Federal Reserve
Bank of New York, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
April 2, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips.
BARBARA R . LOWREY

Associate

Secretary

of the Board

Intervest Bancshares Corporation
New York, New York
Order Approving Formation of a Bank
Company

Holding

Intervest Bancshares Corporation, New York, New
York ("Intervest"), has applied under section 3(a)(1)
of the Bank Holding Company Act, 12 U.S.C.
§ 1842(a)(1) ("BHC Act"), to become a bank holding
company by acquiring at least 69.6 percent of the
voting shares of Countryside Bankers, Clearwater,
Florida ("Bank").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 11,056 (1993)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
Intervest is a non-operating company formed for the
purpose of acquiring Bank. Bank is the 149th largest
commercial banking organization in Florida, controlling deposits of approximately $23.2 million, repre-

626

Federal Reserve Bulletin • June 1993

senting less than 1 percent of total deposits in commercial banks in the state. 1
Intervest and Bank do not compete directly in any
banking market. Accordingly, based on all the facts of
record in this case, consummation of this proposal
would not have a significantly adverse effect on competition or the concentration of banking resources in
any relevant banking market. The financial and managerial resources 2 and future prospects of Intervest
and Bank, and other supervisory factors that the
Board is required to consider under section 3 of the
BHC Act are also consistent with approval of this
proposal. In this regard, the Board notes that Intervest
will provide substantial additional capital to Bank as a
result of this proposal.
The Board has also considered factors relating to the
convenience and needs of the communities to be
served. The Board notes that Bank will be under new
ownership as a result of this proposal and that Intervest
will initiate a number of steps to improve substantially
the performance of Bank under the Community Reinvestment Act, 12 U.S.C. § 2901 et seq. ("CRA").
These measures will address specific deficiencies identified in previous examinations of Bank's CRA performance record. 3 In general, the Statement of the Federal
Financial Supervisory Agencies Regarding the Community Reinvestment Act indicates that commitments for
future corrective actions offered in the applications
process will not be sufficient to overcome a seriously
deficient CRA record. 4 In this case, however, the
inadequate CRA record does not reflect the actions of
the proposed new owners, and they have committed to
take steps to correct deficiencies in the CRA performance in a timely fashion. Intervest's progress will be
monitored by the Federal Reserve Bank of Atlanta and
reviewed by the Board in future applications to establish a depository facility.

In light of all the facts of record, including the CRA
measures to be initiated, the Board believes that
considerations relating to the convenience and needs
of the community to be served are consistent with
approval. The Board expects Intervest to implement
corrective measures regarding Bank's CRA performance, and the Board's decision is specifically conditioned upon compliance with the CRA commitments
and plans submitted by Intervest.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The Board's approval of this
transaction is specifically conditioned upon compliance with all of commitments made by Intervest in
connection with this application, including commitments and initiatives relating to Bank's CRA performance. For purposes of this action, the commitments
and conditions relied upon by the Board in reaching its
decision are both commitments imposed in writing by
the Board in connection with its findings and decision,
and, as such, may be enforced in proceedings under
applicable law.
The 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 Federal Reserve Bank
of Atlanta, pursuant to delegated authority.
By order of the Board of Governors, effective
April 26, 1993.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, and Phillips. Absent and not voting:
Governors Mullins and Lindsey.
JENNIFER J. JOHNSON

Associate

Secretary of the Board

Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
1. State data are as of June 30, 1992.
2. The Board has carefully reviewed comments from two individuals maintaining that Intervest's principals lack banking experience and
familiarity with Bank's community. Intervest has responded that it
plans to retain existing management of Bank, which has a substantial
knowledge of the local community. In addition, the record indicates
that Intervest's principals will be actively involved in ascertaining
local credit needs. The Board expects that Bank will at all times be
staffed with competent and experienced management, and notes that,
for the next two years, Intervest and Bank will be subject to the
requirements contained in section 914 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989, which provide that
notice must be given to the appropriate federal banking agency prior
to the addition or replacement of any senior executive officers of
Intervest or Bank. Based on all the facts of record, the Board
concludes that these comments do not warrant denial of Intervest's
application.
3. These examinations were conducted by the Federal Reserve
Bank of Atlanta as of May 1992 and March 1993.
4. See 54 Federal Register 13,742 (1989).




Mellon Bank Corporation
Pittsburgh, Pennsylvania
Order Approving Acquisition of a Bank Holding
Company, Formation of a Bank Holding Company,
and Application to Engage in Nonbanking
Activities
Mellon Bank Corporation, Pittsburgh, Pennsylvania
("Mellon"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"),
has applied under section 3(a)(3) of the BHC Act
(12 U.S.C. § 1842(a)(3)) to acquire Boston Group
Holdings, Inc., New York, New York ("BGH"), and
thereby to acquire indirectly The Boston Company,

Legal Developments

Boston, Massachusetts ("TBC"), a subsidiary of
BGH, and Boston Safe Deposit & Trust Company,
Boston, Massachusetts ("BSD&T"), a subsidiary of
TBC.'
Mellon also has applied under section 4(c)(8) of the
BHC Act and section 225.23 of the Board's Regulation Y (12 C.F.R. 225.23) to acquire The Boston
Company Advisors, Inc. ("TBC Advisors"), a subsidiary of BGH and TBC, and to engage through TBC
Advisors in providing administrative and certain other
services to mutual funds. This is an activity the Board
has not previously considered under section 4(c)(8) of
the BHC Act. In addition, Mellon has applied under
section 4(c)(8) to acquire the other nonbanking subsidiaries of BGH listed in Appendix B to this Order and
thereby engage in making and servicing loans; providing trust services; and providing investment advisory
services pursuant to sections 225.25(b)(1), (b)(3), and
(b)(4) of the Board's Regulation Y (12 C.F.R.
225.25(b)(1), (b)(3), and (b)(4)).

Douglas

627

Amendment

Section 3(d) of the BHC Act, the Douglas Amendment, prohibits the Board from approving an application by a bank holding company to acquire any bank
located outside of the bank holding company's home
state, unless such acquisition is "specifically authorized by the statute laws of the State in which such
bank is located, by language to that effect and not
merely by implication." 3 For purposes of the Douglas
Amendment, Mellon's home state is Pennsylvania.
The Massachusetts Banking Code expressly authorizes the acquisition of a Massachusetts bank by an
out-of-state bank holding company if the laws of the
state in which the subsidiary banks of the out-of-state
bank holding company principally conduct business
allow Massachusetts banking organizations to acquire
banks in that state. 4 The statute laws of Pennsylvania
expressly authorize the acquisition of a banking institution or bank holding company located in Pennsylvania by a bank holding company located in another
state, if that other state authorizes the acquisition of a
financial institution on a reciprocal basis by a Pennsylvania bank holding company. 5 Based on all the facts of
record, the Board concludes that approval of this
proposal is not prohibited by the Douglas Amendment. 6

Mellon also has given notice pursuant to section
4(c)(13) of the BHC Act and section 211.5(c) of the
Board's Regulation K (12 C.F.R. 211.5(c)) of its intent
to acquire indirect control of Boston Safe Deposit and
Trust Company (U.K.) Limited, London, England;
Premier Unit Trust Administration Limited, London,
England; and The Boston Company Advisors (Bermuda) Ltd., Hamilton, Bermuda. These companies engage in activities that are permissible under section
211.5(d) of Regulation K (12 C.F.R. 211.5(d)).
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (57 Federal Register 62,346 (1992)). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in sections 3(c)
and 4 of the BHC Act.
Mellon, with total consolidated assets of $31.5 billion, operates subsidiary banks in Pennsylvania, Delaware, and Maryland. 2 BGH has total consolidated
assets of $8.7 billion and engages in providing institutional trust and custody services, institutional investment management services, and private banking services.

The Board has received comments from organizations
supporting approval of these applications based on
Mellon's record of performance under the Community

1. BSD&T became a bank for purposes of the BHC Act upon
enactment of the Competitive Equality in Banking Act of 1987
("CEBA"), but its ownership by BGH and TBC was grandfathered
under section 101(c) of CEBA. Upon consummation of this transaction, TBC and BGH will become subject to the provisions of the BHC
Act, and each has applied under section 3(a)(1) of the BHC Act to
become a bank holding company. Mellon would purchase BGH from
Shearson Lehman Brothers ("Shearson"), a subsidiary of American
Express. As part of this transaction, Shearson will also acquire stock
and warrants to acquire stock of Mellon.
2. Asset and state banking data are as of December 31, 1992, and
June 30, 1992, respectively.

3. 12 U.S.C. § 1842(d).
4. Mass. Gen. Laws Ann. ch. 167A, § 2. The Massachusetts statute
also conditions entry on the requirement that the out-of-state bank
holding company not hold more than 15 percent of the total deposits,
exclusive of foreign deposits, held by all state and federally chartered
banks in the commonwealth and Massachusetts branches of banks
existing by authority of a foreign country. Upon consummation of this
transaction, Mellon would hold approximately 7.4 percent of the
banking deposits in Massachusetts.
5. Pa. Stat. Ann. tit. 7, § 116 (Purdon 1992).
6. Approval of this proposal is conditioned upon Mellon's receiving
all required state regulatory approvals.




Financial, Managerial,
Factors

and Other

Supervisory

The Board also concludes that the financial and managerial resources and future prospects of Mellon and
BGH and their respective subsidiaries, and the other
supervisory factors that the Board must consider
under section 3 of the BHC Act, are consistent with
approval. The competitive factors under section 3 are
also consistent with approval.
Convenience

and Needs

Factors

628

Federal Reserve Bulletin • June 1993

Reinvestment Act
(12 U.S.C. § 2901 et
seq.)
("CRA"), and from an individual ("Protestant") criticizing the CRA performance of Mellon and accusing
Mellon of discriminating against residents of lowincome areas of North Philadelphia in the provision of
banking services, including housing-related loans.
The Board has carefully reviewed the CRA performance records of Mellon and TBC and their subsidiary
banks, as well as all comments received regarding
these applications, including Mellon's response to
those comments, and all of the other relevant facts of
record in light of the CRA, the Board's regulations,
and the Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement"). 7 The Board
notes that all of Mellon's subsidiary banks have been
examined for CRA performance and have received
"outstanding" or "satisfactory" ratings during their
most recent CRA examinations. In particular, Mellon's lead subsidiary bank, Mellon Bank, N.A., Pittsburgh, Pennsylvania ("Mellon Bank"), received a
"satisfactory" rating for CRA performance from the
Office of the Comptroller of the Currency ("OCC") in
July 1991. The Board further notes that this CRA
examination of Mellon Bank found no evidence of
practices intended to discourage applications for credit
and no evidence of the types of illegal discrimination
alleged by Protestant. 8 On the basis of all of the facts
of record, including information provided by the Protestant, the OCC, and the other commenters supporting
Mellon's CRA performance, the Board concludes that
the convenience and needs considerations, including
the CRA performance records of all bank subsidiaries,
are consistent with approval of these applications.
Nonbanking Activities
Mutual Funds

Serving as Administrator

to

One of the nonbanking companies Mellon will indirectly acquire, TBC Advisors, engages in a variety of
activities with mutual funds that have not been previously approved by the Board. TBC Advisors currently
provides a number of administrative and advisory
services to 84 different open-end investment companies ("mutual funds") and 14 different closed-end

7. 54 Federal Register 13,742 (1989).
8. Protestant also criticizes Mellon's failure to provide a specific
loan to Protestant that was intended by Protestant to be part of a
program to create housing and jobs in black and Hispanic low- and
moderate-income sections of Philadelphia. Protestant has raised many
of these claims in a lawsuit filed in federal court. The district court for
the Eastern District of Pennsylvania sustained Mellon's motion to
dismiss Protestant's lawsuit, and Protestant has appealed the court's
decision. The Board believes that the courts will afford an adequate
remedy to Protestant if one is warranted.




investment companies in the United States. 9 Over
95 percent of TBC Advisors's business represents the
provision of administrative services to funds that are
advised by other unaffiliated companies. Mellon proposes to continue to provide these services through
TBC Advisors.
The administrative services provided to mutual
funds and closed-end funds by TBC Advisors include
computing the fund's net asset value and performance
data, coordinating communications and activities between the investment advisor and the other service
providers, accounting and recordkeeping, disbursing
payments for fund expenses, providing office space for
the funds, and preparing and filing tax and regulatory
reports for the funds. In connection with these administrative services, TBC Advisors often provides employees that become officers or directors of the funds.
TBC Advisors also provides investment advisory services in combination with administrative services to a
small group of funds. 10

I. Glass-Steagall Act
The administrative services that Mellon proposes to
provide through TBC Advisors and its affiliates raise a
number of issues under the Glass-Steagall Act. Under
the Glass-Steagall Act, a company that owns a member
bank may not control "through stock ownership or in
any other manner" a company that engages principally
in distributing, underwriting or issuing securities. 11
In 1972, the Board issued an interpretive rule that
explained the Board's view that the provisions of the
Glass-Steagall Act govern the relationship between
mutual funds and companies that own member banks
because mutual funds engage continuously in issuing
and redeeming securities. 12 The Board found that the
Glass-Steagall Act prohibited affiliates of banks from
sponsoring, organizing, or controlling mutual funds 13
or distributing their shares.

9. All of these investment companies are registered under the
Investment Company Act of 1940 (15 U.S.C. § 80a-l et seq.).
10. In addition, BSD&T often serves as custodian to a mutual fund
and might serve as custodian in cases where TBC Advisors is the
mutual fund's administrator or advisor. A complete list of the proposed administrative services is attached as Appendix A.
11. 12 U.S.C. §§ 221a, 377.
12. 12 C.F.R. 225.125.
13. The Board found, on the other hand, that the prohibitions of the
Glass-Steagall Act did not apply to closed-end funds as long as the
closed-end fund was not engaged frequently in the issuance, sale or
distribution of securities. On this basis, the Board has by regulation
authorized bank holding companies to sponsor, organize, and manage
closed-end funds. 12 C.F.R. 225.25(b)(4)(ii). A closed-end fund that is
controlled by a bank holding company must conform its activities and
investments to the requirements of section 4 of the BHC Act. Mellon
has committed that if it sponsors, organizes, or controls any closedend fund Mellon will limit any such fund's investments to less than
5 percent of the voting shares of any issuer.

Legal Developments

The Board also found, however, that the GlassSteagall Act does not prohibit all relationships between a bank holding company and a mutual fund. In
particular, the Board determined that it was permissible under the BHC Act and the Glass-Steagall Act for
bank holding companies to provide investment advice
to mutual funds. In addition, the Board found that the
Glass-Steagall Act did not prohibit bank holding companies from providing certain other services to mutual
funds, such as acting as custodian, transfer agent, or
registrar. The Board imposed a number of restrictions
on the relationship between bank holding companies
and mutual funds in order to avoid conflicts of interest
and to address potential safety and soundness concerns. 14
Thus, banks and affiliates of banks may currently
perform four of the six major services needed by a
mutual fund: they may serve as investment advisor,
transfer agent, custodian, and registrar. They may not
act as distributor to the fund. This application raises
the question whether it is consistent with the GlassSteagall Act for an affiliate of a member bank to act as
administrator to a mutual fund.

Permissibility of Proposed Activities
Mellon has recognized that certain of the current
activities of TBC Advisors and its affiliates are prohibited by the Glass-Steagall Act, and has taken steps to
discontinue these activities. For example, Mellon proposes to terminate the role of TBC Advisors as a
sponsor of new mutual funds. In addition, Mellon will
not acquire the subsidiaries of TBC that engage in the
distribution of mutual fund shares. 15 At this time,

14. The Board's rule includes restrictions that prevent a bank
holding company or any of its subsidiaries from:
(1) Acting as investment advisor to an investment company that has
a name similar to the holding company or any of its subsidiary
banks,
(2) Purchasing for its own account shares of any investment
company for which the holding company serves as investment
advisor,
(3) Purchasing in its sole discretion in a fiduciary capacity shares of
an investment company advised by the holding company,
(4) Extending credit to an investment company advised by the
holding company,
(5) Accepting shares of an investment company advised by the
holding company as collateral for a loan used to purchase shares of
the investment company.
In addition, the rule requires that, in cases in which a customer
purchases or sells securities of the fund through the holding company
or is advised by the holding company to purchase shares of the fund,
the customer be informed in writing of the involvement of the holding
company with the fund, and be informed that the shares of the fund are
not federally insured, and are not guaranteed by, or obligations of, a
bank.
15. Mellon will not be involved in the distribution of the shares of
any mutual fund. Mellon has represented to the Board that following
the acquisition of BGH by Mellon, neither TBC Advisors nor any of
its affiliates would be obligated by any agreement to engage in any




629

Mellon does not propose to provide administrative
services to mutual funds that are marketed and sold
primarily to customers of BSD&T or any of Mellon's
other subsidiary banks.
The Board believes that Mellon's proposal to provide the administrative services described in Appendix
A to mutual funds is permissible under the GlassSteagall Act. A mutual fund administrator provides
services that are primarily ministerial or clerical in
nature, and does not have policy-making authority or
control over the mutual fund. 16 The policy-making
functions rest with the board of directors of the fund,
which is responsible for the selection and review of the
major contractors to the fund, including the investment advisor, and under certain circumstances, the
administrator. The Investment Company Act of 1940
(the "1940 Act") requires that these contracts be
reviewed at least annually by the board of directors of
the mutual fund, and that these contracts be terminable by the board of directors on no more than 60 days
written notice. 17 In addition, the 1940 Act requires that
at least 40 percent of the board of directors of a mutual
fund be comprised of disinterested individuals who are
not affiliated with the investment advisor, with any
person that the SEC has determined to have a material
business or professional relationship with the fund,
with any employee or officer of the fund, with any
registered broker or dealer, or with any other interested or affiliated person. 18 These unaffiliated board
members must approve the fund's contracts with its
investment advisor, underwriter, and often its administrator. Mellon has committed that, following its
acquisition, TBC Advisors will provide administrative
services only to mutual funds whose boards of directors consist of a majority of disinterested persons.

sales activities with regard to any mutual fund's shares, and would not
into enter any distribution agreement with any mutual fund unless
permitted to do so by a change in current law. TBC Advisors will not
engage in the development of marketing plans except to give advice to
the distributor regarding regulatory compliance. Mellon has also
represented to the Board that TBC Advisors will not engage in
advertising activities with respect to the funds and will not be involved
in the preparation of a fund's sales literature, except to review such
sales literature for the sole purpose of ensuring compliance with all
pertinent regulatory requirements. Employees of TBC Advisors
would present information about the operations of a fund at meetings
or seminars for brokers of a fund, but sales activities, if any, at such
events would be conducted solely by the fund's distributer.
16. The administrator is usually compensated according to a formula that is dependent on the amount of assets in the fund, rather than
on a negotiated fee basis. This formula for compensation would not
appear to create the subtle hazards at which the Glass-Steagall Act
was aimed that are associated with having a salesman's stake in the
fund. The administrator is not involved in the promotion or sale of the
fund's shares, and is charged with completing largely ministerial
duties that do not require or involve contact with the public in a
promotional or sales role.
17. 15 U.S.C. § 80a-15.
18. 15 U.S.C. §§ 80a-2, 80a-10.

630

Federal Reserve Bulletin • June 1993

Mellon also proposes, in situations in which Mellon
subsidiaries serve as administrator to a mutual fund, to
permit one representative of the administrator to serve
as a director of the fund. Mellon contends that an
interlocking director would facilitate its provision of
administrative services to the fund. 19 A director interlock provides the fund with an individual who is
knowledgeable in the operation of the fund and can
directly advise the board of directors on administration.
Mellon proposes to have a director interlock only in
situations in which a company unaffiliated with Mellon
serves as the investment advisor to the mutual fund.
This unaffiliated investment advisor would be an independent and countervailing source of information to
the fund's board of directors. Moreover, Mellon has
represented that, where TBC Advisors serves as the
administrator to a mutual fund, this interlocking director would be deemed to be an interested person and
would be excluded from actions that must be taken by
the disinterested board members, such as approval of
the investment advisory contract and of the administrator's contract. As discussed above, Mellon has also
committed that it will only serve as administrator to
mutual funds for which a majority of the board of
directors are disinterested individuals. Thus, there are
a number of counterbalancing parties and significant
limits on the participation of the administrator's representative on the fund's board of directors. Under
these circumstances, the Board believes that Mellon
would not control a mutual fund if one employee of
TBC Advisors or an affiliate 20 also serves as a director
of a mutual fund to which TBC Advisors provides
administrative services. 21

19. Mellon also proposes that employees of TBC Advisors be
permitted to serve as junior officers (i.e., in positions no higher than
treasurer, secretary of the board, or vice president) or employees of
mutual funds administered by TBC Advisors. The duties of these
lower level officers include preparing agendas and minutes of board
meetings, drafting routine correspondence, signing regulatory filings,
and supervising and reviewing accounting and recordkeeping for the
fund. These individuals have no policy-making authority, though they
may have authority to make routine operational decisions, such as
authorizing the purchase of supplies and the employment of clerical
staff. This proposal would not change the ministerial nature of
Mellon's role as administrator provided that these employees are not
responsible for, or involved in making recommendations regarding,
policy-making functions.
20. This director could not serve as an officer, director, or employee
of Mellon, Mellon Bank, or any subsidiary bank or bank holding
company of Mellon.
21. In a small number of cases, TBC Advisors currently owns shares
in certain mutual funds that it administers. Mellon has proposed to
retain its ownership interest in funds that it currently administers, but,
within two years, to reduce that ownership interest to below 5 percent
of each fund's shares. Mellon proposes to discontinue the practice of
providing seed capital to new mutual funds that it hopes to administer,
although Mellon has requested that it be permitted to purchase up to
5 percent of any fund to which it provides only administrative
services. The Board believes that Mellon's proposal to purchase up to




Mellon also proposes in a small number of cases to
provide mutual funds with a combination of administrative, investment advisory, and other services. 22 The
Board notes that the OCC has expressly permitted
national banks that serve as investment advisor to
mutual funds also to provide some administrative
services to those mutual funds, such as maintaining
records on shareholder accounts, posting and reinvesting dividends in accordance with customer instructions, preparing periodic statements of account, and
transferring and receiving money by wire. 23 In addition, a number of national banks are already providing
these and other services as "sub-administrator" to
mutual funds that are advised by the bank or an
affiliate. 24
As explained above, the Board has already determined that bank holding companies may serve as the
investment advisor to mutual funds, and, therefore,
that a bank holding company that serves as investment
advisor to a mutual fund does not control the fund for
purposes of the Glass-Steagall Act. In the Board's
opinion, permitting a bank holding company that
serves as the investment advisor to a mutual fund also
to provide the essentially ministerial or supporting
functions as administrator to that fund would not
significantly increase the ability of the bank holding
company to control the mutual fund. TBC Advisors
would not, by virtue of becoming administrator to a
fund that it or an affiliate advises, become involved in
policy-making functions of these funds to a greater
extent than when TBC Advisors provides solely investment advisory services.
The Board believes that control of the fund would
continue to rest with the board of directors of the fund,
which would be independent of TBC Advisors. 25 In

5 percent of any fund to which it provides administrative services (but
not investment advisory services) would not significantly increase
Mellon's ability to exercise control over the fund for purposes of the
Glass-Steagall Act. However, the Board conditions its determination
on the requirement that Mellon's ownership of the fund not be used in
any way in marketing or selling the shares of the fund.
22. This proposal does not involve providing both administrative
and investment advisory services to so-called proprietary mutual
funds that are sold primarily to customers of subsidiary banks of
Mellon.
23. See, e.g., Letter dated January 14, 1985, from Legal Advisory
Services Division, Office of the Comptroller of the Currency. See also
Letter dated January 13, 1993, from Director for Bank Supervision
and Analysis, Western District Office, Office of the Comptroller of the
Currency (proposal by a national bank to invest in a partnership that
provides investment advisory and a wide range of administrative
services to mutual funds).
24. These activities appear to involve primarily recordkeeping and
accounting activities, participation in the preparation of documents
needed to comply with regulatory requirements, preparation of documents in connection with shareholder meetings or board of directors
meetings, and the provision of clerical support.
25. When administrative services are provided together with advisory services, Mellon represents that directors who are not considered
interested persons of the investment advisor must also review and

Legal Developments

this regard, Mellon has committed that it will not have
any director or officer interlocks with mutual funds to
which Mellon provides both advisory and administrative services. 26 Moreover, as noted above, Mellon
would provide administrative services only to mutual
funds in which at least a majority of the board of
directors are comprised of disinterested individuals.
In providing this combination of services, Mellon
and TBC Advisors would also be subject to the restrictions set forth in the Board's interpretive rule on
investment advisory activities (12 C.F.R. 225.125). 27
The Board's rule requires any bank holding company
that acts as agent in the purchase or sale of shares of
an investment company advised by a holding company
affiliate, or that recommends the purchase or sale of
such shares to any customer, to disclose to the customer in writing the role of the bank holding company
and its affiliates with the investment company. In
addition, the bank holding company must disclose in
writing that the shares of the investment company are
not federally insured, are not deposits, and are not
obligations of, or guaranteed by, any bank.
The interpretive rule also provides that an investment company advised by a bank holding company not
have a name that is similar to, or a variation of, the
name of any bank holding company or any of its
subsidiary banks. 28 In addition, the Board's rule prohibits a bank holding company from owning shares of
any mutual fund that it advises, from purchasing in a
fiduciary capacity in its sole discretion shares of these
mutual funds, and from lending to any such fund or
accepting shares of such funds as collateral for any
loan for the purpose of acquiring shares of the fund.
Mellon must conform the activities of TBC Advisors
and its affiliates with mutual funds to the Board's rule
within two years of the date of this Order.
On this basis, and subject to the commitments made
by Mellon and compliance with the Board's interpretive rule, the Board believes that Mellon's proposal to
provide both investment advisory and administrative
services to mutual funds is not prohibited by the
Glass-Steagall Act.

approve the administrator's contract. The directors of an investment
company may also terminate these contracts on 60 days notice.
26. Mellon has proposed in these situations to provide a limited
number of employees who may serve as non-officer employees of the
mutual fund. These employees will help in administration of the funds.
These employees will not have any policy-making or decision-making
authority, and will be supervised by independent officers and the
board of directors. The Board believes that these limited employee
interlocks, under the conditions described in this Order, would not
permit Mellon to control the fund.
27. These and certain other provisions of the Board's rule also apply
to Mellon's proposed involvement with closed-end investment companies that it proposes to advise.
28. 12 C.F.R. 225.125(f).




631

II. Bank Holding Company Act
The Board has previously determined by regulation
that a bank holding company may act as investment
advisor to a mutual fund. 29 However, the Board has
not determined whether acting as the administrator for
a mutual fund meets the requirements of section
4(c)(8) of the BHC Act. Under section 4(c)(8) of the
BHC Act, a nonbanking activity is permissible if it is
closely related to banking and a proper incident
thereto.
Under Board and court precedent, an activity is
closely related to banking for purposes of section
4(c)(8) if banks generally:
(1) Conduct the proposed activity;
(2) Provide services that are operationally or functionally so similar to the proposed activity as to
equip them particularly well to provide the proposed
services; or
(3) Provide services that are so integrally related to
the proposed service as to require their provision in
a specialized form. 30
The proposed administrative services consist of,
among other things, maintaining the financial and
corporate records of a mutual fund; computing the net
asset value, dividends, and performance data regarding the fund; providing information about the fund to
the fund's board of directors, outside auditors, and
distributor; coordinating the activities of the fund's
other service providers; preparing regulatory filings
such as tax returns and SEC registration statements;
and reviewing the activities of other service providers
for regulatory compliance. 31
A number of national banks currently provide some
types of administrative services to mutual funds. 32
Banks also provide similar recordkeeping and accounting functions in connection with products such
as individual retirement accounts. National bank trust
departments also perform administrative services for
collective investment funds, trust accounts, and employee benefit plans that are operationally and functionally similar to those that a mutual fund requires. 33

29. 12 C.F.R. 225.25(b)(4).
30. See National Courier Association v. Board of Governors, 516
F.2d 1229, 1237 (D.C. Cir. 1975). The Board may also consider any
other factor than an applicant may advance to demonstrate a reasonable or close connection or relationship to banking. 49 Federal
Register 794, 806 (1984); Securities Industry Ass'n v. Board of
Governors, 468 U.S. 207, 210-11 n.5 (1984).
31. See Appendix A for a complete list of administrative services.
32. See Letter dated January 13, 1993, from Director for Bank
Supervision and Analysis, Western District Office, Office of the
Comptroller of the Currency.
33. See 12 C.F.R. Part 9.

632

Federal Reserve Bulletin • June 1993

The Board also has permitted bank holding companies to provide certain individual services provided by
a mutual fund administrator, including financial data
processing services (such as calculation of investment
values and tax consulting services). 34
For these reasons the Board finds that Mellon's
engaging in the proposed activities is closely related to
banking, and, therefore, a permissible activity for
bank holding companies to provide under section
4(c)(8) of the BHC Act. 3 5 As discussed above, the
provision of administrative services within certain
parameters is not likely to result in the types of subtle
hazards at which the Glass-Steagall Act is aimed or
any other adverse effects. For the same reasons, the
Board finds that the public benefits of engaging in the
proposed administrative activities outweigh the likely
adverse effects and, therefore, that the activities are a
proper incident to banking for purposes of section
4(c)(8) of the BHC Act.
Based on all the facts of record, including all of the
commitments and representations made by Mellon in
this case, and subject to all of the terms and conditions
set forth in this Order, the Board has determined that
the applications should be, and hereby are, approved. 36 The Board's determination is subject to all
of 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 modification or
termination of the activities of a bank holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's regulations and orders issued thereunder. The
Board's decision is specifically conditioned on compliance with all of the commitments and representations
made in these applications, including the commitments
and conditions discussed in this Order. The commitments, representations, and conditions relied on in

34. 12 C.F.R. 225.25(b)(7) and (b)(21).
35. In determining whether an activity is a proper incident to
banking, the Board must consider whether the activity "can reasonably be expected to produce benefits to the public, such as greater
convenience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts of interests, or
unsound banking practices."
The record does not indicate that the proposal would result in
adverse effects such as undue concentration of resources, decreased
or unfair competition, conflicts of interest, or unsound banking
practices. In addition, the proposed activity should benefit from the
operational support that Mellon is able to provide which will create
greater convenience for TBC's mutual fund clients.
36. The Board has also considered Mellon's proposal to acquire
Boston Safe Deposit and Trust Company (U.K.) Limited, Premier
Unit Trust Administration Limited, and The Boston Company Advisors (Bermuda) Ltd., the foreign subsidiaries of TBC. After consideration of all the factors specified in Regulation K and based on all of
the facts of record, the Board has determined that disapproval of these
proposed investments is not warranted.




reaching this decision shall be deemed to be 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 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 Cleveland, acting pursuant to
delegated authority.
By order of the Board of Governors, effective
April 21, 1993.
Voting for this action: Chairman Greenspan and Governors
Kelley, Lindsey, and Phillips. Voting for this action subject
to conditions: Governors Angell and LaWare. Absent and not
voting: Governor Mullins.
JENNIFER J. JOHNSON

Associate

Secretary

of the Board

Appendix A
List of Administrative Services
(1) Maintaining and preserving the records of the fund,
including financial and corporate records;
(2) Computing net asset value, dividends, performance
data and financial information regarding the fund;
(3) Furnishing statistical and research data;
(4) Preparing and filing with the SEC and state securities regulators registration statements, notices, reports and other material required to be filed under
applicable laws;
(5) Preparing reports and other informational materials
regarding the fund including proxies and other shareholder communications and reviewing prospectuses;
(6) Providing legal and regulatory advice to the fund in
connection with its other administrative functions;
(7) Providing office facilities and clerical support for
the fund;
(8) Developing and implementing procedures for monitoring compliance with regulatory requirements and
compliance with the fund's investment objectives,
policies, and restrictions as established by the fund's
board;
(9) Providing routine fund accounting services and
liaison with outside auditors;
(10) Preparing and filing tax returns;
(11) Reviewing and arranging for payment of fund
expenses;
(12) Providing communication and coordination services with regard to the fund's investment advisor,
transfer agent, custodian, distributor and other service

Legal Developments

organizations that render recordkeeping or shareholder communication services;
(13) Reviewing and providing advice to the distributor,
the fund and investment advisor regarding sales literature and marketing plans to assure regulatory compliance;
(14) Providing information to the distributor's personnel concerning fund performance and administration;
(15) Participation in seminars, meetings, and conferences designed to present information to brokers and
investment companies, but not in connection with the
sale of shares of the funds to the public, concerning the
operations of the funds, including administrative services provided by Mellon to the funds;
(16) Assisting existing funds in the development of
additional portfolios; and
(17) Providing reports to the fund's board with regard
to its activities.

Appendix B
Nonbanking Companies to be Acquired
(1) The Boston Finance Company, Boston, Massachusetts, which would engage in making and servicing
loans pursuant to section 225.25(b)(1) of the Board's
Regulation Y;
(2) Boston Safe Deposit and Trust Company of California, Los Angeles, California; and
(3) Boston Safe Deposit and Trust Company of New
York, New York, New York, which would provide
trust services pursuant to section 225.25(b)(3) of the
Board's Regulation Y;
(4) The Boston Company Institutional Investors, Inc.,
Boston, Massachusetts;
(5) The Boston Company of Southern California,
Los Angeles, California;
(6) Boston Hambro Corp., New York, New York;
(7) The Boston Company Financial Strategies Group,
Inc., Boston, Massachusetts;
(8) The Boston Company Financial Strategies, Inc.,
Boston Massachusetts;
(9) The Boston Company Income Securities Advisors,
Inc., Boston, Massachusetts; and
(10) The Boston Company Energy Advisors, Inc.,
Boston, Massachusetts; which would provide investment advisory
services pursuant to
section
225.25(b)(4) of the Board's Regulation Y;
(11) The Boston Company Real Estate Counsel Inc.,
Boston, Massachusetts, which would provide trust
services and investment advisory services pursuant to
sections 225.25(b)(3) and (4) of the Board's Regulaion Y.



Concurring Statement
LaWare

633

of Governors Angell and

We concur in the Board's decision that the administrative services that Applicant proposes to provide to
mutual funds in this case are permissible under the
Glass-Steagall Act and the Bank Holding Company
Act. Banks have been providing investment advisory
services and at least some administrative services to
mutual funds for some time.
However, we believe that an administrator to a
mutual fund should not be permitted to have representation on the board of directors of any mutual fund that
it administers. We are concerned that this representation would permit the administrator to have direct
input into, and participation in, the policy-making
decisions of the board of directors, and creates the
potential for exercise of control over the fund. We
have similar concerns regarding Applicant's proposal
to own shares of mutual funds that it administers.
Accordingly, while we agree with the majority that
the proposal to provide administrative services to
mutual funds either alone or in combination with
investment advisory services, is consistent with the
Glass-Steagall Act, we would condition approval of
this application on a requirement that the Applicant
not have any director interlocks with, or own any
shares of, any mutual fund for which Applicant is the
administrator.
April 21, 1993

Orders Issued Under Federal Reserve Act
T e x a s State Bank
McAllen, Texas
Order Approving

the Establishment

of a Branch

Texas State Bank, McAllen, Texas ("Bank"), a state
member bank, has applied pursuant to section 9 of the
Federal Reserve Act (12 U.S.C. § 321 et seq.) to
establish a branch office at 900 East Jackson Avenue,
McAllen, Texas.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published. The time for filing comments has expired,
and the Board has considered the application and all
comments received in light of the factors set forth in
section 9 of the Federal Reserve Act.
Bank is a subsidiary of Texas Regional Bancshares,
Inc., McAllen, Texas ("Texas Regional"). Bank, with
approximately $375.1 million in deposits, has three

634

Federal Reserve Bulletin • June 1993

offices located throughout McAllen, Texas. 1 This proposal would increase to five the number of offices that
Bank would operate in Hidalgo County, Texas.
In considering an application by a state member
bank to establish an additional branch, the Board is
required to consider the convenience and needs of the
community to be served and to take into account the
institution's record of performance under the Community Reinvestment Act ("CRA"). 2 The CRA requires
the federal financial supervisory agencies to encourage
financial institutions to help meet the credit needs of
the local communities in which they operate consistent
with the safe and sound operation of such institutions.
To accomplish this end, the CRA requires the appropriate federal supervisory authority to "assess the
institution's record of meeting the credit needs of its
entire community, including low- and moderateincome neighborhoods, consistent with the safe and
sound operations of such institution," and to take that
record into account in its evaluation of applications for
deposit facilities.
In connection with this application, the Board has
received comments in support of the proposal from an
individual and the Lower Rio Grande Valley District
Office of the Small Business Administration ("SBA
District Office"). In particular, the SBA District Office
noted Bank's expanded participation with the SBA to
increase aid to the small business community. The
Board also has received comments from an individual
("Protestant") alleging that the proposed branch
would not be located in a low- and moderate-income
area and that Bank is not meeting the credit needs of
the Hispanic community in McAllen, Texas. 3
The Board has carefully reviewed the CRA performance record of Bank, as well as the comments
received, and all the other relevant facts of record, in
light of the Statement of the Federal Financial Supervisory Agencies regarding the Community Reinvestment Act ("Agency CRA Statement"). 4 The Board
also notes that Protestant raised similar allegations
relating to Bank's record of performance under the
CRA in connection with the Board's approval last year
of the applications by Texas Regional and Bank to

1. Deposit data are as of December 31, 1992.
2. See e.g., First American Bank-Ann Arbor, 78 Federal Reserve
Bulletin 450 (1992); see also 12 U.S.C. §§ 321, 2902(3)(c), 2903(2);
12 C.F.R. 208.5.
3. Protestant also states that more Hispanics should be employed or
serve in decision making positions at Bank and in the community in
general. Although the Board fully supports programs designed to
promote equal opportunity in every aspect of a bank's personnel
policies and practices in the employment, development, advancement, and treatment of employees, the Board believes that the alleged
deficiencies in Bank's general personnel and employment practices
are beyond the scope of the factors that the Board may properly
consider under the CRA or the convenience and needs factor.
4. 54 Federal Register 13,742 (1989).




acquire certain banking institutions. 5 Protestant's allegations were reviewed extensively at that time.

Record of Performance Under the CRA
A. CRA Performance Examination
The Agency CRA Statement provides that a CRA
examination is an important, and often controlling,
factor in the consideration of an institution's CRA
record and that these reports will be given great weight
in the application process. 6 Bank received an overall
"satisfactory" rating in the examination of its CRA
performance conducted by the Federal Reserve Bank
of Dallas ("Reserve Bank") as of July 22, 1991 (the
"1991 Examination"). In addition, the Reserve Bank
recently completed another examination of Bank's
CRA performance and has preliminarily concluded
that Bank's record of performance remains "satisfactory" (the "1993 Examination").

B. Aspects of CRA Performance
Policies and Programs. The Board previously concluded in the Texas Regional Order that Bank has in
place the types of programs designed to assist the bank
in meeting the credit needs of its entire community,
including low- and moderate-income neighborhoods.
For example, Bank has appointed a senior official as
its CRA officer. In addition, the CRA program in place
at Bank includes a compliance committee that meets
every two months. The records of this committee
indicate that it actively monitors Bank's consumer
compliance and CRA program.
Ascertainment and Marketing. The 1993 Examination found that Bank is adequately assessing the needs
of its local community. Since the 1991 Examination,
Bank has been involved with more than 180 community and civic organizations in order to ascertain the
needs of its community. Bank also uses radio, television, and newspaper advertisements, and its loan-todeposit ratio reflects a demand for its products. In
addition, Bank has placed brochures printed in both
Spanish and English in the lobbies of each of its offices
as of year-end 1992. The brochure solicits comments
about credit needs, services and deposit needs. In the
Texas Regional Order, the Board noted that Bank
could improve the documentation of its ascertainment
and marketing efforts, and the 1993 Examination found
that Bank had increased its marketing efforts in 1992.

5. Texas Regional Bancshares, Inc., 78 Federal Reserve Bulletin
289 (1992) (the "Texas Regional Order").
6. 54 Federal Register at 13,745.

Legal Developments

Community Development and Lending Activities. In
the Texas Regional Order, the Board also found that
Bank actively participates in projects that support
community development activities. In this regard, the
chairman of Bank's board of directors serves as the
president of McAllen Affordable Homes ("MAH"), a
corporation that provides funds for the development of
subdivisions for first time home buyers with low- to
moderate-incomes. Financing is provided at favorable
interest rates and is funded by Community Development Building Grants, City of McAllen funds, and
loans from local banks including Bank. Moreover,
Bank's executive vice president in charge of lending
serves as president of Ronco Enterprises, Inc., a
corporation that engages in real estate development of
low-income, single family housing, provides counseling to individuals on how to qualify for a mortgage,
and provides assistance in avoiding default. Bank also
has purchased loans from the Harlingen Community
Development Corporation that were made to borrowers in low- and moderate- income areas. In addition,
Bank expanded the terms of its unsecured lending
program from 18 to 24 months because of demand for
such loans. There is no minimum loan amount, and
Bank has reduced certain qualifying ratios for the
loans. Bank also has been involved with the Weslaco
Development Committee, which provides assistance
in increasing business development and employment
opportunities.
With respect to small business lending, Bank continues to participate in government-guaranteed lending
programs, such as those of the Small Business Administration ("SBA"). Since the 1991 Examination, Bank
has become a certified SBA lender, and is the only
certified SBA lender in the community. Since July
1991, SBA loans have increased from $783,000 to
approximately $5 million. This year, Bank also conducted a Small Business Development Workshop with
the SBA and other community organizations that was
attended by a number of small business owners. 7
Location of Branch. Bank's proposed branch will be
located in the southern area of McAllen on a major
thoroughfare that is near four low- and moderateincome census tracts and will offer a full range of
banking services. This area is newly developed and
employs more than 3,000 residents, the majority of
whom are minorities. Bank selected this location after
its ascertainment efforts revealed a need for a branch,
and community contacts that the Reserve Bank ques-

7. Bank has received two new loan requests as a result of the
workshop. Since the 1991 Examination, Bank also has committed
$25,000 to the University of Texas-Pan American and $25,000 to the
Texas State Technical College to establish scholarship funds to be
managed at the discretion of the schools.




635

tioned indicated that this area was not adequately
served by financial institutions.

C. HMD A Data and Lending Practices
The Board has reviewed the 1992 data reported by
Bank under the Home Mortgage Disclosure Act
("HMDA"). 8 These data indicate some disparities in
lending to minorities, including Hispanics, and in
certain low- and moderate-income tracts in McAllen.
The Board is concerned when the record of an
institution indicates disparities in lending to minority
applicants and believes that all banks are obligated to
ensure that their lending practices are based on criteria
that ensure not only safe and sound lending, but also
ensure equal access to credit by creditworthy applicants regardless of race. The Board recognizes, however, that HMDA data alone provide only a limited
measure of any given institution's lending in the communities that the institution serves. The Board also
recognizes that HMDA data have limitations that
make the data an inadequate basis, absent other information, for conclusively determining whether an institution has engaged in illegal discrimination on the basis
of race or ethnicity in making lending decisions.
The Board notes that the 1993 Examination found
no evidence of illegal discrimination or other illegal
credit practices at Bank. In this regard, denied applications reviewed by examiners revealed borrowers
who lacked sufficient income to qualify for the loan
amount requested, had poor credit histories, or had
high debt-to-income ratios. In addition, examiners
noted efforts by Bank to qualify marginal borrowers
for loans. Examiners also reviewed real estate records
in connection with Bank's housing-related lending
activities in certain low- and moderate-income areas.
These records demonstrated that there had been no
houses listed for sale in these low- and moderateincome areas in the past year, and that large portions
of these low- and moderate-income census tracts do
not contain housing that would be available for resale. 9

8. The HMDA requires banks to report certain information regarding loan applications, approvals, and denials to the various banking
agencies and the public. This information includes data on the race,
gender, and income of individual loan applicants, as well as the
location of the property securing the potential loan, and a description
of the application.
9. The 1993 Examination found that Bank needs to improve its use
of data relating to the geographic distribution of Bank's loans. Bank
has recently completed an overall consolidation of its data processing operations required by the acquisitions approved in the
Texas Regional Order. In this regard, the Board expects Bank to
continue its efforts to identify the geographic distribution of its
applications and denials, to analyze this data, and to implement
appropriate steps, if necessary, to assist in meeting the credit needs
of its entire community.

636

Federal Reserve Bulletin • June 1993

D. Conclusion Regarding Convenience and
Needs Factor
The Board has carefully considered the entire record,
including the comments filed in this case, in reviewing
the convenience and needs factor under the CRA.
Based on a review of the entire record of performance,
including information provided by the Protestant and
by Bank, the Board believes that the efforts of Bank to
help meet the credit needs of all segments of the
communities served by Bank, including low- and moderate-income neighborhoods, and all other convenience and needs considerations are consistent with
approval.
On the basis of all the facts of record, including the
Board's determinations in the Texas Regional Order,
the Board concludes that the convenience and needs
considerations, including the CRA performance
record of Bank, are consistent with approval of this
application.
Other

Factors

The Board also has reviewed the other factors it is
required to consider in applications for establishing
and operating branches under the Federal Reserve
Act. 1 0 Based on all the facts of record, the Board
believes that the financial condition of Bank, the
general character of its management, and the proposed
exercise of corporate powers are consistent with approval and the purposes of section 9 of the Federal
Reserve Act.
Based on the foregoing and all of the facts of record,
the Board has determined that this application should
be, and hereby is, approved. The Board's approval is
specifically conditioned upon compliance by Bank
with all the commitments made in connection with this
application. For purposes of this action, the commitments and conditions relied on by the Board in reaching this decision are both conditions imposed in writing by the Board in connection with its findings and
decision, and as such may be enforced in proceedings
under applicable law.
This branch shall be in operation no later than one
year after the effective date of this Order, unless such
period is extended for good cause by the Board or the
Federal Reserve Bank of Dallas, acting pursuant to
delegated authority.
By order of the Board of Governors, effective
April 19, 1993.

10. See 12 U.S.C. § 322; 12 C.F.R. 208.5.




Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and
not voting: Vice Chairman Mullins.
JENNIFER J. JOHNSON

Associate

Secretary

of the Board

Orders Issued Under International Banking Act
Coutts & Co., AG
Zurich, Switzerland
Order Approving Establishment

of a Branch

Coutts & Co., AG, Zurich, Switzerland ("Bank"), a
foreign bank within the meaning of the International
Banking Act ("IBA"), has applied under section 7(d)
of the IBA to establish a state-licensed branch in New
York, New York. 12 U.S.C. § 3105(d). A foreign bank
must obtain the approval of the Board to establish a
branch, agency, commercial lending company, or representative office in the United States under the Foreign Bank Supervision Enhancement Act of 1991
("FBSEA"), which amended the IBA.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published in a newspaper of general circulation in New
York, New York ( N e w York Times, April 2,1992). The
time for filing comments has expired and no public
comments were received.

Bank is incorporated and licensed to act as a bank
under Swiss law. Founded in 1930, Bank engages in
private banking activities and also provides corporate
lending, foreign exchange, money market, and securities services. Bank, with assets of $2.8 billion as of
December 31, 1992, is one of the 50 largest banking
and finance companies operating in Switzerland in
terms of assets. Bank is a wholly owned subsidiary of
National Westminster Bank, PLC, London, England
("NatWest").
Bank operates two branches in Switzerland and
representative offices in Japan, Singapore, Uruguay,
and New York. Bank also owns six subsidiaries. Four
of these subsidiaries are incorporated in Switzerland
and engage in financial, fiduciary, or portfolio management activities. One subsidiary is incorporated in the
Cayman Islands, and acts as the representative office
of Bank in Hong Kong. An additional subsidiary is a
bank chartered in the Bahamas to take deposits.
The purpose of the proposed branch is to offer
private banking services in the United States. The
proposed branch will assume the existing private
banking business of Bank's affiliate, National West-

Legal Developments

minster Bank USA, New York, New York. 1 Bank has
received approvals related to the establishment of the
proposed branch from the relevant home country
supervisors, the New York State Banking Department, and the Federal Deposit Insurance Corporation.
Bank does not engage in nonbanking activities in the
United States and will be a qualifying foreign banking
organization within the meaning of Regulation K after
establishing
the
proposed
branch.
12 C.F.R.
211.23(b). NatWest, Bank's ultimate parent, is a foreign bank within the meaning of the IBA and Regulation K. 12 U.S.C. §3101(7); 12 C.F.R. 211.21(m).
NatWest is the second largest banking group in the
United Kingdom in terms of assets, which were
$238.4 billion as of June 30, 1992.
NatWest conducts a wide range of international
operations. The U.S. operations of NatWest consist of
two U.S. bank subsidiaries, an Edge corporation,
three branches, two agencies, and nonbanking subsidiaries. Coutts & Co. Group, London, England
("Coutts Group"), is the holding company for the
companies of the NatWest organization that provide
private banking services. Coutts Group provides these
services through Coutts & Co., London, England
("Coutts UK"), and through Coutts & Co. International Holding, AG, Zurich, Switzerland ("Coutts
International"). Coutts International is the immediate
parent of both Bank and Coutts & Co. Trust (Holdings) Ltd., Nassau, Bahamas ("Coutts Trust"), a
holding company for the trust operations of Coutts
Group.
In order to approve an application by a foreign bank
to establish a branch in the United States, the IBA and
Regulation K require the Board to determine that the
foreign bank applicant engages directly in the business
of banking outside the United States, and has furnished to the Board the information it needs to assess
adequately the application. The Board must also determine that each of the foreign bank applicant and any
foreign bank parent is subject to comprehensive supervision or regulation on a consolidated basis by its
home country supervisors. 12 U.S.C. § 3105(d)(2);
12 C.F.R. 211.24(c)(1). The IBA and Regulation K
also permit the Board to consider additional standards.
12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2).
Bank engages directly in the business of banking
outside of the United States through its banking operations in Switzerland. Bank also has provided the
Board with the information necessary to assess the
application through submissions that address the relevant issues.

1. In assuming these accounts, the proposed branch will neither
acquire nor accept domestic retail deposits that require deposit
insurance. 12 U.S.C. § 3104(c).




637

Regulation K provides that a foreign bank will be
considered to be subject to comprehensive supervision
or regulation on a consolidated basis if the Board
determines that the bank is supervised and regulated in
such a manner that its home country supervisors
receive sufficient information on the foreign bank's
worldwide operations, including the relationship of
foreign bank to any affiliate, to assess the overall
financial condition of the foreign bank and its compliance with law and regulation. 2 12 C.F.R. 211.24(c)(1).
In making its determinations under this standard for
each of NatWest and Bank, the Board considered the
following information.
Supervision of NatWest

by U.K.

Authorities

The Bank of England is the home country supervisor
of NatWest and has broad statutory powers to supervise and take enforcement action against an authorized
institution, such as NatWest. The Bank of England
supervises NatWest and its affiliates through a series
of measures designed to ensure that NatWest complies
on an ongoing basis with the conditions for obtaining
authorization and operates in a prudent fashion. The
conditions for granting authorization require review
of, among other things, assets and financial resources
and requirements, and maintenance of adequate accounting records and internal controls. The Bank of
England may revoke or condition an institution's
authorization if it falls out of compliance with these
conditions.
In conducting its supervision, the Bank of England
relies primarily on the solicitation and analysis of
regular reports prepared by independent accountants
and the authorized institution, discussions with an
institution's management and accountants, and consultation with other supervisory authorities. The Bank
of England receives reports from so-called Reporting
Accountants who have statutory duties with respect to
the information they submit to the Bank of England.

2. In assessing this standard, the Board considers, among other
factors, the extent to which the home country supervisors:
(i) Ensure that the bank has adequate procedures for monitoring and
controlling its activities worldwide;
(ii) Obtain information on the condition of the bank and its subsidiaries and offices through regular examination reports, audit reports,
or otherwise;
(iii) Obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic;
(iv) Receive from the bank financial reports that are consolidated on
a worldwide basis, or comparable information that permits analysis
of the bank's financial condition on a worldwide consolidated basis;
(v) Evaluate prudential standards, such as capital adequacy and risk
asset exposure, on a worldwide basis.
These are indicia of comprehensive, consolidated supervision. No
single factor is essential and other elements may inform the Board's
determination.

638

Federal Reserve Bulletin • June 1993

The Bank of England also consults with other regulatory authorities that directly oversee particular portions of an authorized institution's operations.
The Bank of England applies and enforces detailed
provisions regarding the content of reports and the
duties of persons reporting the information. Under the
Banking Act 1987, penalties may be imposed on individuals who either fail to comply with an instruction of
the Bank of England to disclose information or reports
ordered under statutory standards, or who knowingly
or recklessly provide the Bank of England with false or
misleading information. 3
The Bank of England ensures that NatWest has
procedures for monitoring and controlling its worldwide activities through the requirement that NatWest
maintain systems for accounting, record-keeping, and
internal controls. An authorized institution, such as
NatWest, is required by the Bank of England to create
and maintain systems of accounting, records, and internal controls that permit preparation of required reports,
provide accurate information to directors and management, and permit an authorized institution to maintain
consolidated information for each subsidiary. The Bank
of England evaluates the adequacy of systems that
NatWest maintains through a mandatory annual report
that is prepared by its Reporting Accountants.
NatWest monitors its operating subsidiaries, including Bank, by requiring annual, on-site audits of each
subsidiary by its independent accountants. The independent accountants prepare letters regarding these
audits that highlight any deficiencies found in the audit
of each company's accounts, including weaknesses in
internal controls, and present the letters to NatWest's
internal audit and accounting departments, and to NatWest's Group Chief Financial Officer. The Bank of
England is notified of persistent or serious deficiencies.
The Bank of England regularly obtains information
on the condition of NatWest, its overseas offices, and
subsidiaries through frequent discussions with NatWest
and its accountants, including its Reporting Accountants, and through periodic financial and audit reports.
The Bank of England meets regularly with NatWest and
its accountants, including its Reporting Accountants, to
review the consolidated financial condition of NatWest,
including review of the audited, consolidated accounts
of NatWest and its subsidiaries and the auditing process
used to prepare such accounts. 4
NatWest and its accountants must also submit to the
Bank of England periodic reports on the financial

3. The independent accountants are subject to additional review and
disclosure requirements through their licensing authorities.
4. The Bank of England requires NatWest to consolidate any
majority-owned or controlled subsidiary that engages in credit or
financial activities.




condition of the organization, 5 as well as annual,
independently audited financial reports for each of its
principal subsidiaries, which include Bank, Coutts
UK, and Coutts Trust.
The Bank of England obtains information on the
dealings and relationship between NatWest and its
subsidiaries through required reports of aggregate
large exposures and other affiliate transactions. It also
restricts lending to affiliates by requiring such loans to
provide market terms and serve a clear commercial
purpose.
The Bank of England evaluates prudential standards
for NatWest on a worldwide basis. The Bank of
England has implemented the risk-based capital standards of the Basle Accord, with variations that conform to applicable European Community directives.
NatWest must submit capital adequacy figures on an
aggregate and consolidated basis. The Bank of England also ensures that NatWest maintains sufficient
liquidity, and applies limitations on credit risks and
concentrations. NatWest conforms to these requirements through internal controls and policies that apply
throughout its organization.
Supervision of Bank by Swiss

Authorities

The Swiss Federal Banking Commission ("Banking
Commission") is responsible for the supervision of
Swiss banks and investment trusts and, as such, is the
home country supervisor of Bank. 6 The powers of the
Banking Commission include licensing banks, issuing
directives to address violations by or irregularities
involving banks, requiring information from a bank or
its auditor regarding supervisory matters, and revoking bank licenses. 7
The Banking Commission exercises indirect oversight over Swiss banks through independent auditors
known as Recognized Auditors that act on behalf of

5. The Bank of England requires an authorized institution, such as
NatWest, to submit unconsolidated reports monthly and quarterly,
and consolidated reports bi-annually. NatWest must discuss any
accounting differences in other jurisdictions that substantially affect
the consolidated reports with the Bank of England.
6. The Banking Commission is responsible for the direct oversight
of Bank. The Bank of England, as the supervisor of NatWest and its
subsidiaries, consults with the Banking Commission regarding supervision of Bank.
7. The Banking Commission may license an entity as a bank if the
entity:
(1) Conducts clearly defined activities with separate bodies for
management, direction, supervision, and control of significant activities;
(2) Holds minimum, fully-paid capital;
(3) Employs bank management and administration with good reputations that ensure proper bank operations; and
(4) Employs a majority of Swiss residents as managers.

Legal Developments

the Commission under detailed statutory provisions. 8
Each Swiss bank must appoint a Recognized Auditor,
and must notify the Banking Commission of an intent
to change its auditor. The Recognized Auditors may
take action within a bank as deemed necessary or as
instructed by the Banking Commission, and must
inform the Commission of supervisory matters.
The Banking Commission ensures that Bank has
adequate procedures for monitoring and controlling its
worldwide activities through statutory and regulatory
standards for operations that each Swiss bank must
meet. Among these standards are requirements for
adequate internal controls, oversight, administration,
and financial resources. The Banking Commission
reviews compliance with these limitations on operations and with internal control requirements through
an annual audit performed by the Recognized Auditor.
The Banking Commission may take supervisory actions that include requiring divestiture of a subsidiary
in response to supervisory concerns.
Bank has adopted internal control procedures that
permit it, and NatWest, to monitor Bank's operations
and those of its subsidiaries. Bank also performs
annual internal audits of each of its branches that
review all business activities and operations, as well as
compliance with internal policy and applicable laws.
Bank monitors and controls its subsidiaries through
annual audits of its operating subsidiaries by its Recognized Auditor. The results of these audits are communicated to the management of both Bank and NatWest.
The Banking Commission obtains information on
the condition of Bank, its foreign offices, and subsidiaries by requiring submission of periodic, consolidated financial reports and through the mandatory
annual report by the Recognized Auditor. Generally,
Swiss banks must consolidate for accounting purposes
all foreign offices on a line-by-line basis, and must
include any majority-owned banking, finance, or real
estate subsidiary on a pro-rata or proportional accounting basis.
The Banking Law requires Bank to submit annual
and semi-annual balance sheets and income statements to the Banking Commission. The Banking Commission also receives information regarding capital
adequacy, country risk exposure, and foreign exchange exposures from Bank annually. Information on
risks (such as interest rate risk) and inter-company
transactions is received through large loan reports that
must be submitted both when such loans occur and

8. The Banking Commission must formally grant recognition to
Recognized Auditors under statutory standards that are designed to
ensure the independence and competence of the auditors and the
accuracy of the auditing process.




639

annually. The Banking Commission evaluates prudential standards with respect to capital adequacy that
effectively follow the risk-based capital standards of
the Basle Accord.
The Swiss Banking Law and Implementing Ordinance prescribe the content of the mandatory annual
report of Bank by its Recognized Auditor. Under these
laws, the Recognized Auditor must review and report
on the financial condition of a bank, including sufficiency and valuation of assets and capital, as well as
other topics. The report must express an opinion
regarding compliance with the conditions for licensure, accounting accuracy, risks, adjustments, undisclosed reserves, treatment of classified assets, fiduciary operations, exposures to single borrowers,
insider lending, capital, liquidity, reserve allocation,
foreign assets, internal controls and organization, and
compliance with monetary controls.
The Swiss Banking Law contains penalties to ensure
correct reporting to the Banking Commission. Recognized Auditors face penalties for gross violations of
duties in auditing, for reporting misleading information
or omitting essential information from the audit report,
and for failing to request pertinent information or to
report to the Banking Commission.
Based on all the facts of record, which include the
information described above, the Board concludes
that each of Bank and NatWest is subject to comprehensive supervision and regulation on a consolidated
basis by its respective home country supervisor.
Additional

Standards

In considering this application, the Board has also
taken into account the additional standards set forth in
section 7 of the IBA. 12 U.S.C. § 3105(d)(3)-(4). As
noted above, Bank has received the consent of its
home country supervisor to establish the proposed
branch. In addition, subject to certain conditions, the
Bank of England and the Banking Commission may
share information on Bank's operations with other
supervisors, including the Board.
As noted, Bank must comply with the Swiss capital
standards that effectively follow the Basle Accord.
Bank's capital exceeds these minimum standards and
is equivalent to capital that would be required of a
U.S. banking organization. Managerial and other financial resources of Bank are also considered consistent with approval and Bank appears to have the
experience and capacity to support this additional
office. Bank has established controls and procedures
for its U.S. offices to ensure compliance with U.S.
law. Under the IBA, the proposed state-licensed
branch may not engage in any type of activity that is

640

Federal Reserve Bulletin • June 1993

not permissible for a federally-licensed branch without
the Board's approval.
Finally, Nat West and Bank each have committed to
make available to the Board such information on the
operations of Bank and any affiliate of Bank that the
Board deems necessary to determine and enforce
compliance with the IB A, the Bank Holding Company
Act of 1956, as amended, and other applicable Federal
law, to the extent not prohibited by law or regulation.
The Board has reviewed the restrictions on disclosure
in relevant jurisdictions in which NatWest or Bank
operate and has communicated with certain government authorities concerning access to information.
The Board notes that NatWest, Bank, and certain of
their affiliates may not provide information without the
consent of third parties. In this regard, each of NatWest and Bank also has committed to cooperate with
the Board to obtain any approvals or consents that
may be needed to gain access to information that may
be requested by the Board. In light of these commitments and other facts of record, and subject to the
condition described below, the Board concludes that
Bank has provided adequate assurances of access to
any necessary information the Board may request.
On the basis of all the facts of record, and subject to
the commitments made by NatWest and Bank, as well
as the terms and conditions set forth in this Order, the
Board has determined that Bank's application to establish a branch should be, and hereby is, approved. If
any restrictions on access to information on the operations or activities of Bank and any of its affiliates
subsequently interfere with the Board's ability to
determine the safety and soundness of Bank's U.S.
operations or the compliance by Bank or its affiliates
with applicable Federal statutes, the Board may require termination of any of Bank's direct or indirect
activities in the United States. Approval of this application is also specifically conditioned on compliance
by each of NatWest and Bank with the commitments
made in connection with this application, and with the
conditions contained in this Order. 9 The commitments
and conditions referred to above are conditions imposed in writing by the Board in connection with its
decision, and may be enforced in proceedings under
12 U.S.C. § 1818 or 12 U.S.C. § 1847 against NatWest, or Bank, including its offices and its affiliates.
By order of the Board of Governors, effective
April 20, 1993.

9. The Board's authority to approve the establishment of the
proposed branch parallels the continuing authority of the State of New
York to license offices of a foreign bank. The Board's approval of this
application does not supplant the authority of the State of New York,
and its agent, the New York State Banking Department, to license the
proposed branch of Bank in accordance with any terms or conditions
that the New York State Banking Department may impose.




Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and
not voting: Governor Mullins.
JENNIFER J. JOHNSON

Associate

Secretary

of the Board

ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT
INSURANCE CORPORATION IMPROVEMENT
ACT

By the Board
Mid Am, Inc.
Bowling Green, Ohio
Order Approving Merger of a Savings
With a Commercial Bank

Association

Mid Am, Inc., Bowling Green, Ohio ("Mid Am"), has
applied for the Board's approval to permit its subsidiary, American Community Bank, N . A . , Lima, Ohio
("Bank"), to merge with Colonial Federal Savings
Bank, Bellefontaine, Ohio ("Colonial"), pursuant to
section 5(d)(3) of the Federal Deposit Insurance Act
(12 U.S.C. § 1815(d)(3) ("FDI Act")), as amended by
the Federal Deposit Insurance Corporation Improvement Act of 1991 (Pub. L. N o . 102-242, § 501, 105
Stat. 2236, 2388-2392 (1991)). Section 5(d)(3) of the
FDI Act requires the Board to follow the procedures
and consider the factors set forth in the Bank Merger
Act (12 U.S.C. § 1828(c)). 12 U.S.C. § 1815(d)(3)(E).>
Notice of the application, affording interested persons an opportunity to submit comments, has been
given in accordance with the Bank Merger Act and the
Board's Rules of Procedure (12 C.F.R. 262.3(b)). In
addition, reports on the competitive effects of the
merger were requested from the United States Attorney General, the Office of the Comptroller of the
Currency, the Federal Deposit Insurance Corporation,
and the Office of Thrift Supervision. 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 the Bank Merger Act and
section 5(d)(3) of the FDI Act.
Mid Am is the eleventh largest commercial banking
organization in Ohio, controlling deposits of $1 billion,
representing approximately 1.2 percent of total deposits in commercial banking organizations in the state.
Colonial is the 84th largest thrift organization in Ohio,

1. These factors include considerations relating to competition, 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. 12 U.S.C. § 1828(c).

Legal Developments

controlling deposits of $71.9 million, representing less
than 1 percent of total deposits in thrift institutions in
the state. Upon consummation of the proposed transaction, Mid Am would remain the eleventh largest
commercial banking organization in Ohio, controlling
deposits of $1.1 billion, representing approximately
1.2 percent of total deposits in commercial banking
organizations in the state.
Mid Am and Colonial compete directly in the Logan
County, Ohio, banking market. 2 In that market, Mid
Am is the largest of twelve commercial banking or
thrift organizations (together, "depository institutions"), controlling deposits of $84.8 million, representing approximately 23.5 percent of total deposits in
depository institutions in the market ("market deposits"). 3 Colonial is the third largest depository institution in the market, controlling deposits of $37.2 million, representing approximately 10.3 percent of
market deposits. 4 Upon consummation of this proposal, Mid Am would control $159.2 million in deposits, representing approximately 40 percent of market
deposits. The Herfindahl-Hirschman Index ("HHI")
for this market would increase by 811 points to 2204. 5
In order to mitigate the adverse competitive effects
that would otherwise result from consummation of this
proposal, Mid Am has committed to divest one branch
of Bank, with deposits of approximately $15.4 million,
located in the Logan County banking market to an
out-of-market banking organization. 6 Following this

2. The Logan County banking market consists of Logan County,
Ohio.
3. State deposit data are as of September 30, 1992. Market deposit
data are as of June 30, 1992.
4. Market share data before consummation are based on calculations in which the deposits of thrift institutions are included at
50 percent. The Board previously has indicated that thrift institutions
have become, or have the potential to become, major competitors of
commercial banks. See Midwest Financial Group, 75 Federal Reserve
Bulletin 386 (1989); National City Corporation, 70 Federal Reserve
Bulletin 743 (1984). Because the deposits of Colonial would be
transferred to a commercial bank under Mid Am's proposal, those
deposits are included at 100 percent in the calculation of the pro forma
market share. See First Banks, Inc., 76 Federal Reserve Bulletin 669,
670 n.9 (1990); Norwest Corporation, 78 Federal Reserve Bulletin 452
(1992).
5. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered to be highly concentrated. The Justice Department has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating anticompetitive effects) unless the postmerger HHI is at least 1800 and the merger increases the HHI by more
than 200 points. The Justice Department has stated that the higher
than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effect of limitedpurpose lenders and other non-depository financial entities.
6. Mid Am has committed to execute a binding sales agreement,
acceptable to the Board, to effect this divestiture prior to the consummation of the acquisition of Colonial. In the event that the divestiture
is not consummated within 180 days of the proposal, Mid Am has
signed a trust agreement that provides for the transfer of the assets and




641

divestiture, Mid Am would remain the largest depository institution in the market, controlling deposits of
$143.8 million, representing approximately 36.1 percent of market deposits. The HHI would increase by
532 points to 1925.
The record in this case indicates that the effects that
consummation of this proposal would have on competition in the Logan County banking market are mitigated by certain characteristics of this market. Following the consummation of the proposed divestiture,
nine commercial banking organizations, including
three of the five largest commercial banking organizations in Ohio, and three thrift institutions would operate in the Logan County banking market. The Logan
County banking market also has a number of features
that make it attractive for entry, including population
growth, deposit growth, and the level of per capita
income in the market. 7 Additionally, Ohio's nationwide reciprocal interstate banking law and its intrastate branching law permit a potentially large number of
financial institutions to enter this market with relative
ease. In this regard, one commercial banking organization entered the market on a de novo basis in 1990
and subsequently opened a second de novo branch in
the market.
In light of the number and size of competitors
remaining in the Logan County banking market, the
market's attractiveness to entry, the number of potential entrants into the market, and other facts of record
in this case, the Board concludes that consummation
of this proposal would not have a significantly adverse
effect on competition or the concentration of banking
resources in the Logan County banking market or any
other relevant banking market.
The Board also concludes that the financial and
managerial resources and future prospects of Mid Am
and Bank, and considerations relating to the convenience and needs of the communities to be served, are
also consistent with approval of this application.
Moreover, the record in this case shows that:
(1) The transaction will not result in the transfer of
any federally insured depository institution's federal
deposit insurance from one federal deposit insurance fund to the other;
(2) Mid Am and Bank currently meet, and upon
consummation of the proposed transaction will continue to meet, all applicable capital standards; and

liabilities to be divested to an independent trustee who will sell them
promptly.
7. Logan County's population increase between 1987 and 1990
(4.4 percent), deposit growth between 1988 and 1991 (21.6 percent),
and per capita income ($15,346), all exceed the average for non-MSA
counties in Ohio.

642

Federal Reserve Bulletin • June 1993

(3) Because Bank is in Ohio and is merging with a
savings institution located in Ohio, the proposed
transaction would comply with the Douglas Amendment if Colonial were a state bank that Mid Am was
applying to acquire directly. See 12 U.S.C.
§ 1815(d)(3).
Based on the foregoing and all of the facts of record,
the Board has determined that this application should
be, and hereby is, approved. This approval is subject to
Bank obtaining the required approval of the appropriate
Federal banking agency for the proposed merger under
the Bank Merger Act. The Board's approval of this
application also is conditioned upon Mid Am's compliance with the commitments made in connection with
this application, including the divestiture commitments
discussed in this Order. For purposes of this action, the
commitments and conditions relied on in reaching this
decision are both conditions imposed in writing by the
Board and, as such, may be enforced in proceedings

ACTIONS

TAKEN

under applicable law. This approval is limited to the
proposal presented to the Board by Mid Am, and may
not be construed as applying to any other transaction.
This transaction may not be consummated before
the thirtieth calendar day after the effective date of this
Order, or later than three months after the effective
date of this Order, unless such period is extended by
the Board or the Federal Reserve Bank of Cleveland,
acting pursuant to delegated authority. In connection
with this provision, advice of the fact of consummation should be given in writing to the Reserve Bank.
By order of the Board of Governors, effective
April 19, 1993.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and
not voting: Governor Mullins.
JENNIFER J. JOHNSON

Associate

UNDER THE FEDERAL DEPOSIT INSURANCE

Secretary

of the Board

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.
Acquired
Thrift

Surviving
Bank(s)

First Citizens BancShares, Inc.
Raleigh, North Carolina

Caldwell Savings Bank,
Inc., SSB,
Lenoir, North Carolina

Pickens County Bancshares,
Inc.,
Carrollton, Alabama

Secor Bank, F.S.B.,
Birmingham, Alabama

First-Citizens Bank &
Trust Company,
Raleigh, North
Carolina
West Alabama Bank
and Trust,
Carrollton,
Alabama

Bank Holding Company

APPLICATIONS

APPROVED

UNDER BANK HOLDING COMPANY

Approval
Date
March 30, 1993

March 31, 1993

ACT

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




Legal Developments

643

Section 3
Effective
Date

Bank(s)

Applicant(s)
FirstBank Holding Company of
Colorado,
Lakewood, Colorado
FirstBank Holding Company of
Colorado Employee Stock
Ownership Plan,
Lakewood, Colorado
First Security Corporation,
Salt Lake City, Utah

FirstBank of Fort Collins,
Fort Collins, Colorado

April 2, 1993

Desert Southwest Community
Bancorp,
Las Vegas, Nevada

April 22, 1993

Section 4
Applicant(s)
Panhandle Bancshares, Inc.
Panhandle, Texas

APPLICATIONS

APPROVED

Effective
Date

Bank(s)
to engage de novo in providing
management consulting services to
nonaffiliated depository institutions
and tax planning and preparation
services

UNDER BANK HOLDING COMPANY

April 9, 1993

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)
AMBANC Corp.,
Vincennes, Indiana
BOK Financial Corporation,
Tulsa, Oklahoma




Bank(s)
Farmers' State Bank of
Palestine,
Palestine, Illinois
Sand Springs Bancshares,
Inc.,
Sand Springs,
Oklahoma
Brookside Bancshares,
Inc.,
Tulsa, Oklahoma

Reserve
Bank

Effective
Date

St. Louis

April 7, 1993

Kansas City

April 2, 1993

644

Federal Reserve Bulletin • June 1993

Section 3—Continued

Applicant(s)
Bourbonnais Bancorp, Inc.,
Bourbonnais, Illinois
Cashton Bancshares, Inc.,
Cashton, Wisconsin
CNB Bancshares, Inc.,
Evansville, Indiana
Community First Bankshares,
Inc.,
Fargo, North Dakota
Community First Bankshares,
Inc.,
Fargo, North Dakota
Crested Butte State Bank
Holding Company,
Crested Butte, Colorado
Davis BanCorporation, Inc.,
Davis, Oklahoma
Dimeco, Inc.,
Honesdale, Pennsylvania
Farmers State Bancshares of
Andrew County, Inc.,
Savannah, Missouri
First Breckinridge Bancshares,
Inc.,
Irvington, Kentucky
First Linden Bancshares, Inc.,
Linden, Alabama
First National of Nebraska, Inc.,
Omaha, Nebraska
First Neighborhood Bancshares,
Inc.,
Toledo, Illinois
FirstPerryton Bancorp, Inc.,
Perryton, Texas
First State Bancshares, Inc.,
Scottsbluff, Nebraska
FNBR Holding Corporation,
Meeker, Colorado




Reserve
Bank

Bank(s)
Presidential Holding
Company,
Bourbonnais, Illinois
Bank of Cashton,
Cashton, Wisconsin
South Central Illinois
Bancorp, Inc.,
Effingham, Illinois
F&M Bank Holding
Company,
Cooperstown,
North Dakota
Lincoln Banking
Company, Ltd.,
Steamboat Springs,
Colorado
Crested Butte State Bank,
Crested Butte,
Colorado
First Davis
Bancorporation, Inc.,
Davis, Oklahoma
The Dime Bank,
Honesdale,
Pennsylvania
Farmers State Bank of
Rosendale,
Savannah, Missouri
Bank of Clarkson,
Clarkson, Kentucky
First Bank of Linden,
Linden, Alabama
First National Bank of
Kansas,
Overland Park, Kansas
Newman Bancshares,
Inc.,
Newman, Illinois
Texas Commerce Bank Amarillo,
Amarillo, Texas
Security First Savings &
Loan Association,
Cheyenne, Wyoming
First National Bank of the
Rockies,
Meeker, Colorado

Effective
Date

Chicago

April 8, 1993

Chicago

March 30, 1993

St. Louis

March 22, 1993

Minneapolis

Minneapolis

Kansas City

April 23, 1993

April 23, 1993

March 26, 1993

Kansas City
April 16, 1993
Philadelphia
April 1, 1993
Kansas City
March 26, 1993
St. Louis
March 29, 1993
Atlanta

March 26, 1993

Kansas City

April 2, 1993

Chicago

April 16, 1993

Dallas

April 20, 1993

Kansas City

April 22, 1993

Kansas City

March 31, 1993

Legal Developments

Section 3—Continued
Applicant(s)
Fourth Financial Corporation,
Wichita, Kansas

Illinois State Bancorp, Inc.,
Wheaton, Illinois
International Brotherhood of
Boilermakers, Iron Ship
Builders, Blacksmiths, Forgers
& Helpers,
Kansas City, Kansas
LeRoy C. Darby, Inc.,
Monona, Iowa
Lincoln Trail Bancshares, Inc.,
Taylorville, Illinois
Midlothian State Bank Employee
Stock Ownership Trust,
Midlothian, Illinois
Oliver Bancorporation, Inc.,
Center, North Dakota

Bank(s)
Nichols Hills
Bancorporation, Inc.,
Oklahoma City,
Oklahoma
Presidential Holding
Company,
Bourbonnais, Illinois
Brotherhood Bancshares,
Inc.,
Kansas City, Kansas

Keystone Bancshares,
Inc.,
Elkader, Iowa
Palmer State Bank,
Taylorville, Illinois
Midlothian State Bank,
Midlothian, Illinois
Security State Bank of
New Salem,
New Salem, North
Dakota

Reserve
Bank

Effective
Date

Kansas City

April 2, 1993

Chicago

April 8, 1993

Kansas City

April 16, 1993

Chicago

April 16, 1993

Chicago

March 26, 1993

Chicago

April 14, 1993

Minneapolis

March 26, 1993

Section 4
Applicant(s)
The Bank of Tokyo, Ltd.,
Tokyo,Japan
Central Bancshares, Inc.,
Cambridge, Nebraska
The Merchants Holding
Company,
Winona, Minnesota




Nonbanking
Activity/Company
BOT Financial
Corporation,
Boston, Massachusetts
C.R. Druse Insurance,
Cambridge, Nebraska
Mortgage Options of
La Crosse, Inc.,
La Crosse, Wisconsin

Reserve
Bank

Effective
Date

San Francisco

April 22, 1993

Kansas City

March 31, 1993

Minneapolis

April 15, 1993

645

646

Federal Reserve Bulletin • June 1993

APPLICATIONS

APPROVED

By Federal Reserve

UNDER BANK MERGER

ACT

Banks

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

Applicant(s)
Bank of Woodward,
Woodward, Oklahoma
Commonwealth Bank,
Williamsport, Pennsylvania

PENDING CASES INVOLVING

Cimarron Bank,
Waukomis, Oklahoma
Valley Community Bank,
Kingston, Pennsylvania

THE BOARD OF

Effective
Date

Kansas City

April 9, 1993

Philadelphia

April 20, 1993

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.
Amann v. Prudential Home Mortgage Co., et al., No.
93-10320 WD (D. Massachusetts, filed February 12,
1993). Action for fraud and breach of contract
arising out of a home mortgage.
Adams v. Greenspan, No. 93-0167 (D. D.C., filed
January 27, 1993). Action by former employee under
the Civil Rights Act of 1964 and the Rehabilitation
Act of 1973 concerning termination of employment.
Sisti v. Board of Governors, No. 93-0033 (D.D.C.,
filed January 6, 1993). Challenge to Board staff
interpretation with respect to margin accounts. On
April 9, 1993, the Board filed a motion to dismiss.
U.S. Check v. Board of Governors, No. 92-2892
(D.D.C., filed December 30, 1992). Challenge to
partial denial of request for information under the
Freedom of Information Act.
CBC, Inc. v. Board of Governors, No. 92-9572 (10th
Cir., filed December 2, 1992). Petition for review of
civil money penalty assessment against a bank holding company and three of its officers and directors
for failure to comply with reporting requirements.
The Board's brief was filed on March 19, 1993.
DLG Financial Corporation v. Board of Governors,
No. 392 Civ. 2086-G (N.D. Texas, filed October 9,
1992). Action to enjoin the Board and the Federal
Reserve Bank of Dallas from taking certain enforcement actions, and seeking money damages on a
variety of tort and contract theories. On October 9,
1992, the court denied plaintiffs' motion for a tem-




Reserve
Bank

Bank(s)

porary restraining order. On March 30, 1993, the
court granted the Board's motion to dismiss as to it,
and also dismissed certain claims against the Reserve Bank.
Zemel v. Board of Governors, No. 92-1056 (D. District
of Columbia, filed May 4, 1992). Age Discrimination
in Employment Act case. The parties' crossmotions for summary judgment are pending.
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. The Board's brief was filed on
June 29, 1992. Oral argument was held October 6,
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. On June 26, 1992, the court of appeals affirmed
the district court order in part, but held that the bank
examination privilege was not waived by the agencies' provision of examination materials to the examined institution, and remanded for further consideration of the privilege issue. On August 6,1992, the
district court ordered the matter held in abeyance
pending settlement of the underlying action.
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

Legal Developments

adjudication of civil money penalty assessment by
the Board. On October 15, 1991, 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. N e w York, filed September 17,
1991). Action to freeze assets of individual pending
administrative adjudication of civil money penalty
assessment by the Board. On September 17, 1991,
the court issued an order temporarily restraining the
transfer or disposition of the individual's assets.
FINAL ENFORCEMENT ORDERS ISSUED BY THE
BOARD OF GOVERNORS

First Pacific Bancorp, Inc.
Beverly Hills, California
The Federal Reserve Board announced on April 2,
1993, the issuance of Orders of Assessment of a Civil
Money Penalty against First Pacific Bancorp, Inc.,
Beverly Hills, California, and Jose M. Anotado, an
institution-affiliated party of First Pacific Bancorp,
Inc.

647

Valley Bancshares, Inc., Santa Clara, California, and
its subsidiary bank, the Silicon Valley Bank, Santa
Clara, California, pursuant to 12 U.S.C. 1818(b).

WRITTEN AGREEMENTS
RESERVE
BANKS

APPROVED BY

FEDERAL

Arrow Financial Corporation
Glens Falls, New York
The Federal Reserve Board announced on April 5,
1993, the execution of an Amendment to the Written
Agreement, dated July 22, 1992, involving the Federal
Reserve Bank of N e w York, Arrow Financial Corporation, Glens Falls, N e w York, and Arrow Vermont
Corporation, Rutland, Vermont.

Citizens First Bancorp, Inc.
Glen Rock, New Jersey

Pacific Inland Bancorp
Anaheim, California

The Federal Reserve Board announced on April 5,
1993, the execution of an Amendment to the Written
Agreement, dated December 18, 1990, between the
Federal Reserve Bank of N e w York and Citizens First
Bancorp, Inc., Glen Rock, N e w Jersey.

The Federal Reserve Board announced on April 16,
1993, the issuance of a Cease and Desist Order against
Pacific Inland Bancorp, Anaheim, California, and its
subsidiary bank, the Pacific Inland Bank, Anaheim,
California.

Perry County Bancorp, Inc.
Du Quoin, Illinois

Silicon Valley Bancshares, Inc.
Santa Clara, California
The Federal Reserve Board announced on April 16,
1993, the issuance of a Consent Order against Silicon




The Federal Reserve Board announced on April 26,
1993, the execution of Written Agreements involving
the Federal Reserve Bank of St. Louis and Perry
County Bancorp, Inc., Du Quoin, Illinois, a bank
holding company, and its subsidiary bank, the
Du Quoin State Bank, Du Quoin, Illinois.

A1

Financial and Business Statistics
WEEKLY REPORTING COMMERCIAL BANKS

CONTENTS
A3

Guide to Tabular

Domestic

Financial

Presentation
Statistics

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

MONEY STOCK AND BANK CREDIT

FINANCIAL MARKETS

A4

A24 Commercial paper and bankers dollar
acceptances outstanding
A24 Prime rate charged by banks on short-term
business loans
A25 Interest rates—money and capital markets
A26 Stock market—Selected statistics
All 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

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, Wednesday figures




FEDERAL FINANCE
All
A28
A29
A29

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
A30 U.S. government securities
dealers—Transactions
A31 U.S. government securities dealers—Positions
and financing
A32 Federal and federally sponsored credit
agencies—Debt outstanding

SECURITIES MARKETS AND
CORPORATE FINANCE
A33 New security issues—Tax-exempt state and local
governments and corporations
A34 Open-end investment companies—Net sales
and assets
A34 Corporate profits and their distribution
A34 Nonfarm business expenditures on new
plant and equipment
A35 Domestic finance companies—Assets and
liabilities, and consumer, real estate, and business
credit

2

Federal Reserve Bulletin • June 1993

Domestic
REAL

Financial

Statistics—Continued

ESTATE

A36 Mortgage markets
A37 Mortgage debt outstanding
CONSUMER INSTALLMENT

CREDIT

A3 8 Total outstanding
A3 8 Terms

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

Domestic

Nonfinancial

SELECTED

Statistics

SUMMARY

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

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
International

REPORTED BY BANKS
IN THE UNITED STATES
A57
A58
A60
A61

FLOW OF FUNDS
A39
A41
A42
A43

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

Statistics
STATISTICS

A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A54 U.S. reserve assets




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

A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Statistical
Special
Tables

Releases

and

A3

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

*

0
ATS
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
G-10

Corrected
Estimated
Not available
Not elsewhere classified
Preliminary
Revised (Notation appears on column heading
when about half of the figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
Calculated to be zero
Cell not applicable
Automatic transfer service
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

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

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

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




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

A4
1.10

DomesticNonfinancialStatistics • June 1993
R E S E R V E S , M O N E Y STOCK, LIQUID A S S E T S , A N D D E B T M E A S U R E S
Percent annual rate of change, seasonally adjusted1
1992r

1993

1992

1993

Monetary and credit aggregate
Q2
Reserves of depository
Total
Required
Nonborrowed
Monetary base

6
7
8
9

Concepts
Ml
M2
M3
L
Debt

Nontransaction
10 In M2 5
11 In M3 only 6

components

Time and savings
deposits
Commercial banks
Savings, iqcluding MMDAs
Small time
Large time 8 , 9
Thrift institutions
15
Savings, including MMDAs
16
Small time
17
Large time 8 '
12
13
14

Money market mutual funds
IK General purpose and broker-dealer
19 Institution-only
Debt
components4
20
21 Nonfederal

14.8r
15.3r
14.6r
7.8

9.3
9.9
8.4
10.5

25.8
25.3
27.1
12.6

9.3
8.7
9.5
9.1

22.2
23.4
23.2
10.4

12.0
9.6
11.6
10.2

6.9
4.7
6.0
8.3

5.6
9.3
8.3
8.5

5.4
3.0
4.4
8.9

11.7
.8
.1
1.1
4.9 r

16.8
2.7
-.2
1.9
4.4

6.5
-2.1
-4.0
n.a.
n.a.

15.7
2.3
-.4
3.2
5.7

8.8
-.3
-3.4
-.9
6.2

7.7
-3.5
-7.5
-5.2
3.2

-.5
-4.4
-2.3
-1.1
4.4

2.4
-.8
-1.5
n.a.
n.a.

and

Nov.

Dec.

Jan. r

Feb.

Mar.

debt4

-3.4r
-4.9

-3.2
-3.6

-2.8
-14.4

-5.5
-13.7

-3.2
-13.9

-4.1
-19.2

-8.1
-28.3

-6.2
9.2

-2.2
-4.7

12.6
-13.4
-13.3

10.9
-17.4
-18.6

12.9
-17.1
-18.4

1.7
-7.5
-17.3

10.3
-18.5
-16.2

5.7
-11.5
-10.7

-3.2
-9.9
-26.9

2.7
3.1
-10.6

-2.5
-2.9
-18.8

18.1
-29.8
-31.9

9.2
-18.6
-14.9

8.7
-21.7
-11.3

.0
-19.2
-17.3

9.9
-21.3
-29.1

5.6
-21.7
-21.0

1.1
-16.5
-3.6

-10.0
-24.1
-28.6

-4.5
-12.6
-18.3

-6.6r
23.9

-7.4r
32.9

-4.2
-19.4

-10.1
-14.3

-9.0
-9.7

-4.9
-39.6

-9.5
-27.3

-21.2
25.5

-1.8
-8.3

14.4
2.8 r

10.7r
2.9 r

6.0
3.8

n.a.
n.a.

10.5
4.0

16.3
2.7

2.9
3.4

5.3
4.0

1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or "breaks," associated with regulatory changes in reserve requirements. (See also table 1.20.)
3. Seasonally adjusted, break-adjusted monetary base consists of (1) seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits, and Vault
Cash" and for all weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
M l : (1) currency outside the 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 (including MMDAs) 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 afl 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 M l .
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




Ql

2

institutions

of money, liquid assets,

Q4 r

10.6
.3 r
-,6r
1.3r
5.7 r

1
2
3
4

Q3

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

A5

R E S E R V E S OF DEPOSITORY INSTITUTIONS A N D RESERVE B A N K C R E D I T 1
Millions of dollars
Average of
daily figures

Average of daily figures for week ending on date indicated

1993

1993

Feb.

Jan.

Mar.

Feb. 17

Feb. 24

Mar. 3

Mar. 10

Mar. 17

Mar. 24

Mar. 31

SUPPLYING RESERVE F U N D S

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

336,822 r

334,937

337,717

334,964

333,563

337,914

336,092

337,877

336,699

339,624

297,541
2,582

297,289
1,358

298,823
1,984

297,127
1,008

298,136
0

297,420
4,178

297,661
2,327

298,672
1,628

300,087
0

299,897
2,213

5,379
189
0

5,271
73
0

5,173
112
0

5,260
64
0

5,260
0
0

5,225
252
0

5,216
202
0

5,165
37
0

5,165
0
0

5,123
164
0

182
10
1
l,025 r
29,913

22
18
0
763
30,143

69
26
0
1,188
30,342

14
19
0
1,110
30,362

24
22
0
997
29,123

48
18
0
974
29,799

6
19
0
718
29,944

137
25
0
2,237
29,977

13
31
0
777
30,626

120
32
0
1,018
31,057

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

11,055
8,018
21,470 r

11,055
8,018
21,510

11,055
8,018
21,560

11,055
8,018
21,509

11,055
8,018
21,518

11,055
8,018
21,528

11,055
8,018
21,542

11,055
8,018
21,556

11,055
8,018
21,570

11,054
8,018
21,584

330,334 r
505

329,470
467

331,650
509

330,480
464

330,217
463

329,941
470

331,101
512

331,893
512

332,044
512

332,174
512

7,693
215

6,018
243

5,472
290

4,791
240

4,967
237

6,017
254

5,395
202

5,563
375

5,026
238

5,243
370

6,426 r
285

6,289
302

6,501
347

6,170
305

6,180
306

6,413
327

6,535
344

6,304
344

6,296
334

6,905
362

8,523

9,006

9,091

8,925

8,928

9,130

9,113

9,093

9,064

9,069

24,423

23,828

25,644

Mar. 17

Mar. 24

Mar. 31

ABSORBING R E S E R V E 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

23,386

r

23,724

24,490

24,171

22,856

Feb.

23,506

Wednesday figures

End-of-month figures
Jan.

25,964

Mar.

Feb. 17

Feb. 24

Mar. 3

Mar. 10

S U P P L Y I N G RESERVE F U N D S

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

333,077 r

337,550

343,479

336,621

335,258

339,027

333,188

333,908

337,988

343,479

296,977
0

298,835
2,655

298,461
6,756

297,025
2,831

299,778
0

296,079
7,130

297,810
300

297,015
50

299,440
0

298,461
6,756

5,310
0
0

5,225
275
0

5,123
567
0

5,260
150
0

5,260
0
0

5,225
145
0

5,165
107
0

5,165
0
0

5,165
0
0

5,123
567
0

21
10
4
226 r
30,529

40
17
0
663
29,841

720
32
0
380
31,439

17
22
0
1,887
29,430

27
22
0
930
29,241

43
18
0
385
30,003

8
21
0
-14
29,793

894
29
0
771
29,985

16
28
0
2,568
30,771

720
32
380
31,439

11,055
8,018
21,490 r

11,055
8,018
21,528

11,054
8,018
21,584

11,055
8,018
21,509

11,055
8,018
21,518

11,055
8,018
21,528

11,055
8,018
21,542

11,055
8,018
21,556

11,055
8,018
21,570

11,054
8,618
21,584

326,573 r
508

329,621
463

332,829
515

330,984
463

329,924
463

330,4%
512

331,657
512

332,121
512

332,032
512

332,829
515

9,572
244

5,350
296

6,752
318

4,869
256

4,973
232

7,640
224

5,242
230

6,930
707

5,216
288

6,752
318

6,004 r
282

6,413
302

6,905
314

6,170
324

6,180
282

6,413
351

6,535
347

6,304
352

6,2%
327

6,905
314

9,141

9,180

8,844

8,773

8,817

8,982

8,863

8,922

8,953

8,844

20,418

18,687

25,007

27,660

e

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

21,315

r

26,526

27,660

1. For amounts of cash held as reserves, see table 1.12.
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.




25,365

24,978

25,010

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

A6

DomesticNonfinancialStatistics • June 1993

1.12

R E S E R V E S A N D BORROWINGS

Depository Institutions 1

Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification

Reserve balances with Reserve Banks
Total vault cash 3
Applied vault cash 4 ,
Surplus vault cash
Total reserves 6
Required reserves
Excess reserve balances at R e s e w e Banks
Total borrowings at Reserve Banks
Seasonal borrowings
Extended credit 9

...

1991

1992

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

1990

Dec.

Dec.

Sept.

Oct.

Nov.

Dec.

Jan. r

Feb.

Mar.

30,237
31,789 r
28,884
2,905 r
59,120
57,456
1,664
326
76
23

26,659
32,510
28,872
3,638
55,532
54,553
979
192
38
1

25,368
34,535
31,172
3,364
56,540
55,385
1,155
124
18
1

22,627
32,342
28,894
3,448
51,521
50,527
994
287
193
0

23,626
32,987
29,510
3,477
53,136
52,062
1,074
143
114
0

25,462
32,457
29,205
3,252
54,666
53,624
1,043
104
40
0

25,368
34,535
31,172
3,364
56,540
55,385
1,155
124
18
1

23,636
35,991
32,368
3,623
56,004
54,744
1,260
165
11
1

23,515
33,914
30,368
3,546
53,882
52,778
1,104
45
18
0

24,384
33,293
29,913
3,380
54,297
53,084
1,214
91
26
0

1992

1993

Biweekly averages of daily figures for weeks ending
1992

1993

Nov. 25
1
2
3
4
5
6
7
8
9
10

Reserve balances with Reserve Banks
Total vault cash 3
Applied vault cash 4 ,
Surplus vault cash 5
Total reserves
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks 8
Seasonal borrowings
Extended credit 9

...
...

Dec. 9

Dec. 23

Jan. 6

Jan. 20

Feb. 3 r

Feb. 17

Mar. 3

Mar. 17

Mar. 31

25,730
32,398
29,117
3,281
54,846
53,485
1,361
138
37
0

24,548
34,315
30,918
3,397
55,466
54,625
841
95
22
0

25,209
34,770
31,373
3,397
56,582
55,357
1,225
60
19
2

26,569
34,374
31,105
3,269
57,674
56,289
1,385
269
12
0

24,057
36,388 r
32,829
3,559 r
56,886
55,657
1,229
202
11
1

21,500
36,368
32,470
3,898
53,970
52,740
1,230
64
11
3

23,301
34,764
31,069
3,695
54,370
52,875
1,495
33
18
0

24,335
32,163
28,902
3,261
53,237
52,666
571
56
20
0

24,029
34,487
30,944
3,543
54,973
53,683
1,290
93
22
0

24,750
32,343
29,099
3,244
53,849
52,574
1,275
98
32
0

1. Data in this table also appear in the Board's H.3 (502) weekly statistical
release. For ordering address, see inside front cover.
2. Excludes required clearing balances and adjustments to compensate for float
and includes other off-balance-sheet "as-of" adjustments.
3. Total "lagged" vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash
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. 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

S E L E C T E D BORROWINGS IN IMMEDIATELY A V A I L A B L E F U N D S

A7

Large Banks 1

Millions of dollars, averages of daily figures
1992,
week
ending
Monday

Source and maturity

1993, week ending Monday

Dec. 28

1
2
3
4

5
6
7
8

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
Repurchase agreements on U.S. government
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

and

Jan. 4

Jan. 11

Jan. 18

Jan. 25

Feb. 1

Feb. 8

Feb. 15

Feb. 22

71,828
13,825

74,152
14,797

75,358
13,384

71,974
13,895

66,898
13,456

69,127
14,029

71,676
13,669

70,934
14,049

69,724
13,622

20,597
18,783

19,060
16,955

20,531
17,419

20,277
17,441

19,888
17,469

17,824
17,841

17,465
18,837

17,264
21,448

20,090
21,375

10,237
18,341r

9,686
18,588

11,117
18,592

8,554
18,933

10,218
18,994

10,857
19,447

9,270
20,935

10,038
22,955

13,355
21,937

22,808
14,151

23,596
13,605

23,582
13,567

23,673
13,755

24,379
13,344

24,283
13,866

23,927
12,655

22,917
13,304

24,806
13,440

37,991
18,270

41,340
20,812

37,458
18,322

37,316
22,669

37,614
19,362

41,221
18,469

39,000
21,417

39,517
21,233

38,715
18,716

federal

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 2

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 1993
FEDERAL RESERVE B A N K INTEREST RATES
Percent per year
Current and previous levels
Seasonal credit 2

Adjustment credit 1
Federal Reserve
Bank

Boston
N e w York
Philadelphia
Cleveland
Richmond
Atlanta

On
4/30/93

Effective date

Previous rate

On
4/30/93

7/2/92
7/2/92
7/2/92
7/6/92
7/2/92
7/2/92

3.5

3.00

3
,

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

7/2/92
7/7/92
7/2/92
7/2/92
7/2/92
7/2/92

3

3.5

3.00

Extended credit 3

Effective date

Previous rate

On
4/30/93

4/29/93
4/29/93
4/29/93
4/29/93
4/29/93
4/29/93

3.05

3.50

4/29/93
4/29/93
4/29/93
4/29/93
4/29/93
4/29/93

3.05

3.50

Effective date

Previous rate

4/29/93
4/29/93
4/29/93
4/29/93
4/29/93
4/29/93

3.55

4/29/93
4/29/93
4/29/93
4/29/93
4/29/93
4/29/93

3.55

Range of rates for adjustment credit in recent years 4

Effective date

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

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

1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
1980—Feb.
May
June
July
Sept.
Nov.
Dec.

15
19
29
30
13
16
29
28
26
17
5

Range (or
level)—
All F.R.
Banks
6
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
10
10-10.5
10.5
10.5-11
11
11-12
12
12-13
13
12-13
12
11-12
11
10
10-11
11
12
12-13

F.R.
Bank
of
N.Y.
6
6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5
10
10.5
10.5
11
11
12
12
13
13
13
12
11
11
10
10
11
12
13

Effective

1981-—May

5

Nov.

?
6
4

Dec.

13-14
14
13-14
13
12

F.R.
Bank
of
N.Y.

Effective date

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

14
14
13
13
12

1986—Aug. 21
22

5.5-6
5.5

5.5
5.5

1987—Sept.

4
11

5.5-6
6

6
6

1988—Aug.

9
11

6-6.5

6.5

1989—Feb. 24
27

6.5-7
7

7
7

70
7\
?
3
16
77
30
Oct. 17
13
Nov. 77
76
Dec. 14
15
17

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

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

9
13
Nov. 71
76
Dec. 74

8.5-9
9
8.5-9
8.5
8

9
9
8.5
8.5
8

1985-—May 70
74

7.5-8
7.5

7.5
7.5

7
10
Apr. 71
July 11

7-7.5
7
6.5-7
6

7
7
6.5
6

1982-- J u l y

Aug.

1984-—Apr.

1990—Dec. 19
1991—Feb.
Apr.
May
Sept.
Sept.
Nov.
Dec.
1992—July

1
4
30
2
13
17
6
7
20
24
2
7

In effect Apr. 30, 1993
1986-—Mar.

1. Available on a short-term basis to help depository institutions meet temporary needs for funds that cannot be met through reasonable alternative sources.
The highest rate established for loans to depository institutions may be charged on
adjustment-credit loans of unusual size that result from a major operating problem
at the borrower's facility.
2. Available to help relatively small depository institutions meet regular
seasonal needs for funds that arise from a clear pattern of intrayearly movements
in their deposits and loans and that cannot be met through special industry
lenders. The discount rate on seasonal credit takes into account rates 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. 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

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

3-3.5
3

3
3

3

3

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 N o v . 17, 1980; the surcharge
was subsequently raised to 3 percent on D e c . 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

Type of deposit 2

Net transaction
accounts3
$0 miilion-$46.8 million...
More than $46.8 million 4 ..

12/15/92
12/15/92

3

Nonpersonal time deposits'

12/27/90

4

Eurocurrency liabilities 6 . .

12/27/90

1
2

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. N o corresponding adjustment is to be made in
the event of a decrease. On Dec. 15, 1992, the exemption was raised from $3.6
million to $3.8 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. 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. 15,
1992, for institutions reporting quarterly, and Dec. 24, 1992, for institutions
reporting weekly, the amount was increased from $42.2 million to $46.8 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 116 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 1 Vi 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 1993
F E D E R A L R E S E R V E OPEN MARKET TRANSACTIONS 1
Millions of dollars
1993

1992

Type of transaction

1990

1992

1991

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

U . S . TREASURY SECURITIES

Outright transactions
transactions)

(excluding

matched

Treasury bills
Gross purchases
Gross sales
Exchanges
4
Redemptions

24,739
7,291
241,086
4,400

20,158
120
277,314
1,000

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

271
0
25,041
0

595
0
22,277
0

4,072
0
28,907
0

1,064
0
25,468
0

3,669
0
29,562
0

0
0
24,542
0

0
0
19,832
0

Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions

425
0
25,638
-27,424
0

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

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

0
0
4,448
-4,617
0

350
0
2,753
-1,905
0

0
0
2,010
-982
0

461
0
7,160
-4,615
0

0
0
2,777
-1,570
0

0
0
561
-1,202
0

0
0
2,892
-6,044
0

10
11
1?
13

One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges

250
200
-21,770
25,410

6,583
0
-21,211
24,594

13,118
0
-34,478
25,811

400
0
-4,036
3,567

3,500
0
-2,753
1,905

200
0
-1,762
884

4,172
0
-6,800
3,415

200
0
-2,777
1,570

0
0
-64
882

0
0
-2,617
4,564

14
15
16
17

Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges

0
100
-2,186
789

1,280
0
-2,037
2,894

2,818
0
-1,915
3,532

195
0
-412
700

750
0
0
0

0
0
-248
97

1,176
0
-187
800

100
0
0
0

0
0
-497
0

0
0
-98
0

18
19
20
21

More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges

0
0
-1,681
1,226

375
0
-1,209
600

2,333
0
-269
1,200

0
0
0
350

731
0
0
0

0
0
0
0

947
0
-173
400

0
0
0
0

0
0
0
0

0
0
-177
480

22
23
24

AH maturities
Gross purchases
Gross sales
Redemptions

25,414
7,591
4,400

31,439
120
1,000

34,079
1,628
1,600

866
0
0

5,927
0
0

4,272
0
0

7,820
0
0

3,969
0
0

0
0
0

0
0
0

?<I
26

Matched
transactions
Gross sales
Gross purchases

1,369,052
1,363,434

1,570,456
1,571,534

1,482,467
1,480,140

103,708
101,410

116,331
115,579

116,024
114,917

115,020
117,020

144,232
142,578

114,543
116,510

111,491
113,349

27
28

Repurchase
agreements2
Gross purchases
Gross sales

219,632
202,551

310,084
311,752

378,374
386,257

39,484
31,868

68,697
59,628

18,698
35,383

42,373
39,117

48,904
44,697

34,768
42,231

28,544
25,889

29

Net change in U.S. government securities

24.886

29,729

20,642

6,184

14,244

-13,520

13,075

6,521

-5,497

4,513

0
0
183

0
5
292

0
0
632

0
0
54

0
0
37

0
0
0

0
0
0

0
0
121

0
0
103

0
0
85

41,836
40,461

22,807
23,595

14,565
14,486

601
548

3,222
1,800

1,778
3,253

2,760
2,506

1,601
1,224

2,237
2,868

1,107
832

-1

1,385

-1,475

254

256

-734

190

15,629

-14,995

13,329

6,777

-6,231

4,703

1
2

5
6
7
8
9

F E D E R A L A G E N C Y OBLIGATIONS

30
31
32

Outright
transactions
Gross purchases
Gross sales
Redemptions

33
34

Repurchase
agreements2
Gross purchases
Gross sales

35

Net change in federal agency obligations

1,192

-1,085

-554

36

Total net change in System Open Market
Account

26,078

28,644

20,089

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




6,183

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
Wednesday
1993

Account
Mar. 3

Mar. 10

End of month
1993

Mar. 17

Mar. 24

Mar. 31

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
1 Bought outright
8 Held under repurchase agreements
9 Total U.S. Treasury securities
2

11,055
8,018
527

11,055
8,018
524

11,055
8,018
519

11,055
8,018
516

11,054
8,018
503

11,055
8,018
519

11,055
8,018
525

11,054
8,018
503

61
0
0

28
0
0

922
0
0

44
0
0

753
0
0

35
0
0

57
0
0

753
0
0

5,225
145

5,165
107

5,165
0

5,165
0

5,123
567

5,310
0

5,225
275

5,123
567

303,209

298,110

297,065

299,440

305,217

296,977

301,490

305,217

299,440
143,083
120,211
36,146
0

298,461
142,104
120,211
36,146
6,756

296,977
143,761
118,179
35,037
0

298,835
145,618
117,955
35,261
2,655

298,461
142,104
120,211
36,146
6,756

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

296,079
142,862
117,955
35,261
7,130

297,810
144,593
117,955
35,261
300

297,015
143,799
117,955
35,261
50

15 Total loans and securities

308,639

303,410

303,152

304,649

311,660

302,321

307,046

311,660

6,914
1,027

5,020
1,027

6,129
1,029

7,148
1,030

5,338
1,031

4,565
1,026

4,937
1,026

5,338
1,031

22,276
6,708

22,301
6,497

22,326
6,636

22,384
7,361

22,328
8,092

21,980
7,572

22,263
6,577

22,328
8,092

365,165

357,852

358,864

362,161

368,024

357,057

361,446

368,024

16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 3
19 All other 4
20 Total assets
LIABILITIES

310,007

311,151

311,596

311,490

312,263

306,110

309,080

312,263

22 Total deposits

40,460

33,190

33,577

37,113

41,917

37,632

39,034

41,917

23
24
25
26

32,246
7,640
224
351

27,373
5,242
230
347

25,587
6,930
707
352

31,282
5,216
288
327

34,533
6,752
318
314

27,533
9,572
244
282

33,085
5,350
296
302

34,533
6,752
318
314

5,716
2,290

4,648
2,254

4,769
2,303

4,605
2,268

5,001
2,251

4,174
2,288

4,152
2,323

5,001
2,251

358,473

351,243

352,245

355,476

361,430

350,204

354,589

361,430

3,118
3,054
520

3,155
3,054
400

3,159
3,054
406

3,179
3,054
452

3,187
3,054
353

3,074
2,974
806

3,116
3,054
687

3,187
3,054
353

365,165

357,852

358,864

362,161

368,024

357,057

361,446

368,024

303,372

304,117

301,803

302,617

304,825

297,501

306,378

304,825

21 Federal Reserve notes

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

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

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

34

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

Federal Reserve note statement

35 Federal Reserve notes outstanding (issued to 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

371,135
61,128
310,007

372,175
61,024
311,151

372,940
61,344
311,596

373,719
62,230
311,490

373,886
61,624
312,263

366,486
60,376
306,110

370,756
61,676
309,080

373,886
61,624
312,263

11,055
8,018
0
290,934

11,055
8,018
0
292,078

11,055
8,018
0
292,524

11,055
8,018
0
292,417

11,054
8,018
0
293,190

11,055
8,018
0
287,037

11,055
8,018
0
290,007

11,054
8,018
0
293,190

310,007

311,151

311,596

311,490

312,263

306,110

309,080

312,263

1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly
statistical release. For ordering address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.




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

A12
1.19

DomesticNonfinancialStatistics • June 1993
FEDERAL RESERVE BANKS

Maturity Distribution of Loan and Security Holding

1

Millions of dollars
Wednesday

1993

T y p e and maturity grouping

End of month

1993

Mar. 17

Mar. 3

Mar. 24

Mar. 31

1 Total loans

922
920
3

Feb. 28

753

2
3
4

Jan. 31

741
12

Within fifteen d a y s
Sixteen days to ninety days .
N i n e t y - o n e d a y s to o n e year

0

0

5 Total acceptances
6
7
8

9 Total U.S. Treasury securities..

303,209

0
0
0

0
0
0

0
0
0

Within fifteen d a y s
Sixteen days to ninety d a y s .
Ninety-one d a y s to o n e year

298,110

297,065

299,440

305,217

296,977

301,490

13,740
67,760
96,590
72,194
20,344
28,813

17,889
67,037
99,880
71,255
20,344
28,813

9,160
74,289
98,311
68,686
18,726
27,805

13,331
72,699
97,433
70,291
19,628
28,108

Within fifteen days
Sixteen days t o ninety d a y s .
Ninety-one days to o n e year
O n e year t o five years
F i v e years to ten years
More than ten years

19,048
68,921
96.752
70.753
19,628
28,108

12,941
73,270
93,411
70,753
19,628
28,108

11,416
70,650
96,511
70,753
19,628
28,108

16 Total federal agency obligations

5,370

5,272

5,165

5,164

5,690

5,310

5,500

Within fifteen d a y s 2
Sixteen days to ninety d a y s .
N i n e t y - o n e days to o n e year
One year t o five years
F i v e years to ten years
More than ten years

255
789
1,094
2,379
711
142

148
748
1,094
2,379
761
142

271
543
1,069
2,429
711
142

271
543
1,069
2,429
711
142

855
507
1,057
2,419
711
142

183
840
1,023
2,426
696
142

723
513
1,022
2,389
711
142

10
11
12
13
14
15

17
18
19
20
21
22

2

1. Holdings under repurchase agreements are classified as maturing within
fifteen days in accordance with m a x i m u m maturity of the agreements.




Monetary and Credit Aggregates
1.20

A13

A G G R E G A T E R E S E R V E S OF DEPOSITORY INSTITUTIONS A N D M O N E T A R Y B A S E 1
Billions of dollars, averages of daily figures
1992r
Item

1989
Dec.

1990
Dec.

Aug.

Total reserves 3
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

53.82
53.71
53.71
52.77
347.83

54.35
54.23
54.23
53.20
350.80

54.67 r
54.50 r
54.50"
53.41 r
353.22 r

54.92
54.88
54.88
53.82
355.74

55.17
55.08
55.08
53.95
358.38

Seasonally adjusted

A D J U S T E D FOR
C H A N G E S IN RESERVE R E Q U I R E M E N T S 2

1
2
3
4
5

1993

1992
Dec/

1991
Dec.

45.53 r
40.49 1 41.77 r
41.44 r
40.23 r
45.34 r
r
r
40.25
41.46
45.34 r
39.57 r
40.10 1
44.56 r
r
267.73 293.19" 317.17 r

54.35
54.23
54.23
53.20
350.80

50.34
50.09
50.09
49.41
336.84

51.27
50.99
50.99
50.28
341.59

52.84
52.69
52.69
51.76
344.85

Not seasonally adjusted

6
7
8
9
10

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

41.77
41.51
41.53
40.85
271.18

43.07
42.74
42.77
41.40
296.68

46.98
46.78
46.78
46.00
321.07

56.06
55.93
55.93
54.90
354.55

49.78
49.53
49.53
48.84
336.57

51.07
50.78
50.78
50.08
340.08

52.62
52.47
52.47
51.54
343.63

54.08
53.97
53.97
53.04
347.89

56.06
55.93
55.93
54.90
354.55

55.97
55.80
55.80
54.71
354.41R

53.81
53.77
53.77
52.71
353.18

54.18
54.09
54.09
52.97
356.00

62.81
62.54
62.56
61.89
292.55
.92
.27

59.12
58.80
58.82
57.46
313.70
1.66
.33

55.53
55.34
55.34
54.55
333.61
.98
.19

56.54
56.42
56.42
55.39
360.90
1.16
.12

50.16
49.91
49.91
49.23
342.49
.94
.25

51.52
51.23
51.23
50.53
346.21
.99
.29

53.14
52.99
52.99
52.06
349.81
1.07
.14

54.67
54.56
54.56
53.62
354.25
1.04
.10

56.54
56.42
56.42
55.39
360.90
1.16
.12

56.00
55.84
55.84
54.74R
360.88R
1.26
.17

53.88
53.84
53.84
52.78
359.56
1.10
.05

54.30
54.21
54.21
53.08
362.59
1.21
.09

N O T A D J U S T E D FOR
C H A N G E S IN RESERVE R E Q U I R E M E N T S 1 0
11
12
N
14
15
16
17

Total reserves"
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base
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, DC 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with
regulatory changes in reserve requirements. (See also table 1.10)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally
adjusted, 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 1993
M O N E Y STOCK, L I Q U I D ASSETS, A N D D E B T M E A S U R E S 1
Billions of dollars, averages of daily figures
1992
1989
Dec/

Item

1990
Dec. r

1991
Dec.

1993

1992
Dec. r
Dec. r

Jan. r

Feb.

Mar.

Seasonally adjusted

1
2
3
4
5

Measures2
Ml
M2
M3
L
Debt

6
7
8
9

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

794.6
3,233.3
4,056.1
4,886.1
10,076.7

827.2
3,345.5
4,116.7
4,965.2
10,751.3

899.3
3,445.8
4,168.1
4,982.2
ll,192.7 r

1,026.6
3,497.0
4,166.5
5,051.4
11,768.2

1,026.6
3,497.0
4,166.5
5,051.4
11,768.2

1,033.2
3,486.9
4,140.6
5,029.4
11,800.0

1,032.8
3,474.0
4,132.7
5,024.8
11,843.0

1,034.9
3,471.7
4,127.7
n.a.
n.a.

222.7
6.9
279.8
285.3

246.7
7.8
278.2
294.5

267.2
7.8
290.5
333.8

292.3
8.1
340.9
385.2

292.3
8.1
340.9
385.2

294.8
8.0
341.9
388.5

296.9
8.0
341.9
386.1

299.0
8.0
341.9
386.0

2,438.7
822.8

2,518.3
771.2

2,546.6
722.3

2,470.4
669.5

2,470.4
669.5

2,453.8
653.7

2,441.2
658.7

2,436.7
656.1

Commercial
banks
12 Savings deposits, including MMDAs
13 Small time deposits
14 Large time deposits 1 0 , 11

541.4
534.9
387.7

582.2
610.3
368.7

666.2
601.5
341.3

756.1
507.0
290.2

756.1
507.0
290.2

754.1
502.8
283.7

755.8
504.1
281.2

754.2
502.9
276.8

Thrift institutions
15 Savings deposits, including MMDAs
16 Small time deposits
17 Large time deposits 1 0

349.6
617.8
161.1

338.6
562.0
120.9

376.3
463.2
83.4

429.9
363.2
67.3

429.9
363.2
67.3

430.3
358.2
67.1

426.7
351.0
65.5

425.1
347.3
64.5

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

317.4
108.8

350.5
135.9

363.9
182.1

342.3
202.3

342.3
202.3

339.6
197.7

333.6
201.9

333.1
200.5

2,249.5
7,827.2

2,493.4
8,257.9

2,764.8
8,428.0 r

3,068.8
8,699.4

3,068.8
8,699.4

3,076.3
8,723.7

3,090.0
8,753.0

Nontrgnsaction
10 In M2 7
11 In M3 8

components

Debt
components
20 Federal debt
21 Nonfederal debt

n.a.
n.a.

Not seasonally adjusted

22
23
24
25
26

Measures
Ml
M2
M3
L
Debt

27
28
29
30

Ml
components
Currency 3
,
Travelers checks
Demand deposits 5
Other checkable deposits

811.5
3,245.1
4,066.4
4,906.0
10,063.6

843.7
3,357.0
4,126.3
4,986.5
10,739.9

916.4
3,457.9
4.178.1
5.004.2
ll,182.8 r

1,045.7
3.511.2
4,178.5
5.076.3
11,760.6

1,045.7
3.511.2
4,178.5
5.076.3
11,760.6

1.040.1
3,492.7
4.143.2
5.046.3
11,787.2

1,022.0
3.468.0
4.130.1
5,025.1
11,811.8

1.030.4
3.478.5
4,137.7
n.a.
n.a.

225.3
6.5
291.5
288.1

249.5
7.4
289.9
296.9

269.9
7.4
302.9
336.3

295.0
7.8
355.3
387.7

295.0
7.8
355.3
387.7

293.6
7.8
346.2
392.6

295.3
7.7
334.3
384.6

297.9
7.8
336.3
388.5

2,433.6
821.4

2,513.2
769.3

2,541.5
720.1

2,465.4
667.3

2,465.4
667.3

2,452.6
650.5

2,446.0
662.1

2,448.1
659.2

Commercial
banks
33 Savings deposits, including MMDAs
34 Small time deposits
35 Large time deposits 10 ' 11

543.0
533.8
386.9

580.1
610.5
367.7

663.3
602.0
340.1

752.3
507.8
289.1

752.3
507.8
289.1

749.5
504.6
281.7

753.1
504.8
280.8

757.7
502.3
277.7

Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits
38 Large time deposits 1 0

347.4
616.2
162.0

337.3
562.1
120.6

374.7
463.6
83.1

427.8
363.8
67.1

427.8
363.8
67.1

427.7
359.4
66.6

425.2
351.4
65.4

427.1
346.9
64.7

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

315.7
109.1

348.4
136.2

361.5
182.4

340.0
202.4

340.0
202.4

339.2
202.3

339.8
210.3

342.2
203.2

Repurchase
41 Overnight
42 Term

77.5
178.4

74.7
158.3

76.3
130.1

73.9
126.2

73.9
126.2

72.3
123.0

71.6
127.6

71.9
133.5

2,247.5
7,816.2

2,491.3
8,248.5

3,069.8
8,690.8

3,069.8
8,690.8

3,076.2
8,711.1

3.087.3
8.724.4

Nontrgnsaction
31 I n M 2 7
32 In M3 8

components

agreements

and

Debt
components
43 Federal debt
44 Nonfederal debt
For notes see following page.




eurodollars

2,765.0
8,417.9"

n.a.
n.a.

Monetary and Credit Aggregates

A15

NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
weekly statistical release. Historical data are available from the Money and
Reserves Projection Section, Division of Monetary Affairs, Board of Governors of
the Federal Reserve System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the 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 (including MMDAs) and small time deposits (time deposits—including retail RPs—in
amounts of less than $100,000), and (3) balances in both taxable and tax-exempt
general purpose and broker-dealer money market funds. Excludes individual
retirement accounts (IRAs) and Keogh balances at depository institutions and
money market funds. Also excludes all balances held by U.S. commercial banks,
money market funds (general purpose and broker-dealer), foreign governments
and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this
result to seasonally adjusted M l .
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 ail 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 owed to depository institutions, the U.S. government, and foreign
banks and official institutions, less cash items in the process of collection and
Federal Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions,
credit union share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund
balances (general purpose and broker-dealer), (3) 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 1993
B A N K DEBITS A N D DEPOSIT T U R N O V E R 1
Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates
1992

1993

Bank group, or type of customer

4 Other checkable deposits 4
5 Savings deposits including MMDAs 5

Nov. r

Dec.

Jan.

Seasonally adjusted

D E B I T S TO

Demand
deposits3
1 All insured banks
2 Major N e w York City banks
3 Other banks

Oct. r

Sept.

Aug.

277,157.5
131,699.1
145,458.4

277,758.0
137,352.3
140,405.7

315,806.1
165,572.7
150,233.5

306,923.0
157,221.1
149,702.0

346,658.3
184,740.9
161,917.4

326,893.0
176,372.6
150,520.4

322,187.1
173,393.4
148,793.7

331,038.8
176,089.1
154,949.8

300,484.5
159,069.5
141,415.0

3,349.0
3,483.3

3,645.5
3,266.1

3,788.1
3,331.3

3,763.9
3,139.8

3,942.1
3,559.1

3,700.5
3,468.2

3,610.0
3,497.2

3,683.9
3,407.3

3,311.3
3,054.9

797.8
3,819.8
464.9

803.5
4,270.8
447.9

832.4
4,797.9
435.9

800.0
4,550.9
428.8

892.4
5,254.5
458.3

818.9
4,855.5
414.8

796.1
4,624.0
405.2

830.5
4,693.3
429.1

748.1
4,151.2
389.2

16.5
6.2

16.2
5.3

14.4
4.7

14.2
4.4

14.7
4.9

13.5
4.7

12.9
4.7

13.1
4.6

11.6
4.1

DEPOSIT T U R N O V E R

Demand
deposits3
6 All insured banks
7 Major N e w York City banks
8 Other banks
9 Other checkable deposits 4
10 Savings deposits including MMDAs

Not seasonally adjusted

D E B I T S TO

Demand
deposits3
11 All insured banks
12 Major N e w York City banks
13 Other banks
14 Other checkable deposits 4
15 Savings deposits including MMDAs

277,290.5
131,784.7
145,505.8

277,715.4
137,307.2
140,408.3

315,808.2
165,595.0
150,213.3

315,724.4
162,973.3
152,751.0

334,831.5
178,998.2
155,833.4

335,289.0
182,584.2
152,704.8

308,015.6
167,578.4
140,437.2

340,982.1
179,987.6
160,994.5

304,640.9
159,075.0
145,565.9

3,346.7
3,483.0

3,645.6
3,267.7

3,788.1
3,329.0

3,696.9
3,173.5

3,945.7
3,374.3

3,689.7
3,403.2

3,351.3
3,240.4

3,849.3
3,588.0

3,616.8
3,273.0

798.2
3,825.9
465.0

803.4
4,274.3
447.9

832.5
4,803.5
436.0

836.5
4,870.2
444.1

864.2
5,180.1
441.6

839.2
5,025.6
420.5

754.3
4,494.4
378.5

815.2
4,418.1
426.5

739.7
3,933.2
392.0

16.4
6.2

16.2
5.3

14.4
4.7

14.1
4.4

14.9
4.6

13.7
4.6

12.1
4.4

13.5
4.8

12.5
4.4

DEPOSIT T U R N O V E R

Demand
deposits3
16 All insured banks
17 Major N e w York City banks
18 Other banks
19 Other checkable deposits 4
20 Savings deposits including MMDAs

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, DC
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. Money market deposit accounts.

Commercial Banking Institutions
1.23

L O A N S A N D SECURITIES

A17

All Commercial Banks 1

Billions of dollars, averages of Wednesday figures
1993

1992
Item
Apr.

May

July

June

Aug.

Sept. r

Oct. r

Nov. r

Dec. r

Jan. r

Feb.

Mar.

Seasonally adjusted
1 Total loans and securities 1
7 U.S. government securities
3 Other securities
4 Total loans and leases
Commercial and industrial . . . . .
Bankers acceptances held . . .
6
7
Other commercial and
industrial
8
U.S. addressees 3
9
Non-U.S. addressees 3
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

2,874.3

2,875.3

2,882.8

2,886.9

2,902.2

2,918.2

2,930.2

2,937.4

2,943.7

2,939.8

2,944.5

2,958.0

590.8
178.5
2,104.9
609.0
6.5

600.2
176.9
2,098.2
607.6
6.7

610.7
175.8
2,096.2
604.6
6.3

619.2
177.9
2,089.8
602.5
6.5

632.6
178.2
2,091.4
601.4
6.5

640.8
178.4
2,099.0
601.1
6.3

648.7
179.5
2,101.9
600.9
7.4

653.4
177.7
2,106.2
601.3
7.6

659.8
176.4
2,107.5
599.0
7.1

659.9
174.2
2,105.6
600.2
6.9

670.5
175.6
2,098.4
598.3
8.2

685.1
177.6
2,095.3
594.2
8.4

602.6
593.2
9.4
881.8
360.8
63.4

600.9
590.8
10.1
883.3
359.2
60.9

598.4
588.3
10.1
881.8
359.0
63.3

596.0
585.3
10.7
881.5
358.6
60.5

594.9
584.3
10.6
883.1
357.4
61.6

594.8
583.5
11.3
887.1
357.1
64.0

593.5
582.4
11.1
892.3
356.1
64.7

593.7
582.4
11.3
893.9
355.7
64.3

591.9
580.8
11.1
893.9
355.7
65.0

593.2
581.9
11.4
890.4
358.2
63.2

590.1
578.6
11.5
888.6
360.2
61.9

585.8
573.9
11.9
888.9
360.7
62.8

43.2
34.3

43.3
34.3

42.4
34.6

41.5
34.9

42.0
35.3

44.1
35.2

44.2
35.1

45.1
35.1

44.1
34.8

45.5
34.4

45.3
34.3

45.0
34.2

27.6
6.7
2.0
31.1
45.1

27.3
7.0
2.0
30.9
42.4

26.8
7.5
2.0
31.0
43.3

26.2
7.7
2.2
30.8
43.2

25.9
7.2
2.3
30.8
44.3

25.8
7.9
2.5
31.0
43.1

25.4
7.3
2.4
30.7
42.8

25.2
7.0
2.8
30.6
45.3

24.8
7.0
2.9
30.6
49.9

24.3
6.9
2.9
30.0
49.7

23.7
7.7
3.1
29.9
n.a.

23.5
7.3
3.0
29.9
n.a.

Not seasonally adjusted
20 Total loans and securities 1

2,875.8

2,870.7

2,882.9

2,876.1

2,894.5

2,915.7

2,929.4

2,944.0

2,953.5

2,941.9

2,947.4

2,961.8

21 U.S. government securities
7? Other securities
73 Total loans and leases
74
Commercial and industrial . . . . .
25
Bankers acceptances held . . .
7,6
Other commercial and
industrial
77
U . S . addressees 3
78
Non-U.S. addressees 3
79
Real estate
30
Individual
31
Security
3?
Nonbank financial
institutions
Agricultural
33
State and political
34
subdivisions
35
Foreign banks
36
Foreign official institutions
Lease-financing receivables . . . .
37
38
All other loans

592.6
178.0
2,105.2
612.1
6.3

599.4
176.5
2,094.8
609.4
6.6

608.9
175.4
2,098.7
606.5
6.2

615.3
176.8
2,084.0
601.5
6.3

631.3
178.1
2,085.0
597.6
6.3

638.9
178.1
2,098.7
597.5
6.2

646.5
179.8
2,103.0
598.5
7.2

656.1
178.8
2,109.1
601.5
7.8

658.5
176.6
2,118.4
602.0
7.4

660.3
174.8
2,106.7
598.6
7.1

674.1
175.8
2,097.5
597.5
8.5

690.9
177.3
2,093.7
597.4
8.5

605.8
596.3
9.5
880.7
358.1
66.9

602.7
592.7
10.0
883.4
357.4
58.4

600.3
589.5
10.8
882.0
357.2
63.5

595.2
584.2
11.0
881.6
356.4
58.0

591.4
580.5
10.8
883.7
356.9
59.4

591.3
580.2
11.1
887.9
358.7
62.5

591.3
580.5
10.8
893.0
356.5
64.2

593.7
583.0
10.7
895.4
356.5
63.6

594.6
583.6
11.0
895.2
360.1
65.7

591.5
580.2
11.3
890.2
362.3
64.7

588.9
577.4
11.6
886.8
360.2
64.9

588.9
577.2
11.8
886.3
358.2
64.8

42.6
33.5

42.8
34.0

42.9
35.1

41.3
35.8

41.8
36.5

43.6
36.6

43.8
36.0

45.4
35.1

46.1
34.6

45.7
33.6

45.2
33.0

44.6
32.9

27.6
6.4
2.0
31.2
44.1

27.3
6.8
2.0
30.9
42.5

26.8
7.3
2.0
31.0
44.4

26.1
7.8
2.2
30.6
42.6

25.9
7.0
2.3
30.6
43.2

25.9
8.0
2.5
30.8
44.5

25.5
7.6
2.4
30.6
44.6

25.2
7.3
2.8
30.5
45.7

24.8
7.4
2.9
30.5
49.1

24.1
6.9
2.9
30.3
47.5

23.6
7.5
3.1
30.2
n.a.

23.5
7.0
3.0
30.1
n.a.

1. Adjusted to exclude loans to commercial banks in the United States.
2. Includes nonfinancial commercial paper held.




3. United States includes the fifty states and the District of Columbia.

A18
1.24

DomesticNonfinancialStatistics • June 1993
MAJOR N O N D E P O S I T F U N D S OF COMMERCIAL B A N K S 1
Billions of dollars, monthly averages
1992

1993

Source of funds
Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Seasonally adjusted
1 Total nondeposit funds 2
—
2 Net balances due to related foreign offices . . .
3 Borrowings from other than commercial banks
in United States 4
4
Domestically chartered banks
5
Foreign-related banks

291.9
50.9

292.4
53.7

295.9
61.2

297.0
61.7

302.4
61.4

309.4 r
64.0

304.9 1
63.8 r

309. l r
67.9"

312.9
71.1

312.9 r
74. r

312.3
73.3

323.9
80.0

241.0
154.6
86.5

238.7
151.8
86.9

234.7
147.6
87.2

235.3
147.2
88.1

241.1
151.5
89.6

245.4 r
153.4
92. l r

241.1
154.5
86.6

241.2
153.7
87.5

241.8 r
154.3
87.4

238.8
155.1
83.7

239.0
156.1
82.9

243.9
161.1
82.8

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
11
Domestically chartered banks
12
Federal funds and security RP
borrowings
13
Other 6
14
Foreign-related banks 6

72.6

307.2 r
65.0"
-13.4r
78.3 r

314.3 r
69.6 r
-12.6r
82. l r

312.7
75.2
-15.1
90.3

311.8
76.7
-15.9
92.6

316.6
75.1
-10.6
85.7

328.8
80.7
-7.0
87.8

242.3 r
152.2

242.3
155.7

244.8
158.1

237.5
153.4

235.1
152.1

241.5
157.8

248.0
164.0

146.5
3.9
89.5

148.4
3.8
90. r

152.1
3.6
86.6

154.0
4.1
86.6

149.4
4.0
84.1

148.4
3.6
83.0

154.5
3.2
83.7

n.a.
n.a.
84.0

387.7
387.4

385.8
387.1

383.2
383.6

375.7
374.9

371.3
371.1

366.6
365.5

359.9"
358.0 1

358.4
358.0

355.7
356.6

23.1
19.6

28.0
22.4

24.1
28.6

21.5
21.9

20.7
16.5

20.4
19.5

25.6
33.l r

23.6
29.5

18.8
17.3

288.4
47.9
-4.6
52.6

297.1
55.9
-4.5
60.4

295.2
59.2
-6.3
65.6

291.5
58.4
-7.0
65.4

297.5
57.6
-9.3
66.9

-11.0

240.5
152.7

241.2
153.3

236.0
147.4

233.1
144.1

239.9
150.4

149.2
3.4
87.8

149.4
3.9
87.9

143.3
4.1
88.6

139.9
4.2
89.0

401.5
400.5

397.5
399.4

393.3
394.9

20.8
17.7

19.2
21.0

24.7
25.2

304.0"
61.6

MEMO

Gross large time deposits
15 Seasonally adjusted
16 Not seasonally adjusted
U.S. Treasury demand balances
commercial
banks
17 Seasonally adjusted
18 Not seasonally adjusted

at

1. Commercial banks are nationally and state-chartered banks in the fifty states
and the District of Columbia, agencies and branches of foreign banks, N e w 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.
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

A S S E T S A N D LIABILITIES OF COMMERCIAL B A N K S 1

Wednesday figures

Millions of dollars
1993
Account
Mar. 24

Feb. 3

Feb. 10

Feb. 17

Feb. 24

Mar. 3

Mar. 10

3,118,497
809,779
648,632
161,147
38,214
24,484
2,359
11,372
2,270,504
165,927
2,104,577
601,125
887,582
73,081
814,501
361,281
254,588
210,622
32,591
29,340
29,694
78,029
40,366
289,163

3,101,583
807,871
646,996
160,875
37,268
23,426
2,747
11,095
2,256,444
157,585
2,098,860
596,882
888,769
73,066
815,703
360,843
252,367
195,806
23,825
30,913
27,810
71,524
41,307
287,081

3,107,865
808,337
646,885
161,452
40,623
25,915
2,617
12,091
2,258,906
162,766
2,096,139
597,554
886,139
73,064
813,074
360,069
252,378
227,314
28,745
32,630
33,517
91,596
40,232
282,083

3,085,402
813,306
651,254
162,052
37,014
22,989
2,217
11,808
2,235,082
145,781
2,089,302
595,478
884,179
73,060
811,119
359,614
250,031
199,105
27,888
32,474
28,746
69,239
40,292
281,425

3,132,722
820,520
657,933
162,587
39,280
24,254
2,109
12,917
2,272,922
169,158
2,103,764
599,000
887,717
73,516
814,201
358,413
258,635
210,519
28,655
29,708
30,533
81,013
40,032
290,299

3,120,772
824,462
661,035
163,428
39,929
25,886
2,199
11,843
2,256,381
162,802
2,093,579
596,470
888,194
73,472
814,722
357,595
251,320
195,068
24,017
30,973
28,282
70,767
40,452
287,240

3,131,520
828,667
666,417
162,250
41,232
26,785
2,284
12,162
2,261,622
160,438
2,101,184
599,488
885,691
73,473
812,218
358,081
257,925
199,599
21,818
30,940
29,443
75,241
41,580
280,677

3,101,833
830,804
667,899
162,905
37,743
23,408
2,427
11,908
2,233,286
145,064
2,088,223
5%,290
884,738
73,473
811,265
357,791
249,404
197,328
27,982
31,483
28,633
68,500
40,730
283,052

3,618,283

3,584,470

3,617,262

3,565,933

3,633,540

3,603,079

3,611,796

3,582,213

2,490,711
745,285
4,190
39,279
701,816
745,372
636,553
363,500
512,214
36,822
475,392
340,395

2,478,784
731,402
3,092
36,591
691,719
749,492
634,889
363,001
494,457
31,599
462,858
335,259

2,503,772
758,882
3,482
45,159
710,240
750,326
633,433
361,131
504,864
21,749
483,115
332,448

2,462,605
718,645
3,645
36,419
678,581
746,203
633,159
364,598
487,072
16,048
471,024
338,454

2,503,169
754,761
3,388
38,867
712,506
750,723
636,033
361,652
505,450
5,636
499,814
345,622

2,482,906
734,576
2,967
35,623
695,987
754,157
635,233
358,940
495,543
8,032
487,511
344,869

2,482,159
739,186
2,884
38,026
698,276
752,182
633,494
357,297
507,327
21,073
486,254
342,690

2,462,845
725,248
3,252
36,618
685,378
749,917
631,915
355,764
492,766
15,814
476,952
347,348

3,343,320

3,308,500

3,341,083

3,288,130

3,354,241

3,323,317

3,332,176

3,302,959

274,963

275,970

276,180

277,802

279,298

279,762

279,620

279,254

A L L COMMERCIAL B A N K I N G I N S T I T U T I O N S 2

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

Assets
L o a n s and securities
Investment securities
U . S . government securities
Other
Trading account assets
U . S . government securities
Other securities
."
Other trading account assets
Total loans
Interbank loans
L o a n s excluding interbank
Commercial and industrial
Real estate
Revolving h o m e equity
Other
Individual
All other
Total c a s h assets
Balances with Federal Reserve Banks
Cash in vault
D e m a n d balances at U . S . depository institutions
Cash items
Other cash assets
Other assets

25 Total assets

26
27
28
29
30
31
32
33
34
35
36
37

Liabilities
Total deposits
Transaction accounts
Demand, U . S . government
D e m a n d , depository institutions
Other demand and all checkable deposits
Savings deposits (excluding checkable)
Small time deposits
Time deposits o v e r $100,000
Borrowings
Treasury tax and loan notes
Other
Other liabilities

38 Total liabilities
39 Residual (assets l e s s liabilities) 3
F o o t n o t e s appear o n the following page.




A19

A20
1.25

DomesticNonfinancialStatistics • June 1993
A S S E T S A N D LIABILITIES OF COMMERCIAL B A N K S 1

Wednesday

figures—Continued

Miftk>ns of dollars
1993
Account
Feb. 3

Feb. 10

Feb. 17

Feb. 24

Mar. 3

Mar. 10

Mar. 17

Mar. 24

Mar. 31

Assets
40 Loans and securities
41
Investment securities
42
U.S. government securities
43
Other
44
Trading account assets
45
U.S. government securities
46
Other securities
47
Other trading account assets
4S
Total loans
49
Interbank loans
56
Loans excluding interbank
51
Commercial and industrial
52
Real estate
53
Revolving home equity
54
Other
55
Individual
56
All other
57 Total cash assets
58
Balances with Federal Reserve Banks
59
Cash in vawlt
68
Demand balances at U.S. depository institutions
61
Cash items
62
Other cash assets
63 Other assets

2,760,488
743,685
604,437
139,248
38,214
24,484
2,359
11,372
1,978,590
144,615
1,833,975
437,982
835,517
73,081
762,436
361,281
199,194
184,063
31,768
29,307
28,074
76,086
18,226
177,133

2,745,746
743,335
604,389
138,946
37,268
23,426
2,747
11,095
1,965,143
134,598
1,830,545
435,871
836,707
73,066
763,641
360,843
197,124
168,451
23,330
30,880
26,277
68,711
18,827
177,954

2,751,436
741,316
601,850
139,466
40,623
25,915
2,617
12,091
1,969,497
139,173
1,830,324
436,827
834,275
73,064
761,210
360,069
199,153
201,564
27,962
32,592
31,865
89,311
19,240
175,277

2,733,909
745,544
605,669
139,875
37,014
22,989
2,217
11,808
1,951,351
126,340
1,825,011
436,084
832,704
73,060
759,644
359,614
196,610
172,647
27,409
32,440
27,094
66,781
18,457
171,332

2,770,088
751,900
611,858
140,042
39,280
24,254
2,109
12,917
1,978,908
143,398
1,835,511
438,750
836,523
73,516
763,007
358,413
201,825
182,687
27,784
29,675
29,007
78,875
16,769
175,935

2,760,187
754,262
613,870
140,392
39,929
25,886
2,199
11,843
1,965,9%
135,272
1,830,725
437,510
837,252
73,472
763,780
357,595
198,369
168,152
23,516
30,940
26,800
68,466
17,854
173,380

2,769,015
756,955
617,447
139,508
41,232
26,785
2,284
12,162
1,970,829
137,059
1,833,769
438,952
834,378
73,473
760,905
358,081
202,358
171,611
20,885
30,907
27,928
73,073
18,241
171,004

2,745,135
760,059
619,836
140,224
37,743
23,408
2,427
11,908
1,947,333
123,833
1,823,500
436,722
833,614
73.473
760,141
357,791
195,373
169,815
27.474
31,449
27,045
66,095
17,753
171,465

2,762,833
762,295
621,494
140,801
37,326
22,823
2,768
11,735
1,963,212
136,765
1,826,446
439,124
835,440
73,602
761,838
358,951
192,932
182,901
29,232
31,576
26,606
78,439
17,048
181,4%

64 Total assets

3,121,685

3,092,151

3,128,276

3,077,888

3,128,711

3,101,718

3,111,629

3,086,415

3,127,230

Liabilities
65 Total deposits
66
Transaction accounts
67
Demand, U.S. government
68
Demand, depository institutions
69
Other demand and all checkable deposits
70
Savings deposits (excluding checkable)
71
Small time deposits
72
Time deposits over $100,000
73 Borrowings
74
Treasury tax and loan notes
75
Other
Other liabilities
76

2,333,422
734,352
4,190
36,780
693,382
740,868
634,106
224,097
385,627
36,822
348,805
131,282

2,321,559
720,103
3,091
34,115

744,965
632,446
224,046
367,429
31,599
335,830
130,800

2,349,717
749,024
3,481
42,856
702,687
745,783
631,003
223,907
376,339
21,749
354,590
129,649

2,303,891
708,348
3,645
34,091
670,612
741,5%
630,742
223,205
366,667
16,048
350,619
133,135

2,346,905
744,186
3,387
36,365
704,434
746,140
633,617
222,%3
369,026
5,636
363,390
137,089

2,329,044
724,536
2,967
33,288
688,281
749,571
632,847
222,091
358,299
8,032
350,267
138,222

2,329,157
728,806
2,884
35,467
690,455
747,786
631,144
221,421
370,290
21,073
349,217
136,169

2,309,667
715,134
3,251
34,361
677,522
745,474
629,574
219,485
365,526
15,814
349,712
135,576

2,334,274
745,441
3,881
32,925
708,635
746,990
628,735
213,108
368,998
14,856
354,142
145,919

77 Total liabilities

2,850,331

2,819,789

2,855,705

2,803,694

2,853,021

2,825,565

2,835,617

2,810,769

2,849,191

271,354

272,362

272,571

274,194

275,690

276,154

276,012

275,646

278,040

DOMESTICALLY C H A R T E R E D COMMERCIAL B A N K S 4

78

Residual (assets less liabilities)

3

682,8%

1. Excludes assets and liabilities of International Banking Facilities.
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 and domestic
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.

Weekly Reporting Commercial Banks
1.26

A S S E T S A N D LIABILITIES OF L A R G E W E E K L Y REPORTING COMMERCIAL B A N K S
Millions of dollars, Wednesday figures
1993
Account
Feb. 3

Feb. 10

Feb. 17

Feb. 24

Mar. 3

Mar. 10

Mar. 17

ASSETS

1 Cash and balances due from depository institutions
2 U . S . Treasury and government securities
3
Trading account
4
Investment account
Mortgage-backed securities 1
5
All others, by maturity
6
One year or l e s s
One year through five years
7
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 l e s s
14
More than o n e year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44

Federal funds sold 2
T o commercial banks in the United States
T o nonbank brokers and dealers
T o others 3
Other loans and leases, gross
Commercial and industrial
Bankers acceptances and commercial paper . .
All other
U . S . addressees
N o n - U . S . addressees
Real estate loans
Revolving, h o m e equity
All other
T o individuals for personal expenditures
T o financial institutions
Commercial banks in the United States
Banks in foreign countries
N o n b a n k financial institutions
For purchasing and carrying securities
T o finance agricultural production
T o states and political subdivisions
T o foreign governments and official institutions
All other loans 4
Lease-financing receivables
LESS: Unearned i n c o m e
^
L o a n and lease reserve
Other loans and leases, net
Other assets

45 Total assets

F o o t n o t e s appear o n the following page.




108.

276,
21.

254.
78.
36.
76,
63.

55;
2:
53.
20:
3,
16.

33.
11.

89
61.
22.

5.
982.
278.
2.

276,
274,

1,

398
43
355
185
35
13

1

20.

15
5.
14

1

23
24
2,

36
943
163
1,648,482

97,411
274,967
20.504
254,463
78,659

120,597
277,181
23,109
254,071
78,840

100,834
275,657
20,506
255,151
80,662

105,080
281,664
21,932
259,732
81,194

%,357
282,581
23,026
259,555
81,341

98,%7
285,%2
23,132
262,830
83,447

98,936
284,736
20,521
264,215
83,813

36,852
75,166
63,786
55,862
2,357
53.505
20,262
3,327
16,935
33,243
10,845

36,698
75,459
63,074
56,042
2,009
54,032
20,135
3,250
16,884
33,898
11,839

37,071
75,092
62,326
55,908
1,767
54,141
20,124
3,406
16,718
34,016
11,557

37,827
77,354
63,358
56,199
1,777
54,423
19,986
3,381
16,604
34,437
12,655

37,240
76,150
64,824
56,647
1,860
54,787
20,009
3,378
16,631
34,778
11,586

38,213
76,659
64,511
55,944
1,913
54,031
19,986
3,361
16,625
34,045
11,910

38,894
77,052
64,456
56,575
2,069
54,506
19,995
3,363
16,632
34,511
11,656

78,600
51,875
22,732
3,993
980,124
276,887
3,031
273,856
272,083
1,772
399,407
43,215
356,192
184,631
34,712
12,899
2,151
19,662
16,023
5,485
14,299
1,394
22,867
24,418
2,245
36,866
941,012
164,630

83,946
57,113
22,637
4,196
981,936
278,157
3,030
275,128
273,379
1,749
397,427
43,199
354,227
184,390
35,886
13,438
2,999
19,449
15,199
5,513
14,229
1,556
24,934
24,645
2,271
36,780
942,885
160,047

75,422
48,697
23,229
3,4%
974,476
276,670
2,781
273,889
272,145
1,745
394,603
43,107
351,4%
183,845
33,361
12,522
2,377
18,462
17,160
5,522
14,258
1,486
22,939
24,632
2,253
36,756
935,466
158,5%

89,680
60,491
24,797
4,391
981,342
279,114
2,924
276,190
274,571
1,619
397,443
43,465
353,978
183,753
34,826
12,481
3,306
19,040
5,502
14,221
1,712
24,047
24,658
2,203
37,119
942,021
160,954

80,916
52,051
24,169
4,696
976,948
277,978
2,952
275,025
273,396
1,630
398,035
43,410
354,625
183,288
33,269
12,431
2,233
18,606
15,784
5,500
14,186
1,555
22,821
24,532
2,213
37,038
937,697
159,212

85,559
56,247
24,877
4,435
979,640
278,504
3,141
275,363
273,786
1,577
395,172
43,438
351,734
183,576
34,054
12,860
2,636
18,557
18,135
5,568
14,177
1,463
24,475
24,516
2,201
37,012
940,427
157,300

75,957
47,358
24,460
4,138
970,600
275,852
2,670
273,182
271,632
1,550
394,163
43,400
350,763
183,351
33,325
12,822
2,461
18,041
15,741
5,504
14,145
1,403
22,801
24,315
2,189
36,886
931,525
157,935

1,623,327

1,652,536

1,613,441

1,648,253

1,624,997

1,636,069

1,617,320

16,066

All

A22
1.26

DomesticNonfinancialStatistics • June 1993
A S S E T S A N D LIABILITIES OF L A R G E W E E K L Y REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1993
Account
Feb. 3

Feb. 10

Feb. 17

Feb. 24

Mar. 3

Mar. 10

Mar. 17

Mar. 24

Mar. 31

1,103,346
256,903
206,151
50,752
8,859
1,945
20,839
5,555
618
12,936
116,551
729,891
703,725
26,166
21,440
2,152
2,243
332

1,124,498
278,322
221,986
56,335
9,363
2,073
26,678
6,832
524
10,866
116,588
729,588
703,387
26,201
21,502
2,129
2,241
328

1,091,103
252,959
204,906
48,053
8,936
2,388
21,349
5,243
664
9,473
114,646
723,499
697,665
25,833
21,422
2,051
2,030
330

1,115,967
266,306
216,753
49,553
8,847
2,094
22,182
5,811
556
10,062
121,220
728,441
702,566
25,875
21,415
2,040
2,088
332

1,102,419
255,039
209,670
45,369
8,576
1,835
20,511
4,742
858
8,847
118,168
729,212
703,585
25,627
21,067
2,026
2,203
332

1,105,643
261,756
212,914
48,841
8,759
1,694
21,394
5,715
739
10,540
117,506
726,381
701,163
25,218
20,694
2,026
2,158
340

1,091,549
254,274
205,350
48,923
8,805
2,138
20,727
6,014
810
10,429
116,245
721,031
695,980
25,051
20,475
2,082
2,152
342

1,102,516
268,492
221,484
47,008
8,899
2,346
20,469
5,117
712
9,466
119,189
714,834
692,326
22,508
20,127
487
1,558
336

277,765
0
27,029
250,735

285,886
0
18,102
267,784

277,617
0
12,932
264,685

283,744
35
4,476
279,232

272,951
0
6,461
266,490

282,539
860
17,791
263,888

278,614
0
12,658
265,956

280,917
707
11,624
268,586

LIABILITIES

1,108,340
46 Deposits
261,092
47
Demand deposits
209,951
48
Individuals, partnerships, and corporations
51,141
49
Other holders
9,728
50
States and political subdivisions
2,824
51
U.S. government
22,325
Depository institutions in the United States
52
5,377
53
Banks in foreign countries
564
54
Foreign governments and official institutions
10,322
55
Certified and officers' checks
119,209
56
Transaction balances other than demand deposits . . . .
728,038
57
Nontransaction balances
702,726
58
Individuals, partnerships, and corporations
25,312
59
Other holders
20,827
60
States and political subdivisions
2,070
61
U . S . government
2,086
Depository institutions in the United States
62
329
Foreign governments, official institutions, and banks . . . .
63
64 Liabilities for borrowed money 5
65
Borrowings from Federal Reserve Banks
66
Treasury tax and loan notes
Other liabilities for borrowed money
67
68 Other liabilities (including subordinated notes and
debentures)

298,280
65
31,935
266,280
100,977

100,426

99,531

102,576

105,888

106,760

104,926

103,508

112,434

1,507,596

1,481,536

1,509,914

1,471,295

1,505,599

1,482,130

1,493,109

1,473,671

1,495,867

140,886

141,791

142,623

142,145

142,654

142,867

142,961

143,649

145,067

Total loans and leases, gross, adjusted, plus securities . . 1,340,416
115,165
Time deposits in amounts of $100,000 or more
916
Loans sold outright to affiliates
452
Commercial and industrial
464
Other
.,
24,324
Foreign branch credit extended to U . S . residents
-12,273
Net due to related institutions abroad

1,335,624
114,902
922
452
470
23,892
-14,758

1,340,392
114,874
910
452
458
23,807
-13,611

1,331,801
113,962
909
452
458
23,756
-10,277

1,348,568
113,729
898
453
446
23,407
-8,870

1,344,197
112,598
897
452
445
23,846
-10,560

1,349,907
111,983
8%
451
445
23,850
-8,945

1,339,343
110,167
893
449
444
23,150
-10,070

1,337,946
104,124
869
447
422
23,225
-12,388

69 Total liabOities
70 Residual (total assets less total liabilities) 7
MEMO

71
72
73
74
75
76
77

1. Includes certificates of participation, issued or guaranteed by agencies of the
U.S. government, in pools of residential mortgages.
2. Includes securities purchased under agreements to resell.
3. Includes allocated transfer risk reserve.
4. Includes negotiable order of withdrawal accounts (NOWs), automatic transfer service (ATS), and telephone and preauthorized transfers of savings deposits.
5. Includes borrowings only from other than directly related institutions.
6. Includes federal funds purchased and securities sold under agreements to
repurchase.
7. This balancing item is not intended as a measure of equity capital for use in
capital-adequacy analysis.
8. Excludes loans to and federal funds transactions with commercial banks in
the United States.




9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank
affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
10. Credit extended by foreign branches of domestically chartered weekly
reporting banks to nonbank U.S. residents. Consists mainly of commercial and
industrial loans, but includes an unknown amount of credit extended to other than
nonfinancial businesses.
NOTE. Data that formerly appeared in table 1.28, Assets and Liabilities of Large
Weekly Reporting Commercial Banks in N e w York City, can be obtained from the
Board's H.4.2 (504) weekly statistical release. For ordering address, see inside
front cover.

Weekly Reporting Commercial Banks
1.30

LARGE WEEKLY REPORTING U.S. BRANCHES A N D AGENCIES OF FOREIGN B A N K S
Liabilities 1
Millions of dollars, Wednesday figures

A23

Assets and

1993
Account
Feb. 3

1 Cash and balances due from depository
institutions
2 U.S. Treasury and government agency
securities
3 Other securities.
4 Federal funds sold
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
15
Commercial banks in the United States,
16
Banks in foreign countries
17
Nonbank financial institutions
For purchasing and carrying securities . . .
18
19
To foreign governments and official
institutions
20
All other
21 Other assets (claims on nonrelated parties) .
22 Total assets 3
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 5
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 liabilities 6

Feb. 17

Mar. 3

Mar. 10

Mar. 17

Mar. 24

Mar. 31

17,543

18,122

17,055

17,493

18,488

17,941

18,588

18,277

19,477

26,206
8,259
22,514
5,264
17,250
163,684
97,754

27,803
8,307
20,171
5,394
14,777
164,649
97,747

28,054
8,355
18,346
3,784
14,562
163,256
96,589

28,414
8,516
22,841
5,960
16,881
165,205
97,212

29,245
8,755
22,931
7,213
15,718
162,364
96,968

30,199
8,590
23,720
5,316
18,404
162,457
97,337

29,671
8,577
21,931
4,678
17,252
161,115
96,841

31,416
8,478
23,044
8,710
14,334
160,810
96,272

2,571
96,345
93,254
3,090
33,758
23,980
5,357
1,919
16,704
4,201

2,546
95,207
92,162
3,046
33,801
25,493
5,582
2,004
17,907
3,902

2,776
94,971
91,663
3,307
33,778
26,449
5,814
2,014
18,621
4,069

2,768
93,821
90,517
3,304
33,415
26,446
5,608
1,999
18,840
4,371

2,676
94,536
91,112
3,424
33,297
27,285
6,311
2,195
18.780
4,906

2,697
94,271
90,900
3,371
33,307
25,707
5,582
1,819
18,306
3,903

2,580
94,758
91,363
3,394
33,356
26,074
5,771
1,784
18,520
3,299

2,644
94,198
90,776
3,421
33,272
25,313
5,396
1,666
18,251
2,585

2,699
93,572
90,282
3,291
32,604
25,135
4,956
1,866
18,313
3,794

333
2,358
31,916

407
2,327
31,916

412
2,194
31,117

395
2,040
31,714

398
2,107
32,209

396
2,082
32,090

386
2,004
30,910

370
2,734
30,741

368
2,637
33,934

307,487

304,749

302,616

302,014

312,754

310,535

309,771

306,975

306,235

102,342
4,365

101,909
4,551

100,295
3,765

103,0%
3,998

101.333
4,148

99,966
3,859

99,680
4,061

99,825
3,911

102,792
4,933

2,653
1,712
97,977

2,868
1,683
97,357

2,878
887
96,530

2,952
1,046
99,098

3,144
1,004
97,185

2,962
897
96,107

3,060
1,001
95,619

3,219
693
95,914

3,413
1,519
97,859

69,466
28,511

68,244
29,113

66,900
29,630

69,106
29,992

67,619
29,566

67,240
28,866

66,701
28,918

66,456
29,458

67,958
29,901

87,797
47,476

88,234
45,592

88,470
45,320

83,919
41,104

94,763
47,578

94,459
44,887

94,217
47,768

88,359
43,257

86,619
45,148

14,970
32,506
40,321

11,836
33,757
42,641

14,851
30.469
43,150

10,863
30,242
42,815

14,652
32,926
47,185

14,994
29,893
49,573

16,264
31,504
46,450

11,999
31,259
45,101

18,625
26,523
41,471

8,733
31,588
31,127

9,331
33,310
31,938

9,459
33,691
30,994

8,544
34,271
31,276

9,154
38,030
31,245

9,981
39,591
32,486

10,194
36,256
30,136

9,619
35,483
30,320

9,317
32,154
32,462

307,487

304,749

302,616

302,014

312,754

310,535

309,771

306,975

306,235

212,246
50,502

209,817
48,620

209,722
49,342

208,619
48,926

212,705
48,332

210,498
46,414

213,879
50,431

211,219
51,807

210,082
55,286

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. 24

27,157
8,246
23,360
4,706
18,654
163,546
98,916

MEMO

39 Total loans (gross) and securities, adjusted
40 Net due to related institutions abroad

Feb. 10

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.

A24
1.32

DomesticNonfinancialStatistics • June 1993
COMMERCIAL PAPER A N D B A N K E R S DOLLAR ACCEPTANCES O U T S T A N D I N G
Millions of dollars, end of period
Year ending December

1992

1993

Item
1989

1988

1991

1990

1992

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Commercial paper (seasonally adjusted unless noted otherwise)
458,464

525,831

562,656 r

531,724 r

549,433 r

550,727 r

557,915 r

558,414 r

549,433 r

542,438

529,400

159,777

1 All issuers

183,622

234,242 r

231,751"

230,966"

228,260"

215,126

203,716

1

2
3
4
5

Financial companies
Dealer-placed
paper
Total
Bank-related (not seasonally
adjusted)
Directly placed
paper4
Total
Bank-related (not seasonally
adjusted)

6 Nonfinancial companies

214,706 r

213,823 r

228,260 r

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

210,930

200,036 r

183,379"

172,813r

178,184"

181,388"

179,279"

172,813"

181,264

177,370

1,248
194,931
43,155

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

103,756

5

131,279

147,914r

134,522r

148,360"

138,301"

144,776"

148,169"

148,360"

146,048

148,314

Bankers dollar acceptances (not seasonally adjusted) 6
66,631

8
9
10
11
12

43,770

38,194

37,814

37,599

37,651

38,194

35,995'

35,212

9,433
8,510
924

9,017
7,930
1,087

11,017
9,347
1,670

10,555
9,097
1,458

10,436
9,073
1,363

10,236
8,764
1,472

10,301
9,156
1,145

10,555
9,097
1,458

9,115"
7,922"
1,193

9,869
8,352
1,516

1,066
52,473

918
44,836

1,739
31,014

1,276
26,364

1,803
25,575

1,204
26,159

1,289
26,061

1,276
26,364

1,317
25,563"

1,169
24,175

14,984
14,410
37,237

Basis
13 Imports into United States
14 Exports from United States
15 All other

54,771

1,493
56,052

Holder
Accepting banks
Own bills
Bills bought from other banks
Federal Reserve Banks
Foreign correspondents
Others

62,972

9,086
8,022
1,064

7 Total

15,651
13,683
33,638

13,095
12,703
28,973

12,843
10,351
20,577

12,209
8,096
17,890

12,227
8,051
17,536

12,116
7,849
17,633

12,133
7,673
17,846

12,209
8,096
17,890

11,146
7,740"
17,109

11,120
7,547
16,545

1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other
business lending; insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.
3. Bank-related series were discontinued in January 1989.
4. As reported by financial companies that place their paper directly with
investors.

1.33

5. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. Data on bankers acceptances are gathered from approximately 100 institutions. The reporting group is revised every January.
7. In 1977 the Federal Reserve discontinued operations in bankers acceptances
for its own account.

PRIME RATE C H A R G E D BY B A N K S on Short-Term Business Loans 1
Percent per year
Rate

10.50
10.00
9.50
9.00
8.50
8.00
7.50
6.50
6.00

Period

Average
rate

10.01
8.46
6.25

1990
1991
1992
1990
Feb.
Mar.
Apr.
May .
June
July .
Aug.
Sept.
Oct. .
Nov.
Dec.

10.11
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00

1. Data in this table also appear in the Board's H.15 (519) weekly and G.13
(415) monthly statistical releases. For ordering address, see inside front cover.




Average
rate

1991—Jan. ...
Feb. ..
Mar. ..
Apr. ..
May ...
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec. ..

9.52
9.05
9.00
9.00
8.50
8.50
8.50
8.50
8.20
8.00
7.58
7.21

Period

1992—Jan. ...
Feb. ..
Mar. ..
Apr. ..
May ...
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec.
1993— Jan.
Feb.
Mar.
Apr.

Financial Markets
1.35

A25

I N T E R E S T R A T E S Money and Capital Markets
Averages, percent per year; weekly, monthly, and annual figures are averages of business day data unless otherwise noted
1992
1990

1991

1993, week ending

1993

1992
Dec.

Jan.

Feb.

Mar.

Feb. 26

Mar. 5

Mar. 12

Mar. 19

M O N E Y MARKET INSTRUMENTS

8.10
6.98

5.69
5.45

3.52
3.25

2.92
3.00

3.02
3.00

3.03
3.00

3.07
3.00

2.91
3.00

3.24
3.00

3.02
3.00

3.04
3.00

8.15
8.06
7.95

5.89
5.87
5.85

3.71
3.75
3.80

3.71
3.67
3.70

3.21
3.25
3.35

3.14
3.18
3.27

3.15
3.17
3.24

3.11
3.15
3.23

3.13
3.15
3.23

3.15
3.18
3.26

3.16
3.18
3.24

8.00
7.87
7.53

5.73
5.71
5.60

3.62
3.65
3.63

3.68
3.58
3.52

3.25
3.32
3.29

3.18
3.27
3.21

3.15
3.17
3.14

3.17
3.26
3.20

3.20
3.24
3.17

3.18
3.21
3.17

3.16
3.17
3.16

7.93
7.80

5.70
5.67

3.62
3.67

3.44
3.47

3.14
3.23

3.06
3.15

3.07
3.14

3.05
3.10

3.06
3.11

3.08
3.15

3.08
3.15

8.15
8.15
8.17

5.82
5.83
5.91

3.64
3.68
3.76

3.57
3.48
3.55

3.14
3.19
3.33

3.08
3.12
3.22

3.10
3.11
3.20

3.06
3.10
3.18

3.10
3.11
3.19

3.09
3.12
3.21

3.10
3.11
3.21

8.16

5.86

3.70

3.50

3.22

3.12

3.11

3.08

3.08

3.13

3.13

7.50
7.46
7.35

5.38
5.44
5.52

3.43
3.54
3.71

3.22
3.36
3.55

3.00
3.14
3.35

2.93
3.07
3.25

2.95
3.05
3.20

2.95
3.04
3.17

2.95
3.04
3.17

2.98
3.09
3.26

2.97
3.08
3.22

7.51
7.47
7.36

5.42
5.49
5.54

3.45
3.57
3.75

3.25
3.39
3.57

3.06
3.17
3.52

2.95
3.08
3.32

2.97
3.08
3.09

2.96
3.06
n.a.

2.97
3.05
n.a.

2.98
3.09
3.09

3.00
3.12
n.a.

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

3.89
4.77
5.30
6.19
6.63
7.01
7.67

3.71
4.67
5.21
6.08
6.46
6.77
7.44

3.50
4.39
4.93
5.83
6.26
6.60
7.34

3.39
4.10
4.58
5.43
5.87
6.26
7.09

3.33
3.95
4.40
5.19
5.66
5.98
6.82

3.31
3.95
4.38
5.21
5.64
6.02
6.89

3.30
3.85
4.28
5.09
5.54
5.90
6.79

3.39
4.03
4.47
5.24
5.65
5.96
6.76

3.36
3.99
4.46
5.23
5.73
6.03
6.85

8.74

8.16

7.52

7.30

7.17

6.89

6.65

6.70

6.58

6.59

6.69

6.96
7.29
7.27

6.56
6.99
6.92

6.09
6.48
6.44

5.91
6.27
6.22

5.91
6.28
6.16

5.61
5.98
5.87

5.42
5.81
5.64

5.47
5.84
5.60

5.29
5.66
5.47

5.18
5.58
5.58

5.64
6.05
5.71

9.77

9.23

8.55

8.35

8.24

8.01

7.83

7.88

7.81

7.80

7.85

9.32
9.56
9.82
10.36

8.77
9.05
9.30
9.80

8.14
8.46
8.62
8.98

7.98
8.24
8.37
8.81

7.91
8.11
8.26
8.67

7.71
7.90
8.03
8.39

7.58
7.72
7.86
8.15

7.61
7.77
7.90
8.22

7.56
7.70
7.84
8.12

7.54
7.70
7.83
8.11

7.61
7.74
7.88
8.16

10.01

9.32

8.52

8.27

8.13

7.80

7.61

7.63

7.47

7.62

7.58

MEMO
7.45
8.17
7.46
8.96
2.90
Dividend-price
ratio
2.99
3.61
3.25
38 Preferred stocks
39 Common stocks
1. The daily effective federal funds rate is a weighted average of rates on
trades through N e w York brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday
of the current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Rate for the Federal Reserve Bank of N e w 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 A A 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.

7.25
2.88

7.37
2.81

6.70
2.76

7.29
2.82

6.82
2.77

6.66
2.73

6.73
2.78

1 Federal funds 1 , 2 , 3
2 Discount window borrowing^
paper3'5,6

3
4
5

Commercial
1-month
3-month
6-month

6
7
8

Finance paper,
1-month
3-month
6-month

placed3,5,7

directly

9
10

Bankers
acceptances3,5,8
3-month
6-month

11
12
13

Certificates of deposit,
marker
1-month
3-month
6-month

secondary

14 Eurodollar deposits, 3-month 3 1 0
U.S. Treasury bills
Secondary market 3,5
3-month
6-month
1-year
Auction average ' ''
18
3-month
19
6-month
20
1-year
15
16
17

U . S . TREASURY N O T E S A N D B O N D S

21
22
23
24
25
26
27

Constant
1-year
2-year
3-year
5-year
7-year
10-year
30-year

maturities12

Composite
28 More than 10 years (long-term)
STATE A N D LOCAL N O T E S A N D B O N D S

Moody's
series13
29 Aaa
30 Baa
31 Bond Buyer series 14
CORPORATE B O N D S

32 Seasoned issues, all industries 15
Rating
33 Aaa
34 Aa
35 A

group

36 Baa
37 A-rated, recently offered utility bonds 16 .




12. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
13. General obligations based on Thursday figures; Moody's Investors Service.
14. General obligations only, with twenty years to maturity, issued by twenty
state and local governmental units of mixed quality. Based on figures for
Thursday.
15. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently offered, A-rated utility bonds with a thirty-year maturity and five
years of call protection. Weekly data are based on Friday quotations.
17. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten 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 ordering address, see inside front cover.

A26
1.36

DomesticNonfinancialStatistics • June 1993
STOCK MARKET

Selected Statistics
1992

Indicator

1991

1990

1993

1992
July

Aug.

Sept.

Nov.

Oct.

Jan.

Dec.

Feb.

Mar.

Prices and trading volume (averages of daily figures)
Common stock prices
(indexes)
1 N e w York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
5
Finance

183.66
226.06
158.80
90.72
133.21

206.35
258.16
173.97
92.64
150.84

229.00
284.26
201.02
99.48
179.29

228.17
281.90
198.36
101.18
180.96

230.07
284.44
191.31
103.41
180.47

230.13
285.76
191.61
102.26
178.27

226.97
279.70
192.30
101.62
181.36

232.84
287.80
204.63
101.13
189.27

239.47
290.77
212.35
103.85
196.87

239.75 r
292.11
221.00
105.52
203.38

243.41
294.40
226.96
109.45
209.93

248.12
298.75
229.42
112.53
217.01

6 Standard & Poor's Corporation
( 1 9 4 1 - 4 3 = 10)'

335.01

376.20

415.75

415.05

417.93

418.48

412.50

422.84

435.64

435.40 r

441.76

450.15

7 American Stock Exchange
(Aug. 31, 1973 = 5 0 ?

338.32

360.32

391.28

384.07

385.80

382.67

371.27

387.75

392.69

402.75 r

409.39

418.56

156,359
13,155

179,411
12,486

202,558
14,171

194,138
10,722

174,003
11,875

191,774
11,198

204,787
11,966

208,221
14,925

222,736
16,523

266,011
17,184

288,540
18,154

251,170
16,150

Volume of trading (thousands
8 N e w York Stock Exchange
9 American Stock Exchange

of

shares)

Customer financing (millions of dollars, end-of-period balances)
28,210

10 Margin credit at broker-dealers
Free credit balances
11 Margin accounts 5
12 Cash accounts

at

36,660

43,990

39,640

39,940

41,250

41,590

43,630

43,990

44,020

44,290

45,160

8,050
19,285

8,290
19,255

8,970
22,510

7,920
18,775

8,060
18,305

8,060
19,650

8,355
18,700

8,500
19,310

8,970
22,510

8,980
20,360

9,790
22,190

9,650
21,450

4

brokers

Margin requirements (percent of market value and effective date) 6

13 Margin stocks
14 Convertible bonds
15 Short sales

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

1. 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 the exercise of subscription rights, corporate bonds, and
government securities. Separate reporting of data for margin stocks, convertible
bonds, and subscription issues was discontinued in April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to brokers and are subject to withdrawal by customers on demand.
5. N e w 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




Jan. 3, 1974

ooo

Mar. 11, 1968

on securities other than options are the difference between the market value (100
percent) and the maximum loan value of collateral as prescribed by the Board.
Regulation T was adopted effective Oct. 15, 1934; Regulation U , effective May 1,
1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1,
1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market value of the stock underlying the option. On
Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
Effective June 8, 1988, margins were set to be the price of the option plus 20
percent of the market value of the stock underlying the option (or 15 percent in the
case of stock-index options).

Financial Markets
1.37

S E L E C T E D F I N A N C I A L INSTITUTIONS

All

Selected Assets and Liabilities

Millions of dollars, end of period
1993

1992
1990

Account

1991
Apr.

May

June

July

Aug.

Sept.

Nov.

Oct.

Dec.

Jan.

n.a.

n.a.

SAIF-insured institutions
1 Assets

1,084,821

919,979

872,026

870,334

861,517

856,390

856,165

847,235

846,730

840,605

633,385

551,322

524,954

521,911

516,654

512,264

512,077

508,815

502,863

496,974

155,228

129,461

124,763

124,225

123,282

122,385

120,438

119,715

120,715

120,292

16,897
24,125
48,753

12,307
17,139
41,775

10,959
15,075
37,999

11,120
14,607
37,868

11,282
14,020
37,403

11,044
13,929
37,230

11,164
13,525
37,123

11,073
13,419
36,732

11,207
13,630
35,938

10,509
13,180
36,019

2 Mortgages
3 Mortgage-backed
securities
4
Contra-assets to
mortgage assets 1 .
5 Commercial loans
6 Consumer loans
7
Contra-assets to nonmortgage l o a n s 1 . .
8 Cash and investment
securities
9 Other 2

1,939

1,239

980

949

944

910

932

982

931

845

146,644
95,522

120,077
73,751

116,462
64,711

120,763
63,030

119,539
62,844

120,220
62,317

124,140
60,958

120,684
59,925

126,719
59,002

127,893
57,600

10 Liabilities and net worth . 1,084,821

919,979

872,026

870,334

861,517

856,390

856,165

847,235

846,730

840,605

835,496
197,353
100,391
96,962
21,332
30,640

731,937
121,923
65,842
56,081
17,560
48,559

689,777
111,262
62,268
48,994
18,883
52,103

688,199
110,126
61,439
48,687
19,626
52,383

682,535
108,943
62,760
46,183
17,740
52,299

676,141
109,036
62,359
46,677
18,570
52,642

672,354
110,109
62,225
47,884
20,523
53,178

667,027
110,022
64,105
45,917
18,017
52,169

660,906
114,123
63,065
51,058
19,853
51,846

654,047
114,354
64,742
49,612
20,406
51,798

11
12
13
14
15
16

Deposits
Borrowed money
FHLBB
Other
Other
N e t 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 assets, 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. Contra-assets to nonmortgage loans include loans in process, unearned
discounts and deferred loan fees, and specific reserves and valuation allowances.
2. Includes holding of stock in Federal Home Loan Bank and finance leases
plus interest.

1.38

NOTE. Components do not sum to totals because of rounding. Data for credit
unions and life insurance companies have been deleted from this table. Starting in
the December 1991 issue, data for life insurance companies are shown in a special
table of quarterly data.
SOURCE. Office of Thrift Supevision (OTS), insured by the Savings Association
Insurance Fund (SAIF) and regulated by the OTS.

F E D E R A L F I S C A L A N D F I N A N C I N G OPERATIONS
Millions of dollars
Fiscal year

Calendar year

1993

1992

Type of account or operation
1990

1991

1992r
Oct.

U.S. budget'
1 Receipts, total
7.
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
7 Surplus or deficit ( - ) , total
8
On-budget
Off-budget
9
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase ( - ) ) . . .
12 Other 2

Nov.

Dec.

Jan.

Feb.

Mar.

1,031,308
749,654
281,654
1,251,766
1,026,701
225,064
-220,458
-277,047
56,590

1,054,265
760,382
293,883
1,323,757
1,082,072
241,685
-269,492
-321,690
52,198

1,090,499
788,073
302,426
1,380,482
1,128,143
252,339
-289,983
-340,070
50,087

76,832
55,056
21,776
125,627 r
103,786r
21,841
-48,795 r
-48,730"
-65

74,633
51,219
23,414
107,361 r
83,442 r
23,919
-32,728r
-32,223r
-505

113,690"
89,594 r
24,096
152,636 r
116,575 r
36,061
-38,946r
-26,981r
-11,965

112,718 r
90,129
22,589
82,903 r
84,928 r
-2,025
29,815 r
5,201 r
24,614

66,136 r
41,036 r
25,100
113,730 r
89,274 r
24,456
-47,594
-48,238r
644

83,453
57,259
26,194
128,029
103,793
24,237
-46,577
-46,534
1,957

220,101
818
-461

276,802
-1,329
-5,981

310,918
-17,305
-3,630

-1,552
39,420
10,927r

61,969
-7,346
-21,895r

21,078
-3,175
21,043 r

-8,355
-16,436
-5,024r

30,689
27,227
-10,322

37,727
-2,452
9,302

40,155
7,638
32,517

41,484
7,928
33,556

58,789
24,586
34,203

19,369
4,413
14,956

26,715
6,985
19,729

29,890
7,492
22,399

46,326
9,572
36,754

19,099
5,350
13,749

21,551
6,752
14,799

MEMO

13 Treasury operating balance (level, end of
period)
14
Federal Reserve Banks
15
Tax and loan accounts

1. 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) off budget. The Postal Service is included as an off-budget
item in the Monthly Treasury Statement beginning in 1990.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota
in the International Monetary Fund (IMF); loans to the IMF; other cash and




monetary assets; accrued interest payable to the public; allocations of SDRs;
deposit funds; miscellaneous liability (including checks outstanding) and asset
accounts; seigniorage; increment on gold; net gain or loss for U . S . currency
valuation adjustment; net gain or loss for IMF loan-valuation adjustment; and
profit on sale of gold.
SOURCES. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government (MTS) and the Budget of the U.S.
Government.

A28
1.39

D o m e s t i c Financial Statistics • June 1993
U . S . B U D G E T RECEIPTS A N D O U T L A Y S 1
Millions of dollars
Fiscal year

Calendar year
1991

Source or type
1991

1992

1993

1992
Hlr

H2

Jan.

Feb.

Mar.

519,180"^

560,341

540,501 r

112,718 r

r

HI

H2

540,504

RECEIPTS

1,054,265

1 All sources

2 Individual income taxes, net

12
13

Withheld
Presidential Election Campaign Fund . . . .
Nonwithheld
Refunds
Corporation income taxes
Gross receipts
Refunds
Social insurance taxes and contributions,
net
Employment taxes and
contributions
Self-employment taxes and
contributions 3
Unemployment insurance
Other net receipts 4

14
15
16
17

Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts

3
4
6

1
8
9
10
11

1,090,499"

66,136

83,453

467,827
404,152
32
142,693
79,050

r

476,l22
408,352
30
149,342
81,691 r

232,389
193,440
31
109,405
70,487

234,939
210,552
1
33,296
8,910"^

236,719
198,868
20
110,997
73,165

246,961
215,591
10
39,371
8,011

73,704
36,255
0
38,452
1,003

23,947
33,652
4
967
10,677

27,935
40,006
6
5,253
17,330

113,599
15,513

117,951
17,680

58,903
7,904

54,016
8,649

61,682
9,403

58,022
7,219

3,969
758

2,510
1,719

14,644
1,920

396,011

413,689

214,303

186,839

224,570

192,599

29,416

34,251

33,652

370,526

385,491

199,727

175,802

208,110

180,758

28,209

31,623

32,980

25,457
20,922
4,563

24,421
23,410
4,788

22,150
12,296
2,279

3,306
8,721
2,317

20,433
14,070
2,389

3,988
9,397
2,445

-3,032
844
363

1,487
2,259
369

873
240
432

42,430
15,921
11,138
22,852

45,570
17,359
11,143
26,507 r

20,703
7,488
5,631
8,991

24,429
8,694
5,507
13,405r

22,389
8,146
5,701
10,686

23,456
9,497
5,733
11,467r

3,307
1,310
888
88 l r

3,342
1,347
822
1,637

4,514
1,598
977
2,051

1,323,757

l,380,482 r

632,153

694,362 r

704,279

723,201 r

82,903 r

113,730

128,029

298,361
16,106
16,409
4,509
20,017
14,997

122,089
7,592
7,496
1,235
8,324
7,684

147,669
7,691
8,472
1,698
11,130
7,418

147,064
8,537
7,952
1,442
8,607
7,526

155,501
9,911
8,521
3,109
11,617
8,881

19,683
1,161
1,395
15
1,372
1,206

22,903
1,253
1,325
399
1,282
1,145

25,511
1,181
1,103
560
1,549
4,244

17,992
14,748
3,552

36,534
17,093
3,783

15,610
15,676
3,902

-7,843
18,477
4,540

-1,832
2,363
650

-3,532
2,093
690

-1,368
3,383
760

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

29 Health
30 Social security and medicare
31 Income security
32
33
34
35
36

Veterans benefits and services
Administration of justice
General government
Net interest 6
Undistributed offsetting receipts

272,514
16,167
15,946
2,511
18,708
14,864
75,639
31,531
7,432

9,753 r
33,759"
7,923 r

41,479

45,248

21,234

21,114

23,225

20,922

4,360

4,068

4,607

71,183
373,495
171,618

89,570
406,569 r
197,867r

35,608
190,247
88,778

41,459
193,098
87,693 r

44,034
205,500
104,951

47,223
232,109
98,693 r

7,828
10,376
16,135 r

8,053
35,005
21,259

8,379
37,235
21,056

31,344
12,295
11,358
195,012
-39,356

34,133
14,450
12,939
199,429
-39,280

15,596
7,434
5,050
100,401
-18,228

18,561
7,283
8,138
98,549
-20,914

1,641
1,222
133
17,858
-2,660

2,649
1,060
994
15,893
-2,809

4,090
1,270
1,040
16,415
-2,987

14,326
6,187
5,212
98,556
-18,702

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.




17,425
6,574
6,794
99,149
-20,436

5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Includes interest received by trust funds.
7. Consists of rents and royalties for the outer continental shelf and 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 1994.

Federal Finance
1.40

A29

FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions o f dollars, end o f month
1993
Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

1 Federal debt outstanding

3,492

3,563

3,683

3,820

3,897

4,001

4,083

4,196

2 Public debt securities
3
Held by public
4
Held by agencies

3,465
2,598
867

3,538
2,643
895

3,665
2,746
920

3,802
2,833
969

3,881
2,918
964

3,985
2,977
1,008

4,065
3,048
1,016

4,177
3,129
1,048

27
26

25
25

18
18

19
19

16
16

16
16

18
18

19
19

3,377

3,450

3,569

3,707

3,784

3,891

3,973

4,086

4,140R

3,377

3,450

3,569

3,706

3,783

3,890

3,972

4,085

4,139"

4,145

4,145

4,145

4,145

4,145"

5 Agency securities
6
Held by public
7
Held by agencies

0

8 Debt subject to statutory limit.
9 Public debt securities
10 Other debt 1

0

0

0

MEMO

0

0

0

4,145

11 Statutory debt limit
1. Consists of guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.

1.41

0

GROSS PUBLIC DEBT OF U.S. TREASURY

0

0

0

0

0

0

SOURCES. U.S. Treasury Department, Monthly Statement
the United States and Treasury Bulletin.

Dec. 31

0

0

4,231 r
n.a. r
n.a. 1
n.a. r
n.a. r
n.a. r

0
"

of the Public Debt of

Types and Ownership

Billions of dollars, end o f period
1993

1992
Type and holder

1989

1990

1991

1992
Q2

1 Total gross public debt
By type
2 Interest-bearing
3
Marketable
4
Bills
5
Notes
6
Bonds
7
Nonmarketable
8
State and local government series
9
Foreign issues
10
Government
11
Public
12
Savings bonds and notes.
13
Government account series
14 Non-interest-bearing
By holder 4
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
23
Savings bonds
24
Other securities
25
Foreign and international
26
Other miscellaneous investors

Q4

Q1

2,953.0

3,364.8

3,801.7

4,177.0

3,984.7

4,064.6

4,177.0

4,230.6

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

4,173.9
2,754.1
657.7
1,608.9
472.5
1,419.8
153.5
37.4
37.4
.0
155.0
1,043.5
3.1

3,981.8
2,605.1
618.2
1,517.6
454.3
1,376.7
161.9
38.7
38.7
.0
143.2
1,002.5
2.9

4,061.8
2,677.5
634.3
1,566.4
461.8
1,384.3
157.6
37.0
37.0
.0
148.3
1,011.0
2.8

4,173.9
2,754.1
657.7
1,608.9
472.5
1,419.8
153.5
37.4
37.4
.0
155.0
1,043.5
3.1

4,227.6
2,807.1
659.9
1,652.1
480.2
1,420.5
151.6
37.0
37.0
.0
161.4
1,040.0
3.0

707.8
228.4
2,015.8
164.9
14.9
125.1
93.4
487.5

828.3
259.8
2,288.3
171.5
45.4
142.0
108.9
490.4

968.7
281.8
2,563.2
233.4
80.0
168.7
150.8
520.3

1,047.8
302.5
2,839.9
292.0
80.6
183.0
192.5
532.0

1,007.9
276.9
2,712.4
267.3"
79.4
180.8"
175.0
528.5

1,016.3
296.4
2,765.5
286.7"
79.8"
181.6"
180.8
530.0

1,047.8
302.5
2,839.9
292.0
80.6
183,0
192.5
532.0

117.7
98.7
392.9
520.7

126.2
107.6
421.7
674.5

138.1
125.8
455.0
691.1

157.3
131.9
512.5
758.1

145.4
129.7
492.9
713.5"

150.3
130.9
499.0
726.3"

157.3
131.9
512.5
758.1

1. Includes (not shown separately) securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
2. Nonmarketable series denominated in dollars, and series denominated in
foreign currency held by foreigners.
3. Held almost entirely by U.S. Treasury and other federal agencies and trust
funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.




Q3

n.a.

5. Consists of investments of foreign balances and international accounts in the
United States.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally sponsored agencies.
SOURCES. U.S. Treasury Department, data by type of security, Monthly
Statement of the Public Debt of the United States; data by holder, the Treasury
Bulletin.

A30
1.42

DomesticNonfinancialStatistics • June 1993
U . S . G O V E R N M E N T SECURITIES D E A L E R S

Transactions 1

Millions of dollars, daily averages
1992

1993, week ending

1993

Item
Dec.

Jan.

Feb.

Feb. 3

Feb. 10

Feb. 17

Feb. 24

Mar. 3

Mar. 10

Mar. 17

Mar. 24

Mar. 31

IMMEDIATE TRANSACTIONS 2

1

2
3
4

5
6
7
8
9
10

11
12
13
14
15
16

By type of security
U.S. Treasury securities
Bills
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 securities
Debt, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed
Pass-throughs
All others
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

42,358

48,056

44,513

42,512

46,358

43,801

45,439

42,368

60,426

37,544

39,583

36,322

36,143
28,723
13,054
11,093

47,717
46,216
19,149
16,239

56,575
48,292
28,505
21,480

50,106
46,365
21,061
16,349

58,885
44,155
30,741
18,095

55,363
42,127
27,176
26,574

63,656
60,642
33,253
25,249

45,826
46,067
25,537
15,485

55,509
53,711
30,411
23,961

43,753
43,393
24,281
19,067

47,550
40,783
19,568
14,606

43,291
42,606
17,455
13,979

824r
l,169 r

6,719
881
1,194

7,082
877
1,046

7,228
955
1,350

6,727
715
1,157

6,213
880
1,186

6,151
1,123
1,138

4,902
854
1,070

5,281
706
1,022

6,042
887
1,171

6,718
503
1,228

14,208
3,122

20,000
3,751 r

22,544
4,505

15,083
4,909

29,594
3,406

24,142
3,413

20,093
5,772

18,247
6,206

22,852
3,641

14,743
3,391

9,641
3,517

9,461
4,369

80,472

109,246

123,551

108,449

124,847

119,783

141,507

107,496

137,942

106,929

99,558

97,963

l,275 r
7,917

l,779 r
10,454r

1,970
11,755

2,051
8,613

2,052
15,762

1,957
12,384

1,787
10,043

2,133
9,153

1,711
10,936

1,550
7,283

1,776
5,164

1,832
5,108

5,635
55 LR
827

<

68,131

75,815

67,945

73,387

75,258

86,733

67,787

86,077

61,111

62,531

55,689

5.737 1
9,413

6,384 r
13,296

6,825
15,295

6,954
11,379

7,481
17,238

6,642
15,172

6,493
15,821

6,278
15,299

5,116
15,558

5,458
10,851

6,324
7,995

6,616
8,722

2,464

2,584

2,670

3,106

2,280

1,800

3,029

4,271

3,630

1,192

1,693

1,067

1,637
1,179
2,336
6,427

2,155
1,486
2,668
9,140

2,622
1,885
3,845
11,748

2,104
1,675
3,114
8,940

2,560
1,396
3,985
10,777

2,420
1,562
3,900
13,241

3,230
2,624
3,803
13,161

2,542
2,382
4,557
11,121

3,156
3,240
5,315
17,788

2,058
1,913
2,719
11,479

2,269
1,841
2,578
8,436

1,791
2,096
2,937
7,764

50,898

FUTURES AND FORWARD
TRANSACTIONS

By type of deliverable
security
U . S . Treasury securities
17 Bills
Coupon securities, by maturity
L e s s than 3.5 years
18
3.5 to 7.5 years
19
7.5 to 15 years
20
15 years or more
21
Federal agency securities
Debt, by maturity
Less than 3.5 years
22
3.5 to 7.5 years
23
24
7.5 years or more
Mortgage-backed
Pass-tlu-oughs
25
Others 3
26

97
48
18

45
114
78 r

72
129
44

53
216
16

63
196
92

73
46
45

108
46
19

28
248
25

79
40
17

21
73
39

243
100
38

63
105
39

11,895
829

16,656
l,274 r

17,476
1,478

14,680
789

20,912
987

18,287
2,127

13,656
1,734

20,604
1,480

27,008
1,095

26,029
1,802

18,238
1,893

18,189
1,089

1,401
378
341
820

1,537
782
573
1,233

1,692
443
679
1,286

1,077
538
385
775

1,300
318
586
1,217

2,218
339
1,236

2,025
712
1,020
1,881

1,450
197
1,118
865

2,564
418
710
1,231

1,538
408
620
1,150

1,271
534
745
835

1,400
503
413
737

338

563

563

448

472

580

781

371

709

610

479

675

OPTIONS 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

1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of N e w York by the U.S. government securities dealers on
its published list of primary dealers. Averages are based on the number of trading
days in the period. Immediate, forward, and futures transactions are reported at
principal value, which does not include accrued interest; options transactions are
reported at the face value of the underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. 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 agency
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 (10s),
and principal-only securities (POs).




431

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 business
days. Forward contracts for mortgage-backed agency 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, "n.a." indicates that data are not published
because of insufficient activity.
Data for several types of options transactions—U.S. Treasury securities, bills;
Federal agency securities, debt; and mortgage-backed securities, other than
pass-throughs—are no longer available because activity is insufficient.

Federal Finance
1.43

U . S . G O V E R N M E N T SECURITIES D E A L E R S

A31

Positions and Financing 1

Millions of dollars
1993, week ending

1993

1992
Item
Dec.

Jan.

Feb. 3

Feb.

Feb. 10

Feb. 17

Feb. 24

Mar. 3

Mar. 10

Mar. 17

Mar. 24

Positions

N E T I M M E D I A T E POSITIONS

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

By type of security
U.S. Treasury securities
Bills
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 securities
Debt, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed
Pass-throughs
All others
Other money market instruments
Certificates of deposit
Commercial paper
Bankers acceptances

15,994

6,278

4,883

1

3,812

6,383

4,898

7,769

6,217

6,902

14,322

25
-7,221
-10,158
7,071

-4,518
-7,905
-13,562
7,040

800
-10,824
-9,682
7,126

-1,172
-7,477
-12,296
6,194

1,001
-11,500
-7,470
6,230

-3,186
-14,471
-9,376
8,957

3,014
-9,228
-10,188
6,671

5,028
-8,561
-11,245
6,988

1,793
-12,575
-8,861
9,114

-3,334
-15,080
-9,285
9,691

2,800
-15,846
-11,208
10,149

6,674
2,708
3,811

8,112
2,188
3,750

7,881
2,545
3,440

7,125
2,169
3,424

4,245
3,239
4,188

6,943
3,397
4,524

6,310
3,303
4,772

8,741
3,411
4,801

5,604
3,372
5,240

4,297 r
3,282
3,331

5,267 r
2,617 r
3,802 r

24,575
24,932

35,214
24,531

34,699
24,540

32,976
23,742

40,227
23,289

35,792
24,701

32,868
24,068

27,607
27,871

42,168
23,639

37,448
24,782

32,746
24,828

2,743
7,368
758

2,907
6,947
672

3,571
6,911
990

3,623
8,109
814

3,035
7,338
811

3,463
7,348
1,222

3,913
5,428
919

4,063
7,097
1,151

3,127
6,426
1,002

2,652
6,261
1,0%

2,987
5,883
1,247

-1,820

-4,355

-5,805

-4,422

-4,800

-5,672

-7,199

-6,392

-4,055

-4,647

-5,860

839
2,513
1,851
-3,781

1,495
844
2,811
-5,142

1,558
2,467
1,747
-3,844

1,455
3,008
1,428
-5,207

133
3,031
2,084
-2,241

-757
2,075
1,645
-2,849

-181
4,703
1,056
-4,024

166
3,729
2,453
-7,131

-394
4,474
3,616
-4,895

-50
-12
22

-1
-108
-55

38
2
117

46
29
-24

-300
-35
19

29
1
-3

0
-23
64

-295
-77
170

-303
-24
-43

-14,374
3,326
-117,589

-11,557
1,908
-70,026

-20,522
2,810
-99,094

-14,965
4,003
-112,864

-11,743
5,198
-143,753

-9,299
832
-148,110

-20,252
1,094
-141,247

-17,652
4,034
-155,743

-12,455
5,787
-167,837

FUTURES A N D FORWARD POSITIONS

14
15
16
17
18
19
20
21
22
23
24

By type of deliverable security
U.S. Treasury securities
Bills
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 securities
Debt, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed
Pass-throughs
All others
Certificates of deposit

612
609
2,138
-7,258
-123
-115
-16
-1,280
366
-71,895

1,488
2,352
3,002
-6,174
-37
-11
20"
-12,104
1,450
-66,597

Financing

Reverse repurchase agreements
25 Overnight and continuing
26 Term

208,601 r
332,250"

230,130"^
345,749 r

230,919
364,102

232,519
373,888

219,987
398,647

247,572
339,373

223,160
363,266

233,287
341,048

246,770
371,688

238,647
391,491

226,850
384,258

Repurchase
agreements
27 Overnight and continuing
28 Term

357,327 r
326,266 r

387,080 1
328,425 r

404,809
351,505

398,4%
352,277

393,011
382,749

415,205
335,085

402,444
352,857

416,133
322,617

419,689
355,986

422,128
380,850

395,822
382,400

Securities borrowed
29 Overnight and continuing
30 Term

99,894 r
46,975 r

102,138r
52,406 r

113,700
52,467

108,787
52,082

108,642
56,900

112,995
52,575

118,472
53,055

119,119
43,779

117,135
42,739

117,945
40,464

116,661
40,793

Securities loaned
31 Overnight and continuing
32 Term

3,999 r
601 r

3,724 r
351

3,898
467

3,654
560

3,312
226

4,105
221

4,066
580

4,450
1,053

3,473
277

3,810
358

3,123
871

Collateralized loans
33 Overnight and continuing

16,800

16,882

0

0

0

0

0

0

0

0

0

MEMO: Matched book
Reverse repurchase
agreements
34 Overnight and continuing
35 Term

157,104r
289,665 r

166,917r
304,402 r

162,5%
318,706

169,239
326,022

154,952
349,876

171,838
294,472

156,983
319,422

164,638
299,829

167,598
324,918

164,012
337,456

154,575
335,227

Repurchase
agreements
36 Overnight and continuing
37 Term

191,950r
243,216 r

218,405 r
254,15^

222,893
271,090

226,737
278,%5

224,321
300,353

222,536
256,312

219,324
268,533

224,383
244,311

226,875
275,087

221,903
295,198

210,643
294,732

7

1. Data for positions and financing are obtained from reports submitted to the
Federal Reserve Bank of N e w 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.
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 that settle
on the issue date of offering. Net immediate positions of mortgage-backed agency
securities include securities purchased or sold that have been delivered or are
scheduled to be delivered in thirty days or less.
4. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest-only securities (IOs),
and principal-only securities (POs).
5. Futures positions reflect standardized agreements 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 federal agency debt
securities are included when the time to delivery is more than five business days.
Forward contracts for mortgage-backed agency securities are included when the
time to delivery is more than thirty 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 different types of collateralization.
NOTE. Data for futures and forward commercial paper and bankers acceptances and
for term financing of collateralized loans are no longer available because of insufficient
activity.

A32
1.44

DomesticNonfinancialStatistics • June 1993
F E D E R A L A N D F E D E R A L L Y S P O N S O R E D CREDIT A G E N C I E S

Debt Outstanding

Millions of dollars, end of period
1992
1988

Agency

1990

1989

1993

1991
Sept.

1 Federal and federally sponsored agencies

Oct.

Nov.

Dec.

Jan.

381,498

10 Federally sponsored agencies 7
11
Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation
13
Federal National Mortgage Association
14
Farm Credit Banks 8
Student Loan Marketing Association 9
15
Financing Corporation
16
17
Farm Credit Financial Assistance Corporation
18
Resolution Funding Corporation

411,805

434,668

442,772

475,606

479,978

481,050

483,970

0

35,668
8
11,033
150

35,664
7
10,985
328

42,159
7
11,376
393

41,035
7
9,809
397

41,319
7
7,698
301

41,470
7
7,698
309

42,081
7
7,698
344

41,829
7
7,208
374

41,641
7
7,208
231

0
6,142
18,335
0

0
6,445
17,899
0

0
6,948
23,435
0

0
8,421
22,401
0

0
10,123
23,190
0

0
10,123
23,333
0

0
10,660
23,372
0

0
10,660
23,580
0

0
10,660
23,535
0

345,832
135,836
22,797
105,459
53,127
22,073
5,850
690
0

375,428
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

401,737
107,543
30,262
133,937
52,199
38,319
8,170
1,261
29,9%

434,287
110,830
36,750
155,232
52,734
38,830
8,170
1,261
29,9%

438,508
112,436
34,108
159,764
52,510
39,766
8,170
1,261
29,9%

438,%9
114,364
30,914
161,308
52,728
39,737
8,170
1,261
29,9%

442,141
114,733
29,631
166,300
51,910
39,650
8,170
1,261
29,9%

0
113,253
34,479
165,958
52,264
39,812
8,170
1,261
29,9%

142,850

2 Federal agencies
3
Defense Department
4
Export-Import Bank 2,3
5
Federal Housing Administration
Government National Mortgage Association certificates of
6
participation
7
Postal Service 6
Tennessee Valley Authority
8
9
United States Railway Association

134,873

179,083

185,576

164,422

159,899

156,579

154,994

151,059

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

9,803
8,201
4,820
10,725
0

7,692
9,903
4,820
7,175
0

7,692
9,903
4,790
7,175
0

7,692
10,440
4,790
6,975
0

7,202
10,440
4,790
6,975
0

7,202
10,440
4,790
6,825
0

58,496
19,246
26,324

53,311
19,265
23,724

52,324
18,890
70,896

48,534
18,562
84,931

42,979
18,143
73,710

42,979
18,172
69,188

42,979
18,172
65,531

42,979
18,172
64,436

42,979
18,037
60,786

MEMO

19 Federal Financing Bank debt 1
20
21
22
23
24

Lending to federal and federally sponsored
Export-Import Bank
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association

Other lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other

agencies

1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal year 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration, the Department of Health, Education, and Welfare, the Department of
Housing and Urban Development, the Small Business Administration, and the
Veterans' Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown on line 17.
9. Before late 1982, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 22.




10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January
1988 to provide assistance to the Farm Credit System, undertook its first
borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, undertook its first
borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Because FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter
are loans guaranteed by numerous agencies, with the amounts guaranteed by any
one agency generally being small. The Fanners Home Administration entry
consists exclusively of agency assets, while the Rural Electrification Administration entry consists of both agency assets and guaranteed loans.

Securities Market and Corporate Finance
1.45

N E W SECURITY I S S U E S

A33

Tax-Exempt State and Local Governments

Millions of dollars
1993

1992
Type of issue or issuer,
or use

1990

1991

1992
Aug.

1 AU issues, new and refunding 1

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

120,339

154,402

215,191

19,774

18,698

21,092

14,133

19,577

17,981"

17,793

27,471

By type of issue
2 General obligation
3 Revenue

39,610
81,295

55,100
99,302

78,611
136,580

7,005
12,769

7,461
11,237

7,733
13,359

5,203
8,930

6,024
13,553

4,840"
13,141"

6,963
10,830

8,254
19,217

By type of issuer
4 State
5 Special district or statutory authority
6 Municipality, county, or township

15,149
72,661
32,510

24,939
80,614
48,849

25,295
127,618
60,210

2,933
11,203
5,638

1,710
11,054
5,934

2,742
13,113
5,237

1,688
8,197
4,248

2,339
11,159
6,079

1,339
12,556
3,994

3,485
n.a.
4,654

2,139
n.a.
6,977

103,235

116,953

120,272

11,993

10,496

13,760

8,028

8,010

5,875

4,636

9,716

17,042
11,650
11,739
23,099
6,117
34,607

21,121
13,395
21,039
25,648
8,376
30,275

22,071
17,334
20,058
21,796
5,424
33,589

1,737
2,130
2,604
767
503
4,252

1,237
1,977
2,265
1,869
1,176
1,972

2,083
1,364
3,340
2,365
367
4,241

1,800
531
960
1,070
581
3,086

1,658
831
1,258
1,121
339
2,803

1,033"
829"
894"
777
337
2,005

1,264
131
423
618
69
2,131

1,482
2,111
538
1,556
765
3,264

7 Issues for new capital
8
9
10
11
12
13

By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes

1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.

1.46

N E W SECURITY I S S U E S

SOURCES. Securities Data Company beginning January 1993.
Dealer's Digest for earlier data.

Investment

U . S . Corporations

Millions of dollars
1993

1992
Type of issue, offering,
or issuer

1990

1991

1992
July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

1 All issues 1

340,049

465,483

n.a.

46,235

37,091

42,849

39,280"

35,525"

39,424

50,793

59,403

2 Bonds 2

299,884

390,018

404,992

39,758

31,815

37,539

32,314"

31,026"

33,375

45,559

49,343

By type of offering
3 Public, domestic
4 Private placement, domestic
5 Sold abroad

188,848
86,982
23,054

287,125
74,930
27,962

377,453
n.a.
27,539

37,833
n.a.
1,924

28,561
n.a.
3,254

36,185
n.a.
1,355

30,249
n.a.
2,066"

28,774"
n.a.
2,252"

31,835
n.a.
1,540

41,675
n.a.
3,884

47,165
n.a.
2,178

51,779
40,733
12,776
17,621
6,687
170,288

86,628
36,666
13,598
23,945
9,431
219,750

69,538
30,049
6,497
44,643
13,073
241,192

5,509
3,488
766
6,902
2,081
21,011

4,720
2,159
393
4,509
1,053
18,982

5,974
2,374
677
5,230
1,191
22,093

7,975
2,813
290
3,700
427
17,110"

3,467
2,396"
0
1,289
374
23,499"

4,232
2,176
611
2,867
516
22,973

9,393
3,074
316
4,282
3,019
25,475

8,080
2,268
248
5,624
2,890
30,234

12 Stocks 2

40,165

75,467

n.a.

6,477

5,276

5,310

6,966

4,499

6,049

5,234

10,060

By type of offering
13 Public preferred
14 Common
15 Private placement 3

n.a.
n.a.
16,736

17,408
47,860
10,109

21,332
57,099
n.a.

2,413
4,064
n.a.

1,148
4,129
n.a.

1,233
4,077
n.a.

2,901
4,065
n.a.

1,540
2,958
n.a.

1,608
4,441
n.a.

1,112
4,122
n.a.

1,898
8,161
n.a.

5,649
10,171
369
416
3,822
19,738

24,154
19,418
2,439
3,474
475
25,507

n.a.
n.a.
n.a.
n.a.
n.a.
n.a.

857
1,599
n.a.
564
n.a.
3,457

713
1,315
n.a.
921
n.a.
2,327

307
602
59
595
1,051
2,695

1,779
940
53
359
99
3,735

288
1,366
304
150
22
2,369

1,468
2,226
118
92
126
2,019

722
1,688
65
310
0
2,438

2,616
2,021
64
350
0
5,009

6
7
8
9
10
11

16
17
18
19
70
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.

A34

DomesticNonfinancialStatistics • June 1993

1.47

OPEN-END INVESTMENT COMPANIES

N e t Sales

and-Assets

Millions of dollars

1992
1991r

Item 1

1993

1992
July

Aug.

Sept.

Oct.

Dec. r

Nov.

Jan.

Feb.

1 Sales of own shares 2

463,645

647,055

54,915

50,627

50,039

52,214

52,019

70,618

71,607

60,716

2 Redemptions of own shares
3 Net sales 3

342,547
121,098

447,140
199,915

34,384
20,703

35,223
15,404

37,862
12,177

37,134
15,080

34,126
17,893

51,993
18,625

46,545
25,062

39,686
21,030

4 Assets 4

808,582

1,056,310

951,806

957,145

978,507

983,151

1,019,618

1,056,310

1,082,653

1,116,652

5 Cash 5
6 Other

60,292
748,290

73,999
982,311

72,732
879,074

77,245
879,900

76,498
902,009

75,808
907,343

80,247
939,371

73,999
982,311

76,764
1,005,889

80,321
1,036,331

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.

1. Data on sales and redemptions exclude money market mutual funds but
include limited-maturity municipal bond funds. Data on assets exclude both
money market mutual ftmds and limited-maturity municipal bond funds.
2. Includes reinvestment of dividends. Excludes reinvestment of capital gains
distributions.
3. Excludes sales and redemptions resulting from transfers of shares into or out
of money market mutual funds within the same fund family.

1.48

CORPORATE PROFITS A N D THEIR

DISTRIBUTION

B i l l i o n s o f d o l l a r s ; q u a r t e r l y d a t a at s e a s o n a l l y a d j u s t e d a n n u a l r a t e s
1991
1990

Account

1991

1992

1992
Q1

Q2

Q3

Q4

Ql

Q2

Q3

Q4 r

1 Profits with inventory valuation and
capital consumption adjustment
2 Profits before taxes
3 Profits tax liability
4 Profits after taxes
5
Dividends
6
Undistributed profits

361.7
355.4
136.7
218.7
149.3
69.4

346.3
334.7
124.0
210.7
146.5
64.2

394.5
372.3
140.5
231.8
149.3 r
82.5

349.6
337.6
121.3
216.3
150.6
65.7

347.3
332.3
122.9
209.4
146.2
63.2

341.2
336.7
127.0
209.6
145.1
64.5

347.1
332.3
125.0
207.4
143.9
63.4

384.0
366.1
136.4
229.7
143.6
86.2

388.4
376.8
144.1
232.7
146.6
86.1

374.1
354.1
131.8
222.2
151.1
71.1

428.5
389.4
148.5
241.0
155.9 r
85.0

7 Inventory valuation
8 Capital consumption adjustment

-14.2
20.5

3.1
8.4

-7.4r
29.5 r

6.7
5.3

9.9
5.1

-4.8
9.3

.7
14.1

-5.4
23.3

-15.5
27.0

-9.7
29.7

1.0
38.1

SOURCE. U.S. Department of Commerce, Survey of Current

1.50

Business.

NONFARM BUSINESS EXPENDITURES

o n N e w Plant and

Equipment

B i l l i o n s o f d o l l a r s ; q u a r t e r l y d a t a at s e a s o n a l l y a d j u s t e d a n n u a l r a t e s
1991
Industry

1991

1992

1992

1993

19931
Q3

Q4

Ql

Q2

Q3

Q4

Ql

Q2 1

1 Total nonfarm business

528.39

546.08

582.31

526.59

529.87

535.72

540.91

547.53

560.16

571.41

578.15

Manufacturing
2 Durable goods industries
3 Nondurable goods industries

77.64
105.17

73.41
100.50

77.11
106.24

74.94
102.55

76.40
102.66

74.19
99.79

74.26
97.52

71.84
100.39

73.34
104.28

80.68
103.01

77.62
103.48

Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and o t h e r

10.02

8.90

9.32

10.09

9.99

8.87

9.18

9.09

8.44

9.52

9.49

5.95
10.17
6.54

6.77
8.97
7.04

7.36
7.10
8.60

6.32
9.61
6.63

5.44
10.41
6.45

6.65
8.86
6.37

6.50
9.75
7.27

6.87
10.13
7.69

7.08
7.13
6.84

6.26
7.36
8.07

7.71
9.10
7.51

43.76
22.82
246.32

48.05
23.91
268.54

53.32
24.08
289.18

43.27
23.25
249.94

44.75
22.67
251.11

46.06
22.75
262.17

48.45
24.19
263.80

47.73
23.92
269.86

49.95
24.78
278.32

52.61
23.46
280.44

53.05
24.22
285.98

1. Figures are amounts anticipated by business.
2. "Other" consists of construction, wholesale and retail trade, finance and
insurance, personal and business services, and communication.




SOURCE. U.S. Department of Commerce, Survey of Current

Business.

Securities Markets and Corporate Finance
1.51

A35

Assets and Liabilities 1

DOMESTIC FINANCE COMPANIES

Billions of dollars, end of period; not seasonally adjusted
1992

1991
Account

1990

1992

1991

Q2

Q3

Q4

Qi

Q2

Q3

Q4

ASSETS

492.9
133.9
293.5
65.5

480.3
121.9
292.6
65.8

482.1
117.1
296.5
68.4

488.5
127.5
295.2
65.7

484.7
125.3
293.2
66.2

480.3
121.9
292.6
65.8

475.7
118.4
291.6
65.8

476.8 r
116.7
293.7 r
66.4

475.8
116.6
291.1
68.1

482.1
117.1
296.5
68.4

57.6
9.6

55.1
12.9

50.8
15.8

58.0
11.1

57.6
13.1

55.1
12.9

53.6
13.0

51.2
12.3

50.8
12.0

50.8
15.8

7 Accounts receivable, net
8 All other

425.7
113.9

412.3
149.0

415.5
150.6

419.3
122.8

414.1
136.4

412.3
149.0

409.1
145.5

413.3 r
139.4

412.9
146.5

415.5
150.6

9

539.6

561.2

566.1

542.1

550.5

561.2

554.6

552.7r

559.4

566.1

31.0
165.3

42.3
159.5

37.6
156.4

36.9
156.1

39.6
156.8

42.3
159.5

38.0
154.4

37.8
147.7

38.1
153.2

37.6
156.4

15 N o t elsewhere classified
16 All other liabilities
17 Capital, surplus, and undivided profits

n.a.
n.a.
37.5
178.2
63.9
63.7

n.a.
n.a.
34.5
191.3
69.0
64.8

n.a.
n.a.
37.8
195.3
71.2
67.8

n.a.
n.a.
34.2
184.5
67.1
63.3

n.a.
n.a.
36.5
185.0
68.8
63.8

n.a.
n.a.
34.5
191.3
69.0
64.8

n.a.
n.a.
34.5
189.8
72.0
66.0

n.a.
n.a.
34.8
191.9
73.4
67.1

n.a.
n.a.
34.9
191.4
73.7
68.1

n.a.
n.a.
37.8
195.3
71.2
67.8

18 Total liabilities and capital

539.6

561.2

566.1

542.1

550.5

561.2

554.6

552.7R

559.4

566.1

1 Accounts receivable, gross 2
?
3
4
Real estate
5 LESS; Reserves for unearned income
Reserves for losses
6

LIABILITIES AND CAPITAL
10
11 Commercial paper

Debt
12 Other short-term

13
14 O w e d to parent

1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are amounts carried on the balance sheets o f finance
companies; securitized pools are not shown since they are not on the books.

DOMESTIC FINANCE COMPANIES 1

1.52

2. Before deduction for unearned income and losses,

Consumer, Real Estate, and Business Credit

Millions of dollars, amounts outstanding, end of period
1993

1992
Type o f credit

1990

1991

1992 r
Sept.

Oct.

Dec.r

Jan.

Feb.

529,232

531,864

526,254

528,395

156,593
67,838
304,801

157,707
68,011
306,146

156,551
68,942
300,761

157,733
70,016
300,646

Nov.

Seasonally adjusted

1 Total
2 Consumer..
3 Real estate 2
4 Business . . .

523,023

161,070
65,147
296,807

519,573

154,786
65,388
299,400

531,864

157,707
68,011
306,146

527,858

155,618
67,717
304,523

527,323

154,501
68,035
304,787

N o t seasonally adjusted

5 Total
6 Consumer
7
Motor vehicles
8
Other consumer 3
9
Securitized motor v e h i c l e s 4 .
10
Securitized other consumer
11 Real estate 2
12 Business
13
Motor vehicles
14
Retail5...,
15
Wholesale 6
16
Leasing
17
Equipment
18
Retail....,
19
Wholesale 6
20
Leasing
*
21
Other business 7
22
Securitized business assets .
23
Retail
24
Wholesale
25
Leasing

526,441

522,853

535,158

524,999

526,874

528,895

535,158

525,847

525,490

161,965
75,045
58,818
19,837
8,265
65,509
298,967
92,072
26,401
33,573
32,098
137,654
31,968
11,101
94,585
63,774
5,467
667
3,281
1,519

155,677
63,413
58,488
23,166
10,610
65,764
301,412
90,319
22,507
31,216
36,596
141,399
30,962
9,671
100,766
60,887
8,807
576
5,285
2,946

158,631
57,605
59,522
29,775
11,729
68,410
308,118
87,456
19,303
27,158
38,191
151,607
32,212
8,669
110,726
57,464
11,590
1,118
5,756
4,716

156,416
59,806
56,808
28,204
11,598
68,064
300,519
85,261
20,407
n.a.
39,506
147,319
31,571
8,994
106,754
58,493
9,447
152
5,378
3,917

155,505
59,290
57,013
27,823
11,379
68,477
302,892
86,747
20,763
n.a.
39,536
147,146
31,475
8,928
106,743
58,898
10,101
634
5,593
3,874

157,005
58,286
58,128
28,964
11,626
68,016
303,875
85,621
19,708
n.a.
39,020
148,202
31,427
8,824
107,952
59,269
10,782
607
5,813
4,362

158,631
57,605
59,522
29,775
11,729
68,410
308,118
87,456
19,303
n.a.
38,191
151,607
32,212
8,669
110,726
57,464
11,590
1,118
5,756
4,716

156,430
57,165
58,844
28,894
11,527
68,889
300,527
86,491
19,124
n.a.
38,640
146,820
32,458
8,582
105,780
55,760
11,457
1,036
5,582
4,839

155,929
54,036
58,651
32,860
10,383
69,216
300,345
86,412
17,881
n.a.
38,472
145,886
32,430
8,318
105,138
55,962
12,085
973
6,408
4,704

1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are before deductions for unearned income and losses.
Data in this table also appear in the Board's G.20 (422) monthly statistical release.
For ordering address, see inside front cover.
2. Includes all loans secured by liens on any type of real estate, for example,
first and junior mortgages and home equity loans.
3. Includes personal cash loans, mobile home loans, and loans to purchase other
types o f consumer goods such as appliances, apparel, general merchandise, and
recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these
FRASER no longer carried on the balance sheets of the loan originator.
balances are

Digitized for


5. Passenger car fleets and commercial land vehicles for which licenses are
required.
6. Credit arising from transactions between manufacturers and dealers, that is,
floor plan financing.
7. Includes loans on commercial accounts receivable, factored commercial
accounts, and receivable dealer capital; small loans used primarily for business or
farm purposes; and wholesale and lease paper for mobile homes, campers, and
travel trailers.

A36
1.53

DomesticNonfinancialStatistics • June 1993
MORTGAGE M A R K E T S Conventional Mortgages on N e w Homes
Millions of dollars except as noted
1992
Item

1990

1991

1993

1992
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Terms and yields in primary and secondary markets
PRIMARY M A R K E T S

1
2
3
4
5
6

Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)
Contract rate (percent per year)

Yield (percent per
7 OTS series 3
8 H U D series 4

153.2
112.4
74.8
27.3
1.93
9.68

155.0
114.0
75.0
26.8
1.71
9.02

158.1
118.1
76.6
25.6
1.60
7.98

146.0
109.3
77.0
25.7
1.52
7.68

159.2
119.7
77.3
25.2
1.42
7.65

165.4
117.3
75.3
24.9
1.54
7.81

154.0
117.7
77.7
26.1
1.31
7.65

158.6
119.5
76.8
25.7
1.49
7.57

159.7
114.5
75.4
23.8
1.43
7.52

156.2
121.5
79.3
26.9
1.50
7.22

10.01
10.08

9.30
9.20

8.25
8.43

7.93
7.95

7.90
8.29

8.07
8.38

7.88
8.19

7.82
7.93

7.77
7.63

7.46
7.59

10.17
9.51

9.25
8.59

8.46
7.77

8.06
7.31

8.29
7.53

8.54
7.90

8.12
7.57

8.04
7.39

7.55
7.02

7.57
6.79

year)

SECONDARY M A R K E T S

field (percent per year)
9 F H A mortgages ( H U D series) 5
10 G N M A securities 6

Activity in secondary markets

F E D E R A L N A T I O N A L MORTGAGE ASSOCIATION

Mortgage holdings (end of
11 Total
12
FHA/VA-insured
13
Conventional
Mortgage transactions
14 Purchases
Mortgage
15 Issued
16 To sell 9

commitments

period)
113,329
21,028
92,302

144,904
22,275
122,629

149,133
22,399
126,734

153,306
22.372
130,934

158,119
22,593
135,526

159,204
22,640
136,564

159,766
22,573
137,193

161,147
22,700
138,447

37,202

75,905

6,779

8,380

7,980

8,832

4,993

4,118

4,730

23,689
5,270

40,010
7,608

74,970
10,493

8,880
148

8,195
0

6,084
237

6,185
1,811

4,189
1,159

4,177
221

6,644
0

20,419
547
19,871

24,131
484
23,283

29,959
408
29,552

31,629
371
31,259

32,995
365
32,630

32,703
359
32,343

33,665
352
33,313

32,370
347
32,023

32,454
343
32,112

35,421
337
35,084

75,517
73,817

(during

142,833
22,168
120,664

23,959

(during

122,837
21,702
101,135

97.727
92,478

191,125
179,208

16,391
14,267

20,199
18,771

19,607
19,154

20,792
19,602

15,512
16,536

12,063
12,105

12,587
10,286

102,401

114,031

261,637

17,132

27,380

29,717

32,453

17,591

23,366

21,103

period)
period)1

F E D E R A L H O M E L O A N MORTGAGE CORPORATION

Mortgage holdings (end of
17 Total
18
FHA/VA-insured
19
Conventional
Mortgage transactions
20 Purchases
21
Mortgage commitments
22 Contracted

periodf

(during

(during

period)

period)10

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 of 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.
1. 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 loans 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 F N M A exclude swap activity.

Real Estate
1.54

A37

MORTGAGE D E B T O U T S T A N D I N G 1
Millions of dollars, end of period
1992

1991
Type of holder and property

1989

1990

1991
Q4

Ql

Q2

Q3

3,570,906

3,795,210

3,915,871

3,915,871

3,938,198

3,976,483

4,012,983

2,424,258
307,672
754,952
84,025

2,635,428
311,113
764,953
83,716

2,764,447
310,427
758,063
82,934

2,764,447
310,427
758,063
82,934

2,790,734
310,499
754,290
82,674

2,838,732
306,038
748,4%
83,218

2,890,842
305,379
733,083
83,679

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

1,914,315
844,826
455,931
37,015
334,648
17,231
801,628
600,154
91,806
109,168
500
267,861
13,005
28,979
215,121
10,756

1,846,910
876,284
486,572
37,424
333,852
18,436
705,367
538,358
79,881
86,741
388
265,258
11,547
29,562
214,105
10,044

1,846,910
876,284
486,572
37,424
333,852
18,436
705,367
538,358
79,881
86,741
388
265,258
11,547
29,562
214,105
10,044

1,825,983
880,377
492,910
37,710
330,837
18,919
682,338
524,536
77,166
80,278
358
263,269
11,214
29,693
212,865
9,497

1,803,488
884,598
496,518
38,314
330,229
19,538
659,624
508,545
74,788
75,947
345
259,266
10,676
29,425
210,139
9,026

1,793,505
891.484
506,658
38.985
325,934
19,906
648,178
501,604
73,723
72,517
334
253,843
10,451
28.804
205,709
8,878

22 Federal and related agencies
23
Government National Mortgage Association
24
One- to four-family
25
Multifamily
26
Farmers Home Administration
27
One- to four-family
28
Multifamily
29
Commercial
30
Farm
31
Federal Housing and Veterans' Administrations
32
One- to four-family
33
Multifamily
34
Resolution Trust Corporation
35
One- to four-family
36
Multifamily
37
Commercial
38
Farm
39
Federal National Mortgage Association
40
One- to four-family
41
Multifamily
42
Federal Land Banks
43
One- to four-family
44
Farm
45
Federal Home Loan Mortgage Corporation
46
One- to four-family
47
Multifamily

197,778
23
23
0
41,176
18,422
9,054
4,443
9,257
6,087
2,875
3,212
0
0
0
0
0
99,001
90,575
8,426
29,640
1,210
28,430
21,851
18,248
3,603

239,003
20
20
0
41,439
18,527
9,640
4,690
8,582
8,801
3,593
5,208
32,600
15,800
8,064
8,736
0
104,870
94,323
10,547
29,416
1,838
27,577
21,857
19,185
2,672

266,156
19
19
0
41,713
18,496
10,141
4,905
8,171
10,733
4,036
6,697
45,822
14,535
15,018
16,269
0
112,283
100,387
11,896
28,777
1,693
27,084
26,809
24,125
2,684

266,156
19
19
0
41,713
18,496
10,141
4,905
8,171
10,733
4,036
6,697
45,822
14,535
15,018
16,269
0
112,283
100,387
11,896
28,777
1,693
27,084
26,809
24,125
2,684

278,3%
19
19
0
41,791
18,488
10,270
4,961
8,072
11,332
4,254
7,078
49,345
15,458
16,266
17,621
0
118,238
105,869
12,369
28,776
1,693
27,083
28,895
26,182
2,713

278,131
23
23

277.485
27
27

41,628
17,718
10,356
4,998
8.557
11,480
4,403
7,077
44,624
15,032
13,316
16,276

41,671
17,292
10,468
5,072
8,839
11,768
4,531
7,236
37,099
12,614
11,130
13,356

122,979
110,223
12,756
28,775
1,693
27,082
28,621
26,001
2,620

126,476
113,407
13,069
28,815
1,695
27,119
31,629
29,039
2,591

48 Mortgage pools or trusts 5
49
Government National Mortgage Association
50
One- to four-family
51
Multifamily
52
Federal Home Loan Mortgage Corporation
53
One- to four-family
54
Multifamily
55
Federal National Mortgage Association
56
One- to four-family
57
Multifamily
58
Farmers Home Administration 4
59
One- to four-family
60
Multifamily
61
Commercial
62
Farm
63
Private mortgage conduits
64
One- to four-family
65
Multifamily
66
Commercial
67
Farm

951,740
368,367
358,142
10,225
272,870
266,060
6,810
228,232
219,577
8,655
80
21
0
26
33
82,191
77,217
462
4,512
0

1,116,452
403,613
391,505
12,108
316,359
308,369
7,990
299,833
291,194
8,639
66
17
0
24
26
96,581
90,684
731
5,166
0

1,270,862
425,295
415,767
9,528
359,163
351,906
7,257
371,984
362,667
9,317
47
11
0
19
17
114,373
104,1%
3,698
6,479
0

1,270,862
425,295
415,767
9,528
359,163
351,906
7,257
371,984
362,667
9,317
47
11
0
19
17
114,373
104,1%
3,698
6,479
0

1,288,823
421,977
412,574
9,404
367,878
360,887
6,991
389,853
380,617
9,236
43
10
0
18
16
109,071
95,600
4,686
8,784
0

1,341,338
422,922
413,828
9,094
382,797
376,177
6,620
413,226
403,940
9,286
43
9

1,385,460
422,255
413,063
9,192
391,762
385,400
6,362
429,535
420,835
9,100
41
9

18
15
122,350
105,700
5,7%
10,855

18
14
141,468
123,000
5,7%
12,673

489,851
300,805
85,427
84,224
19,395

525,440
331,282
87,713
87,400
19,045

531,943
330,131
87,324
95,693
18,795

531,943
330,131
87,324
95,693
18,795

544,9%
340,424
86,917
98,925
18,730

553,526
348,245
86,591
100,035
18,656

556,532
351,217
88,922
97.805
18,588

1 AU 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 institutions
13
One- to four-family
14
Multifamily
15
Commercial
16
Farm
17
Life insurance companies
18
One- to four-family
19
Multifamily
20
Commercial
21
Farm

68 Individuals and others
69
One- to four-family
70
Multifamily
71
Commercial
72
Farm

6

1. Based on data from various institutional and governmental sources; 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.
4. FmHA-guaranteed securities 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 Farmers Home Administration.




0

0

0

0

0

0

0

0

5. Outstanding principal balances of mortgage-backed securities insured or
guaranteed by the agency indicated.
6. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and finance companies.

A38

DomesticNonfinancialStatistics • June 1993
C O N S U M E R I N S T A L L M E N T CREDIT 1

1.55

Millions of dollars, amounts outstanding, end of period
1992
Holder and type of credit

1990

1993

1992r

1991

Sept.

Nov.

Oct.

Dec. r

Jan.

Feb.

Seasonally adjusted
1 Total

735,338

727,799

726,653

722,104

722,372

723,448

726,653

727,647

728,815

2 Automobile
3 Revolving..
4 Other

284,993
222,950
227,395

263,003
242,785
222,012

260,097
251,258
215,298

257,384
250,017
214,703

256,846
250,454
215,071

257,740
250,620
215,088

260,097
251,258
215,298

259,720
252,785
215,143

260,763
255,177
212,876

Not seasonally adjusted
5 Total

748,524

742,058

741,381

724,198

722,760

725,178

741,381

732,490

726,265

347,087
133,863
93,057
44,822
46,969
4,822
77,904

339,565
121,901
92,254
44,030
40,315
4,362
99,631

329,603
117,086
92,648
44,952
33,861
4,365
118,866

324,046
116,650
92,698
38,778
35,069
4,499
112,458

324,697
116,304
92,228
39,299
34,148
4,452
111,632

324,529
116,414
91,838
39,539
34,171
4,365
114,322

329,603
117,086
92,648
44,952
33,861
4,365
118,866

326,807
116,059
92,381
42,585
33,902
4,366
116,390

324,358
112,687
91,777
40,671
33,754
4,148
118,870

By major type of credit3
13 Automobile
14
Commercial banks
15
Finance companies
Pools of securitized assets
16

285,050
124,913
75,045
24,428

263,108
111,912
63,413
28,057

260,227
108,581
57,604
33,593

260,395
108,355
59,806
31,971

259,055
108,068
59,290
31,757

258,539
107,675
58,286
32,672

260,227
108,581
57,604
33,593

258,473
108,432
57,165
32,388

258,833
108,580
54,036
35,930

17 Revolving
18
Commercial banks
Retailers
19
20
Gasoline companies
Pools of securitized assets 2
21

235,056
133,385
40,003
4,822
44,335

255,895
137,968
39,352
4,362
60,139

264,801
132,921
40,064
4,365
72,695

248,692
127,234
34,148
4,499
68,252

248,526
127,257
34,654
4,452
67,699

251,422
128,164
34,857
4,365
69,415

264,801
132,921
40,064
4,365
72,695

257,992
129,056
37,719
4,366
71,927

254,258
127,252
35,815
4,148
72,024

22 Other
Commercial banks
23
24
Finance companies
Retailers
25
Pools of securitized assets 2
26

228,418
88,789
58,818
4,819
9,141

223,055
89,685
58,488
4,678
11,435

216,353
88,101
59,482
4,888
12,578

215,111
88,457
56,844
4,630
12,235

215,179
89,372
57,014
4,645
12,176

215,217
88,690
58,128
4,682
12,235

216,353
88,101
59,482
4,888
12,578

216,025
89,319
58,894
4,866
12,075

213,174
88,526
58,651
4,856
10,916

6
7
8
9
10
11
12

By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
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.

1.56

2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.

TERMS OF C O N S U M E R I N S T A L L M E N T CREDIT 1
Percent per year except as noted
1992
Item

1990

1991

1993

1992
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

INTEREST R A T E S

1
2
3
4

Commercial
banks2
48-month new car
24-month personal
120-month mobile home
Credit card

Auto finance
5 N e w car
6 Used car

11.78
15.46
14.02
18.17

11.14
15.18
13.70
18.23

9.29
14.04
12.67
17.78

9.15
13.94
12.57
17.66

n.a.
n.a.
n.a.
n.a.

n.a.
n.a.
n.a.
n.a.

8.60
13.55
12.36
17.38

n.a.
n.a.
n.a.
n.a.

n.a.
n.a.
n.a.
n.a.

8.57
13.57
12.38
17.26

12.54
15.99

12.41
15.60

9.93
13.80r

8.88
13.49

8.65
13.44

9.51
13.37

9.65
13.37

9.65
13.66 r

10.08
13.72

10.32
13.90

54.6
46.0

55.1
47.2

54.0
47.9"

53.6
47.9

53.3
47.7

54.1
47.9

54.1
47.8

53.6
47.7 r

53.9
49.2

54.3
49.0

87
95

88
96

89
97

90
97

90
97

89
97

89
97

90
97

90
97

91
98

12,071
8,289

12,494
8,884

13,584r
9,119 r

13,745
9,238

13,889
8,402

13,885
9,373

14,043
9,475

14,315 r
9,464 r

13,975
9,472

13,849
9,457

companies

OTHER TERMS3

Maturity
(months)
7 N e w car
8 Used car
Loan-to-value
9 N e w car
10 Used car

ratio

Amount financed
11 N e w car
12 Used car

(dollars)

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 for only the second month of each quarter,
3. At auto finance companies.

Flow of Funds
1.57

A39

F U N D S R A I S E D IN U . S . CREDIT MARKETS 1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1992

1991

Transaction category or sector
Q2

Q4

Q3

QI

Q2"

Q3"

Q4

Nonfinancial sectors

1

775.8

740.8

665.0

442.7 r

587.4

534.4"

155.1
137.7
17.4

146.4
144.7
1.6

246.9
238.7
8.2

278.2
292.0
-13.8

304.0
303.8
.2

276.7
282.9
-6.2

620.7

594.4

418.2

164.4R

283.5

257.7"

113.0"

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

474.1
53.7
103.1
317.3
241.8
16.7
60.8
-2.1
146.6
50.1
41.0
11.9
43.6

441.8
65.0
73.8
303.0
245.3
16.4
42.7
-1.5
152.6
41.7
40.2
21.4
49.3

342.3
51.2
47.1
244.0
219.4
3.7
21.0
-.1
75.8
17.5
4.4
9.7
44.2

244.7"
45.8
78.8
r
120. l
129.0"
-.9"
-7.3R
-.8
-80.2
-12.5
-33.4
-18.4
-15.8

280.4
53.3
66.3
160.8
198.5
-8.3
-29.9
.5
3.0
2.4
-16.8
9.8
7.5

321.0"
48.5
96.5
175.9"
147.3"
12.7"
16.6"
-.6"
-63.3
-7.8
-34.5
-15.9
-5.2

By borrowing sector
State and local government
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate

48.9
318.6
253.1
-7.5
61.8
198.8

63.2
305.6
225.6
1.6
50.4
173.6

48.3
254.2
115.6
2.5
26.7
86.4

38.5
144.9"
-18.9"
.9
-23.6
3.7 R

48.1
215.1
20.2
.9
-34.2
53.5

38.6
178.0"
41.1"
2.2"
9.8
29.1"

6.4
6.9
-1.8
8.7
-7.5

10.2
4.9
-.1
13.1
-7.6

23.9
21.4
-2.9
12.3
-6.9

14.1
14.9
3.1
6.4
-10.2

782.2

750.9

688.9

Total net borrowing by domestic nonfinancial sectors . .

By sector and instrument
7 U.S. government
Treasury securities
4
Agency issues and mortgages
5

6
7
8
9
10
11
1?
N
14
IS
16
17
18

19
70
71

??

23
24

Private

25
76
27
28
29

Foreign net borrowing in United States
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans

30

Total domestic plus foreign

456.8"

24.1
18.5
1.6
5.2
-1.2

611.6

371.1"

687.5"

583.0

476.0

603.2

320.4
316.6
3.8

368.9
380.1
-11.2

351.9
351.5
.4

193.4
184.4
9.0

301.7
299.1
2.7

50.7"

318.6"

231.1

282.6

301.5

177.8"
53.5
81.6"
42.6"
118.6"
-31.0"
-42.6"
-2.4"
-64.8
-24.0
-18.2
-36.3
13.7

175.4"
45.5
60.2"
69.7"
93.0"
8.0"
-31.4"
.0
-124.7
-8.0
-66.1
-7.0
-43.6

333.0"
52.0
76.3
204.8"
221.5"
.0"
-15.7"
-1.0"
-14.4
3.1
-26.9
12.6
-3.2

267.1
73.0
77.5
116.6
155.5
-17.9
-23.2
2.2
-36.0
-12.4
-21.5
-3.4
1.3

253.7
52.3
61.3
140.1
202.8
-2.7
-61.8
1.8
28.8
.4
-3.2
1.7
30.0

267.9
35.9
50.3
181.7
214.2
-12.7
-18.8
-1.0
33.6
18.8
-15.4
28.4
1.9

37.6
132.3"
-56.9"
-.2"
-65.9
9.2"

41.9
104.2"
-95.4"
-2.2
-51.5
-41.7"

46.1
229.0"
43.6"
-1.6
-20.7
65.9"

63.4
177.2
-9.4
6.6
-50.6
34.7

50.0
220.7
11.9
1.0
-40.3
51.1

32.9
233.7
34.9
-2.3
-25.2
62.4

-63.2
10.6
-3.5
-51.9
-18.3

15.6
15.5
1.4
16.0
-17.2

41.0
22.3
6.5
14.9
-2.7

9.9
4.9
1.5
-7.8
11.4

55.2
21.9
14.1
27.7
-8.5

30.6
22.3
3.9
12.8
-8.4

.8
25.1
-13.2
-11.9
.7

471.2"

417.0"

412.1"

697.4"

638.2

506.6

604.0

401.4"
288.4
317.2
-28.8

Financial sectors
Total net borrowing by financial sectors

211.4

220.1

187.1

131.5"

223.3

106.0"

143.8"

165.6"

159.5"

241.6

265.2

227.0

34
35

By instrument
U.S. government-related
Sponsored-credit-agency securities
Mortgage pool securities
Loans from U.S. government

119.8
44.9
74.9
.0

151.0
25.2
125.8
.0

167.4
17.1
150.3
-.1

150.0"
9.2
140.9"
.0

167.1
40.2
126.9
.0

129.4"
-29.7
159.0"
.0

156.0"
20.6
135.5"
.0

158.5"
32.6
125.9"
-.1

137.4"
11.5
125.9"
.0

222.8
48.3
174.4
.0

165.6
67.7
97.9
.0

142.7
33.5
109.2
.0

36
37
38
39
40
41

Private
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks

91.7
16.2
.3
.6
54.8
19.7

69.1
46.8
.0
1.9
31.3
-11.0

19.7
34.4
.3
1.2
8.6
-24.7

-18.6"
47.7"
.6
3.2
-32.0
-38.0

56.2
50.0
.3
7.2
-2.1
.8

-23.4
72.4
.9
-2.9
-46.0
-47.7

-12.3"
29.5
.4"
10.2
-16.7
-35.7

7.1"
47.5"
.8"
4.5
-12.7
-33.0

22.1"
14.9"
.9
8.2
7.6
-9.5

18.9
25.5
.1
3.9
-16.3
5.7

99.6
59.8
.3
5.4
12.8
21.3

84.3
99.9
.1
11.1
-12.6
-14.2

42
43
44
45
46
47
48
49
50
51

By borrowing sector
Sponsored credit agencies
Mortgage pools
Private
Commercial banks
Bank affiliates
Savings and loan associations
Mutual savings banks
Finance companies
Real estate investment trusts (REITs)
Securitized credit obligation (SCO) issuers

44.9
74.9
91.7
-3.0
5.2
19.9
1.9
31.5
3.6
32.5

25.2
125.8
69.1
-1.4
6.2
-14.1
-1.4
59.7
-1.9
22.0

17.0
150.3
19.7
-1.1
-27.7
-29.9
-.5
35.6
-1.9
45.2

9.1
140.9"
-18.6"
-13.3
-2.5
-39.5
-3.5
4.5"
.0
35.6

40.2
126.9
56.2
4.5
1.1
-4.6
1.7
14.3
1.8
37.4

-29.7
159.0"
-23.4
-11.7
-3.5
-48.7
-1.7
3.4
.1
38.7

20.6
135.5"
-12.3"
-9.2
-6.8
-41.1
-5.5
12.2
-.3"
38.5

32.5
125.9"
7.1 R
-14.1
9.6
-25.1
-8.7
12.9"
.1"
32.3

11.5
125.9"
22.1"
7.2
2.7
-20.3
4.3
1.0"
4.6
22.5

48.3
174.4
18.9
.8
-8.2
2.7
.3
-20.9
.9
43.2

67.7
97.9
99.6
1.6
10.5
10.0
8.3
28.9
1.3
39.1

33.5
109.2
84.3
8.2
-.4
-10.6
-6.2
48.0
.5
44.8

31

37

33




A40

DomesticNonfinancialStatistics • June 1993

1.57—Continued
1991
Transaction category or sector

1988

1989

1990

1991

1992

1992
Q2

Q3

Q4

Ql

Q2"

Q3 r

Q4

All sectors
52 Total net borrowing, all sectors

993.6

971.0

876.0

588.3 r

834.9

577.2 r

560.8 r

577.7 r

856.9*

879.8

771.8

831.0

53
54
55
56
57
58
59
60

274.9
53.7
126.3
317.5
50.1
39.9
75.4
55.8

297.3
65.0
125.5
303.0
41.7
41.9
65.9
30.6

414.4
51.2
102.9
244.3
17.5
2.8
30.7
12.4

428.3 r
45.8
141.3r
120.7r
-12.5
-27.1
-44.0
-64.2

471.1
53.3
134.9
161.1
2.4
-8.0
12.9
7.1

406. l r
48.5
179.5
176.9"
-7.8
-40.9
-113.8
-71.2

444.4 r
53.5
126.7 r
43.0"
-24.0
-6.7
-37.0
-39.1

479.0"
45.5
130.0"
70.5"
-8.0
-55.1
-4.9
-79.3

506.3"
52.0
96.0"
205.7"
3.1
-17.2
12.4
-1.3

574.7
73.0
124.9
116.7
-12.4
-3.5
8.1
-1.6

359.0
52.3
143.4
140.3
.4
6.1
27.3
43.0

444.4
35.9
175.3
181.8
18.8
-17.5
3.9
-11.6

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
61 Total net share issues

-118.4

-65.7

22.1

198.8

272.1

182.3

232.5 r

268.2 r

230.3 r

291.7

288.6

277.7

62 Mutual funds
63 All other
Nonfinancial corporations
64
Financial corporations
65
66
Foreign shares purchased in United States

6.1
-124.5
-129.5
4.1
.9

38.5
-104.2
-124.2
2.7
17.2

67.9
-45.8
-63.0
9.8
7.4

150.5
48.3
18.3
-.1
30.2

206.4
65.7
26.8
7.4
31.5

125.6
56.7
12.0
8.1
36.6

182.5
50.0"
19.0
-3.2"
34.1

195.9
72.3"
48.0
1.4"
22.9

148.4"
81.9
46.0
6.0
29.9

236.3
55.4
36.0
8.4
11.0

233.3
55.3
11.0
8.1
36.2

207.5
70.2
14.0
7.3
48.9

1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical
release, tables F.2 through F.5. For ordering address, see inside front cover.




Flow of Funds
1.58

A41

S U M M A R Y OF F I N A N C I A L TRANSACTIONS 1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
1992

1991

Transaction category or sector

1988

1989

1990

1991

1992
Q2

Q3

Q4

QLR

Q2 R

Q3 R

Q4

N E T LENDING IN CREDIT MARKETS 2
993.6

1 Total net lending in credit markets

? Private domestic nonfinancial sectors
Households
4
Nonfarm noncorporate business
Nonfinancial corporate business
5
6
State and local governments
7 U . S . government
8
9
10
11
1?
N
14
IS
16
17
18
19
70
71
77

?3
74
7*>
76
?7
78

79
30
31
3?
33

34

971.0

876.0

588.3R

834.9

577.2R

560.8R

577.7R

856.9

879.8

771.8

831.0

203.8
172.3
-1.4
6.6
26.2
33.7
58.4
580.2
16.4
150.3
8.1
125.4
95.2
28.4
-2.8
4.5
279.9
-151.9
-143.9

10.5 R
-24.8R
-1.9
20.9
16.3
10.0
42.6 R
5 2 5 . LR
14.2
140.9 R
31.1
84.0
38.9
48.5
-1.5
-1.9
255.0 R
-144.9
-140.9

60.6
65.8
-2.1
8.4
-11.5
-12.4
97.6
689.1
62.7
126.9
27.9
90.7
69.2
14.5
6.7
.3
380.9
-63.8
-77.0

187.7 R
171.3 R
-2.0
29.0
-10.6
24.8
51.4
313.3R
-25.2R
159.0 R
-4.0
34.7
6.4
33.7
-2.6
-2.8
148.8 R
-164.8
-144.0

-143.2R
-185.8R
-1.6
32.2
12.1
-2.1
37.3
668.7R
35.8 R
135.5 R
48.1
82.4
26.5
56.7
2.4
-3.3
367.0R
-176.8
-156.3

-59.7R
-105^
-2.1
30.1
18.2
-17.9
71.0
584.3R
18.6 R
125.9 R
22.3
104.3
45.6
61.3
-1.1
-1.5

206.5
227.2
-1.9
-2.7
-16.1
13.9
88.4
548.0
93.0
125.9
33.2
98.9
91.9
.6
6.4
.0
197.0
-113.3
-137.9

120.6
111.3
-2.5
8.4
3.4
-24.9
138.4
645.6
40.0
174.4
9.8
58.4
.5
58.6
-.6
362.9
-81.6
-92.4

-162.8
-160.3
-1.9
15.4
-15.9
-26.8
64.2
897.2
76.4
97.9
10.8
157.4
132.0
6.5
18.5
.4
554.7
-41.9
-38.5

78.0
84.9
-1.9
12.5
-17.6
-12.0
99.6
665.5
41.6
109.2
57.8
48.1
52.4
-7.6
2.5
.8
408.8
-18.5
-39.1

-31.1
10.2
216.3 r
132.8
37.0
-2.5r
49.0
97.4
-14.5
75.3
-68.9
-.1
66.8
38.7

-30.8
10.3
257. l r
73.8
36.8
113.l r
33.4
286.7 r
-5.2
117.1
1.1
135.8
38.5

11.5
22.2
156.5 r
13.2
32.1
94.2 r
17.0
206.3 r
-54.1r
124.8
53.8 r
-.9
50.5
32.3

7.6
17.0
114.2
80.6
33.1
-28.7
29.2
196.1
40.8
64.0
61.9
-.7
7.5
22.5

183.6
81.9
22.2
49.5
30.0
260.9
-23.0
169.1
-20.9
2.6
89.8
43.2

-13.0
9.6
227.8
96.5
2.5
90.5
38.2
368.9
14.2
150.7
-16.3
-2.8
184.0
39.1

1.5
19.0
213.9
120.4
11.2
39.7
42.6
213.4
51.2
110.4
-14.7
7.0
14.7
44.8

560.8R

577.7R

856.9

879.8

771.8

831.0

-15.5
-5.0
.4
.5
19.4
19.2 r
r
342.2
241.5 r
99.9 r
-32.5r
27.3
47.8
104.5
114.4
-42.4
13.0
-78.1 -117.4
4.0
26.8
36.3
16.0
3.0
-5.0
182.5
195.9
50.0"
72.3 r
82.4
120.7
r
47.6
-7.3R
-3.2R
13.l r
r
45.6
5.2 R
38.7 r
205. l r

3.5
.1
30.5
129.0
56.1
74.7
88.6
-29.9
-78.8
106.2
15.5
-26.9
148.4
81.9
-70.0
75.2
-2.3
-19.0
194.7

-6.5
.3
28.7
178.6
20.8
-55.2
92.8
-89.3
-104.9
-38.3
136.9
-52.5
236.3
55.4
-4.3
36.0
10.7
11.6
275.8

-8.5
.2
32.5
305.3
119.4
223.9
202.7
-79.0
-54.8
-13.0
128.7
39.3
233.3
55.3
76.4
51.8
7.1
-16.2
214.8

-2.4
-7.7
36.4
2%.2
-10.7
-40.3
104.1
-52.9
-77.8
-21.7
6.1
2.0
207.5
70.2
42.5
41.8
3.4
-18.9
121.9

16.3
186.2
103.8
29.2
18.1
35.1
96.9
49.2
11.9
10.7
.9
-8.2
32.5

7.7
207.7
93.1
29.7
36.2
48.7
278.9
69.3
23.8
67.1
.5
96.3
22.0

-16.5
8.5
188.5
94.4
26.5
16.6
51.0
243.3
41.6
41.4
80.9
-.7
34.9
45.2

-15.5
11.5
218.7R
83.2
34.7
37.0
181.3R
-23.lr
90.3
30.1
-.7
49.0
35.6

-2.8
16.0
184.9
94.9
17.3
37.8
35.0
259.8
20.8
123.6
2.5
1.5
74.0
37.4

971.0

876.0

588.3R

834.9

577.2R

4.0
.5
25.3
193.6
2.9
259.9
43.2
120.8
53.6
21.9
23.5
-3.1
6.1
-124.5
3.0
89.2
5.3
-31.2
222.3

24.8
4.1
28.8
221.4
-16.5
290.0

-5.9

96.7
17.6
90.1
78.3
1.1
38.5
-104.2
15.6
60.0
2.0
-32.5
269.9

2.0
2.5
25.7
186.8
34.2
96.8
44.2
59.9
-66.7
70.3
-23.5
12.6
67.9
-45.8
3.5
44.1

-4.8
.4
31.4
194.7 r
-79.6r
-75.4
7.9
-1.1
-63.0
-58.7
43.1
-3.6
125.6
56.7
20.1
41.2 r
-11.4r
-33.6r
89.0 r

1,650.2

Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement f u n d s .
Finance n.e.c
Finance companies
Mutual funds
Money market funds
Real estate investment trusts (REITs)
Brokers and dealers
Securitized credit obligation (SCOs) issuers .

209.6
179.5
-.8
12.9
17.9
-3.1
74.1
690.4
-.5
125.8
-7.3
176.8
145.7
26.7
2.8
1.6
395.7
-91.0
-93.9
-4.8

993.6

Sponsored credit agencies
Mortgage pools
Monetary authority
Commercial banking
U . S . commercial banks
Foreign banking offices
Bank affiliates
Banks in U . S . possession
Private nonbank finance
Thrift institutions
Savings and loan associations
Mutual savings banks
Credit unions

226.2
198.9
3.1
5.7
18.6
-10.6
96.3
681.8
37.1
74.9
10.5
157.1
127.1
29.4
-.1
.7
402.2
119.0
87.4
15.3

1.6

63^

-.6R

313. l r
-49.7
-83.3

-.1

-7.4
18.3

RELATION OF LIABILITIES
TO FINANCIAL ASSETS

35 Net flows through credit markets
36
37
38
39
40
41

4?
43
44
45
46
47
48
49
50
51
5?
53
54

Other financial sources
Official foreign exchange
Treasury currency and special drawing rights
Life insurance reserves
Pension fund reserves
Interbank claims
Deposits at financial institutions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Corporate equities
Security credit
Trade debt
Taxes payable
Noncorporate proprietors' equity
Miscellaneous

55 Total financial sources
Floats not included in assets ( - )
56 U . S . government checking deposits
57 Other checkable deposits
58 Trade credit
59
60
61
6?
63

Liabilities not identified
Treasury currency

as assets

Security repurchase agreements
T a x e s payable
Miscellaneous

64 Totals identified to sectors as assets

-39.3
120.5

140. l r

-3.5
-1.8
32.0
227.3
46.4
50.8
122.1
-62.8
-79.1
8.3
71.8
-9.5
206.4
65.7
11.1
51.2
4.7
-10.6
201.8

1,772.7

1,374.3

L,323.0 R

1,716.4

931.6R

[.IM.?

L,438.0 R

1,559.8

1,668.1

2,066.9

1,571.0

-.9

8.4
-3.2
.6

3.3
2.5
21.5

-13.1
2.0
18.4 r

.1
1.6
-4.5

15.6
3.0
40.7 r

23.9
-2.1
27.2 r

-73.1
-6.1
-3.7r

4.4
16.7
6.7

-11.7
2.5
-29.1

-5.3
-13.9
24.3

13.0
1.1
-19.8

-.1
-3.0
-29.8
6.3
4.4

-.2
-4.4
23.9
2.3
-95.6

.2
1.6
-34.8
6.5
-13.8

-30.6 r

-.2
-6.3
41.5
9.8
-19.2

-.3
20.8
76.2
2.0
6.4 r

-.2
28.4
36.9
23.4
-191.8r

44.0
11.4 r
182.3 r

-.4
13.4
-41.1
-11.3
-71.0

-.1
-15.1
104.2
25.7
-76.1

-.3
-2.6
76.4
23.0
3.6

-.1
-20.8
26.6
1.8
66.8

1,670.7

1,841.0

1,387.5

L,304.7 R

1,693.6

767.L R

L,548.9 R

L,283.1 R

1,642.4

1,667.8

1,961.6

1,502.5

.8

6.1

-.5

r

24.5
267.7 r
-3.7r
61.1
75.8
16.7
-60.9
41.2 r
-16.4
4.6
150.5
48.3
51.4
10.4 r
-9.(Y
-.8R

(-)

1. Data in this table also appear in the Board's Z . l (780) quarterly statistical
release, tables F.6 and F.7. For ordering address, see inside front cover.




.0

-.6
26.2
10.4
5.6 R

-.1
.2

2. Excludes corporate equities and mutual fund shares,

A42
1.59

DomesticNonfinancialStatistics • June 1993
S U M M A R Y OF CREDIT MARKET D E B T O U T S T A N D I N G 1
Billions of dollars, end of period
1991
Q2

1992
Q4

Q3

Ql

Q2

Q3"

Q4

11,615.3

11,788.3

Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors

10,087.1

10,760.8

11,200.9*

11,788.3

By lending sector and instrument
2 U.S. government
Treasury securities
3
4
Agency issues and mortgages

2,251.2
2,227.0
24.2

2,498.1
2,465.8
32.4

2,776.4
2,757.8
18.6

3,080.3
3,061.6
18.8

2,591.9
2,567.1
24.8

2,687.2
2,669.6
17.6

2,776.4
2,757.8
18.6

2,859.7
2,844.0
15.8

2,923.3
2,907.4
15.9

2,998.9
2,980.7
18.1

3,080.3
3,061.6
18.8

5 Private

7,835.9

8,262.6

8,424.5 r

8,708.0

8,368.2"

8,394.1"

8,424.5"

8,472.0"

8,548.5"

8,616.4

8,708.0

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

5,577.9
1,004.4
926.1
3,647.5
2,515.1
304.4
742.6
85.3
2,258.0
791.8
760.7
107.1
598.4

5,936.0
1,055.6
973.2
3,907.3
2,760.0
305.8
757.6
84.0
2,326.7
809.3
758.0
116.9
642.6

6,180.6 r
1,101.4
1,051.9"
4,027.3 r
2,889.0'
304.9"
750.3"
83.2
2,243.9
796.7
724.6
98.5
624.1

6,461.1
1,154.7
1,118.3
4,188.1
3,087.5
296.6
720.4
83.7
2,246.9
799.2
707.8
108.3
631.6

6,087.4"
1,072.5
1,016.5
3,998.5"
2,835.3"
310.6"
768.8"
83.8
2,280.8
786.7
742.0
119.4
632.6

6,137.2"
1,089.3
1,036.9
4,011.1"
2,866.9"
302.9"
758.1"
83.2"
2,256.9
785.9
734.1
107.0
629.8

6,180.6"
1,101.4
1,051.9"
4,027.3"
2,889.0"
304.9"
750.3"
83.2
2,243.9
796.7
724.6
98.5
624.1

6,252.0"
1,111.5
1,071.0
4,069.4"
2,935.3"
304.9"
746.4"
82.9
2,220.0
775.7
712.5
110.3
621.6

6,326.7"
1,128.6
1,090.4
4,107.7"
2,983.3"
300.4"
740.6"
83.5"
2,221.9"
775.8
709.4
111.7
624.9"

6,395.4
1,145.6
1,105.7
4,144.1
3,035.4
299.7
725.1
83.9
2,221.0
781.1
705.2
108.3
626.4

6,461.1
1,154.7
1,118.3
4,188.1
3,087.5
296.6
720.4
83.7
2,246.9
799.2
707.8
108.3
631.6

19
20
21
22
23
24

By borrowing
sector
State and local government
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate

815.7
3,508.2
3,512.0
139.2
1,177.5
2,195.3

864.0
3,780.6
3,618.0
140.5
1,204.2
2,273.4

902.5
3,925.5"
3,596.5"
138.8
1,180.6
2,277.1"

950.6
4,140.6
3,616.7
139.7
1,146.4
2,330.6

878.5
3,846.7"
3,643.0"
139.6
1,210.8
2,292.7"

891.4
3,886.0"
3,616.7"
140.4
1,191.0
2,285.3"

902.5
3,925.5"
3,596.5"
138.8
1,180.6
2,277.1"

911.3
3,950.6"
3,610.1"
136.4"
1,174.9
2,298.9"

925.9
4,008.1"
3,614.5"
140.1"
1,163.7"
2,310.7"

942.3
4,068.6
3,605.5
141.2
1,150.6
2,313.7

950.6
4,140.6
3,616.7
139.7
1,146.4
2,330.6

254.8

278.6

292.7

307.6

277.6

282.2

292.7

282.4

298.4"

306.9

307.6

88.0
21.4
63.0
82.4

109.4
18.5
75.3
75.4

124.2
21.6
81.8
65.2

142.7
23.2
77.7
64.0

114.8
19.7
74.0
69.1

118.6
20.0
78.0
65.6

124.2
21.6
81.8
65.2

125.4
22.0
70.5
64.4

130.9"
25.5
77.5
64.5"

136.5
26.5
80.7
63.4

142.7
23.2
77.7
64.0

10,341.9

11,039.4

11,237.7" 11,363.5" 11,493.6" 11,614.1" 11,770.2"

11,922.2

12,095.9

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

ll,493.6 r

12,095.9

10,960.1" 11,081.3" 11,200.9" 11,331.8" 11,471.8"

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
Commercial banks
45
Bank affiliates
46
47
Savings and loan associations
48
Mutual savings banks
49
Finance companies
50
Real estate investment trusts (REITs)
51
Securitized credit obligation (SCO) issuers...

2,333.0

2,524.2

2,665.9"

2,890.1

2,578.2"

2,615.1"

2,665.9"

2,697.7"

2,756.6"

2,824.0

2,890.1

1,249.3
373.3
871.0
5.0
1,083.7
491.9
3.4
37.5
409.1
141.8

1,418.4
393.7
1,019.9
4.9
1,105.8
528.2
4.2
38.6
417.7
117.1

1,574.3"
402.9
1,166.7"
4.8
1,091.6"
580.2"
4.8
41.8
385.7
79.1

1,741.5
443.1
1,293.5
4.8
1,148.6
621.8
5.1
49.0
392.8
79.9

1,489.6"
389.6
1,095.2"
4.9
1,088.6
562.2
4.5
37.0
390.1
94.7

1,531.1"
394.7
1,131.5"
4.9
1,084.0"
569.5
4.6"
39.0
387.0
83.9

1,574.3"
402.9
1,166.7"
4.8
1,091.6"
580.2"
4.8
41.8
385.7
79.1

1,603.8"
405.7
1,193.2"
4.8
1,094.0
578.2
5.0
41.6
392.9
76.3

1,658.3"
417.8
1,235.6"
4.8
1,098.3
583.2
5.0
43.7
389.5
76.9

1,702.0
434.7
1,262.5
4.8
1,122.0
598.4
5.1
44.5
393.9
80.2

1,741.5
443.1
1,293.5
4.8
1,148.6
621.8
5.1
49.0
392.8
79.9

378.3
871.0
1,083.7
77.4
142.5
145.2
17.2
504.2
10.1
187.1

398.5
1,019.9
1,105.8
76.3
114.8
115.3
16.7
539.8
10.6
232.3

407.7
1,166.7"
1,091.6"
63.0
112.3
75.9
13.2
547.9"
11.4
268.0

447.9
1,293.5
1,148.6
67.4
113.4
71.3
14.9
562.2
14.0
305.4

394.4
1,095.2"
1,088.6
65.9
113.3
91.0
16.6
540.4
11.0
250.3

399.5
1,131.5"
1,084.0"
64.6
110.6
79.0
15.2
543.7
11.2"
259.9

407.7
1,166.7"
1,091.6"
63.0
112.3
75.9
13.2
547.9"
11.4
268.0

410.5
1,193.2"
1,094.0
60.8
115.0
71.2
13.5
547.1
12.7
273.6

422.6
1,235.6"
1,098.3
61.7
112.7
70.3
14.3
541.8
13.2
284.4

439.5
1,262.5
1,122.0
63.3
114.4
70.9
16.2
549.4
13.7
294.2

447.9
1,293.5
1,148.6
67.4
113.4
71.3
14.9
562.2
14.0
305.4

14,746.2

14,985.9

4,696.0
1,145.6
1,840.5
4,149.2
781.1
776.1
582.9
774.8

4,817.0
1,154.7
1,882.8
4,193.3
799.2
780.0
578.8
780.3

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

12,674.9

13,563.6

14,159.6"

14,985.9

3,495.6
1,004.4
1,506.0
3,650.9
791.8
819.6
579.2
827.5

3,911.7
1,055.6
1,610.7
3,911.5
809.3
815.1
609.9
839.9

4,345.9"
1,101.4
1,756.4"
4,032.1"
796.7
788.0
565.9
773.2

4,817.0
1,154.7
1,882.8
4,193.3
799.2
780.0
578.8
780.3

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables L.2 through L.4. For ordering address, see inside front cover.




13,815.9" 13,978.7" 14,159.6" 14,311.9" 14,526.8"
4,076.6"
1,072.5
1,693.5
4,003.0"
786.7
798.7
583.6
801.4

4,213.5"
1,089.3
1,725.0
4,015.6"
785.9
793.2
572.0
784.2

4,345.9"
1,101.4
1,756.4"
4,032.1"
796.7
788.0
565.9
773.2

4,458.7"
1,111.5
1,774.6
4,074.5"
775.7
776.1
573.7
767.1

4,576.8"
1,128.6
1,804.5"
4,112.7"
775.8
778.7
578.7
771.1"

Flow of Funds
1.60

A43

S U M M A R Y OF F I N A N C I A L ASSETS A N D LIABILITIES 1
Billions of dollars except as noted, end of period
1992

1991
T r a n s a c t i o n c a t e g o r y or s e c t o r

1989

1990

1991

1992
Q2

Q4

Q3

QL

Q2"

Q3"

Q4

14,159.6R

CREDIT MARKET D E B T O U T S T A N D I N G 2
14,159.6R

13,815.9R

13,978.7'

R

R

13,815.9"

14,311.9*

14,526.8

14,746.2

14,985.9

2,440.5
1,710.1
56.4
180.3
493.7
205.1
734.2
9,295.1
367.2
871.0
233.3
2,643.9
2,368.4
242.3
16.2
17.1
5,179.7
1,484.9
1,088.9
241.1
154.9
2,140.3
1,013.1
317.5
394.7
414.9
1,554.5
617.1
307.2
291.8
8.4
142.9
187.1

2,644.2
1,882.3
55.0
186.9
519.9
238.7
792.4
9,888.3
383.6
1,019.9
241.4
2,769.3
2,463.6
270.8
13.4
21.6
5,474.1
1,335.5
945.1
227.1
163.4
2,329.1
1,116.5
344.0
431.3
437.4
1,809.4
658.7
360.2
372.7
7.7
177.9
232.3

2,531.9"
L,734.7R
53.1
207.9
536.2
246.2
835.LR
10,546.4R
397.7
L,166.7R
272.5
2,853.3
2,502.5
319.2
11.9
19.7
5,856.2R
1,190.6
804.2
211.5
174.9
2,674.9"
1,199.6
378.7
622.2R
474.3
L,990.7R
635.6R
450.5
402.7R
7.0
226.9
268.0

2,584.0
2,661.3
1,791.9
L,889.5R
51.1
53.3
216.3
189.7
524.7
528.8
233.7
252.9
932.8
807.9R
11,235.5 10,093.8R
460.5
382.0R
1,293.5
L,095.2R
300.4
253.7
J ,944.0 2,796.6
1,571.7
2,480.0
333.8
284.4
18.6
11.3
20.0
20.9
(,,237.1
5,566.4R
1,248.4
1,126.8
727.2
866.3
208.7
216.4
190.9
165.7
859.8
2,443.9"
,294.5
1,183.7
396.0
361.4
660.0
437.LR
509.3
461.7
L,874.1R
:>,250.5
656.4
651.7
574.0
394.4
405.2
389.9
8.5
7.4R
180.4
300.9
305.4
250.3

2,653.8
1,881.0"
52.9
189.9
530.0
252.0
817.2R
10,255.6R
389.3R
L,131.5R
264.7
2,817.8
2,488.7
297.5
11.6
20.0
5,652.2R
1,205.1
826.1
208.7
170.2
2,507.4R
1,201.4
370.7
465.4R
470.1
1,939.7
647.4
421.4
389.5
7.2
214.3
259.9

2 , 5 3 1 Y 2,546.LR
L,766.5R
L,734.7R
51.9
53.1
196.2
207.9
531.4
536.2
250.2
246.2
835.LR
857.2R
10,546.4R 10,658.4R
397.7
419.9
L,193.2R
L,166.7R
272.5
271.8
2,860.6
2,853.3
2,502.5
2,514.0
313.3
319.2
13.6
11.9
19.7
19.7
5,856.2R
5,913.0R
1,161.8
1,190.6
804.2
771.1
213.4
211.5
177.2
174.9
2,674.9R
2,708.0"
1,224.3
1,199.6
387.0
378.7
622.2R
615.LR
481.6
474.3
2,043.3R
L,990.7R
641.0
635.6R
470.0"
450.5
402.7R
423.1
6.8
7.0
228.8
226.9
273.6
268.0

2,548.9
1,756.8
51.3
207.5
533.3
245.3
891.8
10,840.9
429.0
1,235.6
282.6
2,882.9
2,521.9
328.2
13.1
19.7
6,010.7
1,143.0
748.8
211.6
182.6
2,756.2
1,247.1
392.5
627.4
489.1
2,111.5
641.6
513.3
413.5
7.5
251.2
284.4

2,539.7
1,759.2
50.8
202.1
527.6
238.1
907.9
11,060.5
446.3
1,262.5
285.2
2,922.9
2,556.7
328.9
17.5
19.8
6,143.6
1,133.2
737.9
208.3
187.0
2,812.2
1,270.3
393.1
650.1
498.7
2,198.2
642.5
548.7
408.8
6.8
297.3
294.2

2,584.0
1,791.9
51.1
216.3
524.7
233.7
932.8
11,235.5
460.5
1,293.5
300.4
2,944.0
2,571.7
333.8
18.6
20.0
6,237.1
1,126.8
727.2
208.7
190.9
2,859.8
1,294.5
396.0
660.0
509.3
2,250.5
656.4
574.0
405.2
8.5
300.9
305.4

12,674.9

13,563.6

14,159.6"

14,985.9

13,978.7R

14,159.6R

14,526.8

14,746.2

14,985.9

53.6

61.3

23.8
354.3
3,210.5
32.4
4,644.6
888.6
2,265.4
615.4
428.1
403.2
43.9
566.2
133.9
903.9
81.8
2,508.3

26.3
380.0
3,303.0
64.0
4,741.4
932.8
2,325.3
548.7
498.4
379.7
56.6
602.1
137.4
938.0
81.4
2,678.8

26.3
402.0
4,223.4R
65.2R
4,802.5
1,008.5
2,342.0
487.9
539.6
363.4
61.2
813.9R
188.9
940.9R
72.3R
2,811.7R

24.5
434.0
4,585.8
111.4
4,853.3
1,130.3
2,279.3
409.0
547.9
435.2
51.6
1,056.5
224.3
992.1
77.1
2,921.0

25,188.3

26,577.2

2 8 , 5 6 2 . LR

30,317.6

12,674.9

1 Total credit market assets
2 Private domestic nonfinancial sectors
3
Households
4
Nonfarm noncorporate business
5
Nonfinancial corporate business
6
State and local governments
7 U.S. government
8 Foreign
9 Financial sectors
10
S p o n s o r e d credit agencies
11
Mortgage pools
12
Monetary authority
13
Commercial banking
14
U.S. commercial banks
15
Foreign banking offices
16
B a n k affiliates
17
B a n k s in U . S . p o s s e s s i o n
18
P r i v a t e n o n b a n k finance
19
Thrift institutions
20
Savings and loan associations
21
Mutual savings banks
22
Credit unions
23
Insurance
24
Life insurance companies
25
Other insurance companies
26
Private pension funds
27
State and local government retirement funds,
28
Finance n.e.c
29
Finance companies
30
Mutual funds
31
Money market funds
32
Real estate investment trusts (REITs)
33
Brokers and dealers
34
Securitized credit obligation ( S C O s ) issuers .

13,563.6

14,985.9

RELATION OF LIABILITIES
TO F I N A N C I A L ASSETS
35 Total credit m a r k e t debt
Other
liabilities
36 Official foreign e x c h a n g e
.• • • • .
37 Treasury currency and special drawing
rights
certificates
38 Life insurance reserves
39 Pension fund reserves
40 Interbank claims
4 1 D e p o s i t s a t financial i n s t i t u t i o n s
42
Checkable deposits and currency
43
Small time and savings deposits
44
Large time deposits
45
M o n e y market fund shares
46
Security repurchase agreements
47
Foreign deposits
48 Mutual fund shares
49 Security credit
50 Trade debt
51 T a x e s p a y a b l e
52 Miscellaneous
53 Total liabilities

55.4

51.8

53.6
26.1
392.3
3,550.9"
35.9"
4,765.7
933.1
2,351.5
532.6
532.8
354.0
61.7
683.7
137.5
909.4
65.8
2,699.2R

52.9
26.2
397.2
3,716.5R
60.9"
4,769.5
948.3
2,339.7
517.1
533.1
368.9
62.4
744.2
158.1
935.3
71.9R
2,733.4R

27,136.1R 27,644.8R

I4,311.9R

54.4

55.4

51.8

26.3
409.6"
4 , 2 4 2 . LR
67.4"
4,796.7R
984.3R
2,340.9"
469.7"
571.0
376.4
54.4"
857.7"
195.1
940.9"
74.2"
2,828.8"

26.4
416.8
4,294.2
70.7
4,790.9
1,032.3
2,314.7
438.7
557.2
406.8
41.3
935.5
194.1
945.3
69.8
2,875.3

26.5
424.9
4,429.1
101.8
4,843.1
1,071.6
2,294.3
428.8
553.2
444.1
51.1
977.4
213.1
974.6
74.8
2,915.2

24.5
434.0
4,585.8
111.4
4,853.3
1,130.3
2,279.3
409.0
547.9
435.2
51.6
1,056.5
224.3
992.1
77.1
2,921.0

2 8 , 5 6 2 . LR 2 8 , 8 0 3 . 3 "

29,200.2

29,782.1

30,317.6

55.4
26.3
402.0
4,223.4R
65.2R
4,802.5
1,008.5
2,342.0
487.9
539.6
363.4
61.2
813.9"
188.9
940.9R
72.3R
2,811.7R

52.7

Financial
assets
not included
in liabilities
(+)
5 4 G o l d a n d s p e c i a l d r a w i n g rights
55 Corporate equities
5 6 H o u s e h o l d e q u i t y in n o n c o r p o r a t e b u s i n e s s

21.0R
3,819.7
2,524.9

22.0"
3,506.6
2,449.4

22.3R
4,630.0
2,367.8R

19.6
5,127.7
2,263.6

21.4R
4,104.7
2,511.8R

21.8R
4,338.5
2,495.2R

22.3R
4,630.0
2,367.8R

22.0"
4,739.7
2,373.5"

22.1
4,678.1
2,354.7

23.2
4,860.5
2,330.9

19.6
5,127.7
2,263.6

Floats
not included
in assets
( - )
57 U . S . g o v e r n m e n t c h e c k i n g deposits
58 Other checkable deposits
59 Trade credit

6.1
26.5
-159.7

15.0
28.9
-148.0

3.8
30.9
-134.0R

6.8
32.5
-138.5

8.3
29.9
-157.7

19.8
23.6
-154.2

3.8
30.9
-134.0R

.9
29.5"
-135.2"

1.4
32.6
-154.7

4.0
23.3
-152.7

6.8
32.5
-138.5

Liabilities
not identified
as assets
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous

-4.3
-31.0
11.5
20.6
-251.LR

-4.1
-32.0
-23.3
21.8
-247.3R

-4.8
-4.2
-12.9
18.9"
-452.3R

-5.0
-10.7
27.1
28.9
-549.3

-4.7
-9.9
-25.8
11.8R
-242.3R

-4.7
-4.7
-10.6
17.6R
-300.8R

-4.8
-4.2
-12.9
18.9"
-452.3R

-4.9
-1.8
-10.1
11.5"
-443.0"

-4.9
-4.0
11.6
18.0
-455.7

-5.0
-5.9
36.5
24.4
-510.1

-5.0
-10.7
27.1
28.9
-549.3

38,336.6 34,164.3R 34,914.2" 36,136.8R 36,491.8"

36,810.8

37,582.0

38,336.6

60
61
62
63
64

6 5 T o t a l s i d e n t i f i e d to s e c t o r s a s a s s e t s

( - )

31,935.2R 32,944.3R 36,136.8R

1. D a t a i n t h i s t a b l e a l s o a p p e a r i n t h e B o a r d ' s Z . l ( 7 8 0 ) q u a r t e r l y s t a t i s t i c a l
release, tables L . 6 through L.7. F o r ordering address, see inside front cover.




2. E x c l u d e s c o r p o r a t e e q u i t i e s a n d m u t u a l f u n d s h a r e s .

A44
2.10

Domestic Nonfinancial Statistics • June 1993
NONFINANCIAL BUSINESS ACTIVITY

Selected Measures

Monthly data seasonally adjusted, 1987=100 except as noted
1993

1992
Measure

1990

1991

1992
July

Aug.

Sept.

Oct.

Nov.r

Dec.r

Jan. r

Feb.

Mar.

1 Industrial production 1

109.2

107.1

108.7

109.4

109.1

108.9

109.7

110.4

111.0

111.4

112.0

112.0

Market
groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials

110.1
110.9
107.3
115.5
107.7
107.8

108.1
109.6
107.5
112.2
103.4
105.5

109.5
111.1
110.5 r
111.9
104.6
107.5 r

109.6
111.0
110.4
111.8
105.1
109.0

109.8
111.5
110.8
112.5
104.4
108.1

109.6
111.2
110.7
111.9
104.5
107.9

110.7
112.4
111.9
113.0
105.5
108.2

111.3
113.1
112.6
113.7
105.7
109.0

112.3
114.2
113.4
115.3
106.2
109.0

112.7
114.6
113.4
116.3
106.5
109.3

113.3
115.2
114.2
116.6
107.2
110.0

113.3
115.2
114.0
116.7
107.2
110.0

109.9

107.4

109.7

110.2

110.1

109.8

110.6

111.3

111.8

112.8

113.3

113.4

2
3
4
5
6
7

Industry
groupings
8 Manufacturing
9 Capacity utilization, manufacturing
(percent) 2

82.3

78.2

77.8

78.1

77.9

77.5

77.9

78.3

78.5

79.0

79.2

79.1

95.3

89.7

92.8

89.0

90.0

89.0

104.0

92.0

90.0

100.0

95.0

n.a.

11 Nonagricultural employment, total 4
12
Goods-producing, total
13
Manufacturing, total
14
Manufacturing, production worker
15
Service-producing
16 Personal income, total
17
Wages and salary disbursements
18
Manufacturing
19
Disposable personal income 5
20 Retail sales 6

107.4
101.0
100.5
100.1
109.5
122.7
121.3
113.5
122.9
120.2 r

106.0
96.4
97.0
96.1
109.0
127.0
124.4
113.6
128.0
121.3 r

106.1
94.8
95.6
95.2
109.7
133.0
129.0
115.4
134.7
127. r

106.3
94.9
95.9
95.5
109.9
132.8
128.7
115.5
134.5
126.6 r

106.2
94.6
95.4
94.9
109.9
133.0
129.6
115.3
134.6
127.3 r

106.2
94.3
95.2
94.6
110.0
133.6
129.5
115.3
135.2
128.l r

106.2
94.2
94.9
94.3
110.1
135.3 r
130.5
116.5
137.0 r
130.7 r

106.3
94.2
95.0
94.6
110.2
135.3
131.2
116.0
136.8
130.5

106.4
94.2
94.9
94.7
110.3
136.6
132.3
118.0
138.2
131.9

106.5
94.2
95.1
95.2
110.5
137.3
133.0
117.1
138.7
132.0

106.9
94.6
95.2
95.2
110.8
137.5
132.9
117.8
139.0
131.5

106.9
94.3
95.2
95.2
110.9
n.a.
n.a.
n.a.
n.a.
130.2

Prices7
71 Consumer ( 1 9 8 2 - 8 4 = 100)
22 Producer finished goods (1982=100)

130.7
119.2

136.2
121.7

140.3
123.2

140.5
123.7

140.9
123.6

141.3
123.3

141.8
124.4 r

142.0
124.0

141.9
123.8

142.6
124.0

143.1
124.3

143.6
124.6

10 Construction contracts 3

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 R e v i s i o n , " 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 . D o d g e Division.
4. Based on data from U . S . Department of Labor, Employment and Earnings.
Series covers employees only, excluding personnel in the armed forces.
5. Based on data from U . S . Department of Commerce, Survey of Current
Business.




6. Based on data from U . S . Bureau of the Census, Survey of Current
Business.
7. Based on data not seasonally adjusted. Seasonally adjusted data for changes
in the price indexes can be obtained from the Bureau of Labor Statistics, U . S .
Department of Labor, Monthly Labor
Review.
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 b e 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. S e e
"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 except as noted
1993

1992
Category

1990

1991

1992
Aug.

Sept.

Oct.

Nov.

Dec.

Jan. r

Feb.

Mar.

H O U S E H O L D SURVEY D A T A

1 Noninstitutional population 1

190,216

191,883

193,542

193,749

193,893

194,051

194,210

194,379

194,514

194,641

194,829

2 Labor force (including Armed Forces) 1
3
Civilian labor force
Employment
4
Nonagricultural industries
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor f o r c e ) . . . .
8 Not in labor force

126,954
124,787

127,421
125,303

128,948
126,982

129,363
127,404

129,220
127,274

128,986
127,066

129,259
127,365

129,461
127,591

128,953
127,083

129,182
127,327

129,299
127,429

114,728
3,186

114,644
3,233

114,391
3,207

114,562
3,218

114,503
3,221

114,518
3,169

114,855
3,209

115,049
3,262

114,879
3,191

115,335
3,116

115,483
3,082

6,874
5.5
63,262

8,426
6.7
64,462

9,384
7.4
64,594

9,624
7.6
64,386

9,550
7.5
64,673

9,379
7.4
65,065

9,301
7.3
64,951

9,280
7.3
64,918

9,013
7.1
65,561

8,876
7.0
65,459

8,864
7.0
65,904

109,782

108,310

108,434

108,485

108,497

108,571

108,646

108,752 r

108,865

109,232

109,210

19,117
710
5,133
5,808
25,877
6,729
28,130
18,304

18,455
691
4,685
5,772
25,328
6,678
28,323
18,380

18,192
635
4,594
5,741
25,120
6,672
28,903
18,578

18,145
626
4,591
5,729
25,070
6,661
28,981
18,682

18,102
620
4,574
5,738
25,079
6,669
29,065
18,650

18,046
623
4,601
5,731
25,115
6,680
29,152
18,623

18,068
622
4,590
5,732
25,092
6,669
29,188
18,685

18,062 r
619
4,582 r
5,742 r
25,132 r
6,677
29,253 r
18,685r

18,092
616
4,559
5,763
25,222
6,682
29,267
18,664

18,112
604
4,652
5,765
25,367
6,680
29,366
18,686

18,103
607
4,593
5,772
25,362
6,673
29,426
18,674

ESTABLISHMENT SURVEY D A T A

9 Nonagricultural payroll employment 3
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; excludes
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 U . S . Department of Labor, Employment
and
Earnings.

A46 Domestic Nonfinancial Statistics • June 1993
2.12

OUTPUT, CAPACITY, A N D CAPACITY

UTILIZATION1

Seasonally adjusted
1992

1992
Q2

Q3

Q4r

Ql

Q2

1992
Q3

Q4

Ql

Capacity (percent of 1987 output)

Output (1987=100)

Q2

1993
Q3

Q4r

Ql

Capacity utilization rate (percent)

1 Total industry

108.5

109.1

110.4

111.8

137.7

138.4

139.1

139.8

78.8

78.8

79.3

2 Manufacturing

109.5

110.0

111.2

113.2

140.6

141.4

142.2

143.0

77.9

77.8

78.2

79.1

3
4

Primary processing
Advanced processing

105.4
111.4

106.4
111.7

107.1
113.2

108.8
115.2

129.6
145.6

129.9
146.7

130.3
147.7

130.6
148.8

81.3
76.5

81.9
76.2

82.2
76.6

83.3
77.4

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 .

108.4
96.7
101.7
101.6
101.7
125.7
111.8
100.5

108.8
98.5
104.0
104.6
103.0
128.8
112.6
98.1

110.3
101.3
104.5
106.7
101.6
132.5
113.7
103.7

113.0
103.6
107.6
110.0
104.2
140.1
116.4
111.1

144.4
126.1
128.3
132.7
122.2
165.9
149.1
136.7

145.2
126.3
127.5
131.2
122.3
167.4
150.4
137.2

146.0
126.5
126.7
129.8
122.4
168.9
151.6
137.7

146.8
126.7
126.0
128.5
122.5
170.6
152.9
138.3

75.0
76.7
79.2
76.6
83.3
75.8
75.0
73.5

74.9
78.0
81.5
79.7
84.3
76.9
74.9
71.5

75.6
80.1
82.5
82.2
83.0
78.5
74.9
75.3

77.0
81.8
85.4
85.6
85.1
82.2
76.1
80.3

96.8

94.9

93.1

89.9

140.9

141.5

142.1

142.7

68.7

67.1

65.5

63.0

14
15
16
17
18
19

Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products

110.9
106.2
106.7
116.8
129.7
109.2

111.6
106.6
108.2
118.0
132.4
106.9

112.4
107.1
107.5
119.3
126.3
110.4

113.3
109.1
108.6
120.7
148.7
110.6

135.6
119.2
119.9
144.3
150.5
121.5

136.5
119.7
120.5
145.1
152.2
121.6

137.4
120.2
121.1
146.0
154.0
121.7

138.2
120.7
121.7
146.9
83.7
121.7

81.7
89.0
89.0
81.0
86.2
89.9

81.8
89.1
89.8
81.3
87.0
87.9

81.9
89.1
88.8
81.7
82.0
90.7

82.0
90.4
89.3
82.2
85.3
90.8

98.9
107.4
110.3

99.2
109.4
113.2

98.9
112.4
115.5

95.7
113.4
116.2

114.7
129.8
126.0

114.8
130.1
126.4

114.8
130.4
126.8

114.8
130.7
127.1

86.2
82.7
87.6

86.5
84.1
89.5

86.2
86.2
91.1

83.3
86.8
91.4

20 Mining
71 Utilities
22 Electric

Previous cycle 2
High

Low

Latest cycle 3

1992

Low

Mar.

High

1992
Aug.

Sept.

Oct.

79.9

1993
Nov.

Dec. r

Jan. r

Feb. r

Mar. p

Capacity utilization rate (percent)

1 Total industry

89.2

72.6

87.3

71.8

78.4

78.8

78.6

79.0

79.4 r

79.6

79.8

80.1

79.9

2 Manufacturing

88.9

70.8

87.3

70.0

77.5

77.9

77.5

77.9

78.3r

78.5

79.0

79.2

79.1

3
4

92.2
87.5

68.9
72.0

89.7
86.3

66.8
71.4

80.8
76.1

81.7
76.3

81.3
76.0

81.9
76.3

82.5r
76.6

82.2
77.0

83.0
77.4

83.5
77.5

83.5
77.3

75.5r
so^

76.0
79.6
82.4
82.3
82.5
80.0
74.8
77.9

76.7
82.5
83.4
82.9
84.1
81.0
75.4
81.4

77.2
81.7
86.5
87.1
85.6
82.4
76.4
80.2

77.1
81.1
86.4
86.9
85.6
83.0
76.7
79.4

Primary processing
Advanced processing

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.

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

74.3
78.8
78.7
76.7
81.8
74.5
74.8
69.1

75.2
78.3
81.8
79.5
85.2
77.3
75.1
72.5

74.4
76.6
80.1
78.8
82.2
76.9
74.3
70.8

75.1
79.7
82.0
81.6
82.7
77.4
74.5
73.6

83.8
78.Cr
75.6
74.3r

77.0

66.6

81.1

66.9

70.2

67.0

66.4

66.3

65.5r

64.8

64.1

62.9

62.0

14
15
16
17
18
19

Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products

87.9
92.0
96.9
87.9
102.0
96.7

71.8
60.4
69.0
69.9
50.6
81.1

87.0
91.7
94.2
85.1
90.9
89.5

76.9
73.8
82.0
70.1
63.4
68.2

81.7
88.5
88.5
79.9
85.0
90.3

81.6
88.7
88.2
81.1
86.0
85.8

81.7
88.9
90.0
81.4
85.1
88.3

81.7
88.4
87.8
81.4
82.8
91.5

82.0
89.4r
88.9
82. l r
84.1
91.0

81.9
89.5
89.6
81.6
79.1
89.7

82.1
91.3
89.1
82.2
85.2
89.7

82.0
90.4
88.6
82.2
85.3
91.7

81.8
89.6
90.0
82.1
85.4
91.1

94.4
95.6
99.0

88.4
82.5
82.7

96.6
88.3
88.3

80.6
76.2
78.7

84.9
83.1
88.1

86.1
83.6
89.2

85.6
84.6
89.9

86.1
85.0
89.8

86.6r
86.2r
91.0r

85.8
87.5
92.5

85.4
84.3
88.7

82.8
87.7
92.4

81.8
88.3
93.1

7.0 Mining
71 Utilities
22 Electric

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.




83.l r

82.6rr

2. Monthly high, 1973; monthly low, 1975.
3. Monthly highs, 1978 through 1980; monthly lows, 1982.

Selected Measures
2.13

I N D U S T R I A L PRODUCTION

A47

Indexes and Gross Value 1

Monthly data seasonally adjusted

portion

1993

1992

1987
Group

1992
avg.
Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov. r

Dec. r

Jan. r

Feb. r

Mar. p

Index (1987 = 100)

MAJOR MARKETS

100.0

108.7

107.6

108.1

108.9

108.5

109.4

109.1

108.9

109.7

110.4

111.0

111.4

112.0

112.0

? Products
Final products
4
Consumer goods, total
s
Durable consumer goods
6
Automotive products
7
Autos and trucks
8
Autos, consumer
9
Trucks, consumer
10
Auto parts and allied g o o d s . . .
11
Other
Appliances, A/C, and TV
V
Carpeting and furniture
N
14
Miscellaneous home goods . . .
15
Nondurable consumer goods
Foods and tobacco
If.
17
Clothing
Chemical products
18
Paper products
19
70
Energy
Fuels
71
Residential utilities
22

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

109.5
111.1
110.5
107.9
106.6
102.0
90.0
122.1
113.6
108.9
104.7
102.5
115.3
111.2
108.5
95.2
122.6
124.2
108.1
104.7
109.4

108.5
109.8
109.3
106.2
103.6
95.7
81.9
118.8
115.5
108.3
103.5
102.5
114.7
110.2
107.8
95.1
119.4
124.6
107.0
103.7
108.2

109.0
110.6
110.1
107.9
106.5
102.5
93.1
118.3
112.5
109.1
103.4
104.4
115.2
110.7
107.6
95.3
120.8
125.1
108.9
105.1
110.3

109.7
111.4
110.8
111.1
110.6
107.8
98.6
123.3
114.8
111.5
107.4
105.9
117.3
110.7
107.7
96.4
121.4
124.3
107.2
104.0
108.4

109.0
110.5
109.6
109.2
108.0
104.0
97.6
114.8
114.0
110.2
106.2
103.2
116.9
109.7
107.2
95.5
121.6
121.7
104.8
104.4
105.0

109.6
111.0
110.4
108.6
106.6
100.5
92.3
114.3
115.7
110.3
102.3
103.8
118.8
110.8
108.6
96.8
121.5
121.9
107.4
105.3
108.2

109.8
111.5
110.8
109.2
106.8
100.6
87.2
123.1
116.2
111.1
110.6
103.6
116.1
111.2
110.1
95.0
122.0
121.8
106.2
99.0
108.9

109.6
111.2
110.7
106.9
104.5
98.2
88.1
115.1
114.0
108.9
108.5
100.9
114.2
111.7
108.9
95.5
124.1
124.2
108.1
103.5
109.7

110.7
112.4
111.9
108.1
108.8
105.9
88.5
135.1
113.3
107.6
103.8
100.5
114.3
112.9
109.8
94.9
126.8
124.1
111.5
110.3
112.0

111.3
113.1
112.6
108.9
110.2
107.2
89.4
137.1
114.7
107.8
103.8
101.4
114.1
113.7
110.1
95.4
128.3
126.1
112.2
108.0
113.7

112.3
114.2
113.4
111.1
114.3
116.5
97.7
148.1
111.0
108.6
104.0
102.3
115.2
114.0
109.9
96.0
129.1
126.0
114.0
105.7
117.1

112.7
114.6
113.4
113.3
119.4
123.9
102.3
160.3
112.5
108.6
102.6
104.5
114.5
113.4
109.9
95.6
128.7
125.6
110.1
106.1
111.6

113.3
115.2
114.2
114.3
119.0
120.3
101.8
151.4
116.9
110.6
108.7
105.8
114.7
114.2
110.6
94.9
128.5
125.8
114.7
109.5
116.7

113.3
115.2
114.0
114.3
118.0
118.2
100.5
147.9
117.7
111.4
113.1
105.2
114.4
114.0
110.1
95.3
128.3
125.9
114.6
106.7
117.5

20.0
13.9
5.6
1.9
4.0
2.5
1.2
1.9
5.4
.6
.2

111.9
124.5
141.2
176.8
102.3
131.2
101.2
114.1
82.9
78.3
108.8

110.4
121.5
136.0
164.9
101.3
128.9
95.0
112.2
85.6
76.2
98.7

111.3
123.0
137.9
168.2
101.7
131.7
101.3
113.2
84.7
79.2
100.7

112.3
124.5
139.2
170.5
103.4
133.3
105.6
115.0
84.2
79.2
100.3

111.6
124.1
140.4
174.0
102.9
131.8
101.7
111.5
83.6
74.6
97.1

111.8
124.4
141.9
178.0
103.4
128.7
98.1
112.2
82.7
78.6
112.0

112.5
125.9
143.5
182.0
102.7
132.6
101.3
114.4
81.8
75.0
106.1

111.9
125.4
143.5
184.0
101.6
130.4
99.1
115.8
81.1
74.4
111.2

113.0
126.8
145.7
187.0
102.0
133.0
105.2
115.5
80.5
80.2
119.9

113.7
127.8
146.8
189.0
103.1
134.1
107.7
115.9
79.7
85.2
127.1

115.3
130.2
149.9
198.5
104.5
136.7
114.4
118.0
78.9
88.5
138.0

116.3
131.8
152.1
205.0
105.1
140.2
121.4
118.2
78.4
84.7
143.0

116.6
133.0
155.2
214.1
105.5
138.0
119.8
119.3
77.5
76.6
141.3

116.7
133.4
157.0

30
31
37
33

Equipment
Business equipment
Information processing and related . .
Office and computing
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes

34
35
36

Intermediate products, total
Construction supplies
Business supplies

14.7
6.0
8.7

104.6
97.4
109.5

104.4
96.7
109.7

103.9
96.5
109.0

104.4
97.8
109.0

104.4
97.2
109.4

105.1
98.6
109.7

104.4
98.5
108.5

104.5
97.1
109.6

105.5
98.5
110.4

105.7
98.8
110.5

106.2
98.4
111.6

106.5
99.5
111.4

107.2
100.7
111.7

107.2
100.5
111.9

37 Materials
38
Durable goods materials
39
Durable consumer parts
Equipment parts
4ft
Other
41
Basic metal materials
47
43
Nondurable goods materials
44
Textile materials
45
Pulp and paper materials
46
Chemical materials
47
Other
Energy materials
48
49
Primary energy
Converted fuel materials
50

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

107.5
109.9
101.0
116.3
108.8
108.3
109.7
102.6
109.8
110.2
112.5
101.2
100.3
103.0

106.1
108.3
97.9
115.1
107.5
106.3
108.9
102.0
107.8
109.3
112.7
100.1
98.2
103.8

106.8
108.7
99.3
114.7
108.1
106.3
109.4
103.2
109.2
109.9
112.2
101.3
99.8
104.1

107.7
110.4
102.5
116.2
109.2
108.3
109.7
102.9
107.8
111.2
112.4
101.3
99.7
104.3

107.6
110.2
102.9
116.2
108.7
107.7
110.4
102.3
110.8
110.9
113.4
100.6
99.6
102.6

109.0
111.2
101.8
117.5
110.2
111.5
111.7
103.9
111.8
113.4
112.8
102.9
102.3
104.1

108.1
111.1
103.9
117.0
109.5
110.9
110.3
102.9
108.9
111.9
112.6
100.9
101.4
100.0

107.9
109.9
102.3
116.4
108.1
108.1
110.5
103.9
112.7
110.9
111.5
102.0
101.8
102.5

108.2
110.9
103.5
117.2
109.1
108.5
109.7
103.3
109.6
110.2
112.6
102.0
102.1
101.7

109.0
112.0
103.8
118.7
110.2
111.3
110.6
103.8
111.0
111.1
112.9
102.4
102.3
102.4

109.0
112.1
104.0
119.1
109.9
108.8
110.2
102.7
113.2
109.0
114.1
102.3
101.9
103.1

109.3
113.4
104.8
121.0
111.0
109.6
111.6
104.7
110.3
112.0
115.6
100.1
99.9
100.5

110.0
114.4
105.2
122.3
112.1
111.5
111.7
104.4
111.1
112.5
114.9
100.6
98.7
104.4

110.0
114.4
105.0
122.5
111.8
111.2
112.5
103.4
114.4
113.2
114.6
100.3
97.9
104.9

97.3
95.3

108.9
109.2

107.9
108.2

108.3
108.6

109.0
109.2

108.6
108.8

109.6
109.9

109.3
109.6

109.2
109.5

109.8
110.1

110.5
110.8

110.9
111.2

111.0
111.3

111.8
112.0

111.8
112.1

1 Total index

73

74
75
76

77
78
79

105.4
136.3
118.1
120.1
77.1
72.2

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

107.0

106.1

106.6

107.4

106.8

107.6

107.3

107.0

107.8

108.4

108.8

109.0

109.4

109.3

24.5
23.3

111.0
110.7

110.2
109.6

110.6
110.3

110.9
111.2

109.9
110.1

111.0
110.7

111.4
111.3

111.4
111.0

112.2
111.9

113.0
112.7

113.2
113.3

112.7
113.7

113.8
114.1

113.8
114.0

12.7

126.8

124.1

125.2

126.4

126.3

127.0

128.3

127.9

128.9

129.7

131.7

132.9

134.2

134.9

12.0

116.1
109.8

114.5
108.5

115.7
108.9

117.1
110.2

116.1
110.3

115.8
111.3

116.8
110.8

115.9
110.1

117.0
110.5

117.9
111.6

119.1
111.5

120.0
112.8

119.9
113.6

119.7
113.8

28.4

A48

Domestic Nonfinancial Statistics • June 1993

2.13—Continued

Group

SIC
code

1987
proportion

1992

1993

1992
avg.
Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov. r

Dec. r

Jan. r

Feb/

Mar.P

Index (1987 = 100)

MAJOR INDUSTRIES

100.0

108.7

107.6

108.1

108.9

108.5

109.4

109.1

108.9

109.7

110.4

111.0

111.4

112.0

112.0

2 Manufacturing
3
Primary processing
4
Advanced processing

84.4
26.7
57.7

109.7
105.7
111.5

108.5
104.5
110.3

109.0
105.0
110.8

109.9
105.6
111.9

109.6
105.6
111.4

110.2
107.3
111.6

110.1
106.2
112.0

109.8
105.7
111.7

110.6
106.6
112.5

111.3
107.4
113.1

111.8
107.2
114.0

112.8
108.3
114.8

113.3
109.0
115.3

113.4
109.1
115.4

5
6
7
8

Durable goods
"'24
Lumber and products . . .
25
Furniture and fixtures . . .
d a y , glass, and stone
32
products
Primary metals
33
331,2
Iron and steel
Raw steel
333-6,9
Nonferrous
Fabricated metal
34
products
35
Nonelectrical machinery.
Office and computing
357
machines
36
Electrical machinery . . . .
Transportation
37
equipment
Motor vehicles and
371
parts
Autos and light
trucks
Aerospace and miscellaneous transportation equipment.. 3 7 2 - 6 , 9
38
Instruments
39
Miscellaneous

47.3
2.0
1.4

108.5
98.6
100.2

107.0
99.2
98.6

107.6
97.2
101.1

109.1
97.4
103.3

108.5
95.4
100.3

109.0
99.8
101.0

109.2
98.9
101.7

108.2
96.7
100.5

109.5
100.8
99.6

110.2
102.3
99.5

111.2
100.7
100.5

112.4
104.4
101.4

113.3
103.5
103.4

113.4
102.8
103.3

2.5
3.3
1.9
.1
1.4

96.2
103.0
104.1
101.2
101.6

95.0
101.4
102.5
98.8
99.9

95.6
100.9
100.9
99.9
100.9

96.7
102.0
102.2
98.5
101.8

96.6
102.1
101.8
101.5
102.5

97.1
105.6
106.4
105.3
104.4

96.4
104.3
104.4
101.9
104.2

96.1
102.0
103.0
99.8
100.5

97.7
104.2
106.3
101.7
101.2

97.8
105.3
107.2
101.5
102.6

98.3
104.2
106.5
100.4
101.0

98.2
105.2
106.8
106.6
103.0

99.0
109.0
111.9
106.9
104.9

99.2
108.6
111.2

5.4
8.6

101.8
127.3

100.0
122.9

100.6
124.1

102.2
126.7

102.2
126.4

102.6
127.8

102.5
129.3

101.3
129.1

102.9
130.4

103.4
131.7

104.5
135.5

105.2
137.8

105.2
140.6

105.2
142.0

2.5
8.6

176.8
111.9

164.9
110.9

168.2
111.0

170.5
112.3

174.0
112.2

178.0
112.6

182.0
113.0

184.0
112.1

187.0
112.7

189.0
114.6

198.5
113.7

205.0
114.9

214.1
116.8

218.3
117.6

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 . . .

1 Total index

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

34 Mining
35
Metal
36
Coal
37
Oil and gas extraction
38
Stone and earth minerals . .
39 Utilities
40
Electric
41
Gas

104!9

9.8

97.2

96.5

98.0

99.6

98.2

96.7

97.0

95.6

97.5

97.5

99.4

101.3

99.8

98.7

4.7

98.7

94.2

98.5

102.7

100.4

97.7

99.4

97.2

101.2

102.4

107.4

112.5

111.0

109.9

2.3

100.2

93.7

101.1

106.5

103.0

99.3

98.6

96.7

103.1

104.6

113.7

120.7

117.6

115.6

5.1
3.3
1.2

96.0
118.1
119.5

98.6
118.6
120.0

97.4
119.0
118.9

96.8
119.8
118.4

96.3
118.5
117.8

95.7
118.5
120.4

94.9
118.2
118.2

94.1
118.1
118.6

94.1
117.8
119.7

93.0
116.8
120.0

92.2
116.8
120.3

91.3
116.2
118.8

89.7
116.2
118.1

88.6
116.4
118.0

"20
21
22
23
26
27
28
29

37.2
8.8
1.0
1.8
2.4
3.6
6.4
8.6
1.3

111.2
110.1
105.3
106.0
97.7
107.1
113.3
117.1
108.6

110.4
110.2
101.3
105.3
97.8
105.8
113.8
114.8
109.7

110.7
109.6
101.0
106.3
98.0
107.0
113.7
115.8
110.3

110.9
109.3
102.5
106.8
99.0
105.8
113.4
117.0
108.5

111.0
109.0
103.6
105.3
98.1
107.3
113.0
117.5
108.9

111.7
109.8
106.6
107.1
99.4
109.6
112.3
118.0
109.1

111.3
110.6
115.9
106.1
97.6
106.3
111.4
117.6
104.3

111.8
110.2
110.5
106.6
97.6
108.6
113.2
118.3
107.4

112.0
111.2
107.6
106.1
97.2
106.2
113.4
118.7
111.3

112.7
111.5
107.7
107.4
97.8
107.6
113.6
119.9
110.7

112.7
111.1
108.1
107.7
97.9
108.7
114.6
119.3
109.1

113.2
111.8
108.7
110.0
97.5
108.3
114.3
120.5
109.2

113.4
112.1
108.5
109.1
97.3
107.8
114.4
120.8
111.7

113.3
111.9
106.3
108.3
97.6
109.7
114.2
120.9
110.9

30
31

3.0
.3

117.2
85.3

115.4
82.9

116.5
84.1

117.1
86.2

117.3
86.2

118.5
87.1

119.0
84.8

117.3
86.4

118.3
87.0

119.3
86.0

119.3
86.9

119.7
87.1

120.5
87.3

120.1
87.1

"lO
11,12
13
14

7.9
.3
1.2
5.7
.7

98.8
158.0
105.5
93.2
105.8

97.5
155.8
103.0
91.9
107.4

99.1
154.2
104.0
94.2
105.9

99.7
166.4
107.6
93.4
108.0

98.0
154.0
98.6
93.9
105.6

100.6
163.7
112.0
94.0
106.2

98.8
165.6
107.5
92.4
106.4

98.3
158.6
103.7
93.0
105.2

98.8
155.7
103.9
93.9
104.9

99.4
167.1
106.8
93.4
105.5

98.5
159.7
106.7
92.6
104.7

98.0
156.9
110.1
91.3
105.6

95.1
157.8
103.4
88.8
104.1

94.0
157.8
99.2
88.1
104.8

7.6
6.0
1.6

108.6
111.6
97.6

107.7
110.7
96.7

108.2

49i,3PT
492,3PT

97.7

107.3
110.2
96.6

106.7
109.7
95.3

109.3
113.0
95.4

108.8
112.7
94.1

110.2
113.8
97.0

110.7
113.7
99.6

112.4
115.3
101.3

114.2
117.4
102.4

110.1
112.6
100.5

114.6
117.4
104.1

115.6
118.5
104.9

79.8

110.3

109.3

109.6

110.3

110.1

110.9

110.7

110.5

111.1

111.8

112.1

112.8

113.4

113.6

82.0

107.6

106.8

107.2

108.1

107.6

108.2

108.0

107.6

108.3

109.0

109.2

110.0

110.3

110.2

111.0

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 1,932.5 1,902.8 1,918.7 1,935.5 1,920.1 1,936.2 1,935.9 1,937.0 1,969.8 1,981.4 2,001.9 2,024.1 2,041.6 2,040.3

45 Final
46
Consumer goods
47
Equipment
48 Intermediate

1,350.9 1,529.8 1,501.5 1,518.2 1,532.1 1,519.1 1,530.4 1,532.8 1,534.6 1,563.8 1,572.2 1,593.5 1,612.8 1,627.8 1,625.2
912.4
896.2
905.6
909.3
905.3
907.1
833.4
907.9
901.3
928.2
935.5
931.3
943.4
950.8
945.3
612.7
619.7
621.0
627.5
517.5
621.9
605.3
617.8
627.5
635.6
640.9
658.0
669.5
677.0
679.9
400.5
403.4
401.2
405.8
403.1
402.7
401.1
402.4
384.0
406.0
408.5
409.1
411.3
413.8
415.1

1. Data in this table also appear in the Board's G.17 (419) monthly 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
1993

1992

Item

1990

1991

1992 R

May

June

July

Aug.

Sept.

Oct."

Nov."

Dec."

Jan.

Feb.

1,138
955
183
1,189
1,040
149
644
510
134
1,264
1,054
210
262

Private residential real estate activity (thousands of units except as noted)

N E W UNITS

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

Permits authorized
One-family
Two-or-more-family
Started
One-family
Two-or-more-family
Under construction at end of period . .
One-family
Two-or-more-family
Completed
One-family
Two-or-more-family
Mobile homes shipped

Merchant builder activity in
one-family units
14 Number sold
15 Number for sale at end of period
Price of units sold
of dollars)
16 Median
17 Average

...

1,111
794
317
1,193
895
298
711
449
262
1,308
966
342
188

535
321

949
754
195
1,014
840
174
606
434
173
1,091
838
253
171

507
284 R

1,097
913
184
1,200
1,030
169
612
473
140
1,158
964
194
210

1,054
879
175
1,197
1,019
178
650"
483 R
167 R
L,194 R
L,002 R
192 R
194

1,032
872
160
1,141
994
147
641"
481"
160
1,181"
979"
202
194

1,080
879
201
1,106
961
145
628
474"
154"
1,234"
1,026"
208"
210

1,076
877
199
1,229
1,038
191
633
479"
154"
1,133"
945"
188"
202

1,125
913
212
1,218
1,045
173
637"
485"
152
1,128"
942"
186"
217

1,139
959
180
1,226
1,079
147
645
493
152
1,137
964
173
228

1,126
955
171
1,226
1,089
137
641
498
143
1,229
1,002
227
244

1,201
1,044
157
1,286
1,133
153
501
143
1,227
1,016
211
266

1,180
997
183
1,171
1,051
120
646
507
139
1,130
973
157
267

609
265

552 R
273"

584"
273"

622"
271

625"
270"

672"
267"

637
264

615
262

652
265

569
267

595
271

644

(thousands
122.3
149.0

120.0
147.0

121.2
144.7

113.0
146.0

124.5
146.6

118.0
137.7

123.5
145.3

119.5
142.2

125.0
148.4

128.9
147.2

125.0
144.0

118.0
139.9

126.7
146.3

3,211

3,219

3,520

3,450"

3,320"

3,380"

3,340"

3,380"

3,710

3,860

4,040

3,780

3,460

95.2
118.3

99.7
127.4

103.6
130.8

103.1"
131.0"

105.5"
133.9"

102.8"
132.2

105.0"
132.4"

103.5"
131.0

103.4
129.3

102.7
128.8

104.2
131.0

103.1
129.4

103.6
129.6

EXISTING U N I T S ( o n e - f a m i l y )

18 Number sold
Price of units sold
of dollars)
19 Median
20 Average

(thousands

Value of new construction (millions of dollars) 3

CONSTRUCTION

21 Total put in place

442,066

400,955

426,657

427,980

426,730

425,700

419,598

429,291

432,250

436,140

439,948

437,897

438,384

22 Private
73
Residential
24
Nonresidential, total
25
Industrial buildings
26
Commercial buildings
27
Other buildings
28
Public utilities and other

334,153
182,856
151,297
23,849
62,866
21,591
42,991

290,707
157,837
132,870
22,281
48,482
20,797
41,310

308,246
184,127
124,119
20,173
40,417
21,514
42,015

306,999
182,892
124,107
21,008
39,643
21,993
41,463

312,182
184,630
127,552
20,285
43,310
21,991
41,966

305,848
181,162
124,686
20,594
39,988
22,228
41,876

301,984
184,201
117,783
17,862
37,010
21,518
41,393

308,813
186,343
122,470
19,019
39,333
22,068
42,050

315,855
192,553
123,302
18,646
40,195
21,545
42,916

317,451
194,801
122,650
19,083
40,379
21,542
41,646

320,720
198,538
122,182
18,721
38,326
21,370
43,765

324,415
201,198
123,217
18,661
39,331
20,952
44,273

324,133
200,650
123,483
18,567
39,173
22,646
43,097

29 Public
30
Military
31
Highway
Conservation and d e v e l o p m e n t . . .
32
Other
33

107,909
2,664
31,154
4,607
69,484

110,247
1,837
29,918
4,958
73,534

118,408
2,484
32,759
5,978
77,187

120,981
2,668
32,633
5,767
79,913

114,548
2,503
31,496
5,889
74,660

119,853
2,372
32,682
5,772
79,027

117,614
2,438
33,451
5,382
76,343

120,478
3,172
34,651
6,364
76,291

116,395
2,438
32,056
5,630
76,271

118,689
2,612
34,636
6,210
75,231

119,229
2,483
31,237
8,237
77,272

113,481
2,482
29,694
5,720
75,585

114,251
2,424
30,770
6,678
74,379

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 Census Bureau in its
estimating techniques. For a description of these changes, see
Construction
Reports (C-30-76-5), issued by the Census Bureau in July 1976.




SOURCE. Census Bureau 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 1993
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

1992
1992
Mar.

Change from 1 month earlier

1993

Index
level,
Mar.
1993 1

19931

1992

1993
Mar.
June

Sept.

Dec.

Mar.

Nov.

Dec.

Jan.

Feb.

Mar.

C O N S U M E R PRICES 2

(1982-84=100)
1 All items

3.2

3.1

2.6

2.6

3.2

4.0

.2

.1

.5

.3

.1

143.6

2 Food
3 Energy items
4 All items less food and energy
5
Commodities
6
Services

1.7
-.8
3.9
3.1
4.2

1.4
3.6
3.4
2.6
3.7

-1.2
8.6
2.8
2.5
3.1

3.2
1.2
2.5
1.8
2.9

1.4
1.9
3.8
1.5
4.7

2.6
3.1
4.3
4.6
4.4

.1
.2
.3
.1
.4

.3
-.2
.2
-.1
.3

.4
.5
.5
.5
.4

.1
-.4
.5
.5
.4

.1
.7
.1
.1
.2

140.1
102.5
151.4
135.5
160.5

1.1
-1.5
-1.5
2.9
2.1

2.0
1.1
4.3
2.0
1.6

3.3
-.6
16.6
2.4
.9

1.3
4.3
-3.5
1.5
1.2

-.3
2.9
-9.8
.9
.3

3.9
-1.9
16.6
3.2
3.8

-,2r
-,6r
- 1.3r
.2
,2r

1.2r
-2.3
.1

.2
-.9
.9
.4
.3

.4
-.1
1.7
.3
.5

.4
.5
1.3
.1
.2

124.6
124.6
77.6
139.4
130.9

-.6

2.2
1.8

5.0
1.7

.7

1.3

-1.4
-.3

4.6
4.3

-,2r
.or

.R

-.2

.2

.3
.3

.5
.5

.3
.2

116.2
123.8

-2.5
-6.2
-3.1

8.0

-4.8
19.8
2.2

4.3
-20.2
1.5

1.9
-6.9
25.4

-,5r

1.0
-5.5r
2.1 r

.3
.0
3.1

.1
-2.5
2.2

.1
.8
.4

138.4

PRODUCER PRICES

(1982=100)
7

8
9
10
11

Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment

Intermediate
materials
12 Excluding foods and feeds
13
Excluding energy
Crude materials
14 Foods
15 Energy
16 Other

.9

2.7

7.8

51.5
4.8

1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a
rental-equivalence measure of homeownership.




-.9
L.R

.(F

.R

SOURCE. Bureau of Labor Statistics.

108.2
77.8

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
1992

1991
Account

1990

1991

1992r
Q4

Ql

Q2

Q4r

Q3

GROSS DOMESTIC P R O D U C T

5,522.2

5,677.5

5,950.7

5,753.3

5,840.2

5,902.2

5,978.5

6,081.8

3,748.4
464.3
1,224.5
2,059.7

3,887.7
446.1
1,251.5
2,190.1

4,095.8
480.4
1,290.7
2,324.7

3,942.9
450.4
1,251.4
2,241.1

4,022.8
469.4
1,274.1
2,279.3

4,057.1
470.6
1,277.5
2,309.0

4,108.7
482.5
1,292.8
2,333.3

4,194.8
499.1
1,318.6
2,377.1

799.5
793.2
577.6
201.1
376.5
215.6

721.1
731.3
541.1
180.1
360.9
190.3

770.4
766.0
548.2
168.4
379.9
217.7

736.1
726.9
528.7
169.7
358.9
198.2

722.4
738.2
531.0
170.1
360.8
207.2

773.2
765.1
550.3
170.3
380.0
214.8

781.6
766.6
549.6
166.1
383.5
217.0

804.3
794.0
562.1
167.0
395.1
231.9

6.3
3.3

-10.2
-10.3

4.4
2.2

9.2
14.5

-15.8
-13.3

8.1
6.4

15.0
9.7

10.3
6.2

-68.9
557.0
625.9

-21.8
598.2
620.0

-30.4
636.3
666.7

-16.0
622.9
638.9

-8.1
628.1
636.2

-37.1
625.4
662.5

-36.0
639.0
675.0

-40.5
652.7
693.2

1,043.2
426.4
616.8

1,090.5
447.3
643.2

1,114.9
449.1
665.8

1,090.3
440.8
649.5

1,103.1
445.0
658.0

1,109.1
444.8
664.3

1,124.2
455.2
669.0

1,123.3
451.6
671.7

5,515.9
2,160.1
920.6
1,239.5
2,846.4
509.4

5,687.7
2,192.8
907.6
1,285.1
3,030.3
464.7

5,946.3
2,260.3
943.9
1,316.4
3,197.1
488.8

5,744.2
2,188.4
905.7
1,282.7
3,090.3
465.5

5,855.9
2,233.6
923.6
1,310.0
3,142.2
480.1

5,894.1
2,233.2
932.3
1,300.8
3,173.4
487.6

5,963.5
2,258.4
943.8
1,314.6
3,217.8
487.3

6,071.5
2,316.1
975.8
1,340.3
3,255.1
500.3

6.3
-.9
7.2

-10.2
-19.3
9.0

4.4
-3.5
7.9

9.2
-8.1
17.3

-15.8
-19.3
3.5

8.1
9.5
-1.4

15.0
2.7
12.3

10.3
-6.9
17.2

4,877.5

4,821.0

4,922.6

4,838.5

4,873.7

4,892.4

4,933.7

4,990.8

30

4,468.3

4,544.2

4,744.1

4,599.1

4,679.4

4,716.5

4,719.6

4,860.7

31 Compensation of employees

3,291.2
2,742.9
514.8
2,228.0
548.4
277.4
271.0

3,390.8
2,812.2
543.5
2,268.7
578.7
290.4
288.3

3,525.2
2,916.6
562.5
2,354.1
608.6
302.9
305.7

3,433.8
2,845.0
546.4
2,298.6
588.7
293.7
295.0

3,476.3
2,877.6
554.6
2,323.0
598.7
299.4
299.2

3,506.3
2,901.3
561.4
2,339.9
605.0
301.5
303.6

3,534.3
2,923.5
564.3
2,359.1
610.8
302.9
307.9

3,583.7
2,963.9
569.6
2,394.3
619.8
307.6
312.2

38 Proprietors' income 1
39 Business and professional
40 Farm 1

366.9
325.2
41.7

368.0
332.2
35.8

404.5
364.9
39.5

377.9
340.0
37.9

393.6
353.6
40.1

398.4
359.9
38.5

397.4
365.9
31.5

428.4
380.4
48.1

41 Rental income of persons 2

-12.3

-10.4

4.7

-6.6

-4.5

3.3

6.4

13.6

4? Corporate profits 1
43 Profits before tax 3
44 Inventory valuation adjustment
45 Capital consumption adjustment

361.7
355.4
-14.2
20.5

346.3
334.7
3.1
8.4

394.5
372.3
-7.4
29.5

347.1
332.3
14.1

384.0
366.1
-5.4
23.3

388.4
376.8
-15.5
27.0

374.1
354.1
-9.7
29.7

431.3
392.2
1.0
38.1

46 Net interest

460.7

449.5

415.2

446.9

430.0

420.0

407.3

403.6

1
By source
7 Personal consumption expenditures

3
4
5

Nondurable goods

6 Gross private domestic investment
7 Fixed investment
Nonresidential
8
9
Structures
10
Producers' durable equipment
Residential structures
11
12
13

Change in business inventories
Nonfarm

14 Net exports of goods and services
15

16

Imports
Government purchases of goods and services

17

18
19

State and local

By major type of product
7 0 Final sales, total
71

??
73

74
25

Services
Structures

2.6 Change in business inventories
27 Durable goods
28 Nondurable goods
MEMO

29 Total GDP in 1987 dollars
N A T I O N A L INCOME

37

33
34
35
36
37

Wages and salaries
Government and government enterprises

Other
Supplement to wages and salaries
Employer contributions for social insurance
Other labor income

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




.7

3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey of Current
Business.

A52
2.17

Domestic Nonfinancial Statistics • June 1993
PERSONAL INCOME A N D SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1992

1991
1990

Account

1991

1992r
Q4

Ql

Q2

Q4R

Q3

PERSONAL INCOME A N D S A V I N G

1 Total personal income

4,664.2

4,828.3

5,058.1

4,907.2

4,980.5

5,028.9

5,062.0

5,160.9

2 Wage and salary disbursements
3
Commodity-producing industries

2,742.8
745.6
556.1
634.6
847.8
514.8

2,812.2
737.4
556.9
647.4
883.9
543.6

2,918.1
743.2
565.7
666.8
945.5
562.5

2,845.0
741.5
563.9
652.9
904.3
546.4

2,877.6
736.8
559.9
660.9
925.3
554.6

2,901.3
743.1
564.7
662.9
933.9
561.4

2,923.5
742.4
565.5
667.7
949.1
564.3

2,969.9
750.6
572.8
675.8
973.9
569.6

271.0
366.9
325.2
41.7
-12.3
140.3
694.5
685.8
352.0

288.3
368.0
332.2
35.8
-10.4
137.0
700.6
771.1
382.0

305.7
404.5
364.9
39.5
4.7
139.3
670.2
866.1
414.1

295.0
377.9
340.0
37.9
-6.6
134.3
703.3
799.8
390.6

299.2
393.6
353.6
40.1
-4.5
133.9
684.8
842.7
405.7

303.6
398.4
359.9
38.5
3.3
136.6
675.2
859.7
412.1

307.9
397.4
365.9
31.5
6.4
141.0
663.2
874.1
417.1

312.2
428.4
380.4
48.1
13.6
145.8
657.8
888.0
421.6

7

Government and government enterprises

9 Proprietors' income 1
10
Business and professional 1
11
Farm 1
12 Rental income of persons 2
15 Transfer payments
16
Old-age survivors, disability, and health insurance benefits
17

...

LESS: Personal contributions for social insurance

18 EQUALS: Personal income

224.8

238.4

250.6

241.5

246.8

249.3

251.5

254.8

4,664.2

4,828.3

5,058.1

4,907.2

4,980.5

5,028.9

5,062.0

5,160.9

621.3

618.7

627.3

622.3

619.6

617.1

628.8

643.6

20 EQUALS: Disposable personal income

4,042.9

4,209.6

4,430.8

4,284.9

4,360.9

4,411.8

4,433.2

4,517.3

21

LESS: Personal outlays

3,867.3

4,009.9

4,218.1

4,065.5

4,146.3

4,179.5

4,229.9

4,316.9

22 EQUALS: Personal saving

175.6

199.6

212.6

219.4

214.6

232.3

203.3

200.4

19,513.0
13,043.6
14,068.0

19,077.1
12,824.1
13,886.0

19,271.4
12,973.9
14,035.0

19,066.0
12,802.6
13,913.0

19,158.5
12,930.2
14,017.0

19,181.8
12,893.3
14,021.0

19,288.4
12,973.3
13,998.0

19,456.3
13,098.4
14,105.0

4.3

4.7

4.8

5.1

4.9

5.3

4.6

4.4

19

LESS: Personal tax and nontax payments

MEMO

Per capita (19S7

dollars)

24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS S A V I N G

27 Gross saving

718.0

708.2

687.0

698.2

677.5

682.9

696.9

690.7

28 Gross private saving

854.1

901.5

969.2

934.8

950.1

968.1

992.1

966.6

29 Personal saving
30 Undistributed corporate profits
31 Corporate inventory valuation adjustment

175.6
75.7
-14.2

199.6
75.8
3.1

212.6
104.7
-7.4

219.4
78.3
.7

214.6
104.0
-5.4

232.3
97.7
-15.5

203.3
91.2
-9.7

200.4
125.7
1.0

368.3
234.6

383.0
243.1

394.8
258.6

386.3
250.7

386.1
245.3

391.2
247.0

407.2
290.4

394.7
251.8

Federal
State and local

-136.1
-166.2
30.1

-193.3
-210.4
17.1

-282.2
-297.8
15.5

-236.6
-258.7
22.0

-272.6
-289.2
16.6

-285.2
-302.9
17.7

-295.2
-304.4
9.2

-276.0
-294.6
18.6

37 Gross investment

723.4

730.1

720.4

714.6

706.5

713.8

732.0

729.5

38 Gross private domestic
39 Net foreign

799.5
-76.1

721.1
9.0

770.4
-49.9

736.1
-21.5

722.4
-16.0

773.2
-59.4

781.6
-49.6

804.3
-74.7

5.4

21.9

33.4

16.4

29.0

30.9

35.1

38.9

Capital consumption

allowances

33 Noncorporate
34 Government surplus, or deficit ( - ) , national income and
35
36

40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




SOURCE. U.S. Department of Commerce, Survey of Current

Business.

Summary Statistics
3.10

U.S. INTERNATIONAL TRANSACTIONS

A53

Summary

Millions of dollars; quarterly data seasonally adjusted except as noted 1
1992

1991
1990

1992

1991

Q4

1 Balance on current a c c o u n t . .
2
Merchandise trade balance
3
Merchandise exports
4
Merchandise imports
5
Military transactions, net
6
Other service transactions, net
7
Investmentincome.net
8
U.S. government grants
9
U.S. government pensions and other transfers
10
Private remittances and other transfers
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )

-90,428
-108,853
388,705
-497,558
-7,818
39,873
19,287
-17,597
-2,945
-12,374

-3,682
-73,436
415,962
-489,398
-5,524
50,821
16,429
24,487
-3,462
-12,996

Ql

Q2

Q3R

Q4P

-62,448
-96,275
439,272
-535,547
-2,503
57,628
10,062
-13,832
-3,736
-13,793

-7,218
-18,539
107,851
-126,390
-540
13,676
2,458
78
-1,080
-3,271

—6,374r
-17,663 r
107,634r
-125,297 r
-624
14,450*
4,394 r
-2,620
-8301
-3,481 r

-18,279*
-25,004*
107,148*
-132,152*
-623
13,242*
1,851*
-3,085
-1,119*
-3,541*

-15,771
-27,634
110,119
-137,753
-579
16,315
2,977
-2,521
-941
-3,388

-22,020
-25,974
114,371
-140,345
-677
13,625
839
-5,605
-846
-3,382

2,304

3,397

-959

-437

-38

-277

-301

-344

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

-2,158
0
-192
731
-2,697

5,763
0
-177
-367
6,307

3,901
0
2,316
-2,692
4,277

1,225
0
-23
17
1,232

-1,057
0
-172
111
-9%

1,464
0
-168
1
1,631

1,952
0
-173
-118
2,243

1,542
0
2,829
-2,685
1,398

17 Change in U.S. private assets abroad (increase, - )
18
Bank-reported claims 3
19
Nonbank-reported claims
20
U.S. purchases of foreign securities, net
21
U.S. direct investments abroad, net

-56,467
7,469
-2,477
-28,765
-32,694

-71,379
-4,753
5,526
-45,017
-27,135

-47,843
32,372
3,742
-48,646
-35,311

-44,947
-23,219
1,269
-11,305
-11,692

—3,614r
15,859
4,764
-8,703
-15,534 r

-1,610*

-22,892
-1,274
-4,159
-13,934
-3,525

-19,726
6,844

22 Change in foreign official assets in United States (increase, +) . .
23
U.S. Treasury securities
24
Other U.S. government obligations
25
Other U.S. government liabilities4
26
Other U.S. liabilities reported by U.S. banks 3
27
Other foreign official assets 5

33,908
29,576
667
1,866
3,385
-1,586

18,407
15,815
1,301

40,307
18,333
4,025
2,469
16,168

12,819
12,619
1,075
-344
-914
383

21,192
14,909
540
%
5,534
113

20,895
11,126
1,699
598
7,547
-75

-7,269
-323
912
929
-7,787

5,489
-7,379
874
846
10,874
274

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

65,471
16,370
4,906
-2,534
1,592
45,137

80,093
14,667
4,413
35,077
29,884
-3,948

36,110
23,465
725
1,408
4,832
5,680

-2,577 r
-4,474
1,942
-828
4,551
—3,768r

26,571*
-551
1,141
10,286
10,333
5,362*

29,246
22,905
1,330
4,870
2,693
-2,552

26,854
-3,213

34 Allocation of special drawing rights
35 Discrepancy
36
Due to seasonal adjustment
37
Before seasonal adjustment

0

0

0

47,370

-1,078

-13,051

47,370

-13,052

0
-7,532 r
4,901*
-12,433

0
-28,764*
1,296*
-30,060

0
15,035
-6,640
21,675

0
8,205
439
7,767

— I,078

0
2,447
613
1,835

1,600
-1,668
1,359
48,573
-13,678
-405
16,241
34,918
11,498

10,943
3,137

-8,221
-7,469*

-1,000

-17,788
-8,782

20,749
12,307
-2,989

MEMO

Changes in official assets
38 U.S. official reserve assets (increase, - )
39 Foreign official assets in United States, excluding line 25
(increase, + )
40 Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22)

-2,158

5,763

3,901

1,225

-1,057

1,464

1,952

1,542

32,042

16,807

37,838

13,163

21,096

20,297

-8,198

4,643

1,707

-5,604

5,402

1,023

2,459

-2,125

3,062

2,006

1. Seasonal factors not calculated for lines 12-16, 18-20, 22-34, and 38-40.
2. Data are on an international accounts basis. The data differ from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise trade data and are included in line 6.
3. Reporting banks include all types of depository institution as well as some
brokers and dealers.




4. Associated primarily with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
SOURCE. U.S. Department of Commerce, Survey of Current Business.

A54
3.11

International Statistics • June 1993
U . S . FOREIGN TRADE 1
Millions of dollars; monthly data seasonally adjusted
1992
Item

1990

1991

1993

1992
Aug.

1 Exports of domestic and foreign
merchandise, excluding grant-aid
shipments
2 General imports including merchandise
for immediate consumption
plus entries into bonded
warehouses

393,592

421,730

448,115

Oct.

Nov.

Dec. r

Jan. r

Feb.P

35,799

37,882

39,072

38,187

39,671

37,148

37,181

495,311

487,129

532,380

44,974

46,551

46,324

45,535

46,562

44,306

44,378

-101,718

3 Trade balance

-65,399

-84,265

-9,174

-8,669

-7,252

-7,348

-6,891

-7,159

-7,197

1. Government and nongovernment shipments of merchandise between foreign
countries and the fifty states, including the District of Columbia, Puerto Rico, the
U . S . Virgin Islands, and U . S . Foreign Trade Zones. Data exclude (1) shipments
among the United States, Puerto Rico, the U.S. Virgin Islands, and other U.S.
affiliated insular areas, (2) shipments to U.S. Armed Forces and diplomatic
missions abroad for their own use, (3) U . S . goods, returned to the United States by
its Armed Forces, (4) personal and household effects of travelers, and (5)
in-transit shipments. Data reflect the total arrival of merchandise from foreign
countries that immediately entered consumption channels, warehouses, or U.S.
Foreign Trade Zones (general imports). Import data are Customs value; export
data are F . A . S . value. Beginning in 1990, data for U.S. exports to Canada are
derived from import data compiled by Canada; similarly, in Canadian statistics,
Canadian exports to the United States are derived from import data compiled by

3.12

Sept.

the United States. Since Jan. 1, 1987, merchandise trade data have been released
forty-five days after the end of the month; the previous month is revised to reflect
late documents.
Data in this table differ from figures for merchandise trade shown in the U.S.
balance of payments accounts (table 3.10, lines 2 to 4) primarily for reasons of
coverage. For both exports and imports a large part of the difference is the
treatment of military sales and purchases. The militap' sales to foreigners
(exports) and purchases from foreigners (imports) that are included in this table as
merchandise trade are shifted, in the balance of payments accounts, from
"merchandise trade" into the broader category "military transactions."
SOURCE. FT900, U.S. Merchandise Trade, (U.S. Department of Commerce,
Bureau of the Census).

U.S. RESERVE ASSETS
Millions of dollars, end of period
1992
Asset

1989

1990

1993

1991
Sept.

Nov.

Dec.

Jan.

Feb.

Mar."

74,609

1 Total
2 Gold stock, including Exchange
Stabilization Fund 1
3 Special drawing rights2'3
4 Reserve position in International
Monetary Fund 2
5 Foreign currencies

83,316

77,719

78,527

74,207

72,231

71,323

71,962

72,847

74,378

11,059
9,951

11,058
10,989

11,057
11,240

11,059
12,111

11,060
11,561

11,059
11,495

11,056
8,503

11,055
8,546

11,055
8,651

11,054
8,787

9,048
44,551

9,076
52,193

9,488
45,934

9,778
45,579

9,261
42,325

8,781
40,896

11,759
40,005

12,079
40,282

12,021
41,120

12,184
42,353

1. Gold held "under earmark" at Federal Reserve Banks for foreign and
international accounts is not included in the gold stock of the United States; see
table 3.13, line 3. Gold stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted
by the International Monetary Fund (IMF) in July 1974. Values are based on a
weighted average of exchange rates for the currencies of member countries. From
July 1974 through December 1980, 16 currencies were used; since January 1981,

3.13

Oct.

5 currencies have been used. U.S. SDR holdings and reserve positions in the IMF
also have been valued on this basis since July 1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1
of the year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—
$710 million; 1979—$1,139 million; 1980—$1,152 million; 1981—$1,093 million;
plus net transactions in SDRs.
4. Valued at current market exchange rates.

FOREIGN OFFICIAL A S S E T S H E L D AT F E D E R A L R E S E R V E B A N K S 1
Millions of dollars, end of period
1992
Asset

1989

1990

Sept.
1 Deposits
Held in custody
2 U . S . Treasury securities
3 Earmarked gold

Oct.

Nov.

Dec.

Jan.

Feb.

Mar."

589

369

968

546

415

229

205

325

296

317

224,911
13,456

278,499
13,387

281,107
13,303

306,971
13,241

311,538
13,201

308,959
13,192

314,481
13,686

324,356
13,077

329,183
13,074

326,486
12,989

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 at face value in dollars or foreign currencies.




1993

1991

3. Held for foreign and international accounts and valued at $42.22 per fine
troy ounce; not included in the gold stock of the United States.

Summary Statistics
3.14

FOREIGN BRANCHES OF U.S. BANKS

A55

Balance Sheet Data 1

Millions of dollars, end of period
1993

1992

Account

1989

1990

1991

Aug. r

Sept. r

Nov.

Oct/

Dec/

Jan.

Feb.

All foreign countries

ASSETS

Total payable in any currency

545,366

556,925

548,901

544,887

545,388

554,253

566,721 r

542,286

543,760

554,280

7 Claims on United States
3
Parent bank
Other banks in United States
4
5
Nonbanks
6 Claims on foreigners
7
Other branches of parent bank
8
Banks
9
Public borrowers
10
Nonbank foreigners
11 Other assets

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

176,301
137,509
12,884
25,908
303,934
111,729
81,970
18,652
91,583
68,666

163,103
128,267
9,181
25,655
321,707
116,604
87,347
20,450
97,306
60,077

167,419
134,119
8,083
25,217
320,111
118,952
83,756
20,511
%,892
57,858

174,986
138,940
10,683
25,363
319,139
115,521
86,560
20,809
%,249
60,128

177,443R
141,542R
25,882
328,592R
125,143
86,086R
20,378
%,985
60,686R

166,798
132,275
9,703
24,820
318,071
123,256
82,190
20,756
91,869
57,417

169,278
134,217
9,571
25,490
314,737
116,325
81,811
19,984
%,617
59,745

169,765
136,253
9,249
24,263
320,407
117,862
84,439
19,822
98,284
64,108

1

lO.O^

12

Total payable in U.S. dollars

382,498

379,479

363,941

341,109

347,181

364,080

374,398 r

365,800

353,564

361,251

N
14
15
16
17
18
19
20
71
22

Claims on United States
Parent bank
Other banks in United States
Nonbanks
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers
Nonbank foreigners
Other assets

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

169,662
133,476
12,025
24,161
167,010
78,114
41,635
13,685
33,576
27,269

157,469
124,737
8,876
23,856
161,663
70,689
40,350
13,686
36,938
21,977

161,463
130,446
7,476
23,541
166,762
72,348
42,274
13,990
38,150
18,956

169,290
136,156
9,360
23,774
173,457
76,098
45,436
13,966
37,957
21,333

171,938R
138,424R
9,291R
24,223
182,347R
83,902
45,931R
13,995
38,519
20,113R

162,125
129,329
9,266
23,530
183,555
83,117
47,250
14,313
38,875
20,120

164,681
131,553
9,214
23,914
171,041
77,606
41,450
13,883
38,102
17,842

165,234
133,733
8,704
22,797
177,265
80,220
43,067
13,710
40,268
18,752

United Kingdom

23

Total payable in any currency

161,947

184,818

175,599

165,754

161,966

168,063

168,333

165,591

164,360

165,132

24
25
7.6
28
29
30
31
37
33

Claims on United States
Parent bank
Other banks in United States
Nonbanks
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers
Nonbank foreigners
Other assets

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

35,257
31,931
1,267
2,059
109,692
35,735
36,394
3,306
34,257
30,650

37,511
34,593
744
2,174
108,895
37,732
37,711
3,046
30,406
19,348

35,891
32,929
1,067
1,895
107,675
38,894
36,039
3,371
29,371
18,400

39,558
36,413
1,400
1,745
109,919
40,594
36,701
3,692
28,932
18,586

38,358
35,027
925
2,406
113,193
45,092
34,559
3,370
30,172
16,782

36,403
33,460
1,298
1,645
111,623
46,165
33,399
3,329
28,730
17,565

37,609
34,290
886
2,433
108,362
42,894
33,513
3,059
28,8%
18,389

32,380
30,240
783
1,357
112,959
43,856
36,601
2,542
29,960
19,793

34

Total payable in U.S. dollars

103,208

116,762

105,974

99,661

100,664

107,342

109,479

109,449

101,209

99,755

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

32,418
30,370
822
1,226
58,791
28,667
15,219
2,853
12,052
14,765

34,948
32,786
625
1,537
55,812
26,825
15,565
2,353
11,069
8,901

33,618
31,578
711
1,329
59,338
28,225
16,800
2,604
11,709
7,708

37,359
35,299
769
1,291
61,658
30,217
17,269
2,515
11,657
8,325

35,956
33,765
438
1,753
65,164
34,434
16,848
2,501
11,381

34,508
32,186
1,022
1,300
66,335
34,124
17,089
2,349
12,773

35,481
33,070
684
1,727
59,339
30,823
14,150
2,154
12,212

30,390
29,020
428
942
63,234
31,395
16,800
1,883
13,156

8,359

8,606

6,389

6,131

71

35 Claims on United States
16
Parent bank
Other banks in United States
37
38
Nonbanks
3 9 Claims on foreigners
40
Other branches of parent bank
41
Banks
42
Public borrowers
43
Nonbank foreigners
4 4 Other assets

Bahamas and Cayman Islands
45 Total payable in any currency

176,006

162,316

168,326

144,327

145,786

154,293

156,176 r

147,422

144,894

151,175

46 Claims on United States
47
Parent bank
48
Other banks in United States
49
Nonbanks
50 Claims on foreigners
51
Other branches of parent bank
57
Banks
53
Public borrowers
54
Nonbank foreigners
55 Other assets

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

115,244
81,520
10,907
22,817
45,229
11,098
20,174
7,161
6,7%
7,853

94,659
64,454
8,060
22,145
41,486
8,5%
17,570
7,152
8,168
8,182

96,911
68,309
6,562
22,040
41,884
7,753
18,412
7,128
8,591
6,991

102,726
72,207
8,199
22,320
42,844
7,287
19,840
7,146
8,571
8,723

104,245 r
73,856 r
8,282 r
22,107
44,156 r
8,238
20,122 r
7,209
8,587
7,775 r

%,280
66,608
7,828
21,844
44,509
7,293
21,212
7,786
8,218
6,633

%,976
67,219
7,%2
21,795
41,185
7,041
18,464
7,564
8,116
6,733

102,836
73,825
7,892
21,119
40,821
7,311
17,440
7,422
8,648
7,518

56 Total payable in U.S. dollars

170,780

158,390

163,771

138,584

140,104

149,304

151,436 r

142,861

140,332

146,809

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
3.14

International Statistics • June 1993
FOREIGN BRANCHES OF U.S. BANKS

Balance Sheet Data 1 —Continued
1992

Aug. r

Sept. r

1993

Oct. r

Nov.

Dec.'

Jan.

Feb.

All foreign countries

LIABILITIES

57

Total payable in any currency

545,366

556,925

548,901

544,887

545,388

554,253

566,721 r

542,286

543,760

554,280

58
59
60
61
62

Negotiable certificates of deposit (CDs) . .
To United States
Parent bank
Other banks in United States
Nonbanks

23,500
197,239
138,412
11,704
47,123

18,060
189,412
138,748
7,463
43,201

16,284
198,121
136,431
13,260
48,430

14,246
179,476
126,976
10,971
41,529

12,389
185,380
127,573
12,408
45,399

12,056
188,979
132,999
12,281
43,699

12,342
188,004R
131,806R
13,392R
42,806R

10,032
189,332
134,227
12,182
42,923

12,320
176,112
122,512
12,829
40,771

11,872
184,042
124,010
12,373
47,659

63
64
65
66
67
68

To foreigners
Other branches of parent bank
Banks
Official institutions
Nonbank foreigners
Other liabilities

296,850
119,591
76,452
16,750
84,057
27,777

311,668
139,113
58,986
14,791
98,778
37,785

288,254
112,033
63,097
15,596
97,528
46,242

314,823
120,509
68,522
18,237
107,555
36,342

312,390
120,714
68,493
16,720
106,463
35,229

315,400
118,001
70,439
20,572
106,388
37,818

330,314
126,018
74,536
20,645
109,115
36,061

309,704
125,160
62,189
19,731
102,624
33,218

321,052
120,178
67,843
23,655
109,376
34,276

319,638
119,601
70,056
21,469
108,512
38,728

69

Total payable in U.S. dollars

396,613

383,522

370,561

346,223

346,581

364,969

372,320'

368,212

353,411

363,285

70
71
72
73
74

Negotiable CDs
To United States
Parent bank
Other banks in United States
Nonbanks

19,619
187,286
132,563
10,519
44,204

14,094
175,654
130,510
6,052
39,092

11,909
185,286
129,669
11,707
43,910

8,755
166,609
119,521
9,866
37,222

7,628
171,086
119,714
11,117
40,255

6,710
176,013
125,491
11,409
39,113

7,503
175,857'
124,658'
12,246R
38,953R

6,238
178,562
127,836
11,512
39,214

7,102
164,595
115,894
11,710
36,991

6,640
172,110
117,115
11,418
43,577

176,460
87,636
30,537
9,873
48,414

179,002
98,128
20,251
7,921
52,702
14,772

158,993
76,601
24,156
10,304
47,932
14,373

157,482
74,060
22,973
10,713
49,736
13,377

155,266
73,208
22,822
9,939
49,297
12,601

165,960
77,197
25,210
12,097
51,456
16,286

175,293
82,957
28,404
12,342
51,590
13,667

171,676
83,700
26,118
12,430
49,428
11,736

169,077
79,144
23,281
14,094
52,558
12,637

170,756
79,594
25,571
14,034
51,557
13,779

To foreigners
Other branches of parent bank
Banks
Official institutions
Nonbank foreigners
80 Other liabilities

75
76
77
78
79

13,248

United Kingdom
161,947

184,818

175,599

165,754

161,966

168,063

168,333

165,591

164,360

165,132

82 Negotiable CDs
83 To United States
Parent bank
84
85
Other banks in United States
86
Nonbanks

20,056

14,256

11,333

8,083

7,266

36,036
29,726
1,256
5,054

39,928
31,806
1,505
6,617

37,720
29,834
1,438
6,448

35,527
27,695
1,632
6,200

35,885
27,528
1,670
6,687

6,064
35,399
27,427
1,341
6,631

5,636
34,532
26,471
1,689
6,372

4,517
39,174
31,100
1,065
7,009

5,774
33,028
25,098
1,742
6,188

5,597
33,092
24,250
1,633
7,209

87 To foreigners
Other branches of parent bank
88
89
Banks
Official institutions
90
Nonbank foreigners
91
92 Other liabilities

92,307
27,397
29,780
8,551
26,579
13,548

108,531
36,709
25,126
8,361
38,335
22,103

98,167
30,054
25,541
9,670
32,902
28,379

104,892
31,234
26,435
10,699
36,524
17,252

101,999
30,756
25,823
9,131
36,289
16,816

109,358
33,696
28,792
11,687
35,183
17,242

113,395
35,560
30,609
11,438
35,788
14,770

107,176
35,983
25,231
12,090
33,872
14,724

111,103
35,376
25,%5
14,188
35,574
14,455

110,514
35,143

81

Total payable in any currency

27,227
12,938

35,206
15,929

108,178

116,094

108,755

98,698

95,652

104,521

105,699

108,170

100,731

101,342

94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States
98
Nonbanks

18,143
33,056
28,812
1,065
3,179

12,710
34,697
29,955
1,156
3,586

10,076
33,003
28,260
1,177
3,566

5,890
30,357
25,873
1,088
3,396

5,689
30,330
25,700
992
3,638

4,213
31,266
26,021
866
4,379

4,494
30,204
25,160
906
4,138

3,894
35,417
29,957
709
4,751

4,770
28,619
23,766
1,063
3,790

4,444
28,874
23,097

99 To foreigners
100
Other branches of parent bank
101
Banks
102
Official institutions
Nonbank foreigners
103
104 Other liabilities

50,517
18,384
12,244
5,454
14,435
6,462

60,014
25,957
9,488
4,692
19,877
8,673

56,626
20,800
11,069
7,156
17,601
9,050

54,381
18,983
9,289
6,956
19,153
8,070

51,916
17,986
9,112
6,156
18,662
7,717

59,938
22,080
10,956
8,142
18,760
9,104

62,899
22,8%
13,050
8,459
18,494
8,102

62,048
22,026
12,540
8,847
18,635
6,811

60,033
20,807
9,740
10,114
19,372
7,309

59,643
20,516
10,359
9,%7

156,176'

147,422

144,894

151,175

71,269"
10,944'
34,374'

1,350
111,749
67,235
10,445
34,069

1,355
108,037
65,009
10,265
32,763

110,616
62,223
10,059
38,334

93 Total payable in U.S. dollars

1,097

4,680

18,801
8,381

Bahamas and Cayman Islands
105 Total payable in any currency

176,006

162,316

168,326

144,327

145,786

154,293

106 Negotiable CDs
107 To United States
Parent bank
108
Other banks in United States
109
110
Nonbanks

678
124,859
75,188
8,883
40,788

646
114,738
74,941
4,526
35,271

1,173
129,872
79,394
10,231
40,247

1,814
106,049
64,190
8,522
33,337

872
109,296
63,057
9,801
36,438

1,394
114,327
69,537
10,303
34,487

47,382
23,414
8,823
1,097
14,048
3,087

44,444
24,715
5,588
622
13,519
2,488

35,200
17,388
5,662
572
11,578
2,081

34,883
17,315
6,244
935
10,389
1,581

34,060
16,071
6,788
984
10,217
1,558

34,896
15,441
6,988
1,058
11,409
3,676

35,411
16,287
7,574
932
10,618
2,239

32,556
15,169
6,422
805
10,160
1,767

33,766
15,411
6,350
932
11,073
1,736

37,690
18,056

171,250

157,132

163,603

139,100

140,298

149,320

151,527'

143,150

140,734

146,875

111 To foreigners
Other branches of parent bank
112
113
Banks
114
Official institutions
115
Nonbank foreigners
1 1 6 Other liabilities
117 Total payable in U.S. dollars




1,939
116,587'

1,142

7,%7
1,036
10,631
1,727

Summary Statistics
3.15

A57

SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1992r
Item

1990

1993

1991
Aug.

Oct.

Nov.

Dec.

Jan. r

Feb.P

344,529

1 Total 1
By type
2 Liabilities reported by banks in the United States
3 U . S . Treasury bills and certificates
U.S. Treasury bonds and notes
5
Nonmarketable
6 U . S . securities other than U.S. Treasury securities
By area
7 Western Europe 1
9 Latin America and Caribbean
10 Asia
12 Other countries®

360,530

407,154

393,687

405,465

394,845

398,672

411,816

412,534

39,880
79,424

38,3%
92,692

52,561
113,307

43,604
113,634

60,933
104,286

54,007
100,702

54,823
104,5%

63,791
111,540

65,753
113,594

202,487
4,491
18,247

203,677
4,858
20,907

213,407
4,476
23,403

208,924
4,505
23,020

211,875
4,473
23,898

211,272
4,503
24,361

210,553
4,532
24,168

207,588
4,563
24,334

203,224
4,592
25,371

167,191
8,671
21,184
138,096
1,434
7,955

168,365
7,460
33,554
139,465
2,092
9,592

196,511
9,990
38,389
151,785
2,860
7,617

186,364
7,027
37,736
151,667
3,360
7,531

194,551
8,111
38,678
153,555
3,481
7,087

184,207
6,381
38,945
154,493
3,779
7,038

188,693
7,920
40,015
152,148
3,565
6,329

196,239
8,411
41,388
156,211
3,705
5,860

198,958
7,886
42,502
154,015
3,866
5,305

1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies; zero coupon bonds are included at
current value.

3.16

Sept.

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 1
Payable in Foreign Currencies
Millions of dollars, end of period
1992r
Item

1989

1990

1991
Mar.

1 Banks' liabilities
2 Banks' claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers
1. Data on claims exclude foreign currencies held by U.S.
authorities.




67,835
65,127
20,491
44,636
3,507
monetary

70,477
66,796
29,672
37,124
6,309

75,129
73,195
26,192
47,003
3,398

June

Sept.

Dec.

68,434
60,424
23,270
37,154
2,%2

71,240
58,262
23,466
34,7%
4,375

84,487
72,003
28,074
43,929
3,987

73,225
62,740
24,186
38,554
4,432

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 1993
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars

Reported by Banks in the United States 1

Millions of dollars, end of period
1992r
Item

1990

1991

1993

1992r
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb."

H O L D E R A N D T Y P E OF LIABILITY

1 Total, all foreigners

759,634

756,066

809,886

769,519

795,856

793,298

799,590

809,886

801,355

813,245

2 Banks' own liabilities
3
Demand deposits
4
Time deposits
5
Other 3
6
Own foreign offices 4

577,229
21,723
168,017
65,822
321,667

575,374
20,321
159,649
66,305
329,099

606,135
21,815
160,541
93,614
330,165

564.732
21,678
143,663
87,631
311,760

587,139
22,479
143,336
84,107
337,217

590,791
21,302
157,488
92,315
319,686

601,073
21,935
156,814
96,294
326,030

606,135
21,815
160,541
93,614
330,165

591,971
21,118
150,310
103,607
316,936

604,524
22,325
147,669
105,048
329,482

182,405
96,796

180,692
110,734

203,751
127,649

204,787
135,744

208,717
134,894

202,507
127,993

198,517
122,480

203,751
127,649

209,384
133,799

208,721
135,399

17,578
68,031

18,664
51,294

21,982
54,120

18,541
50,502

19,349
54,474

20,043
54,471

21,755
54,282

21,982
54,120

22,969
52,616

20,735
52,587

5,918
4,540
36
1,050
3,455

8,981
6,827
43
2,714
4,070

9,350
6,951
46
3,214
3,691

12,914
9,807
21
2,620
7,166

11,285
8,648
24
2,577
6,047

10,727
7,001
73
1,899
5,029

9,915
6,982
58
2,561
4,363

9,350
6,951
46
3,214
3,691

11,086
7,824
39
2,7%
4,989

11,308
8,654
47
2,321
6,286

1,378
364

2,154
1,730

2,399
1,908

3,107
2,654

2,637
1,991

3,726
3,085

2,933
2,371

2,399
1,908

3,262
2,774

2,654
2,348

1,014
0

424
0

486
5

453
0

646
0

641
0

561
1

486
5

488
0

306
0

119,303
34,910
1,924
14,359
18,628

131,088
34,411
2,626
16,504
15,281

159,419
51,058
1,274
17.828
31,956

165,868
49,009
1,676
18,039
29,294

157,238
40,453
1,761
16,125
22,567

165,219
57,225
1,723
19,741
35,761

154,709
50,027
1,492
17,834
30,701

159,419
51,058
1,274
17,828
31,956

175,331
59,576
1,396
18,685
39,495

179,347
61,986
1,763
19,158
41,065

84,393
79,424

96,677
92,692

108,361
104,596

116,859
113,307

116,785
113,634

107,994
104,286

104,682
100,702

108,361
104,596

115,755
111,540

117,361
113,594

4,766
203

3,879
106

3,726
39

3,466
86

2,922
229

3,595
113

3,784
196

3,726
39

4,054
161

3,648
119

540,805
458,470
136,802
10,053
88,541
38,208
321,667

522,265
459,335
130,236
8,648
82,857
38,731
329,099

546,388
475,236
145,071
10,164
90,413
44,494
330,165

501,940
435,244
123,484
9,821
72,820
40,843
311,760

537,936
466,617
129,400
10,443
74,075
44,882
337,217

525,221
454,183
134,497
9,741
85,729
39,027
319,686

543,980
472,949
146,919
10,088
87,690
49,141
326,030

546,388
475,236
145,071
10,164
90,413
44,494
330,165

521,800
453,027
136,091
9,920
80,562
45,609
316,936

529,700
462,202
132,720
10,995
78,228
43,497
329,482

82,335
10,669

62,930
7,471

71,152
11,087

66,696
10,429

71,319
10,905

71,038
10,481

71,031
10,444

71,152
11,087

68,773
9,685

67,498
9,296

5,341
66,325

5,694
49,765

7,568
52,497

6,920
49,347

7,373
53,041

7,325
53,232

7,572
53,015

7,568
52,497

7,708
51,380

6,692
51,510

93,608
79,309
9,711
64,067
5,530

93,732
74,801
9,004
57,574
8,223

94,729
72,890
10,331
49,086
13,473

88,797
70,672
10,160
50,184
10,328

89,397
71,421
10,251
50,559
10,611

92,131
72,382
9,765
50,119
12,498

90,986
71,115
10,297
48,729
12,089

94,729
72,890
10,331
49,086
13,473

93,138
71,544
9,763
48,267
13,514

92,890
71,682
9,520
47,962
14,200

14,299
6,339

18,931
8,841

21,839
10,058

18,125
9,354

17,976
8,364

19,749
10,141

19,871
8,963

21,839
10,058

21,594
9,800

21,208
10,161

6,457
1,503

8,667
1,423

10,202
1,579

7,702
1,069

8,408
1,204

8,482
1,126

9,838
1,070

10,202
1,579

10,719
1,075

10,089
958

7,073

7,456

9,114

7,279

7,452

7,672

7,716

9,114

9,724

9,499

Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
10
Other
7

8
9

11 Nonmonetary international and regional
organizations 8
12
Banks' own liabilities
13
Demand deposits
14
Time deposits
15
Other 3
16
17
18
19

Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments
Other
9

20 Official institutions
21
Banks' own liabilities
22
Demand deposits
23
Time deposits
24
Other 3
25
26
27
28

Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other

29 Banks 1 0
30
Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits
34
Other 3
35
Own foreign offices 4
36
37
38
39

Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other

40 Other foreigners
41
Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other 3
45
46
47
48

Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other
MEMO

49 Negotiable time certificates of deposit in custody for
foreigners

1. Reporting banks include all types of depository institution, 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, the
Inter-American Development Bank, and the Asian Development Bank. Excludes
"holdings of dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."

Nonbank-Reported

Data

3.17—Continued
1993

1992
1990

1991

1992r
Aug.

Sept.

Oct.

Nov.

Dec.*

Jan.

Feb."

AREA

1 Total, all foreigners

759,634

756,066

809,886

769,519*

795,856*

793,298*

799,590*

809,886

801,355

813,245

2 Foreign countries

753,716

747,085

800,536

756,605*

784,571*

782,571*

789,675*

800,536

790,269

801,937

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

249,097
1,193
13,337
937
1,341
31,808
8,619
765
13,541
7,161
1,866
2,184
11,391
2,222
37,238
1,598
100,292
622
9,274
241
3,467

308,391
1,613
20,572
3,060
1,299
41,459
18,631
910
10,041
7,372
3,319
2,465
9,789
2,986
39,440
2,666
112,434
504
25,832
577
3,422

289,957*
1,427
18,455*
1,329
976
29,461*
11,032
934
10,992
10,432*
1,341
2,664
14,904
4,162
40,569
2,021
111,569*
554
22,372*
525
4,238

290,435*
1,456
17,948*
1,760
685
32,158*
14,739
1,069
12,236
10,407*
1,851
2,245
15,589
3,194
39,314
2,087
115,817*
567
12,867
499
3,947

306,547*
1,584
21,183*
1,788
949
34,881*
13,810
872
11,104
8,%2*
1,577
2,258
14,602
5,312*
38,240*
2,524
114,705*
577
27,228
450
3,941

311,875*
1,358
19,662*
1,481
1,144
39,968*
15,401
749
12,494
8,411
2,014
2,255
10,383
4,485
40,791
2,360
117,353*
575
26,691
601
3,699

308,391
1,613
20,572
3,060
1,299
41,459
18,631
910
10,041
7,372
3,319
2,465
9,789
2,986
39,440
2,666
112,434
504
25,832
577
3,422

303,695
1,158
21,255
1,885
1,862
34,285
20,685
815
8,750
8,731
3,550
2,518
14,865
2,%2
41,555
2,533
106,700
506
25,926
436
2,718

304,126
1,937
19,624
2,835
2,049
31,740
18,715
758
10,704
11,778
2,521
2,508
17,163
2,046
39,490
2,862
105,885
512
28,170
447
2,382

3 Europe
4
Austria
5
Belgium and Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
11
Italy
12
Netherlands
13
Norway
14
Portugal
15
Spain
16
Sweden
17
Switzerland
18
Turkey
19
United Kingdom
20
Yugoslavia 11
21
Others in Western Europe 12
22
Russia
Other Eastern Europe 13
23

20,349

21,605

22,746

20,410

22,668

21,378

22,052

22,746

21,467

22,870

25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
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

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

345,529
7,753
100,622
3,178
5,704
163,620
3,283
4,661
2
1,232
1,594
231
19,957
5,592
4,695
1,249
2,0%
13,181
6,879

315,990
9,476
82,213
7,079
5,584
151,934
3,030
4,579
3
987
1,375
371
19,432
5,208
4,190
1,068
1,955
11,370
6,136

311,047*
9,397
82,567*
4,782
5,283
148,212*
3,393
4,711
9
1,214
1,432
272
20,046
4,825
4,303*
1,136*
2,182
10,802
6,481

316,995*
9,065
77,633*
4,275
5,393
159,838*
3,440
4,792
33
1,073
1,416
309
19,650
4,751
4,5%*
1,152*
2,019
11,101
6,459

310,015*
9,387
85,878*
5,889
5,828
143,311*
3,253
4,767
10
1,026
1,376
274
19,216*
4,708
4,116*
1,141*
2,087
11,504
6,244*

309,750*
8,715
86,310*
6,355*
5,235
143,084*
2,925
4,677
11
1,016
1,323
271
19,543
6,101
3,976*
1,047*
2,092
11,003
6,066*

315,990
9,476
82,213
7,079
5,584
151,934
3,030
4,579
3
987
1,375
371
19,432
5,208
4,190
1,068
1,955
11,370
6,136

313,071
10,790
84,557
6,319
5,321
146,875
3,638
4,438
2
945
1,311
294
20,023
4,352
4,013
1,052
1,898
11,106
6,137

319,446
10,606
86,848
6,473
5,551
149,158
3,420
4,417
3
886
1,311
279
21,207
4,871
4,209
1,045
2,098
10,943
6,121

44 Asia
China
45
People's Republic of China
46
Republic of China (Taiwan)
47
Hong Kong
48
India
49
Indonesia
50
Israel
51
Japan
52
Korea (South)
Philippines
53
54
Thailand
55
Middle Eastern oil-exporting countries
56
Other

136,844

120,462

143,359

125,248*

144,793*

134,385*

136,111*

143,359

141,524

144,656

2,421
11,246
12,754
1,233
1,238
2,767
67,076
2,287
1,585
1,443
15,829
16,965

2,626
11,491
14,269
2,418
1,463
2,015
47,069
2,587
2,449
2,252
15,752
16,071

4,343
7,239
18,445
1,3%
1,480
3,775
58,332
3,336
2,275
5,582
21,446
15,710

2,508
10,362
17,798*
1,480
958
2,620
45,693*
3,644
1,920
4,624
18,938
14,703

2,480
9,431*
18,682*
1,372
1,507
2,613
64,606 r
3,673*
2,028
4,517
19,977
13,907

2,582
8,616*
17,542*
1,234
1,260*
2,208
56,101 r
3,529*
2,275
5,082
19,040
14,916*

2,559*
8,750*
16,322*
1,210*
1,217*
3,691
55,356 r
3,698 r
2,223*
5,797
20,266
15,022

4,343
7,239
18,445
1,3%
1,480
3,775
58,332
3,336
2,275
5,582
21,446
15,710

4,103
7,940
17,510
1,323
1,392
3,389
56,007
3,415
2,350
5,722
19,877
18,4%

4,442
7,641
19,363
1,377
1,462
3,394
58,935
3,459
2,746
5,375
20,498
15,964

57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries
63
Other

4,630
1,425
104
228
53
1,110
1,710

4,825
1,621
79
228
31
1,082
1,784

5,881
2,472
76
190
19
1,346
1,778

5,314
2,143
93
275
24
1,090
1,689

5,592
2,243
100
190
14
1,339
1,706

5,843
2,598
98
240
24
1,201
1,682

6,062
2,601
93
214
23
1,402
1,729

5,881
2,472
76
190
19
1,346
1,778

5,913
2,756
88
158
25
1,125
1,761

6,364
3,077
92
319
17
1,135
1,724

64 Other
65
Australia
66
Other

4,444
3,807
637

5,567
4,464
1,103

4,169
3,047
1,122

4,629
3,322
1,307

4,088
2,927
1,161

4,403
2,987
1,416

3,825
2,654
1,171

4,169
3,047
1,122

4,599
3,502
1,097

4,475
3,388
1,087

67 Nonmonetary international and regional
organizations
68
International 16
..
69
Latin American regional 1
70
Other regional 18

5,918
4,390
1,048
479

8,981
6,485
1,181
1,315

9,350
7,434
1,415
501

12,914*
9,701*
2,309*
904

11,285*
8,204*
2,274*
807

10,727*
7,689
2,130*
908

9,915*
6,764*
2,248*
903

9,350
7,434
1,415
501

11,086
7,851
2,327
908

11,308
8,627
1,738
943

24 Canada

11. Beginning December 1992, excludes Bosnia, Croatia, and Slovenia.
12. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23. Beginning December 1992, includes, in addition, all
former parts of the U.S.S.R. (except Russia), and Bosnia, Hercegovina, Croatia,
and Slovenia.
13. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
14. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




15. Comprises Algeria, Gabon, Libya, and Nigeria.
16. Principally the International Bank for Reconstruction and Development.
Excludes "holdings of dollars" of the International Monetary Fund.
17. Principally the Inter-American Development Bank.
18. 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 1993
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1992
Area and country

1990

1991

1993

1992r
Aug.

Sept."

Oct."

Nov."

Dec."

Jan."

Feb."

1 Total, all foreigners

511,543

514,339

495,675

480,163 r

486,071

493,689

490,721

495,675

483,873

492,977

2 Foreign countries

506,750

508,056

490,593

475,774'

481,900

491,217

487,840

490,593

480,773

488,869

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

114,310
327
6,158
686
1,907
15,112
3,371
553
8,242
2,546
669
344
1,881
2,335
4,540
1,063
60,395
825
789
1,970
597

124,085
341
6,404
707
1,419
14,847
4,229
718
9,048
2,497
356
325
2,772
4,929
4,722
962
63,934
569
1,706
3,148
452

119,248'
631'
6,353'
906'
1,081
13,091'
4,728'
601'
9,874'
2,075
707
387
2,590
6,567
3,924'
1,002
58,878'
678
1,351'
3,280
544

117,349
367
7,533
1,012
1,299
15,084
4,075
589
9,485
1,980
639
383
3,304
5,494
3,102
986
56,483
674
1,211
3,199
450

126,170
414
6,980
830
817
16,111
5,629
583
9,752
2,334
666
327
4,642
6,678
3,688
1,177
60,209
668
959
3,190
516

122,143
463
6,423
1,056
1,230
15,718
5,328
598
9,443
3,006
435
330
3,481
5,786
3,591
950
58,991
661
1,019
3,174
460

124,085
341
6,404
707
1,419
14,847
4,229
718
9,048
2,497
356
325
2,772
4,929
4,722
962
63,934
569
1,706
3,148
452

117,252
366
6,473
705
1,275
14,012
5,545
669
8,716
2,927
649
390
2,596
5,340
4,493
1,071
56,202
571
1,607
3,154
491

124,744
535
5,919
785
1,226
14,760
5,370
668
8,466
3,254
750
494
4,158
5,155
4,971
1,041
61,313
567
1,597
3,162
553

3 Europe
4
Austria
Belgium and Luxembourg
5
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
11
Italy
17
Netherlands
13
Norway
14
Portugal
15
Spain
Sweden
16
17
Switzerland
18
Turkey
19
United Kingdom
20
Yugoslavia 2
7.1
Others in Western Europe 3
7?
Russia
23
Other Eastern Europe 4

16,091

15,113

14,185

15,156'

15,862

16,830

15,834

14,185

16,482

14,972

7.5 Latin America and Caribbean
76
Argentina
77
Bahamas
7.8
Bermuda
79
Brazil
30
British West Indies
31
Chile
37,
Colombia
33
Cuba
34
Ecuador
35
Guatemala
36
Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
47
Venezuela
Other
43

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

246,137
5,869
87,138
2,270
11,894
107,846
2,805
2,425
0
1,053
228
158
16,567
1,207
1,560
739
599
2,516
1,263

213,780
4,882
59,532
5,934
10,737
98,738
3,397
2,750
0
884
262
167
15,049
1,379
4,474
730
936
2,525
1,404

217,721'
4,784'
62,673 r
6,302
12,286
99,960'
3,203'
2,322
0
949
186'
150
16,523'
966
2,025'
700"
799
2,583'
1,310

210,580
4,553
58,588
3,567
11,308
99,580
3,300
2,475
0
924
235
160
17,234
1,045
1,937
724
921
2,653
1,376

213,423
4,564
64,853
2,798
11,558
96,906
3,323
2,595
5
936
275
147
16,621
1,080
1,979
713
882
2,700
1,488

217,040
4,605
65,139
6,035
11,583
96,325
3,309
2,698
0
926
255
162
16,495
1,529
2,080
723
877
2,880
1,419

213,780
4,882
59,532
5,934
10,737
98,738
3,397
2,750
0
884
262
167
15,049
1,379
4,474
730
936
2,525
1,404

218,416
4,805
62,831
6,797
10,926
100,926
3,690
2,753
0
853
240
170
15,225
1,736
2,027
735
895
2,414
1,393

210,752
4,859
63,863
2,851
10,506
94,906
3,795
2,819
0
835
257
164
15,988
1,938
2,304
708
844
2,485
1,630

44

138,722

125,262

131,248

116,701"

131,011

127,358

126,143

131,248

121,729

130,913

620
1,952
10,648
655
933
774
90,699
5,766
1,247
1,573
10,749
13,106

747
2,087
9,617
441
952
860
84,807
6,048
1,910
1,713
8,284
7,796

906
2,046
9,673
529
1,189
820
78,609
6,170
2,145
1,867
18,559
8,735

696
1,983
7,986"
528
1,108
920
71,689"
6,201
1,776"
1,691
14,783
7,340

636
2,054
10,057
499
1,089
800
83,527
6,247
2,144
1,795
14,613
7,550

978
1,848
9,095
500
1,112
826
80,253
6,113
2,181
1,764
15,488
7,200

624
1,653
9,287
539
1,135
937
77,676
6,288
2,034
1,873
16,858
7,239

906
2,046
9,673
529
1,189
820
78,609
6,170
2,145
1,867
18,559
8,735

774
1,683
9,145
532
1,323
877
74,593
6,062
1,871
1,7%
17,083
5,990

892
1,585
10,283
550
1,291
809
79,650
6,753
1,842
1,737
17,775
7,746

57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 6
63
Other

5,445
380
513
1,525
16
1,486
1,525

4,928
294
575
1,235
4
1,298
1,522

4,289
194
441
1,041
4
1,004
1,605

4,455
243
483
1,066
4
1,130
1,529

4,333
256
467
1,055
4
1,067
1,484

4,303
229
452
1,036
4
1,056
1,526

4,233
214
443
1,063
4
1,029
1,480

4,289
194
441
1,041
4
1,004
1,605

4,262
171
421
1,069
3
1,067
1,531

4,143
291
403
1,030
3
1,104
1,312

64 Other
65
Australia
66
Other

1,892
1,413
479

2,306
1,665
641

3,006
2,263
743

2,493
1,463
1,030

2,765
1,765
1,000

3,133
1,951
1,182

2,447
1,601
846

3,006
2,263
743

2,632
1,8%
736

3,345
2,552
793

67 Nonmonetary international and regional
organizations 7

4,793

6,283

5,082

4,389

4,171

2,472

2,881

5,082

3,100

4,108

24 Canada

45
46
47
48
49
50
51
57
53
54
55
56

China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries
Other

1. Reporting banks include all types of depository institutions, as well as some
brokers and dealers.
2. Beginning December 1992, excludes Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23. Beginning December 1992, includes, in addition, all
former parts of the U . S . S . R . (except Russia), and Bosnia, Hercegovina, Croatia,
and Slovenia.




4. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. 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
1992r
Claim

1990

1993

1992r

1991

Aug.

Sept.

480,163
32,370
288,020
106,377
56,290
50,087
53,396

486,071
31,504
298.287
105,768
54,315
51,453
50,512

Oct.

Nov.

493,689
32,056
298,056
112,224
60,856
51,368
51,353

490,721
30,955
290,974
112,512
61,999
50,513
56,280

Jan/

1 Total

579,044

579,683

555,659

2 Banks' claims
3
Foreign public borrowers
4
Own foreign offices
5
Unaffiliated foreign banks
6
Deposits
7
Other
8
All other foreigners

511,543
41,900
304,315
117,272
65,253
52,019
48,056

514,339
37,126
318,800
116,602
69,018
47,584
41,811

495,675
31,353
299,677
109,976
61,172
48,804
54,669

67,501
14,375

65,344
15,280

59,984
15,452

62,215
15,348

37,125

31,400

33,687

12,939

13,132

13,180

13,628

8,974

8,682

8,540

8,682

14 Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States . . . .

44,638

40,146 r

33,562

n.a.

13,132

13 Customer liability on acceptances

492,977
30,454
303,726
102,434
51,020
51,414
56,363

31,400

11,792

483,873
33,148
290,862
101,989
53,629
48,360
57,874

59,984
15,452

41,333

Feb.P

36,087

Dec.

9 Claims of banks' domestic c u s t o m e r s 3 . . .
10
Deposits
11
Negotiable and readily transferable
instruments 4
12
Outstanding collections and other
claims

555,659

548.286

495,675
31,353
299,677
109,976
61,172
48,804
54,669

MEMO

33,932

34,522

33,708

33,562

foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of
head office or parent foreign bank.
3. Assets 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 Federal
Reserve
Bulletin, vol. 65 (July 1979), p. 550.

1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are quarterly.
Reporting banks include all types of depository institution, as well as some
brokers and dealers.
2. For U.S. banks, includes amounts due from own foreign branches and
foreign subsidiaries consolidated in 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

3.20

34,692

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
1992
Maturity, by borrower and area

1989

1990

1991
Mar/

1 Total
2
3
4
5
6
7

8
9
10
11
V
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 y e a r
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3

Sept/

Dec.p

238,123

206,903

195,302

194,450

196,768

187,398

195,682

178,346
23,916
154,430
59,776
36,014
23,762

165,985
19,305
146,680
40,918
22,269
18,649

162,573
21,050
141,523
32,729
15,859
16,870

161.566
20,253
141,313
32,884
16,182
16,702

162,433
20,528
141,905
34,335
15,145
19,190

155,254
17,863
137,391
32,144
13,295
18,849

164,131
17,867
146,264
31,551
13,206
18,345

53,913
5,910
53,003
57,755
3,225
4,541

49,184
5,450
49,782
53,258
3,040
5,272

51,835
6,444
43,597
51,059
2,549
7,089

52,911
6,958
48,536
43,645
2,470
7,046

54,997
7,986
49,094
41,409
2,127
6,820

55,986
5,949
45,241
40,824
2,183
5,071

53,952
6,118
50,325
45,862
1,810
6,064

4,121
2,353
45,816
4,172
2,630
684

3,859
3,290
25,774
5,165
2,374
456

3,878
3,595
18,277
4,459
2,335
185

4,315
3,289
18,120
4,714
2,207
239

6,752
3,158
16,827
4,979
2,356
263

6,625
3,227
15,092
4,815
2,107
278

5,360
3,290
15,149
4,977
2,364
411

1. Reporting banks include all kinds of depository institutions besides commerrial banks, as well as some brokers and dealers.




June r

2. Maturity is time remaining to maturity,
3. Includes nonmonetary international and regional organizations.

A61

A62
3.21

International Statistics • June 1993
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1
Billions of dollars, end of period
1990
Area or country

lyoo

1991

1992

i9oy
Dec.

1 Total
2 G-10 countries and Switzerland
3
Belgium and Luxembourg
4
France
5
Germany
6
Italy
7
Netherlands
8
Sweden
9
Switzerland
10
United Kingdom
11
Canada
12
Japan

346.3 r
152.7
9.0
10.5
10.3
6.8
2.7
1.8
5.4
66.2
5.0
34.9

338.8
152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.2

Mar.

June

Sept.

Dec.

Mar.

317.8

325.3

320.4

335.7

341.5

347.8 r

137.2
6.0
11.0
8.3
5.6
4.7
1.9
3.4
68.5
5.8
22.2

r

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

129.8
6.1
10.5
8.3
3.6
3.3
2.5
3.3
59.5
8.2
24.6

134.0
5.8
11.1
9.7
4.5
3.0
2.1
3.9
64.9
5.8
23.2

Sept.

Dec."

357.5 r

344.3 r

345.1

r

3.2
64.8
6.6 r
20.7

8.8 r
8.0
3.3
1.9
4.6
65.8 r
6.7
18.3

137.2 r
6.2
15.5 r
10.9
6.4
3.7
2.2
5.2 r
62.2 r
6.7
18.3

133.2
5.6
15.3
9.3
6.5
2.8
2.3
4.7
61.3
6.5
18.8

130.6
5.3
10.0
8.4
5.4
4.3

June

135.7
6.2

12.0F

13 Other industrialized countries
14
Austria
15
Denmark
16
Finland
17
Greece
18
Norway
19
Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia

21.3 r
1.5
1.1
1.1
1.8
1.8
.4
6.2
1.5
1.7r
2.4
1.8

21. <f
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
1.0r
2.0
1.6

22.9 r
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
1.2r
1.8
1.8

23.5 r
1.4
.9
1.0
2.5
1.5
.6
9.0
1.7
1.2r
1.8
1.9

21.3 r
1.1
1.2
.8
2.4
1.5
.6
7.1
1.9
i.r
1.8
2.0

22. l r
1.0
.9
.6
2.3
1.4
.5
8.3
1.6
1.3r
1.6
2.4

22.8 r
.6
.9
.7
2.6
1.4
.6
8.3
1.4
1.8r
1.9
2.7

21.5 r
.8
.8
.8
2.3
1.5
.5
7.7
1.2
1.5r
1.8
2.3

25.5
.8
1.3
.8
2.8
1.7
.5
10.1
1.5
2.0 r
1.7
2.3

25. r
.8r
1.5
1.0
2.9 r
1.6
.5
9.8
1.5
1.5 r
1.7
2.3

24.1
1.2
.9
.7
3.0
1.2
.4
9.0
1.3
1.7
1.7
2.9

25 OPEC 2
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries

16.6
1.7
7.9
1.7
3.4
1.9

17.1
1.3
7.0
2.0
5.0
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

15.8
.7
5.4
3.0
5.3
1.4

16.2
.7
5.3
3.0
5.9
1.4

15.9
.7
5.4
3.0
5.4
1.4

16.1
.6
5.2
3.0
6.2
1.1

31 Non-OPEC developing countries

85.3

77.5

65.4

66.4

65.0

65.0

64.3

70.6

68.6 r

73.4 r

72.6

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

5.0
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

4.5
10.5
3.7
1.6
16.2
.4
1.9

4.8
9.6
3.6
1.7
15.5
.4
2.1

5.0
10.8
3.9
1.6
18.2
.4
2.2

5.1
10.6
4.0
1.6
16.3r
.4
2.2

6.2
10.8
4.2
1.7
17.1
,4r
2.5

6.6
10.8
4.4
1.8
16.0
.5
2.6

32
33
34
35
36
37
38

Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other

39
40
41
42
43
44
45
46
47

Asia
China
Peoples Republic of China
Republic of China (Taiwan)
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia 3

.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

.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

.3
4.8
3.6
.4
6.9
2.5
3.6
1.7
2.7

.3
4.6
3.8
.4
6.9
2.7
3.r
1.9
s.o 1

.3
5.0
3.6
.4
7.4
3.0
3.6 r
2.2
3.3

.7
5.2
3.2
.4
6.6
3.0
3.6
2.2
3.1

48
49
50
51

Africa
Egypt
Morocco
Zaire
,
Other Africa 3

.4
.9
.0
1.1

.4
.9
.0
1.0

.4
.8
.0
1.0

.4
.8
.0
.8

.4
.7
.0
.8

.4
.7
.0
.8

.4
.7
.0
.7

.3
.7
.0
.7

.5
.7
.0
.6

.3
.6
.0
.9

.2
.6
.0
1.0

52 Eastern Europe
53
Russia
54
Yugoslavia
55
Other

3.6
.7
1.8
1.1

3.5
.7
1.6
1.3

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

2.9
1.4
.8
.6

3.0
1.7
.7
.6

3.1
1.8
.7
.7

3.1
1.9
.6
.6

56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama
62
Lebanon
63
Hong Kong
64
Singapore
65
Other

44.2
11.0
.9
12.9
1.0
2.5
j

36.6
5.5
1.7
9.0
2.3
1.4
j

42.5
2.8
4.4
11.5
7.9
1.4
j

50.0
8.3
4.4
14.1
1.1
1.5
J

48.3
6.8
4.2
14.9
1.4
1.3
|

52.7
6.7
7.1
13.8
3.9
1.3

52.0
11.9
2.3
15.8
1.2
1.3

58.5
14. r
3.9
17.4
1.0
1.3

59.4 r
12.3 r
5.1
18. l r
.8

52.3 r
8.2 r
3.8
15.7 r

i.r

1.8r

55.1
5.7
6.2
19.9
1.1
1.7

6.6
.0

1L6
8.9
.0

12.4
7.2
.0

12! 1
7.7
.0

12^2
7.1
.0

12.'r
8.5
.0

14.V
6.4
.0

15^2
6.8 r
.0

13^8
6.5
.0

66 Miscellaneous and unallocated 6

22.6

39.8

36.4

39.9

44.6

48.2

48.0

48.8 r

36.9 1

40.7

9.7

9^6
6.1
.0

7.0
.0
30.3

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




in

.r

$150 million equivalent in total assets, the threshold now applicable to all
reporting branches.
2. Organization of Petroleum Exporting Countries, shown individually; other
members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar,
Saudi Arabia, and United Arab Emirates); and Bahrain and Oman (not formally
members of OPEC).
3. Excludes Liberia.
4. Includes Canal Zone beginning December 1979.
5. Foreign branch claims only.
6. Includes N e w 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'
Millions of dollars, end of period
1992

1991
Type and area or country

1989

1990r

1991
Dec.

Sept.

1 Total

38,764

46,043

Mar.

June

Sept.

Dec.p

43,156

43,218 r

43,156 r

44,098*

44,176*

45,166*

42,422

r

37,764*
5,392

38,640*
5,458*

37,481*
6,695

36,574*
8,592*

35,422
7,000

2 Payable in dollars
3 Payable in foreign currencies

33,973
4,791

40,786
5,257

37,764
5,392

38,482
4,736

By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies

17,879
14,035
3,844

21,066
16,979
4,087

21,893
17,781
4,112

21,652 r
17,947r
3,705

21,893*
17,781*
4,112

22,255*
18,027*
4,228

21,988*
16,744*
5,244

23,406*
16,468*
6,938*

21,547
15,676
5,871

20,885
8,070
12,815
19,938
947

24,977
10,683
14,294
23,807
1,170

21,263
8,310
12,953
19,983
1,280

21,566
8,313
13,253
20,535
1,031

21,263
8,310
12,953
19,983
1,280

21,843*
8,926*
12,917
20,613*
1,230*

22,188
9,516
12,672
20,737
1,451

21,760
9,409*
12,351*
20,106
1,654

20,875
8,838
12,037
19,746
1,129

11,660
340
258
464
941
541
8,818

10,978
394
975
621
1,081
545
6,357

11,905
217
2,106
682
1,056
408
6,429

12,311r
397
2,164
682
1,050
497
6,589*

11,905*
217
2,106
682
1,056
408
6,429*

12,449*
174
1,997
666
1,025
355
7,338*

13,030*
194
2,324
836
979
490
7,344*

14,070*
256
2,785*
941*
980*
627*
7,680*

12,152
407
1,608
740
606
585
7,516

7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities . . .
10
Payable in dollars
11
Payable in foreign currencies

12
13
14
15
16
17
18

By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

19

Canada

610

229

267

305

267

283

337

320

20
21
22
23
24
25
26

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

1,357
157
17
0
724
6
0

4,153
371
0
0
3,160
5
4

4,325
537
114
6
3,065
7
4

3,883
314
0
6
2,961
6
4

4,325*
537
114
6
3,065*
7
4

4,062*
396
114
8
2,930*
7
4

3,323*
343
114
10
2,182*
8
4

3,345*
220*
115
18
2,291*
12
5

3,480
249
214
19
2,307
11
6

27
28
29

Asia
Japan
Middle East oil-exporting countries 2 . .

4,151
3,299
2

5,295
4,065
5

5,338
4,102
13

5,149 r
4,000*
19

5,338*
4,102*
13

5,366*
4,107*
13

5,209*
4,116*
10

5,581*
4,548*
17

5,384
4,353
19

30

Africa

2
0

2
0

6
4

3
2

6
4

7
6

0
0

5
0

6
0

100

409

52

1

52

88

89

85

27

9,071
175
877
1,392
710
693
2,620

10,310
275
1,218
1,270
844
775
2,792

7,808
248
830
944
709
488
2,310

8,084
225
992
911
751
492
2,217

7,808
248
830
944
709
488
2,310

7,501*
256
678*
880*
574
482
2,445*

7,144
240
659
702
605
400
2,404

6,714*
173
688*
744
601
369
2,262*

1,124

1,261

990

1,011

990

l,095 r

31
32

33
34
35
36
37
38
39
40

Oil-exporting countries
All other 4
Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada

498

6,624
285
660
592
555
398
2,225

1,077

1,085

987

41
42
43
44
45
46
47

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

1,224
41
308
100
27
323
164

1,672
12
538
145
30
475
130

1,352
3
310
219
107
304
94

1,512
14
450
211
46
291
102

1,352
3
310
219
107
304
94

1,701
13
493
230
108
375
168

1,803
8
409
212
73
475
279

1,518
3
338
115
85
322
147

1,520
6
292
197
55
444
127

48
49
50

Asia
Japan
Middle Eastern oil-exporting countries'

7,550
2,914
1,632

9,483
3,651
2,016

9,330
3,720
1,498

8,855
3,363
1,780

9,330
3,720
1,498

9,890*
3,549*
1,591

10,439
3,537
1,778

11,006*
3,909*
1,813

10,643
3,990
1,946

51
52

Africa
Oil-exporting countries 3

886
339

844
422

713
327

836
357

713
327

644
253

775
389

675
337

535
291

53

Other 4

1,030

1,406

1,070

1,268

1,070

1,012

950

762

566

1. For a description of the changes in the international statistics tables, see
Federal Reserve Bulletin, vol. 65, (July 1979), p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.

A64

International Statistics • June 1993

3.23

CLAIMS ON UNAFFILIATED FOREIGNERS
the United States 1

Reported by Nonbanking Business Enterprises in

Millions of dollars, end of period
1991
Type, and area or country

1989

1990

1992

1991
Sept.

Dec.

Mar.

June

Sept.

Dec.p

1 Total

33,173

35,348

42,667

38,315

42,667 r

42,199"

41,869"

38,659"

37,728

2 Payable in dollars
3 Payable in foreign currencies

30,773
2,400

32,760
2,589

40,098
2,569

35,952
2,363

40,098 r
2,569"

39,558"
2,641"

38,899"
2,970"

35,738"
2,921

35,164
2,564

By type
4 Financial claims
5
Deposits
Payable in dollars
6
7
Payable in foreign currencies
8
Other financial claims
Payable in dollars
9
Payable in foreign currencies
10

19,297
12,353
11,364
989
6,944
6,190
754

19,874
13,577
12,552
1,025
6,297
5,280
1,017

25,463
17,218
16,343
875
8,245
7,365
880

22,536
16,188
15,182
1,006
6,348
5,611
737

25,463
17,218
16,343
875
8,245
7,365
880

25,328"
16,964
15,803
1,161
8,364"
7,617"
747

24,612"
15,116
13,829
1,287
9,496"
8,771"
725

21,367
12,547
11,489
1,058
8,820
7,788
1,032

20,482
12,534
11,788
746
7,948
7,184
764

11 Commercial claims
12
Trade receivables
Advance payments and other claims
13
14
Payable in dollars
Payable in foreign currencies
15

13,876
12,253
1,624
13,219
657

15,475
13,657
1,817
14,927
548

17,204
14,479
2,725
16,390
814

15,779
13,429
2,350
15,159
620

17,204r
14,479"
2,725
16,390"
814"

16,871"
14,266"
2,605
16,138"
733"

17,257"
14,756"
2,501
16,299"
958"

17,292"
14,552"
2,740
16,461"
831

17,246
14,888
2,358
16,192
1,054

8,463
28
153
152
238
153
7,496

9,645
76
371
367
265
357
7,971

13,546
13
312
342
385
591
11,251

13,129
76
255
434
420
580
10,997

13,546
13
312
342
385
591
11,251

14,205"
12
277
290
727
682
11,631

13,200"
25
786
381
732
779
8,768"

11,249
16
809
321
766
602
7,727

9,147
8
771
401
536
506
5,749

16
17
18
19
20
21
22

By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

23

Canada

1,904

2,934

2,679

2,163

2,679

2,750"

2,529"

2,256

1,695

24
25
26
27
28
29
30

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

8,020
1,890
7
224
5,486
94
20

6,201
1,090
3
68
4,635
177
25

7,932
758
8
192
6,384
321
40

6,289
652
19
137
5,106
176
32

7,932
758
8
192
6,384
321
40

7,070
415
12
191
5,912
318
34

7,260
523
12
181
6,018
343
32

6,523
1,099
65
135
4,792
222
26

8,278
625
40
234
6,749
270
29

31
32
33

Asia
Japan
Middle East oil-exporting countries

590
213
8

860
523
8

957
385
5

614
277
3

957
385
5

995
481
4

836
684
3

34
35

Africa
Oil-exporting countries

140
12

37
0

57
1

61
1

57
1

66
1

74
9

All other 4

180

195

292

280

292

278

452

7,950
192
1,544
943
643
295
2,088

6,884
190
1,330
858
641
258
1,807

7,950
192
1,544
943
643
295
2,088

36
37
38
39
40
41
42
43

Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

6,209
242
964
696
479
313
1,575

7,044
212
1,240
807.
555
301
1,775

961"
380
3

1,275"
712
4

60
0

57
0

282"

291"

7,894
181
1,562
936
646
328
2,086

8,138"
255
1,563
908
666
399
2,173

7,792"
170
1,741"
885
588
294
1,977

7,526
183
1,394
883
541
294
1,776

Canada

1,091

1,074

1,174

1,232

1,174

1,176

1,131

1,172

1,243

45
46
47
48
49
50
51

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

2,184
58
323
297
36
508
147

2,375
14
246
326
40
661
192

2,591
11
263
418
41
829
202

2,494
8
255
385
37
741
1%

2,591
11
263
418
41
829
202

2,572
11
272
364
45
892
206

2,672
9
291
438
32
847
251

3,141
7
245
395
43
968
302

2,844
18
237
336
25
822
316

52
53
54

Asia
Japan
Middle Eastern oil-exporting countries

3,570
1,199
518

4,127
1,460
460

4,573
1,878
621

4,282
1,808
4%

4,573"
1,878"
621

4,354"
1,782"
635

4,463"
1,786
609

4,308"
1,793"
512

4,648
1,848
653

55
56

Africa
Oil-exporting countries 3

429
108

488
67

418
95

431
80

418
95

418
75

422
73

430
66

536
77

57

Other 4

393

367

498

456

498"

457"

431"

449

449

44

1. For a description of the changes in the international statistics tables, see
Federal Reserve Bulletin, vol. 65, (July 1979), p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.

Securities Holdings and Transactions
3.24

A65

FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars

Transaction and area or country

1991

1992

1993

1992

1993
r

Jan.Feb.

Aug.

Sept.

Oct/

Nov/

Dec/

Jan/

Feb."

22,725
20,382

19,170
19,353

29,038
25,980
3,058

U.S. corporate securities

STOCKS

211,207
200,116

1 Foreign purchases
2 Foreign sales

221,350
226,490

48,208
45,333

13,174
14,841

13,884
17,034

18,820
18,170

17,885
16,598

3 Net purchases or sales ( - )

11,091

-5,140

2,875

-1,667

-3,150

650

1,287

2,343

-183

4 Foreign countries

10,522

-5,173

2,790

-1,622

-3,059

653

1,284

2,319

-178

2,968

53
9
-63
-227
-131
-352
3,845
2,177
-134
4,255
1,179
153
174

-4,934
-1,331
-64
-280
143
-3,294
1,405
2,209
-88
-3,944
-3,598
10
169

2,342
198
188
53
706
804
-284
336
-157
470
-5%
31
52

-1,089
-46
-26
-54
-150
-652
-59
-24
-14
-442
-301
-1
7

-1,683
-234
-112
-107
-189
-869
-278
-90
136
-1,064
-97
14
-94

75
-92
-52
-24
-124
362
-227
235
-57
767
184
-21
-119

371
-50
47
-4
-40
361
43
649
-219
373
220
-18
85

1,505
-154
162
190
221
705
176
422
70
122
215
-7
31

52
-25
91
64
205
-350
-341
305
-92
-123
28
4
17

2,290
223
97
-11
501
1,154
57
31
-65
593
-624
27
35

568

33

85

-45

-91

-3

3

24

-5

90

153,096
125,637

214,801
175,310

39,381
34,146

19,785
16,620

17,160
14,452

19,315
15,224

18,082
16,317

19,264
15,513

17,417
15,439

21,964
18,707

5
6
7
8
9
10
11
12
13
14
15
16
17

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries

18 Nonmonetary international and
regional organizations
BONDS2

19 Foreign purchases
20 Foreign sales
21 Net purchases or sales ( - )

27,459

39,491

5,235

3,165

2,708

4,091

1,765

3,751

1,978

3,257

22 Foreign countries

27,590

38,375

5,457

3,150

2,573

4,045

1,600

3,206

2,074

3,383

23
24
25
26
27
28
29
30
31
32
33
34
35

13,112
847
1,577
482
656
8,931
1,623
2,672
1,787
8,459
5,767
52
-116

18,314
1,221
2,503
531
-513
13,229
236
8,833
3,166
7,545
-450
354
-73

3,664
412
143
-252
69
3,067
-292
901
548
454
251
195
-13

1,516
-5
-13
22
-94
1,447
-100
878
284
593
-1,229
1
-22

1,818
155
387
58
-51
1,319
48
548
-5
171
-590
-7
0

1,993
-4
-34
133
-23
1,568
198
842
273
790
467
-50
-1

-492
-7
-113
144
-260
-312
281
540
515
692
266
-4
68

1,996
217
857
48
105
962
-38
513
360
119
9
302
-46

1,302
101
91
-119
122
349
-437
419
300
305
190
168
17

2,362
311
52
-133
-53
2,718
145
482
248
149
61
27
-30

-131

1,116

-222

15

135

46

165

545

-96

-126

-4,260
12,477
16,737
-2,205
49,670
51,875

-3,636
11,672
15,308
-791
52,066
52,857

-4,368
12,781
17,149
-2,874
39,607
42,481

-2,328
12,722
15,050
-5,099
38,411
43,510

-1,545
15,042
16,587
-9,789
55,480
65,269

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries

36 Nonmonetary international and
regional organizations

Foreign securities
-2,950*
9,779*
12,729*
276*
45,943*
45,667*

-2,892*
13,632*
16,524*
-1,420*
46,140*
47,560*

-18,761

-2,674*

-4,312*

-6,465

-4,427

-7,242

-7,427

-11,334

-17,892

-2,761*

-4,333*

-6,492

-4,500

-7,196

-6,420

-11,472

-38,109
-6,653
-1,830
-6,583
-57
-760

-13,413
-5,146
190
186
-4
295

-1,234*
207
-430
-1,376
11
61

-3,196*
-222*
308
-1,667
-14
458*

-6,851
-1,008
1,091
681
-2
-403

-5,001
571
-1,671
1,567
42
-8

-4,516
-1,167
512
-1,670
-11
-344

-6,468
-161
195
-381
-7
402

-6,945
-4,985
-5
567
3
-107

3,336

-869

27

73

-46

-1,007

138

37 Stocks, net purchases or sales ( - ) '
38
Foreign purchases
39
Foreign sales 3
40 Bonds, net purchases or sales ( - )
41
Foreign purchases
42
Foreign sales

—31,967
120,598
152,565
-14,828
330,311
345,139

-32,186
149,987
182,173
-18,470
485,659
504,129

-3,873
27,764
31,637
-14,888
93,891
108,779

43 Net purchases or sales (—), of stocks and bonds

-46,795

-50,656

44 Foreign countries

-46,711

-53,992

45
46
47
48
49
50

-34,452
-7,004
759
-7,350
-9
1,345
-84

Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries

51 Nonmonetary international and
regional organizations

1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities and securities of U.S.
government agencies and corporations. Also includes issues of new debt securities sold abroad by U . S . corporations organized to finance direct investments
abroad.




87

21

3. In a July 1989 merger, the former stockholders of a 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 1993
MARKETABLE U.S. TREASURY BONDS A N D NOTES

Foreign Transactions

Millions of dollars
1993

Country or area

1991

1992

1993

1992

Jan.Feb.

Aug.

Sept.

Oct.

Nov.

Dec.r

Jan. r

Feb."

Transactions, net purchases or sales ( - ) during period 1
1

Estimated total

19,865

39,319"

-820

6,458

-5,995

3,546"

17,648"

8

454

-1,274

2

Foreign countries

19,687

37,966R

-2,296

6,785

-6,204

4,351"

17,661"

-194

-129

-2,167

4,671"
232
- 8
-40
202
769
4,068"
-551
-1
458

7,284"
370
-1,584
1,827
668
1,334
7,209"
-2,758
218
-1,087

3,163
-28
898
-804
-344
213
2,833
395
0
-99

-585
-59
697
-1,238
-54
-199
2,025
-1,759
2
3,302

-383
45
-1,632
206
258
-455
182
975
38
82

3
4
5
6
7
8
9
10
11
12

Europe
Belgium and Luxembourg
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Western Europe
Eastern Europe
Canada

8,663
523
-4,725
-3,735
-663
1,007
6,218
10,024
13
-3,019

19,647R
1,985"
2,076
-2,923
-804
481
24,184"
-6,002"
650"
562"

-968
-14
-935
-1,032
204
-654
2,207
-784
40
3,384

3,450
80
255
367
-1,289
-87
3,681
428
15
900

-4,655
-25
900
-239
-843
292
16
-4,761
5
-4,281

13
14
15
16
17
18
19
20

Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other

10,285
10
4,179
6,097
3,367
-4,081
689
-298

-3,223
539
-1,957
-1,805
23,526"
9,817"
1,103
-3,649

-1,050
4
-4,965
3,911
-2,168
61
-172
-1,322

-1,563
60
-758
-865
4,112
1,887
56
-170

-1,479
31
-2,537
1,027
4,004
2,448
59
148

-1,915
155
-3,233
1,163
1,416
-339
-37
-242

7,270
27
2,385
4,858
4,000
3,383
119
75

-4,519
11
415
-4,945
1,188
2,201
0
73

-1,495
-175
-3,309
1,989
-1,136
-743
-33
-182

445
179
-1,656
1,922
-1,032
804
-139
-1,140

21
22
23

Nonmonetary international and regional organizations
International
Latin American regional

1,476
809
505

-327
-133
-75

209
-31
201

-805
-903
219

-13
-38
-31

202
76
97

583
228
270

893
581
235

-194
-719
525

-129
-2,965
2,836

-2,167

511
0

-238
8

-1,855
0

178
-358
-72

1,353
1,018
533

MEMO
24
25
26

Foreign countries
Official institutions
Other foreign

Oil-exporting
countries
2
2 7 Middle E a s t
3
2 8 Africa

19,687
1,190
18,496

37,966"
6,876"
31,090"

-2,296
-7,329
5,033

6,785
697
6,088

-6,204
-4,483
-1,721

-6,822
239

4,323
11

-2,093
8

1,093
0

750
4

1. Official and private transactions in marketable U.S. Treasury securities
having an original maturity of more than one year. Data are based on monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and notes
held by official institutions of foreign countries.




4,351"
2,951
1,400"

-271
0

17,661"
-603
18,264"

407
0

-4,364
2,197

2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.

Interest and Exchange Rates
3.26

A67

DISCOUNT RATES OF FOREIGN CENTRAL BANKS 1
Percent per year
Rate on Apr. 30, 1993

Rate on Apr. 30, 1993

Country
Percent

Austria..
Belgium .
Canada..
Denmark
France 2 ..

6.75
7.0
5.60
10.5
8.25

Country

Month
effective
Apr.
Mar.
Apr.
Mar.
Apr.

1993
1993
1993
1993
1993

Percent

7.25
11.0
2.5
6.75

Germany...
Italy
Japan
Netherlands

1. Rates shown are mainly those at which the central bank either discounts or
makes advances against eligible commercial paper or government securities for
commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood
that the central bank transacts the largest proportion of its credit operations.

3.27

Rate on Apr. 30, 1993

Country
Month
effective
Apr.
Apr.
July
Apr.

1993
1993
1992
1993

Percent

7.75
5.0

Norway
Switzerland
United Kingdom

12.0

Month
effective
Apr. 1993
Mar. 1993
Sept. 1992

2. Since Feb. 1981, the rate has been that at which the Bank of France
discounts Treasury bills for seven to ten days.

FOREIGN SHORT-TERM INTEREST RATES 1
Averages of daily figures, percent per year
1993

1992
Type or country

1990

1991

1992
Oct.

8 Italy

8.16
14.73
13.00
8.41
8.71
8.57
10.20
12.11
9.70
7.75

5.86
11.47
9.07
9.15
8.01
9.19
9.49
12.04
9.30
7.33

3.70
9.56
6.76
9.42
7.67
9.25
10.14
13.91
9.31
4.39

1. Rates are for three-month interbank loans, with the following exceptions:
Canada, finance company paper; Belgium, three-month Treasury bills; and Japan,
CD rate.




Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

3.30
8.23
7.57
8.85
6.28
8.63
10.82
15.52
8.70
3.85

3.67
7.16
7.63
8.84
6.44
8.66
9.58
14.38
8.64
3.77

3.50
7.11
7.93
8.93
6.13
8.55
10.75
13.60
8.65
3.76

3.22
6.88
7.03
8.50
5.52
8.00
11.69
12.56
8.19
3.70

3.12
6.10
6.38
8.29
5.34
7.98
11.70
11.43
8.75
3.27

3.11
5.91
5.59
7.85
5.05
7.47
10.89
11.26
8.27
3.26

3.10
5.90
5.43
7.81
4.97
7.43
8.73
11.41
7.94
3.22

A68
3.28

International Statistics • June 1993
FOREIGN EXCHANGE RATES 1
Currency units per dollar except as noted
1993

1992
Country/currency unit

1990

1991

1992
Nov.

1
7
3
4
5
6
7
8
9
10

Australia/dollar 2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma

11
17
13
14
15
16
17
18
19
20

Hong Kong/dollar
Ireland/pound 2
Italy/lira
Japan/yen
Malaysia/rinegit
Netherlands/guilder
N e w Zealand/dollar 2
Norway /krone
Portugal/escudo

71
77
7.3
74
75
76
77
78
79
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 2

Feb.

Mar.

Apr.

77.872
11.686
34.195
1.1460
5.3337
6.4038
4.0521
5.6468
1.6610
182.63

73.521
10.992
32.148
1.2085
5.5206
6.0372
4.4865
5.2935
1.5618
190.81

68.984
11.168
32.661
1.2674
5.6134
6.1166
5.0615
5.3706
1.5875
206.48

68.974
11.130
32.545
1.2725
5.8106
6.1206
5.1444
5.3974
1.5822
209.48

67.297
11.368
33.239
1.2779
5.7796
6.2319
5.4242
5.4751
1.6144
215.97

68.294
11.556
33.841
1.2602
5.7874
6.3019
5.8534
5.5594
1.6414
220.60

70.775
11.586
33.919
1.2471
5.7455
6.3242
5.9767
5.5944
1.6466
223.57

71.155
11.234
32.857
1.2621
5.7202
6.1339
5.6190
5.3984
1.5964
217.90

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
161.39
1,241.28
134.59
2.7503
1.8720
57.832
6.4912
144.77

7.7402
28.156
170.42
1,232.17
126.78
2.5463
1.7587
53.792
6.2142
135.07

7.7348
28.474
166.17
1,364.45
123.88
2.5227
1.7862
51.996
6.4714
141.71

7.7416
28.979
166.71
1,412.38
124.04
2.5710
1.7788
51.570
6.6804
142.05

7.7376
29.043
163.37
1,491.07
124.99
2.5985
1.8155
51.270
6.8721
145.36

7.7335
30.042
148.11
1,550.43
120.76
2.6295
1.8473
51.603
6.9779
149.89

7.7332
31.939
147.58
1,591.35
117.02
2.6051
1.8507
53.026
6.9989
152.17

7.7306
31.610
152.75
1,536.14
112.41
2.5777
1.7942
53.904
6.7399
148.25

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

1.6294
2.8524
784.58
102.38
44.013
5.8258
1.4064
25.160
25.411
176.63

1.6338
2.9959
787.09
113.83
44.404
6.2528
1.4291
25.405
25.462
152.68

1.6397
3.0140
791.75
112.95
45.046
6.8903
1.4219
25.452
25.488
155.10

1.6527
3.0713
794.87
114.62
46.307
7.2536
1.4774
25.452
25.523
153.25

1.6463
3.1313
799.25
117.51
46.351
7.5566
1.5178
25.837
25.508
143.95

1.6446
3.1790
796.42
117.71
47.069
7.7362
1.5206
26.026
25.425
146.17

1.6228
3.1718
798.61
115.64
47.712
7.4500
1.4599
25.987
25.251
154.47

89.84

86.61

90.04

90.50

92.36

93.82

93.65

90.62

89.09

1. Averages of certified noon buying rates in N e w York for cable transfers.
Data in this table also appear in the Board's G.5 (405) monthly statistical release.
For ordering address, see inside front cover.
2. Value in U . S . cents.
3. Index of weighted-average exchange value of U.S. dollar against the
currencies of ten industrial countries. The weight for each of the ten countries is




Jan.

78.069
11.331
33.424
1.1668
4.7921
6.1899
3.8300
5.4467
1.6166
158.59

MEMO

31 United States/dollar 3

Dec.

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
Issue
June 1993

SPECIAL TABLES—Quarterly

Data Published

Irregularly,

with Latest

BULLETIN

Page
A78

Issue

Anticipated schedule of release dates for periodic releases

Page

Reference

Title and Date
Assets and liabilities of commercial
March 31, 1992
June 30, 1992
September 30, 1992
December 31, 1992
Terms of lending at commercial
May 1992
August 1992
November 1992
February 1993

banks
August
November
February
May

A70
A70
A70
A70

September
November
February
May

1992
1992
1993
1993

A78
A76
A76
A76

September
November
February
May

1992
1992
1993
1993

A82
A80
A80
A80

November
January
August
October

1991
1992
1992
1992

A80
A70
A80
A70

December
May
August
March

1991
1992
1992
1993

A79
A81
A83
A71

banks

Assets and liabilities of U.S. branches and agencies of foreign
March 31, 1992
June 30, 1992
September 30, 1992
December 31, 1992

banks

Pro forma balance sheet and income statements for priced service
June 30, 1991
September 30, 1991
March 30, 1992
June 30, 1992
Assets and liabilities of life insurance
June 30, 1991
September 30, 1991
December 31, 1991
September 30, 1992




1992
1992
1993
1993

•

operations

companies

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, 21, 22
Assets and liabilities (See also Foreigners)
Banks, by classes, i9-22
Domestic finance companies, 35
Federal Reserve Banks, 11
Financial institutions, 27
Foreign banks, U.S. branches and agencies, 23
Automobiles
Consumer installment credit, 38
Production, 47, 48
BANKERS acceptances, 10, 24, 25
Bankers balances, 19-22. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 25
Branch banks, 23, 55
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 34
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, 25
Commercial and industrial loans
Commercial banks, 17, 21
Weekly reporting banks, 21-23
Commercial banks
Assets and liabilities, 19-22
Commercial and industrial loans, 17, 19, 20, 21, 22, 23
Consumer loans held, by type and terms, 38
Loans sold outright, 21
Nondeposit funds, 18
Real estate mortgages held, by holder and property, 37
Time and savings deposits, 4
Commercial paper, 24, 25, 35
Condition statements (See Assets and liabilities)
Construction, 44,49
Consumer installment credit, 38
Consumer prices, 44, 46
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 34
Profits and their distribution, 34
Security issues, 33, 65
Cost of living (See Consumer prices)
Credit unions, 38
Currency in circulation, 5,14
Customer credit, stock market, 26
DEBITS to deposit accounts, 16
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 19-23
Ownership by individuals, partnerships, and
corporations, 23




Demand deposits—Continued
Turnover, 16
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5, 6, 13
Deposits (See also specific types)
Banks, by classes, 4, 19-22, 23
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, 34
EMPLOYMENT, 45
Eurodollars, 25
FARM mortgage loans, 37
Federal agency obligations, 5, 10, 11, 12, 30, 31
Federal credit agencies, 32
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 29
Receipts and outlays, 27, 28
Treasury financing of surplus, or deficit, 27
Treasury operating balance, 27
Federal Financing Bank, 27, 32
Federal funds, 7, 18, 21, 22, 23, 25, 27
Federal Home Loan Banks, 32
Federal Home Loan Mortgage Corporation, 32, 36, 37
Federal Housing Administration, 32, 36, 37
Federal Land Banks, 37
Federal National Mortgage Association, 32, 36, 37
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 5, 11, 12, 29
Federal Reserve credit, 5, 6, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 32
Finance companies
Assets and liabilities, 35
Business credit, 35
Loans, 38
Paper, 24, 25
Financial institutions
Loans to, 21, 22, 23
Selected assets and liabilities, 27
Float, 51
Flow of funds, 39,41,42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 22, 23
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 11, 21, 22
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 22, 54, 55, 57, 58, 63, 65, 66

A71

GOLD
Certificate account, 11
Stock, 5, 54
Government National Mortgage Association, 32, 36, 37
Gross domestic product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51, 52
Industrial production, 44, 47
Installment loans, 38
Insurance companies, 29, 37
Interest rates
Bonds, 25
Consumer installment credit, 38
Federal Reserve Banks, 8
Foreign central banks and foreign countries, 67
Money and capital markets, 25
Mortgages, 36
Prime rate, 24
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 34
Investments (See also specific types)
Banks, by classes, 19, 20, 21, 22, 23, 27
Commercial banks, 4, 17, 19-22
Federal Reserve Banks, 11, 12
Financial institutions, 37
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 19-22
Commercial banks, 4, 17, 19-22
Federal Reserve Banks, 5, 6, 8, 11, 12
Financial institutions, 27, 37
Insured or guaranteed by United States, 36, 37
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 26
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, 25
Money stock measures and components, 4, 14
Mortgages (See Real estate loans)
Mutual funds, 34
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 28
National income, 51
OPEN market transactions, 10
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 26
Prime rate, 24
Producer prices, 44, 50
Production, 44,47
Profits, corporate, 34
REAL estate loans
Banks, by classes, 17, 21, 22, 37




Real estate loans—Continued
Financial institutions, 27
Terms, yields, and activity, 36
Type of holder and property mortgaged, 37
Repurchase agreements, 7, 18, 21, 22, 23
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, 36
Retail credit and retail sales, 38, 39, 44
SAVING
Flow of funds, 39,41,42, 43
National income accounts, 51
Savings and loan associations, 37, 38, 39. (See also SAIF-insured
institutions)
Savings Association Insurance Funds (SAIF) insured institutions, 27
Savings banks, 27, 37, 38
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 32
Foreign transactions, 65
New issues, 33
Prices, 26
Special drawing rights, 5, 11, 53, 54
State and local governments
Deposits, 21, 22
Holdings of U.S. government securities, 29
New security issues, 33
Ownership of securities issued by, 21, 22
Rates on securities, 25
Stock market, selected statistics, 26
Stocks (See also Securities)
New issues, 33
Prices, 26
Student Loan Marketing Association, 32
TAX receipts, federal, 28 also Credit unions and Savings and
Thrift institutions, 4. (See
loan associations)
Time and savings deposits, 4, 14, 18, 19, 20, 21, 22, 23
Trade, foreign, 54
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 11, 27
Treasury operating balance, 27
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 19, 20, 21, 22
Treasury deposits at Reserve Banks, 5, 11, 27
U.S. government securities
Bank holdings, 19-22, 23, 29
Dealer transactions, positions, and financing, 31
Federal Reserve Bank holdings, 5, 11, 12, 29
Foreign and international holdings and
transactions, 11, 29, 66
Open market transactions, 10
Outstanding, by type and holder, 27, 29
Rates, 24
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 36, 37
WEEKLY reporting banks, 21-23
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)

A72

Federal Reserve Board of Governors
and Official Staff
Chairman
Vice Chairman

A L A N GREENSPAN,

D A V I D W . M U L L I N S , JR.,

OFFICE OF BOARD

MEMBERS

WAYNE D . ANGELL
E D W A R D W . K E L L E Y , JR.

DIVISION

OF INTERNATIONAL

FINANCE

JOSEPH R . COYNE, Assistant

to the

Board

EDWIN M . TRUMAN, Staff

DONALD J. WINN, Assistant

to the

Board

LARRY J. PROMISEL, Senior Associate
Director
CHARLES J. SIEGMAN, Senior Associate
Director
DALE W. HENDERSON, Associate
Director

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

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

LEGAL

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

Director

DIVISION

OF THE

WILLIAM W . WILES,

SECRETARY
Secretary

JENNIFER J. JOHNSON, Associate

Secretary

BARBARA R . LOWREY, Associate
ELLEN MALAND, Assistant

Secretary

AND

Secretary

DON E. KLINE, Associate

EDWARD C . ETTIN, Deputy

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
Director

Director

Adviser

LEVON H . GARABEDIAN, Assistant

Director

(Administration)

Director
Director

Director

WILLIAM A . RYBACK, Associate

STATISTICS

Director

WILLIAM R . JONES, Associate

JOHN J. MINGO,

STEPHEN C . SCHEMERING, Deputy

AND

Director

JOYCE K. ZICKLER, Assistant

REGULATION

RICHARD SPILLENKOTHEN,

OF RESEARCH

MICHAEL J. PRELL,

MARTHA S. SCANLON, Assistant

DIVISION OF BANKING
SUPERVISION

DIVISION

Director

DIVISION OF MONETARY
DONALD L. KOHN,

AFFAIRS

Director

FREDERICK M. STRUBLE, Associate
Director
HERBERT A. BIERN, Deputy Associate Director
ROGER T. COLE, Deputy Associate Director
JAMES I. GARNER, Deputy Associate Director

DAVID E. LINDSEY, Deputy Director
BRIAN F. MADIGAN, Associate
Director
RICHARD D. PORTER, Deputy Associate Director

HOWARD A . AMER, Assistant

NORMAND R.V. BERNARD, Special Assistant to the Board

Director

GERALD A . EDWARDS, JR., Assistant
JAMES D . GOETZINGER, Assistant

Director

Director
Director

STEPHEN M . HOFFMAN, JR., Assistant
LAURA M . HOMER, Assistant

DEBORAH DANKER, Assistant

Director

DIVISION OF
CONSUMER
AND COMMUNITY
AFFAIRS
GRIFFITH L. GARWOOD,

Director

Director

JAMES V. HOUPT, Assistant

Director

GLENN E . LONEY, Associate

JACK P. JENNINGS, Assistant

Director

DOLORES S. SMITH, Associate

MICHAEL G . MARTINSON, Assistant
RHOGER H PUGH, Assistant
SIDNEY M . SUSSAN, Assistant
MOLLY S . WASSOM, Assistant




Director

Director
Director
Director

Director
Director

MAUREEN P. ENGLISH, Assistant
IRENE SHAWN MCNULTY, Assistant

Director
Director

JOHN P. LAWARE

S U S A N M . PHILLIPS

LAWRENCE B . LINDSEY

OFFICE
OF
STAFF DIRECTOR

FOR

S. DAVID FROST, Staff

MANAGEMENT

CLYDE H . FARNSWORTH, JR.,

Director

WILLIAM SCHNEIDER, Special

DIVISION
OF RESERVE BANK
AND PAYMENT
SYSTEMS

Assignment:

Project Director, National Information Center
PORTIA W. THOMPSON, Equal Employment
Opportunity
Programs Officer

Director

DAVID L. ROBINSON, Deputy Director (Finance and
Control)
CHARLES W . BENNETT, Assistant
JACK DENNIS, JR., Assistant

Director

Director

EARL G. HAMILTON, Assistant
DIVISION
OF HUMAN
MANAGEMENT
DAVID L . SHANNON,

RESOURCES

ANTHONY V. DIGIOIA, Assistant
JOSEPH H . HAYES, JR., Assistant

OFFICE

OF THE

Director

Controller

OF SUPPORT

ROBERT E. FRAZIER,

SERVICES

Director

GEORGE M . LOPEZ, Assistant

Director

DAVID L. WILLIAMS, Assistant

Director

DIVISION
OF INFORMATION
MANAGEMENT
STEPHEN R . MALPHRUS,

RESOURCES

Director

BRUCE M. BEARDSLEY, Deputy Director
MARIANNE M. EMERSON, Assistant Director
Po KYUNG KIM, Assistant Director
RAYMOND H . MASSEY, Assistant
EDWARD T. MULRENIN, Assistant

DAY W. RADEBAUGH, JR., Assistant

Director
Director

Director

ELIZABETH B . RIGGS, Assistant

Director

RICHARD C . STEVENS, Assistant

Director




Director

OF THE INSPECTOR

GENERAL

General

DONALD L. ROBINSON, Assistant Inspector General
BARRY R. SNYDER, Assistant Inspector General

STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
DIVISION

OFFICE

BRENT L . BOWEN, Inspector

Director

CONTROLLER

GEORGE E. LIVINGSTON,

Director

FLORENCE M . YOUNG, Assistant
Director

Director

Director

LOUISE L. ROSEMAN, Assistant

Director

FRED HOROWITZ, Assistant

Director

JEFFREY C . MARQUARDT, Assistant

JOHN H. PARRISH, Assistant

Director

JOHN R. WEIS, Associate

OPERATIONS

74

Federal Reserve Bulletin • June 1993

Federal Open Market Committee
and Advisory Councils
FEDERAL

OPEN MARKET

COMMITTEE

MEMBERS
A L A N GREENSPAN,

E. GERALD CORRIGAN, Vice Chairman

Chairman

WAYNE D . ANGELL

EDWARD W . KELLEY, JR.

EDWARD G . BOEHNE

JOHN P. LAWARE

SUSAN M . PHILLIPS

SILAS KEEHN

LAWRENCE B . LINDSEY

GARY H . STERN

DAVID W . MULLINS, JR.

ROBERT D . MCTEER, JR.

ALTERNATE

J. ALFRED BROADDUS, JR.

JERRY L . JORDAN

ROBERT P. FORRESTAL

MEMBERS

JAMES H . OLTMAN

ROBERT T. PARRY

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
MICHAEL J. PRELL,
EDWIN M . TRUMAN,

Economist
Economist

RICHARD G. DAVIS, Associate

Economist

RICHARD W. LANG, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
ARTHUR J. ROLNICK, Associate
Economist
HARVEY ROSENBLUM, Associate
Economist
KARL A. SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist

LAWRENCE SLIFMAN, Associate

Economist

WILLIAM J. MCDONOUGH, Manager of the System Open Market Account
MARGARET L. GREENE, Deputy Manager for Foreign Operations
JOAN E. LOVETT, Deputy Manager for Domestic Operations

FEDERAL

ADVISORY

COUNCIL

E. B. ROBINSON, JR.,

President

JOHN B. MCCOY, Vice President

MARSHALL N. CARTER, First District
CHARLES S. SANFORD, JR., Second District
ANTHONY P. TERRACCIANO, Third District
JOHN B. MCCOY, Fourth District
EDWARD E. CRUTCHFIELD, JR., Fifth District
E.B. ROBINSON, JR., Sixth District




EUGENE A. MILLER, Seventh District
ANDREW B. CRAIG, III, Eighth District
JOHN F. GRUNDHOFER, Ninth District
DAVID A. RISMILLER, Tenth District
CHARLES R. HRDLICKA, Eleventh District
RICHARD M. ROSENBERG, Twelfth District

HERBERT V. PROCHNOW,

WILLIAM J. KORSVIK, Associate

Secretary

Secretary

A75

CONSUMER

ADVISORY

COUNCIL

DENNY D. DUMLER, Denver, Colorado, Chairman
JEAN POGGE, Chicago, Illinois, Vice Chairman

BARRY A . ABBOTT, S a n F r a n c i s c o , C a l i f o r n i a

BONNIE GUITON, C h a r l o t t e s v i l l e , V i r g i n i a

JOHN R . ADAMS, P h i l a d e l p h i a , P e n n s y l v a n i a

JOYCE HARRIS, M a d i s o n , W i s c o n s i n

JOHN A . BAKER, A t l a n t a , G e o r g i a

GARY S . HATTEM, N e w Y o r k , N e w Y o r k

VERONICA E . BARELA, D e n v e r , C o l o r a d o

JULIA E . HILER, M a r i e t t a , G e o r g i a

MULUGETTA BIRRU, P i t t s b u r g h , P e n n s y l v a n i a

RONALD HOMER, B o s t o n , M a s s a c h u s e t t s

DOUGLAS D . BLANKE, St. P a u l , M i n n e s o t a

THOMAS L . HOUSTON, D a l l a s , T e x a s

GENEVIEVE BROOKS, B r o n x , N e w Y o r k

HENRY JARAMILLO, B e l e n , N e w M e x i c o

TOYE L . BROWN, B o s t o n , M a s s a c h u s e t t s

EDMUND MIERZWINSKI, W a s h i n g t o n , D . C .

CATHY CLOUD, W a s h i n g t o n , D . C .

JOHN V. SKINNER, I r v i n g , T e x a s

MICHAEL D . EDWARDS, Y e l m , W a s h i n g t o n

LOWELL N . SWANSON, P o r t l a n d , O r e g o n

MICHAEL FERRY, St. L o u i s , M i s s o u r i

MICHAEL W. TIERNEY, W a s h i n g t o n , D . C .

NORMA L . FREIBERG, N e w O r l e a n s , L o u i s i a n a

GRACE W . WEINSTEIN, E n g l e w o o d , N e w J e r s e y

LORI GAY, Los Angeles, California

JAMES L . WEST, T i j e r a s , N e w M e x i c o

DONALD A . GLAS, H u t c h i n s o n , M i n n e s o t a

ROBERT O . ZDENEK, W a s h i n g t o n , D . C .

THRIFT INSTITUTIONS

ADVISORY

COUNCIL

DANIEL C. ARNOLD, Houston, Texas, President
BEATRICE D'AGOSTINO, Somerville, New Jersey, Vice President

WILLIAM A . COOPER, M i n n e a p o l i s , M i n n e s o t a

CHARLES JOHN KOCH, C l e v e l a n d , O h i o

PAUL L . ECKERT, D a v e n p o r t , I o w a

ROBERT MCCARTER, N e w B e d f o r d , M a s s a c h u s e t t s

GEORGE R . GLIGOREA, S h e r i d a n , W y o m i n g

NICHOLAS W. MITCHELL, JR., Winston-Salem, North Carolina

THOMAS J. HUGHES, M e r r i f i e l d , V i r g i n i a

STEPHEN W . PROUGH, I r v i n e , C a l i f o r n i a

KERRY KILLINGER, S e a t t l e , W a s h i n g t o n

THOMAS R . RICKETTS, T r o y , M i c h i g a n




A76

Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
MS-138, Board of Governors of the Federal Reserve System,
Washington, DC 20551 or telephone (202) 452-3244 or FAX
(202) 728-5886. When a charge is indicated, payment should
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Governors of the Federal Reserve System. Payment from foreign residents should be drawn on a U.S. bank.

THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.

1984. 120 pp.
ANNUAL REPORT.
ANNUAL REPORT: BUDGET REVIEW, 1 9 9 1 - 9 2 .
FEDERAL RESERVE BULLETIN. M o n t h l y . $ 2 5 . 0 0 p e r y e a r o r

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ANNUAL STATISTICAL DIGEST: period covered, release date,
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239 pp.
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266 pp.
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264 pp.
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254 pp.
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October 1985
231 pp.
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OF CHARTS. Weekly. $30.00 per year or $.70 each in the
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THE FEDERAL RESERVE ACT and other statutory provisions
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August 1990. 646 pp. $10.00.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
A N N U A L PERCENTAGE RATE TABLES ( T r u t h i n

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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.
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
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$200.00 per year.
Rates for subscribers outside the United States are as follows
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Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A MULTICOUNTRY MODEL, M a y 1 9 8 4 . 5 9 0 p p . $ 1 4 . 5 0 e a c h .
WELCOME TO THE FEDERAL RESERVE. M a r c h 1 9 8 9 . 1 4 pp.
INDUSTRIAL PRODUCTION—1986 EDITION. D e c e m b e r 1 9 8 6 .

440 pp. $9.00 each.
FINANCIAL FUTURES AND OPTIONS IN THE U . S . ECONOMY.

December 1986. 264 pp. $10.00 each.
FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY-

SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each.

CONSUMER EDUCATION

PAMPHLETS

Short pamphlets suitable for classroom use. Multiple copies are
available without charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
Businesses
'
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 Refinancings
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

1 6 0 . BANKING MARKETS AND THE U S E OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, b y

Bulletin

Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.

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.

1 6 1 . A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY,

Staff Studies 1-145 are out of print.

1 6 2 . EVIDENCE ON THE SIZE OF BANKING MARKETS FROM
MORTGAGE LOAN RATES IN TWENTY CITIES, b y S t e p h e n

1 4 6 . THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 , b y

1 6 3 . CLEARANCE AND SETTLEMENT IN U . S . SECURITIES MAR-

1980-90, by Margaret Hastings Pickering. May 1991.
21pp.

A. Rhoades. February 1992. 11 pp.
Thomas F. Brady. November 1985. 25 pp.
1 4 7 . REVISIONS IN THE MONETARY SERVICES (DIVISIA) INDEXES OF THE MONETARY AGGREGATES, b y H e l e n T. Farr

KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob,
Lauren Hargraves, Richard Mead, Jeff Stehm, and Maiy
Ann Taylor. March 1992. 37 pp.

and Deborah Johnson. December 1985. 42 pp.
1 4 8 . THE MACROECONOMIC AND SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY TAX ACT: SOME SIMULATION

RESULTS, by Flint Brayton and Peter B. Clark. December
1985. 17 pp.
1 4 9 . THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE AND AFTER ACQUISITION, b y S t e p h e n

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, Alice
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.
1 5 3 . STOCK MARKET VOLATILITY, b y C a r o l y n D . D a v i s a n d

Alice P. White. September 1987. 14 pp.
1 5 4 . T H E EFFECTS ON CONSUMERS A N D CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES,

by Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
1 5 5 . THE FUNDING OF PRIVATE PENSION PLANS, b y M a r k J.

Warshawsky. November 1987. 25 pp.
1 5 6 . INTERNATIONAL TRENDS FOR U . S . BANKS AND BANKING

MARKETS, by James V. Houpt. May 1988. 47 pp.
1 5 7 . M 2 PER UNIT 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 . THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE

PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
1 5 9 . N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, b y N e l l i e L i a n g

and Donald Savage. February 1990. 12 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. Limit of ten copies
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.
Changes in Family Finances from 1983 to 1989: Evidence from
the Survey of Consumer Finances. 1/92.
U.S. International Transactions in 1991. 5/92.

A78

ANTICIPATED

SCHEDULE

OF THE FEDERAL

RESERVE

OF RELEASE
SYSTEM1

DATES
(PAYMENT

FOR

PERIODIC

RELEASES—BOARD

MUST ACCOMPANY

OF

GOVERNORS

REQUESTS)

Weekly Releases

Annual
rate

Approximate
release days

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

Quarterly Releases

Annual
rate

Approximate
release days

•

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.7 (788)
[1.59, 1.60]

$ 5.00

15th 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

15th 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)

Free of
charge

January, April,
July, and
October

February, May, August, and
November

Date of period to which data
refer
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

$ 5.00

February

End of previous June

Annual Releases
•

Aggregate Summaries of Annual Surveys of
Securities Credit Extension. C.2 (101)




A80

Maps of the Federal Reserve System

1

9

BOSTON
•

MINNEAPOLIS®

12
I SAN FRANCISCO

•

NEW YORK

CHICAGO •

10

CLEVELAND
KANSAS C I T Y B

a
RJCSOND

S ? LOUIS

8

11

[PHILADELPHIA

5
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 ih*



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

3-C

5_E

4-D

Baltimore^

Pittsburgh

Charlotte
* '
Buffalo

NH
MAB
CT

v

7

•

• Cincinnati

^

NJ

KY

NY

c

N E W YORK

BOSTON
6-F

T•N

PHILADELPHIA
7-G

Nashville
— —

RICHMOND

CLEVELAND
8-H

Birmingham >
WI
/

MS
LA

OA

Sk

'
•
New Orleans

"I

Louisville

Detroit •

IA
IL •

Jacksonville

Memphis

IN

„

Littl? )
Rock

J

MS

Miami
#

ATLANTA

ST. LOUIS

CHICAGO

9-1
I
1

• Helena

ND

MN

^MSBMMM^^M

Ml

•

ifttiifci'-iWii'

1 SD

MINNEAPOLIS
12-L

10-J

Omaha •
Denver

I

I K
S

MO

•

ALASKA

I

*

Seattle

/
/ID

Portland
Oklahoma City

OR

C

KANSAS CITY

NV

I
^1

U-K
I

TX

•

A

/

UT

Salt Lake City

NM

LA

JN-R

E Paso 7
L
^ —

V

Y H o u s ti n

• Los Angeles

• i •
San Antonio C^

DALLAS



AZ

HAWAII

SAN FRANCISCO

~

A82

Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON*

02106

Jerome H. Grossman
Warren B. Rudman

Richard F. Syron
Cathy E. Minehan

NEW YORK*

10045

Ellen V. Futter
Maurice R. Greenberg
Joseph J. Castiglia

E. Gerald Corrigan
James H. Oltman

Buffalo

14240

Vice President
in charge of branch

James O. Aston

PHILADELPHIA

19105

Jane G. Pepper
James M. Mead

Edward G. Boehne
William H. Stone, Jr.

CLEVELAND*

44101

Jerry L. Jordan
Sandra Pianalto

Cincinnati
Pittsburgh

45201
15230

A. William Reynolds
G. Watts Humphrey, Jr.
Marvin Rosenberg
Robert P. Bozzone

RICHMOND*

23219

Anne Marie Whittemore
Henry J. Faison
Rebecca Hahn Windsor
Anne M. Allen

J. Alfred Broaddus, Jr.
Jimmie R. Monhollon

Edwin A. Huston
Leo Benatar
Donald E. Boomershine
Joan D. Ruffier
R. Kirk Landon
James R. Tuerff
Lucimarian Roberts

Robert P. Forrestal
Jack Guynn

Richard G. Cline
Robert M. Healey
J. Michael Moore

Silas Keehn
William C. Conrad

Robert H. Quenon
Janet McAfee Weakle'
Robert D. Nabholz, Jr.
John A. Williams
Seymour B. Johnson

Thomas C. Melzer
James R. Bowen

Delbert W. Johnson
Gerald A. Rauenhorst
James E. Jenks

Gary H. Stern
Colleen K. Strand

Burton A. Dole, Jr.
Herman Cain
Barbara B. Grogan
Ernest L. Holloway
Sheila Griffin

Thomas M. Hoenig
Henry R. Czerwinski

Leo E. Linbeck, Jr.
Cece Smith
W. Thomas Beard, III
Judy Ley Allen
Erich Wendl

Robert D. McTeer, Jr.
Tony J. Salvaggio

James A. Vohs
Judith M. Runstad
Donald G. Phelps
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
75201
79999
77252
78295

SAN FRANCISCO

94120

Los Angeles
Portland
Salt Lake City
Seattle

90051
97208
84125
98124

Charles A. Cerino1
Harold J. Swart1

Ronald B. Duncan 1
Walter A. Varvel1
John G. Stoides 1

Donald E. Nelson 1
Fred R. Herr1
James D. Hawkins 1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso

Roby L. Sloan 1

Karl W. Ashman
Howard Wells
John P. Baumgartner

John D.Johnson

Kent M. Scott
David J. France
Harold L. Shewmaker

Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson

John F. Moore 1
E. Ronald Liggett 1
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.




Publications of Interest
FEDERAL RESERVE CONSUMER CREDIT PUBLICATIONS
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects
as how the Equal Credit Opportunity Act protects
women against discrimination in their credit dealings,
how to use a credit card, and how to resolve a billing
error.

The Board also publishes the Consumer Handbook

to Credit Protection Laws, a complete guide to consumer credit protections. This forty-four-page booklet
explains how to shop and obtain credit, how to maintain a good credit rating, and how to dispute unfair
credit transactions.

Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage Lock-Ins,

A Consumer's Guide to Mortgage Refinancings, and
A Consumer's Guide to Mortgage Settlement Costs.
These booklets were prepared in conjunction with the
Federal Home Loan Bank Board and in consultation
with other federal agencies and trade and consumer
groups.
Copies of consumer publications are available free
of charge from Publications Services, mail stop 138,
Board of Governors of the Federal Reserve System,
Washington, DC 20551. Multiple copies for classroom use are also available free of charge.

A Consumer's
Guide to
Mortgage
Lock-Ins




Consumer Handbook

to Credit Protection
L

LAMPS

|

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 as well as related
statutes, interpretations, policy statements, rulings,
and staff opinions. For those with a more specialized
interest in the Board's regulations, parts of this service are published separately as handbooks pertaining
to monetary policy, securities credit, consumer affairs,
and the payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated monthly, and each contains
citation indexes and a subject index.
The Monetary Policy and Reserve
Requirements
Handbook contains Regulations A, D, and Q, plus
related materials.
The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with related statutes, Board interpretations, rulings,
and staff opinions. Also included are the Board's list




of marginable OTC stocks and its list of foreign
margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, 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, the official Board commentary on Regulation CC, and policy statements on risk
reduction in the payment system.
For domestic subscribers, the annual rate is $200
for the Federal Reserve Regulatory Service and $75
for each Handbook. For subscribers outside the
United States, the price including additional air mail
costs is $250 for the Service and $90 for each Handbook. All subscription requests must be accompanied
by a check or money order payable to the Board of
Governors of the Federal Reserve System. Orders
should be addressed to Publications Services, mail
stop 138, Board of Governors of the Federal Reserve
System, Washington, DC 20551.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102