Full text of Federal Reserve Bulletin : June 1995
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VOLUME 8 1 •
NUMBER 6 •
JUNE 1 9 9 5
FEDERAL RESERVE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn
• J. Virgil Mattingly, Jr. • Michael J. Prell • Richard Spillenkothen • Edwin M. Truman
The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed
except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics Center under the direction
of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
0.2 percent against the Canadian dollar, and
7.8 percent on a trade-weighted basis. The
U.S. monetary authorities entered the foreign
exchange markets on March 2 and March 3 to
support the dollar. In other operations, Mexico
drew a net $1 billion on its swap facility with
the Federal Reserve and a net $4 billion on the
Treasury Department's Exchange Stabilization Fund. These drawings were part of the
$20 billion financial aid package to Mexico
announced by the Clinton Administration on
January 31 and signed on February 21.
545 PROFITS AND BALANCE SHEET
DEVELOPMENTS AT US.
COMMERCIAL
BANKS IN 1994
In 1994, bank profits increased $\V2 billion, to
a record $44 Vi billion. Although profitability,
as measured by return on assets, dipped
because of rapid growth in reported assets, it
remained quite high by historical standards. It
was supported by a substantial reduction in
loan-loss provisions; a decline in net noninterest expense as a share of assets also contributed to the high profitability. In contrast, net
interest income, although remaining at a
high level, dipped as a share of assets. Banks
retained about one-third of their profits, and
capital-asset ratios remained well above regulatory minimums on average.
570 MONETARY POLICY AND OPEN
OPERATIONS DURING 1994
585 TREASURY AND FEDERAL RESERVE
FOREIGN EXCHANGE OPERATIONS
During the first quarter of 1995, the dollar
declined 11.3 percent against the German
mark, 13.1 percent against the Japanese yen,
1995
Industrial production declined 0.4 percent in
April after a decrease of 0.3 percent in March.
Capacity utilization declined 0.6 percentage
point in April after falling 0.5 percent percentage point in March. At 84.1 percent, the rate
of capacity utilization in April was below both
the 85.5 percent high attained this past
December and January and the 84.9 percent
high reached during the 1988-89 period.
MARKET
In 1994 the operating techniques for implementing monetary policy remained similar to
those of recent years; however, the Trading
Desk at the Federal Reserve Bank of New
York gained slightly more flexibility in its
execution of open market operations after the
Federal Open Market Committee (FOMC)
began announcing its policy actions in February. This article briefly reviews the course of
monetary policy in 1994 and describes the
responses of the fixed-income securities markets to economic and policy developments. It
also discusses the Open Market Trading
Desk's implementation of the objectives
established by the FOMC.
592 INDUSTRIAL PRODUCTION
AND
CAPACITY UTILIZATION FOR APRIL
595
ANNOUNCEMENTS
Revisions of the Board's Community Reinvestment Act regulations.
Issuance of an interpretation of Regulation H.
Adoption of a regulatory "safe harbor" in
relation to the anti-tying restrictions in
Regulation Y.
Proposed amendment to Regulation O; proposal to permit, but not require, banks and
other creditors to request information on the
race, color, sex, religion, and national origin
of applicants for credit.
Publication of the revised List of OTC Stocks
Subject to Margin Regulations.
Issuance of a report on the processing of
applications during 1994.
Publication of a new report, Descriptive Statistics from the 1987 National Survey of Small
Business Finances.
A67 GUIDE TO STATISTICAL RELEASES
SPECIAL TABLES
A68 INDEX TO STATISTICAL
AND
TABLES
A70 BOARD OF GOVERNORS AND STAFF
Publication of the 81st Annual Report, 1994.
598 LEGAL
A72 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and
pending cases.
627 MEMBERSHIP OF THE BOARD OF
GOVERNORS OF THE FEDERAL RESERVE
SYSTEM,
1913-95
List of appointive and ex officio members.
A1 FINANCIAL AND BUSINESS
STATISTICS
These tables reflect data available as of
April 26, 1995.
A3 GUIDE TO TABULAR
PRESENTATION
A4 Domestic Financial Statistics
A45 Domestic Nonfinancial Statistics
A53 International Statistics
A74 FEDERAL RESERVE
PUBLICATIONS
BOARD
A76 SCHEDULE OF RELEASE DATES FOR
PERIODIC RELEASES
A78 MAPS OF THE FEDERAL
SYSTEM
RESERVE
A80 FEDERAL RESERVE BANKS,
AND OFFICES
BRANCHES,
Profits and Balance Sheet Developments
at U.S. Commercial Banks in 1994
William B. English and Brian K. Reid, of the
Board's Division of Monetary Affairs, prepared this
article. Thomas C. Allard assisted in the preparation of the data, and James Y. Park provided
research assistance.
In 1994, bank profits increased $ll/z billion, to a
record $441/2 billion. Although profitability, as
measured by return on assets, dipped because of
rapid growth in reported assets, it remained quite
high by historical standards (table 1). It was supported by a substantial reduction in loan-loss provisions: Banks were able to lower provisions as loan
quality improved because of both their past efforts
to tighten credit standards and the continued expansion of the U.S. economy. A decline in net noninterest expense as a share of assets also contributed
to the high profitability; in contrast, net interest
income, although remaining at a high level, dipped
as a share of assets.1
Brisker economic growth entailed stronger business and consumer borrowing, which expanded
substantially despite higher interest rates. Indeed,
the rise in market interest rates, particularly at
longer maturities, encouraged businesses to rely
1. Except where otherwise indicated, data in this article are from
the quarterly Reports of Condition and Income (Call Reports) for
insured domestic commercial banks and nondeposit trust companies. The data, which cover all such institutions that filed Call
Reports at least once, consolidate information from foreign and
domestic offices and have been adjusted to take account of mergers.
Size categories of such institutions (in this article called banks),
which are based on assets at the start of each quarter, are as follows:
the ten largest banks; large banks, those numbered 11 through 100
by size; medium-sized banks, those numbered 101 through 1,000
by size; and small banks, those not among the largest 1,000 banks.
At the start of the fourth quarter of 1994, the ten largest banks had
assets of more than $40 billion, large banks had assets between
$6.5 billion and $40 billion, medium-sized banks had assets
between approximately $300 million and $6.5 billion, and small
banks had assets of less than approximately $300 million. Because
of report changes, data for the years before 1985 are not strictly
comparable to the more recent data. In the tables, components may
not sum to totals because of rounding.
1. Selected income and expense items, 1991-94
Percent
NOTE. Percentage of average net consolidated assets.
more heavily on short-term borrowing, including
bank loans. The effect of increased demand on loan
growth was augmented by banks' greater willingness to lend. As a result, loans expanded at the
fastest pace in more than ten years, and bank loans
as a share of private sector debt rose for the second
consecutive year (chart 1). Banks financed most of
1.
B a n k l o a n s as a p e r c e n t a g e
1970-94
of private-sector
debt,
NOTE. The data are quarterly. Loans consist of outstanding business,
consumer, and mortgage loans held by domestic banks and branches and
agencies of foreign banks located in the United States. Private sector
includes households and nonfinancial businesses (farm, corporate, and
noncorporate).
SOURCE. Federal Reserve Board, statistical release Z.l.
546
2.
Federal Reserve Bulletin • June 1995
M e a s u r e s o f profitability, 1 9 7 0 - 9 4
NOTE. The data are annual.
the increase in loans by issuing managed liabilities,
but in the second half of the year they also reduced
holdings of securities.
Non-interest-earning assets rose sharply last year
for technical reasons. For reporting purposes, bank
regulators adopted Financial Accounting Standards
Board Interpretation No. 39 (FIN 39). By limiting
banks' ability to net the value of off-balance-sheet
derivative contracts, whose market values are reported on bank balance sheets, FIN 39 boosted
reported assets and liabilities. About half of the
decline in the average return on assets (ROA),
shown in chart 2, was attributable to the effects of
FIN 39.
Banks retained about one-third of their profits,
and capital-asset ratios remained well above regulatory minimums on average. The industry's
improved health was evident not only in stronger
balance sheets and sustained profitability but also
in measures of bank distress. Bank failures
dwindled to just eleven, and the institutions classified by the Federal Deposit Insurance Corporation
as problem banks fell to 247, down more than
40 percent from 1993. Combined assets of problem
banks fell even more dramatically—from $242 billion at year-end 1993 to $33 billion at year-end
1994—down more than 90 percent from the record
level in early 1992.
was attributable to FIN 39, which caused reported
noninterest-earning assets and liabilities to expand
about $90 billion (see box on pages 548-49).
Interest-earning assets grew more slowly than they
did in 1993, as banks funded a portion of their loan
growth by running off securities.
The runoff ended the shift from loans to securities that began in 1990. Bank holdings of U.S.
Treasury securities in investment accounts declined
about 8V2 percent. While much of this decrease
was attributable to sales, about 15 percent was due
to the fall in prices of Treasury securities. Before
last year's implementation of Statement of Financial Accounting Standards No. 115 (SFAS 115),
which resulted in banks' marking to market a larger
share of their securities, such changes in the market
value of securities would have had little effect on
bank balance sheets.
Loans to the Business Sector
Commercial and industrial (C&I) loans expanded
almost 9V2 percent, the largest increase in more
than a decade. The surge partly reflected
stepped-up demand for credit by nonfinancial corporations. These firms boosted capital expenditures, including inventory investment, by amounts
that outstripped gains in retained earnings and other
internal funding sources. Also, their borrowing
shifted toward shorter-term instruments, as they cut
net bond and equity issuance because of higher
long-term interest rates and a lackluster stock market (chart 3).
3.
N e t o f f e r i n g s o f l o n g - t e r m securities b y n o n f i n a n c i a l
corporations, 1 9 8 7 - 9 4
Stocks
BALANCE SHEET
DEVELOPMENTS
Bank assets grew at the fastest pace since 1985—
more than 8 percent from year-end 1993 to yearend 1994 (table 2). About one-third of the increase
1992
NOTE. The data are quarterly.
SOURCES. Federal Reserve Board, statistical release Z.l.
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
Consistent with these funding patterns of nonfinancial corporations, banks included in the Federal
Reserve's periodic Senior Loan Officer Opinion
Survey on Bank Lending Practices (LPS) reported
stronger loan demand from businesses of all sizes.2
On average, a net of about 30 percent of banks
reported increased demand for business loans over
the three months preceding the survey dates. Sur2. About sixty domestic commercial banks from the twelve
Federal Reserve Districts are on the LPS panel. Most of them are
large: A s of December 31, 1994, the combined assets of the panel
banks were $1.7 trillion, about 4 0 percent of the assets of domestic
commercial banks.
2.
547
vey respondents attributed the higher demand
mainly to their customers' need to finance inventories and investments in plant and equipment.
Several banks also noted that the pickup in merger
and acquisition activity boosted demand for business loans. A substantial share of this activity,
however, was funded with commercial paper,
which expanded rapidly during the second half of
the year. Banks usually provide backup lines of
credit to firms issuing commercial paper; consequently, the pickup in commercial paper issuance
last year probably contributed to the 16 percent
increase in unused commercial lines of credit.
Annual rates of growth of balance sheet items, 1985-94
Percent
1985
Assets
Interest-earning assets
Loans and leases (net)
Commercial and industrial.
Real estate
Booked in domestic
offices
Residential
Nonresidential
Booked in foreign
offices
Consumer
Other loans and leases
Loss reserves and
unearned income
Securities
Investment account
U.S. Treasury
U.S. government agency
and corporation
obligations
Other
Trading account
Other
Non-interest-earning assets
Liabilities
Transaction and core deposits ..
Transaction deposits
Core deposits
Managed liabilities'
Deposits booked in foreign
offices
Large time
Subordinated notes
and debentures
Other managed liabilities —
Other
Equity capital
1986
1987
1988
1989
8.91
9.60
7.91
2.16
13.75
7.65
7.81
7.35
3.95
17.46
2.00
3.08
3.00
-1.95
16.56
4.36
4.06
5.95
1.86
12.46
5.32
5.59
6.23
2.95
12.66
13.50
9.85
17.35
17.06
12.78
21.28
17. 1
18.03
16.26
12.02
13.92
10.26
22.49
15.74
4.54
30.20
8.32
-.96
.84
4.55
-5.33
27.03
7.64
-3.08
9.09
15.95
14.05
5.40
9.41
9.91
10.25
1.64
44.36
4.94
7.51
.00
-4.19
3.30
2.97
-5.80
-4.00
32.98
41.40
9.22
4.61
53 55
2.25
6.21
6.89
6.6!
25.46
4.43
-23.88
.24
-5.08
22.54
-2.37
8.58
-5.82
6.49
8.85
10.28
10.82
9.94
9.17
7.65
11.78
17.50
8.07
3.05
2.18
-.76
-6.04
2.95
6.90
4.07
5.48
2.65
7.29
2.31
5.41
5.75
.93
8.71
5.15
IM
4.29
-2.49
-1.07
8.86
12.16
-7.77
9.22
43.84
23.11
-8.97
15.77
12.13
-7.00
3.72
.78
3.75
9.77
Item
7J58
-.67
!U.
a.a.
1994
Memo:
Dec. 1994
levels
(billions
of dollars)
1991
1992
1993
2.66
2.24
2.38
-.67
8.81
1.32
1.97
-2.66
-9.10
2.72
2.18
2.54
-1.02
-4.11
1.94
5.66
6.54
6.02
.54
6.11
8.08
5.32
9.87
9.33
7.95
3,989
3,455
2292
586
990
12.99
15.73
10.36
8.56
13.49
3.60
2.88
8.07
-2.84
2.56
7.88
-3.96
6.15
10.94
-.46
7.69
10.01
4.12
964
597
367
3.00
6.18
-.95
16.65
.37
-5.67
-2.34
-2.55
-4.92
-17.80
-1.53
-4.28
4.66
8.91
9.94
18.41
16.04
5.33
26
484
289
10.29
5.02
4.01
-13.79
.34
8.47
8.19
3.51
-3.80
16.23
14.42
32.02
-4.78
12.27
11.43
23.92
-5.93
12.27
8.09
7.23
-2.20
-4.13
-1.71
-8.44
58
911
814
239
33.42
24.01
-.97
-6.69
» 20.34 : 12.13
2.50
-11.69
3.45
5.62
15.88
-2.56
38.89
2.81
-3.13
12.77
-5.23
21.02
1.53
-.38
9.61
6.05
51.95
-7.88
-.87
.88
2.53
-20.54
3.22
30.23
397
178
9?
252
534
2.39
7.57
2.42
10.51
-6.12
1.01
5.21
3.38
6.19
-6.13
1.35
5.12
14.61
.23
-6.14
5.10
1.48
5.45
-.86
12.29
8.33
-.14
-.29
-.05
17.63
3,678
2,205
848
1,357
1,247
-1.08
5.00
-5.88
-5.68
3.82
-19.54
-5.85
-26.38
15.06
-9.21
30.89
8.74
432
218
-4.26
5.59
.12
16.99
9.97
2.53
23.46
-8.10
4.40
4.03
-1.35
-4.29
33.04
7.10
-1.09
10.82
22.19
14.95
9.21
13.01
77.92
41
557
226
8.80
4.10
6.79
5.92
13.75
12.59
5.22
311
-3.49
- 5 20
-1.33
3.68
362
;
1990
MEMO
Commercial real estate loans2
—
a.a.
<1.8.
NOTE. Data are from year-end to year-end.
n.a. Not available.
1. Measured as the sum of deposits in foreign offices, large time deposits
in domestic offices, federal funds purchased and securities sold under agreements to resell, demand notes issued to the U.S. Treasury, subordinated notes
and debentures, and other borrowed money.
n«a.
n.a.
2. Measured as the sum of construction and land development loans
secured by real estate; real estate loans secured by nonfarm nonresidential
properties; and loans to finance commercial real estate, construction, and
land development activities not secured by real estate.
548
Federal Reserve Bulletin • June 1995
Banks' easing of terms and standards on loans
likely boosted business lending as well. Some LPS
respondents reported that they had relaxed standards for C&I loans (chart 4). In addition, many
banks said that they had cut credit-line costs and
spreads over base rates. A number of respondents
also cited easing other terms, including loan
covenants, maximum sizes of credit lines, and
collateralization requirements. A broader sample of
banks included in the Federal Reserve's Survey of
Terms of Bank Lending to Business reported some
further narrowing of spreads of loan rates over
market interest rates on small- and medium-sized
loans from the peaks reached earlier in the decade
(chart 5).
In contrast, only a few banks appear to have
relaxed their standards for commercial real estate
loans (chart 4). Nonetheless, after three years of
decline, commercial real estate loans expanded.
The demand for these loans was likely boosted by a
pickup in investment in nonresidential structures.
The higher investment came in the wake of lower
vacancy rates and higher commercial real estate
prices in many parts of the country. Indeed, prices
for commercial real estate properties increased on a
national average basis for the first time in four
years (chart 6). The better market for commercial
real estate probably also helped reduce assets classified as other real estate owned, which dropped
40 percent and ended the year at the lowest level
The Effect of Accounting Changes on Bank Balance Sheets in 1994
Banks' balance sheets were affected in 1994 by two
accounting changes issued by the Financial Accounting
Standards Board (FASB) and adopted by bank regulators;
Statement of Financial Accounting Standards No. 115
(SFAS 115) and FASB Interpretation No. 39 (FIN 39).
Bank regulators generally required banks to implement
these accounting changes for the March 1994 Call Report
but permitted banks to adopt them for earlier reports.
Because a number of balance sheet items were affected
and some banks adopted SFAS 115 early, several breaks
occur in the data beginning in late 1993. SFAS 115
affected banks of all sizes, but FIN 39 affected principally the ten largest banks.
Statement of Financial Accounting
Standards No. 115
Under SFAS 115, all debt and marketable equity securities are assigned one of three designations: held to maturity, available for sale, or held for trading. Securities
identified as being held to maturity are reported at amortized cost, whereas those available for sale are marked to
market. Previously, debt securities were designated as
held for sale, held for investment, or held for trading.
Debt securities held for sale werereportedat the lower of
amortized cost or market value, and those held for investment were reported at amortized cost. SFAS 115 did not
affect the reporting of securities designated as held for
trading, which continue to be marked to market.
Changes in the market value of securities available for
sale, unlike those of securities held in trading accounts,
do not affect reported income under SFAS 115, but
they are reflected (on an after-tax basis) directly in
bank equity. Consequently, ratios of equity capital to
assets, reflecting the after-tax adjustments from
SFAS 115, increase with unrealized gains and decrease
with unrealized losses. Regulatory definitions of capital
generally do not recognize the SFAS 115 adjustment,
however, and therisk-basedcapital ratios are unaffected.
As before the adoption of SFAS 115, net unrealized
losses on marketable equity securities reduce tier 1
capital.
FASB Interpretation No. 39
The market value of off-balance-sheet derivatives can be
positive or negative. Before the adoption of FIN 39,
banks holding these contracts in their trading portfolios generally posted to their balance sheets the market
value of the contracts after netting across various
counterparties—a practice termed "grandslam netting." The net value was recorded as an asset if positive and as a liability if negative. The contracts were
marked to market over time as their values fluctuated,
and unrealized gains or losses flowed through the income
statement and were passed to equity by way of retained
earnings.
Under FIN 39, the Financial Accounting Standards
Board prohibits grandslam netting and limits netting to
positions with the same counterparty when certain legal
criteria are met. Trading positions remain marked to
market, and unrealized gains and losses continue to flow
through the income statement to affect the level of equity.
Because many of the derivative contracts could no
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
since 1987. Banks generally acquire these assets
when they foreclose on nonperforming loans that
are collateralized with real estate.
Loans to the Household
Sector
Growth in bank holdings of residential real estate
loans slowed a bit last year but remained strong.
While higher mortgage interest rates damped housing sales, especially late last year, higher rates on
fixed rate mortgages encouraged households to
shift to adjustable rate mortgages (ARMs). This
shift helped to support the growth of residential
loans on bank balance sheets; banks are less likely
549
to securitize ARMs because these mortgages
expose them to less interest rate risk than do
fixed rate mortgages. During the last few months of
1994, more than half of all newly issued conventional home mortgages originated by banks were
ARMs.
Consumer loans held on bank balance sheets
expanded 16 percent, the fastest rate in more than a
decade. The rapid growth of consumer loans was
spurred by a rise of 10 percent in consumer expenditures for durable goods. Increased convenience
use of credit cards, associated with credit card
promotions and expanded acceptance at nontraditional outlets such as grocery stores, probably also
accounted for some of the growth. Although the
The Effect of Accounting Changes—Continued
longer be netted, however, banks with large holdings of
derivatives in their trading accounts posted substantial
increases in assets (and liabilities) in 1994, an action that
reduced their tier 1 leverage ratios. By contrast, regulatory risk-based capital ratios were unaffected because a
gross, rather than a net, value of off-balance-sheet contracts was already used to compute risk-weighted assets.
Balance Sheet Effects
Following die implementation of SFAS 115, slightly
more than one-half of investment account securities were
categorized as available for sale, except for the ten largest
banks, whichreportedabout two-thirds of theirs as available for sale. The 1994 runup in interest rates pushed
security values lower, and unrealized losses on the
available-for-sale securities totaled about $16 billion and
reduced reported capital about $11 billion. On average
over the year, SFAS 115 reduced reported assets about
$4 billion.
The adoption of FIN 39 boosted bank assets in 1994
roughly $90 billion, which was about one-third of the
change in bank assets. The on-balance-sheet values
appear in non-interest-bearing assets and liabilities. As a
result of the combined effects of SFAS 115 and FIN 39,
all items shown as a percentage of assets are not strictly
comparable to items shown for years before 1994. For
example, the ROA for all banks fell 5 basis points.
Without the change, the ROA would have fallen 2 basis
points. Because FIN 39 affected principally derivative
dealers, about 90 percent of its total effect was concentrated at the ten largest banks.
Effects of SFAS 115 and FIN 39
Selected income and expense items
Return on assets
Percent
Percent
Item
Net interest income
Net noninterest
expense
Loss provisions
Net income
1993
1994
JjSL
3.90
3.78
3.87
1.81
.47
1.20
1.75
.28
1.15
1.79
.29
1.18
Class of bank
All banks
Small
Medium
Large
Ten largest
NOTE. Percentage of average net consolidated assets. Right-hand columns show percentages
based on assets adjusted to remove the effects of SFAS 115 and FIN 39.
1993
1994
1994
adjusted
1.20
1.19
1.22
1.26
1.13
1.15
1.16
1.29
1.22
.91
1.18
1.15
1.29
1.23
1.00
550
Federal Reserve Bulletin • June 1995
resulting balances are paid off within the interestfree grace period, they nonetheless boost the average level of consumer debt outstanding.
4.
N e t p e r c e n t a g e o f s e l e c t e d large c o m m e r c i a l b a n k s that
tightened credit standards, 1 9 9 0 : Q 2 - 9 5 : Q 1
Commercial and industrial loans, by size of firm seeking loan 1
Consumer loan growth was also lifted by a
greater willingness of banks to provide credit. On
balance, in each survey about 25 percent of the
LPS respondents indicated that they were more
willing to make consumer loans than they had been
three months earlier. This increased willingness to
make consumer loans was also evident in unused
credit card lines, which rose almost 30 percent, to
$860 billion by year-end.
Liabilities
'
I
1
I
I
—1
Commercial real estate loans, by purpose of loan 2
NOTE. The data are quarterly. Net percentage is the percentage of banks
reporting tightening less the percentage reporting easing.
1. The data for large firms begin in 1990:Q3. Size definition suggested
for, and generally used by, survey respondents is that medium-sized firms are
those with annual sales of between $50 million and $250 million.
2. The data for construction and land development loans begin in
1990:Q3.
SOURCE. Federal Reserve Board, Senior Loan Officer Opinion Survey on
Bank Lending Practices.
L o a n rate spread o v e r a v e r a g e federal f u n d s rate,
'' •• ff'i
_ '•'*
•.'r Y'vt
In 1994, banks reduced holdings of securities to
fund part of their loan growth, but they financed
most of the increase with managed liabilities. A
heavier reliance on managed liabilities emerged in
1993. In the previous few years, banks had run off
managed liabilities because they had been reducing
their loans and were flush with core (transaction,
savings, and small time) deposits, some of which
they had acquired from failed thrifts. The bulk of
the thrift closures had occurred by 1991; as a
consequence, when loan growth accelerateo^n
1993-94, banks relied on managed liabilities to
fund the increases. Money markets were receptive
to the increased issuance of managed liabilities in
part because of healthier bank balance sheets and
improved credit ratings.
As in 1993, deposits booked in foreign offices
were an important source of funding. Domestic
offices of commercial banks increased their net
borrowing from their foreign offices by $75 billion
6.
5.
"
C h a n g e s in prices f o r c o m m e r c i a l properties,
1987-94
b y s i z e o f loan, 1 9 8 7 - 9 5 : Q 1
NOTE. The data are quarterly.
SOURCE. Federal Reserve Board, statistical release E.2.
through 1994 are quarterly.
SOURCE. Liquidity Financial Group, National Real Estate Index.
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
in 1994. To better understand these and other funding developments, the Federal Reserve conducted a
survey on bank liability management in December
1994.3 Banks noted, in particular, the absence of
deposit insurance premiums on deposits at foreign
branch offices as motivating their decision to borrow in the Eurodollar market. Besides these Eurodollar deposits, a substantial volume of senior bank
notes was issued by banks in the domestic market.
These instruments have features that make them
close substitutes for large certificates of deposit
(CDs); but unlike large CDs, they are not subject to
deposit insurance premiums.
Core deposits declined last year after increasing
slightly in 1993. A substantial rise in money market rates relative to rates on savings and transaction
deposits encouraged retail depositors to shift funds
to higher-yielding assets, including money market
mutual funds (chart 7). Some depositors may also
have turned to direct holdings of securities; one
sign of such a shift was the $22 billion rise in net
noncompetitive tenders for Treasury securities.4 In
contrast, shifts into bond mutual funds slowed substantially last year, perhaps as households reacted
to reports of low or negative returns that appeared
as bond prices fell.
A drop in mortgage refinancings contributed to
the decline in demand deposits and, to a lesser
extent, savings deposits. Record levels of mortgage
refinancings had temporarily increased the level of
these deposits in 1993 because mortgage servicers
hold prepayments of mortgages securitized by
some government-sponsored agencies in transaction and savings accounts before distributing the
funds to the holders of the securities.
TRENDS IN
PROFITABILITY
Net income at U.S. commercial banks increased
$1V2 billion in 1994, reaching a record of $44 V bil2
lion. Despite the higher profits, the industry's ROA
3. The banks on the survey panel included many of the banks on
the LPS panel, but there were some differences. As of December 3 1 , 1 9 9 4 , the combined assets of the panel banks were $1.6 trillion, about 4 0 percent of domestic commercial bank assets.
4. The Treasury permits noncompetitive bids at its auctions to
make participation easier for smaller bidders. Bidders submitting
noncompetitive tenders are assured of receiving the security, and
the yield on the security they obtain is the average issue rate
7.
551
Selected interest rates, 1987-95:Q1
NOTE. The data are monthly. Rates are at commercial banks. Savings
accounts include money market deposit accounts.
SOURCE. Federal Reserve Board, statistical releases H.6 and H.15.
fell slightly from its record level in 1993 because
of rapid growth in measured total assets. Some of
that growth—enough to account for more than half
the decline in ROA—reflected the introduction of
FIN 39. The average return on equity (ROE) also
fell last year, as the ratio of annual average equity
to assets changed little.
Profits last year were supported by a substantial
decline in provisions for loan and lease losses and a
small reduction in net noninterest expense as a
share of assets (table 3). Loss provisions fell to
their lowest level in more than a decade because of
improvements in asset quality resulting from tighter
lending standards in the early 1990s and the
rapid growth of the U.S. economy last year,
which boosted borrowers' incomes. Net noninterest expense declined as a share of assets despite a
sharp drop in trading income from its record level
in 1993. The improvement came, in part, from
industry efforts to control costs.
The positive contributions from reduced provisioning and lower net noninterest expense, however, were more than offset by lower income from
other sources. Although remaining high by historical standards, net interest income declined somewhat as a share of assets, in large part because of
the increase in reported assets caused by FIN 39.
Higher market interest rates led to losses on sales
established at the auction. The level of net noncompetitive tenders
during a period is the dollar volume of securities purchased under
noncompetitive tenders less the volume of repayments of maturing
securities that had been purchased under noncompetitive tenders.
552
Federal Reserve Bulletin • June 1995
of investment account securities, after three years
of substantial gains on such sales. Extraordinary
items, which had boosted profits $2 billion in 1993,
were inconsequential in 1994.
Return on assets dropped most sharply at the ten
largest banks, despite their larger-than-average
reduction in provisions for loan and lease losses.
The decrease in ROA was attributable to the greater
dependence of these banks on trading income as
well as to the disproportionate effect of FIN 39 on
their reported assets. In addition, some of the banks
in this category had booked substantial extraordinary gains in 1993 that were not repeated in 1994.
Changes in ROA were mixed for the other size
categories of banks, with small and large banks
posting somewhat lower ROAs and medium-sized
banks showing a moderate increase.
On balance, share prices for publicly traded bank
holding companies underperformed the broader
market last year (chart 8). Early in the year, continued profitability and strong loan growth boosted
prices of bank stocks, especially those of regional
banks. Despite strong profits, however, fears that
higher interest rates would squeeze interest margins and erode trading profits and increased con-
S e l e c t e d i n c o m e and e x p e n s e items, b y s i z e o f bank,
1991-94
Percent
Year and size
of bank
1994
All banks
Small
Medium
Large
Ten largest...
mm
Net
interest
income
1.15
3.78
4.36
4.26
3.77
2.86
1.75
2.48
1.92
1.60
1.23
3.90
4.33
4.26
3.85
3.16
1.81
2.48
2.07
1.66
1.14
.47
.27
.47
.47
.64
1.91
2.51
2.18
.61
3.89
4.34
4.20
3.86
3.15
1.73
1.27
.78
.42
.77
.78
1.12
.53
.78
.61
.51
.22
3.60
4.09
3.95
3.40
2.95
1.93
2.52
2.11
1.69
1.43
1.02
.51
1.06
1.19
1.21
1.16
1.29
l
fl
1993
All banks
Small
Medium
Large
Ten larjicst
1.20
1.19
1.22
1.26
1.13
1992
Ail banks .
Small...
Medium
Large.
.91
1.04
.92
1.04
1991
All banks .
Small...
Medium
Large.
|
Net
Loss
noninterest
provisions
expense
NOTE. Percentage of average net consolidated assets.
•
.28
.19
.32
.32
.26
8.
S t o c k price i n d e x e s , 1 9 9 0 - 9 5 : Q 1
NOTE. The data are weekly; the bank indexes run through March 29,
1995, and the S&P 500 runs through March 31, 1995. The bank indexes are
for eight money center banks and twenty-one regional banks as defined by
Salomon Brothers.
SOURCES. Salomon Brothers and Standard and Poor's Corp.
cerns about bank derivative positions caused bank
equity prices over the second half of the year to
more than reverse earlier gains.
Loss Provisions and Asset Quality
In 1994, bank asset quality improved substantially.
Delinquent loans and leases (those that are more
than thirty days past due or that are on nonaccrual
status) fell below 3 percent of outstanding loans
and leases, less than half the peak rate in 1991
(table 4). Similarly, charge-off rates fell sharply,
reaching their lowest levels in more than a decade.
Delinquency and charge-off rates fell the most at
the ten largest banks, but these banks continued to
have higher rates than banks in the other size
categories. Delinquency rates at medium-sized and
at large banks also improved substantially and were
below the rate at small banks for the first time in
seven years.
Delinquency and charge-off rates fell the most
for business and real estate loans and less for
consumer loans (chart 9). In part, these decreases
resulted from the substantial growth in loans last
year, since newly extended loans are unlikely to be
delinquent. The substantial drops in real estate
delinquencies and charge-ofifs presumably also
reflected the improved commercial real estate markets noted above and banks' efforts to sell troubled
real estate loans.
Another factor that contributed to the improved
quality of business and real estate loan portfolios
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
4.
M e a s u r e s o f loan quality, b y s i z e of bank, 1 9 9 1 - 9 4
Percent
1994
All banks .
Small ..
Medium ...
Large
Ten largest
end of the year, this ratio reached almost 90 percent, double its level four years earlier. Given substantial improvement in asset quality and ample
9.
1993
All banks . . . .
Small
Medium ...
Large
Ten largest
1.20
1.29
.61
1.19
1.37
1.87
5.35
3.90
4.55
5.23
7.68
banks . . . .
Small
Medium . . .
Large
Ten largest
1.59
.77
1.43
1,67
2.38
D e l i n q u e n c y and c h a r g e - o f f rates, by t y p e o f loan,
1987-94
5.76
1992
All banks . . . .
Small
Medium . . .
Large
Ten largest
553
6.03
4.41
5.28
6.13
8.21
!
NOTE. Percentage of outstanding loans.
1. Delinquent loans are nonaccrual loans and those that are accruing
interest but are more than thirty days past due.
was the tightening of bank lending standards in
the early 1990s. With the increased willingness
of banks to make loans in recent years, however,
delinquency and charge-off rates may not fall much
further. Indeed, according to fourth-quarter data,
the delinquency rate for consumer loans may be
leveling out. A slowing of the economic expansion
from its rapid 1994 pace would also make additional improvements in asset quality difficult to
achieve.
With delinquency and charge-off rates down substantially from their elevated levels of recent years,
provisions for loan and lease losses dropped
sharply last year and reached their lowest level in
more than a decade. The ten largest banks posted
the biggest decline in provisioning as a fraction of
loans and leases. Provisioning by the largest banks
was below the rates at medium-sized and large
banks for the first time in three years.
For the industry as a whole, provisioning was
less than charge-offs last year, causing a small
decline in reserves. With growth in loans and leases
picking up, the ratio of reserves to loans and leases
outstanding fell to less than 2.5 percent (chart 10).
Nonetheless, reserves as a fraction of delinquent
loans and leases increased substantially, and by the
NOTE. The data are quarterly and seasonally adjusted.
1. Delinquent loans are nonaccrual loans and those accruing interest but
more than thirty days past due. The delinquency rate for a category of loans
is the category's average level of delinquent loans for the period divided by
the category's average level of outstanding loans for the period. The first
period plotted is 1987:Q2.
2. The charge-off rate for a category of loans is the category's annualized
charge-offs for the period, net of recoveries, divided by the category's
average level of outstanding loans for the period.
10.
R e s e r v e s f o r l o a n and l e a s e l o s s e s , l o s s p r o v i s i o n s ,
and net c h a r g e - o f f s as a p e r c e n t a g e o f loans, 1 9 8 0 - 9 4
Reserves for loan and lease losses
NOTE. The data are annual.
554
Federal Reserve Bulletin • June 1995
reserves, more than 750 banks actually posted
negative provisions for the year. Doing so directly
reduced reserves at these banks and boosted their
reported profits nearly $600 million; negative provisions had accounted for about $375 million of
profits in 1993.
Interest Income and Expense
Despite the increase in market rates last year, both
gross interest income and gross interest expense
declined moderately as a percentage of interestearning assets (table 5). In part, these reductions
likely reflected earlier decreases in interest rates, as
banks replaced maturing assets and liabilities with
lower-yielding instruments. This effect was bolstered by the relatively slow adjustment of the rates
paid on some types of deposits and charged on
some types of loans to movements in market rates.
As a result of these factors, both interest income
and interest expense decreased substantially as a
percentage of assets in the first quarter, before
rebounding moderately in the second.
Also contributing to the year-over-year decreases
was the sharp drop in nominal interest rates in
Brazil after that country implemented a stabilization program at midyear. Although only a few large
banks with significant operations in Brazil were
affected by the stabilization, the effects were surprisingly large, cutting quarterly gross interest
income and expense by roughly $3 billion between
the second and third quarters. As a result, in the
third quarter gross interest income for all commercial banks was about unchanged, and gross interest
expense actually fell. Indeed, if the levels of interest income and expense from Brazilian operations
had been the same in the second half of the year as
they had been in the first, gross interest income and
expense as a share of interest-earning assets would
have increased rather than decreased in 1994.
5.
Interest i n c o m e ,
interest
expense,
and net
Net interest income as a share of average
interest-earning assets, or the net interest margin,
fell slightly from its 1993 level, but it remained
close to 4.4 percent last year, a high level by
historical standards. On a quarterly basis, the net
interest margin rebounded in the final three quarters of the year after declining from its peak of just
more than 4.5 percent at an annual rate in the
fourth quarter of 1992 to less than 4.3 percent in
the first quarter of 1994. Interest margins appear
not to have been significantly affected by the stabilization in Brazil.
Net margins, which had been expected to narrow
as interest rates increased, remained wide because
of two factors. First, banks increased loans, which
generally earn higher interest rates than securities
do, as a share of interest-earning assets. Because of
the strength in loan demand last year, banks were
able to achieve this shift in asset competition without sharp declines in spreads of loan interest
11.
Interest i n c o m e , interest e x p e n s e , and net interest
i n c o m e , as a p e r c e n t a g e o f a v e r a g e interest-earning
assets, b y s i z e o f bank, 1 9 8 5 - 9 4
interest
income, 1 9 9 1 - 9 4
Percent
NOTE. Percentage of average net consolidated interest-earning assets.
NOTE. The data are annual.
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
rates over market rates. Second, rates on small time
deposits lagged increases in market rates by somewhat more than they generally had in the past. The
effect of this relatively unaggressive pricing of
small time deposits on net interest margins was
damped to some degree, however, by the resulting
need to increase funding from other sources,
including relatively expensive managed liabilities.
The pattern of interest income, expense, and net
interest margin across size categories of banks
changed little last year (chart 11). Among the four
size groups, the ten largest banks had the highest
level of interest income relative to interest-earning
assets. However, because of their relative lack of
core deposits and their greater reliance on managed
liabilities, the largest banks also had the highest
interest expense relative to interest-earning assets.
On balance, the largest banks had the lowest average net interest margin. The levels of average interest expense were quite similar among the other size
groups. Because of their higher returns on loans,
small and medium-sized banks earned somewhat
higher interest income as a fraction of interestearning assets. Thus, their average net interest margins were higher than the average margin of the
large banks.
Noninterest Income and Expense
Net noninterest expense increased to $68 billion in
1994 from $65 billion a year earlier. The primary
cause of the increase was a substantial decline in
trading income, which dropped $3 billion following a record year in 1993. The decrease reflected
weaker proprietary trading results at several banks
with large trading operations. In addition, earnings
from foreign exchange trading, a large part of
which are derived from market-making activities,
fell because of a narrowing of bid-ask spreads in
foreign exchange markets.
Trading income was reportedly also hurt by a
decline in demand for more complex derivatives
contracts, which carry higher fees than simpler
contracts do. Nonetheless, overall activity in derivatives continued to expand rapidly last year. The
notional principal value of banks' interest rate contracts (including the value of interest rate swaps,
futures contracts, forward contracts, and option
contracts) expanded more than one-third after ris
6.
555
Noninterest income, noninterest expense,
and net noninterest expense, 1991-94
Percent
Item
Noninterest income
Noninterest expense . . . . . . .
Net noninterest expense . . . .
1991
1992
1993
1994
1.80
3.73
1.93
1.95
3.86
1.91
2.12
3.93
1.81
1.99
3.74
1.75
NOTE. Percentage of average net consolidated assets.
ing almost a half in 1993.5 The notional principal
value of foreign-exchange contracts (including the
value of exchange rate swaps, commitments to buy
foreign exchange, and option contracts) increased a
quarter in 1994 following an 18 percent rise the
previous year. The bulk of the increase in derivatives activity last year came in the first half. In the
second half, growth in interest rate contracts
slowed considerably, and foreign exchange contracts actually declined.
Despite the large increase in notional principal
values, the credit-equivalent value of interest rate
and exchange rate contracts increased only
IOV2 percent last year, to $225 billion.6 The credit
equivalent value of interest rate contracts actually
declined 6 percent, as higher interest rates reduced
the market value of contracts that had increased in
value as rates fell in 1993. By contrast, the credit
equivalent value of foreign exchange contracts
increased 23 percent, as a sharp rise in the second
quarter, likely reflecting the decline in the value of
the dollar, was only partially reversed later in the
year.
Although commercial banks' net noninterest
expense increased last year, rapid growth in assets
led to a decline in net noninterest expense as a
share of assets from 1.81 percent to 1.75 percent
(table 6). Much of this improvement, however, was
the arithmetic result of the boost in measured assets
caused by FIN 39. In addition, the industry bene-
5. The notional principal value of a contract is a value used in
the calculation of the payments owed. It does not represent the
amount subject to credit risk, nor does it reflect the extent to which
contracts are offsetting. (»
6. The credit equivalent value of an off-balance-sheet derivative
contract is an estimate of the credit exposure of the contract that is
intended to be comparable to the on-balance-sheet credit exposure
created by a loan. The estimate is the sum of the current exposure
(the replacement cost if positive, otherwise zero) and an estimate of
the potential future increase in credit exposure (a small fraction of
the notional principal value of the contract).
556
12.
Federal Reserve Bulletin • June 1995
N o n i n t e r e s t i n c o m e , noninterest e x p e n s e , and net
noninterest e x p e n s e as a p e r c e n t a g e o f a v e r a g e
assets, b y s i z e o f bank, 1 9 8 5 - 9 4
other noninterest expenses as a share of assets. By
contrast, small banks reported slightly higher noninterest expenses, and their net noninterest expense
was little changed as a share of assets.
Changes in Capital
Despite the record level of net income last year,
bank capital increased less than half as much as it
had in each of the previous two years (table 7). A
substantial increase in dividends pared retained
earnings by nearly a quarter; and SFAS 115, which
implemented mark-to-market rules on availablefor-sale securities last year, reduced equity capital
nearly $11 billion as securities prices fell. In addition, sales of shares (both to the market and to
parent holding companies) and increases in capital
resulting from other transactions with parent companies declined last year. Indeed, some bank holding companies, finding that they had more capital
than they considered to be optimal, undertook share
repurchase programs.
7.
R e t a i n e d i n c o m e and c h a n g e in total e q u i t y capital,
b y s i z e o f bank, 1 9 9 1 - 9 4
Billions of dollars except as noted
Item and
size of bank
fited from successful efforts to contain expenses.
These efforts led to a decline in employment and
the first decrease in salaries, wages, and employee
benefits as a share of assets since 1988. Other
noninterest expenses also fell, partly because of
lower costs associated with foreclosed properties,
owing to earlier reductions in such holdings, as
well as the improvement in commercial real estate
markets.
Changes in net noninterest expense as a share of
assets were mixed across size categories last year
(chart 12). The ratio was higher at the ten largest
banks because of their greater dependence on trading and foreign-exchange-related activities, both of
which fared badly. Results for these banks were
greatly affected by FIN 39, without which their net
noninterest expense as a share of assets would have
increased more than twice as much. Medium-sized
and large banks showed improvements in net noninterest expense last year because of declines in
Retained income
Small
Medium
Ten largest
Net change in equity capital1
All banks
Ten largest
Net percentage change
in equity capital1
Medium
Ten largest
Percentage change in equity
capital attributable to
retained incomei
All banks
Small
Medium
Tea largest
1991
1992
1993
1994
2.8
2.1
3
A
.1
17.1
3.7
4.3
5.9
3.3
20.9
4.4
4.2
5.3
7.0
16.4
3.9
5.0
4.4
3.1
12.9
4.2
4.0
4.5
.2
31.7
5.5
7.6
8.6
10.1
33.0
7.0
8.4
8.0
9.6
15.4
3.1
5.4
3.6
3.3
^ ^ ^
BMBBIM I L L I
5.92
7.18
6.07
7.72
.58
13.75
9.20
10.97
13.43
25.94
12.59
11.56
11.22
10.39
19.13
21.95
50.41
6.50
9.04
32.52
53.98
67.21
56.49
68.21
32.91
63.35
62.57
50.00
67.06
72.49
'
5.22
4.83
6.45
4.12
5.51
106.34
128.69
92.41
119.59
93.86
1. Data are from year-end to year-end and are calculated from quarterly
merger-adjusted changes.
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
With assets growing rapidly (in part as a result of
FIN 39), the ratio of equity capital to total assets
decreased 21 basis points, to 7.79 percent, between
the end of 1993 and the end of 1994. Equity capital
as a fraction of assets declined for the larger banks
and was little changed at the smaller banks. The
decline at the ten largest banks was entirely the
result of the effect of FIN 39 on reported assets,
without which the ratio would have increased. By
contrast, the large bank category, which was far
less influenced by FIN 39, showed a decline in
capital relative to assets because assets increased
by a relatively large amount over the year. For the
medium-sized and small bank groups, capital-asset
ratios were about unchanged. Evidently, increases
due to retained earnings, share issuance, and capital infusions were nearly offset by decreases reflecting asset growth and the mark-to-market provisions
ofSFAS 115.
Regulatory capital ratios declined slightly last
year after increasing steadily over the previous four
years (chart 13).7 As noted in the box, the riskbased ratios were unaffected by SFAS 115 and
FIN 39. Their small decrease was the result of
relatively rapid growth in risk-weighted assets. In
part, this growth reflected the change in the distribution of bank assets last year, as securities
declined and loans, which generally carry higher
risk weights, grew rapidly. By contrast, leverage
ratios, which are calculated based on average
assets, were depressed by the adoption of FIN 39 in
the first quarter, especially at the largest banks.
Despite the decline in regulatory capital ratios, the
fraction of industry assets at well-capitalized
banks—adjusted for bank examiners' ratings—rose
557
to 90 percent by year-end, up from 82 percent a
year earlier and just 30 percent at the end of 1990.
DEVELOPMENTS
IN
1995
Data available in the first several months of 1995
suggested that the pace of the economic expansion
was likely slowing. The slowdown reduced, if not
eliminated, market expectations of near-term interest rate hikes. As fears that higher market interest
rates would squeeze bank net interest margins
abated, bank stock prices rose strongly. Late in the
first quarter, however, the equity prices of banks
with large operations in Mexico or other Latin
American countries declined for a time, reportedly
because of investor concerns about the implications for these banks of the financial crisis in
Mexico.
Bank balance sheet trends in the first quarter
appeared to be broadly similar to those in the
second half of 1994. Loans at the domestic offices
13. Regulatory capital ratios, by size of bank, 1990-94
7. The agencies' risk-based capital guidelines are based on the
Basle Accord and were modified by the Federal Deposit Insurance
Corporation Improvement Act of 1991. Tier 1 capital includes
mainly common equity and certain perpetual preferred stock. Tier 2
capital consists primarily of subordinated debt, non-tier-1 preferred
stock, and loan-loss reserves. Risk-weighted assets are calculated
by multiplying the amount of assets and the credit equivalent
amount of off-balance-sheet items in each risk-weight category by
a factor accounting for the credit risk of that category. U.S. regulators also consider the leverage ratio, which is defined to be tier 1
capital as a percentage of average total consolidated assets, when
deciding on various supervisory and regulatory issues affecting a
bank.
For a summary of the evolution of risk-based capital standards,
see Allan D. Brunner and William B. English, "Profits and Balance
Sheet Developments at U.S. Commercial Banks in 1992," Federal
Reserve Bulletin, vol. 79 (July 1993), pp. 661-62.
NOTE. The data are quarterly. For definitions of tier 1 and tier 2 capital
and leverage capital, see text note 7.
558
Federal Reserve Bulletin • June 1995
of U.S. commercial banks continued to expand,
while security holdings declined. In contrast to
1994, the most rapidly growing loan component in
the first quarter was commercial and industrial
loans. The LPS conducted in February showed
some additional easing of terms and standards for
such loans, and a further pickup in demand to
finance inventories, equipment purchases, and
mergers and aquisitions. By contrast, consumer
loan growth slowed relative to its pace in 1994, a
development that likely reflected a slowdown in
purchases of consumer durables. On the liability
side, core deposit growth remained sluggish, as
banks continued to fund much of their loan growth
with sales of securities and managed liabilities.
Bank profitability likely remained near last
year's elevated level in the first quarter. While net
interest margins reportedly narrowed in many
cases, profits were buoyed by rapid loan growth
and continued low levels of provisioning. Trading
results were mixed and likely remained fairly weak
on balance.
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
A.l.
559
R e p o r t o f i n c o m e , all insured d o m e s t i c c o m m e r c i a l b a n k s and n o n d e p o s i t trust c o m p a n i e s , 1 9 8 5 - 9 4
Millions of dollars
256,809
259,710
189,566
48,239
105,485
79,383
110,745
79,009
8,437
17,665
292,809
214,033
52,571
244,438
247,453
178,183
48,622
12,477
19,261
16,735
323,814
238,543
50,949
256,394
259,516
185,936
51,807
122,457
98,726
320,732
237,289
46,637
10,922
75,765
14,870
11,164
3,231
6,017
40,483
76,976
15,267
12,057
2,072
4,178
43,403
repurchase agreements
iross interest expense
Deposits
Gross federal funds purchased and
repurchase agreements
Other
157,126
130,651
143,096
117,740
18,621
22,755
20,697
16,913
Net interest income
Taxable equivalent
133,937
137,059
Loss provisions1
Noninterest income
Service charges on deposits
Income from fiduciary activities
Foreign-exchange gains and fees
Trading income
Other
Noninterest expense
Salaries, wages, and employee benefits
Expenses of premises and fixed assets
Other
51,555
10,235
8,297
2,231
1,817
28,974
82.480
40,051
13,328
29,102
90,659
43,116
14,575
32,967
55,694
11,419
8,879
2,816
2,038
30,542
60,887
12,818
9,466
2,623
3,326
32,654
67,045
14,120
10,446
3,347
2,927
36,203
116,415
52,029
17,517
46,869
Net noninterest expense
56,476
144,590
60,756
18,931
64,903
65,085
Realized gains on investment account
securities
Income before taxes and extraordinary
items
Taxes
Extraordinary items
Net income
Cash dividends declared
Retained income
1. Includes provision for allocated transfer risk.
33,660
10,015
809
66,959
22,421
-19
2,527
24,456
17,933
42,966
10,652
-8,125
13,267
11,191
15,101
2,831
22,045
20,921
44,521
28,126
16,395
560
A.2.
Federal Reserve Bulletin • June 1995
P o r t f o l i o c o m p o s i t i o n , interest rates, and i n c o m e and e x p e n s e , all insured d o m e s t i c c o m m e r c i a l b a n k s and
n o n d e p o s i t trust c o m p a n i e s , 1 9 8 5 - 9 4
A. All banks
Item
1985
1986
1 1987
1988
1989
1990
1991
1992
1993
1994
Balance sheet items as a percentage of average net consolidated assets
Interest-earning assets
Loans and leases, net
Commercial and industrial
U.S. addressees
Foreign addressees
Consumer
Credit card
Installment and other
86.68
59.59
22.16
17.41
4.75
11.04
2.63
8.41
15 88
15.42
3.22
.41
7.31
n.a.
n.a.
.45
4.03
.46
2.66
1.56
1.53
5.43
.84
.71
.81
16.84
15.62
15.62
6.84
87.11
59.09
20.87
16.84
4.02
11.38
2.98
8.40
16 90
16.35
3.51
.44
7.45
n.a.
n.a.
.50
4.45
.55
2.38
1.43
1.23
5.51
.91
.60
.94
17.85
16.28
16.28
6.24
87.48
59.12
19.98
16.57
3.41
11.42
3.17
- 8.26
1900
18.40
3.90
.47
8.22
n.a.
n.a.
.57
5.25
.60
2.28
1.35
1.04
4.98
.98
.52
1.40
18.34
17.00
17.00
6.02
88.00
59.80
19.50
16.55
2.95
11.71
3.47
8.25
20 86
20.18
4.06
.49
9.21
1.14
8.07
.59
5.83
.68
2.04
1.22
.98
4.52
1.06
.50
1.61
18.45
17.17
17.17
5.60
3.07
1.13
n.a.
1.94
5.37
1.62
n.a.
1.56
4.82
5.35
12.89
4.14
2.10
n.a.
2.04
4.40
2.44
n.a.
1.34
4.57
5.45
12.52
4.88
2.59
n.a.
2.29
3.69
2.99
n.a.
1.28
4.55
5.21
12.00
93.74
72.85
61.52
12.28
49.24
4.58
16.45
16.78
11.43
7.72
3.61
20.88
15.51
5.37
93.69
73.13
60.63
11.27
49.36
5.19
17.46
15.85
10.86
8.31
4.19
20.56
15.89
4.67
93.83
74.03
61.26
11.02
50.24
6.04
18.28
15.06
10.86
8.13
4.64
19.80
15.34
4.46
6.27
6.31
Commercial real estate loans
Other real estate owned
n.a.
.26
35.49
(billions of dollars)
2,573
In domestic offices
Construction and land development
Farmland
One- to four-family residential
Home equity
Other
Multifamily residential
Nonfarm nonresidential
In foreign offices
Depository institutions
Foreign governments
Agricultural production
Other loans
Lease-financing receivables
LESS: Unearned income on loans
LESS: Loss reserves1
Securities
Investment account
Debt
U.S. Treasury
U.S. government agency and
corporation obligations
2.80
.96
Mortgage pass-through securities
Collateralized mortgage obligations ..
n.a.
Other
1.84
State and local government
• 4.87
Other
1.10
Equity2
a.a.
Trading account
1.22
Gross federal funds sold and reverse RPs
4.48
Interest-bearing balances at depositories
5.77
Non-interest-earning assets
13.32
Liabilities
Interest-bearing liabilities
Deposits
In foreign offices
In domestic offices
Other checkable deposits
Savings (including MMDAs)
Small denomination time deposits
Large denomination time deposits
Gross federal funds purchased and RPs
Other
Non-interest-bearing liabilities
Demand deposits in domestic offices
Other
Capital account
87.93
60.64
19.09
16.54
2.55
11.89
3.69
8.20
22 50
21.78
4.16
.51
10.15
1.42
8,73
.60
6.36
.72
1.76
1.03
.96
4.31
1.10
.48
1.52
18.38
17.13
16.84
4.98
87.81
60.52
18.50
15.99
2.51
11.77
3.78
7.99
23 86
23.10
4.00
.51
11.20
1.67
9.54
.63
6.76
.76
1.60
.78
.95
3.93
1.12
.42
1.57
19.09
17.63
17.36
4.57
88.03
59.54
17.33
15.00
2.33
11.45
3.88
7.57
24 86
24.10
3.41
.53
12.27
1.95
10.32
.66
7.23
.76
1.42
.75
1.01
3.60
1.09
.36
1.62
20.69
18.93
18.62
5.06
88.33
57.30
15.78
13.54
2.24
11.02
3.82
7.20
24 87
24.18
2.64
.56
12.91
2.09
10.82
.75
7.32
.69
1.24
.73
1.02
3.50
1.03
.28
1.60
23.52
21.18
20.82
6.49
1.07
: .67
.99
3.56
.99
.21
1.51
25.37
22.50
22.12
7.07
86.60
56.07
14.51
12.36
2.16
11.43
4.21
7.22
24 43
23.80
1.65
.56
13.74
1.91
11.84
.79
7.06
.63
1.42
.41
1.00
3.34
1.03
.16
1.36
24.31
21.60
21.21
6.77
6.03
3.27
2.77
3.14
2.69
.29
1.25
4.33
4.58
12.07
7.56
4.08
1.28
2.20
2.64
2.59
.27
1.46
4.46
3.74
12.19
8.74
4.51
2.07
2.16
2.28
2.53
.31
» 1.77
4.58
3.21
11.97
9.86
4.52
3.12
2.21
2.08
2.40
.37
2.34
4.54
2.97
11.67
10.73
4.74
3.72
2.27
2.06
2.25
.38
2.87
4.27
2.62
11.50
10.24
4.67
3.24
2.33
2.01
2.18
.39
2.71
3.82
2.40
13.40
93.84
75.40
62.06
10.41
51.65
6.25
17.60
16.25
11.55
8.02
5.31
18.44
14.25
4.20
93.63
76.02
62.56
9.68
52.88
6.12
16.27
18.37
12.12
8.22
5.24
17.61
13.48
4.13
93.59
76.53
63.42
9.25
54.17
6.19
16.58
19.%
11.43
8.03
5.08
17.06
12.79
4.27
93.33
76.58
64.44
8.55
55.89
6.72
17.98
21.29
9.90
7.09
5.04
16.75
12.58
4.17
92.82
75.32
62.93
8.37
54.56
7.65
20.27
19.21
7.42
7.02
5.37
17.50
13.24
4.27
92.15
73.93
60.26
8.32
51.94
8.24
20.90
16.98
5.81
7.47
6.19
18.22
13.86
. 4.37
92.12
71.86
57.35
9.39
47.96
7.80
19.60
15.33
5.23
7.60
6.91
20.26
13.49
6.77
6.17
6.16
6.37
6.41
6.67
7.18
7.85
7.88
n.a.
.30
35.07
n.a.
.35
35.13
n.a.
.39
35.74
n.a.
.40
35.71
n.a.
.51
34.25
11.37
.76
31.01
10.60
.82
28.65
9.84
.63
28.23
9.15
.36
29.57
2,775
2,922
3,048
3,188
3,339
3,380
3,442
3,566
3,863
JUL
88.50
56.25
14.88
12.72
2.16
11.00
3.89
7.11
24 81
24.19
1.99
.57
13.49
2.07
11.42
.79
7.33
.62
MEMO
•
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
561
A.2.—Continued
A. All banks
1985
Item
1986
1987
1988
1989
1990
1991
1992
1993
1994
Effective interest rate (percent)3
Rates earned
Interest-earning assets
Taxable equivalent
Loans and leases, gross
Net of loss provisions
Securities
Taxable equivalent
Investment account
U.S. government and other debt
State and local
Equity2
Trading account
Gross federal funds sold and reverse RPs
Interest-bearing balances at depositories
11.12
11.63
11.98
10.82
9.44
11.04
9.39
10.45
7.03
nj.
10.11
8.12
9.47
9.42
9.66
10.22
8.08
8.09
8.96
7.94
8.18
7.26
n.a.
10.01
6.56
7.55
9.99
10.20
10.79
9.86
8.35
9.05
8.03
8-21
7.37
n.a.
12.63
7.33
8.69
11.11
11.27
11.99
10.43
8.71
9.26
8.54
8.78
7.44
7.73
11.11
9.12
10.58
10.66
10.79
11.47
9.92
8.78
9.21
8.66
8.91
7.37
7.32
10.15
8.06
9.96
9.53
9.65
10.36
8.69
8.16
8.54
8.22
8.39
7.25
6.19
7.52
5.67
8.43
8.27
8.38
9.19
7.87
7.03
7.35
7.11
7.17
6.81
5.31
6.40
3.58
7.31
7.60
7.71
8.67
7.86
6.07
6.36
6.06
6.06
6.26
4.77
6.16
3.03
6.61
7.60
7.69
8.61
8.12
5.96
6.21
5.78
5.79
5.87
4.79
7.41
4.24
5.71
8.49
8.18
9.48
7.87
n.a.
n.a.
8.73
n.a.
7.97
Rates paid
Interest-bearing liabilities
Interest-bearing deposits
In foreign offices
In domestic offices
Other checkable deposits
Savings (including MMDAs)
Large denomination CDs
Other time deposits
Gross federal ftmds purchased and RPs
9.90
10.43
10.80
9.43
8.44
10.09
8.50
9.14
7.19
n.a.
7.83
6.69
7.86
7.17
6.93
7.79
6.75
n.a.
n.a.
7.34
n.a.
6.78
6.75
6.38
7.90
6.04
4.54
5.28
6.86
6.97
6.51
7.22
6.81
8.90
6.39
4.74
5.52
7.37
7.28
7.30
8.50
7.85
10.87
7.30
4.82
6.17
8.62
8.27
9.18
8.03
7.56
10.71
7.00
4.78
5.98
8.02
7.96
7.96
6.51
6.31
8.54
5.97
4.32
5.08
6.66
6.88
5.73
4.75
4.50
7.32
4.07
2.69
3.25
4.89
5.14
3.64
4.01
3.64
6.82
3.14
1.98
2.49
3.98
4.18
3.07
4.01
3.53
5.59
3.14
1.85
2.57
4.09
4.17
4.19
Income and expenses as a percentage of average net consolidated assets
9.63
10.07
7.13
1.47
.37
.67
Gross interest expense
Deposits
Gross federal funds purchased and RPs
Net interest income
Taxable equivalent
Loss provisions4
|
8.58
9.03
6.34
1.38
.33
.53
8.38
8.59
6.17
1.35
.31
.54
8.94
9.12
6.61
1.38
.34
.60
9.92
10.06
7.44
1.46
.41
.61
9.58
9.70
7.14
1.53
.38
.54
8.56
8.66
6.33
1.56
.27
.41
7.45
754
5.40
1.51
.17
.37
6.85
6.94
5.00
1.36
.13
.36
6.65
6.72
4.91
1.25
.17
.33
6.11
5.08
.64
.38
Gross interest income
Taxable equivalent
Loans
Securities
Gross federal funds sold and reverse RPs
Other
5.16
4.24
.57
.34
4.96
3.96
.54
.46
5.41
4.25
.61
.55
6.42
4.93
.78
.71
6.13
4.83
.68
.62
4.96
4.11
.43
.43
3.56
2.87
.27
.42
2.96
2.23
.24
.50
2.87
2.05
.32 I
.50
3.53
3.96
3.42
3.87
3.42
3.63
3.52
3.71
3.51
3.64
3,45
3.57
3.60
3.70
3.89
3.98
3.90
3.98
3.78
3.86
.69
.80
1.29
.57
.97
.97
1.02
.78
.47
.28
Noninterest income
Service charges on deposits
Income from fiduciary activities
Foreign-exchange gains and fees
Trading income
Other
1.22
.29
.21
.06
.03
.62
1.31
.29
.23
.06
.05
.69
1.43
.30
.24
.09
.04
.77
1.49
.31
.24
.07
.05
.82
1.62
.32
.26
.07
.06
.91
1.67
.34
.27
.08
.06
.91
1.80
.38
.28
.08
.10
.97
1.95
.41
.30
.10
.09
1.05
2.12
.42
.31
.09
.17
1.14
1.99
.40
.31
.05
.11
1.12
Noninterest expense
Salaries, wages, and employee benefits
Expenses of premises and fixed assets
Other
3.21
1.56
.52
1.13
3.27
1.55
.53
1.19
3.34
1.55
.52
3.41
1.55
.52
1.34
3.49
1.56
.52
1.40
3.73
1.58
.53
1.61
3.86
1.61
.53
3.93
1.64
.52
1.27
3.35
1.54
.52
1.29
1.72
1.77
3.74
1.57
,49
1.68 !
Net noninterest expense
1.99
1.96
1.91
1.85
1.79
1 82
1.93
1.91
1.81
1.75
Realized gains on investment account securities ..
.06
.14
.05
.01
.02
.01
.09
.12
.09
-.01
Income before taxes and extraordinary items
Taxes
Extraordinary items
.90
.22
.01
.80
.19
.01
.26
.19
.01
1.10
.33
.03
.77
.30
.01
.68
.23
.02
.75
.24
.03
1.32
.42
.01
1.70
.56
.06
1.73
.58
Net income
Cash dividends declared
Retained income
.69
.33
.36
.62
.33
.29
.09
.36
-.28
.80
.44
.37
.48
.44
.04
.47
.42
.05
.53
.45
.08
.91
.41
.50
1.20
.62
.59
1.15
11.08
9.87
1.40
13.04
7.55
7.36
7.95
12.68
15.35
14.63
MEMO: Return on equity
* In absolute value, less than 0.005 percent.
NOTE. For definitions of managed liabilities and commercial real estate loans, see text table 2, notes 1 and 2.
n.a. Not available.
MMDA Money market deposit account.
RP Repurchase agreement.
CD Certificate of deposit.
1. Includes allocated transfer risk reserve.
2. As in the Call Report, equity securities are combined with "other debt securities" before 1989.
3. Where possible, based on an average of quarterly average balance sheet data reported on schedule RC-K of the quarterly Call Report.
4. Includes provision for allocated transfer risk.
*
.73
.42
562
A.2.
Federal Reserve Bulletin • June 1995
P o r t f o l i o c o m p o s i t i o n , interest rates, and i n c o m e and e x p e n s e , all insured d o m e s t i c c o m m e r c i a l banks and
n o n d e p o s i t trust c o m p a n i e s , 1 9 8 5 - 9 4
B. Ten largest banks by assets
Item
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
Balance sheet items as a percentage of average net consolidated assets
Interest-earning assets
Loans and leases, net
Commercial and industrial
U.S. addressees
Foreign addressees
Consumer
Credit card
Installment and other
Real estate
In domestic offices
Construction and land development
Farmland
One-to four-family residential
Home equity
Other
Multifamily residential
Nonfann nonresidential
In foreign offices
Depository institutions
Foreign governments
Agricultural production
Other loans
Lease-financing receivables
LESS: Unearned income on loans
LESS: Loss reserves'
Securities
Investment account
Debt
U.S. Treasury
U.S. government agency and
corporation obligations
Mortgage pass-through securities
Collateralized mortgage obligations ..
Other
State and local government
Other
Equity2
Trading account
Gross federal funds sold and reverse RPs
Interest-bearing balances at depositories
Non-interest-earning assets
85.08
61.45
26.68
13.74
12.95
6.50
2.46
4.03
12.30
10.22
2.67
.07
4.76
n.a.
n.a.
.48
2.24
2.07
5.01
3.77
.42
6.85
1.37
.39
1.06
11.71
6.91
6.91
1.60
85.14
59.36
24.53
13.31
11.22
6.41
2.34
4.07
13.97
11 69
3.21
.06
5.17
n.a.
n.a.
.61
2.63
2.28
5.18
3.64
.36
6.51
1.38
.41
2.22
12.59
8.19
8.19
1.47
85.22
58.69
23.36
13.01
10.36
6.19
2.08
4.10
15.46
12 80
3.48
.06
5.83
.76
5.07
.65
2.78
2.66
5.21
3.63
.33
6.23
1.44
.43
2.74
12.96
8.67
8.67
1.41
85.16
59.66
22.61
13.18
9.43
6.21
1.99
4.22
18.02
15 05
3.60
.08
7.45
1.04
6.41
.68
3.23
2.97
4.56
3.34
.31
6.36
1.49
.45
2.77
13.13
9.05
8.83
1.29
84.85
61.69
22.91
13.39
9.53
6.87
2.20
4.67
20.56
17 36
3.79
.08
9.31
1.31
8.00
.68
3.51
3.20
3.64
2.76
.31
6.05
1.60
.39
2.63
14.03
9.22
8.98
1.09
85.41
62.14
22.42
13.44
8.97
7.20
2.53
4.67
21.68
18 37
3.42
.08
10.34
1.63
8.71
.57
3.95
3.32
3.05
2.88
.31
5.61
1.68
.35
2.34
15.58
9.38
9.08
1.35
85.16
58.34
20.32
12.00
8.32
7.31
2.61
4.70
19.93
17 07
2.48
.07
10.08
1.63
8.46
.58
3.86
2.85
2.56
2.75
.28
6.05
1.51
.27
2.08
19.13
10.70
10.36
2.30
84.79
55.57
18.65
10.75
7.90
7.33
2.50
4.83
18.54
15 99
1.59
.07
10.29
1.60
8.68
.53
3.51
2.55
2.35
2.46
.27
6.82
1.30
.21
1.94
22.74
12.45
12.08
2.39
77.16
49.91
16.43
9.16
7.27
6.59
2.28
4.31
16.21
13 80
.84
.06
9.69
1.40
8.29
.41
2.79
2.41
3.37
1.27
.25
6.44
1.14
.16
1.63
20.61
11.68
11.30
2.17
.55
.46
n.a.
.09
1.53
1.78
n.a.
3.55
3.53
8.39
15.67
.68
.59
n.a.
.09
1.99
2.64
n.a.
4.80
3.57
8.35
14.92
1.54
1.47
n.a.
.07
1.93
3.25
n.a.
4.40
3.91
9.28
14.86
1.94
1.84
n.a.
.10
1.80
3.52
n.a.
4.29
4.61
8.97
14.78
2.29
2.07
n.a.
.22
1.58
3.68
.22
4.08
4.12
8.26
14.84
2.91
2.24
.55
.13
1.08
3.90
.24
4.81
2.88
6.25
15.15
3.46
2.26
1.12
.08
.77
3.50
.30
6.19
2.96
4.74
14.59
4.45
2.43
1.97
.05
.66
2.95
.33
8.43
3.23
4.45
14.84
6.14
3.30
2.76
.08
.59
2.97
.36
10.30
2.71
3.76
15.21
5.16
2.79
2.31
.06
.60
3.37
.38
8.93
2.68
3.95
22.84
95.18
72.45
57.44
34.60
22.85
1.27
8.81
4.65
8.12
7.95
7.06
. 22.72
11.34
11.38
95.13
72.61
56.56
32.43
24.14
1.89
10.32
4.59
7.34
8.08
7.96
22.52
12.55
9.97
95.58
73.08
57.46
32.60
24.86
2.45
11.04
4.55
6.82
6.89
8.74
22.50
12.64
9.86
95.41
73.76
57.67
31.49
26.18
2.68
11.42
5.03
7.05
6.40
9.69
21.65
11.93
9.71
95.11
74.17
57.56
30.08
27.49
2.70
11.32
5.64
7.82
6.72
9.89
20.94
11.60
9.34
95.29
73.97
57.95
29.66
28.28
2.74
12.05
6.16
7.33
6.90
9.13
21.32
10.93
10.39
94.97
74.62
57.67
28.47
29.19
3.00
13.50
6.55
6.14
6.80
10.15
20.35
10.36
9.99
94.44
73.08
55.73
27.16
28.56
3.38
14.91
5.72
4.56
6.19
11.16
21.36
11.05
10.30
93.24
71.56
52.91
25.51
27.41
3.45
15.33
5,09
3.53
6.70
11.94
21.68
11.27
10.41
93.42
64.33
48.20
26.10
22.10
2.91
12.70
3.98
2.51
5.83
10.29
29.09
10.15
18.95
4.82
Liabilities
Interest-bearing liabilities
Deposits
In foreign offices
In domestic offices
Other checkable deposits
Savings (including MMDAs)
Small denomination time deposits
Large denomination time deposits
Gross federal funds purchased and RPs
Other
Non-interest-bearing liabilities
Demand deposits in domestic offices
Other
84.33
63.11
30.68
15.33
15.35
5.62
2.14
3.49
10.37
8.67
2.24
.07
4.10
n.a.
n.a.
.41
1.85
1.71
5.29
3.94
.48
6.67
1.29
.36
.87
9.29
5.75
5.75
1.89
4.87
4.42
4.59
4.89
4.71
5.03
5.56
6.76
6.58
n.a.
.14
59.32
n.a.
.18
57.37
n.a.
.21
56.79
n.a.
.22
56.34
n.a.
.23
56.24
n.a.
.42
54.74
8.48
.78
53.18
7.43
1.13
50.76
5.92
1.02
49.17
4.24
.58
46.16
646
681
691
693
725
717
775
818
949
MEMO
Commercial real estate loans
Other real estate owned
Managed liabilities
Average net consolidated assets
(billions of dollars)
m
1
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
563
A.2.—Continued
B. Ten largest banks by assets
Item
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
8.15
8.18
8.89
8.38
7.09
3
Effective interest rate (percent)
Rates earned
Interest-earning assets
Taxable equivalent
Loans and leases, gross
Net of toss provisions
Securities
Taxable equivalent
U.S. government and other debt
State and local
Equity0
Trading account
Gross federal funds sold and reverse RPs
Interest-bearing balances at depositories
Rates paid
Interest-bearing liabilities
Interest-bearing deposits
In foreign offices
In domestic offices
Other checkable deposits
Savings (including MMDAs)
Large denomination CDs
Other time deposits
Gross federal funds purchased and RPs
11.27
11.60
11.91
10.74
9,95
10.89
9.69
10.70
6.90
9.69
10.04
10.39
9.09
8.58
9.56
8.85
9.49
7.28
9.56
9.59
10.13
6.63
9.49
9.66
8.70
9.07
7.52
10.74
10.87
11.33
10.68
10.52
11.06
8.67
8.91
7.74
n.a.
n.a.
n.a.
10.35
7.72
9.61
8.18
6.24
7.90
10.96
6.13
7.68
14.33
7.31
9.13
12.31
12.31
13.18
10.86
10.11
10.09
9 20
9.56
7.69
6.81
12.13
8.97
10.88
9.38
8.68
9.58
7.52
7.65
7.11
7.88
6.22
n.a.
n.a.
n.a.
n.a.
7.83
6.97
8.00
5.63
3.26
5.13
7.29
6.38
6.52
8.74
7.76
9.00
6.26
4.41
5.53
7.73
7.08
7.41
10.74
9.19
10.%
7.27
4.39
6.48
8.87
8.25
9.27
n.a.
11.65
11.70
12.28
11.10
9.84
10.01
9 33
9.68
7.53
5.82
10.75
8.01
11.06
9.91
9.95
10.45
8.59
8.52
8.64
899
9.28
7.67
4.22
7.84
5.60
10.05
8.67
8.72
9.36
7.50
7.38
7.54
7 96
8.13
7.40
4.04
6.69
3.65
9.29
8.16
8.20
9.07
7.95
6.69
6.77
690
6.99
6.99
3.72
6.45
3.02
8.34
10.18
9.03
11.11
6.81
4.35
6.21
7.95
7.75
7.75
7.70
7.09
8.76
5.46
3.92
5.08
6.49
6.07
5.98
6.17
5.33
7.55
3.24
1.96
2.95
4.66
3.81
4.04
5.60
4.50
6.87
2.36
1.28
2.14
3.55
3.01
3.26
7.19
6 57
6.70
6.35
3.27
7.79
4.52
7.27
i i i « «
9.03
7.23
rta.
n.a.
7.99
6.87
5.43
4.32
6.04
2.35
1.10
2.35
3.12
2.80
4.05
Income and expenses as £ percentag e of averaj e net consolidated assets
Gross interest income
Taxable equivalent
Loans
Securities
Gross federal funds sold and reverse RPs
Other
9.49
9.76
7.45
.56
.29
1.19
8.19
8.49
6.28
.61
.26
1.04
8.45
8.48
6.23
.71
.29
1.22
9.51
9.62
6.92
.75
.40
1.44
10.82
10.83
8.22
.83
.37
1.39
10.37
10.43
7.96
.86
.25
1.30
8.77
8.80
6.77
.84
.17
.98
7.68
7.72
5.65
.85
.14
1.05
7.22
7.26
5.22
.86
.11
1.04
6.37
6.40
4.49
.77
Gross interest expense
Deposits
Gross federal funds purchased and RPs
Other
6.75
5.15
.74
.86
5.50
4.15
.75
5.77
4.18
.52
1.07
6.50
4.55
.58
1.37
8.01
5.37
.72
1.92
7.65
5.41
.64
1.60
5.81
4.23
.43
1.15
4.54
3.09
.28
1.17
4.06
2.48
.24
1.35
3.52
2.15
.24
1.13
2.74
3.01
2.70
2.99
2.68
2.71
3.01
3.12
2.81
2.82
2.72
2.78
2.95
2.99
3.15
3.18
3.16
3.19
2.86
2.88
Taxable equivalent
Loss provisions4
.15
.97
.73
.79
2.15
.40
1.45
.77
1.21
1.12
.64
.26
1.33
.11
.18
.19
.05
.80
1.59
.13
.21
.20
.09
.97
1.94
.16
.23
.29
.10
1.16
2.07
.19
.23
.26
.15
1.24
2.19
.21
.27
.25
.17
1.29
2.27
.23
.31
.30
.21
1.21
2.40
.26
.33
.28
.36
1.16
2.59
.30
.37
.36
.30
1.27
2.99
.30
.39
.31
.60
1.38
2.33
.26
.36
.15
.39
1.18
Noninterest expense
Salaries, wages, and employee benefits
Expenses of premises and fixed assets
Other
2.68
1.36
.48
.84
2.95
1.50
.54
.91
3.20
1.60
.58
1.03
3.28
1.63
.60
1.05
3.43
1.66
.62
1.15
3.55
1.74
.65
1.16
3.83
1.79
.66
1.38
3.86
1.78
.65
I A3
4.13
1.88
.66
1.59
3.56
1.65
.55
1.36
Net noninterest expense
1.35
1.36
1.26
1.21
1.24
1.28
1.43
1.27
1.14
1.23
Realized gains on investment account securities ..
.06
.12
.07
.03
.03
.02
.04
.11
.13
.02
Income before taxes and extraordinary items
.71
.25
.68
.22
<
K
-.66
.14
1.43
.44
.08
.16
.38
.03
.69
.27
.06
.35
.17
.03
.87
.26
1.39
.48
ifSfipllllj
1.50
.53
.16
.46
.24
.22
.46
.21
.25
-.80
.28
-1.08
1.07
.38
.69
-.19
.37
-.57
.48
.26
.22
.22
.21
.01
.61
.18
.43
1.13
.28
.85
.91
.58
.33
9.59
9.46
-18.11
23.28
-3.92
10.13
4.35
10.91
16.75
13.86
Noninterest income
Service charges on deposits
Income from fiduciary activities
Trading income
Other
Extraordinary items
Net income
Cash div idends declared
MEMO: Return on equity
•
* In absolute value, less than 0.005 percent.
NOTE. For definitions of managed liabilities and commercial real estate loans, see text table 2, notes 1 and 2.
n.a. Not available.
MMDA Money market deposit account.
RP Repurchase agreement.
CD Certificate of deposit.
1. Includes allocated transfer risk reserve.
2. As in the Call Report, equity securities are combined with "other debt securities" before 1989.
3. Where possible, based on an average of quarterly average balance sheet data reported on schedule RC-K of the quarterly Call Report.
4. Includes provision for allocated transfer risk.
mmmmM
564
A.2.
Federal Reserve Bulletin • June 1995
P o r t f o l i o c o m p o s i t i o n , interest rates, and i n c o m e and e x p e n s e , all insured d o m e s t i c c o m m e r c i a l b a n k s and
n o n d e p o s i t trust c o m p a n i e s , 1 9 8 5 - 9 4
C. Banks ranked 11th through 100th by assets
Item
1985
1986
1 1987
1988
J 1989
1990
1991
1992
1993
1994
Balance sheet items as a percentage of average net consolidated assets
'^lilllPllllii
Interest-earning assets
Commercial and industrial
U.S. addressees
Foreign addressees
Consumer
Credit card
sU-Installment and other
Real estate
In domestic offices
Construction and land development
Farmland
One- to four-family residential
Home equity
Other
Multifamily residential
Nonfaim nonresidential
In foreign offices
Depository institutions
Foreign governments
Agricultural production
Other loans
Lease-financing receivables
LESS: Unearned income on loans
LESS: Loss reserves'
Securities
Investment account
Debt
U.S. Treasury
U.S. government agency and
corporation obligations
Mortgage pass-through securities
Collateralized mortgage obligations ..
Other
State and local government
Other
Equity2
Trading account
Gross federal funds sold and reverse RPs
Interest-bearing balances at depositories
Non-interest-earning assets
Liabilities
Interest-bearing liabilities
In foreign offices
In domestic offices
Other checkable deposits
Savings (including MMDAs)
Small denomination time deposits
Large denomination time deposits
Gross federal funds purchased and RPs
Other
Non-interest-bearing liabilities
Demand deposits in domestic offices
Other
Capital account
84.91
61.88
24.20
21.09
3.11
11.19
4.16
7.04
13.76
13.65
4.46
.08
5.71
n.a.
n.a.
.31
3.09
.12
3.37
1.91
.51
7.18
1.20
.56
.90
11.55
10.54
1034
4.54
85.64
61.77
24.13
21.21
2.92
11.80
4.50
7.30
13.94
13,77
4.79
.09
5.27
n.a.
n.a.
.32
3.30
.17
2.83
1.65
.36
7.26
1.33
.49
1.03
14.11
13.02
13.02
4.69
86.20
61.70
23.72
21.22
2.50
11.73
4.40
7.33
16,05
15.83
5.24
.10
5.88
n.a.
n.a.
.39
4.22
.22
2.51
1.53
.30
6.25
1.52
1 .40
1.51
15.26
14.45
14.45
5.06
1.32
.81
n.a.
.52
3.93
.75
n.a.
1.01
3.69
7.79
15.09
2.05
1.40
n.a.
.65
5.08
1.20
n.a.
1.09
3.17
6.58
14.36
3.13
2.36
n.a.
.77
4.07
2.18
n.a.
.81
3.07
6.16
13.80
.82
3.68
6.01
12.77
94.50
71.28
53.99
11.85
42.14
3.57
14.73
11.40
12.44
13.13
4.15
23.22
17.13
6.09
94.36
71.54
51.42
10.45
40.97
3.84
15.17
10.31
11.65
14.80
5.31
22,82
17.61
5.21
94.56
73.01
52.61
10.14
42.48
4.42
16.02
9.63
12.40
14.52
5.87
21.55
16.62
4.93
94.77
75.34
55.02
9.68
45.34
4.68
15.67
11.05
13.95
13.72
6.59
19.44
15.04 if:
4.40
5.50
5.64
5.44
n.a.
.19
41.85
n.a.
.17
42.56
668
735
87.23
86.91
61.99
62.61
23.45
22.75
21.43
21.23
2.02
1.53
12.97
12.20
5.82
4.85
7.16
7.35
17.94
19.09
17.65
18.85
527 V 5.25
:
.12
.11
6.85 1 7.54
1.17
t.41
6.13
5.68
.43
.45
4.99
5.49
.29
.24
1.84
1.55
1.22
.88
.29
.29
5.17
5.54
1.69 \
1.73
.34
37
1.80
1.48
15.54
15.21
14.73
14.38
14.73 1 14.16
4.89
4.10
86.81
61.22
21.76
20.44
1.33
12.25
5.49
6.76
20.21
20.03
4.91
.12
8.53
1.66
6.86
.46
6.01
.18
1.57
.52
.28
4.82
1.67
.26
1.60
16.20
15.32
15.14
3.42
86.87
60.08
20.53
19.30
1.24
11.66
5.04
6.62
21.51
21.37
4.00
.12
10.17
2.07
8.10
.54
6.53
.14
1.58
.39
.31
4.55
1.53
.22
1.76
17.38
16.24
16.02
3.78
87.97
58.30
18.83
17.78
1.05
11.72
5.16
6.56
21.89
21.78
3.02
.14
11.36
2.50
8.85
.66
6.61
.11
1.43
.33
.31
4.28
1.49
.17
1.79
20.38
19.24
18.99
5.88
88.36
57.33
18.03
17.05
.98
11.47
5.23
6.24
22.12
22.02
2.08
.13
12.30
2.54
9.76
.71
6.79
.10
1.30
.30
.29
4.05
1.47
.11
1.60
21.97
20.59
20.34
7.05
88.16
58.56
18.03
17.00
1.03
12.62
5.99
6.63
22.26
22.17
1.63
.14
12.98
2.33
10.64
.71
6.72
.09
1.49
.28
.29
3.47
1.60
.07
1.41
21.19
19.82
19.50
6.85
5.01
4.03
B.a.
/ .98
2.70
235
.22
.83
3.71
5.38
13.09
7.42
5.32
1.58
.53
2.03
2.27
.18
.88
4.41
4.98
13.19
8.43
5.38
2.48
.57
1.63
2.19
.22
1.13
4.90
4.51
13.13
9.26
5.22
3.54
.50
1.46
2.39
.25
1.14
4.78
4.52
12.03
9.54
5.21
3.71
.63
1.32
2.43
.26
1.37
4.98
4.08
11.64
9.28
5.31
3.07
.91
1.21
2.15
32
138
5.11
3.30
11.84
94.45
76.23
56.45
8.63
47.82
4.67
14.58
13.49
15.08
13.22
6.57
18.22
13.86
4.36
94.35
77.02
57.46
7.84
49.62
4.75
15.50
15.59
13.79
13.03
6.53
17.33
13.23
4.10
93.93
76.06
59.23
6.69
52.54
5.36
17.62
17.99
11.56
10.94
5.89
17.87
13,76
4.11
93.13
74.66
56.99
6.20
50.79
6.26
20.21
15.98
8.34
11.45
6.22
18,47
14.52
3.95
92.56
73.38
54.22
6.78
47.44
7.21
20.60
14.19
5.44
11.93
7.23
19.18
15.38
3.80
92.47
72.86
53.04
8.05
44.98
6.91
20.13
13.26
4.68
11.49
8.34
19.62
15.27
4.34
5.23
5.55
5.65
6.07
6.87
7.44
7.53
n.a.
.22
43.29
n.a.
.31
44.27
n.a.
.30
43.81
n.a.
.46
41.50
11.28
.76
35.41
10.43
.70
32.53
9.58
.47
31.69
8.98
.25
32.83
802
870
940
995
1,006
1,003
1,083
1,204
3.58
2.96
n.a.
.61
3.32
2.94
MEMO:
Commercial real estate loans
Other real estate owned
Managed liabilities
Average net consolidated assets
(billions of dollars)
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
565
A.2.—Continued
C. Banks ranked 11th through 100th by assets
Item
1985
1987
1986
1988
1989
1990
1991
1992
1993
1994
Effective interest rate (percent)3
Rates earned
Interest-earning assets
Taxable equivalent
Loans and leases, gross
Net of loss provisions
Securities
Taxable equivalent
Investment account
U.S. government and other debt
State and local
Equity2
Trading account
Gross federal funds sold and reverse RPs
Interest-bearing balances at depositories
Rates paid
Interest-bearing liabilities
Interest-bearing deposits
In foreign offices
In domestic offices
Other checkable deposits
Savings (including MMDAs)
Large denomination CDs
Other time deposits
Gross federal funds purchased and RPs
10.92
11.48
11.61
10.58
9.06
10.94
9.01
10.46
6.56
n.a.
9.56
8.16
9.40
9.73
10.35
10.47
9.17
8.05
10.10
8.18
8.%
6.95
n.a.
6.55
6.58
7.88
9.19
9.41
9.77
7.33
7.87
8.69
7.92
8.25
7.09
n.a.
6.99
6.58
7.68
9.68
9.89
10.29
9.40
8.10
8.83
8.12
8.37
7.24
n.a.
7.67
6.73
8.83
11.06
11.23
11.70
9.85
8.73
9.34
8.73
9.03
7.37
9.19
8.66
9.29
11.33
10.42
10.51
11.06
9.05
8.82
9.14
8.87
9.14
7.24
8.09
8.01
8.10
9.72
9.19
9.29
9.84
7.91
8.14
8.49
8.27
8.40
7.23
7.32
6.45
5.77
8.13
7.97
8.07
8.74
7.45
6.99
7.30
7.12
7.15
6.78
6.71
4.73
3.70
6.76
7.36
7.45
8.25
7.46
6.06
6.33
6.15
6.15
6.40
5.23
4.74
3.11
6.50
7.26
7.34
8.19
7.66
5.68
5.91
5.67
5.66
6.04
5.00
5.75
4.27
4.69
8.45
8.14
9.31
7.84
n.a.
n.a.
8.74
n.a.
8.03
7.12
6.91
7.66
6.72
n.a.
n.a.
7.43
n.a.
6.85
6.75
6.42
7.78
6.10
4.43
5.27
7.01
7.06
6.63
7.16
6.86
8.87
6.43
4.41
5.56
7.41
7.33
7.23
8.63
8.10
11.07
7.57
4.54
6.40
8.68
8.67
9.33
7.93
7.52
10.08
7.11
4.63
6.04
8.08
8.05
8.11
6.33
6.19
8.37
5.91
4.14
4.96
6.71
6.83
5.70
4.42
4.30
7.26
3.95
2.43
3.07
5.09
5.06
3.57
3.76
3.51
7.37
2.99
1.70
2.33
4.30
4.06
3.04
3.70
3.24
4.60
3.01
1.61
2.44
4.20
4.15
4.28
Income and expenses as a percent of average net consolidated assets
9.19
9.64
7.15
.95
.28
.81
8.19
8.70
6.36
1.06
.20
.56
8.04
8.23
6.19
1.14
.20
.51
8.55
8.74
6.57
1.20
.22
.56
9.74
9.87
7.48
1.26
.36
.65
9.27
9.36
6.98
1.36
.37
.56
8.14
8.22
6.07
1.34
.28
.45
7.12
7.19
5.23
1.37
.19
.34
6.58
6.65
4.85
1.27
.15
.32
6.43
6.49
4.89
1.12
.21
.21
Gross interest expense
Deposits
Gross federal funds purchased and RPs
Other
5.89
4.42
1.06
.40
4.95
3.58
1.01
.37
4.85
3.40
.96
.48
5.32
3.78
1.00
.54
6.47
4.57
1.24
.66
6.06
4.34
1.12
.60
4.74
3.70
.67
.38
3.26
2.48
.43
.35
2.74
1.93
.38
.43
2.66
1.72
.51
.43
Net interest income
Taxable equivalent
3.30
3.75
3.24
3.75
3.19
3.38
3.23
3.42
3.27
3.40
3.21
3.30
3.40
3.47
3.86
3.93
3.85
3.91
3.77
3.83
Gross interest income
Taxable equivalent
Loans
Gross federal funds sold and reverse RPs
Other
Loss provisions4
.63
.79
1.55
.57
1.18
1.27
1.19
.78
.47
.32
Noninterest income
Service charges on deposits
Income from fiduciary activities
Foreign-exchange gains and fees
Trading income
Other
1.40
.27
.31
.04
.05
.74
1.45
.27
.34
.03
.05
.75
1.53
.29
.36
.05
.02
.81
1.60
.30
.34
.04
.03
.88
1.86
.30
.35
.05
.04
1.12
1.84
.34
.33
.06
.03
1.09
2.03
.40
.36
.05
.05
1.18
2.25
.44
.38
.05
.04
1.33
2.29
.46
.38
.05
.08
1.32
2.25
.45
.39
.04
.04
1.33
Noninterest expense
Salaries, wages, and employee benefits
Expenses of premises and fixed assets
Other
3.17
1.55
.51
1.11
3.16
1.50
.50
1.17
3.23
1.48
.49
1.26
3.18
1.46
.49
1.24
3.32
1.47
.50
1.35
3.43
1.46
.49
1.48
3.72
1.50
.50
1.72
3.98
1.53
.49
1.95
3.95
1.52
.48
1.95
3.85
1.49
.47
1.88
Net noninterest expense
1.59
1.46
1.59
1.69
1.73
1.66
1.60
.04
.03
.14
.15
.09
-.01
.67
.18
.38
.15
.01
.66
.19
.03
1.50
.48
.03
1.82
.56
1.84
.62
1.77
1.71
1.70
Realized gains on investment account securities . . .
.05
.17
.05
Income before taxes and extraordinary items
Taxes
Extraordinary items
.95
.21
.01
.91
.20
.01
•
.74
.26
.48
.72
.32
.39
-.09
.34
-.43
.81
.41
.40
.49
.40
.09
.24
.37
-.13
.51
.47
.04
1.04
.46
.58
1.26
.76
.49
1.22
.86
.36
13.48
12.73
-1.69
15.52
8.81
4.26
8.34
15.18
16.88
16.21
Cash dividends declared
Retained income
.09
•
:
*
*
1.08
.28
.02
*
* In absolute value, less than 0.005 percent.
NOTE. For definitions of managed liabilities and commercial real estate loans, see text table 2, notes 1 and 2.
n.a. Not available.
MMDA, Money market deposit account.
RP Repurchase agreement.
CD Certificate of deposit.
1. Includes allocated transfer risk reserve.
2. As in the Call Report, equity securities are combined with "other debt securities" before 1989.
3. Where possible, based on an average of quarterly average balance sheet data reported on schedule RC-K of the quarterly Call Report.
4. Includes provision for allocated transfer risk.
*
*
566
Federal Reserve Bulletin • June 1995
A.2.
P o r t f o l i o c o m p o s i t i o n , interest rates, and i n c o m e and e x p e n s e , all insured d o m e s t i c c o m m e r c i a l banks and
n o n d e p o s i t trust c o m p a n i e s , 1 9 8 5 - 9 4
D. Banks ranked 101st through 1,000th by assets
Item
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
Balance sheet items as a percentage of average net consolidated assets
Interest-earning assets
Loans and leases, net
Commercial and industrial
U.S. addressees
Foreign addressees
Consumer
Credit card
Installment and other
Real estate
In domestic offices
Construction and land development
Farmland
One- to four-family residential
Home equity
Other
Multifamily residential
Nonfarm nonresidential
In foreign offices
Depository institutions
Foreign governments
Agricultural production .
Other loans
Lease-financing receivables
LESS: Unearned income on loans
LESS: LOSS reserves'
87.82
59.27
19.02
18.69
.33
14.46
3.50
10.96
18.86
18.86
3.94
.23
8.42
n.a.
n.a.
.59
5.68
87.92
59.77
18.47
18.22
.25
14.69
4.01
10.68
19.79
19.78
4.18
.25
8.49
n.a.
n.a.
.66
6.21
.01
1.36
.26
.62
5.44
.71
.71
.87
19.28
18.95
18.95
7.58
88.34
61.60
18.12
17.87
.24
15.34
4.65
10.69
22.25
22.25
4.57
.26
9.48
0. n.a.
n.a.
.68
7.26
v .01
1.13
.25
.48
4.94
.72
.61
1,01
18.72
V 18.50
18.50
7.14
88.88
63.03
17.83
17.67
.16
15.91
5.21
10.70
24.28
24.27
4.73
.27
10.64
1.73
8.91
.67
7.97
.01
1.01
.20
.47
4.23
.78
.60
1.07
18.52
18.25
18.25
6.52
88.%
63.61
17.68
17.53
.15
15.48
4.82
10.65
25.97
25.95
4.82
.27
11.55
2.08
9.47
.70
8.61
.01
.92
.16
.45
3.77
• .82
.56
1.07
18.75
18.37
18.02
5.90
88.82
63.08
16.69
16.56
.13
15.47
5.22
10.25
27.01
26.99
4.37
.28
12.48
3.32
1.13
n.a.
2.19
6.48
1.57
n.a.
.33
5.66
3.22
12.08
4.06
1.89
tut.
2.17
5.03
2.26
n.a.
.22
4.94
3.08
11.66
4.81
2.33
n.a.
2.48
4.10
2.82
n a.
.28
4.45
2.87
11.12
93.44
72.90
62.62
2.00
60.62
5.55
21.50
19.92
13.65
7.90
2.38
20.53
18.29
2.24
93.33
73.01
62.17
2.07
60.10
6.25
22.37
18.66
12.83
8.21
2.63
20.32
18.25
2.08
93.28
73.92
62.43
S 1.96
60.47
7.27
22.83
17.75
12.62
8.46
303
19.36
17.35
2.00
6.56
6.67
n.a.
.28
25.88
638
*
fc 1.58
.30
,75
5.30
.64
.88
.77
19.60
19.36
19.36
8.63
Securities
Investment account
Debt
U.S. Treasury
U.S. government agency and
corporation obligations
3.37
Mortgage pass-through securities
1.06
Collateralized mortgage obligations ..
n.a.
Other
2.31
State and local government
6.18
Other
1.19
Equity1
n.a.
! i S .24
Trading account
Gross federal funds sold and reverse RPs
5.15
Interest-bearing balances at depositories
3.80
Non-interest-earning assets
12.18
Liabilities
Interest-bearing liabilities
Deposits
In foreign offices
In domestic offices
Other checkable deposits
Savings (including MMDAs)
Small denomination time deposits
Large denomination time deposits
Gross federal funds purchased and RPs
Other
Non-interest-bearing liabilities
Demand deposits in domestic offices
Other
Capital account
10.18
.74
9.12
.03
1.05
.09
.47
3.17
.83
.50
1.20
19.33
18.86
18.53
5.44
88.88
61.01
15.05
14.89
.16
15.10
5.71
9.39
27.52
27.47
3.66
.28
13.22
2.53
10.68
.80
9.51
.05
.93
.07
.49
2.81
.85
.40
1.42
21.28
20.91
20.55
6.16
89.02
58.51
13.33
13.15
.18
14.22
5.42
8.80
28.10
28.06
2.86
.32
14.25
2.56
11.69
.95
9.68
.04
.80
.05
6.06
3.03
n.a.
3.03
3.49
2.56
.35
.38
4.11
2.49
11.04
7.74
3.83
1.74
2.17
3.11
2.25
.32
.48
4.51
1.90
11.18
93.34
75.59
63.00
2.04
60.97
7.39
21.27
19.34
12.96
8.63
3.%
17.74
15.84
1.90
93.26
76.42
63.68
2.09
61.59
7.14
19.50
22.06
12.90
9.20
3.54
16.84
14.85
1.99
6.72
6.66
n.a.
.30
25.67
n.a.
.37
26.00
710
771
2.47
.78
.30
1.49
24.12
23.77
23.31
7.75
89.53
57.92
12.19
12.03
.16
14.82
5.65
9.18
28.61
28.58
2.26
.34
15.16
2.50
12.66
1.07
9.75
.02
.43
.03
.56
2.16
.76
.21
1.44
25.91
25,62
25.15
8.63
90.09
59.74
12.07
11.90
.16
15.85
6.06
9.79
29.42
29.40
2.08
.36
16.25
2.33
13.92
g 1.13
9.57
.03
#
.38
.02
.62
2.01
82
.15
1.30
25.71
25.39
24.95
8.26
9.35
4.51
2.73
2.11
2.65
2.38
.37
.37
4.70
1.90
11.12
11.07
4.74
3.95
2.38
2.27
2.22
.46
.35
4.92
1.47
10.98
12.33
4.97
4.82
2.53
2.26
1.94
.47
.29
450
1.20
10.47
12.67
5.57
4.39
2.71
2.29
1.74
.44
.31
3.64
1.00
9.91
93.07
77.05
65.02
1.65
63.37
7.30
19.68
24.08
12.30
8.42
3.60
16.03
14.07
1.%
92.89
77.26
66.30
1.76
64.55
7.83
20.72
25.21
10.79
7.46
3.50
15.63
13.56
2.07
92.47
75.98
65.63
1.56
64.07
9.14
23.32
23.55
8.07
7.17
3.19
16.48
14.38
2.10
91.86
74.44
63.06
1.43
61.63
9.94
2405
20.80
6.84
7.43
3.95
17.42
15.06
2.36
91.62
74.78
60.39
1.69
58.69
9.71
22.92
19.29
6.78
8.45
5.94
16.85
14.58
2.27
6.74
6.93
7.11
7.53
8.14
8.38
n.a.
.42
27.51
n.a.
.46
27.67
aa.
25.%
13.84
.79
23.49
12.95
.80
19.97
12.31
.57
19.65
11.92
.28
22.86
839
892
938
961
968
978
1,032
231
J4
MEMO
Commercial real estate loans
Other real estate owned
Managed liabilities
Average net consolidated assets
(billions of dollars)
JSS
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
567
A.2.—Continued
D. Banks ranked 101st through 1,000th by assets
Item
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
3
Effective interest rate (percent)
Rates earned
Interest-earning assets
Taxable equivalent
Loans and leases, gross
Net of loss provisions
Securities
Taxable equivalent
Investment account
U.S. government and other debt
State and local
Equity2
Trading account
Gross federal funds sold and reverse RPs
Interest-bearing balances at depositories .
10.95
11.57
11.89
10.89
i 9.15
10.89
9.15
10.24
6.82
n.a.
8.88
8.22
9.15
9.91
10.52
10.83
9.60
8.29
10.09
8.30
8.98
7.01
n.a.
7.42
6.84
7.53
9.44
9.80
10.30
9.05
7.67
8.77
7.69
7.94
7.01
n.a.
5.80
6.62
7.03
9.90
10.15
10.75
9.60
7.83
8.59
7.84
8.04
7.15
n.a.
6.96
7.47
7.82
10.71
10.93
11.57
10.42
8.33
8.98
8.34
8.61
7.26
6.90
7.61
8.95
9.18
10.41
10.57
11.20
9.47
8.52
9.02
8.49
8.75
7.32
6.97
9.92
7.98
8.51
9.53
9.68
10.40
8.70
8.09
8.54
8.11
8.28
7.26
6.00
6.86
5.63
6.81
8.14
8.26
9.12
7.84
6.88
7.20
6.90
6.95
6.84
5.06
5.62
3.47
4.61
7.40
7.53
8.54
7.74
5.75
6.09
5.76
5.73
6.26
4.91
4.83
3.00
3.50
7.58
7.68
8.64
8.11
5.69
5.95
5.69
5.68
5.90
5.28
5.29
4.03
4.28
Rates paid
Interest-bearing liabilities
Interest-bearing deposits
In foreign offices
In domestic offices
Other checkable deposits
Savings (including MMDAs) . . . . . . .
Large denomination CDs
Other time deposits
Gross federal funds purchased and RPs ..
8.02
7.85
8.65
7.82
n.a.
n.a.
8.61
n.a.
7.87
6.92
6.75
6.94
6.76
n.a.
n.a.
7.30
n.a.
6.60
6.29
6.08
6.77
6.06
4.64
5.28
6.79
7.14
6.34
6.70
6.49
7.65
6.45
4.77
5.53
7.39
7.45
7.39
7.69
7.33
8.98
7.28
4.86
6.!1
8.64
. 8.28
8.96
7.25
7.05
8.12
7.02
4.75
5.98
8.03
8.03
7.86
6.08
6.04
6.38
6.03
4.28
5.12
6.61
7.05
5.60
4.19
4.16
4.25
4.16
2.67
3.33
4.75
5.34
3.46
3.31
3.24
3.35
3.24
2.01
2.57
3.86
4.38
2.95
3.57
3.31
4.31
3.28
1.86
2.65
4.22
4.40
4.12
Income and expenses as a percentage of average net consolidated assets
9.61
10.15
7.06
1.77
.43
.36
8.67
9.21
6.48
1.57
.37
.25
8.38
8.70
6.43
1.42
.31
.22
8.86
9.09
6.88
1.43
.32
.24
9.64
9.83
7.49
1.53
.37
.25
9.37
9.51
7.21
1.60
.36
.19
8.61
8.74
6.49
1.70
.27
.15
7.36
7.47
5.46
1.64
.17
.08
6.71
6.81
5.04
1.48
.13
.06
6.91
7.00
5.26
1.45
.14
.06
Gross interest expense
Deposits
Gross federal funds purchased and RPs
Other
5.75
4.92
.63
.20
4.94
4.21
.55
.19
4.57
3.81
.53
.23
5.02
4.09
.64
.29
5.82
4.67
.83
.32
5.53
4.58
.67
.29
4.66
4.01
.42
.23
3.16
2.74
.25
.17
2.45
2.06
.22
.17
2.65
2.01
.35
.29
Net interest income
Taxable equivalent
3.86
4.39
3.73
4.27
3.81
4.12
3.85
4.07
3.82
4.01
3.83
3.97
3.95
4.08
4.20
4.31
4.26
4.36
4.26
4.35
Gross interest income
Taxable equivalent
Loans
Securities
Gross federal funds sold and reverse RPs
Other
.59
.74
.78
.74
.74
l.H
1.06
.77
.47
.32
Noninterest income
Service charges on deposits
Income from fiduciary activities
Foreign-exchange gains and fees
Trading income
Other
Noninterest expense
Salaries, wages, and employee benefits
Expenses of premises and fixed assets
Other
1.28
.35
.26
.01
.04
.63
1.30
.34
.25
.01
.04
.67
1.35
.34
.25
.01
.03
.72
1.36
.34
.25
1.49
.37
.26
ijpSJ^IISMS
.02
.84
1.64
.40
.27
.01
.03
.94
1.69
.44
.28
.03
.74
1.38
.35
.25
.01
.03
.74
.02
.95
1.83
.44
.29
.01
.02
1.07
1.85
.42
.28
.01
.01
1.13
3.55
1.67
.55
1.34
3.50
1.59
.53
1.38
3.52
1.54
.52
1.47
3.50
1.49
.50
1.51
3.43
1.47
.49
1.47
3.50
1.47
.49
1.54
3.75
1.47
.49
1.79
3.87
1.51
.49
L87
3.90
1.51
.48
1.91
3.78
1.49
.46
1.83
Net noninterest expense
2.28
2.20
2.17
2.14
2.04
2.00
2.11
2.18
2.07
1.92
.05
.12
.04
*
.01
.01
.09
.10
.06
-.05
1.05
.21
.02
.91
.18
.01
.89
.27
.02
.97
.32
.01
1.05
.32
.73
.21
.87
.29
.03
1.36
.44
1.78
.61
.04
1.96
.67
jj|j|j|i®
.85
.40
.45
.74
.40
.34
.64
.44
.20
.67
.48
.18
.73
.48
.25
.52
.53
-.01
.61
.58
.03
.92
.48
.44
1.22
.79
.43
1.29
.81
.48
12.99
11.10
9.53
10.00
10.94
7.45
8.60
12.25
14.93
15.42
Loss provisions4
Realized gains on investment account securities..
Income before taxes and extraordinary items
Taxes
Extraordinary items
Net income
Cash dividends declared
Retained income
MEMO: Return on equity
1
*
*
*
* In absolute value, less than 0.005 percent.
NOTE. For definitions of managed liabilities and commercial real estate loans, see text table 2, notes 1 and 2.
n.a. Not available.
MMDA Money market deposit account.
RP Repurchase agreement.
CD Certificate of deposit.
1. Includes allocated transfer risk reserve.
2. As in the Call Report, equity securities are combined with "other debt securities" before 1989.
3. Where possible, based on an average of quarterly average balance sheet data reported on schedule RC-K of the quarterly Call Report.
4. Includes provision for allocated transfer risk.
568
Federal Reserve Bulletin • June 1995
A.2.
P o r t f o l i o c o m p o s i t i o n , interest rates, and i n c o m e and e x p e n s e , all insured d o m e s t i c c o m m e r c i a l b a n k s and
n o n d e p o s i t trust c o m p a n i e s , 1 9 8 5 - 9 4
E. Banks not ranked among the 1,000 largest by assets
1985
1986
1987
1988
1989
Balance sheet items as a
Loans and leases, net
Commercial and industrial
U.S.
Foreign
Credit card
; and other
In domestic offices
Construction and land development..
Farmland
One- to four-family residential
—
Home equity
Other
Multifamily residential
Nonfarm nonresidential
In foreign offices
Depository institutions
Foreign governments
Agricultural production
Other loans
Lease-financing receivables
LESS: Unearned income on loans
LESS: Loss reserves'
Securities
Investment account
Debt
u s : Treasury'::::::::::::::::::::::
U.S. government agency and
corporation obligations
Mortgage pass-through securities..
Collateralized mortgage obligations
Other
State and local government
Other
Equity2
Trading account
Gross federal funds sold and reverse RPs . . .
Interest-bearing balances at depositories
Non-interest-earning assets
Liabilities
Interest-bearing liabilities
Deposits
In foreign offices
In domestic offices
Other checkable deposits
Savings (including MMDAs)
Small denomination time deposits ...
Large denomination time deposits . . .
Gross federal funds purchased and RPs . . .
Other
Non-interest-bearing liabilities
Demand deposits in domestic offices
Other
Capital account
89.87
53.80
14.33
14.29
.03
13.01
.61
12.40
20.83
20.83
2.16
1.32
11.23
n.a.
n.a.
.50
5.62
*
90.00
52.82
13.68
13.65
.03
12.41
.68
11.74
21.94
21.94
2.21
1.42
11.62
.54
6.15
*
90.50
52.82
12.84
12.81
.03
11.74
.80
10.94
24.07
24.07
2.19
1.59
12.80
n.a.
n.a.
.60
6.90
90.81
53.88
12.34
12.32
.02
11.48
.86
10.62
26.03
26.03
2.22
1.74
14.06
.73
13.32
.61
7.40
*
1990
1991
1992
1993
1994
91.39
53.03
9.74
9.70
.04
9.68
91.66
52.96
9.25
9.21
.04
9.17
.91
8.26
31.11
31.10
1.93
2.20
16.82
1.27
15.55
.84
9.30
*
91.72
54.65
9.32
9.27
.05
9.38
.96
8.41
32.19
32.18
2.14
2.34
16.95
1.21
15.74
.93
9.83
*
.13
3.89
.81
.19
.31
.95
32.90
32.86
32.42
10.81
of average net i
90.88
54.85
12.10
12.07
.03
11.46
.93
10.53
27.36
27.36
2.29
1.82
14.80
.95
13.86
.62
7.82
*
91.04
54.73
11.53
11.49
.04
11.19
.26
.01
3.27
1.67
.19
.60
.20
.01
3.47
1.24
.18
.51
.93
29.97
29.91
29.53
9.24
3.54
.99
.17
.43
.96
32.10
32.04
31.60
10.25
.12
.02
3.58
.87
.18
.36
.97
33.07
33.01
32.56
10.50
1.00
10.19
28.35
28.35
2.37
1.86
15.37
1.16
14.21
.66
8.09
*
91.23
54.06
10.59
10.55
.04
10.49
1.08
9.41
29.32
29.32
2.18
1.93
15.99
1.29
14.70
.71
8.50
*
LOO
8.68
30.16
30.15
1.98
2.06
16.44
1.34
15.10
.77
8.91
*
3.76
2.20
.19
.83
.78
26.96
26.91
26.91
11.39
.30
.01
3.30
1.90
.19
.67
.86
27.67
27.59
27.59
10 64
.88
.88
27.98
27.92
27.92
9.75
27.90
27.83
27.44
8.83
.23
.01
3.29
1.41
.18
.58
.89
28.37
28.27
27.91
8.77
6.17
1.55
n.a.
4.62
8.02
.69
n.a.
.04
5.61
2.90
10.13
6.45
1.38
tut.
5.07
8.01
1.06
n.a.
.05
7.09
3.13
10.00
8.18
2.66
n.a.
5.52
6.63
2.13
n.a.
.08
6.66
3.36
9.50
9.80
3.22
n.a.
6.58
5.65
2.73
n.a.
.05
5.76
3.19
9.19
11.37
3.76
n.a.
7.61
4.94
2.30
.40
.07
5.74
2.39
9.12
12.43
4.58
.92
6.93
4.56
2.16
.36
.10
6.13
1.81
8.96
13.80
5.59
1.55
6.66
4.26
2.23
.38
.06
5.64
1.57
8.77
15.03
5.52
2.66
6.85
4.29
2.03
.44
.06
5.10
H6
8.61
15.80
5.38
3.33
7.09
4.69
1.58
.45
.07
4.67
.96
8.34
15.35
4.82
3-11
7.42
5.00
1.25
.44
.04
3.41
.76
8.28
91.72
74.90
72.73
.07
72.66
8.10
21.06
31.98
11.52
1.48
.70
16.81
15.24
1.57
91.80
75.62
73.66
.06
73.60
9.03
22.19
30.89
11.49
1.29
.66
16.19
14.87
1.32
91.74
76.39
74.39
.04
74.34
10.33
23.30
29.56
11.16
1.27
.73
15.35
14.24
1.11
91.61
76.94
74.83
.04
74.80
10.63
21.92
30.97
11.27
1.35
.76
14.67
13.58
1.09
91.43
77.13
74.97
.06
74.90
10.38
19.51
33.64
11.37
1.35
.81
14.31
13.09
1.22
91.38
77.81
75.76
.07
75.69
10.44
18.73
35.35
11.17
1.36
.69
13.57
12.36
1.21
91.36
78.39
76.40
.08
76.32
10.98
19.35
35.85
10.15
1.31
.67
12.97
11.83
1.15
91.07
77.83
75.74
.07
75.67
12.33
22.10
32.84
8.40
1.36
.73
13.24
12.23
1.01
90.64
76.90
74.56
.08
74.48
13.16
23.55
30.11
7.66
1.44
.90
13.74
12.82
.92
90.45
76.20
73.16
.09
73.07
13.32
23.24
28.84
7.68
1.89
1.15
14.25
13.35
.90
8.28
8.20
8.26
K.39
8.57
8.62
8.64
8.93
9.36
9.55
n.a.
.44
13.70
n.a.
.55
13.43
n.a.
.63
13.14
n.a.
.65
13.36
n.a.
.65
13.55
n.a.
.63
13.25
11.04
.67
12.17
11.08
.66
10.53
11.38
.52
10.06
12.09
.35
10.80
621
649
659
654
662
681
695
697
687
679
.27
.01
4.52
2.40
.19
1.07
.69
27.55
27.51
27.51
12.63
.25
.01
.31
.02
3.25
1.75
.19
.61
.13
.01
.01
MEMO
Commercial real estate loans
Other real estate owned
Managed liabilities
Average net consolidated
(billions of dollars).
Profits and Balance Sheet Developments at U.S. Commercial Banks in 1994
569
A.2.—Continued
E. Banks not ranked among the 1,000 largest by assets
1985
1986
1987
1988
1989
1990
1991
1
J
1
Effective interest rate (percent)3
1992
1993
1994
• ^
Rates earned
Taxable equivalent
^
Net of loss provisions
Taxable equivalent...
U.S. government and other debt
State and local
Trading account
Gross federal funds sold and reverse RPs
Rates paid
Interest-bearing liabilities
Interest-bearing deposits
In foreign offices
In domestic offices
Other checkable deposits . . . .
Savings (including 1
ling MMDAs)
Large denomination CDs
Other time deposits
Gross federal funds purchased and RPs
11.33
11.86
12.61
11.11
11.26
9.64
10.54
7.47
n.a.
10.26
8.26
9.64
8.09
8.06
8.34
8.06
n.a.
n.a.
8.69
n.a.
7.79
10.28
10.79
11.66
9.98
8.72
10.31
8.72
9.24
7.52
a.a.
8.44
6.91
8.07
9.53
9.86
10.85
9.59
7.92
8.94
7.91
8.04
7.52
a.a.
9.04
6.81
7.37
9.75
10.00
11.01
9.98
7.93
8.65
7.91
8.00
7.56
n.a.
14.88
7.67
8.06
10.48
10.72
11.74
10.85
8.37
9.03
8.35
8.51
7.56
8.19
14.86
9.24
9.11
10.30
10.52
11.59
10.64
8.42
9.01
8.40
8.59
7.46
8.34
12.13
8.11
8.54
9.63
9.82
11.01
10.08
8.03
8.55
8.03
8.19
7.17
7.12
8.75
5.65
7.35
8.43
8.59
9.82
9.04
6.99
7.42
6.99
7.06
6.71
5.63
7.34
3.50
5.60
7.60
7.77
9.11
8.61
5.92
6.35
5.92
5.91
6.09
5.13
4.79
2.95
4.54
7.58
7.74
9.01
8.67
5.61
6.02
5.61
5.60
5.69
5.53
6.86
4.08
4.68
7.01
6.96
7.06
6.96
n.a.
6.19
6.12
7.29
6.12
4.93
5.37
6.56
6.96
6.25
6.41
6.36
7.62
6.36
4.99
5.47
7.12
7.16
6.79
7.15
7.09
9.35
7.09
5.08
5.81
8.35
8.02
8.51
7.01
6.96
7.57
6.%
5.02
5.73
7.91
7.88
8.02
6.17
6.15
5.95
6.15
4.61
5.17
6.73
6.97
5.71
4.44
4.44
3.97
4.44
3.13
3.62
4,89
5.36
3.73
3.53
3.52
2.91
3.52
2.42
2.90
3.95
4.37
3.17
3.49
3.44
3.92
3.44
2.29
2.83
4.12
4.28
4.12
OJL.
7.35
n.a.
6.59
Income and expenses as a percentage of average net consolidated assets
Gross interest income
Taxable equivalent
Loans
Securities
Gross federal funds sold and reverse RPs
Other
10.29
10.76
6.87
2.65
.50
.28
9.32
9.77
6.22
2.35
.50
.25
8.71
9.01
5.81
2.18
.47
.25
8.94
9.17
6.01
2.21
.46
,26
9.64
9.84
6.52
2.32
.57
.23
9.50
9.68
6.43
2.38
.53
.17
8.91
9.07
6.04
2.40
.34
.12
7.79
7.94
5.29
2.24
.18
.07
7.04
7.19
4.90
1.96
.14
.05
7.02
7.16
4.99
1.84
.15
.04
Gross interest expense
Deposits
Gross federal funds purchased and RPs ..
Other
6.04
5.87
.12
.06
5.27
5.13
.09
.05
4.71
4.57
.08
.06
4.91
4.76
.10
.06
5.49
5.31
.12
.06
5.43
5.27
.11
.05
4.82
4.70
.07
.05
3.45
3.36
.05
.04
2.71
2.63
.04
.04
2.65
2.52
.07
.06
Net interest income
Taxable equivalent
4.72
4.05
4.50
4.00
4.30
4.03
4.26
4.15
4.35
4.07
4.25
4.09
4.25
4.34
4.49
4.33
4.48
4.36
4.51
Loss provisions
.82
.90
.67
.56
.49
.51
.42
.27
Noninterest income . . . . . . . . . . . . . . .
Service charges on deposits
Income from fiduciary activities .
Foreign-exchange gains and fees
Trading income
Other
.84
.85
.41
.10
.88
.41
.11
.92
.41
.12
.99
.41
.14
1.07
.44
.14
1.16
.45
.16
*
#
*
*
*
*
.35
.39
.01
.44
4
Salaries, wages, and employee benefits
-s of pren
Expenses < f premises and fixed
Other....
.10
»
.30
«
.33
3.43
1.66
.53
1.24
3.46
1.63
.53
1.30
3.43
1.61
.52
1.30
3.44
1.62
.51
1.31
3.48
1.65
.50
1.33
.53
1.01
.42
.14
®isfill®8fcfls
.01
.44
*
MMw^S
*
.49
.55
.64
.68
3.49
1.64
.49
1.36
3.60
1.64
.49
1.46
3.66
1.69
.49
1.49
3.72
1.72
.48
1.52
3.76
1.74
.48
1.54
2.48
2.52
2.51
2.48
2.48
.06
.09
.07
-.03
1.66
.51
tMflP
1.16
.57
.58
2.60
2.61
2.55
2.52
2.48
.08
.15
.03
.01
.01
Income before taxes and extraordinary items
Taxes
.91
.20
.01
.70
.15
.01
.82
.25
.02
.96
.29
.02
1.18
.36
.02
1.06
.34
.02
1.11
.35
.01
1.50
.47
.02
1.65
.51
.05
Net income
Cash dividends declared
Retained income
.72
.43
.30
.56
.40
.16
.59
.40
.19
.69
.46
.22
.83
.53
.30
.74
.50
.24
.78
.47
.30
1.04
.51
.53
1.19
.55
.64
MEMO: Return on equity ..
8.70
6.81
7.09
8.19
9.67
8.61
8.98
11.64
12.76
*
* In absolute value, less than 0.005 percent.
NOTE. For definitions of managed liabilities and commercial real estate loans, see text table 2, notes 1 and 2.
n.a. Not available.
MMDA Money market deposit account.
RP Repurchase agreement.
CD Certificate of deposit.
1. Includes allocated transfer risk reserve.
2. As in the Call Report, equity securities are combined with "other debt securities" before 1989.
3. Where possible, based on an average of quarterly average balance sheet data reported on schedule RC-K of the quarterly Call Report.
4. Includes provision for allocated transfer risk.
1.28
.44
.16
fMp
*
Realized gains on investment account securities .
Net noninterest expense
.19
1.25
.45
.15
Wi$mm$i$is. p t j
4sBsliS§
12.10
570
Monetary Policy and Open Market
Operations during 1994
•j-
"
.
This article is adapted from a report to the Federal
Open Market Committee by Peter R. Fisher, Executive Vice President of the Federal Reserve Bank of
New York and Manager of the System Open Market
Account. Ann-Marie Meulendyke, Adviser, Open
Market Function, and Spence Hilton, Manager,
Open Market Trading and Analysis Staff, were
primarily responsible for the preparation of this
report. Other members of the Open Market Function assisting in the preparation of the report were
Robert Van Wicklen, Theodore Tulpan, Eileen
Steigleder, and Steve Zannetos. William May, Economist, Financial Markets and Institutions Department, also assisted.
In 1994 the operating techniques for implementing
monetary policy remained similar to those of recent
years; however, the Trading Desk at the Federal
Reserve Bank of New York gained slightly more
flexibility in its execution of open market operations after the Federal Open Market Committee
began announcing its policy actions in February.
As a consequence of the change in procedures,
open market operations were no longer used to
communicate policy shifts. Nearly all the Desk's
operations added reserves because cumulative
reserve shortages were substantial for the fourth
consecutive year. These deficiencies reflected the
continued rapid expansion of currency, which
stemmed in part from heavy currency shipments
abroad. Working in the other direction were
declines in the demand for reserve balances arising
from monetary policy tightening. Higher interest
rates reined in the growth of transactions deposits
and reduced the balances that banks were required
to hold at the Federal Reserve. As these balances
fell, banks lost some flexibility in managing their
reserve positions, and by year-end the potential for
operating difficulties associated with low balances
had reemerged.
The next section of the report briefly reviews the
course of monetary policy in 1994 and describes
the responses of the fixed-income securities markets to economic and policy developments. Monetary policy moved away from the accommodative
stance that had been in place for some time as the
robust pace of economic growth cut into remaining
excess productive capacity. With the economy
expanding rapidly and the Federal Reserve acting
to restrain inflationary pressures, interest rates
moved sharply higher and the yield curve flattened.
The extent of the rise in yields took many market
participants by surprise, contributing to losses and
a few bankruptcies, particularly by highly leveraged accounts.
The final section of this report discusses the
Open Market Trading Desk's implementation of
the objectives established by the Federal Open
Market Committee (FOMC). It reviews policy
techniques and factors affecting reserve supplies
and demands over the year. In 1994 the Desk
added a net $32 billion to its securities portfolio,
the second largest annual increase. Repurchase
agreements with relatively short maturities were
used extensively by the Desk to manage reserves
within two-week reserve maintenance periods; such
transactions are well adapted to handle short-term
variations in reserve levels and the frequent revisions to estimated reserve needs. In addition, pricing of daylight overdrafts, which began in April,
had the potential to complicate policy implementation, but the actual effects on operations proved to
be minimal.
MONETARY POLICY
AND FINANCIAL MARKET
RESPONSE
The Course of Monetary
Policy
Monetary policy in 1994 was formulated against a
background of rapid economic growth and rising
resource utilization but generally modest aggregate
571
price increases. The FOMC increased reserve pressures at five of eight meetings and once between
meetings, resulting in a cumulative increase of
2Vi percentage points in the federal funds rate
1.
(table 1). Asymmetric directives indicating a
greater likelihood that future changes in policy
would be toward restraint were adopted at the three
meetings at which no change was made to existing
Specifications from directives of the Federal Open Market Committee and related information,
December 21, 1993-December 20, 1994
Date of
meeting
Specified short-term
growth for M2 andM3
Discount rate
(percent)
12/21/93
Moderate growth over coming
months
3
2/3 to 2/4/94 . . .
Moderate growth over the
first half of the year
3
Moderate growth over the
first half of the year
3
3/22/94
Borrowing
assumption
for deriving
nonborrowed
reserve path
(millions
of dollars)
Associated
federal
funds rate'
(percent)
Effect on
degree of
reserve
pressure
50
3
Maintain
50
m
Increase
slightly
3V4
Increase
slightly
75 on 2/4 3
75
100 on 3/23 3
125 on 4/18*
Guidelines for modifying
reserve pressure
between meetings2
Slightly greater reserve restraint
or slightly lesser reserve
restraint might be acceptable.
it
33/4 on 4/18
150on5/5 4
175 on 5/12 4
5/17/94
Modest growth overcoming
months
3»/2
175 5
4«/4
Increase
somewhat
43/4
Maintain
Slightly greater reserve restraint
would be acceptable; slightly
lesser reserve restraint might be
acceptable.
43/4
Increase
somewhat
Slightly greater reserve restraint
or slightly lesser reserve
restraint would be acceptable.
43/4
Maintain
Somewhat greater reserve
restraint would be acceptable;
slightly lesser reserve restraint
might be acceptable.
5'A
Increase
significantly
5V4
Maintain
200 on 5/19 4
225 on 5/26 4
325 on 6/23 4
7/5 to 7/6/94 . . .
Modest growth over coming
months
3'A
325
375 on 7/7
4
425 on 7/21 4
450 on 7/28 4
8/16/94
Modest growth over coming
months
4
450'
475 on 8/18 4
500 on 8/25 4
475oa 9/1 4
9/27/94
Modest growth over the balance
of the year
4
475
4
450 on 1Q/6
425 on 10/13 4
375 on J0/20*
325 on 10/27 4
375onU/34
225 on 11/10 4
11/15/94
Modest growth over coming
months
4%
225 5
175 on 11/24"
125 on 12/8 4
12/20/94
Modest growth over coming
months
4%
125
1. The trading area for the federal funds rate that is expected to be
consistent with the borrowing assumption.
2. Modifications to reserve pressures are evaluated "in the context of the
Committee's long-run objectives for price stability and sustainable economic
growth, and giving careful consideration to economic, financial, and monetary developments."
Somewhat greater reserve
restraint or somewhat lesser
reserve restraint would be
acceptable.
Somewhat greater reserve
restraint would be acceptable;
slightly lesser reserve restraint
might be acceptable.
3. Change in borrowing assumption reflects adjustment to reserve
pressures.
4. Change in borrowing assumption reflects technical adjustment to
account for actual or prospective behavior of seasonal borrowing.
5. The assumption was unchanged because the full effect of the discount
rate increase was allowed to show through to the market.
572
Federal Reserve Bulletin • June 1995
pressures. Meanwhile, the Board of Governors
approved three increases in the discount rate totaling VA percentage points. When determining the
stance of policy, the FOMC continued to monitor a
broad range of economic and financial indicators.
Annual targets were still set for the broader monetary aggregates, but the FOMC placed limited
weight on the aggregates because of the considerable uncertainty that persisted about the behavior
of their velocities.1
Economic Background
The economic expansion remained on solid footing
throughout 1994, with personal consumption, busi1. The behavior of the monetary aggregates and the Committee's targets for them are discussed in appendix A.
2.
ness investment, and inventory accumulation the
mainstays of growth (table 2). Consumer outlays
for durable goods were particularly robust, and
producers' durable equipment purchases remained
strong for the third consecutive year. The rate of
inventory investment picked up over the first two
quarters and remained at relatively high levels for
the rest of the year. The pace of expansion was
moderated by developments in other sectors: Residential construction activity cooled off as the year
progressed, government expenditures trended
lower, and the trade balance remained a modest
drag. Despite these offsetting factors, by year-end
the rapid pace of output expansion had brought
resource utilization rates up to levels associated
historically with rising inflationary pressures.
The unemployment rate fell to 5.4 percent in
December, and the industry operating rate stood at
85.4 percent.
Output and prices, 1993:Q4-1994:Q4
Seasonally adjusted annual rates of change, except as noted
-
1993
04
1994
I992:Q4
1993:Q4
to
Q1
Q2
03
Q4
to
1993:Q4
1994:Q4
OUTPUT
Real GDP
Change in inventory accumulation1 . . .
Final sales
Consumption
Durables
Nondnrables
Services
Producers' durable equipment
Nonresidential structures
Residential fixed investment
Change in net exports'
Government purchases
Addenda
Savings rate (percent of disposable
income)
Industrial production
Capacity utilization rate (level)
Civilian unemployment rate (level)
Change in nonfarm payroll
employment (thousands)
Change in manufacturing payrolls
(thousands)
6.3
-2.2
6.4
4.0
15.5
2.4
2.0
27.5
3.3
28.2
4.1
-.1
3.3
14.6
2.2
4.7
8.8
3.8
4.0
18.6
-11.8
10.0
-21.8
-4.9
4.1
33.8
1.5
1.3
.4
2.2
1.1
6.1
20.6
7.0
-7.8
-1.2
4.0
-2.1
4.3
3.1
5.8
3.3
2.2
18.1
1.6
-6.0
-5.2
6.7
5.1
-7.7
5.7
5.1
20.4
3.1
2.3
19.6
11.0
2.3
9.9
-4.1
4.0
5.3
82.3
6.5
3.6
7.0
83.2
6.6
4.1
6.2
83.8
6.2
4.1
4.9
84.3
6.0
4.6
6.0
84.9
5.6
3.1
4.2
3.0
3.0
9.0
1.3
2.5
21.3
1.6
8.1
-43.1
-1.0
4.1
38.6
3.4
3.5
8.6
3.1
2.4
15.5
4.6
3.1
-24.9
-1.0
-2.2*
3.6
.62
6.0
1.2 2
-82
-1.0*
608
613
1,019
913
873
2,235
3,418
-9
31
47
59
105
-119
242
PRICES
Consumer price index
Total
Excluding food and energy
3.3
2.8
2.1
2.9
2.6
3.0
3.6
3.0
2.2
2.3
2.7
3.1
2.6
2.8
Producer price index
Finished goods
Excluding food and energy
Intermediate goods
Implicit GDP deflator
Fixed-weight GDP index
Employment cost index
-.1
-.6
.8
1.3
2.6
3.4
2.7
2.9
2.2
2.9
2.9
3.0
.2
1.9
1.6
2.9
3.2
2.1
1.9
5.0
1.9
2.8
3.3
.3
.0
6.5
.2
.2
1.1
1.8
2.8
3.4
1.3
1.7
3.8
NOTE. Data are as of April 12,1995.
1. Billions of 1987 dollars.
2. Change in rate.
3.3
1.3
2.8
2.6
2.3
2,9
3.1
Monetary Policy and Open Market Operations during 1994
Although the slack in the economy steadily
diminished, aggregate price increases for final
goods and services remained modest. Inflation, as
measured by the fixed-weight GDP deflator and the
consumer price index, showed no deterioration;
increases in producer prices for finished goods
remained low; and labor cost increases were
restrained. Nonetheless, evidence accumulated that
price pressures could be intensifying. Producer
price increases at the intermediate stage of production accelerated, and manufacturers increasingly
reported paying higher prices for their inputs.
Policy Initiatives
The initial monetary policy move came at the February FOMC meeting; it represented the first
change in reserve conditions since September 1992
and the first move toward tightening since early
1989. The Committee adopted a limited measure,
associated with a V^-percentage-point rise in the
federal funds rate, because of the likelihood that
this first step toward firming policy in some years
might be magnified in the financial markets. At
the same time, it was felt that this action would
effectively signal the Committee's anti-inflation
intentions.
In a departure from past practice, the Chairman
of the FOMC issued a brief public statement
announcing this policy decision to avoid misinterpretation of the Committee's actions by market
participants. Similar brief statements were issued
on a case-by-case basis to announce the other
FOMC policy changes during 1994.2
The Committee raised reserve pressures slightly
further at its March meeting, with the federal funds
rate expected to rise another lA percentage point.
2. Most announcements of policy changes were made early in
the afternoon, shortly after the FOMC had completed its meeting.
However, at the two-day meeting in February 1994, the announcement was made in the morning on the second day, soon after the
Committee made its decision. In that instance, the Committee
preferred to make the information available before the weekend
and ahead of the Desk's regular 11:30 a.m. operating time. The one
policy action taken between meetings was also announced in the
morning.
In February 1995, the Committee formally adopted new procedures for conveying information to the public. The procedures
include the announcement of all changes in the stance of monetary
policy on the day the changes are made.
573
The Committee again limited the size of the move
to avoid any overreaction in the financial markets.
A third slight upward adjustment in reserve pressures was made between meetings in mid-April.
At the May meeting, with the economy evidently
expanding on a solid and self-sustaining basis, the
FOMC voted to have the full ^-percentage-point
increase in the discount rate that had been approved
that day by the Board of Governors show through
to reserve conditions. The Committee felt that
financial markets could absorb this more aggressive policy adjustment. The Federal Reserve press
release announcing these moves stated that "these
actions, combined with the three adjustments initiated earlier this year by the FOMC, substantially
remove the degree of monetary accommodation
that prevailed throughout 1993."
At the conclusion of the July FOMC meeting, at
which no policy change was initiated, a Federal
Reserve press spokesperson indicated that the
meeting had adjourned and that no further
announcement would be made. The Committee
authorized this step to avoid uncertainty about its
intentions. Similar statements were authorized following the other two Committee meetings at which
no rate actions were taken.
The FOMC next raised reserve pressures at
its August meeting, when the full amount of a
V^-percentage-point hike in the discount rate
approved by the Board that same day was passed
through to reserve markets. A Federal Reserve
press statement indicated that "these measures
were taken against the background of evidence of
continuing strength in the economic expansion and
high levels of resource utilization," and went on to
add that "these actions are expected to be sufficient, at least for a time, to meet the objective of
sustained, noninflationary growth."
The economy continued to display considerable
forward momentum over the autumn, and there
was some sense that past policy actions might be
having less effect than expected, even in sectors
believed to be especially sensitive to interest rate
increases. At its November meeting, the Committee agreed that a substantial firming in policy was
appropriate. In its final policy move of the year, the
Committee voted to pass through to reserve conditions the full effect of a 3/4-percentage-point hike in
the discount rate approved that day by the Board of
Governors.
574
Federal Reserve Bulletin • June 1995
Interest rates across the maturity spectrum rose
sharply in 1994. Yields on Treasury coupon securities ended the year 150 to nearly 350 basis points
higher than they were a year earlier, while the
coupon yield curve flattened substantially.
Yields rose dramatically in the first few months
after the Federal Reserve began to tighten policy in
early February. By mid-May, the yield on two-year
Treasury notes had risen about 180 basis points,
and the thirty-year bond yield was up more than
110 basis points. Market analysts sensed that the
economy retained significant forward momentum
and anticipated that the Federal Reserve would
respond forcefully to ward off inflationary pressures. Consequently, rates on many short- and
intermediate-term securities rose, and a wide
spread emerged between these yields and the federal funds rate.
Longer-term yields also rose as investors grew
anxious over whether the gains made in reducing
inflation in recent years might begin to erode. Market participants focused on the inflation risks posed
by the shrinking degree of economic slack, and
they were disturbed by information appearing in
manufacturers' surveys, as well as evidence from
commodity price movements, that suggested an
intensification of price pressures. Rising interest
rates in European countries and weakness in the
dollar spilled back and reinforced the upward
momentum in domestic yields. Hedging activity in
the mortgage-backed-debt market, a sector particularly hard hit by the sharp rise in yields, lifted rates
on intermediate-term Treasury securities.3
From mid-May through August, yields moved in
a broad trading range. Large rate movements were
often followed by abrupt reversals, a pattern that
resulted in generally small net changes. Investors
responded to economic data that presented a mixed
picture. Episodes of dollar weakness continued to
weigh on sentiment, as they did intermittently
throughout the year. Meanwhile, the monetary policy adjustments in May and August were believed
to have brought policy to a more neutral position,
and they encouraged brief rallies in debt markets.
Driven largely by a spate of strong economic
statistics, interest rates across most maturities
resumed their climb from September to early
November, rising 65 to 85 basis points. Measures
of resource utilization notched higher, and a string
of reports showing a resilient housing sector raised
questions about the impact of previous interest rate
hikes. Survey results of input price pressures faced
by manufacturers continued to flash warning signals. By late autumn, it was widely felt that the
economy was bumping up against its long-run
capacity limits, and many traders began to fear that
the Federal Reserve was falling behind in its efforts
to rein in inflationary pressures. In late October, the
yield on the most recently auctioned thirty-year
Treasury bond exceeded 8 percent for the first time
in more than two years.
From just before the November FOMC meeting
until year-end, the Treasury coupon yield curve
flattened further. Short-term Treasury n coupon
yields rose another 65 basis points, while longterm yields edged down about 20 basis points. The
Committee's action in November, viewed by market participants as aggressive, and continued strong
economic statistics convinced most analysts that
further policy tightening moves were in store and
put upward pressure on shorter-term rates. Selling
in the front end of the yield curve was exacerbated
by liquidations and hedging of portfolios made
unprofitable by higher interest rates. Adding to the
pressure was the disposal of the securities held by
the Orange County, California, Investment Pool
after its steep financial losses became known.4
Meanwhile, the November policy action and continued favorable aggregate price statistics instilled
confidence that the Federal Reserve would succeed
in preventing a significant increase in inflation pressure. This expectation helped to bring down longerterm yields.
The sharp increases in interest rates in 1994 also
had profound effects on investor returns, financial
flows, and issuance in the fixed-income markets
3. Higher interest rates extended the expected durations of
mortgage-backed securities, thereby compounding the downward
pressure on prices for this debt. Holders of mortgage-backed securities often hedge their exposures by selling intermediate-term
Treasury debt.
4. Roughly $20 billion of securities held by the highly leveraged
Orange County fund were sold. Most of these securities were
government agency notes, many of them derivative instruments
that paid interest according to formulas based on movements in
market yields.
Financial Market
Developments
Monetary Policy and Open Market Operations during 1994
(table 3). Investors holding portfolios consisting of
longer maturity securities sustained particularly
heavy losses. The Lehman Brothers Long Treasury
Bond Index fell IVi percent, the first yearly decline
in this measure since 1987 and the steepest decline
in the twenty-two years spanned by the index. Net
returns for most categories of bond mutual funds
were negative in 1994, in many cases after the
funds posted strong earnings the previous year.
Throughout 1994 there were reports of institutions
suffering steep financial losses in domestic securities markets. In some cases, the losses were linked
to exposures to derivative instruments that magnified the effect of yield movements on interest
payments.
Efforts to reduce exposure to rising interest rates
spurred huge reinvestment flows in financial markets. Redemptions from bond mutual funds soared
following a year of heavy inflows, and withdrawals
frequently outpaced inflows as investors reacted to
reports of poor performance. The growth in noncompetitive awards at Treasury auctions suggested
that many participants began to redirect their investments into securities markets. A heightened
sense of uncertainty in financial markets accompanied these elevated flows. Implied price volatility
in longer-term Treasury issues was substantially
higher in 1994 than in 1993. Meanwhile, new
issuance in major sectors dropped significantly, in
part reflecting higher borrowing costs.
3. Measures of performance and activity in domestic
securities markets
i on longer-run Treasury issues are based on the 1
Brothers Long Treasury Bond Index and reflect changes in principal value
and coupon income. Returns for the various categories of mutual funds are
from Lipper Analytical Services, Inc. Debt issuance data are from Securities
Data Company. Mutual fund flow data are from the Investment Company
Institute.
IMPLEMENTATION
Operating
575
OF POLICY
Procedures
In 1994, the FOMC continued to express its policy
directives in terms of a desired degree of reserve
pressure. Reserve pressure effectively refers to the
costs and other conditions under which the Federal
Reserve makes reserves available to the banking
system. The FOMC has informally used the federal
funds rate as a guide for evaluating conditions of
reserve availability since the late 1980s.
In addition, the FOMC has continued to express
reserve pressures in terms of borrowed reserves, an
approach that involves using nonborrowed reserves
to satisfy most, but not all, of the demand for
reserves, while forcing banks to meet remaining
needs at the discount window, where access is
rationed. When the FOMC has increased (or
reduced) reserve pressures without a change in the
discount rate, expected borrowing has been
adjusted upward (or downward) accordingly. The
adjustments have been based on the premise that
the more the banks are forced to borrow at the
discount window to meet their demand for reserves,
the more they will bid up the federal funds rate
relative to the discount rate.
In the late 1980s, however, the relationship
weakened appreciably, in part because a series of
banking crises had encouraged observers to associate discount window borrowing with financial
difficulties. As a result, banks became extremely
reluctant to borrow. Although the banking crises
have passed and the association of discount
window borrowing with financial problems presumably has faded somewhat, banks apparently
still have a reluctance to utilize their borrowing
privileges. Consequently, if borrowing were forced
to higher levels, the federal funds rate probably
would rise substantially more than it had in the
past. Against this background, the Desk has continued to develop objectives for nonborrowed
reserves calculated as estimated demands for total
reserves less the allowance for adjustment and
seasonal borrowing. Whenever actual discount
window borrowing has differed significantly from
the allowance, however, the Trading Desk has
accepted the deviation and informally modified the
nonborrowed reserve objective accordingly, rather
576
Federal Reserve Bulletin • June 1995
than force unwanted changes in the federal funds
rate.5
Between February and April, the FOMC's
reserve tightening actions lifted the anticipated
spread between the federal funds and discount rates
from zero, where it had been since September
1992, to 75 basis points. The spread remained at
75 basis points for the balance of the year because
the last three policy steps involved equal changes
in both rates.
With this widening of the spread, borrowing
could have been expected to increase significantly.
However, adjustment borrowing actually decreased
slightly in 1994, averaging $65 million a day compared with $75 million a day in 1993. Although the
decrease is outwardly surprising, closer examination of the data shows some indications of the
expected association between borrowing and the
funds rate. Adjustment borrowing did pick up on
reserve-period settlement days, and it rose for most
size classes of banks. Settlement-day adjustment
borrowing averaged $336 million in 1994, almost
double the $180 million average in 1993. Adjustment borrowing on nonsettlement days by smalland medium-sized banks also increased in 1994,
although by less than would have been expected on
the basis of historical relationships from the early
1980s. Some of the shortfall in borrowing likely
reflected a continuing reluctance to utilize the discount window, but the strong liquidity positions of
many of these banks also may have played a role.
Small- and medium-sized banks usually account
for a considerable portion of nonsettlement-day
borrowing.
The decline in average borrowing resulted
entirely from a reduction in nonsettlement-day borrowing by large money center banks. These banks
have traditionally concentrated their borrowing on
settlement days, and in 1994 all of their borrowing
occurred on those days. By contrast, members of
this group borrowed seven times on nonsettlement
days in 1993, either because of operational difficulties or temporarily elevated funds rates.
In the case of seasonal borrowing, the rate incentive for stepped-up borrowing in 1994 was small
because the rate charged on seasonal borrowing
closely tracked federal funds and certificate of
5. The borrowing relationship has been discussed more extensively in previous annual reports of the Open Market Function.
deposit rates. Nonetheless, seasonal borrowing was
persistently higher than in recent years; it averaged
$193 million in 1994, compared with $109 million
the year before. It still followed the typical seasonal pattern, which reflected demands for agricultural loans. As a result, the Desk made ten upward
technical adjustments to the formal borrowing
allowance between May and August 1994 and nine
downward adjustments over the remainder of the
year. The increased use of the program was related
in part to a marked rise in demand for farm credit at
small banks. In addition, strong loan demand at
midwestern correspondent banks might have constrained the correspondents' ability to provide
seasonal funding to their respondent banks.6
The Desk's Approach to Reserve
Management1
Reserve Patterns over the Year
The behavior of narrowly defined money, Ml, had
an important influence on reserve supplies and
demands over the year.8 Currency registered
another year of strong growth, and the resulting
record $37 billion increase in currency in circulation was the primary factor behind the substantial
need to provide reserves in 1994.9 A decline in the
deposit component, however, limited the overall
growth of Ml and contributed to a fall in the
demand for reserves. Consequently, required
reserves, the primary source of demand, slipped
about $2 billion, reducing the need to add reserves
over the year.
Several other factors also modestly reduced the
Desk's need to provide reserves. Applied vault
cash, a source of supply, increased about $3 billion,
in part mirroring the currency expansion. Rising
interest rates led banks to cut their required clearing balances about $2 billion as the rate at which
6. Only small banks are eligible for the seasonal credit program.
7. Many of the statistics cited in this section appear in tables in
appendix C.
8. Changes in the components of M l and the reasons for the
components' behavior are described in appendix A.
9. Currency in circulation, which is the factor that affects
reserve balances, includes cash held by depository institutions; for
money supply calculations, however, this vault cash is subtracted.
Monetary Policy and Open Market Operations during 1994
they accumulated earned income credits rose.10
Because the declines were not offset by higher
excess reserves, the lower clearing balances lessened the overall need to provide reserves. These
balances had been increased sharply in 1991 and
1992, when banks were adapting to lower required
reserve levels, and had been lifted modestly in
1993.11 On balance, cumulative changes in other
supply and demand factors had smaller effects on
total reserve needs over the year.12
Outright Transactions and Changes
in the System Portfolio
The Trading Desk met the ongoing need to add
reserves by increasing the Federal Reserve System's portfolio of U.S. government securities. Altogether, the Desk purchased about $25 billion
through six operations conducted in the market,
four of them involving Treasury coupon issues.13
As in the past, the market entries were arranged
when available forecasts suggested that large
reserve shortages would persist for at least several
maintenance periods. The market purchases were
supplemented by nearly $11 billion of acquisitions
from foreign accounts, almost entirely Treasury
bills. These purchases, typically modest in size,
were arranged when orders were compatible with
estimated reserve needs.
10. Earned income credits accumulate at a rate linked to the
federal funds rate. The credits may be used only to pay for certain
priced services provided by the Federal Reserve, and many large
banks hold clearing balances sufficient to generate credits to pay for
all the services they use. As the rate at which the credits are earned
increases, the maximum useful level of a bank's clearing balance
decreases.
11. Technically, clearing balances are treated as a factor reducing the supply of reserves, although they are actually a source of
demand for reserves.
12. The various foreign-exchange-related activities on the System's balance sheet drained less than $0.5 billion. The historical
value of the foreign currency sold was $3.0 billion, about $0.7 billion below the market value. The value of the System's foreign
exchange holdings was increased $2.4 billion as a result of upward
revaluations, while interest earnings totaled $0.9 billion. In the
reserve factor categories, interest earnings and the historical value
of foreign currency transactions appear under "foreign currency,"
while revaluations and the profit or loss on foreign currency transactions appear in the "other items "category.
13. The Desk bought, in par values, $3.3 billion of Treasury
coupon securities on March 15, $5.0 billion of coupons on April 12
(a record volume), $3.8 billion of bills on June 1, $4.5 billion of
coupons on August 30, $3.9 billion of bills on November 9, and
$4.2 billion of coupons on November 29.
577
For a second consecutive year, the Desk did not
sell securities, although it did redeem some.
Because the Treasury no longer sells seven-year
notes, the System's holdings of these notes must be
redeemed early in each quarter as they mature;
more than $2 billion came due in 1994. The Desk
also redeemed agency securities when no suitable
replacement securities were offered and when
issues were called. Holdings of these issues fell for
the fourteenth year in a row, declining almost
$1 billion, to $3.6 billion.
As a result of the Desk's outright activity, total
holdings in 1994 grew $32 billion, to $376 billion.
Although somewhat less than the record rise of
1993, this increase was still the second highest
ever. Slightly more than half of the increase
occurred in Treasury bills, while growth in coupon
holdings was strongest in the one-to-five-year sector. Consequently, the weighted-average maturity
of the System's holdings was virtually unchanged
in 1994.14
Temporary Operations
The Desk used self-reversing operations to meet
the reserve shortages that developed between its
outright operations and to address reserve imbalances created by short-lived movements in other
factors affecting reserves. Almost all of the temporary operations in 1994 added reserves because of
the underlying growth in reserve shortages and the
Desk's preference for letting deficiencies build to a
sizable level before arranging outright purchases.
In fact, the Desk entered only one maintenance
period facing an estimated need to drain more than
a very small amount of reserves, and even that
surplus was subsequently erased by revisions to
forecasts of operating factors. Consequently, only
five matched sale-purchase agreements were
arranged all year, and none exceeded one business
day.
All told, the Desk arranged $362 billion of repurchase agreements (RPs) for the System and
$113 billion that were customer-related. The number and average size of multiday System RPs both
fell in 1994. Several factors contributed to these
14. The average maturity of the portfolio is also affected by the
reinvestment choices made for maturing securities at auctions.
578
Federal Reserve Bulletin • June 1995
declines. A greater share of the year's reserve
needs was met with outright operations: The Desk
typically made outright purchases that left a
remaining estimated need to be met with RPs, but
on several occasions actual needs fell below the
estimated needs. In addition, the Desk further
increased its use of fixed-term operations in 1994
(discussed below), reducing the need for replacement RPs to offset early withdrawals.
Managing Reserves within a Maintenance Period
When developing strategies for each maintenance
period, the Desk took into account the estimated
day-to-day distribution of reserve shortages or
excesses, the potential for revisions to reserve estimates, and bank reserve management strategies.15
The Desk generally met each period's reserve
needs gradually in order to accommodate sometimes uneven reserve distributions and possible
revisions. It often arranged a series of multiday
RPs, many of which matured in three or four days.
The Desk also continued to be guided by the federal funds market. When faced with conflicting
information between the funds rate and forecasts of
reserve supply and demand, the Desk had to evaluate which indicator was likely to provide the more
reliable information about reserve availability.
Banks' reserve management strategies can affect
the funds rate because they influence reserve
demands within a maintenance period. As several
previous reports have explained, the cuts in reserve
requirement ratios made between 1990 and 1992
reduced the level of required operating balances at
the Federal Reserve.16 These lower levels increased
the likelihood that depository institutions would be
unable to eliminate unwanted excess positions
without running an overnight overdraft. Consequently, in the early 1990s, depositories tended to
concentrate their reserve holdings late in a period,
showing particular caution about holding excess
reserves over the weekend, when reserves count for
three days. This reluctance to hold reserves over a
15. The accuracy of the staff forecasts for reserve supply and
demand is reviewed in appendix B.
16. Required operating balances are defined as required reserves
plus required clearing balances less applied vault cash; they represent the working balances held by depository institutions at the
Federal Reserve for supporting payment transactions.
weekend was the main contributor to soft funds
rates on Fridays.
In 1994, banks used these reserve management
practices less aggressively. By the end of 1993,
rapid growth in required reserves and clearing balances had restored required operating balances to
the levels prevailing right before the initial round
of cuts in reserve requirement ratios in late 1990.
Perhaps as a result, the distribution of demands
for excess reserves within a maintenance period
appeared less skewed in 1994 than it had been in
the preceding three years.17 Moreover, the degree
of softness on Fridays was typically slight. Nonetheless, banks were still reluctant to accumulate
large excess reserve holdings early in a maintenance period. By the end of 1994, the level of
required operating balances had once again fallen
back to the lower levels seen in late 1991 and in
1992, thus reducing banks' reserve management
flexibility. This decline reflected the drops in
required reserves and clearing balances and the
expansion in applied vault cash noted earlier.
The Desk further increased its use of fixed-term
RPs on Thursdays to run through the weekend, a
strategy that avoided the risk of large early withdrawals on Fridays if the federal funds rate traded
to the soft side while a large reserve need
remained. The Desk believed that if withdrawable
RPs had been arranged on a Thursday, dealers
probably would have opted to refinance at lower
rates the next day, forcing the Desk to find another
opportunity to add back the reserves. The Desk
also expanded the use of fixed-term RPs on the first
Monday through Wednesday of each period, again
to avoid unwanted withdrawals and to reduce the
number of operations.18 Withdrawable RPs were
still useful at times, particularly when the Desk felt
that operating factors or required reserves might
17. The average levels of excess reserves in the first and second
weeks of a maintenance period in 1994 were $725 million and
$1,375 million respectively. During 1993, the corresponding figures were $170 million and $1,980 million, and a similar distribution characterized 1992 after the round of reserve requirement cuts
made in April of that year. Before December 1990, the distribution
of excess reserves within the maintenance period was, on average,
fairly even. Of course, Desk reserve provision strategies, which
may not match ex ante demands, also contribute to the actual
pattern of excess reserves.
18. A total of forty-four fixed-term RPs were arranged in 1994
(thirty of which were in place on Fridays), compared with thirtyone in the previous year (twenty-three covering Fridays). By contrast, just nine fixed-term operations had been arranged in 1992.
Monetary Policy and Open Market Operations during 1994
turn out to be sufficiently different from estimates
to sharply reduce or eliminate the estimated reserve
need. Thus, withdrawable RPs continued to be used
over the final few days of many maintenance
periods.
Market speculation during the year that monetary policy might be tightened sometimes put
upward pressure on the federal funds rate that did
not seem justified by estimates of reserve imbalances. The Desk remained sensitive to these situations when formulating its operations strategy to
avoid any misunderstanding by market participants, who continued to view open market operations as a possible indicator of policy shifts.19
Consequently, on several occasions when the funds
rate was very high, the Desk arranged overnight
System RPs, in part to prevent any perception that
it was either paving the way for a firming in policy
or hinting at a Committee inclination to change
policy.20 As the year progressed and market analysts began to assume that the FOMC would indicate its policy actions through a public announcement, market participants came to feel that the
Desk's open market activities were less likely to be
used to communicate policy shifts. This perception
gave the Desk more flexibility in selecting its
operations to meet its reserve objectives.
Trading Room Automated Processing System
In 1994, the Desk began arranging its open market
operations using the Trading Room Automated
Processing System (TRAPS). Under TRAPS, the
Desk announces reserve operations and dealers
respond with their propositions through Fedline
terminals. The system is also used to process opera-
19. Misinterpretations did in fact arise. On February 3, with fed
funds trading just Vi6 of a percentage point above the level associated with the desired degree of reserve pressures, the Desk took no
market action to affect reserves because a shortage was not seen.
With an FOMC meeting scheduled to start later that day and with
expectations of a policy shift running high, some participants
interpreted the Desk's inaction as indicating such a shift. In fact,
this was not the case, although the FOMC did decide to firm
pressures the following day. This episode occurred before the
FOMC began to announce policy changes.
20. With expectations , of an easing in policy almost entirely
absent in 1994, the Desk felt freer to add reserves when called for
by its reserve projections, even when the funds rate was slightly
soft. It did so on numerous occasions.
579
tions and to notify dealers of the results. The Desk
started using TRAPS for its temporary operations
in July, followed in August by the first outright
market purchase using the system.
Daylight Overdraft Pricing
On April 14, the Federal Reserve began charging
banks a fee of 10 basis points on overdrafts
incurred in their reserve accounts during the day.21
Previously, daylight overdrafts had been subject to
size limitations related to a bank's capital, but they
were not subject to charges. For a few banks, such
daylight overdrafts were substantial. The Trading
Desk anticipated that the charges might affect its
own operations by encouraging changes in the
functioning of the federal funds and RP markets
and in some banks' reserve management techniques. In preparation for pricing daylight overdrafts, Federal Reserve personnel had conversations with market participants and undertook some
contingency planning. As it turned out, however,
Desk operations were minimally affected in 1994.
Before charges were assessed for daylight overdrafts, reserve management was focused on end-ofday reserve balances rather than on intraday balances. End-of-day balances are important because
they meet reserve requirements. Furthermore,
banks need reserve balances at the end of the day to
avoid overnight overdrafts and their associated stiff
charges. In fact, total reserve balances vary considerably during the day, rising whenever the Federal
Reserve or any entity maintaining an account at
the Federal Reserve—the federal government, federally sponsored agencies, or foreign official
institutions—makes payments and falling whenever it receives payments.22 The most dramatic
movements in intraday balances, however, have
been in the distribution of reserves, with large
21. The fee reflects an annual rate of 24 basis points using a
standard ten-hour day for Fedwire operations. The charge is made
on all end-of-minute overdrafts in excess of a deductible based on
10 percent of the bank's capital. The "Overview of the Federal
Reserve's Payments System Risk Policy," published by the Federal
Reserve System in October 1993, describes the calculations in
detail.
22. Differences in posting times for check credits and debits also
influence aggregate intraday reserve levels.
580
Federal Reserve Bulletin • June 1995
intraday balances occurring at some banks and
huge overdrafts at others during part of the day.23
The previous absence of fees had encouraged
practices that resulted in large daylight overdrafts.
For example, many financial market transactions,
such as interbank federal funds and RP contracts,
did not specify transaction settlement times. Yet
receipt and return times do influence the intraday
distribution of reserves. In federal funds transactions, the sending bank controls the timing of the
reserve transfer. Under daylight overdraft pricing,
it was thought that banks facing intraday reserve
charges might delay sending federal funds in order
to increase their intraday balances. If Fedwire traffic became concentrated near the end of the day, the
funds market could lose liquidity, thus making the
rate a less reliable indicator of reserve availability.
In practice, however, after daylight overdraft
pricing began, the average time for sending funds
transfers over Fedwire moved only slightly to later
in the day. Apparently, many banks did not change
their practices because they did not face large
enough daylight overdrafts from their funds transactions to justify the cost of making changes. Federal funds brokers did report that some requests for
transactions specified sending or returning funds
during specific time periods and noted that some
potential trades were rejected because the counterparty was reputed to be a "late sender." But these
restrictions affected only a small portion of trades
and therefore did not impede market liquidity.
For securities transactions, the sender of the
securities controls the transaction time. Consequently, banks lose reserve balances when they
receive securities, but they cannot control the time
at which that happens.24 Dealers, who rely heavily
on RPs to finance inventories, traditionally had
their clearing banks send the securities to their
counterparties' custody banks between late morning and early afternoon. Then, on the maturity date,
the counterparties' banks typically returned the
securities at the opening of business. The preva23. In the six months before daylight overdraft charges took
effect, peak overdraft levels averaged $124 billion. From mid-April
through year-end, they averaged $70 billion. To put the overdraft
figures in perspective, total end-of-day reserve balances averaged
$34.5 billion and $31 billion respectively, over those two periods.
24. Under the delivery-versus-payment system used for the
transfer of government securities, reserve balances are automatically moved from the account of the bank receiving the securities to
that of the bank sending them when the transfer is processed.
lence of this timing pattern caused both the dealers'
and their banks' accounts to be overdrawn during
the morning because the dealers began the day with
small working balances. In anticipation of daylight
overdraft pricing, the clearing banks informed their
customers that they would pass on the overdraft
charges.
Dealers indicated in conversations with the Federal Reserve that they planned to speed up their
negotiation and processing of RPs in the morning
so that any securities being returned and then refinanced would leave their accounts more quickly.
Some participants predicted that this speedup in RP
operations would cause the market to be liquid
only briefly early in the morning. Such a development was of particular concern to the Federal
Reserve because the Desk's temporary open market operations are routinely executed around
11:30 a.m. The Federal Reserve had chosen that
time because information about reserve levels is
received and analyzed gradually over the morning.
Only part of the data flow could be accelerated. If
the Desk were forced to arrange its open market
operations a couple of hours earlier, it would have
to base its decisions on less reliable data.
To address these concerns, the Desk did make
one change in its procedures: It delayed the return
time for the collateral on its own maturing RPs
from the opening of business until 11 a.m., thereby
leaving reserves in the banking system for a larger
part of the day. It was hoped that the later return
time would encourage the dealers to participate in
the late morning operations.
Once pricing began, the RP market did experience a shift toward somewhat more morning activity, but a number of customers continued to seek
RP investments during the late morning and early
afternoon, so market liquidity was retained. More
rapid processing of trades has accounted for most
of the reduction in peak and average overdrafts.25
In addition, the volume of afternoon trades for next
day delivery has increased.
The Desk saw essentially no change in participation rates in its RP operations after April. Dealers
reported somewhat smaller inventories of securities
left to be financed at midmorning, but on most
days, they were nonetheless able to submit proposi25. Average daylight overdrafts fell from $70 billion in the six
months before pricing to $43 billion over the balance of 1994.
Monetary Policy and Open Market Operations during 1994
tions of sufficient size for the Desk to accomplish
its planned operations. Furthermore, dealers' customers increased their participation in Trading
Desk operations.
APPENDIX A: THE MONETARY
AGGREGATES
Growth of the broader monetary aggregates
remained subdued in 1994. The FOMC voted in
February to retain the growth ranges for M2 and
M3 adopted on a preliminary basis the previous
summer. These ranges were consistent with the
expected slowing of nominal income and the anticipated continuation of the substantial velocity
increases experienced in recent years. The FOMC
reaffirmed these ranges in July. For the entire year,
M2 advanced a mere 1.0 percent, at the lower end
of its annual growth cone, while M3 rose only
1.2 percent, within the lower half of its annual
growth cone.26 Growth in the broader aggregates
was held down in 1994 by weakness in the liquid
components, including savings and interest-bearing
checkable deposits.27 These deposits were relatively unattractive because depositories raised rates
at a much slower pace than market rates rose.28 The
preference for market investments and the resultant
increase in velocity were factors in the Committee's decisions to accept the weak aggregates.
Some components of the broader aggregates,
however, did show strength. Depositories sharply
26. The data on all the monetary aggregates are as of January
26, 1995, and do not reflect the annual seasonal factor and benchmark revisions of February 2. The earlier data are used because
they more closely approximate the information the Committee had
when it made its policy decisions. The revisions generally had a
minimal effect on total growth over the year. On balance, the
revisions redistributed a little more of the net increases in Ml and
M2 into the first half of the year and shifted more of the growth in
M3 into the second half of the year. The annual changes of the
monetary aggregates are measured from the fourth quarter of 1993
to the fourth quarter of 1994. Data on noniinancial debt reported in
this section are as of March 3, 1995.
27. The behavior of the monetary aggregates is described in
more detail in the "Monetary Policy Report to the Congress Pursuant to the Full Employment and Balanced Growth Act of 1978"
(Board of Governors of the Federal Reserve System), July 20,
1994, and February 21, 1995.
28. Investors moving out of mutual funds favored instruments
not included in the aggregates, such as the direct purchase of
Treasury debt. For this reason, and because of capital losses suffered by many funds, M2 plus bond and stock mutual funds rose
less than 1 percent in 1994, an increase similar to that for M2 and
well below the nearly 7 percent gain of the previous year.
581
increased their issuance of both overnight Eurodollars and RPs, thus lifting M2. In addition, during
the second half of the year, issuance of consumer
time deposits picked up, as did growth in retail
money market mutual funds. M3 received some
support from large time deposits and term RPs and
Eurodollars, while institutional money funds were
very weak early in the year but showed more
robust growth later. The strength in some of these
components reflected expanded bank funding
needs. Total bank credit rose 6.8 percent in 1994,
after having grown 5.0 percent the previous year.
The increase was concentrated in bank lending;
aggregate holdings of securities fell modestly on
balance over the year.29
After three consecutive years of rapid growth,
Ml rose only 2.4 percent in 1994. The slowdown
in part reflected substantial increases in opportunity
costs, which depressed deposits. Reduced mortgage refinancing activity also weakened demand
deposits, and sweep programs initiated by several
banks lowered other checkable deposits.30 But currency, buoyed by heavy shipments overseas, registered another year of strong growth, expanding
about 10 percent over the four quarters.
Finally, domestic nonfinancial debt grew 5.3 percent in 1994. The improved balance sheet condition of many borrowers supported growth of
nonfederal debt. Total debt ended the year toward
the lower end of its monitoring range.
APPENDIX B: RESERVE FORECAST
ACCURACY
This appendix reviews the accuracy of staff forecasts of the factors affecting reserve supply and
demand. For the year, the accuracy of the forecasts
for required reserves was similar to that for 1993 at
each stage of the maintenance period (table B.l).
The Desk maintained a formal allowance of $1 bil-
29. Credit expansion was partially funded by bank borrowings
from abroad, which nearly doubled over the year.
30. In January, one large regional bank initiated a sweep program that transferred funds from other checkable deposits into
money market deposit accounts. Another large regional bank
phased in a similar program during September and October. Altogether, these programs lowered Ml growth about 1 percentage
point in 1994. The sweep programs shifted funds between accounts
included in M2 and therefore had no effect on the broader
aggregates.
582
Federal Reserve Bulletin • June 1995
lion for excess reserves during each of the twentysix maintenance periods in 1994, but it often made
informal allowances when demand for excess
reserves was expected to be above or below the
path allowance.31
On average, the estimates available at the beginning of the period of the factors affecting the
supply of nonborrowed reserves improved. The
smaller forecast errors largely resulted from better
estimates of the Treasury balance and less distortion from the treatment of premiums on RPs, while
currency projections showed some deterioration.
There was a marked improvement in the first-day
estimates of the Treasury's balance at the Federal
Reserve in 1994, particularly around the important
September and December tax payment dates. A
surge in tax receipts can cause the Treasury's total
cash holdings to exceed the capacities of the Treasury Tax & Loan (TT&L) note accounts at depository institutions, with any excess flowing into the
Treasury's balance at the Federal Reserve. Forecasting the balance in the Federal Reserve account,
therefore, can be particularly difficult around these
times. In 1994, Treasury cash levels were above
the capacity of the TT&L accounts on fourteen
days, much less frequently than in 1993, when
capacity was exceeded on thirty-two days. Two
developments accounted for much of the difference: In September 1994, the capacity was about
31. Excess reserves are estimated from a combination of models
and observed behavior during maintenance periods. Any analysis
of the accuracy of these estimates would be misleading because it
would not take account of the informal revisions.
B.l.
$8 billion to $10 billion higher than it was a year
earlier, making room for more tax receipts. In
December, approximately $35 billion of Treasury
cash management bills matured without replacement, compared with $14 billion in December
1993. The enlarged maturities limited the size of
the Treasury's total cash holdings.
Another factor reducing measured forecast errors
was a decline in average premiums on RPs and on
coupon securities purchased, elements in the "other
items" category. The measured impact of any
reserve transaction is based on the par value of the
securities, although the actual impact depends on
the market value of the securities. In practice, the
Desk allows for possible net premiums (premiums
less discounts) when they are expected to be large,
so that the premiums do not constitute actual forecast misses. Average net premiums in 1993 had
grown to 8 percent on all RPs and to 15 percent on
market purchases of coupons as a result of falling
interest rates. Because of rising interest rates in
1994, however, the average net premiums on securities held under RP fell back to about 2 percent of
the par value, with discounts outweighing premiums on some operations. Average net premiums
fell to 8 percent on coupons purchased in the
market.
Currency projections at the beginning of maintenance periods deteriorated in 1994. Currency often
behaved in a manner at odds with past seasonal
patterns, which are used for forecasting purposes.
In the first and last maintenance periods of 1994,
typically times of large seasonal swings, currency
drained fewer reserves than initially anticipated.
Approximate mean absolute errors for various forecasts of reserves and operating factors
Millions of dollars
NOTE. A range indicates varying degrees of accuracy for the staff forecasts of the Federal Reserve Bank of New York and the Board of Governors.
Values are rounded to the nearest $5 million.
Monetary Policy and Open Market Operations during 1994
APPENDIX C:
TABLES SUMMARIZING
C.2.
1994 DESK
ACTIVITY
583
System outright operations by type of transaction and
counterparty
Billions of dollars
The tables in this appendix support the text discussion of the Trading Desk's approach to reserve
management in 1994. The operating factors affecting bank reserves appear in table C.l. The Desk's
outright operations are summarized in table C.2,
and the operations' effects on the System portfolio
are presented in tables C.3 through C.5. Temporary
operations are reported in table C.6.
C.l.
Reserve measures and factors affecting reserves
NOTE. Values are on a commitment basis.
C.3. System portfolio: summary of holdings
— of dollars
NOTE. Figures may not add to totals because of rounding.
1. Change from maintenance period ended January 5, 1994, to that ended
January 4, 1995.
2. Change from maintenance period ended January 6, 1993, to that ended
January 5,1994.
3. Not adjusted for changes in required reserve ratios.
4. Indicates impact of changes in operating factors on bank reserves. All
items are biweekly averages.
5. Matched sale-purchase agreements with foreign accounts are added
back in.
6. Acquisition value plus interest. Revaluations of foreign currency holdings are included in "other items."
7. Includes customer-related repurchase agreements.
NOTE. Values are on a commitment basis. Changes in holdings are from
year-end to year-end. Figures may not add to totals because of rounding.
(Tables C.4-C.6 appear on page 584.)
584
C.4.
Federal Reserve Bulletin • June 1995
S y s t e m p o r t f o l i o o f Treasury and federal a g e n c y securities, s e l e c t e d years, 1 9 6 0 - 9 4
NOTE. Figures may not add to totals because of rounding. Values are on a
commitment basis.
C.5.
W e i g h t e d - a v e r a g e maturity o f marketable Treasury
debt, s e l e c t e d years, 1 9 6 0 - 9 4
Months
1. The effects of all outstanding temporary transactions, including repurchase agreements and matched sale-purchase agreements with foreign
accounts, are excluded from the calculation of the average maturity of the
portfolio.
1. As percent of total System Account portfolio,
C.6.
S y s t e m temporary transactions
Percent
NOTE. Figures may not add to totals because of rounding.
1. Number of rounds. If the Desk arranged repurchase agreements with
two different maturities on the same day, the agreements are treated as one
round. The Desk arranged such multiple repurchase agreements on two days
in 1993; none were arranged in 1994.
2. Volumes exclude amounts arranged as customer-related repurchase
agreements.
585
Treasury and Federal Reserve
Foreign Exchange Operations
This quarterly report describes Treasury and System foreign exchange operations for the period
from January through March 1995. It was prepared
by Peter R. Fisher, Executive Vice President, Federal Reserve Bank of New York, and Manager for
Foreign Operations, System Open Market Account.
Claudia Corra was primarily. responsible for
preparation of the report.1
During the first quarter of 1995, the dollar declined
11.3 percent against the German mark, 13.1 percent against the Japanese yen, 0.2 percent against
the Canadian dollar, and 7.8 percent on a tradeweighted basis.2 On March 2, the U.S. monetary
authorities intervened in the foreign exchange markets, purchasing $300 million against the Japanese
yen and an equal amount against the German mark.
The US. monetary authorities entered the market
again on March 3, purchasing $450 million against
the German mark and $370 million against the
Japanese yen as part of a concerted operation to
support the dollar. In other operations, Mexico
drew a net $1 billion on its swap facility with
the Federal Reserve and a net $4 billion on the
Treasury Department's Exchange Stabilization
Fund (ESF), of which a net $1 billion represented
drawings from short-term facilities and $3 billion
from the ESF's medium-term facility. These drawings were part of the $20 billion financial aid
package to Mexico, which the Clinton Administration announced on January 31 and signed on
February 21.
1. The charts for the report are available on request from Publications Services, Mail Stop 127, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
2. The dollar's movements on a trade-weighted basis in terms of
other Group of Ten (G-10) currencies are measured using an index
developed by staff at the Board of Governors of the Federal
Reserve System.
SHIFTING EXPECTATIONS
TO NEW LOWS
TAKE THE DOLLAR
At the end of 1994 many market participants
expected that the dollar would continue to appreciate into 1995. These expectations were based on a
belief that short-term U.S. interest rates would continue to rise and, as a result, interest rate differentials would widen in the dollar's favor. German
monetary policy was expected to remain steady
through the first part of 1995, in turn, suggesting
that exchange rate movements within Europe
would remain subdued. At the same time, market
participants anticipated that Japan's current account
surplus would contract as Japan's economic recovery took hold in 1995, while the U.S. current
account deficit would stabilize. During the first
quarter of 1995, however, the expectations that had
supported the dollar in late 1994 started to unwind,
and the dollar declined to historical lows against
the mark and the yen.
U.S. INTEREST RATE EXPECTATIONS
WHILE THE MARK STRENGTHENS
WITHIN EUROPE
SUBSIDE
Having closed the previous quarter at DM 1.5490
and ¥99.55, the dollar declined in a steady but
orderly fashion through mid-February, falling
4.4 percent against the mark to DM 1.4810 and
2.3 percent against the yen to ¥97.27. The decline
reflected various factors operating in the economies
of the major currencies. In the United States, lowerthan-expected housing, retail sales, and nonfarm
payroll data provided initial signs that economic
growth was slowing to more sustainable levels.
Expectations for additional U.S. interest rate
increases faded further after the January 31February 1 Federal Open Market Committee
(FOMC) meeting, at which the Federal Reserve
586
Federal Reserve Bulletin • June 1995
decided to raise both the discount and federal funds
rates 50 basis points to 5.25 percent and 6.00 percent respectively. After this hike, market participants came to expect that monetary policy would
remain on hold through the March FOMC meeting
and possibly through the May meeting as well.
This downward revision in expected U.S. interest
rates contributed to the dollar's decline. In Europe
the German mark began to appreciate sharply
against other European currencies. The prospect of
higher-than-expected wage settlements in Germany
and upward-trending German producer price data
led many market participants to expect an end to
the Bundesbank's easing cycle or perhaps even a
near-term tightening. Perceived political and fiscal
problems in Italy, Sweden, and Spain led to some
flight to the German mark from the Italian lira,
Swedish krona, and Spanish peseta.
In Japan analysts began to revise down their
near-term forecasts for Japanese growth after the
country's severe earthquake on January 17. Moreover, Japanese economic data provided continuing
evidence of weak domestic demand. As concerns
over another postponement in Japan's economic
1.
recovery spread, Japanese stocks came under selling pressure and the Japanese bond market began a
sustained rally. The announcement that Barings
PLC was being placed in administration, together
with the subsequent liquidation of the firm's long
positions in Nikkei stock index futures, placed
additional short-term pressure on Japanese stocks.
Throughout the early part of the quarter the
Mexican financial crisis also hurt dollar sentiment
in at least two ways. First, the U.S. trade deficit was
expected to increase as a result of a protracted
economic crisis in Mexico, adding pressure to
the dollar. Second, the Mexico crisis, coupled
with weaker Canadian financial markets, caused
many overseas investors to develop an aversion to
all North American assets, including dollardenominated assets. Moreover, that aversion grew
as the availability and viability of the first U.S.
financial assistance package, which was initially
reported on January 11, appeared to be losing congressional support. Sentiment turned more positive
with the January 31 announcement of a second
package that also included funds from the International Monetary Fund (IMF) and the Bank for
F o r e i g n e x c h a n g e h o l d i n g s o f U.S. m o n e t a r y authorities, b a s e d o n current e x c h a n g e rates
Millions of dollars
Quarterly changes ii balances by soun
Balance
Dec. 31, 1994
Impact of
sales3
income
Currency
valuation
adjustments3
3.4
5.3
.0
188.7
23.1
4.9
1.655.0
1.213.7
-134.9*
Balance
Mar. 31. 1995
FEDERAL RESERVE
13,405.2
8,510.0
.0
Deutsche marks
Japanese yen
Mexican pesos4
-375.0
-335.2
995.1
14,877.3
9.416.9
865.1
116.3
Total
127.3
22,031.5
Interest receivables*
25,286.5
U.S. TREASURY
EXCHANGE STABILIZATION F U N D
: marks
Interest receivables6
Total
<
7,500.6
U,801.0
.0
-375.0
-335.2
3,983.6
64.9
19,366.5
NUTE. Figures may nut sum to totals because uf ruunding.
1. Purchases and sales include foreign currency sales and purchases
related to official activity, swap drawings and repayments, and warehousing.
2. Calculated using marked-to-market exchange rates; represents the difference between the sale exchange rate and the most recent revaluation
exchange rate. Realized profits and losses on sales of foreign currencies,
computed as the difference between the historic cost-of-acquisition exchange
rate and the sale exchange rate, are shown in table 2.
3. Foreign currency balances are marked to market monthly at monthend exchange rates.
3.4
5.3
.0
103.2
29.1
16.4
916.6
1.696.1 s
.0
8,148.8
13,196.3
4,000.0
88,0
25*433.2
4. See table 4 for a breakdown ul' Mexican swap activities. Nute that the
investment income on Mexican swaps is sold back to the Bank of Mexico.
5. Valuation adjustments on peso balances do not affect profit and loss
because the impact is offset by the unwinding of the forward contract at the
repayment date. Note that the ESF does not mark to market its peso holdings, but the Federal Reserve System does.
6. Interest receivables for the ESF are revalued at month-end exchange
rates. Interest receivables for the Federal Reserve System are carried at cost
and are not marked-to-market until interest is paid.
Treasury and Federal Reserve Foreign Exchange Operations
International Settlements (BIS). Nonetheless, continued political debate within the United States
over the existence and size of the assistance package continued to weigh on market sentiment during
much of February.
By February 17 the dollar traded to DM 1.4810,
a level last reached in October 1992, and declined
to ¥97.27, a level last reached on November 9,
1994.
THE DOLLAR'S DECLINE
IN LATE FEBRUARY
ACCELERATES
Starting in late February, the pace of the dollar's
decline accelerated. First, comments by Federal
Reserve officials reinforced the perception among
market participants that the central bank might be
nearing, or might even have reached, the end of its
tightening cycle. In particular, market participants
interpreted comments by Federal Reserve Chairman, Alan Greenspan, during his semiannual
Humphrey-Hawkins testimony on February 22, as
suggesting a significant change in tone. Attention
focused almost exclusively on the Chairman's com2.
N e t profits or l o s s e s ( - ) o n U.S. Treasury
and Federal R e s e r v e f o r e i g n e x c h a n g e operations,
b a s e d o n historical c o s t - o f - a c q u i s i t i o n e x c h a n g e rates
Millions of dollars
US. Treasury
Exchange
Stabilization
Fund
Period
587
ment that "there may come a time when we hold
our policy stance unchanged, or even ease, despite
adverse price data, should we see signs that
underlying forces are acting ultimately to reduce
inflationary pressures." Second, pressure within
Europe's Exchange Rate Mechanism (ERM) continued to build, spurring demand for marks and
taking the German currency to an all-time high on
a trade-weighted basis. Besides the persistent
strains on the Italian lira, the Swedish krona, and
the Spanish peseta, the French franc came under
pressure amid increased uncertainty ahead of the
two-round presidential election in April and May,
while sterling declined because of the perceived
weakness of Prime Minister John Major's government. Third, expectations that dollar sales by Japanese corporations and financial institutions would
accelerate up to the March 31 Japanese fiscal yearend also weighed on the dollar.
Several discrete factors contributed to negative
dollar sentiment in late February. First, comments
by several Federal Reserve officials between February 28 and March 2 were perceived by market
participants as suggesting a lack of official concern over the value of the dollar. Second, the defeat
of the Balanced Budget Amendment created
the perception—particularly among overseas
investors—that the United States lacked the political will to reduce its chronic fiscal deficit. Third,
press reports suggesting that the United States
would adopt a tougher stance toward Japan in
ongoing trade talks also contributed to the dollar's
weakness.
Valuation profits and bases on
asofUecST,!^
'
2,170.4
2,407.2
708.1
4,577.6
yen
4,052^4
profits tutd tosses
frQjtt fotfci&n cufTPttcy sales *
Dec. 31, 1994-Mar. SI. 1995
m
81.6
105.6
58.2
105.9
187.2
164.1
3,747.2
3,520.5
yen
1469.8
4.939.9
7,267.7
6,509.8
Valuation profits a
TofmTsTms 1
tabl mes
Total
1. As indicated in table 1, foreign currency sales totaled $750 million
against German marks and $670.4 million against Japanese yen.
2. Valuation profits or losses are not affected by peso holdings, which are
canceled by forward contracts.
U.S. MONETARY AUTHORITIES BUY
AGAINST THE MARK AND YEN
DOLLARS
As the dollar's decline accelerated in late February
and early March, portfolio managers began to liquidate substantial long-dollar positions. Against a
backdrop of reduced liquidity and limited risk
appetite, these flows added considerable momentum to the dollar's decline. Moreover, as the dollar
breached certain levels, some market participants
were knocked out of their options positions, forcing them to sell dollars quickly to reestablish protection against an even weaker dollar.
On the morning of Thursday, March 2, in nervous and illiquid market conditions, the dollar fell
588
Federal Reserve Bulletin • June 1995
precipitously—first against the yen and then against
the mark. By midday, the dollar had reached lows
of ¥94.93 and DM 1.4348, declines of almost two
yen and three pfennigs respectively from the previous day's closing levels. That afternoon the Federal
Reserve Bank of New York's Foreign Exchange
Desk entered the market on behalf of the U.S.
monetary authorities, purchasing $300 million
against the German mark and $300 million against
the Japanese yen in an effort to help stabilize the
currency. The purchases were divided evenly
between the Federal Reserve and the Department
of the Treasury's ESF. The dollar reached highs of
DM 1.4463 and ¥95.49 after the Desk entered the
market but closed the day at DM 1.4410 and
¥95.15.
On Friday, March 3, in early European trading,
several European central banks intervened in concert to support the dollar. At about 9:10 a.m., with
the dollar trading at DM 1.4490 and ¥94.80, the
Desk entered the market to purchase dollars against
marks and yen on behalf of the U.S. monetary
authorities. The Desk was joined by thirteen other
central banks in a conceited effort to support the
dollar. Also on March 3, Treasury Secretary Rubin
confirmed the U.S. intervention and highlighted
official concern over the dollar's recent decline by
stating, "A strong dollar is in our national interest.
That is why we have acted in the markets in
concert with others. The administration is continuing its work on strengthening economic fundamentals including bringing down the budget deficit
further."
During the day the Desk purchased $450 million
against the German mark and $370 million against
the Japanese yen. All the dollar purchases were
divided equally between the Federal Reserve and
the ESF. Throughout the day the dollar met aggressive selling interest by market participants and
proceeded to trade progressively lower, closing at
DM 1.4250 and ¥94.08.
THE DOLLAR EVENTUALLY STABILIZES
AGAINST THE MARK BUT REMAINS
UNDER PRESSURE AGAINST THE YEN
In the week immediately after the intervention, the
dollar continued to decline rapidly against the mark
and the yen. Demand for marks increased after the
March 5 realignment of the ERM, in which the
central parity of the Spanish peseta was effectively
devalued by 7 percent and that of the Portuguese
escudo by 3.5 percent. On Wednesday, March 8,
during Asian trading hours, the dollar reached new
historical lows of DM 1.3438 and ¥88.72.
The dollar started to stabilize later that day, after
official interest rate increases in several European
countries and dollar-supportive statements by
senior monetary officials. On March 8, France,
Belgium, Denmark, and Portugal increased official
short-term interest rates in an attempt to alleviate
pressure on their currencies. Soon thereafter,
Bundesbank President Tietmeyer stated that the
Bundesbank would see if there was "room for a
small interest rate cut" but added that the Bundesbank would also consider the possibility of raising
3.
C u r r e n c y arrangements
Millions of dollars
Institution
Amount of
facility
Outstanding as of
Mar. 31,1995
FEDERAL RESERVE
RECIPROCAL ARRANGEMENTS
Austrian National Bank
National Bank of Belgium . . . .
Bank of Canada
National Bank of Denmark . . .
Bank of England
Bank of France
Deutsche Bundesbank
Bank of Italy
Bank of Japan
Bank of Mexico 1
Regular swaps
Temporary swaps
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
Dollars against Swiss francs
Dollars against other authorized
European currencies
250
1,000
2,000
250
3,000
2.000
6,000
3,000
5,000
3,000
3,000
500
250
300
4,000
A
1,000
t
600
1,250
15,400
Total
U.S. TREASURY
EXCHANGE
STABILIZATION F U N D
Deutsche Bundesbank
Bank of Mexico1
Regular swaps
Temporary swaps . . . . . . .
United Mexican States
swaps' .
1,000
0
3,000
1300
1,000
0
3.000
Total'
1. Facilities available to Mexico comprise regular and temporary shortterm swaps between the Bank of Mexico and both the Federal Reserve and
the ESF, as well as medium-term swaps and government guarantees between
the government of Mexico and the ESF. The total amount available from
both medium-term swaps and government guarantees is $20 billion, less any
outstanding drawings on the short-term facilities.
Treasury and Federal Reserve Foreign Exchange Operations
interest rates. Market participants noted that this
was the first time in several months that President
Tietmeyer had mentioned the possibility of another
interest rate cut in Germany. Tietmeyer later added,
"In my view, the dollar was, and still is, undervalued. The deutsche mark is valued too high."
That same day, speaking before the House Budget
Committee, Chairman Greenspan said, "The
weakness of the dollar against other major currencies is both unwelcome and troublesome. Dollar
weakness, while very likely overdone, is unwelcome because it adds to potential inflation
pressures in our economy." Market participants
reacted positively to Chairman Greenspan's comments, as well as to additional dollar-supportive
comments by Treasury Secretary Rubin, because
these statements helped assuage concerns that
U.S. officials were unconcerned about the dollar.
Over the rest of the period the dollar traded in a
range of DM 1.3730 to DM 1.4225 against the
mark.
Despite its modest rebound against the mark, the
dollar remained under pressure against the yen
throughout March. Sentiment toward the dollar
continued to be negative, as market participants
focused on reports of capital repatriation by Japanese financial institutions and of dollar sales by
Asian central banks looking to rebalance reserves
or cover yen-denominated liabilities. In addition,
continued concerns about the Japanese current
account surplus caused the yen to appreciate
sharply against the dollar. This upward pressure on
the yen continued despite rising speculation of an
imminent cut in the Bank of Japan's official discount rate (ODR).
After the March 28 FOMC meeting, at which no
monetary policy announcement was made, the dollar continued to drift lower. Although market participants expected that monetary policy would
remain steady, weak data on durable goods and
home sales provided additional evidence of slower
growth, further solidifying market participants'
views that the United States was approaching the
end of its tightening cycle.
On March 30 the Bundesbank surprised the
markets with a cut of 50 basis points in its discount rate, to 4 percent, and a cut of 35 basis points
in its repurchase rate for government securities,
which had been fixed at 4.85 percent since July
1994. The announcement supported the dollar for a
589
time, but the rally was short-lived as the dollar
failed to break out of its March trading range,
prompting fresh dollar sales. The following day,
March 31, the Bank of Japan allowed its overnight
call rate to fall to a historical low of 1.75 percent.
Upward pressure on the yen continued, however,
with market participants expressing disappointment that the ODR had not been reduced. The
dollar proceeded to fall to a new postwar low of
¥86.30 on March 31 in somewhat illiquid trading
conditions. The dollar closed the quarter at
DM 1.3735 and ¥86.50.
MEXICAN FINANCIAL MARKETS
VOLATILE
REMAIN
Over the period, the dollar rose 39.4 percent against
the peso. The new peso reached a record low of
NP 7.65 on March 9 before recovering somewhat
during the latter part of the period. As the period
opened, uncertainty over the course of Mexican
macroeconomic policy and concerns over the
impact of the devaluation on Mexico's banking
sector led market participants to attach a substantial
risk premium to Mexican financial assets, exacerbating already difficult trading conditions in Mexican money and foreign exchange markets.
During the ensuing weeks, Mexican financial
markets remained under pressure amid growing
doubts about the prospects for passage by the
U.S. Congress of the $40 billion loan guarantee
package. On January 31, President Clinton
4.
D r a w i n g s and r e p a y m e n t s ( - ) b y M e x i c a n m o n e t a r y
authorities
Millions of dollars
Item
Reciprocal currency
arrangements with
the Federal Reserve
Bank of Mexico
(regular)
Currency arrangements
with the US. Treasury
Exchange Stabilization
Fund
Bank of Mexico
(regular)
Medium-term
j Outstanding
Dec. 31,
1994
Jan.
Feb.
Mar.
. . .
.
Outstanding
Mar. 31,
1995
|
•
0
500
1,000
-500
1,000
0
0
500
0
1,000
0
-500
3,000
1.000
3.000
NOIL. Data are <> a value-date basis.
_N
590
Federal Reserve Bulletin • June 1995
announced a new $47.8 billion aid package that
included participation by the IMF and the BIS.
Mexican markets initially rallied on the announcement but remained volatile amid worries that the
second package might be subject to congressional
challenge.
Mexican financial markets started to recover in
early March after the signing, on February 21, of
the $20 billion U.S. portion of the package. Other
factors also provided support, including Finance
Minister Ortiz's announcement of a strict new economic program, which was well received by the
financial community, and the Bank of Mexico's
announcement of its intention to follow a tight and
more transparent monetary policy. For the rest of
the quarter, Mexican markets remained nervous but
traded with a somewhat firmer tone. The peso
closed the period at NP 6.76 per dollar.
MEXICAN SWAP LINE
ACTIVITY
During the period, the U.S. monetary authorities
substantially increased their swap lines with
Mexico, which had stood at $6 billion at the start of
the period. Temporary short-term swap lines were
established on January 2, as the Federal Reserve
agreed to a $1.5 billion facility with the Bank of
Mexico and the ESF agreed to a facility of the
same amount with the Mexican central bank and
government. The Federal Reserve's temporary
facility was later increased to $3 billion on
February 1.
In addition, as part of the US. financial package
signed on February 21, the ESF established a
medium-term swap facility with the Mexican government. The facility allows Mexico to draw up to
$20 billion, less the amounts outstanding from
short-term swaps and securities guarantees.
The Mexican authorities drew on both short- and
medium-term facilities during the period. On two
separate occasions, January 11 and 13, Mexico
drew $250 million from each of its regular shortterm facilities with the Federal Reserve and the
ESF. Then, for value on February 2, Mexico drew
$1 billion from each regular short-term facility.
Mexico drew $3 billion from the medium-term
facility on March 14 and on the same date repaid in
full the January drawings.
CANADIAN FINANCIAL MARKETS
REMAIN UNDER PRESSURE
During the period, the Canadian dollar reached a
nine-year low of Can$1.4272 against the U.S. dollar before recovering late in the quarter to close
relatively unchanged at Can$ 1.3990. Canadian
financial markets remained under pressure because
of ongoing fiscal concerns, fears of Quebec separatism, and spillover from developments in Mexico
and the United States. Moody's announcement that
it was reviewing Canada's foreign and domestic
debt rating for a possible downgrade heightened
the negative sentiment.
Canada's fiscal year 1995-96 budget, released
on February 27, was well received by the market
because it met the planned 1996 target of 3 percent
of GDP and focused on increased spending cuts.
The post-budget rally was short-lived, however, as
market participants increasingly began to hold the
view that the budget did not adequately address
Canada's underlying fiscal trends. During the latter
part of the period, Canadian financial markets
started to recover once market participants had
discounted the possibility of a Moody's downgrade. Canadian markets also benefited toward
the end of the period as concerns about Quebec
separatism receded.
TREASURY AND FEDERAL RESERVE
FOREIGN EXCHANGE RESERVES
The U.S. monetary authorities intervened twice during the period, buying a total of $1.42 billion
against the Japanese yen and the German mark. On
both occasions, intervention operations were
financed equally by the Federal Reserve and the
Treasury Department's ESF. The Federal Reserve
and the ESF realized total profits of $187.2 million
and $164.1 million respectively on their intervention operations. Realized profits and losses on sales
of foreign currencies are computed as the difference between historic cost-of-acquisition exchange
rates and sale exchange rates.
At the end of the period the current values of the
foreign exchange reserve holdings of the Federal
Reserve and the ESF were $25.3 billion and
$25.4 billion respectively. The U.S. monetary
authorities regularly invest their foreign currency
Treasury and Federal Reserve Foreign Exchange Operations
balances in a variety of instruments that yield
market-related rates of return and have a high
degree of liquidity and credit quality. A portion of
the balances is invested in foreign governmentissued securities. As of March 31, the Federal
591
Reserve and the ESF held, either directly or
under repurchase agreement, $9.7 billion and
$13.8 billion respectively in foreign government
securities.
•
592
Industrial Production and Capacity Utilization
for April 1995
Released for publication May 16
Industrial production declined 0.4 percent in April
after a decrease of 0.3 percent in March. More than
half of the April decline was due to a 4.4 percent
drop in the production of motor vehicles and parts.
Manufacturing output fell 0.5 percent, while production advanced 0.2 percent at mines and 1.6 percent at utilities. At 121.1 percent of its 1987 average, industrial production in April was 3.8 percent
Industrial production indexes
Twelve-month percent change
Twelve-month percent change
Manufacturing
Total industry
H 5
+
H5
+
0
0
-
5
-
5
10
10
5
+
5
Materials
Products
0
Nondurable
manufacturing
5
1989
1990
1991
1992
1993
1994
1989
1995
1990
1991
1992
1993
1994
1995
Capacity and industrial production
Ratio scale, 1987 production = 1 0 0
— Total industry
- -
Capacity
^
Ratio scale, 1987 production = 100
140
-
^
-
Production
— Manufacturing
Capacity
—
_
120
100
120
100
Production
80
80
1
1
1
1
140
1
1
1
1
1
1
1
Percent of capacity
Percent of capacity
Manufacturing
Total industry
90
Utilization
90
Utilization
80
70
J
1981
1983
I L
1985
J
1987
I
I
1989
I
I
1991
I
80
70
I L
1993
1995
J
1981
I
1983
I L
1985
All series are seasonally adjusted. Latest series, April. Capacity is an index of potential industrial production.
J
1987
I
I
1989
I L
1991
1993
1995
593
Industrial p r o d u c t i o n and c a p a c i t y utilization, April 1 9 9 5
Industrial production, index, 1987=100
Percentage change
1995
Category
1995'
r
Apr. 1994
to
Apr. 1995
Jan.r
Feb.
.4
.1
-.3
118.0
114.1
154.1
109.7
126.0
.3
.1
.7
.5
.2
-.1
.0
.3
-.7
.0
-.4
-.9
.4
.0
-.2
-.5
-.5
-.4
-1.5
-.2
2.8
1.6
7.4
4.8
5.2
123.3
130.3
115.6
100.2
117.3
.2
.3
.1
-.2
1.1
-.2
-.1
-.3
.7
1.6
-.1
-.1
-.2
-.6
-2.4
-.5
-.8
-.2
.2
1.6
4.2
5.3
2.9
-.5
2.2
Jan.
Feb.
r
Mar.'
Apr.r
Total
122.0
122.0
121.6
121.1
Previous estimate
122.2
122.3
121.9
Major market groups
Products, total2
Consumer goods . . .
Business equipment
Construction supplies
Materials
119.1
115.7
153.7
112.2
126.5
119.0
115.7
154.1
111.3
126.5
118.6
114.7
154.7
111.4
126.2
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
124.5
131.6
116.5
100.0
116.5
124.2
131.5
116.1
100.6
118.3
124.0
131.4
115.8
100.0
115.5
Mar.'
Apr. i
-.3
3.8
Capacity utilization, percent
1994
Average,
1967-94
Low,
1982
High,
1988-89
1995
Apr.
Total
Jan.r
Feb.r
Mar.r
Apr.f
85.2
84.7
84.1
3.1
83.5
81.6
88.3
90.0
85.9
3.5
3.9
2.4
-.1
1.3
82.0
71.8
84.9
83.6
85.5
85.6
85.4
84.9
81.3
80.7
82.5
87.4
86.7
70.0
71.4
66.8
80.6
76.2
85.2
83.5
89.0
86.5
92.6
83.0
81.3
87.2
90.3
85.1
85.2
83.2
90.2
89.7
85.6
84.7
82.8
89.4
90.3
86.8
84.3
82.4
89.2
89.8
84.7
Previous estimate
Manufacturing
Advanced processing
Primary processing .
Mining
Utilities
NOTE. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
1. Change from preceding month.
higher than it was twelve months earlier. Capacity
utilization declined 0.6 percentage point in April
after falling 0.5 percentage point in March. At
84.1 percent, the rate of capacity utilization in
April was below the 85.5 percent high attained this
past December and January and the 84.9 percent
high reached during the 1988-89 period.
When analyzed by market group, the data show
that the overall output of consumer goods
decreased 0.5 percent. The output of the durable
goods component declined 2.8 percent, however,
largely because of a 9.1 percent drop in the production of consumer autos and further sizable cutbacks
in the production of household furniture and various household appliances. The output of the nondurable goods component edged up 0.1 percent; a
rebound in residential sales of energy by electric
2. Contains components in addition to those shown,
r Revised,
p Preliminary.
and gas utilities and increases in the production of
consumer chemical and paper products more than
offset further decreases in the output of food and
clothing and a drop in the production of gasoline
and distillate fuel oil.
The production of business equipment fell
0.4 percent, its first decrease in nearly three years.
The decline was led by a large reduction in the
production of business autos, but output was also
significantly down for medium and heavy trucks,
farm equipment, service industry equipment, and
office furniture and fixtures. The production of
information processing equipment, led by a 2.0 percent increase in computers and office equipment,
advanced 0.7 percent.
The overall output of intermediate products
declined 0.7 percent, with the production of con-
594
Federal Reserve Bulletin • June 1995
struction supplies falling 1.5 percent and the output
of business supplies slipping 0.2 percent.
The production index for materials dipped
0.2 percent, as a decline of 0.6 percent in the output
of durable goods materials more than offset an
increase of 0.7 percent in the output of energy
materials. The production of nondurable goods
materials was unchanged. Declines in the production of original equipment parts for motor vehicles
and in the output of a variety of steel and other
metal products account for much of the decrease in
the output of durable goods materials. Increases in
crude oil and natural gas production and in electricity generation account for the growth in the output
of energy materials.
When analyzed by industry group, the data show
that factory output decreased 0.5 percent in April
after declines of 0.2 percent in February and
0.1 percent in March. In April, the output of
durables manufacturers dropped 0.8 percent, while
that of nondurables manufacturers fell 0.2 percent.
Among durables manufacturers, output declined
noticeably in all major industry groups except
three: industrial machinery and computer equipment, electrical machinery, and instruments. The
rates of growth in these three industries softened
from their March pace, however. Within nondurables manufacturing, significant declines in food,
apparel products, rubber and plastics products, and
leather were largely offset by growth in tobacco,
paper and products, and printing and publishing.
Reflecting the continuing weakness in output,
the factory operating rate declined further in April,
to 83.5 percent of capacity, compared with the
most recent peaks of 85.2 percent in January 1995,
December 1994, and January 1989. The utilization
rate in the primary-processing industries retreated
0.9 percentage point, to 88.3 percent; the most
recent peaks were 90.8 percent in December 1994
and 89.0 percent in January 1989. The utilization
rate for advanced-processing industries fell back
0.8 percentage point; at 81.6 percent, the April rate
was 1.6 percentage points below its January 1995
peak and 1.9 percentage points below its January 1989 peak.
The output of utilities, which had contracted
sharply in March, rebounded somewhat in April.
As a result, the operating rate at utilities rose from
84.7 percent in March to 85.9 percent. Operating
rates at mines increased slightly, to 90 percent,
largely because of gains in metal mining and in oil
and gas well drilling.
•
595
Announcements
REVISIONS OF THE BOARD'S COMMUNITY
REINVESTMENT ACT REGULATIONS
The Federal Reserve Board on April 24, 1995,
issued a completely revised Community Reinvestment Act (CRA) regulation (Regulation BB) and
related conforming amendments to its Regulation
C (Home Mortgage Disclosure Act). Parallel regulations are being issued by the Comptroller of the
Currency, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision for institutions they supervise.
The revisions provide guidance to financial institutions on the assessment of their CRA-related
activities. The final procedures emphasize performance rather than process, promote consistency in
assessments, and reduce unnecessary compliance
burden while encouraging improved performance.
Provisions of the final rule become effective on
January 1, 1996, for small financial institutions and
institutions electing to be evaluated under a strategic plan. In addition, wholesale and limitedpurpose institutions that have collected community
development lending data may elect to be evaluated under a separate test after January 1. Large
retail financial institutions will be subject to the
final rule after July 1, 1997, unless they have
elected to be evaluated under the new provisions
and have collected the required data before that
date.
Data collection requirements become effective
January 1, 1996, and data reporting requirements
become effective January 1, 1997.
Revisions to the CRA regulation were proposed
for public comment on December 21, 1993, and
October 7, 1994. Compared with the 1994 proposal, the final rule deletes the collection of data on
race and gender for small business and small farm
loan customers, raises the holding company asset
threshold from $250 million to $1 billion for institutions to qualify as small financial institutions,
retains separate evaluation standards for different
types of institutions (large retail and small financial
institutions, wholesale and limited-purpose institutions, and institutions electing strategic plans), and
reduces data collection and reporting requirements
for covered institutions. The final rule also reflects
comments received on the 1994 proposal, takes
into account the agencies' further internal considerations, and makes other modifications and
clarifications.
ISSUANCE OF INTERPRETATION
OF REGULATION H
The Federal Reserve Board on April 6, 1995,
issued an interpretation of its Regulation H (Membership of State Banking Institutions in the Federal
Reserve System) relating to the establishment of
loan production offices and "back office" facilities
of state member banks.
The interpretation provides that a "back office"
facility established by a state member bank is not
considered a branch of the bank. Also, the interpretation states that loans originated by a loan production office of a bank may be approved at a back
office location—and not considered a branch—if
the proceeds of the loan are received by the customer at a location other than a loan production
office or a back office facility.
This interpretation provides parity between state
member banks and national banks in this respect.
ADOPTION OF REGULATORY
IN RELATION TO ANTI-TYING
IN REGULATION Y
"SAFE HARBOR"
RESTRICTIONS
The Federal Reserve Board announced on April 20,
1995, the adoption of a regulatory "safe harbor"
from the anti-tying restrictions of section 106 of
the Bank Holding Company Act Amendments of
1970 and the Board's Regulation Y (Bank Holding
Companies and Change in Bank Control). The
regulation became effective May 26, 1995.
596
Federal Reserve Bulletin • June 1995
The safe harbor permits any bank or nonbank
subsidiary of a bank holding company to offer a
"combined-balance discount"—that is, a discount
based on a customer maintaining a combined minimum balance in products specified by the company
offering the discount.
PROPOSED
ACTIONS
• One hundred twenty-three stocks have been
included for the first time, 102 under National
Market System (NMS) designation
• Forty-two stocks previously on the list have
been removed for substantially failing to meet the
requirements for continued listing
• Seventy-six stocks have been removed for
reasons such as listing on a national securities
exchange or involvement in an acquisition.
The Federal Reserve Board on April 14, 1995,
requested comment on a proposed amendment to
Regulation O (Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks)
to conform the definition of unimpaired capital and
unimpaired surplus in the regulation's definition of
lending limit to the definition of capital and surplus
recently adopted by the Office of the Comptroller
of the Currency in calculating the limit on loans by
a national bank to a single borrower. Comment is
requested by May 22, 1995.
The Board also issued for public comment on
April 21, 1995, a proposal to permit, but not
require, banks and other creditors to request information on the race, color, sex, religion, and
national origin of applicants for credit. The proposal would amend the Board's Regulation B
(Equal Credit Opportunity). Comments should be
received by the Board by June 27.
The OTC list is composed of OTC stocks that
have been determined by the Board to be subject to
margin requirements in Regulations G (Securities
Credit by Persons other than Banks, Brokers, or
Dealers), T, and U (Credit by Banks for Purchasing
or Carrying Margin Stocks). It includes OTC stocks
qualifying under Board criteria and also includes
all OTC stocks designated as NMS securities.
Additional NMS securities may be added in the
interim between quarterly Board publications; these
securities are immediately marginable upon designation as NMS securities.
The foreign list specifies those foreign equity
securities that are eligible for margin treatment at
broker-dealers. There are fifteen additions to and
one deletion from the foreign list; it now contains
701 foreign equity securities.
PUBLICATION OF THE REVISED LIST OF OTC
STOCKS SUBJECT TO MARGIN REGULATIONS
AND OF THE REVISED FOREIGN LIST
The Federal Reserve Board issued on April 17,
1995, a report on its processing of applications
during 1994. In 1994 the System acted on 3,574
applications and notices filed by bank holding companies and state-chartered member banks. The total
number of applications for 1994 increased 28 percent compared with the number for 1993, with
notices to establish branches accounting for almost
two-thirds of the increase.
A breakdown of applications processed showed
the following percentages:
The Federal Reserve Board on April 24, 1995,
published a revised list of over-the-counter (OTC)
stocks that are subject to its margin regulations
(OTC list). Also published was a revised list of
foreign equity securities (foreign list) that meet the
margin criteria in Regulation T (Credit by Brokers
and Dealers). These lists are published for the
information of lenders and the general public.
The lists became effective May 8, 1995, and
supersede the previous lists that were effective
February 13, 1995. The next revision of the lists is
scheduled to be effective August 1995.
The changes that were made to the revised OTC
list, which now contains 4,081 OTC stocks, are as
follows:
ISSUANCE OF REPORT ON THE PROCESSING
OF APPLICATIONS DURING 1994
• To expand banking operations (other than
branching), almost 15 percent
• For nonbanking expansion, almost 22 percent
• Bank branch notices, about 36 percent
• Bank holding company formations and change
of control notices for state member banks and bank
holding companies, 13 percent
Announcements
• International activities of U.S. banking organizations, about 3 percent
• Various other applications, such as those from
banks to become members of the Federal Reserve
System or to invest in bank premises or bank
holding companies seeking relief from commitments or to redeem stock, 12 percent.
The Federal Reserve maintains target dates and
procedures for the processing of applications filed
under the Bank Holding Company Act, the Bank
Merger Act, and the Change in Bank Control Act.
The time allowed for a decision is sixty days after
acceptance of an application. In 1994, action was
taken on 94 percent of all applications within the
established time frame. Delays in completing background checks and extra time required to investigate questions raised about compliance and performance with regard to relevant laws and regulations
accounted for a majority of the applications that
were not processed within the target time frame.
On average, the 3,574 applications and notices
were processed in 33 calendar days from the date
of acceptance and 58 days from the date of filing,
an improvement over the results for 1993: 41 days
and 66 days respectively. The average total processing time for international applications improved from 186 days in 1993 to 149 days in 1994,
and the average total processing time for domestic
applications improved from 63 days in 1993 to
55 days in 1994.
PUBLICATION OF NEW REPORT:
DESCRIPTIVE STATISTICS FROM THE 1987
NATIONAL SURVEY OF SMALL BUSINESS
FINANCES
A new Federal Reserve Board publication provides
general descriptive statistics from the 1987
597
National Survey of Small Business Finances. The
survey, based on a nationally representative sample
of about 3,200 small businesses, covers the firms'
use of financial services and institutions, plus their
assets and liabilities, ownership, and other financial
and demographic characteristics.
A unique feature of the survey is that it identifies
specific financial services the firms obtained from
each of the financial institutions they used; these
data permit investigation of "clustering," or bundling, of financial services. Such investigations
using the 1987 survey have been published in the
Federal Reserve Bulletin (October 1990, pp. 80117) and in the Board's Staff Studies 160 (September 1990), which also contain additional information on methods for the survey. A preliminary
examination of some data from the 1993 survey is
scheduled for the July 1995 Bulletin. The 200-page
publication can be purchased, for $5, from Publications Services, Mail Stop 127, Board of Governors
of the Federal Reserve System, Washington, DC
20551.
ANNUAL REPORT: PUBLICATION
The 81st Annual Report, 1994, of the Board of
Governors of the Federal Reserve System, covering operations for the calendar year 1994, is available for distribution. Copies may be obtained on
request to Publications Services, Mail Stop 127,
Board of Governors of the Federal Reserve System, Washington, DC 20551. A separately printed
companion document, entitled Annual Report:
Budget Review, 1994-95, describes the budgeted
expenses of the Federal Reserve System for 1995
and compares them with expenses for 1993 and
1994; it is also available from Publications
Services.
•
598
Legal Developments
FINAL RULE—AMENDMENT
TO REGULATION Y
The Board of Governors is amending 12 C.F.R. Part 225,
its Regulation Y (Bank Holding Companies and Change
in Bank Control). The Board is adopting a regulatory
"safe harbor" from the anti-tying restrictions of section
106 of the Bank Holding Company Act Amendments of
1970 and the Board's Regulation Y. The safe harbor
permits any bank or nonbank subsidiary of a bank holding company to offer a "combined-balance discount"—
that is, a discount based on a customer maintaining a
combined minimum balance in products specified by the
company offering the discount.
Effective May 26, 1995, 12 C.F.R. Part 225 is
amended as follows:
Part 225—Bank Holding Companies and Change
in Bank Control (Regulation Y)
1. The authority citation for 12 C.F.R. Part 225 continues
to read as follows:
Authority: 12U.S.C. 1817(j)(13), 1818, 1831i, 1831p-l,
1843(c)(8), 1844(b), 1972(1), 3106, 3108, 3310, 33313351, 3907, and 3909.
2. In section 225.7, a new paragraph (b)(4) is added to
read as follows:
Section 225.7—Tying restrictions.
(b) * * *
(4) Safe harbor for combined-balance discounts. A
bank holding company or any bank or nonbank subsidiary thereof may vary the consideration for any
product or package of products based on a customer's
maintaining a combined minimum balance in certain
products specified by the company varying the consideration (eligible products), if:
(i) That company (if it is a bank) or a bank affiliate
of that company (if it is not a bank) offers deposits,
and all such deposits are eligible products; and
(ii) Balances in deposits count at least as much as
non-deposit products toward the minimum balance.
ORDERS ISSUED UNDER BANK HOLDING
ACT
COMPANY
Orders Issued Under Section 3 of the Bank
Holding Company Act
Corporacion Bancaria de Espana
Madrid, Spain
Order Approving the Formation of a Bank Holding
Company
Corporacion Bancaria de Espana, Madrid, Spain
("CBE"), has applied under section 3(a)(1) of the Bank
Holding Company Act ("BHC Act") (12U.S.C.
§ 1842(a)(1)) to become a bank holding company within
the meaning of the BHC Act by retaining 73.2 percent of
the voting shares of Banco Exterior de Espana, Madrid,
Spain ("BEX"), a foreign bank registered as a bank
holding company through its ownership of all the voting
shares of Extebank, Stony Brook, New York.
Notice of the application, affording interested persons
an opportunity to submit comments, has been published
(57 Federal Register 46,971 (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.
CBE, with approximately $88.6 billion in total consolidated assets,1 is the third largest commercial banking
organization in Spain. CBE was created by the Spanish
government as a "governmental company" with bank
status to serve as a holding company for BEX and
several other financial institutions controlled by the government. The Spanish government currently owns
50.9 percent of the voting shares of CBE. Extebank is
the 38th largest commercial banking organization in
New York, controlling deposits of approximately $409.8
million, representing less than one percent of all deposits
in commercial banks in the state.2 BEX, which also
1. Asset data are as of December 31, 1994.
2. Deposit data are as of December 31, 1994.
Legal Developments
operates an agency in Miami and a representative office
in New York, is the only subsidiary of CBE that engages
in commercial banking activities in the United States.
Under section 3 of the BHC Act, as amended by the
Foreign Bank Supervision Enhancement Act of 1991,3
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."4
The Board has previously determined, in applications
under the International Banking Act (12 U.S.C. § 3101
et seq.) ("IBA"), that other Spanish credit institutions
are subject to comprehensive consolidated supervision
by their home country supervisor, the Bank of Spain.5
CBE and BEX have provided information demonstrating
that they are subject to the same regulatory scheme
applicable to these other institutions. In addition, the
Bank of Spain has stated that, in performing its supervisory functions, it makes no distinction between private
and government-owned banks. Based on all the facts of
record, including the information described above, the
Board has concluded that CBE and BEX are subject to
comprehensive supervision and regulation on a consolidated basis by their home country supervisor.
In addition, CBE and BEX have committed that they
will make available to the Board such information on the
operations of CBE and BEX and any of their affiliates
that the Board deems necessary to determine and enforce
compliance with the BHC Act, the IBA, and other applicable federal law. To the extent that the provisions of
such information to the Board may be prohibited or
impeded by law, CBE and BEX have committed to
cooperate with the Board to obtain any waivers or exemptions that may be necessary in order to enable CBE
and BEX to make any such information available to the
Board. In light of these commitments and other facts of
record,6 the Board has concluded that CBE and BEX
have provided adequate assurances of access to any
appropriate information the Board may request.
3. Pub. L. No. 102-242, § 201 et seq., 105 Stat. 2286 (1991).
4. 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)(5). 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)(l)(ii).
5. See Banco de Sabadell, S.A., 79 Federal Reserve Bulletin 366
(1993); Banco Santander, S.A., 79 Federal Reserve Bulletin 622 (1993).
6. The Board notes that it previously has reviewed relevant provisions
of Spanish confidentiality, secrecy, and other laws. See Banco de
Sabadell, S.A., 79 Federal Reserve Bulletin 366 (1993).
599
The financial and managerial resources and future
prospects of CBE, BEX, and Extebank are consistentwith approval. Considerations relating to the effects
of this proposal on competition and the convenience and
needs of the communities to be served are also consistent with approval.
Based on the foregoing and other facts of record, and
subject to the commitments made by CBE and BEX in
this case, the Board has determined that the application
should be, and hereby is, approved. This approval is
specifically conditioned on compliance by CBE and
BEX with all the commitments made in connection with
this application and with the conditions contained in this
order. For purposes of this action, all of these commitments and conditions are considered conditions imposed
in writing and, as such, may be enforced in proceedings
under applicable law.
By order of the Board of Governors, effective
April 5, 1995.
Voting for this action: Chairman Greenspan, and Governors
LaWare, Lindsey, Phillips, and Yellen. Absent and not voting:
Vice Chairman Blinder and Governor Kelley.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Huntington Bancshares Incorporated
Columbus, Ohio
Huntington Bancshares Florida, Inc.
Columbus, Ohio
Order Approving Acquisition of a Bank Holding
Company
Huntington Bancshares Incorporated ("Huntington")
and its wholly owned subsidiary, Huntington Bancshares
Florida, Inc. ("Huntington Florida"), Columbus, Ohio,
bank holding companies within the meaning of the Bank
Holding Company Act ("BHC Act"), have applied under section 3 of the BHC Act (12 U.S.C. § 1842) to
merge with Security National Corporation ("Security")
and thereby indirectly acquire its wholly owned subsidiary, Security National Bank ("Security Bank"), Maitland, Florida.1
Notice of these applications, affording interested persons an opportunity to submit comments, has been pub1. Upon the acquisition of Security and receipt of approval by the
Office of the Comptroller of the Currency ("OCC"), Huntington's
existing subsidiary Huntington Federal Savings Bank, Sebring, Florida,
would be merged with and into Security Bank. Huntington also has
requested Board approval under section 3 of the BHC Act to acquire an
option to purchase up to 24.9 percent of the voting shares of Security,
which would become moot upon consummation of Huntington's application to merge with Security.
600
Federal Reserve Bulletin • June 1995
lished (60 Federal Register 2751 (1995)). The time for
filing comments has expired, and the Board has considered the applications and all comments received in light
of the factors set forth in section 3(c) of the BHC Act.
Huntington, with total consolidated assets of $17 billion, controls ten depository institutions in eight states.2
Huntington, which controls three depository institutions
in Florida, is the 53d largest depository organization in
the state, controlling $225.2 million in deposits, representing less than 1 percent of the total deposits in depository institutions in the state. Security is the 76th largest
depository organization in Florida, controlling
$166.3 million in deposits, also representing less than
1 percent of the total deposits in depository institutions
in the state. Upon consummation of this proposal, Huntington would become the 41st largest depository organization in Florida, controlling deposits of $391.4 million,
representing less than 1 percent of the total deposits in
depository institutions in the state.
Huntington and Security do not compete directly in
any banking market. Therefore, consummation of this
proposal would not have a significantly adverse effect on
competition or the concentration of banking resources in
any relevant banking market.
Douglas Amendment Analysis
Section 3(d) of the BHC Act, the Douglas Amendment,
prohibits the Board from approving an application by a
bank holding company to acquire control of any bank
located outside the bank holding company's home state
unless 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."3
For purposes of the Douglas Amendment, Huntington's
home state is Ohio, and the home state of Security and
Security Bank is Florida.4
Ohio and Florida banking statutes permit out-of-state
bank holding companies to acquire banks in their respective states, provided that the home state of the acquiring
bank holding company permits the acquisition of banks
in that state on a reciprocal basis.5 The Florida State
Comptroller concluded that Huntington's proposal is
authorized under Florida law and approved the transaction. In light of the foregoing and based on an analysis of
the banking statutes involved, the Board has determined
2. Asset and state deposit data are as of June 30, 1994.
3. 12 U.S.C. § 1842(d). A bank holding company's home state is that
state in which the operations of the bank holding company's banking
subsidiaries were principally conducted on July 1, 1966, or the date on
which the company became a bank holding company, whichever is
later.
4. Upon the acquisition of Security, Huntington Florida's home state
would be Florida.
5. FLA. STAT. § 658.295(3) (eff. May 1, 1995); OHIO REV. CODE
ANN. § 1101.05 (1985).
that its approval of this proposal is not prohibited by the
Douglas Amendment.
Convenience and Needs Considerations
In considering an application to acquire a depository
institution under the BHC Act, the Board must consider
the convenience and needs of the communities to be
served, and take into account the records of the relevant
depository institutions under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). The
Board notes that, with one exception,6 all of Huntington's subsidiary banks and savings associations that have
been examined for CRA performance received an "outstanding" or "satisfactory" rating from their primary
regulator in their most recent examinations for CRA
performance.7 Based on these and all other facts of
record, the Board concludes that considerations relating
to the record of performance under the CRA are consistent with approval of these applications.
Other Considerations
The Board also concludes that the financial and managerial resources and future prospects of Huntington, Security, and their respective subsidiary banks, and the other
supervisory factors that the Board must consider under
section 3 of the BHC Act, are consistent with approval
of this proposal.
Based on the foregoing and all other facts of record,
the Board has determined that these applications should
be, and hereby are, approved. The Board's approval is
expressly conditioned on Huntington's compliance with
all the commitments made in connection with these
applications. The commitments and conditions relied on
6. First Trust Savings Bank, F.S.B., Jacksonville, Florida ("First
Trust"), received a "needs to improve" rating in its October 1994 CRA
examination by the Office of Thrift Supervision ("OTS"). First Trust,
with assets totalling $25 million, comprises less than 1 percent of
Huntington's total assets and is one of two thrift subsidiaries acquired
by Huntington in conjunction with its May 1993 acquisition of Charter
Oak Financial Corporation, Cincinnati, Ohio. Since this acquisition,
Huntington has sought to divest First Trust and on March 31, 1995, the
OTS approved a sale of First Trust. The Board notes that Huntington
has taken numerous steps to improve the CRA performance record of
First Trust during the brief period that it has controlled First Trust. In
particular, Huntington analyzed First Trust's HMDA data and performed a geoanalysis of its loans for CRA purposes and expanded its
marketing efforts in publications owned by African Americans. In
addition, First Trust has provided over $400,000 to the City of Jacksonville's housing assistance programs.
7. In its most recent examination for CRA performance, Huntington's
lead bank, The Huntington National Bank, Columbus, Ohio ("Ohio
Bank"), received a "satisfactory" rating from its primary regulator, the
OCC. The examination identified certain areas of concern that Ohio
Bank agreed to address, and the Board notes that Huntington and Ohio
Bank have implemented corrective actions to address these areas of
concern. The Board will continue to monitor Huntington's progress in
correcting these areas in future applications to acquire depository facilities.
Legal Developments
by the Board in reaching this decision shall be deemed to
be conditions imposed in writing by the Board in connection with its findings and decision, and, as such, may
be enforced in proceedings under applicable law.
The acquisition of Security shall not be consummated
before the fifteenth calendar day following the effective
date of this order, or later than three months after the
effective date of this order, unless such period is extended for good cause by the Board or by the Federal
Reserve Bank of Cleveland, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
April 12, 1995.
Voting for this action: Governors LaWare, Lindsey, Phillips, and
Yellen. Absent and not voting: Chairman Greenspan, Vice Chairman Blinder, and Governor Kelley.
601
representing less than 1 percent of total deposits in
commercial banking organizations in the state.
Westamerica and Bank compete in the Sacramento
RMA banking market.3 Upon consummation of this
proposal, the market would remain moderately concentrated, as measured by the Herfindahl-Hirschman Index
("HHI"), and this proposal would not exceed the Department of Justice merger guidelines.4 In addition, numerous competitors would remain in the market. After
considering the competition offered by the commercial
banking institutions that would remain in the market, the
relatively small increase in concentration as measured by
the HHI, and all other facts of record, the Board concludes that consummation of this proposal is not likely
to result in significantly adverse effects on competition
or the concentration of banking resources in the Sacramento RMA banking market or any other relevant banking market.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Westamerica Bancorporation
San Rafael, California
Order Approving Acquisition of a Bank
Westamerica Bancorporation, San Rafael, California
("Westamerica"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied under section 3 of the BHC Act
(12 U.S.C. § 1842) to acquire all the voting shares of
CapitolBank Sacramento, Sacramento, California
("Bank").1
Notice of the application, affording interested persons
an opportunity to submit comments, has been published
(60 Federal Register 4628 (1995)). The time for filing
comments has expired, and the Board has considered the
application and all comments received in light of the
factors set forth in section 3(c) of the BHC Act.
Westamerica is the 11th largest commercial banking
organization in California, controlling deposits of approximately $1.7 billion, representing less than 1 percent
of total deposits in commercial banks in the state.2 Bank
is the 123d largest commercial banking organization in
California, controlling deposits of approximately
$127.9 million, representing less than 1 percent of total
deposits in commercial banks in the state. Upon consummation of this proposal, Westamerica would remain the
11th largest commercial banking organization in California, controlling approximately $1.8 billion in deposits,
1. Westamerica also has applied to obtain and exercise an option to
acquire 9.9 percent of Bank's common stock if a competing offer is
made for Bank. The option would terminate upon consummation of this
proposal.
2. State banking data are as of December 31,1994.
Convenience and Needs Considerations
In acting on an application to acquire a depository institution, the Board must consider the convenience and
needs of the communities to be served and take into
account the records of the relevant depository institutions under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires
the federal financial supervisory agencies to encourage
financial institutions to help meet the credit needs of the
local communities in which they operate, consistent with
the safe and sound operation of such institutions. To
accomplish this end, the CRA requires the appropriate
federal supervisory authority to "assess the institution's
record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of
3. All market data are as of June 30, 1993. Market share data are
based on calculations in which the deposits of thrift institutions are
included at 50 percent. The Board previously has indicated that thrift
institutions have become, or have the potential to become, significant
competitors of commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin 788 (1990); National City Corporation, 70 Federal
Reserve Bulletin 743 (1984).
4. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the postmerger HHI is between 1000 and 1800 is considered moderately 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 post-merger
HHI is at least 1800 and the merger increases the HHI by more than 200
points. The Justice Department has stated that the higher than normal
HHI thresholds for screening bank mergers for anticompetitive effects
implicitly recognize the competitive effect of limited-purpose lenders
and other non-depository financial entities. The HHI for the Sacramento
RMA banking market would increase from 1371 to 1372 as a result of
this transaction.
602
Federal Reserve Bulletin • June 1995
such institutions," and to take that record into account in
its evaluation of these applications.5
Comments on the application were submitted by an
individual ("Protestant") criticizing the record of Bank
under the CRA and alleging that Bank has not fully
complied with CRA because Bank's reports filed pursuant to the Home Mortgage Disclosure Act ("HMDA")
disclosed that Bank had not made any residential mortgage loans to minorities or women. The Board has
carefully reviewed the entire CRA performance record
of Westamerica's subsidiary banks and Bank, all comments received on this application, Westamerica's response to these comments, and all other relevant facts of
record, in light of the CRA, the Board's regulations, and
the Statement of the Federal Financial Supervisory
Agencies Regarding the Community Reinvestment Act
("Agency CRA Statement").6
The Agency CRA Statement provides that a CRA examination is an important and often controlling factor in the
consideration of an institution's CRA record and that
reports of these examinations will be given great weight
in the applications process.7 The Board notes that Westamerica's lead bank, Westamerica Bank, San Rafael,
California ("Westam Bank"), received a "satisfactory"
rating in its most recent examination for CRA performance from the Federal Reserve Bank of San Francisco
("Federal Reserve Bank") in October 1994, and that
Bank also received a "satisfactory" rating at its most
recent examination for CRA performance from the Federal Deposit Insurance Corporation ("FDIC"). Westamerica's other subsidiary banks also received "satisfactory" ratings in their most recent examination for CRA
performance from the FDIC.
neighborhoods and small businesses. These programs
include extensions of credit for rehabilitation of commercial buildings and the construction of low-income housing units, as well as loans to charitable organizations to
help them meet their operating expenses.
After consummation of this proposal, Westamerica
plans to merge Bank into Westam Bank and to expand
Bank's CRA efforts through participation in Westam
Bank's Community Access Loan Program ("CAL Program"). The CAL Program includes home equity loans,
automobile loans and home improvement loans with
lower-than-usual monthly payment terms and flexible
qualifications. These products are designed to meet the
credit needs of consumers who do not qualify for standard loans because of their income level. Westam Bank's
CAL-PAL program provides real estate mortgages with
flexible eligibility standards and lower down payment
requirements. As of October 1994, Westam Bank had
extended approximately $2.2 million CAL-PAL loans.
Westam Bank also has participated in a "silent second"
program with local governments, which provides subsidized down payments for low-income borrowers. As of
October 1994, Westam Bank had participated in six
"silent second" transactions totalling more than
$823,000. Westam Bank also has instituted the "CAL
Business" loan program, which offers business loans to
women and minorities in cooperation with local agencies
that provide technical support to start-up businesses.
Under the CAL Business program, a borrower can borrow as little as $500 without payment of loan origination
fees. As of October 1994, 31 loans totalling $395,000
had been made under the CAL Business program. Westam Bank currently is a participant in several Small
Business Administration loan programs. As of June
1994, Westam Bank had 81 SBA guaranteed loans outstanding totalling $16.6 million.8
B. Lending Activities
C. Conclusion
The record indicates that Bank's primary focus is on
serving the credit needs of small- and medium-sized
businesses, and that Bank makes residential mortgage
loans only as an accommodation to its business customers. Data provided by Bank demonstrate that Bank has
made loans to women, minorities, and borrowers in lowand moderate-income areas. For example, Bank has originated approximately 65 loans, totalling $18 million to
borrowers or projects located in low- to moderateincome areas, representing 20 percent of Bank's outstanding loan portfolio. In addition, Bank has participated in programs that benefit low- and moderate-income
The Board has carefully considered all the facts of
record, including Protestant's comments, in reviewing
the CRA records of performance of Bank and of Westamerica's subsidiary banks. Based on a review of the
entire record, including relevant reports of examination,
the Board concludes that convenience and needs considerations, including the banks' CRA records, are consistent with approval of this application.
A. Record of CRA Performance
5. 12 U.S.C. § 2903.
6. 54 Federal Register 13,742 (1989).
7. Id. at 13,745.
8. The Federal Reserve Bank, in its most recent CRA examination of
Westam Bank, found no evidence of prohibited discriminatory credit
practices, and the bank has taken additional steps to increase lending to
low- and moderate-income areas, such as improved marketing and a
review of its lending programs.
Legal Developments
Other Considerations
The financial and managerial resources and future prospects of Westamerica, its subsidiary banks, and Bank,
and the other supervisory factors that the Board must
consider under section 3 of the BHC Act, are consistent
with approval of this proposal.
Based on the foregoing and all the facts of record, the
Board has determined that the application should be, and
hereby is, approved. The Board's approval is expressly
conditioned on Westamerica's compliance with all the
commitments made in connection with this application.
The commitments and conditions relied on by the Board
in reaching this decision shall be deemed to be conditions imposed in writing by the Board in connection with
its findings and decision, and, as such, may be enforced
in proceedings under applicable law.
The acquisition shall not be consummated before the
fifteenth calendar day following the effective date of this
order, or later than three months after the effective date
of this order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
San Francisco, acting pursuant to delegated authority.
By order of the Board of Governors, effective
April 17, 1995.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, LaWare, Lindsey, Phillips, and
Yellen.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Orders Issued Under Section 4 of the Bank
Holding Company Act
Fifth Third Bancorp
Cincinnati, Ohio
Fifth Third Bank of Northeastern Ohio
Cleveland, Ohio
Order Approving the Acquisition and Merger of a
Savings Association and the Establishment of Branches
Fifth Third Bancorp, Cincinnati, Ohio ("Bancorp"), a
bank holding company within the meaning of the Bank
Holding Company Act ("BHC Act"), has filed notice
under
section
4(c)(8)
of
the
BHC
Act
(12 U.S.C. § 1843(c)(8)) and section 225.23 of the
Board's Regulation Y (12 C.F.R. 225.23) of its intention
to acquire Falls Financial Inc., Cuyahoga Falls, Ohio
("Falls Financial"), and thereby indirectly acquire its
wholly owned subsidiary, Falls Savings Bank, F.S.B.,
Cuyahoga Falls, Ohio ("Savings Bank"). The Fifth
603
Third Bank of Northeastern Ohio, Cleveland, Ohio
("Fifth Third Bank"), a wholly owned subsidiary of
Bancorp, has also applied under section 18(c) of the
Federal Deposit Insurance Act (12 U.S.C. § 1828(c))
("Bank Merger Act") and section 5(d)(3) of the Federal
Deposit Insurance Act (12 U.S.C. § 1815(d)(3)), as
amended by the Federal Deposit Insurance Corporation
Improvement Act of 1991 (Pub. L. No. 102-242, § 501,
105 Stat. 2236, 2388-2392 (1991)), to acquire certain
assets and assume certain liabilities of Savings Bank;1
and incident thereto, to establish branch offices pursuant to section 9 of the Federal Reserve Act
(12 U.S.C. § 321).2
Notice of this proposal, affording interested persons an
opportunity to submit comments, has been published
(60 Federal Register 10,084 (1995)). As required by the
Bank Merger Act, reports on the competitive effects of
the merger were requested from the United States Attorney General, the Office of Thrift Supervision, and the
Federal Deposit Insurance Corporation. The time for
filing comments has expired, and the Board has considered the applications and all of the facts of record in light
of the factors set forth in the BHC Act, the Bank Merger
Act, and the Federal Reserve Act.
The Board has determined that the operation of a
savings association by a bank holding company is
closely related to banking for purposes of section 4(c)(8)
of the BHC Act. 12 C.F.R. 225.25(b)(9). The Board
requires savings associations acquired by bank holding
companies to conform their direct and indirect activities
to those permissible for bank holding companies under
section 4 of the BHC Act and Regulation Y. Bancorp has
committed to conform all activities of Savings Bank to
the requirements of section 4 of the BHC Act and
Regulation Y.3
In considering a notice under section 4(c)(8) of the
BHC Act, the Board is required to determine that the
applicant's ownership and operation of the acquired
1. Because Fifth Third Bank, a state member bank, is a member of the
Bank Insurance Fund and is acquiring deposits of Savings Bank, a
member of the Savings Association Insurance Fund, prior Board approval is required for this proposal under section 5(d)(3) of the Federal
Deposit Insurance Act. Section 5(d)(3) requires the Board to follow the
procedures and consider the factors set forth in the Bank Merger Act.
2. The locations of the branches that Fifth Third Bank proposes to
establish are listed in the Appendix.
3. Savings Bank engages in real estate activities that are not permissible for bank holding companies under the BHC Act. Bancorp has
committed that all impermissible real estate activities will be divested
or terminated within two years of consummation of the proposal, that
no new impermissible projects or investments will be undertaken during
this period, and that capital adequacy guidelines will be met, excluding
specified real estate investments. Bancorp also has committed that any
impermissible securities and insurance activities conducted by Savings
Bank or its subsidiaries will cease on or before consummation of this
proposal. Savings Bank may continue to service any impermissible
insurance policies for two years after the consummation of this proposal, but may not renew policies.
604
Federal Reserve Bulletin • June 1995
company "can reasonably be expected to produce benefits to the public, such as greater convenience, increased
competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices."4
Bancorp, with consolidated assets of $15 billion, controls 12 depository institutions in Ohio, Kentucky, Indiana, and Florida.5 Bancorp is the fourth largest depository institution in Ohio, controlling total deposits of
$11.5 billion, representing approximately 6.5 percent of
total deposits in depository institutions in the state.6 Falls
Financial is the 27th largest depository institution in
Ohio, controlling deposits of $555.6 million, representing less than 1 percent of total deposits in depository
institutions in the state. Upon consummation of this
proposal, Bancorp would remain the fourth largest depository institution in Ohio, controlling deposits of
$12 billion, representing approximately 6.8 percent of
total deposits in depository institutions in the state.
Bancorp and Falls Financial do not compete directly
in any banking market. Accordingly, consummation of
this proposal would not have a significantly adverse
effect on competition or the concentration of banking
resources in any relevant banking market.
Convenience and Needs Considerations
In acting on the notice and applications under the relevant banking statutes, the Board must consider the convenience and needs of the communities to be served and
take into account the records of the relevant depository
institutions under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). The Board notes
that all of Bancorp's subsidiary banks and savings banks
that have been examined for CRA performance received
an "outstanding" or "satisfactory" rating from their
primary supervisor in their most recent CRA performance examinations. In addition, Savings Bank received
a "satisfactory" rating in its most recent CRA performance examination by the Office of Thrift Supervision
as of June 1994. Based on these and all other facts of
record, the Board concludes that considerations relating
to the record of CRA performance are consistent with
approval of this proposal.
Other Considerations
The Board also concludes that the financial and managerial resources and future prospects of Bancorp, Falls
4. 12 U.S.C. § 1843(c)(8).
5. Asset data are as of December 31, 1994.
6. Deposit data are as of June 30, 1994. In this context, depository
institutions include commercial banks, savings banks, and savings associations.
Financial, and their respective subsidiaries, are consistent with approval, as are the other supervisory factors
the Board must consider under the Bank Merger Act and
the Federal Reserve Act. In addition, the record does not
indicate that consummation of this proposal is likely to
result in any significantly adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking practices,
that are not likely to be outweighed by the public benefits of this proposal. Accordingly, the Board has determined that the balance of public interest factors it must
consider under section 4(c)(8) of the BHC Act is favorable and consistent with approval of this notice.
Moreover, the Board also has considered the specific
factors it must review under section 5(d)(3) of the Federal Deposit Insurance Act, and the record in this case
shows that:
(1) The transaction will not result in the transfer of
any federally insured depository institution's federal
deposit insurance from one federal deposit insurance
fund to the other;
(2) Bancorp and Fifth Third Bank currently meet, and
upon consummation of the proposed transaction will
continue to meet, all applicable capital standards; and
(3) The proposed transaction would comply with the
interstate banking provision of the Bank Holding
Company Act (12 U.S.C. § 1842(d)) if Savings Bank
were a state bank that Bancorp was applying to acquire directly. See 12 U.S.C. § 1815(d)(3).
Based on the foregoing and all the facts of record, the
Board has determined that the applications and notice
should be, and hereby are, approved. The Board's approval is specifically conditioned on compliance by Fifth
Third Bank and Bancorp with the commitments made in
connection with the applications and notice. The Board's
determination also is subject to all the conditions set
forth in Regulation Y, including those in sections 225.7
and 225.23(b) of Regulation Y, and to the Board's authority to require such modification or termination of the
activities of a bank holding company or any of its
subsidiaries as the Board finds necessary to ensure compliance with, and to prevent evasion of, the provisions of
the BHC Act and the Board's regulations and orders
issued thereunder. Approval of the proposal is further
subject to Bancorp's obtaining any approvals required
under applicable federal or state laws. 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 under applicable law.
The acquisition of Falls Financial and the merger of
Fifth Third Bank and Savings Bank may not be consummated before the fifteenth calendar day after the effective
date of this order, or later than three months after the
Legal Developments
effective date of this order, unless such period is extended 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 19, 1995.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, LaWare, Lindsey, Phillips, and
Yellen.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Appendix
Branch offices of Falls Savings Bank, F.S.B., to be
established by Fifth Third Bank of Northeastern Ohio:
1. 2335 Second Street, Cuyahoga Falls, Ohio
2. 4301 Kent Road, Stow, Ohio
3. 40 North Avenue, Tallmadge, Ohio
4. 1597 S. Water Street, Kent, Ohio
5. 3150 S. Arlington Road, Akron, Ohio
6. 122 W. Streetsboro Street, Hudson, Ohio
7. 911 Graham Road, Unit 96, Cuyahoga Falls, Ohio
8. 576 Canton Road, Akron, Ohio
9. 1900 West Market Street, Akron, Ohio
10. 230 Howe Avenue, Cuyahoga, Ohio
11. 360 E. Waterloo Road, Akron, Ohio
12. 4602 Fishcreed Road, Stow, Ohio
13. 3750-Q West Market Street, Akron, Ohio
Mellon Bank Corporation
Pittsburgh, Pennsylvania
Order Approving a Notice to Engage in Underwriting
and Dealing in Certain Bank-Ineligible Securities on a
Limited Basis, and Other Nonbanking Activities
Mellon Bank Corporation, Pittsburgh, Pennsylvania
("Applicant"), has provided notice under section 4(c)(8)
of the Bank Holding Company Act (12 U.S.C.
§ 1843(c)(8)) ("BHC Act") and section 225.23 of the
Board's Regulation Y (12 C.F.R. 225.23) of its intention
to establish a section 20 subsidiary, Mellon Financial
Markets, Inc., Pittsburgh, Pennsylvania ("Company"),
which would engage in the following activities:1
(1) Underwriting and dealing, to a limited extent, in
certain municipal revenue bonds (including certain
unrated municipal revenue bonds), 1-4 family
1. Mellon would implement its proposal through a corporate reorganization. In order to effect this reorganization, Mellon Bank, N.A., Pittsburgh, Pennsylvania, would transfer 100 percent of the outstanding
stock of Company to Applicant through a dividend. Company currently
engages in securities brokerage activities.
605
mortgage-related securities, consumer receivablerelated securities, and commercial paper (hereinafter
"bank-ineligible securities");
(2) Acting as agent in the private placement of all
types of securities, including providing related advisory services, and buying and selling securities on the
order of investors as a "riskless principal";
(3) Underwriting and dealing in bank-eligible instruments pursuant to 12 C.F.R. 225.25(b)(16);
(4) Providing securities brokerage services pursuant to
12 C.F.R. 225.25(b)(15), including providing such services with respect to bank-ineligible securities that
Company holds as principal in connection with its
underwriting and dealing activities;
(5) Providing investment advisory services pursuant
to 12 C.F.R. 225.25(b)(4); and
(6) Providing foreign exchange advisory and transactional services pursuant to 12 C.F.R. 225.25(b)(17).
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(60 Federal Register 13,436 (1995)). The time for filing
comments has expired, and the Board has considered the
notice and all comments received in light of the public
interest factors set forth in section 4(c)(8) of the BHC
Act.
Applicant, with total consolidated assets of $39 billion, is the 24th largest commercial banking organization
in the United States.2 Applicant operates banking subsidiaries in Pennsylvania, Delaware, Maryland, New York,
and New Jersey, and engages in various nonbanking
activities through a number of subsidiaries. Company
would register with the Securities and Exchange Commission ("SEC") as a broker-dealer under the Securities
Exchange Act of 1934 (15 U.S.C. § 78a et seq.) and
become a member of the National Association of Securities Dealers, Inc. ("NASD"). Therefore, Company
would be subject to the recordkeeping, reporting, fiduciary standards, and other requirements of the Securities
Exchange Act of 1934, the SEC, and the NASD.
All the proposed activities, except underwriting and
dealing in bank-ineligible securities and conducting private placement and "riskless principal" activities, have
been determined by regulation to be closely related to
banking for purposes of section 4(c)(8) of the BHC Act.3
Applicant has committed that Company will conduct
these activities in accordance with the limitations set
forth in Regulation Y and the Board's orders relating to
these activities.4
2. Asset data are as of December 31, 1994.
3. See 12 C.F.R. 225.25(b)(4), (b)(15), (b)(16) and (b)(17).
4. The Board notes that in order to address potential conflicts of
interests arising from Company's conduct of full-service brokerage
activities together with underwriting and dealing in bank-ineligible
606
Federal Reserve Bulletin • June 1995
Underwriting and Dealing in Bank-Ineligible
Securities
Applicant proposes to underwrite and deal in municipal
revenue bonds, residential mortgage-related securities,
consumer receivable-related securities, and commercial
paper. The Board previously has determined that, subject
to the prudential framework of limitations established in
previous decisions to address potential conflicts of interest, unsound banking practices, or other adverse effects,
the proposed underwriting and dealing activities are so
closely related to banking as to be proper incidents
thereto within the meaning of section 4(c)(8) of the BHC
Act.5 The Board also has determined that the conduct of
these securities underwriting and dealing activities is
consistent with section 20 of the Glass-Steagall Act,
provided that the underwriting and dealing subsidiary
derives no more than 10 percent of its total gross revenue over any two-year period from underwriting and
dealing in securities that a bank may not underwrite or
deal in directly.6 Applicant has committed that Company
will conduct its underwriting and dealing activities with
respect to bank-ineligible securities subject to the 10 percent revenue test established by the Board in previous
orders.7 Applicant also has committed that, with one
securities, Applicant has committed that Company will inform its
customers at the commencement of the relationship that, as a general
matter, Company may be a principal or may be engaged in underwriting
with respect to, or may purchase from an affiliate, those securities for
which brokerage and advisory services are provided. In addition, at the
time any brokerage order is taken, the customer will be informed
(usually orally) whether Company is acting as agent or principal with
respect to a security. Confirmations sent to customers also will state
whether Company is acting as agent or principal. See PNC Financial
Corp., 75 Federal Reserve Bulletin 396 (1989).
5. See Citicorp, J.P. Morgan & Company Incorporated, and Bankers
Trust New York Corporation, 73 Federal Reserve Bulletin 473 (1987),
aff'd sub nom. Securities Industry Association v. Board of Governors of
the Federal Reserve System, 839 F.2d 47 (2d Cir. 1988), cert, denied,
486 U.S. 1059 (1988) ("Section 20 Order").
6. Compliance with the 10-percent revenue limitation shall be calculated in accordance with the method stated in J. P. Morgan & Co.
Incorporated, et al., 75 Federal Reserve Bulletin 192, 196-197 (1989),
as modified by the Order Approving Modifications to the Section 20
Orders, 75 Federal Reserve Bulletin 751 (1989), the Order Approving
Modifications to the Section 20 Orders, 79 Federal Reserve Bulletin
226 (1993), and the Supplement to Order Approving Modifications to
Section 20 Orders, 79 Federal Reserve Bulletin 360 (1993) (collectively, "Modification Orders"). The Board notes that Applicant has not
adopted the Board's alternative indexed-revenue test to measure compliance with the 10-percent revenue limitation on bank-ineligible securities activities, and, absent such election, Applicant will continue to
employ the Board's original 10-percent revenue standard.
7. The Board notes that Company may provide services that are
necessary incidents to approved underwriting and dealing activities,
provided that any activities conducted as a necessary incident to bankineligible securities activities must be treated as part of the bankineligible securities activities unless Company has received specific
approval under section 4(c)(8) of the BHC Act to conduct the activities
independently. Until such approval is obtained, any revenues from the
incidental activities must be counted as ineligible revenues subject to
the 10-percent revenue limitations set forth in the Section 20 Order, as
modified by the Modification Orders.
exception, Company will conduct the proposed underwriting and dealing activities using the same methods
and procedures, and subject to the same prudential limitations, as were established by the Board in its previous
orders.8
Applicant has requested that the Board permit up to
two directors of its subsidiary banks to serve on Company's board of directors, as long as those directors do not
constitute a majority of Company's board. These directors would not be officers of any affiliated bank; nor
would they have the authority to conduct the day-to-day
business of the bank or handle individual bank transactions. No officers or employees of Company would be
employed by the banks.
The Board previously has permitted interlocks between a banking organization and its affiliated section 20
company.9 In addition, the Board has requested comment on modifying the section 20 prudential framework
to permit interlocks with affiliated banks as long as a
majority of the board is not comprised of bank officers or
directors. Accordingly, the Board finds that these limited
interlocks should be permitted, since it appears that
Company would be operationally distinct from its affiliated banks. The Board expects that Applicant will ensure
that the framework established pursuant to the Section 20 Order will be maintained in all other respects.
Private Placement and "Riskless Principal"
Activities
Private placement involves the placement of new issues
of securities with a limited number of sophisticated
purchasers in a nonpublic offering. A financial intermediary in a private placement transaction acts solely as an
agent of the issuer in soliciting purchasers, and does not
purchase the securities and attempt to resell them. Securities that are privately placed are not subject to the
registration requirements of the Securities Act of 1933,
and are offered only to financially sophisticated institutions and individuals and not to the public. Applicant
will not privately place registered securities and will
only place securities with customers who qualify as
accredited investors.
"Riskless principal" is the term used in the securities
business to refer to a transaction in which a brokerdealer, after receiving an order to buy (or sell) a security
from a customer, purchases (or sells) the security for its
8. In connection with the proposal that Company underwrite and deal
in unrated municipal revenue bonds, Applicant has committed that
Company will comply with the limitations and conditions previously
relied on by the Board. See Letter Interpreting Section 20 Orders, 81
Federal Reserve Bulletin 198 (1995).
9. See e.g., Synovus Financial Corporation, 11 Federal Reserve
Bulletin 954, 955 (1991); Banc One Corporation, 76 Federal Reserve
Bulletin 756, 758 (1990); Canadian Imperial Bank of Commerce, The
Royal Bank of Canada, Barclays PLC and Barclays Bank PLC, 76
Federal Reserve Bulletin 158 (1990).
Legal Developments
own account to offset a contemporaneous sale to (or
purchase from) the customer.10 Riskless principal transactions are understood in the industry to include only
transactions in the secondary market. Thus, Applicant
proposes that Company would not act as a riskless
principal in selling securities at the order of a customer
that is the issuer of the securities to be sold, or in any
transaction where Company has a contractual agreement
to place the securities as agent of the issuer. Company
also would not act as a riskless principal in any transaction involving a security for which it makes a market.
The Board has determined by order that, subject to
prudential limitations that address the potential for conflicts of interests, unsound banking practices, or other
adverse effects, the proposed private placement and riskless principal activities are so closely related to banking
as to be a proper incident thereto within the meaning of
section 4(c)(8) of the BHC Act.11
The Board also has determined that acting as agent in
the private placement of securities, and purchasing and
selling securities on the order of investors as a riskless
principal, do not constitute underwriting and dealing in
securities for purposes of section 20 of the GlassSteagall Act, and that revenue derived from these activities is not subject to the 10-percent revenue limitation on
bank-ineligible securities underwriting and dealing.12
Applicant has committed that Company will conduct
its private placement and riskless principal activities
using the same methods and procedures, and subject to
the same prudential limitations established by the Board
in Bankers Trust and J. P. Morgan,13 including the comprehensive framework of restrictions designed to avoid
potential conflicts of interests, unsound banking prac-
10. See Securities and Exchange Commission Rule 10b-10. 17 C.F.R.
240.10b-10(a)(8)(i).
11. See J.P. Morgan & Company Incorporated, 76 Federal Reserve
Bulletin 26 (1990) ("J.P. Morgan )\ Bankers Trust New York Corporation, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust").
12. See Bankers Trust at 831-833.
13. Among the prudential limitations detailed more fully in Bankers
Trust and J.P. Morgan are that Company will maintain specific records
that will clearly identify all riskless principal transactions, and that
Company will not engage in any riskless principal transactions for any
securities carried in its inventory. When acting as a riskless principal,
Company will not hold itself out as making a market in the securities
that it buys and sells as a riskless principal. Moreover, Company will
not engage in riskless principal transactions on behalf of any foreign
affiliate that engages in securities dealing activities outside the United
States and will not act as riskless principal for registered investment
company securities. In addition, Company will not act as a riskless
principal with respect to any securities of investment companies that are
advised by Applicant or any of its affiliates. With regard to private
placement activities, Applicant has committed that Company will not
privately place registered investment company securities or securities of
investment companies that are advised by Applicant or any of its
affiliates.
607
tices, and other adverse effects imposed by the Board in
connection with underwriting and dealing in securities.14
Financial Factors, Managerial Resources, and Other
Considerations
In every notice under section 4 of the BHC Act, the
Board considers the financial condition and resources of
the applicant and its subsidiaries and the effect of the
transaction on these resources.15 Based on the facts of
this case, the Board concludes that financial considerations are consistent with approval of this notice. The
managerial resources of Applicant also are consistent
with approval.
In order to approve this notice, the Board is required
to determine that the performance of the proposed activities by Applicant can reasonably be expected to produce
public benefits that outweigh adverse effects under the
proper incident to banking standard of section (4)(c)(8)
of the BHC Act. Under the framework established in this
order and prior decisions, consummation of this proposal
is not likely to result in any significantly adverse effects,
such as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound
banking practices, that are not outweighed by public
benefits. The Board expects that the entry of Applicant
into the market for the proposed activities would provide
added convenience to Applicant's customers, and would
increase the level of competition among existing providers of these services. Accordingly, the Board has determined that the performance of the proposed activities by
Applicant can reasonably be expected to produce public
benefits that would outweigh possible adverse effects
under the proper incident to banking standard of section 4(c)(8) of the BHC Act.
Based on all the facts of record, and subject to the
commitments made by Applicant, as well as all the terms
and conditions set forth in this order and in the above-
14. In previous orders approving riskless principal activities, the
Board has relied on commitments by bank holding companies to refrain
from entering quotes for specific securities in the NASDAQ or any other
dealer quotation system in connection with riskless principal transactions. Bankers Trust at 832. Applicant proposes that Company, in acting
as a riskless principal, be permitted to enter bid or ask quotations, or
publish "offering wanted" or "bid wanted" notices, on trading systems
other than an exchange or the NASDAQ.
In order to ensure that Company would not hold itself out as a market
maker with respect to securities for which it acted as riskless principal,
Applicant has committed that Company will not enter price quotations
on different sides of the market for a particular security for two business
days. In other words, Company would not enter an "ask" quote for two
business days after entering a "bid" quote with respect to the same
security, and vice versa. The Board previously has determined that these
activities are permissible and do not constitute underwriting and dealing
in securities for purposes of the Glass-Steagall Act. See BankAmerica
Corporation, 79 Federal Reserve Bulletin 1163, 1165 n. 10 (1993);
Dauphin Deposit Corporation, 77 Federal Reserve Bulletin 672 (1991).
15. See 12 C.F.R. 225.24.
608
Federal Reserve Bulletin • June 1995
noted Board orders, the Board has determined that the
notice should be, and hereby is, approved. Approval of
this proposal is specifically conditioned on compliance
by Applicant and Company with the commitments made
in connection with its notice and with the conditions
referenced in this order and the other referenced orders.
The Board's determination also is subject to all of the
conditions set forth in Regulation Y, including those in
sections 225.7 and 225.23(b), and to the Board's authority to require 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. In
approving this notice, the Board has relied on all the
facts of record, and all the representations and commitments made by Applicant. For the purpose of this action,
these commitments and conditions shall be deemed conditions imposed in writing and, as such, may be enforced
in proceedings under applicable law.
This transaction shall not be consummated later than
three months after the effective date of this order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Cleveland pursuant to
delegated authority.
By order of the Board of Governors, effective
April 17, 1995.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, LaWare, Lindsey, Phillips, and
Yellen.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Mercantile Bancorporation, Inc.
St. Louis, Missouri
Mortgage"),1 and thereby indirectly acquire the subsidiary banks of Central Mortgage.2 Mercantile also has
provided notice under section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) of its intention to acquire the
mortgage banking activities of Central Mortgage and a
nonbanking subsidiary of Central Mortgage, Cenco Insurance Company, Inc., Phoenix, Arizona, and thereby
engage in making, acquiring or servicing loans or other
extensions of credit and reinsuring credit life, accident
and health insurance, pursuant to sections 225.25(b)(1)
and 225.25(b)(8) of the Board's Regulation Y.
Notice of this proposal, affording interested persons an
opportunity to submit comments, has been published
(59 Federal Register 59,618 (1994)). The time for filing
comments has expired, and the Board has considered the
proposal and all comments received in light of the factors set forth in sections 3 and 4 of the BHC Act.
Mercantile, with total consolidated assets of approximately $12.2 billion, operates banks in Missouri, Iowa,
Illinois, and Kansas.3 Mercantile is the second largest
commercial banking organization in Missouri, controlling approximately $7.2 billion in deposits, representing
approximately 12.6 percent of the total deposits in commercial banks in the state. Central Mortgage, with total
consolidated assets of $1.3 billion, is the 13th largest
commercial banking organization in Missouri, controlling $567 million in deposits, representing approximately 1 percent of the total deposits in commercial
banks in the state. Upon consummation of the proposal,
Mercantile would remain the second largest commercial
banking organization in Missouri, controlling approximately $7.7 billion in deposits, representing approximately 13.6 percent of the total deposits in commercial
banks in the state.
Competitive Considerations
Mercantile and Central Mortgage compete directly in the
Johnson County, Kansas City, and Morgan County banking markets, all in Missouri. Mercantile is the seventh
largest of nine depository institutions4 in the Johnson
Ameribanc, Inc.
St. Louis, Missouri
Order Approving the Acquisition of a Bank Holding
Company
Mercantile Bancorporation, Inc., and its wholly owned
subsidiary, Ameribanc, Inc., both of St. Louis, Missouri
(together, "Mercantile"), bank holding companies
within the meaning of the Bank Holding Company Act
("BHC Act"), have applied under section 3 of the BHC
Act (12 U.S.C. § 1842) to acquire Central Mortgage
Bancshares, Inc., Warrensburg, Missouri ("Central
1. Mercantile also has acquired an option to purchase up to
19.9 percent of the voting shares of Central Mortgage, which option
would expire upon consummation of this proposal.
2. Central Mortgage has three subsidiary banks: Citizens Bank of
Southwest Missouri, Nevada; Citizens-Jackson County Bank, Warrensburg; and Farmers Bank of Stover, Stover, all in Missouri.
3. Asset data and state deposit data are as of December 31, 1994.
4. When used in this context, depository institution includes commercial banks, savings banks and savings associations. Market share data
are based on calculations in which the deposits of thrift institutions are
included at 50 percent. The Board previously has indicated that thrift
institutions have become, or have the potential to become, major
competitors of commercial banks. See Midwest Financial Group, 75
Federal Reserve Bulletin 386 (1989); National City Corporation, 70
Federal Reserve Bulletin 743 (1984).
Legal Developments
County banking market, 5 controlling deposits of
$19.3 million, representing approximately 6.1 percent of
total deposits in depository institutions in this market
("market deposits"). 6 Central Mortgage is the largest
depository institution in the Johnson County banking
market, with deposits of $98.2 million, representing
approximately 31 percent of market deposits. Upon consummation of this proposal, Mercantile would become
the largest depository institution in the Johnson County
banking market, controlling deposits of approximately
$117.5 million, representing approximately 37.1 percent
of market deposits. The Herfindahl-Hirschman Index
("HHI") for the market would increase by 379 points to
2278.7
In order to mitigate the adverse competitive effects in
the Johnson County banking market that otherwise might
result from this proposal, Mercantile has committed to
divest Central Mortgage's Chilhowee, Missouri, branch
("Branch"). Mercantile has committed that Branch will
be divested to an organization that does not currently
operate in the Johnson County banking market.8 With
this divestiture, upon consummation of the proposed
transaction the HHI would increase by 247 points to
2146.
In addition, the number of depository institutions competing in the market would remain unchanged and several remaining competitors would have significant market shares. The record in this case also indicates that this
market, which borders the Kansas City MSA, appears to
be attractive to entry.9 There also are numerous potential
entrants into the Johnson County banking market, because Missouri permits statewide branching and acquisitions by out-of-state bank holding companies located in
5. The Johnson County banking market is approximated by Johnson
County, Missouri.
6. Market deposit data are as of June 30, 1994, unless otherwise
noted.
7. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (June 29, 1984)), a market in which the postmerger 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 anti-competitive effects) unless the post-merger HHI
is at least 1800 and the merger increases the HHI by 200 points. The
Justice Department has stated that the higher than normal HHI thresholds for screening bank mergers for anti-competitive effects implicitly
recognize the competitive effects of limited-purpose lenders and other
non-depository financial entities.
8. The Board has received comments from the Farmers Produce
Exchange stating that Chilhowee, Missouri, is located in a rural area
and that closure of Branch would inconvenience the community. Because the divestiture of Branch to an out-of-market competitor would
result in Branch's continuing to operate, the Board does not believe that
consummation of this proposal would adversely affect the Chilhowee
community.
9. The population of Johnson County, a non-MSA county, increased
by 4 percent from 1990 to 1994, compared with average increases of
2.7 percent for Missouri as a whole and 3.1 percent for MSA counties in
Missouri over the same time period.
609
states adjoining Missouri.10 Based on all the facts of
record, including Mercantile's divestiture commitments
and the number of competitors that would remain in the
market, the Board concludes that consummation of this
proposal would not result in significantly adverse effects
on competition in the Johnson County banking market.
In the Morgan County banking market,11 the increase
in concentration of market deposits resulting from consummation of this acquisition, as measured by the HHI,
indicates that the proposal could result in significantly
adverse competitive effects.12 In order to mitigate any
potential adverse competitive effects in this market, Mercantile has committed that it will divest Farmers Bank of
Stover, the only depository institution controlled by Central Mortgage that currently competes in the Morgan
County banking market. Based on all the facts of record,
including Mercantile's commitment to divest Farmers
Bank of Stover, the Board concludes that consummation
of this proposal would not result in significantly adverse
effects on competition in the Morgan County banking
market.13
In the Kansas City banking market, which is approximated by the Kansas City Ranally Metropolitan Area,
consummation of this proposal would not exceed the
thresholds set forth in the Department of Justice Merger
Guidelines.14 In addition, numerous competitors would
remain in the Kansas City banking market after consummation of this proposal.
The Board sought comments from the United States
Attorney General on the competitive effects of this proposal. The Attorney General did not object to the proposed acquisition and agreed, based on the proposed
divestitures, to shorten the post-approval waiting period.
Based on all the facts of record, including the facts
discussed above and the divestitures proposed by Mercantile,15 the Board concludes that consummation of this
10. See Mo. ANN. STAT §§ 362.107 and 362.925.
11. The Morgan County banking market is approximated by Morgan
County, Missouri.
12. Upon consummation of this proposal, the HHI in the market
would increase by 639 points to 4918.
13. Mercantile has committed to sell Farmers Bank of Stover either to
an out-of-market organization or to a current market competitor whose
acquisition of this bank would not cause the HHI to increase by more
than 200 points.
14. The HHI in the Kansas City banking market would increase by
11 points to 742. Market deposit data for the Kansas City banking
market are as of June 30, 1993.
15. As part of its commitment to divest Branch and Farmers Bank of
Stover, Mercantile has committed to execute sales agreements for each
of the proposed divestitures prior to consummation of this proposal, and
to complete these divestitures within 180 days of consummation. Mercantile also has committed that in the event it is unsuccessful in
completing these divestitures within 180 days of consummation, it will
transfer Branch and Farmers Bank of Stover to an independent trustee
that is acceptable to the Board and that will be instructed to sell Branch
and Farmers Bank of Stover promptly. In addition, Mercantile has
committed to submit to the Board, before consummation of the acquisition of Central Mortgage, an executed trust agreement acceptable to the
610
Federal Reserve Bulletin • June 1995
proposal would not have a significantly adverse effect on
competition or the concentration of banking resources in
any relevant banking market.
Convenience and Needs Considerations
In acting on an application to acquire a depository institution under the BHC Act, the Board must consider the
convenience and needs of the communities to be served,
and take into account the records of the relevant depository institutions under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires
the federal financial supervisory agencies to encourage
financial institutions to help meet the credit needs of the
local communities in which they operate, consistent with
their safe and sound operation. To accomplish this end,
the CRA requires the appropriate federal supervisory
authority to "assess the institution's record of meeting
the credit needs of its entire community, including lowand moderate-income neighborhoods, consistent with
the safe and sound operation of such institution," and to
take that record into account in its evaluation of applications.16
The Board has received comments from the Concerned Clergy Coalition ("Protestant") alleging that
Mercantile's subsidiary bank, Mercantile Bank of Kansas City, Kansas City, Missouri ("MBKC"), has failed
to meet the credit needs of its local community, especially the Eastside neighborhoods of Kansas City ("Eastside").17 In particular, Protestant maintains that data
submitted by MBKC under the Home Mortgage Disclosure Act ("HMDA") indicate disparities in the denial
rates for loan applications submitted by minorities compared with those for white applicants, particularly for
home improvement loans.18 Protestant also asserts that
MBKC engages in a low level of lending to small
businesses, minorities and low- and moderate-income
residents, and has inadequate marketing, outreach, credit
needs assessment, product development, and community
development programs. Protestant attributes some of
MBKC's CRA-related shortcomings to the failure of
MBKC's management to adequately monitor, coordinate
and implement its CRA program and to turnover of CRA
staff.19
Board stating the terms of the divestitures. The Board's action is
expressly conditioned on compliance with these commitments.
16. 12 U.S.C. § 2903.
17. Protestant defines the Eastside as the area bounded by Troost
Avenue, Elmwood Avenue, Independence Avenue, and 85th Street.
18. Protestant also claims that MBKC discourages or prescreens
potential loan applicants and has inadequate policies, procedures and
training programs to ensure that there is no discrimination in its lending
activities.
19. Protestant states that additional evidence of Mercantile's inadequate efforts to lend to minorities is provided by the records of two of
Mercantile's other subsidiary banks, Mercantile Bank of St. Louis,
In its consideration of the convenience and needs
factor, the Board has carefully reviewed the entire CRA
performance record of Mercantile, Central Mortgage,
and their subsidiaries; all comments received on this
proposal, including Mercantile's response to these comments; and all other relevant facts of record, in light of
the CRA, the Board's regulations, and the Statement of
the Federal Financial Supervisory Agencies Regarding
the Community Reinvestment Act ("Agency CRA Statement"). 20
Record of CRA
Performance
A. Evaluation of CRA Performance
The Agency CRA Statement provides that a CRA examination is an important and often controlling factor in the
consideration of an institution's CRA record and that
reports of these examinations will be given great weight
in the applications process.21 In this case, the Board
notes that all 41 of Mercantile's subsidiary banks received "outstanding" or "satisfactory" ratings in the
most recent examinations of their CRA performance.
MBKC received a "satisfactory" rating from the Federal
Reserve Bank of Kansas City at its most recent examination of CRA performance, as of July 1993. In addition,
MBSL received an "outstanding" CRA performance
rating from its primary federal supervisor, the Office of
the Comptroller of the Currency, as of January 1993, and
MBK received a "satisfactory" CRA performance rating
from its primary federal supervisor, the Federal Deposit
Insurance Corporation ("FDIC"), as of March 1994.
Central Mortgage's subsidiary banks received "satisfactory" ratings at their most recent CRA examinations.
B. HMDA and Lending Practices
The Board has carefully reviewed the 1992 and 1993
HMDA data reported by MBKC for the Kansas City
MSA and the Eastside, in light of Protestant's comments. The 1993 HMDA data, including data on home
improvement loans, indicate a decrease in the percentage
of loan applications from African Americans that were
denied.22 The 1993 HMDA data also indicate a decrease
in the percentage of home improvement loan applica-
N.A., St. Louis, Missouri ("MBSL"), and Mercantile Bank of Kansas,
Shawnee Mission, Kansas ("MBK"). In particular, Protestant states that
MBSL's HMDA data indicate that MBSL's racial disparity ratio for
loan application denials is much higher than that of other lenders, and
that the most recent CRA evaluation of MBK found violations of the
Equal Credit Opportunity Act ("ECOA"), Fair Housing Act ("FHA"),
and HMDA.
20. 54 Federal Register 13,742 (1989).
21. Id. at 13,745.
22. Although the number of home mortgage loans reported by MBKC
under HMDA for the Kansas City MSA decreased by approximately
Legal Developments
tions from low- and moderate-income applicants that
were denied.
The HMDA data also reflect, however, disparities in
denial and origination rates by racial group. The Board is
concerned when the record of an institution indicates
disparities in lending to minority applicants, and believes that all banks are obligated to ensure that their
lending practices are based on criteria that assure not
only safe and sound lending, but also assure equal access
to credit by creditworthy applicants, regardless of race.
The Board also recognizes that HMDA data alone have
limitations that make the data an inadequate basis, absent other information, for conclusively determining
whether an institution has engaged in illegal discrimination in making lending decisions.
The Board notes that the most recent CRA examinations of MBKC, MBK, and MBSL, found no evidence of
any pattern or practice of discriminatory credit practices,
or other practices designed to discourage credit applications.23 Examiners found that the banks' delineations of
their local communities were reasonable and did not
arbitrarily exclude low- and moderate-income communities.
MBKC has taken steps to ensure that all loan applicants are treated equally in the lending process. For
example, in June 1994, MBKC employees who participate in the loan application process were given formal
training to increase their sensitivity to fair lending issues. In addition, MBKC recently established a second
review program to help ensure equal treatment of borrowers in the lending process by requiring the appropriate department manager to review declined residential
mortgage and certain consumer loan applications.
MBKC has taken a number of steps to meet housingrelated and other credit needs within its community. For
example, MBKC participates in the Insured Credit Services Loan Program ("ICSLP"), which offers unsecured
privately-insured home improvement and all purpose
loans using flexible underwriting criteria. In 1994,
MBKC made 251 ICSLP loans, totalling $1.7 million,
including 29 loans, totalling $124,000, to Eastside residents. In addition, MBKC offers home improvement
loans guaranteed by the state of Missouri through the
Missouri Housing Development Corporation Home Improvement Loan Program. In 1994, MBKC made nine
home improvement loans, totalling $65,456, through this
program, including three loans, totalling $17,271, to
Eastside residents.
40 percent from 1992 to 1993, MBKC sustained its level of lending to
minorities and Eastside residents over the same time period.
23. While FDIC examiners of MBK found some violations of the
ECOA, FHA, and HMDA, the examiners did not conclude that MBK
was engaged in discriminatory lending practices.
611
MBKC also offers housing-related loans to low- and
moderate-income borrowers through its Community
Partnership Program ("CPP"), which features flexible
underwriting guidelines,24 and the Rehabilitation Loan
Corporation's ("RLC") "70/30" program and the Missouri Housing Development Corporation's ("MHDC")
"80/20" program, which offer low- and moderateincome home buyers partially subsidized mortgages. In
1993, MBKC originated eight loans, totalling $325,800,
through the CPP, RLC, and MHDC programs, and in
1994, MBKC originated SP loans, totalling $357,870,
under these programs.25
MBKC also assists in meeting the affordable housing
and other needs of low- and moderate-income residents
throughout its delineated community by participating in
community development programs. In the Eastside community, MBKC has committed to provide $2.1 million to
the Mount Cleveland project to assist in the construction
of 84 low- and moderate-income housing units and
$500,000 to the Twelfth Street Heritage Development
Corporation to fund mortgage loans for low- and
moderate-income borrowers.26 In addition, MBKC has
provided $1.3 million for the construction of the Swope
Parkway Health Center, a health facility to be located in
the Eastside. MBKC also has provided $5.9 million to
help finance the Glover Plan, a project intended to redevelop downtown Kansas City.
MBKC provides funding to meet the credit needs of
small businesses in low- and moderate-income communities. In 1994, MBKC made 308 loans, totalling $9.6 million, to small businesses, including 19 loans, totalling
$570,000, to small businesses located in the Eastside.27
C. Other Elements of CRA Performance
MBKC uses various methods to ascertain community
credit needs, including direct contacts with community
groups, religious groups, and local government.28 In
24. Under the CPP program, low- and moderate-income applicants
may qualify for long-term financing for up to 95 percent of the home
purchase price. No fees are assessed under this program.
25. In 1994, MBKC made four loans, totalling $135,000, to Eastside
residents through the CPP, RLC, and MHDC programs, compared to
one $15,200 loan to an Eastside resident under these programs in 1993.
26. MBKC's commitment to the Twelfth Street Heritage Development Corporation was made in January 1995. Protestant contends that
the Board should not rely on commitments made for future lending or
new programs developed by MBKC because MBKC previously has
failed to implement CRA-related programs that it announced. In reviewing the record of performance of MBKC under the CRA, the Board has
relied on MBKC's established record of meeting the credit needs of its
local community.
27. MBKC's 1994 small-business lending reflected a significant
increase over 1993, when it made 184 small business loans, totalling
approximately $5.7 million. MBKC defines small business loans as
business loans of less than $100,000.
28. For example, MBKC is a member of the Community Lenders
Luncheon, a forum for lenders and community development agencies in
612
Federal Reserve Bulletin • June 1995
addition, MBKC co-sponsors and participates in educational programs for minorities and low- and moderateincome residents on consumer and commercial lending
programs available through MBKC.
The 1993 CRA performance examination of MBKC
found that MBKC's marketing program was generally
designed to reach its entire delineated community, including low- and moderate-income areas. MBKC markets its products and services through print media, direct
mail and radio. These activities include marketing efforts
specifically for minorities. For example, MBKC advertises in newspapers circulated in primarily minority communities and on a radio station that focuses on AfricanAmerican audiences.
The 1993 CRA performance examination also found
that MBKC's directors play an active role in the CRA
process and regularly monitor the bank's compliance
with the CRA. MBKC's CRA Committee consisting of
senior managers and three bank directors, oversees all
bank CRA initiatives and reviews the geographic distribution of MBKC's lending activities. The CRA Committee makes quarterly reports of MBKC's CRA activities
to MBKC's board of directors.
Protestant has expressed concern that this proposal
would result in the closing of a branch that serves
Eastside residents ("Prospect Branch"). The 1993 CRA
performance examination of MBKC noted that MBKC
operates branches throughout the Kansas City MSA, and
reported that the bank had adequate written policies and
procedures to mitigate the effects of branch closings in
its community. These policies and procedures provide
that MBKC will consider the impact of a branch closing
on the community and provide notice of a proposed
branch closing to customers of the branch at least 90
days prior to the proposed closing.
Conclusion on Convenience and Needs Factors
The Board has carefully considered all the facts of
record in this case, including the comments received, in
reviewing the convenience and needs factor under the
BHC Act. Based on a review of the entire record, including the programs and record of performance discussed
above, information provided by Mercantile, and relevant
reports of examination, the Board concludes that convenience and needs considerations, including the CRA
performance records of Mercantile, Central Mortgage,
Kansas City that gives lenders the opportunity to learn more about
development activities in Kansas City in which lenders can participate,
and the Single Family Working Committee, in which lenders and
governmental agencies explore ways to provide affordable singlefamily housing to low- and moderate-income areas.
and their subsidiary depository institutions, are consistent with approval of these applications.29
Other Considerations
The Board also concludes that the financial and managerial resources and future prospects of Mercantile and
Central Mortgage, and their respective subsidiaries, are
consistent with approval. Factors relating to the other
supervisory factors the Board must consider under section 3 of the BHC Act also are consistent with approval.
Mercantile also proposes to engage in making, acquiring, and servicing loans or other extensions of credit and
reinsuring credit life, accident and health insurance. The
Board previously has determined that these activities are
closely related to banking and permissible for bank
holding companies under section 4(c)(8) of the BHC Act
and Regulation Y.30 Mercantile has committed to conduct these activities in accordance with the Board's
regulations. The record in this case indicates that there
are numerous providers of these services and that this
proposal should provide added convenience to the customers of Mercantile and Central Mortgage. There is no
evidence in the record to indicate that consummation of
this proposal is likely to result in any significantly adverse effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of interests, or
unsound banking practices, that would not be outweighed by the likely public benefits of this proposal.
Accordingly, the Board has determined that the balance
of public interest factors it must consider under section
4(c)(8) of the BHC Act is favorable and consistent with
approval of this proposal.
29. Protestant has asked the Board to hold a public hearing or public
meeting to consider Mercantile's record in meeting its responsibilities
under the CRA. Section 3(b) of the BHC Act does not require the Board
to hold a hearing or meeting on an application unless the appropriate
supervisory authority of the bank to be acquired makes a timely written
recommendation of denial of the application. In this case, the Board has
not received such a recommendation. Generally, under the Board's
Rules of Procedure, the Board may, in its discretion, hold a public
hearing or meeting on an application to clarify factual issues related to
the application and to provide an opportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The Board has carefully considered Protestant's request. In the Board's view, Protestant has had an
opportunity to present written submissions, and Protestant has submitted substantial written comments that have been considered by the
Board. In light of all the facts of record, the Board has determined that a
public hearing or meeting is not necessary to clarify the factual record
in this proposal, and is not otherwise warranted in this case. Accordingly, the request for a public hearing or meeting on these applications
is denied.
Protestant also has stated that a thorough investigation of Mercantile's monitoring systems or internal testing of its affiliates for fair
housing compliance should be made before approval of this proposal.
These areas are reviewed in CRA performance and compliance examinations. As noted above, examiners of MBKC, MBK, and MBSL, did
not find any evidence of discriminatory lending practices.
30. See 12 C.F.R. 225.25(b)(1) and (b)(8)
Legal Developments
Based on the foregoing and other facts of record, the
Board has determined that the applications and notice
should be, and hereby are, approved. The Board's approval is expressly conditioned on Mercantile's compliance with all the commitments made in connection with
the applications and notice. The determination on the
nonbanking activities is subject to all the conditions in
Regulation Y, including those in sections 225.7 and
225.23(b)(3), and to the Board's authority to require
such modification or termination of the activities of a
holding company or any of its subsidiaries as the Board
finds necessary to assure compliance with, or to prevent
evasion of, the provisions and purposes of the BHC Act
and the Board's regulations and orders issued thereunder. The commitments and conditions relied on by the
Board in reaching this decision are deemed to be conditions imposed in writing by the Board in connection with
its findings and decision, and, as such, may be enforced
in proceedings under applicable law.
The acquisition of Central Mortgage's subsidiary
banks shall not be consummated before the fifteenth
calendar day following the effective date of this order,
and the banking and nonbanking transactions shall not
be consummated later than three months after the effective date of this order, unless such period is extended for
good cause by the Board or by the Federal Reserve Bank
of St. Louis, acting pursuant to delegated authority.
By order of the Board of Governors, effective
April 6, 1995.
Voting for this action: Chairman Greenspan and Governors
LaWare, Lindsey, Phillips, and Yellen. Absent and not voting: Vice
Chairman Blinder and Governor Kelley.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
ORDERS ISSUED UNDER BANK MERGER ACT
Premier Bank
Wytheville, Virginia
Order Approving the Merger of Banks and
Establishment of Bank Branches
Premier Bank, Wytheville, Virginia ("Premier"), a state
member bank, has applied under section 18(c) of the
Federal Deposit Insurance Act (12 U.S.C. § 1828(c)) (the
"Bank Merger Act") to acquire certain assets and assume certain liabilities of four branches of NationsBank
of Virginia, N.A., Richmond, Virginia ("NationsBank of
Virginia"). Premier also has applied under section 9 of
the Federal Reserve Act (12 U.S.C. § 321) to establish
613
branches at the current locations of the four NationsBank
of Virginia branches.1
Notice of the applications, affording interested persons
an opportunity to submit comments, has been given in
accordance with the Bank Merger Act and the Board's
Rules of Procedure (12 C.F.R. 262.3(b)). As required by
the Bank Merger Act, reports on the competitive effects
of the merger were requested from the United States
Attorney General, the Office of the Comptroller of the
Currency ("OCC"), and the Federal Deposit Insurance
Corporation ("FDIC"). The time for filing comments
has expired, and the Board has considered the applications and all comments received in light of the factors set
forth in the Bank Merger Act and section 9 of the
Federal Reserve Act.
Premier is a subsidiary of Premier Bankshares, Wytheville, Virginia, which is the 12th largest commercial
banking organization in Virginia, controlling $495.9 million of deposits, representing 1 percent of total deposits
in commercial banking organizations in the state.2 NationsBank of Virginia, a subsidiary of NationsBank Corporation, Charlotte, North Carolina, is the largest commercial banking organization in Virginia, with deposits
of $9.2 billion and a 15.9 percent share of deposits in
commercial banks. The four branches of NationsBank of
Virginia control deposits of $63.4 million, representing
less than 1 percent of its share of deposits in the state.
Upon consummation of the proposed transaction, Premier would become the 11th largest commercial bank in
Virginia, controlling $559.3 million of deposits in the
state.
Definition of Relevant Banking Market
Under the Bank Merger Act, the Board may not approve
a proposal that would result in a monopoly or substantially lessen competition in any relevant market, unless
the Board finds that "the anticompetitive effects of the
proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in
meeting the convenience and needs of the community to
be served." 12 U.S.C. § 1828(c)(5). In evaluating the
competitive factors in this case, the Board has carefully
considered the comments of a number of individuals
("Protestants") who maintain that the proposal would
substantially lessen competition for banking services in
Rural Retreat, Virginia. At the time of the announcement
of the proposed transaction, Premier and NationsBank of
Virginia were the only two banking organizations in
Rural Retreat. However, on March 1, 1995, the Federal
Reserve Bank of Richmond granted the Bank of Marion,
1. The locations of the branches that Premier proposes to establish are
listed in the Appendix.
2. Market deposit data are as of September 30, 1994.
614
Federal Reserve Bulletin • June 1995
Marion, Virginia, permission to open a branch in Rural
Retreat.
The Board and the courts have found that the relevant
banking market for analyzing the competitive effects of a
proposal must reflect commercial and banking realities
and must consist of the local area where local customers
can practicably turn for alternatives.3 The Board has
considered all the facts in this case, including comments
from Protestants, and concludes that the relevant geographic market in which to evaluate the competitive
effects of this proposal is Wythe County, Virginia (hereinafter referred to as the "Wythe County banking
market").
Rural Retreat, a town of approximately 972 residents,
is located in Wythe County. Wytheville, with a population of more than 8,000, is the county seat and largest
town in Wythe County and it is attractive to residents
throughout the county for employment and shopping.4
Rural Retreat is 11 miles southwest of Wytheville.
Travel time to Wytheville from Rural Retreat is approximately 10 minutes, and both Interstate Highway 81 and
U.S. Highway 11 connect the two towns.
After review of the data discussed above and the other
facts in this case, including comments from the Protestants, the Board concludes that the record indicates that
customers in Rural Retreat reasonably can turn to providers of banking services throughout the Wythe County
banking market. Based on all the facts of record, the
Board finds that the relevant geographic market in this
case is the Wythe County banking market.
market deposits. The Herfindahl-Hirschman Index
("HHI") for the market would increase by 121 points to
2650.6
A number of factors indicate that the proposed acquisition would not have a significantly adverse effect on
competition in the Wythe county market. For example,
the number of competitors in the market would remain
unchanged. In addition to NationsBank of Virginia, these
competitors include a subsidiary of another large interstate banking organization with a market share of
19.2 percent.
As noted above, competitive factor reports were
sought from the Attorney General, the OCC, and the
FDIC, none of which objected to the consummation of
this proposal or indicated that it would have any significantly adverse competitive effects. Accordingly, in light
of the moderate increase in concentration, the number of
competitors that would remain in the market, and other
facts of record, the Board concludes that consummation
of this proposal is not likely to result in any significantly
adverse effect on competition in the Wythe County banking market.
In addition to the branch in the Wythe County market,
Premier also proposes to acquire three branches of NationsBank of Virginia, located in the Galax, Virginia,
banking market.7 Premier and NationsBank of Virginia
do not currently compete in this market. Based on the
facts of record, the Board concludes that consummation
of this proposal is not likely to result in any significantly
adverse effect on competition in the Galax banking
market.
Effects in the Relevant Banking Markets
Convenience and Needs Considerations
Premier is the largest of six depository institutions in the
Wythe County banking market, controlling deposits of
$102.3 million, representing 34.2 percent of the total
deposits in depository institutions in the market ("market deposits"). 5 NationsBank is the second largest depository institution in the market, controlling $89.1 million
of deposits, representing 29.8 percent of market deposits. Upon consummation of this proposal, Premier would
control $165.7 million in deposits, representing 40 percent of total market deposits, and NationsBank of Virginia would continue to control 23.9 percent of the
3. See St. Joseph Valley Bank, 68 Federal Reserve Bulletin 673, 674
(1982).
4. Population data are based on 1990 Census Bureau information.
5. Market data are as of June 30, 1994. In this context, depository
institutions include commercial banks, savings banks, and savings associations. Market share data before consummation are based on calculations in which the deposits of thrift institutions are included at
50 percent. The Board previously has indicated that thrift institutions
have become, or have the potential to become significant competitors of
commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin 788
(1990); National City Corporation, 70 Federal Reserve Bulletin 743
(1984).
In acting on an application to acquire a depository institution, the Board must consider the convenience and
needs of the communities to be served and take into
account the records of the relevant depository institutions under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires
the federal financial supervisory agencies to encourage
financial institutions to help meet the credit needs of the
6. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the postmerger HHI is above 1800 is considered to be highly concentrated. In
such markets, the Justice Department is likely to challenge a merger
that increases the HHI by more than 50 points. The Justice Department
has informed the Board that a bank merger or acquisition generally will
not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the
merger increases the HHI by more than 200 points. The Justice Department has stated that the higher than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the
competitive effect of limited-purpose lenders and other non-depository
financial entities.
7. The Galax banking market consists of the City of Galax, Grayson
County, and most of Carrol County, Virginia.
Legal Developments
local communities in which they operate. To accomplish
this end, the CRA requires the appropriate federal supervisory authority to "assess the institution's record of
meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of such institutions," and to take that record into account in its
evaluation of applications.8
The Board received comments from a resident of
Rural Retreat ("Protestant") alleging, in general, that
Premier has failed to comply with the CRA, and, in
particular, that Premier has failed to adequately ascertain
and meet the need for small business lending in its
community.
The Board has carefully reviewed the CRA performance record of Premier, Protestant's comments, and
Premier's response to these comments, as well as all
other relevant facts of record, in light of the CRA, the
Board's regulations, and the Statement of the Federal
Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement"). 9
A. Record of CRA Performance
The Agency CRA Statement provides that a CRA examination is an important and often controlling factor in the
consideration of an institution's CRA record and that
these reports will be given great weight in the applications process.10 The Board notes that on August 1, 1994,
Premier received a "satisfactory" rating in its most
recent examination for CRA performance by the Federal
Reserve Bank of Richmond ("1994 CRA Examination").
B. Other Aspects of CRA Performance
The 1994 CRA Examination stated that Premier has
adequate policies and procedures supporting nondiscrimination in all lending and credit activities. Furthermore,
applications are solicited from all segments of the delineated community, including low- and moderate-income
neighborhoods. Moreover, examiners noted that Premier
is in compliance with the substantive provisions of antidiscrimination laws and regulations.11
Examiners noted that Premier is primarily a retail
lender, although it regularly extends business loans that
contribute to the economic growth of the community.
The bank reports that it extended 165 small business
8. See 12 U.S.C. § 2903.
9. 54 Federal Register 13,742 (1989).
10. Id. at 13,745.
11. Examiners noted certain technical reporting deficiencies under the
Home Mortgage Disclosure Act and technical violations of the Equal
Credit Opportunity Act. Management has taken corrective action to
remedy these violations.
615
loans in 1993, totalling $3.4 million, and 270 small
business loans in 1994, totalling $6.1 million. During the
first quarter of 1995, Premier approved 14 small business loans, totalling $2.4 million. Examiners also indicated that the bank participates, with five other local
institutions, in a $300,000 loan pool for facade improvements for downtown businesses.
The 1994 CRA Examination also indicated that Premier originated 450 mortgage loans in 1993 primarily
for the purpose of home purchase, home refinance, or
home improvements. In addition, Premier made several
loans to local developers for the construction, purchase,
or renovation of low- to moderate-income rental housing, including a loan to build two duplexes in Rural
Retreat and a loan to build a duplex in Bland County and
to refinance a four-unit apartment complex. In addition,
in 1993, Premier made 2,998 loans of amounts less than
$5,000.
In the 1994 CRA Examination, the examiners noted
that Premier's primary ascertainment activities were director and officer involvement in community organizations, supplemented by business and social relationships.12 Examiners also concluded that Premier's
marketing efforts were adequate and found that the bank
routinely advertised loan and deposit products in local
newspapers, radio and cable television stations that
reached all segments of its delineated community.
C. Conclusion Regarding Convenience and Needs
Factors
The Board has carefully considered all the facts of
record, including the comments received, in reviewing
the convenience and needs factors under the BHC Act.13
Based on a review of the entire record of this proposal,
including the most recent CRA performance examina-
12. For example, Premier's directors and officers are involved with
the Wythe Industrial Development Authority, Peaks of Virginia Industrial Development Authority, and Wytheville-Wythe-Bland Chamber of
Commerce. In addition, an officer is vice mayor of Wytheville, and a
director serves on the Pulaski County Board of Supervisors.
13. The Board also considered a number of comments from Rural
Retreat residents objecting to this proposal and alleging that local
financial institutions were not given the opportunity to acquire the
NationsBank branches, that local lending decisions would no longer be
made by lending officers who understand the credit needs of Rural
Retreat residents, that the proposal would create delays in decisions on
loan applications, and that elderly residents would be adversely affected. The record in this case indicates that NationsBank solicited bids
from other financial institutions for the purchase of its Rural Retreat
office. With regard to the other allegations raised, Premier has stated
that all credit decisions for its customers are made promptly in nearby
Wytheville by bank personnel familiar with the financial and economic
conditions in Wythe County. In addition, the record indicates that
Premier ofiFers a variety of banking services to elderly customers,
including a no-fee checking account and a waiver of the monthly
maintenance fee on any non-interest bearing account. In light of all the
facts of record, the Board concludes that these comments do not present
adverse considerations under the convenience and needs factor.
616
Federal Reserve Bulletin • June 1995
tion of Premier, the Board concludes that convenience
and needs considerations, including Premier's efforts to
ascertain and meet the small business credit needs of its
community are consistent with approval of these applications.
Other Considerations
The Board also concludes that the financial and managerial resources and future prospects of Premier are consistent with approval of these applications.
Based on the foregoing and all the facts of record, the
Board has determined that these applications should be,
and hereby are, approved. The Board's approval of this
proposal is conditioned on compliance by Premier with
the commitments made in connection with these applications. 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 under applicable law.
The acquisition by Premier may not be consummated
before the fifteenth calendar day following the effective
date of this order, and this proposal may not be consummated later than three months after the effective date of
this order, unless such period is extended by the Board
or by the Federal Reserve Bank of Richmond, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
April 24, 1995.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, LaWare, Phillips, and Yellen. Absent and not voting: Governor Lindsey.
JENNIFER J. JOHNSON
Deputy Secretary of Board
Appendix
Branch offices of NationsBank of Virginia to be
established by Premier:
1. 300 North Main Street, Galax, Virginia
2. Main Street, Fries, Virginia
3. 300 East Main Street, Independence, Virginia
4. Main & Buck Streets, Rural Retreat, Virginia
ORDERS ISSUED UNDER INTERNATIONAL BANKING
ACT
Banco Exterior de Espana, S.A.
Madrid, Spain
section 7(d) of the IBA (12 U.S.C. § 3105(d)) to establish a state-licensed branch in New York, New York. 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 (The New York Times, June 30, 1994). The time for
filing comments has expired and the Board has considered the application and all comments received.
Bank was the sixth largest bank in Spain in terms of
assets as of December 31, 1993. Bank offers a wide
range of banking and financial services through numerous offices and subsidiaries, primarily in Europe and
North and South America. In the United States, Bank
owns a subsidiary bank, Extebank, Stony Brook, New
York, and maintains an agency in Miami, Florida, and a
representative office in New York, New York. Upon
establishment of the proposed branch, the New York
representative office would be dissolved and its operations taken over by the branch. Bank is a qualifying
foreign banking organization as defined in Regulation K.
12 C.F.R. 211.23(b).
Bank's majority shareholder, Corporation Bancaria de
Espana ("CBE"), also known as "Argentaria," is one of
the largest financial groups in Spain.1 CBE was created
in 1991 by the Spanish government as a "governmental
company" with bank status to serve as a holding company for Bank and several other financial institutions
controlled by the government. The Spanish government
currently owns 50.9 percent of the voting shares of CBE.
CBE is a qualifying foreign banking organization as
defined in Regulation K. 12 C.F.R. 211.23(b).
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 engages directly in the business of banking
outside of the United States and has furnished to the
Board the information it needs to assess adequately the
application. The Board also must determine that the
foreign bank applicant and any foreign bank parent are
subject to comprehensive supervision or regulation on a
consolidated basis by its home country supervisor.
12 U.S.C. § 3105(d)(2), 12 C.F.R. 211.24(c)(1). The IBA
and Regulation K also permit the Board to take into
account additional standards. 12 U.S.C. § 3105(d)(3)-(4)),
12 C.F.R. 211.24(c)(2).
Order Approving Establishment of a Branch
Banco Exterior de Espana, S.A. ("Bank"), Madrid,
Spain, a foreign bank within the meaning of the International Banking Act ("IBA"), has applied under
1. As of December 31, 1994, CBE owned 73.2 percent of the shares
of Bank and 6.7 percent of Bank's shares were held by Spanish state
entities; the remainder were publicly held. CBE also has four other
principal bank subsidiaries in Spain.
Legal Developments
Bank engages directly in the business of banking
outside of the United States through its branches in
Europe, South America and elsewhere. Bank also has
provided the Board with the information necessary to
assess the application through submissions that address
the relevant issues.
Regulation K provides that a foreign bank and any
parent foreign bank will be considered to be subject to
comprehensive supervision or regulation on a consolidated basis if the Board determines that the bank is
supervised and regulated in such a manner that its home
country supervisor receives sufficient information on the
bank's worldwide operations, including its relationship
to any affiliate, to assess the bank's overall financial
condition and its compliance with law and regulation.2
12 C.F.R. 211.24(c)(1). The Board has previously determined that other Spanish credit institutions are subject to
comprehensive supervision on a consolidated basis by
their home country supervisor, the Bank of Spain.3 Bank
and CBE have provided information demonstrating that
Bank and CBE are subject to the same regulatory scheme
applicable to these other institutions.4 In addition, the
Bank of Spain has stated that in performing its supervisory functions, it makes no distinction between private
and government-owned banks. Based on all the facts of
record, the Board concludes that Bank and CBE are
subject to comprehensive supervision on a consolidated
basis by their home country supervisor.
In considering these applications, the Board also has
taken into account the additional standards set forth in
section 7 of the IBA. 12 U.S.C. § 3105(d)(3)-(4). Bank's
home country supervisor, the Bank of Spain, has authorized the establishment of the proposed branch in New
York.
Managerial and financial resources of Bank are also
considered consistent with approval. Bank, which has
numerous branches and subsidiaries outside Spain, ap2. In assessing this standard, the Board considers, among other
factors, the extent to which the home country supervisor:
(i) Ensures that the bank has adequate procedures for monitoring and
controlling its activities worldwide;
(ii) Obtains information on the condition of the bank and its subsidiaries and offices outside the home country through regular examination
reports, audit reports, or otherwise;
(iii) Obtains information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic;
(iv) Receives 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;
and
(v) Evaluates prudential standards, such as capital adequacy and risk
asset exposure, on a worldwide basis.
These are indicia of comprehensive, consolidated supervision. No single
factor is essential, and other elements may inform the Board's determination.
3. See, Banco de Sabadell, S.A., 79 Federal Reserve Bulletin 366
(1993); and Banco Santander, S.A., 79 Federal Reserve Bulletin 622
(1993).
4. CBE qualifies as a bank under Spanish law and is subject to
regulation and supervision as such by the Bank of Spain.
617
pears to have the experience and capacity to conduct
banking operations in the United States through the
proposed branch. In addition, Bank has established controls and procedures for its U.S. offices to ensure compliance with U.S. law.
Spanish risk-based capital standards conform to European Union capital standards which are consistent with
those established under the Basle Accord. CBE's and
Bank's capital ratios are in excess of the minimum levels
that would be required by the Basle Accord and are
considered equivalent to capital that would be required
of a U.S. banking organization.
Finally, with respect to access to information regarding Bank's operations, the Board has reviewed relevant
provisions of Spanish law and has communicated with
the appropriate government authorities. Bank and CBE
have committed that they will make available to the
Board such information on the operations of Bank and
any affiliate of Bank that the Board deems necessary to
determine and enforce compliance with the IBA, the
Bank Holding Company Act of 1956, as amended, and
other applicable federal law. To the extent that the provision of such information to the Board may be prohibited
or impeded by law, Bank and CBE have committed to
cooperate with the Board in obtaining any necessary
consents or waivers that might be required from third
parties in connection with disclosure of certain necessary
information. In addition, subject to certain conditions,
the Bank of Spain has agreed to cooperate in providing
the Board with information on Bank's and CBE's operations. In light of these commitments and other facts of
record, and subject to the condition described below, the
Board concludes that Bank has provided adequate assurances of access to any necessary information the Board
may request.
On the basis of all the facts of record, and subject to
the commitments made by Bank and CBE, 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. Should 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 Bank and CBE with the commitments made in connection with this application, and
with the conditions contained in this order.5 The commit-
5. The Board's authority to approve the establishment of the proposed
branch parallels the continuing authority of the New York State Bank-
618
Federal Reserve Bulletin • June 1995
ments and conditions referred to above are conditions
imposed in writing by the Board in connection with its
decision, and may be enforced in proceedings under
12 U.S.C. § 1818 or 12 U.S.C. § 1847 against Bank and
its aflHliates.
By order of the Board of Governors, effective
April 5, 1995.
Voting for this action: Chairman Greenspan and Governors
LaWare, Lindsey, Phillips, and Yellen. Absent and not voting: Vice
Chairman Blinder and Governor Kelley.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Banco Frances del Rio de la Plata S.A.
Buenos Aires, Argentina
Order Approving Establishment of a Representative
Office
Banco Frances del Rio de la Plata S.A. ("Bank"), Buenos Aires, Argentina, a foreign bank within the meaning
of the International Banking Act ("IBA"), has applied
under section 10(a) of the IBA (12 U.S.C. § 3107(a)) to
establish a representative office in New York, New York.
The Foreign Bank Supervision Enhancement Act of
1991 ("FBSEA"), which amended the IBA, provides
that a foreign bank must obtain the approval of the
Board to establish a representative office in the United
States.
Notice of the application, affording interested persons
an opportunity to submit comments, has been published
in a newspaper of general circulation in New York, New
York (New York Newsday, July 11, 1994). The time for
filing comments has expired and the Board has considered the application and all comments received.
Bank is the third largest private commercial bank in
Argentina and has total consolidated assets of approximately $2.3 billion.1 An Argentinian holding company
owns approximately 30.9 percent of Bank's shares, and
is the only entity that holds more than 10 percent of
Bank's shares. The remainder of the stock of Bank is
widely held. Bank operates through 65 branches in Argentina, and has four domestic nonbank subsidiaries
engaged in stock brokerage, venture capital, insurance
brokerage and pension fund administration. Bank's only
ing Department 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.
1. Data are as of December 31, 1994, unless otherwise noted.
overseas operation is a bank subsidiary in the Cayman
Islands.
The proposed representative office would engage in
traditional representative functions, including marketing
Bank's services in relation to all types of banking business. The proposed representative office would not accept any deposits or make any loans, make any business
decision for the account of Bank, or otherwise transact
any banking business.
In acting on an application to establish a representative office, the IBA and Regulation K provide that the
Board shall take into account whether the foreign bank
engages directly in the business of banking outside of
the United States and has furnished the Board the information it needs to assess adequately the application. The
Board also shall take into account whether the foreign
bank and any foreign bank parent is subject to comprehensive supervision or regulation on a consolidated basis
by its home country supervisor (12 U.S.C. § 3105(d)(2);
12 C.F.R. 211.24). The Board may also take into account
additional standards as set forth in the IBA (12 U.S.C.
§ 3105(d)(3)-(4)) and Regulation K (12 C.F.R.
211.24(c)).
The Board has stated previously that the standards that
apply to the establishment of a branch or agency need
not in every case apply to the establishment of a representative office because representative offices do not
engage in a banking business and cannot take deposits or
make loans.2 In evaluating an application to establish a
representative office under the IBA and Regulation K,
the Board will take into account the standards that apply
to establishment of branches and agencies, subject to the
following considerations. With respect to supervision by
home country authorities, a foreign bank that proposes to
establish a representative office must be subject to a
significant degree of supervision by its home country
supervisor.3 A foreign bank's financial and managerial
resources will be reviewed to determine whether its
financial condition and performance demonstrate that it
is capable of complying with applicable laws and has an
operating record that would be consistent with the establishment of a representative office in the United States.
Finally, all foreign banks, whether operating through
branches, agencies or representative offices, will be required to provide adequate assurances of access to information on the operations of bank and its affiliates necessary to determine compliance with U.S. laws.
In this case, with respect to the issue of supervision by
home country authorities, the Board has considered the
following information. The Central Bank of the Republic of Argentina ("Central Bank") is the bank supervi2. See 58 Federal Register 6348, 6351 (1993).
3. See Citizens National Bank, 79 Federal Reserve Bulletin 805
(1993).
Legal Developments
sory authority in Argentina and, as such, is the home
country supervisor of Bank. The Central Bank has authorized Bank to establish the proposed representative office. The Central Bank performs its supervisory function
through the Superintendency of Financial Entities. The
Central Bank is authorized to approve and revoke bank
licenses, set capital and liquidity requirements, approve
the establishment of domestic or overseas offices or
subsidiaries, and approve new banking activities. The
Central Bank is also responsible for enforcement of laws
regulating banking activities.
In approving an application by another Argentine
bank, the Board noted that the Central Bank currently is
in the process of making significant changes and enhancements to its system of bank supervision.4 Under
the enhanced system, the Central Bank monitors the
operations and financial condition of Bank through onsite inspections and the review of required regulatory
reports and external audit reports. Bank is subject to
comprehensive annual inspections. Comprehensive inspections include a review of internal controls, credit
policy, portfolio risk, capital and reserve requirements,
transactions with related institutions, and foreign exchange operations and foreign currency transactions.
Comprehensive inspections also include an evaluation of
management's ability to operate the bank in a safe and
sound manner.
Off-site monitoring of Bank by the Central Bank is
carried out through the review of required financial
reports and external audit reports that provide information on Bank's financial condition and compliance with
law and regulation. Bank files with the Central Bank
monthly, quarterly, and annual reports that are prepared
on a consolidated basis and that address, among other
things, asset balances, earnings performance, asset and
liability structure, credit risk of large borrowers, and
financial transactions with affiliates. The Central Bank
also imposes certain investment and lending limits on
Bank in its dealings with affiliates, senior management
and directors. Bank is also required by the Central Bank
to establish adequate internal control procedures in order
to effectively monitor and control its worldwide activities. Bank conducts periodic internal audits of its domestic and foreign operations and has implemented policies
and procedures to safeguard against money laundering
and other illicit activities.
Based on all the facts of record, which include the
information described above, the Board concludes that
factors relating to the supervision of Bank by its home
country supervisors are consistent with approval of the
proposed representative office.
4. See Banco de Galicia y Buenos Aires, 80 Federal Reserve Bulletin
846 (1994).
619
The Board has also found that Bank engages directly
in the business of banking outside of the United States
through its commercial banking operations in Argentina.
Bank has provided the Board with the information necessary to assess the application through submissions that
address the relevant issues.
The Board has also taken into account the additional
standards set forth in section 7 of the IBA and Regulation K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)). As noted above, the Central Bank has
authorized Bank to establish the proposed representative
office. In addition, the Central Bank may share information on Bank's operations with other supervisors, including the Board.
With respect to the financial and managerial resources
of Bank, taking into consideration Bank's record of
operations in its home country, its overall financial resources, and its standing with its home country supervisors, the Board has also determined that financial and
managerial factors are consistent with approval of the
proposed representative office. Bank appears to have the
experience and capacity to support the proposed representative office and has also established controls and
procedures for the proposed representative office to ensure compliance with U.S. law.
Finally, with respect to access to information about
Bank's operations, the Board has reviewed the relevant
provisions of law in Argentina and has communicated
with appropriate governmental authorities regarding
access to information. Bank and its ultimate parent
have each committed to make available to the Board
such information on the operations of Bank and its
affiliates that the Board deems necessary to determine
and enforce compliance with the IBA, the Bank Holding
Company Act of 1956, as amended, and other applicable
Federal law. To the extent that the provision of such
information may be prohibited by law, Bank and its
ultimate parent have committed to cooperate with the
Board in obtaining any necessary consents or waivers
that might be required from third parties in connection
with the disclosure of certain necessary information. In
light of these commitments and other facts of record, and
subject to the condition described below, the Board
concludes that Bank has provided adequate assurances
of access to any necessary information the Board
may request.
On the basis of all the facts of record, and subject to
the commitments made by Bank and its ultimate parent,
as well as the terms and conditions set forth in this order,
the Board has determined that Bank's application to
establish a representative office should be, and hereby is,
approved. If any restrictions on access to information on
the operations or activities of Bank and any of its affiliates subsequently interfere with the Board's ability to
determine the compliance by Bank or its affiliates with
620
Federal Reserve Bulletin • June 1995
applicable federal statutes, the Board may require termination of any of Bank's direct or indirect activities in the
United States. Approval of this application is also specifically conditioned on compliance by Bank and its ultimate parent with the commitments made in connection
with this application, and with the conditions in this
order.5 The commitments and conditions referred to
above are conditions imposed in writing by the Board in
connection with its decision, and may be enforced in
proceedings under 12 U.S.C. § 1818 against Bank and its
affiliates.
By order of the Board of Governors, effective
April 24, 1995.
The Farmers Bank of China ("Bank"), Taipei, Taiwan, a
foreign bank within the meaning of the International
Banking Act ("IBA"), has applied under section 7(d) of
the IBA (12 U.S.C. § 3105(d)) to establish a statelicensed limited branch in Los Angeles, California. The
Foreign Bank Supervision Enhancement Act of 1991
("FBSEA"), which amended the IBA, provides that a
foreign bank must obtain the approval of the Board to
establish a branch in the United States.
Notice of the application, affording interested persons
an opportunity to submit comments, has been published
in a newspaper of general circulation in Los Angeles,
California (Los Angeles Times, January 8, 1995). The
time for filing comments has expired and all comments
have been considered.
Bank, with assets of $13.7 billion on December 31,
1994, is the 11th largest bank in Taiwan. The Taiwanese
central government through its agency, the Ministry of
Finance ("Ministry"), owns almost 60 percent of Bank's
shares. The remaining shares of Bank are widely held by
the general public.
Bank operates 56 branches throughout Taiwan, and
one subsidiary, Datum Real Estate Management Company, Ltd. ("Datum"), Taipei, Taiwan.1 Bank's existing
branch in Seattle, Washington, was established in April
1991. In addition, Bank operates an offshore banking
unit in Taiwan.
Bank's primary purpose for establishing the branch is
to obtain better access to the California banking market,
and to facilitate trade between the United States and
Taiwan. As a limited branch, the proposed branch would
be prohibited from accepting deposits from sources other
than those permitted pursuant to section 5 of the IBA and
section 25A of the Federal Reserve Act.2 The activities
of the proposed branch also would include making loans,
issuing and confirming letters of credit, foreign exchange trading, international trade finance and wire
transfers. Bank does not engage directly or indirectly in
any nonbanking activities in the United States, and
would be a qualifying foreign banking organization
within the meaning of Regulation K after establishing
the proposed branch. 12 C.F.R. 211.23(b).
Bank has received approval to establish the proposed
branch from the Ministry, conditioned upon approval of
the proposed branch by the relevant authorities in the
United States. Bank has applied to the California State
Banking Department for approval to establish the proposed branch.
In order to approve an application by a foreign bank to
establish a branch in the United States, the IBA and
Regulation K require the Board to determine that the
foreign bank applicant engages directly in the business
of banking outside of the United States, and has furnished to the Board the information it needs to adequately assess the application. The Board must also
determine that the foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by
its home country supervisor (12 U.S.C. § 3105(d)(2)).
The Board may also take into account additional standards as set forth in the IBA (12 U.S.C. § 3105(d)(3)-(4))
and Regulation K (12 C.F.R. 211.24(c)).
Bank engages directly in the business of banking
outside of the United States through its extensive commercial banking operations in Taiwan. Bank also has
provided the Board with the information necessary to
assess the application through submissions that address
the relevant issues.
Regulation K provides that a foreign bank will be
considered to be subject to comprehensive supervision
5. The Board's authority to approve the establishment of the proposed
representative office 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 representative office of Bank in accordance with any terms or
conditions that the State of New York may impose.
1. Datum, with assets of $199 million, provides construction management and oversight services.
2. Bank is proposing to open a limited branch under section 5 of the
IBA because it already operates a full-service branch in Seattle, Washington, and has designated Washington as its home state.
12 U.S.C. § 3103.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, LaWare, Phillips, and Yellen. Absent and not voting: Governor Lindsey.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
The Farmers Bank of China
Taipei, Taiwan
Order Approving Establishment of a Branch
Legal Developments
or regulation on a consolidated basis if the Board determines that the bank is supervised and regulated in such a
manner that its home country supervisor receives sufficient information on the foreign bank's worldwide operations, including the relationship of the foreign bank to
any affiliate, to assess the overall financial condition of
the foreign bank and its compliance with law and regulation (12 C.F.R. 211.24(c)(1)).3 In making its determination under this standard, the Board has considered the
following information.
Bank is supervised and regulated by the Ministry and
the Taiwanese Central Bank ("Central Bank"), which
share responsibility for the supervision of Taiwanese
banks. The Banking Law of Taiwan grants the Ministry
overall authority for the regulation and supervision of
Taiwanese banks, including commercial banks, such as
Bank.4 The Ministry has delegated the authority to the
Central Bank to act as the primary examiner of banks in
Taiwan, in which capacity the Central Bank conducts
mandatory annual examinations.5
The Board has previously determined, in connection
with applications involving other Taiwanese banks, including Chiao Tung Bank, Taipei, Taiwan, that these
banks were subject to home country supervision on a
consolidated basis.6 In this case, Bank is supervised by
the Ministry and the Central Bank on the same terms and
conditions as Chiao Tung Bank. Based on all the facts of
record, the Board has determined that Bank is subject to
comprehensive supervision and regulation on a consolidated basis by its home country supervisors.
3. 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.
4. This authority permits the Ministry to, among other things, issue
licenses, limit activities and expansion, conduct examinations, set minimum capital and liquidity ratios, limit credit extensions, restrict director
interlocks, define qualifications for management, and take enforcement
actions.
5. Bank receives additional oversight by the Ministry of Audit, an
auditor of government agencies and government-owned enterprises.
This oversight is secondary to supervision by the Ministry and the
Central Bank.
6. See Chiao Tung Bank, 79 Federal Reserve Bulletin 543 (1993). See
also Taipei Bank, 79 Federal Reserve Bulletin 143 (1993); Bank of
Taiwan, 79 Federal Reserve Bulletin 541 (1993); and United World
Chinese Commercial Bank, 79 Federal Reserve Bulletin 146 (1993).
621
The Board has also taken into account the additional
standards set forth in section 7 of the IBA (see 12 U.S.C.
§ 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)). Bank has provided the Board with the information necessary to assess
the application through submissions that address the
relevant issues. As noted above, Bank has received the
consent of its home country authorities to establish the
proposed state-licensed branch. In addition, the Ministry
may share information on Bank's operations with other
supervisors, including the Board.
Bank must comply with the minimum capital standards of the Basle Accord, as implemented by Taiwan.
Bank's capital exceeds these minimum standards and
can be considered equivalent to capital that would be
required of a U.S. banking organization. Managerial and
other financial resources of Bank are also considered
consistent with approval, and Bank appears to have the
experience and capacity to support the proposed branch.
Bank has established controls and procedures for the
proposed branch in order to ensure compliance with U.S.
law, as well as controls and procedures for its worldwide
operations generally.
Bank has committed that it will make available to the
Board such information on the operations of Bank and
any affiliate of Bank that the Board deems necessary to
determine and enforce compliance with the IBA, the
Bank Holding Company Act of 1956, as amended, and
other applicable federal law. To the extent that the provision of such information is prohibited or impeded by
law, Bank has committed to cooperate with the Board to
obtain any necessary consents or waivers that might be
required from third parties in connection with disclosure
of certain information. In addition, subject to certain
conditions, the Ministry and the Central Bank may share
information on Bank's operations with other supervisors, including the Board. In light of these commitments
and other facts of record, and subject to the condition
described below, the Board concludes that Bank has
provided adequate assurances of access to any necessary
information the Board may request.
On the basis of all the facts of record, and subject to
the commitments made by Bank, as well as the terms
and conditions set forth in this order, the Board has
determined that Bank's application to establish a statelicensed limited branch should be, and hereby is, approved. Should any restrictions on access to information
on the operations or activities of Bank and its affiliates
subsequently interfere with the Board's ability to determine the safety and soundness of Bank's U.S. operations
or the compliance by Bank or its affiliates with applicable federal statutes, the Board may require termination
of any of the Bank's direct or indirect activities in the
United States. Approval of this application is also specifically conditioned on Bank's compliance with the commitments made in connection with this application, and
622
Federal Reserve Bulletin • June 1995
with the conditions in this order.7 The commitments and
conditions referred to above are conditions imposed in
writing by the Board in connection with its decision, and
may be enforced in proceedings under 12 U.S.C. § 1818
or 12 U.S.C. § 1847 against Bank, its office and its affiliates.
By order of the Board of Governors, effective
April 24, 1995.
7. The Board's authority to approve the establishment of the proposed
branch parallels the continuing authority of the State of California to
license offices of a foreign bank. The Board's approval of this application does not supplant the authority of the State of California, and its
agent, the California State Banking Department, to license the proposed
branch of Bank in accordance with any terms or conditions that the
California State Banking Department may impose.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, LaWare, Phillips, and Yellen. Absent and not voting: Governor Lindsey.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Section 3
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Brill Bancshares, Inc.,
Brill, Wisconsin
CFX Corporation,
Keene, New Hampshire
Brill State Bank,
Brill, Wisconsin
Orange Savings Bank,
Orange, Massachusetts
CFX Interim Trust Company,
Orange, Massachusetts
Bank of Atkins,
Atkins, Arkansas
Chillicothe State Bancorp, Inc.
Chillicothe, Illinois
Minneapolis
April 12, 1995
Boston
April 4, 1995
St. Louis
April 4, 1995
Kansas City
April 12, 1995
Seneca Management Company,
Neosho, Missouri
Kansas City
April 14, 1995
Etowah Bancing Company,
Etowah, Tennessee
Camino Real Bancshares, Inc.,
San Antonio, Texas
Camino Real Delaware, Inc.,
Wilmington, Delaware
Camino Real Bank, N.A.,
Eagle Pass, Texas
DG Partnership, Ltd.,
Muleshoe, Texas
Muleshoe Bancshares, Inc.,
Muleshoe, Texas
First Bank of Muleshoe,
Muleshoe, Texas
Atlanta
March 30, 1995
Dallas
March 31, 1995
Dallas
April 19, 1995
Chambers Bancshares, Inc.,
Danville, Arkansas
Commerce Bancshares, Inc.,
Kansas City, Missouri
CBI-Illinois, Inc.,
Kansas City, Missouri
Community Bancshares, Inc.
Employee Stock Ownership
Plan,
Neosho, Missouri
Community Group, Inc.,
Chattanooga, Tennessee
CRB Financial Corp.,
San Antonio, Texas
Danny Management, Inc.,
Muleshoe, Texas
Legal Developments
623
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
ESB Bancorp, Inc.,
Enfield, North Carolina
FBD Holding Company,
Dalton, Georgia
FCFT, Inc.,
Princeton, West Virginia
First Community Bank Group,
Inc.,
Hopkins, Minnesota
Todd County Agency, Inc.,
Hopkins, Minnesota
First Interstate BancSystem of
Montana, Inc.,
Billings, Montana
Golden Bancshares, Inc.,
Golden, Illinois
Greater Rome Bancshares, Inc.,
Rome, Georgia
Habersham Bancorp
Cornelia, Georgia
Hibernia Corporation,
New Orleans, Louisiana
Hibernia Corporation,
New Orleans, Louisiana
Jacksonville Bancorp, M.H.C.,
Jacksonville, Illinois
Lima Bancshares, Inc.,
Lima, Illinois
Mercantile Bancorporation Inc.,
St. Louis, Missouri
Mercantile Bancorporation Inc.
of Arkansas,
St. Louis, Missouri
Norwest Corporation,
Minneapolis, Minnesota
Old Second Bancorp, Inc.,
Aurora, Illinois
Overland Bancorp., Inc.,
Belton, Missouri
Stine Family Partnership,
Grand Island, Nebraska
Turner Bancshares, Inc.,
Belgrade, Missouri
Enfield Savings Bank, Inc., SSB,
Enfield, North Carolina
First Bank of Dalton,
Dalton, Georgia
Bank of Mount Hope, Inc.
Mount Hope, West Virginia
Citizens State Bank of Barrett,
Barrett, Minnesota
Richmond
April 10, 1995
Atlanta
April 18, 1995
Richmond
March 29, 1995
Minneapolis
April 19, 1995
First Park County Bancshares, Inc.,
Livingston, Montana
Minneapolis
April 11, 1995
Maurice L. Quinn Properties, Inc.,
Northbrook, Illinois
Greater Rome Bank,
Rome, Georgia
Security Bancorp, Inc.,
Canton, Georgia
Progressive Bancorporation, Inc.,
Houma, Louisiana
STABA Bancshares, Inc.,
Donaldsonville, Louisiana
Jacksonville Savings Bank,
Jacksonville, Illinois
Wemple State Bank,
Waverly, Illinois
TC Bankshares, Inc.,
North Little Rock, Arkansas
St. Louis
April 5, 1995
Atlanta
March 29, 1995
Atlanta
April 19, 1995
Atlanta
March 31, 1995
Atlanta
April 6, 1995
St. Louis
March 31, 1995
St. Louis
March 29, 1995
St. Louis
April 10, 1995
Minneapolis
April 12, 1995
Chicago
April 13, 1995
Kansas City
March 20, 1995
Kansas City
April 11, 1995
St. Louis
April 3, 1995
Atlanta
April 14, 1995
San Francisco
April 18, 1995
Valrico Bancorp, Inc.,
Valrico, Florida
Westamerica Bancorporation,
San Rafael, California
Norwest Bank Grand Forks, N.A.,
Grand Forks, North Dakota
Bank of Sugar Grove,
Sugar Grove, Illinois
Bank of Belton,
Belton, Missouri
United Nebraska Financial Company,
Grand Island, Nebraska
HDJ Turner Company, d/b/a Potosi
Abstract Co.,
Potosi, Missouri
Valrico State Bank,
Valrico, Florida
North Bay Bancorp,
Novato, California
624
Federal Reserve Bulletin • June 1995
Section 4
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Barnett Banks, Inc.,
Jacksonville, Florida
Capital Bancorporation, Inc.,
Cape Girardeau, Missouri
Barnett Dealer Financial Services, Inc.,
Jacksonville, Florida
Home Federal Savings and Loan
Association,
Jonesboro, Arkansas
To engage de novo in acquiring and
holding credit card receivables
Chemical Mellon Shareholder Services,
Ridgefield Park, New Jersey
ITT Business Services Corporation,
Clayton, Missouri,
ITT Commercial Finance Corporation,
Hato Rey, Puerto Rico
To engage de novo in the activity of
community development, by making
investments in limited partnerships
which would acquire, construct, or
rehabilitate low- and
moderate-income housing
Chemical Mellon Shareholder Services,
Ridgefield Park, New Jersey
St. Louis Business Development Fund,
St. Louis, Missouri
United Financial Bancorp, Inc.,
Vincennes, Indiana
Deerbank Corporation,
Deerfield, Illinois
Deerfield Federal Savings and Loan
Association,
Deerfield, Illinois
Northern Illinois Financial Service
Corporation,
Deerfield, Illinois
First National Bank of Parker,
Parker, Colorado
To engage de novo in the making,
acquiring or servicing of loans or
other extensions of credit
Fidelity Federal Savings Bank,
Dalton, Georgia
To engage de novo in the nonbanking
activity of making and servicing
loans
Brinson Holdings, Inc.,
Chicago, Illinois
To engage de novo in making and
servicing loans
Atlanta
April 10, 1995
St. Louis
April 14, 1995
St. Louis
March 31, 1995
New York
April 18, 1995
New York
April 18, 1995
Richmond
April 17, 1995
Cleveland
April 18, 1995
St. Louis
April 7, 1995
St. Louis
April 13, 1995
Chicago
April 5, 1995
Minneapolis
March 31, 1995
San Francisco
April 18, 1995
Atlanta
March 17, 1995
Chicago
March 29, 1995
New York
March 28, 1995
Chicago
April 7, 1995
Cass Commercial Corporation,
St. Louis, Missouri
Chemical Banking Corporation,
New York, New York
Deutsche Bank AG,
Frankfurt, Federal Republic of
Germany
First Maryland Bancorp,
Baltimore, Maryland
Allied Irish Banks, p.l.c.,
Dublin, Ireland
Mellon Bank Corporation,
Pittsburgh, Pennsylvania
Mercantile Bancorporation Inc.,
St. Louis, Missouri
National City Bancshares, Inc.,
Evansville, Indiana
NBD Bancorp, Inc.,
Detroit, Michigan
NBD Illinois, Inc.,
Mount Prospect, Illinois
Norwest Corporation,
Minneapolis, Minnesota
Professional Bancorp,
Santa Monica, California
Regions Financial Corporation,
Birmingham, Alabama
Sidell Bancorp, Inc.,
Sidell, Illinois
Swiss Bank Corporation,
Basel, Switzerland
Union Bancorporation,
Defiance, Iowa
Legal Developments
625
Sections 3 and 4
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
First National Bancorp,
Gainesville, Georgia
FF Bancorp, Inc.,
New Smyrna Beach, Florida
Key Bancshares, Inc.,
Tampa, Florida
The Key Bank of Florida,
Tampa, Florida
First Federal Savings Bank of New
Smyrna,
New Smyrna Beach, Florida
First Federal Savings Bank of Citrus
County,
Inverness, Florida
First State Bancorp of Monticello,
Monticello, Illinois
Atlanta
April 13, 1995
Chicago
March 27, 1995
First State Bancorp of Monticello,
Inc. Employee Stock Option
Plan,
Monticello, Illinois
APPLICATIONS APPROVED UNDER BANK MERGER ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available
upon request to the Reserve Banks.
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Community Bank and Trust,
Neosho, Missouri
Fifth Third Bank of Central
Indiana,
Indianapolis, Indiana
Merchants Bank,
Vicksburg, Mississippi
State Bank of Seneca,
Seneca, Missouri
Fifth Third Bank of Southeastern
Indiana,
Greensburg, Indiana
Bank of Edwards,
Edwards, Mississippi
Kansas City
April 14, 1995
Chicago
March 30, 1995
Atlanta
March 31, 1995
626
Federal Reserve Bulletin • June 1995
PENDING CASES INVOLVING THE BOARD OF
GOVERNORS
This list of pending cases does not include suits
against the Federal Reserve Banks in which the Board
of Governors is not named a party.
Money Station, Inc. v. Board of Governors, No. 95-1182
(D.C. Cir., filed March 30, 1995). Petition for review of a
Board order dated March 1, 1995, approving notices by
Bank One Corporation, Columbus, Ohio; CoreStates Financial Corp., Philadelphia, Pennsylvania; PNC Bank
Corp., Pittsburgh, Pennsylvania; and KeyCorp, Cleveland, Ohio, to acquire certain data processing assets of
National City Corporation, Cleveland, Ohio, through a
joint venture subsidiary.
Jones v. Board of Governors, No. 95-1142 (D.C. Cir., filed
March 3, 1995). Petition for review of a Board order
dated February 2, 1995, approving the applications by
First Commerce Corporation, New Orleans, Louisiana, to
merge with City Bancorp, Inc., New Iberia, Louisiana,
and First Bankshares, Inc., Slidell, Louisiana. Petitioner
filed a motion for injunctive relief on April 3, 1995. On
April 17, 1995, the Board filed its opposition to the
motion.
In re Subpoena Duces Tecum, No. 95-5034 (D.C. Cir., filed
January 26, 1995). Appeal of partial denial of plaintiff's
motion to compel production of examination and other
supervisory material in connection with a shareholder
derivative action against a bank holding company.
Kuntz v. Board of Governors, No. 95-3044 (6th Cir., filed
January 12, 1995). Petition for review of a Board order
dated December 19, 1994, approving an application by
KeyCorp, Cleveland, Ohio, to acquire BANKVERMONT
Corp., Burlington, Vermont. On February 10, 1995, the
Board filed its motion to dismiss.
Zemel v. Board of Governors, No. 95-5007 (D.C. Cir., filed
December 30, 1994). Appeal of district court's dismissal
of Age Discrimination in Employment Act case.
In re Subpoena Duces Tecum, Misc. No. 95-06 (D.D.C.,
filed January 6, 1995). Action to enforce subpoena seeking pre-decisional supervisory documents sought in connection with an action by Bank of New England Corporation's trustee in bankruptcy against the Federal Deposit
Insurance Corporation. The Board filed its opposition on
January 20, 1995.
Cavallari v. Board of Governors, No. 94-4183 (2d Cir.,
filed October 17, 1994). Petition for review of Board
order of prohibition against a former outside counsel to a
national bank (80 Federal Reserve Bulletin 1046 (1994)).
The case was consolidated with a petition for review of
orders of the Comptroller of the Currency imposing a
civil money penalty and cease and desist order against
petitioner (Cavallari v. OCC, No. 94-4151). Oral argument was heard on March 23, 1995.
In re Subpoena Duces Tecum, No. 94-MS-214 (D. D.C.,
filed June 27, 1994). Subpoena enforcement case in
which the plaintiff in a securities fraud class action seeks
examination reports and internal Board memos. On February 1, 1995, the court granted the plaintiff's motion to
compel, subject to the Board's right to claim privilege
with respect to the documents sought.
Beckman v. Greenspan, No. CV 94-41-BCG-RWA
(D. Mont., filed April 13, 1994). Action against Board
and others seeking damages for alleged violations of
constitutional and common law rights. The Board's motion to dismiss was filed May 19, 1994.
Board of Governors v. Ghaith. R. Pharaon, No. 91-CIV6250 (S.D. New York, filed September 17, 1991). Action
to freeze assets of individual pending administrative adjudication of civil money penalty assessment by the Board.
On September 17, 1991, the court issued an order temporarily restraining the transfer or disposition of the individual's assets.
FINAL ENFORCEMENT ORDERS ISSUED BY THE BOARD
OF GOVERNORS
Dane B. Britton
Ellsworth, Kansas
The Federal Reserve Board announced on April 5, 1995,
the issuance of an Order of Prohibition against Dane B.
Britton, a former officer and institution-affiliated party of
the Citizens State Bank and Trust Company, and Britton
Bancshares, Inc., Ellsworth, Kansas.
Steven J. Hirsch
Roberts, Wisconsin
The Federal Reserve Board announced on April 5, 1995,
the issuance of an Order of Assessment of a Civil Money
Penalty against Steven J. Hirsch, the president and a
director of Investors Bancorporation, Inc., Roberts, Wisconsin.
WRITTEN AGREEMENTS APPROVED BY FEDERAL
RESERVE BANKS
Southern Security Bank Corporation, Inc.
Deerfield Beach, Florida
The Federal Reserve Board announced on April 19,
1995, the execution of a Written Agreement between the
Federal Reserve Bank of Atlanta and Southern Security
Bank Corporation, Inc., Deerfield Beach, Florida.
627
Membership of the Board of Governors
of the Federal Reserve System, 1913-95
APPOINTIVE MEMBERS1
Federal Reserve
District
Name
Date of initial
oath of office
Charles S. Hamlin
Boston
Paul M. Warburg
Frederic A. Delano
W.P.G. Harding
Adolph C. Miller
New York
Chicago
Atlanta
San Francisco
Albert Strauss
Henry A. Moehlenpah
Edmund Piatt
New York
Chicago
New York
...Oct. 26, 1918
...Nov. 10, 1919
...June 8, 1920
David C. Wills
John R. Mitchell
Milo D. Campbell
Daniel R. Crissinger
George R. James
Cleveland
Minneapolis
Chicago
Cleveland
St. Louis
...Sept. 29, 1920
...May 12, 1921
...Mar. 14, 1923
...May 1, 1923
...May 14, 1923
Edward H. Cunningham....
Roy A. Young
Eugene Meyer
Wayland W. Magee
Eugene R. Black
M.S. Szymczak
Chicago
Minneapolis
Kansas City
Atlanta
Chicago
do
...Oct. 4, 1927
...Sept. 16, 1930
...May 18, 1931
...May 19, 1933
...June 14, 1933
Kansas City
,....San Francisco
do
...Nov. 15, 1934
J.J. Thomas
Marriner S. Eccles
New York
Joseph A. Broderick
....Cleveland
John K. McKee
....Atlanta
Ronald Ransom
Dallas
Ralph W. Morrison
Chester C. Davis
....Richmond
....New York
Ernest G. Draper
Rudolph M. Evans
....Richmond
James K. Vardaman, Jr. .... ....St. Louis
....Boston
Lawrence Clayton
....Philadelphia
Thomas B. McCabe
....Atlanta
Edward L. Norton
....Minneapolis
Oliver S. Powell
....New York
Wm. McC. Martin, Jr.
Aug. 10, 1914
do
do
do
do
...Feb. 3, 1936
do
do
...Feb. 10, 1936
...June 25, 1936
...Mar. 30, 1938
...Mar. 14, 1942
...Apr. 4, 1946
...Feb. 14, 1947
...Apr. 15, 1948
...Sept. 1, 1950
do
...April 2, 1951
A.L. Mills, Jr.
J.L. Robertson
C. Canby Balderston
Paul E. Miller
Chas. N. Shepardson
G.H. King, Jr
....San Francisco
....Kansas City
....Philadelphia
....Minneapolis
....Dallas
....Atlanta
...Feb. 18, 1952
do
...Aug. 12, 1954
...Aug. 13, 1954
...Mar. 17, 1955
...Mar. 25, 1959
George W. Mitchell
....Chicago
...Aug. 31, 1961
J. Dewey Daane
Sherman J. Maisel
....Richmond
....San Francisco
...Nov. 29, 1963
...Apr. 30, 1965
Other dates and information relating
to membership2
Reappointed in 1916 and 1926. Served until Feb.
3, 1936.3
Term expired Aug. 9, 1918.
Resigned July 21, 1918.
Term expired Aug. 9, 1922.
Reappointed in 1924. Reappointed in 1934 from
the Richmond District. Served until Feb. 3,
1936.3
Resigned Mar. 15, 1920.
Term expired Aug. 9, 1920.
Reappointed in 1928. Resigned
Sept. 14, 1930.
Term expired Mar. 4, 1921.
Resigned May 12, 1923.
Died Mar. 22, 1923.
Resigned Sept. 15, 1927.
Reappointed in 1931. Served until
Feb. 3, 1936.4
Died Nov. 28, 1930.
Resigned Aug. 31, 1930.
Resigned May 10, 1933.
Term expired Jan. 24, 1933.
Resigned Aug. 15, 1934.
Reappointed in 1936 and 1948. Resigned
May 31, 1961.
Served until Feb. 10, 1936.3
Reappointed in 1936, 1940, and 1944. Resigned
July 14, 1951.
Resigned Sept. 30, 1937.
Served until Apr. 4, 1946.3
Reappointed in 1942. Died Dec. 2, 1947.
Resigned July 9, 1936.
Reappointed in 1940. Resigned Apr. 15, 1941.
Served until Sept. 1, 1950.3
Served until Aug. 13, 1954.3
Resigned Nov. 30, 1958.
Died Dec. 4, 1949.
Resigned Mar. 31, 1951.
Resigned Jan. 31, 1952.
Resigned June 30, 1952.
Reappointed in 1956. Term expired
Jan. 31, 1970.
Reappointed in 1958. Resigned Feb. 28, 1965.
Reappointed in 1964. Resigned Apr. 30, 1973.
Served through Feb. 28, 1966.
Died Oct. 21, 1954.
Retired Apr. 30, 1967.
Reappointed in 1960. Resigned
Sept. 18, 1963.
Reappointed in 1962. Served until
Feb. 13, 1976.3
Served until Mar. 8, 1974.3
Served through May 31, 1972.
628
Federal Reserve Bulletin • June 1995
Federal Reserve
District
Name
Date of initial
oath of office
Andrew F. Brimmer
William W. Sherrill
Arthur F. Burns
Philadelphia
Dallas
New York
Mar. 9, 1966
May 1, 1967
Jan. 31, 1970
John E. Sheehan
Jeffrey M. Bucher
Robert C. Holland
Henry C. Wallich
Philip E. Coldwell
Philip C. Jackson, Jr
J. Charles Partee
Stephen S. Gardner
David M. Lilly
G. William Miller
Nancy H. Teeters
Emmett J. Rice
Frederick H. Schultz
Paul A. Volcker
Lyle E. Gramley
Preston Martin
Martha R. Seger
Wayne D. Angell
Manuel H. Johnson
H. Robert Heller
Edward W. Kelley, Jr
Alan Greenspan
John P. LaWare
David W. Mullins, Jr.
Lawrence B. Lindsey
Susan M. Phillips
Alan S. Blinder
Janet L. Yellen
St. Louis
San Francisco
Kansas City
Boston
Dallas
Atlanta
Richmond
Philadelphia
Minneapolis
San Francisco
Chicago
New York
Atlanta
Philadelphia
Kansas City
San Francisco
Chicago
Kansas City
Richmond
San Francisco
Dallas
New York
Boston
St. Louis
Richmond
Chicago
Philadelphia
San Francisco
Jan. 4, 1972
June 5, 1972
June 11, 1973
Mar. 8, 1974
Oct. 29, 1974
July 14, 1975
Jan. 5, 1976
Feb. 13, 1976
June 1, 1976
Mar. 8, 1978
Sept. 18, 1978
June 20, 1979
July 27, 1979
Aug. 6, 1979
May 28, 1980
Mar. 31, 1982
July 2, 1984
Feb. 7, 1986
Feb. 7, 1986
Aug. 19, 1986
May 26, 1987
Aug. 11, 1987
Aug. 15, 1988
May 21, 1990
Nov. 26, 1991
Dec. 2, 1991
June 27, 1994
Aug. 12, 1994
Chairmen4
Charles S. Hamlin
W.P.G. Harding
Daniel R. Crissinger
Roy A. Young
Eugene Meyer
Eugene R. Black
Marriner S. Eccles
Thomas B. McCabe
Wm. McC. Martin, Jr
Arthur F. Burns
G. William Miller
Paul A. Volcker
Alan Greenspan
EX-OFFICIO
Aug. 10, 1914-Aug. 9, 1916
Aug. 10, 1916-Aug. 9, 1922
May 1, 1923-Sept. 15, 1927
Oct. 4, 1927-Aug. 31, 1930
Sept. 16, 1930-May 10, 1933
May 19, 1933-Aug. 15, 1934
Nov. 15, 1934-Jan. 31, 1948
Apr. 15, 1948-Mar. 31, 1951
Apr. 2, 1951-Jan. 31, 1970
Feb. 1, 1970-Jan. 31, 1978
Mar. 8, 1978-Aug. 6, 1979
Aug. 6, 1979-Aug. 11, 1987
Aug. 11, 1987-
Other dates and information relating
to membership2
Resigned Aug. 31, 1974.
Reappointed in 1968. Resigned Nov. 15, 1971.
Term began Feb. 1, 1970.
Resigned Mar. 31, 1978.
Resigned June 1, 1975.
Resigned Jan. 2, 1976.
Resigned May 15, 1976.
Resigned Dec. 15, 1986.
Served through Feb. 29, 1980.
Resigned Nov. 17, 1978.
Served until Feb. 7, 1986.3
Died Nov. 19, 1978.
Resigned Feb. 24, 1978.
Resigned Aug. 6, 1979.
Served through June 27, 1984.
Resigned Dec. 31, 1986.
Served through Feb. 11, 1982.
Resigned August 11, 1987.
Resigned Sept. 1, 1985.
Resigned April 30, 1986.
Resigned March 11, 1991.
Served through Feb. 9, 1994.
Resigned August 3, 1990.
Resigned July 31, 1989.
Reappointed in 1990.
Reappointed in 1992.
Resigned April 30, 1995.
Resigned Feb. 14, 1994.
Vice Chairmen4
Frederic A. Delano
Paul M. Warburg
Albert Strauss
Edmund Piatt
J.J. Thomas
Ronald Ransom
C. Canby Balderston
J.L. Robertson
George W. Mitchell
Stephen S. Gardner
Frederick H. Schultz
Preston Martin
Manuel H. Johnson
David W. Mullins, Jr
Alan S. Blinder
Aug. 10, 1914-Aug. 9, 1916
Aug 10, 1916-Aug. 9, 1918
Oct. 26, 1918-Mar. 15, 1920
July 23, 1920-Sept. 14, 1930
Aug. 21, 1934-Feb. 10, 1936
Aug. 6, 1936-Dec. 2, 1947
Mar. 11, 1955-Feb. 28, 1966
Mar. 1, 1966-Apr. 30, 1973
May 1, 1973-Feb. 13, 1976
Feb. 13, 1976-Nov. 19, 1978
July 27, 1979-Feb. 11, 1982
Mar. 31, 1982-Apr. 30, 1986
Aug. 4, 1986-Aug. 3, 1990
July 24, 1991-Feb. 14, 1994
June 27, 1994-
MEMBERS1
Secretaries of the Treasury
W.G. McAdoo
Dec. 23, 1913-Dec. 15, 1918
Carter Glass
Dec. 16, 1918-Feb. 1, 1920
David F. Houston
Feb. 2, 1920-Mar. 3, 1921
Andrew W. Mellon
Mar. 4, 1921-Feb. 12, 1932
Ogden L. Mills
Feb. 12, 1932-Mar. 4, 1933
William H. Woodin
Mar. 4, 1933-Dec. 31, 1933
Henry Morgenthau Jr.
Jan. 1, 1934-Feb. 1, 1936
1. Under the provisions of the original Federal Reserve Act, the Federal
Reserve Board was composed of seven members, including five appointive
members, the Secretary of the Treasury, who was ex-officio chairman of the
Board, and the Comptroller of the Currency. The original term of office was
ten years, and the five original appointive members had terms of two, four,
six, eight, and ten years respectively. In 1922 the number of appointive
members was increased to six, and in 1933 the term of office was increased to
twelve years. The Banking Act of 1935, approved Aug. 23, 1935, changed
the name of the Federal Reserve Board to the Board of Governors of the
Federal Reserve System and provided that the Board should be composed of
seven appointive members; that the Secretary of the Treasury and the
Comptrollers of the Currency
John Skelton Williams
Feb. 2, 1914-Mar. 2, 1921
Daniel R. Crissinger
Mar. 17, 1921-Apr. 30, 1923
Henry M. Dawes
May 1, 1923-Dec. 17, 1924
Joseph W. Mcintosh
Dec. 20, 1924-Nov. 20, 1928
J.W. Pole
Nov. 21, 1928-Sept. 20, 1932
J.F.T. O'Connor
May 11, 1933-Feb. 1, 1936
Comptroller of the Currency should continue to serve as members until Feb.
1, 1936; that the appointive members in office on the date of that act should
continue to serve until Feb. 1, 1936, or until their successors were appointed
and had qualified; and that thereafter the terms of members should be
fourteen years and that the designation of Chairman and Vice Chairman of
the Board should be for a term of four years.
2. Date after words "Resigned" and "Retired" denotes final day of
service.
3. Successor took office on this date.
4. Chairman and Vice Chairman were designated Governor and Vice
Governor before Aug. 23, 1935.
1
Financial and Business Statistics
CONTENTS
A3
WEEKLY REPORTING
Guide to Tabular
Domestic Financial
Presentation
Statistics
MONEY STOCK AND BANK
A4
A5
A6
A7
CREDIT
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds—Large member banks
INSTRUMENTS
A8 Federal Reserve Bank interest rates
A9 Reserve requirements of depository institutions
A10 Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
A l l Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings
MONETARY AND CREDIT
AGGREGATES
A13 Aggregate reserves of depository institutions
and monetary base
A14 Money stock, liquid assets, and debt measures
A16 Deposit interest rates and amounts outstanding—
commercial and BIF-insured banks
A17 Bank debits and deposit turnover
COMMERCIAL BANKING
INSTITUTIONS
A18 Assets and liabilities, Wednesday figures
BANKS
Assets and liabilities
A21 Large reporting banks
A23 Branches and agencies of foreign banks
FINANCIAL
MARKETS
A24 Commercial paper and bankers dollar
acceptances outstanding
A25 Prime rate charged by banks on short-term
business loans
A26 Interest rates—money and capital markets
A27 Stock market—Selected statistics
FEDERAL
POLICY
COMMERCIAL
FINANCE
A28
A29
A30
A30
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types
and ownership
A31 U.S. government securities
dealers—Transactions
A32 U.S. government securities dealers—Positions
and financing
A3 3 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 New security issues—Tax-exempt state and local
governments and corporations
A35 Open-end investment companies—Net sales
and assets
A35 Corporate profits and their distribution
A35 Nonfarm business expenditures on new
plant and equipment
A36 Domestic finance companies—Assets and
liabilities, and consumer, real estate, and business
credit
2
Federal Reserve Bulletin • June 1995
Domestic Financial
REAL
Statistics—Continued
ESTATE
A37 Mortgage markets
A38 Mortgage debt outstanding
A54 U.S. reserve assets
A54 Foreign official assets held at Federal Reserve
Banks
A55 Selected U.S. liabilities to foreign official
institutions
REPORTED
CONSUMER
INSTALLMENT
CREDIT
A39 Total outstanding
A39 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
Statistics
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A59 Banks' own claims on unaffiliated foreigners
A60 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED
BY NONBANKING
ENTERPRISES
SELECTED
MEASURES
A45 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross domestic product and income
A52 Personal income and saving
International
SUMMARY
Statistics
STATISTICS
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
STATES
A55
A56
A58
A59
FLOW OF FUNDS
A40
A42
A43
A44
BY BANKS
IN THE UNITED
BUSINESS
IN THE UNITED
STATES
A61 Liabilities to unaffiliated foreigners
A62 Claims on unaffiliated foreigners
SECURITIES HOLDINGS
AND
TRANSACTIONS
A63 Foreign transactions in securities
A64 Marketable U.S. Treasury bonds and
notes—Foreign transactions
INTEREST AND EXCHANGE
RATES
A65 Discount rates of foreign central banks
A65 Foreign short-term interest rates
A66 Foreign exchange rates
A67 Guide to Statistical Releases and
Special Tables
3
Guide to Tabular Presentation
SYMBOLS AND
c
e
n.a.
n.e.c.
P
r
*
0
ATS
BIF
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
GENERAL
ABBREVIATIONS
Corrected
Estimated
Not available
Not elsewhere classified
Preliminary
Revised (Notation appears on column heading
when about half of the figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
Calculated to be zero
Cell not applicable
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Federal Savings and Loan Insurance Corporation
Group of Seven
G-10
GNMA
GDP
HUD
IMF
IO
IPCs
IRA
MMDA
MSA
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SAIF
SCO
SDR
SIC
VA
Group of Ten
Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Metropolitan statistical area
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Repurchase agreement
Resolution Trust Corporation
Savings Association Insurance Fund
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Department of Veterans Affairs
INFORMATION
In many of the tables, components do not sum to totals because
of rounding.
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of funds figures also
include not fully guaranteed issues) as well as direct obligations of the Treasury. "State and local government" also includes municipalities, special districts, and other political
subdivisions.
A46 DomesticNonfinancialStatistics • June 1995
1.10
RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted1
1994
1994
1995
1995
Monetary or credit aggregate
Q2
1
2
3
4
Reserves of depository institutions2
Total
Required
Nonborrowed
Monetary base3
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontransaction components
10 InM2 5
11 In M3 only6
Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time7
Large time8,9
Thrift institutions
15 Savings, including MMDAs
16 Small time7
17 Large time8
12
13
14
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
Debt components4
20 Federal
21 Nonfederal
Q3
Q4
Q1
Nov.
Dec.
Jan.
Feb.
Mar.
-3.1
-2.3
-4.2
8.4
-1.9
-1.9
-3.5
7.5
-3.3
-3.0
-2.1
6.9
-3.7
-4.0
-2.4
6.4
-1.9
-6.1
.7
8.5
-1.2
-4.5
-.4
4.1
-4.4
-8.0
-2.9
8.1
-4.2
3.9
-2.6
3.6'
-7.4
-4.5
-7.6
8.6
2.7
1.7
1.3
1.6
4.8
2.4
.9
2.1
1.9
4.7
-1.2
-.4
1.7
3.4
5.5
.0
1.8
4.3
n.a.
n.a.
-.6
.4
1.8
2.4
5.9
.3
1.5r
3.5r
10.4r
4.3
1.0
4.0r
6.4r
7.3r
5.5'
-1.8
-l.C
2.3'
12.2
7.2
.7
2.9
6.0
n.a.
n.a.
1.3
-1.3
.2
8.5
.0
13.1
2.6
17.5
,8r
9.2
2.0r
i4.r
5.4'
18.8'
-.6'
19.7'
3.9
21.9
-3.7
.3
.8
-4.6
9.4
13.1
-8.5
16.0
19.2
-13.1
24.6
10.4
-9.7
15.5
18.7
-10.9
20.4
17.2r
-12.9
24.4
-8.1'
-15.8
27.4
24.7'
-17.5
32.0
15.1
-.4
-5.8
-3.5
-11.5
.2
6.8
-17.6
10.5
12.0
-20.4
20.6
23.8
-21.0 r
17.3r
3.8
-19.9 r
5.3'
7.5
-19.3
20.1'
33.6
-24.6'
30.5'
27.2
-19.4
33.0
35.5
11.9
-15.7
5.7
-4.5
7.5
7.3
8.2
10.0
12.0r
-2.0
17.8r
2.0
9.9r
36.5
-1.2
-38.0
-1.2
57.2
5.4
4.5
3.9
4.9
5.9
5.3
8.5
4.9
1.1
5.4
2.5
6.6'
10.7
5.9
1. Unless otherwise noted, rates of change are calculated from average amounts
outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or "breaks," associated with
regulatory changes in reserve requirements. (See also table 1.20.)
3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters
whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted
difiference between current vault cash and the amount applied to satisfy current reserve
requirements.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government,
and foreign banks and official institutions, less cash items in the process of collection and
Federal Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable
order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository
institutions, credit union share draft accounts, and demand deposits at thrift institutions.
Seasonally adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) overnight (and continuing contract) repurchase agreements (RPs)
issued by all depository institutions and overnight Eurodollars issued to U.S. residents by
foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and small
time deposits (time deposits—including retail RPs—in amounts of less than $100,000),
and (3) balances in both taxable and tax-exempt general-purpose and broker-dealer
money market funds. Excludes individual retirement accounts (IRAs) and Keogh balances
at depository institutions and money market funds. Also excludes all balances held by
US. commercial banks, money market funds (general purpose and broker-dealer), foreign
governments and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this result to
seasonally adjusted Ml.
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of $100,000 or
more) issued by all depository institutions, (2) term Eurodollars held by U.S. residents at
foreign branches of U.S. banks worldwide and at all banking offices in the United
n.a.
n.a.
n.a.
n.a.
Kingdom and Canada, and (3) balances in both taxable and tax-exempt, institution-only
money market funds. Excludes amounts held by depository institutions, the U.S. government, money market funds, and foreign banks and official institutions. Also excluded is
the estimated amount of overnight RPs and Eurodollars held by institution-only money
market funds. Seasonally adjusted M3 is computed by adjusting its non-M2 component as
a whole and then adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury
securities, commercial paper, and bankers acceptances, net of money market fund holdings of these assets. Seasonally adjusted L is computed by summing U.S. savings bonds,
short-term Treasury securities, commercial paper, and bankers acceptances, each seasonally adjusted separately, and then adding this result to M3.
Debt: The debt aggregate is the outstanding credit market debt of the domestic
nonfinancial sectors—the federal sector (U.S. government, not including governmentsponsored enterprises or federally related mortgage pools) and the nonfederal sectors
(state and local governments, households and nonprofit organizations, nonfinancial corporate and nonfarm noncorporate businesses, and farms). Nonfederal debt consists of
mortgages, tax-exempt and corporate bonds, consumer credit, bank loans, commercial
paper, and other loans. The data, which are derived from the Federal Reserve Board's flow
of funds accounts, are break-adjusted (that is, discontinuities in the data have been
smoothed into the series) and month-averaged (that is, the data have been derived by
averaging adjacent month-end levels).
5. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund
balances (general purpose and broker-dealer), (3) savings deposits (including MMDAs),
and (4) small time deposits.
6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. residents,
and (4) money market fund balances (institution-only), less (5) a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by institutiononly money market funds. This sum is seasonally adjusted as a whole.
7. Small time deposits—including retail RPs—are those issued in amounts of less
than $100,000. All IRA and Keogh account balances at commercial banks and thrift
institutions are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more, excluding
those booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and officii institutions.
Money Stock and Bank Credit
1.11
A5
RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1
Millions of dollars
Average of
daily figures
1995
Factor
Average of daily figures for week ending on date indicated
1995
Mar. 8
Mar. 15
Mar. 22
Mar. 29
401,544
402,560
404,383
404,203
406,159
363,465
0
363,898
0
364,415
2,103
364,029
1,558
365,474
1,925
3,522
0
0
3,491
0
0
3,491
61
0
3,491
843
0
3,455
845
0
30
34
0
1,001'
33,186
18
37
0
857
33,646
16
38
0
991
34,126
15
49
0
420
33,830
17
55
0
460
33,751
24
62
0
399
33,975
11,050
8,018
23,101'
11,050
8,018
23,115'
11,050
8,018
23,129
11,050
8,018
23,143
11,051
8,018
23,157
11,053
8,018
23,171
11,053
8,018
23,185
400,509
352
396,554
338
397,265'
343
397,044
341
398,422
346
401,269
349
401,265
353
401,026
358
5,141
197
4,325
393
12,996
22,842
4.789
187
4,368
356
12,691
21,839
5,707
200
4,241
359
12,724
22,217'
5,177
183
4,171
665
12,941
23,218
5,158
177
4,282
393
13,326
22,668
5,175
173
4,371
384
12,850
22,037
6,000
221
4,395
404
12,806
21,001
4,600
184
4,304
385
12,789
24,769
Jan.
Feb.
Mar.
Feb. 15
Feb. 22
404,335
400,034'
404,520
398,954
400,871'
363,467
2,758
361,651
46
364,433
1,560
359,922
0
363,074
0
3,600
440
0
3,542
1
0
3,478
438
0
3,546
0
0
3,546
0
0
111
43
4
727
33,184
23
32
0
651'
34,086
18
51
0
551
33,991
19
32
0
616
34,820
11,050
8,018
23,039r
11,050
8,018
23,106'
11,052
8,018
23,165
399,379'
332
396,657'
339
7,147
198
4,460
333
12,367
22,225
5,753
183
4,349
426
12,705
21,797'
Mar. 1
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities
2
Bought outright—System account
Held under repurchase agreements
3
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
Acceptances
6
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Cutrency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments ..
20
Other
21 Other Federal Reserve liabilities and capital .
22 Reserve balances with Federal Reserve Banks:
Wednesday figures
End-of-month figures
Jan.
Feb.
Mar.
Feb. 15
Feb. 22
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
403,812
405,235'
409,451
404,187
403,554'
402,964
401,864
411,183
404,828
408,235
362,987
2,010
365,631
0
363,707
5,593
366,209
0
365,087
0
364,466
0
361,803
0
363,318
9,018
364,094
1,935
367,394
1,930
3,546
1,320
0
3,491
0
0
3,408
1,105
0
3,546
0
0
3,546
0
0
3,491
0
0
3,491
0
0
3,491
325
0
3,491
900
0
3,408
1,171
0
48
30
0
151
33,722
18
36
0
1,892'
34,167
25
59
0
61
35,493
20
33
0
1,398
32,980
25
38
0
1,555'
33,303
13
42
0
678
34,274
16
40
0
2,725
33,789
18
53
0
1,204
33,757
17
57
0
398
33,935
52
63
0
66
34,150
11,050
8,018
23,073r
11,050
8,018
23,129'
11,053
8,018
23,199
11,050
8,018
23,101'
11,050
8,018
23,115'
11,050
8,018
23,129
11,050
8,018
23,143
11,051
8,018
23,157
11,053
8,018
23,171
11,053
8,018
23,185
396,041r
335
397,745'
340
401,595
361
397,386'
343
398,110'
340
398,166
345
400,421
349
402,328
352
401,812
358
402,345
361
13,964
185
4,810
308
12,854
17,456
6,890
188
4,171
325
13,710
24,062'
4,543
370
4,230
398
14,449
25,776
5,234
166
4,368
386
12,480
25,992
5,660
296
4,241
332
12,570
24,188'
3,461
265
4,171
408
13,278
25,066
5,114
166
4,282
381
12,312
21,051
5,470
165
4,371
413
12,761
27,550
4,413
162
4,395
392
12,581
22,958
4,389
185
4,304
397
12,558
25,954
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities2
Bought outright—System account .
Held under repurchase agreements
Federal agency obligations
Bought outright
Held under repurchase agreements
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account .
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments . .
20
Other
21 Other Federal Reserve liabilities and capital .
22 Reserve balances with Federal Reserve Banks3
1. Amounts of cash held as reserves are shown in table 1.12, line 2.
2. Includes securities loaned—fully guaranteed by U.S. government securities pledged
with Federal Reserve Banks—and excludes securities sold and scheduled to be bought
back under matched sale-purchase transactions.
3. Excludes required clearing balances and adjustments to compensate for float.
A46 DomesticNonfinancialStatistics • June 1995
1.12
RESERVES AND BORROWINGS
Depository Institutions1
Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification
Reserve balances with Reserve Banks2
Total vault cash3
Applied vault cash4
Surplus vault cash5
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowings at Reserve Banks8
Seasonal borrowings
Extended credit9
1993
1994
Dec.
1
2
3
4
5
6
7
8
9
10
1992
1994
Dec.
Dec.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar.
25,368
34,541
31,172
3,370
56,540
55,385
1,155
124
18
1
29,374
36,818
33,484
3,334
62,858
61,795
1,063
82
31
0
24,658
40,365
36,682
3,683
61,340
60,172
1,168
209
100
0
25,157
38,433
34,794
3,639
59,951
58,891
1,060
487
444
0
24,745
38,231
34,745
3,486
59,490
58,686
804
380
339
0
24,715
38,933
35,291
3,642
60,006
58,999
1,008
249
164
0
24,658
40,365
36,682
3,683
61,340
60,172
1,168
209
100
0
22,291
42,29l r
38,230
4,060r
60,521
59,182
1,339
136
46
4
21,758
39,794
35,941
3,854
57,699
56,752
946
59
33
0
22,652
38,517
34,934
3,583
57,586
56,788
799
69
51
0
1995
Biweekly averages of daily figures for two week periods ending on dates indicated
1994
1995
Dec. 7
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks2
Total vault cash3
Applied vault cash4
Surplus vault cash5
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowings at Reserve Banks8
Seasonal borrowings
Extended credit9
Dec. 21
Jan. 4
Jan. 18
Feb. 1
Feb. 15
Mar. 1
Mar. 15
Mar. 29
Apr. 12
24,638
39,936
36,245
3,691
60,883
59,538
1,346
216
112
0
24,288
40,864
37,082
3,782
61,370
60,291
1,080
179
98
0
25,189
39,967
36,429
3,539
61,618
60,451
1,167
246
95
0
23,958
42,165
38,223
3,942
62,181
60,822
1,360
68
38
0
19,603
43,142
38,793
4,349
58,396
57,026
1,370
176
41
10
21,028
41,294
37,274
4,020
58,302
57,329
973
51
31
0
22,710
37,923
34,286
3,637
56,995
56,111
885
60
36
0
22,316
39,317
35,636
3,681
57,952
57,385
566
59
44
0
22,875
37,772
34,278
3,495
57,153
56,075
1,078
79
59
0
23,421
38,432
34,941
3,491
58,361
57,936
425
76
61
0
1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For
ordering address, see inside ftont cover.
2. Excludes required clearing balances and adjustments to compensate for float and
includes other off-balance-sheet "as-of' adjustments.
3. Total "lagged" vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash may be
used to satisfy reserve requirements. The maintenance period for weekly reporters ends
sixteen days after the lagged computation period during which the vault cash is held.
Before Nov. 25, 1992, the maintenance period ended thirty days after the lagged
computation period.
4. All vault cash held during the lagged computation period by "bound" institutions
(that is, those whose required reserves exceed their vault cash) plus the amount of vault
cash applied during the maintenance period by "nonbound" institutions (that is, those
whose vault cash exceeds their required reserves) to satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Also includes adjustment credit.
9. Consists of borrowing at the discount window under the terms and conditions
established for the extended credit program to help depository institutions deal with
sustained liquidity pressures. Because there is not the same need to repay such borrowing
promptly as with traditional short-term adjustment credit, the money market impact of
extended credit is similar to that of nonborrowed reserves.
Money Stock and Bank Credit
1.13
SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
A7
Large Banks1
Millions of dollars, averages of daily figures
1995, week ending Monday
Source and maturity
Jan. 30
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 and federal
agency securities
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
Feb. 6
Feb. 13
Feb. 20
Feb. 27
Mar. 6
Mar. 13
Mar. 20
Mar. 27
73,540
15,165
74,373
15,394
71,099
14,544
74,506
14,022
69,701
14,853
72,625
15,823
74,398
16,308
69,882
16,714
68,115
17,463
15,016
20,508
20,317
20,479
19,630
23,904
21,042
22,603
18,988
24,916
18,601
25,283
18,407
28,095
18,882
29,647
21,227
29,805
20,598
36,400r
23,508
33,747
22,125
35,697
22,527
33,721
21,324
34,532
21,213
32,729
21,790
33,540
27,744
34,323
27,267
35,356
38,572
18,616
39,335
17,323
37,966
18,202
38,545
18,293
37,337
18,981
37,718
18,979
36,792
18,752
36,743
17,898
37,187
18,557
68,464
24,888
69,137
27,851
64,408
28,860
67,736
29,856
65,706
28,604
66,526
28,920
63,537
25,916
65,881
27,201
60,591
27,888
MEMO
Federal funds loans and resale agreements in immediately
available funds in maturities of one day or under
continuing contract
9 To commercial banks in the United States
10 To all other specified customers2
1. Banks with assets of $4 billion or more as of Dec. 31, 1988.
Data in this table also appear in the Board's H.5 (507) weekly statistical release. For
ordering address, see inside front cover.
2. Brokers and nonbank dealers in securities, other depository institutions, foreign
banks and official institutions, and U.S. government agencies,
A46 DomesticNonfinancialStatistics • June 1995
1.14
FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit
Federal Reserve
Bank
Seasonal credit
On
4/28/95
On
4/28/95
Boston
New York....
Philadelphia..
Cleveland
Richmond.. ..
Atlanta
Previous rate
On
4/28/95
Previous rate
2/1/95
2/1/95
2/2/95
2/9/95
2/1/95
2/2/95
Chicago
St. Louis
Minneapolis..
Kansas City ..
Dallas
San Francisco.
Extended credit
2/1/95
2/1/95
2/2/95
2/1/95
2/2/95
2/1/95
Range of rates for adjustment credit in recent years
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
9
20
May 11
12
July 3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5
6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5
1979—July 20
Aug. 17
20
Sept. 19
10
10-10.5
10.5
10.5-11
11
In effect Dec. 31, 1977
1978—Jan.
21
Oct.
8
10
11-12
1980—Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
12-13
13
12-13
12
8
1981—May 5
12
11-12
11
10-11
10
11
12
12-13
13
13-14
14
10
10.5
10.5
Range (or
level)—
All F.R.
Banks
1981—Nov. 2
6
Dec. 4
13-14
13
12
1982—July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
11.5-12
11.5
11-11.5
11
10.5
10-10.5
10
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5
11.5
11.5
11
11
10.5
10
10
9.5
9.5
9
9
9
8.5
8.5
9
13
Nov. 21
26
Dec. 24
8.5-9
9
8.5-9
8.5
8
9
9
8.5
8.5
8
1985—May 20
24
7.5-8
7.5
7.5
7.5
1986—Mar. 7
10
Apr. 21
23.
July 11
Aug. 21
22
7-7.5
7
6.5-7
6.5
6
5.5-6
5.5
7
7
6.5
6.5
6
5.5
5.5
13
13
12
Effective date
11
12
12
13
13
13
12
11
11
10
10
11
12
13
13
14
14
1984—Apr.
Range (or
level}—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1987—Sept. 4
11
5.5-6
6
6
6
1988—Aug. 9
11
6-6.5
6.5
6.5
6.5
1989—Feb. 24
27
6.5-7
7
7
7
1990—Dec. 19
1991—Feb.
Apr.
May
Sept.
Nov.
11
1. Available on a short-term basis to help depository institutions meet temporary needs
for funds that cannot be met through reasonable alternative sources. The highest rate
established for loans to depository institutions may be charged on adjustment credit loans
of unusual size that result from a major operating problem at the borrower's facility.
2. Available to help relatively small depository institutions meet regular seasonal needs
for funds that arise from a clear pattern of intrayearly movements in their deposits and
loans and that cannot be met through special industry lenders. The discount rate on
seasonal credit takes into account rates charged by market sources of funds and ordinarily
is reestablished on the first business day of each two-week reserve maintenance period;
however, it is never less than the discount rate applicable to adjustment credit.
3. May be made available to depository institutions when similar assistance is not
reasonably available from other sources, including special industry lenders. Such credit
may be provided when exceptional circumstances (including sustained deposit drains,
impaired access to money market funds, or sudden deterioration in loan repayment
performance) or practices involve only a particular institution, or to meet the needs of
institutions experiencing difficulties adjusting to changing market conditions over a longer
period (particularly at times of deposit disintermediation). The discount rate applicable to
adjustment credit ordinarily is charged on extended-credit loans outstanding less than
F.R.
Bank
of
N.Y.
Dec.
1992—July
6.5
6.5
1
4
30
2
13
17
6
7
20
24
6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5
6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5
2
7
3-3.5
3
3
3
3-3.5
3.5
3.5-4
4
4—4.75
4.75
3.5
3.5
4
4
4.75
4.75
4.75-5.25
5.25
5.25
5.25
5.25
5.25
1994—May 17
18
Aug. 16
18
Nov. 15
17
1995—Feb.
1
9
In effect Apr. 28, 1995
thirty days; however, at the discretion of the Federal Reserve Bank, this time period may
be shortened. Beyond this initial period, a flexible rate somewhat above rates charged on
market sources of funds is charged. The rate ordinarily is reestablished on the first
business day of each two-week reserve maintenance period, but it is never less than the
discount rate applicable to adjustment credit plus 50 basis points.
4. For earlier data, see the following publications of the Board of Governors: Banking
and Monetary Statistics, 1914-1941, and 1941-1970', and the Annual Statistical Digest,
1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustmentcredit borrowings by institutions with deposits of $500 million or more that had borrowed
in successive weeks or in more than four weeks in a calendar quarter. A 3 percent
surcharge was in effect from Mar. 17, 1980, through May 7, 1980. A surcharge of 2
percent was reimposed on Nov. 17, 1980; the surcharge was subsequently raised to 3
percent on Dec. 5,1980, and to 4 percent on May 5,1981. The surcharge was reduced to 3
percent effective Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1,
1981, the formula for applying the surcharge was changed from a calendar quarter to a
moving thirteen-week period. The surcharge was eliminated on Nov. 17, 1981.
Policy Instruments
1.15
A9
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Type of deposit
Net transaction accounts3
1 $0 million-$54.0 million..
2 More than $54.0 million4 .
12/20/94
12/20/94
3
Nonpersonal time deposits5
12/27/90
4
Eurocurrency liabilities 6 ...
12/27/90
1. Required reserves must be held in the form of deposits with Federal Reserve
Banks or vault cash. Nonmember institutions may maintain reserve balances with a
Federal Reserve Bank indirectly, on a pass-through basis, with certain approved
institutions. For previous reserve requirements, see earlier editions of the Annual
Report or the Federal Reserve Bulletin. Under provisions of the Monetary Control Act
of 1980, depository institutions include commercial banks, mutual savings banks,
savings and loan associations, credit unions, agencies and branches of foreign banks,
and Edge Act corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 requires that $2 million
of reservable liabilities of each depository institution be subject to a zero percent reserve
requirement. The Board is to adjust the amount of reservable liabilities subject to this zero
percent reserve requirement each year for the succeeding calendar year by 80 percent of
the percentage increase in the total reservable liabilities of all depository institutions,
measured on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 20, 1994, the exemption was raised from $4.0 million to
$4.2 million. The exemption applies only to accounts that would be subject to a 3 percent
reserve requirement.
3. Includes all deposits against which the account holder is permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and
telephone and preauthorized transfers for the purpose of making payments to third persons
or others, other than money market deposit accounts (MMDAs) and similar accounts that
permit no more than six preauthorized, automatic, or other transfers per month, of which
no more than three may be checks (accounts subject to such limits are considered savings
deposits).
The Monetary Control Act of 1980 requires that the amount of transaction accounts
against which the 3 percent reserve requirement applies be modified annually by 80
percent of the percentage change in transaction accounts held by all depository institutions, determined as of June 30 of each year. Effective Dec. 20, 1994, the amount was
increased from $51.9 million to $54.0 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on
Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that
report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1 x/l years was reduced from 3 percent to
1 '/S 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 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'/i years was reduced from 3 percent to
zero on Jan. 17, 1991.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to
zero in the same manner and on the same dates as was the reserve requirement on
nonpersonal time deposits with an original maturity of less than 1 x/i years (see note 5).
A46
DomesticNonfinancialStatistics • June 1995
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1994
Type of transaction
and maturity
1992
1993
1995
1994
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
U S . TREASURY SECURITIES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Outright transactions (excluding matched
transactions)
Treasury bills
Gross purchases
Gross sales
Exchanges
Redemptions
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
All maturities
Gross purchases
Gross sales
Redemptions
Matched transactions
25 Gross purchase
26 Gross sales
Repurchase agreements
27 Gross purchases
28 Gross sales
29 Net change in U.S. Treasury securities
14,714
1,628
308,699
1,600
17,717
0
332,229
0
17,484
0
380,327
0
1,610
0
36,281
0
0
0
29,668
0
518
0
29,361
0
6,109
0
36,543
0
444
0
29,883
0
0
0
37,122
0
0
0
31,530
0
1,096
0
36,662
-30,543
0
1,223
0
31,368
-36,582
0
1,238
0
0
-21,444
0
0
0
6,131
-4,089
0
151
0
961
-2,203
0
450
0
460
0
0
0
0
1,790
-5,795
0
125
0
-2,430
1,680
0
0
0
2,835
-3,167
0
0
0
5,872
-4,881
0
13,118
0
-34,478
25,811
10,350
0
-27,140
0
9,168
0
-6,004
17,801
0
0
-5,506
2,889
2,530
0
-837
2,203
0
0
-460
0
200
0
-1,123
4,192
2,208
0
2,430
-1,680
0
0
-2,145
3,167
0
0
-5,115
3,031
2,818
0
-1,915
3,532
4,168
0
0
0
3,818
0
-3,145
2,903
0
0
-549
750
938
0
-125
0
0
0
0
0
0
0
-278
1,603
660
0
0
0
0
0
-690
0
0
0
-757
1,150
2,333
0
-269
1,200
3,457
0
0
0
3,606
0
-918
775
0
0
-76
450
840
0
0
0
0
0
0
0
0
0
-389
0
1,252
0
0
0
0
0
0
0
0
0
0
700
34,079
1,628
1,600
36,915
0
767
35,314
0
2,337
1,610
0
0
4,459
0
0
968
0
979
6,309
0
0
4,689
0
0
0
0
621
0
0
0
1,480,140
1,482,467
1,475,941
1,475,085
1,700,836
1,701,309
169,018
170,356
151,029
151,589
136,556
137,242
148,425
147,858
166,648
166,007
160,465
167,676
178,877
176,232
378,374
386,257
475,447
470,723
309,276
311,898
44,948
41,199
4,975
9,354
17,088
15,613
35,456
32,561
29,406
26,351
32,201
39,756
1,300
3,310
20,642
41,729
29,882
4,022
-479
778
9,771
8,385
-15,387
634
0
0
632
0
0
774
0
0
1,002
0
0
63
0
0
31
0
0
62
0
0
70
0
0
91
0
0
55
14,565
14,486
35,063
34,669
52,696
52,696
8,491
8,109
3,620
4,982
2,868
2,838
8,615
7,360
5,090
5,720
5,243
4,948
25
1,345
-554
-380
-1,002
319
-1,393
-32
1,185
-667
204
-1,375
20,089
41,348
28,880
4,341
-1,872
746
10,956
7,718
-15,183
-741
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase agreements
33 Gross purchases
34 Gross sales
35 Net change in federal agency obligations
36 Total net change in System Open Market Account...
1. Sales, redemptions, and negative figures reduce holdings of the System Open Market
Account; all other figures increase such holdings.
0
0
37
Federal Reserve Banks
1.18
FEDERAL RESERVE BANKS
All
Condition and Federal Reserve Note Statements1
Millions of dollars
Wednesday
1995
Account
Mar. 1
Mar. 8
End of month
1995
Mar. 15
Mar. 22
Mar. 29
Jan. 31
Feb. 28
Mar.
31
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency obligations
7 Bought outright
8 Held under repurchase agreements
11,050
8,018
424
11,050
8,018
421
11,051
8,018
423
11,053
8,018
422
11,053
8,018
415
11,050
8,018
402
11,050
8,018
429
11,053
8,018
434
55
0
0
55
0
0
71
0
0
73
0
0
115
0
0
77
0
0
54
0
0
84
0
0
3,491
0
3,491
0
3,491
325
3,491
900
3,408
1,171
3,546
1,320
3,491
0
3,408
1,105
364,466
361,803
372,336
366,029
369,324
364,997
365,631
369,300
10 Bought outright2
11 Bills
12 Notes
13 Bonds
14 Held under repurchase agreements
364,466
177,946
143,773
42,747
0
361,803
175,284
143,773
42,747
0
363,318
176,798
143,773
42,747
9,018
364,094
177,574
143,773
42,747
1,935
367,394
180,874
143,773
42,747
1,930
362,987
176,467
143,522
42,998
2,010
365,631
179,111
143,773
42,747
0
363,707
177,187
143,773
42,747
5,593
15 Total loans and securities
368,012
365,350
376,223
370,494
374,019
369,940
369,176
373,897
6,594
1,078
7,898
1,079
6,461
1,079
4,831
1,082
4,693
1,081
6,979
1,076
9,161
1,078
3,611
1,080
24,746
8,475
24,064
8,642
23,611
9,076
23,631
9,232
23,657
9,407
22,829
9,833
24,743
8,388
25,286
9,129
428,398
426,523
435,943
428,763
432,342
430,126
432,044
432,508
9 Total U.S. Treasury securities
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies3
19 All other4
20 Total assets
LIABILITIES
375,806
378,048
379,946
379,420
379,936
373,705
375,385
379,191
22 Total deposits
33,757
31,125
38,293
32,285
35,519
37,224
36,469
35,320
23
24
25
26
29,622
3,461
265
408
25,463
5,114
166
381
32,246
5,470
165
413
27,319
4,413
162
392
30,548
4,389
185
397
22,768
13,964
185
308
28,754
6,890
188
325
30,009
4,543
370
398
5,556
4,437
5,038
4,369
4,942
4,780
4,477
4,587
4,330
4,544
6,343
4,423
6,479
4,510
3,549
4,578
419,556
418,580
427,961
420,770
424,328
421,696
422,843
422,638
3,768
3,683
1,390
3,765
3,683
494
3,769
3,683
529
3,775
3,683
535
3,781
3,683
549
3,696
3,683
1,051
3,768
3,683
1,749
3,786
3,683
2,401
428,398
426,523
435,943
428,763
432,342
430,126
432,044
432,508
416,571
418,601
419,363
429,482
429,759
408,118
418,667
429,759
21 Federal Reserve notes
Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
27 Deferred credit items
28 Other liabilities and accrued dividends5
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
MEMO
34 Marketable US. Treasury securities held in custody for
foreign and international accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to Banks)
36 LESS: Held by Federal Reserve Banks
37 Federal Reserve notes, net
38
39
40
41
Collateral held against notes, net
Gold certificate account
Special drawing rights certificate account
Other eligible assets
US. Treasury and agency securities
42 Total collateral
456,702
80,896
375,806
455,720
77,672
378,048
455,014
75,068
379,946
454,434
75,013
379,420
453,497
73,561
379,936
455,470
81,765
373,705
457,095
81,710
375,385
452,980
73,790
379,191
11,050
8,018
0
356,738
11,050
8,018
0
358,979
11,051
8,018
0
360,877
11,053
8,018
0
360,349
11,053
8,018
0
360,864
11,050
8,018
0
354,637
11,050
8,018
0
356,317
11,053
8,018
0
360,119
375,806
378,048
379,946
379,420
379,936
373,705
375,385
379,191
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 US. 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.
A46
1.19
DomesticNonfinancialStatistics • June 1995
FEDERAL RESERVE BANKS
Maturity Distribution of Loan and Security Holding
Millions of dollars
Wednesday
1995
Type of holding and maturity
End of month
1995
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Jan. 31
Feb. 28
Mar. 31
1 Total loans
55
56
71
73
116
77
54
86
2 Within fifteen days1
3 Sixteen days to ninety days
24
31
24
32
36
35
71
2
110
6
67
10
38
16
82
4
9 Total U.S. Treasury securities
364,466
361,803
372,336
366,029
367,396
362,988
365,631
363,707
Within fifteen days1
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
16,420
83,813
114,967
86,731
26,990
35,545
13,369
90,027
109,142
86,731
26,990
35,545
19,311
90,568
113,192
86,731
26,990
35,545
19,703
84,117
112,942
86,731
26,990
35,545
21,375
84,013
112,742
86,730
26,990
35,545
14,385
84,818
112,969
89,373
26,597
34,845
11,471
89,928
113,264
87,864
27,561
35,545
9,764
94,316
111,365
85,728
26,990
35,545
16 Total federal agency obligations
3,491
3,491
3,815
4,391
3,409
3,546
3,491
3,408
17
18
19
20
21
22
0
448
1,143
1,418
457
25
0
814
777
1,418
457
25
408
731
777
1,418
457
25
1,198
516
777
1,418
457
25
216
524
782
1,405
457
25
116
683
847
1,393
482
25
255
448
888
1,418
457
25
215
524
782
1,405
457
25
10
11
12
13
14
15
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
1. Holdings under repurchase agreements are classified as maturing within fifteen days
in accordance with maximum maturity of the agreements.
NOTE. Total acceptances data have been deleted from this table because data are no
longer available.
Monetary and Credit Aggregates
1.20
A13
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1
Billions of dollars, averages of daily figures
1994
Item
1991
Dec.
1992
Dec.
Sept.
Aug.
Total reserves3
Nonborrowed reserves4
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base6
Nov.
Dec.
Jan.
Feb.
Mar.
59.40
59.15
59.15
58.39
416.79
59.34
59.13
59.13
58.17
418.22
59.12
58.99
58.99
57.79
421.05
58.92
58.86
58.86
57.97
422.31
58.56
58.49
58.49
57.76
425.33
Oct.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS2
1
2
3
4
5
1995
1994
Dec.
1993
Dec.
45.54
45.34
45.34
44.56
317.43
54.35
54.23
54.23
53.20
351.12
60.50
60.42
60.42
59.44
386.60
59.34
59.13
59.13
58.17
418.22
59.84
59.37
59.37
58.84
409.24
59.79
59.31
59.31
58.73
411.34
59.50
59.12
59.12
58.69
413.85
Not seasonally adjusted
6
7
8
9
10
Total reserves7
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves8
Monetary base9
46.98
46.78
46.78
46.00
321.07
56.06
55.93
55.93
54.90
354.55
62.37
62.29
62.29
61.31
390.59
61.13
60.92
60.92
59.96
422.51
59.14
58.67
58.67
58.14
409.21
59.73
59.24
59.24
58.67
411.37
59.24
58.86
58.86
58.44
413.15
59.73
59.48
59.48
58.72
417.08
61.13
60.92
60.92
59.96
422.51
60.52
60.38
60.39
59.18
421.84
57.72
57.66
57.66
56.78
419.25
57.62
57.56
57.56
56.83
423.25
55.53
55.34
55.34
54.55
333.61
.98
.19
56.54
56.42
56.42
55.39
360.90
1.16
.12
62.86
62.78
62.78
61.80
397.62
1.06
.08
61.34
61.13
61.13
60.17
427.25
1.17
.21
59.34
58.87
58.87
58.33
414.92
59.95
59.47
59.47
58.89
416.70
1.06
.49
59.49
59.11
59.11
58.69
418.19
.80
.38
60.01
59.76
59.76
59.00
421.90
1.01
.25
61.34
61.13
61.13
60.17
427.25
1.17
.21
60.52
60.39
60.39
59.18
426.31
1.34
.14
57.70
57.64
57.64
56.75
423.57
.95
.06
57.59
57.52
57.52
56.79
427.54
.80
.07
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 10
11
12
13
14
15
16
17
Total reserves11
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base12
Excess reserves13
Borrowings from the Federal Reserve
1. Latest monthly and biweekly figures are available from the Board's H.3 (502)
weekly statistical release. Historical data starting in 1959 and estimates of the impact on
required reserves of changes in reserve requirements are available from the Money and
Reserves Projections Section, Division of Monetary Affairs, Board of Governors of the
Federal Reserve System, Washington, DC 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory changes in reserve requirements. (See also table 1.10)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, break-adjusted total reserves (line 1) less total borrowings of depository institutions from the Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to help depository
institutions deal with sustained liquidity pressures. Because there is not the same need to
repay such borrowing promptly as with traditional short-term adjustment credit, the
money market impact of extended credit is similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters
whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus
excess reserves (line 16).
1.00
.47
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 those weekly reporters whose vault cash exceeds their required
reserves) the break-adjusted difference between current vault cash and the amount applied
to satisfy current reserve requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with
no adjustments to eliminate the effects of discontinuities associated with regulatory
changes in reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1)
total reserves (line 11), plus (2) required clearing balances and adjustments to compensate
for float at Federal Reserve Banks, plus (3) the currency component of the money stock,
plus (4) (for all quarterly reporters on the "Report of Transaction Accounts, Other
Deposits and Vault Cash" and for all those weekly reporters whose vault cash exceeds
their required reserves) the difference between current vault cash and the amount applied
to satisfy current reserve requirements. Since the introduction of contemporaneous reserve
requirements in February 1984, currency and vault cash figures have been measured over
the computation periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
A14
1.21
Domestic Financial Statistics • June 1995
MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1
Billions of dollars, averages of daily figures
1994r
-
Item
1991
Dec.
1992
Dec.
1993
Dec.
1995
1994
Dec.r
Dec.
Jan.
Feb.
Mar.
Seasonally adjusted
1
2
3
4
5
Measures2
Ml
M2
M3
L
Debt
6
7
8
9
Ml components
Currency3
Travelers checks4
Demand deposits5
Other checkable deposits6
897.3
3,457.9
4,176.0
4,990.9
11,171.1
1,024.4
3,515.3
4,182.9
5,061.1
11,706.1
1,128.6
3,583.6
4,242.5
5,150.3
12,335.3
1,147.8
3,614.5
4,303.6
5,287.0
12,965.0
1,147.8
3,614.5
4,303.6
5,287.0
12,965.0
1,148.8
3,626.6
4,326.5
5,319.2
13,024.0
1,147.1
3,623.5
4,334.9
5,373.4
13,102.2
1,147.8
3,632.3
4,356.7
n.a.
n.a.
267.4
7.7
289.5
332.7
292.8
8.1
338.9
384.6
322.1
7.9
383.9
414.7
354.5
8.4
382.0
402.9
354.5
8.4
382.0
402.9
357.7
8.4
383.5
399.3r
358.8
8.4
384.1
395.8r
362.5
8.8
383.4
393.1
2,560.6
718.1
2,490.9
667.6
2,455.0
658.9
2,466.7
689.1
2,466.7
689.1
2,477.7r
699.9 r
2,476.4
711.4 r
2,484.5
724.4
Commercial banks
12 Savings deposits, including MMDAs
13 Small time deposits
14 Large time deposits10, 11
665.6
602.5
333.3
754.7
508.1
286.7
785.8
468.6
271.2
752.3
502.4
298.0
752.3
502.4
298.0
744.2
512.6
296.0r
734.4
524.3
302. l r
723.7
538.3
305.9
Thrift institutions
15 Savings deposits, including MMDAs
16 Small time deposits9
17 Large time deposits 10
375.6
464.1
83.3
428.9
361.1
67.1
429.8
316.5
61.6
391.9
317.2
64.3
391.9
317.2
64.3
385.6r
322.5r
66.1
377.7r
330.7r
67.6
371.6
339.8
69.6
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
374.2
180.0
356.9
200.2
360.1
198.1
389.0
180.8
389.0
180.8
392.2r
186.3
391.8r
180.4
391.4
189.0
2,763.3
8,407.8
3,067.9
8,638.1
3,328.0
9,007.3
3,497.4
9,467.6
3,497.4
9,467.6
3,504.7
9,519.3r
3,536.0
9,566.2
n.a.
n.a.
Nontransaction components
10 In M2 7
11 In M3 8 only
Debt components
20 Federal debt
21 Nonfederal debt
Not seasonally adjusted
22
23
24
25
26
Measures2
Ml
M2
M3
L
Debt
27
28
29
30
Ml components
Currency3
Travelers checks4
Demand deposits5
Other checkable deposits6
916.0
3,472.7
4,189.4
5,015.5
11,168.5
1,046.0
3,533.6
4,201.4
5,090.8
11,708.9
1,153.7
3,606.1
4,266.3
5,184.9
12,327.4
1,173.5
3,638.0
4,329.6
5,324.5
12,956.8
1,173.5
3,638.0
4,329.6
5,324.5
12,956.8
1,158.5
3,633.0*
4,336. l r
5,342.2r
12,998.8'
l,134.2 r
3,609.8
4,323.6r
5,365.1
13,049.2
1,138.0
3,630.3
4,352.6
n.a.
n.a.
269.9
7.4
302.4
336.3
295.0
7.8
354.4
388.9
324.8
7.6
401.8
419.4
357.6
8.1
400.1
407.6
357.6
8.1
400.1
407.6
355.9
8.1
388.8
405.7
357.l r
8.1
375.0
394.0
361.4
8.4
374.2
394.0
2,556.6
716.7
2,487.7
667.7
2,452.4
660.2
2,464.6
691.6
2,464.6
691.6
2,474.6r
703. l r
2,475.6r
713.9"
2,492.3
722.3
Commercial banks
33 Savings deposits, including MMDAs
34 Small time deposits9
35 Large time deposits10' "
664.0
601.9
332.6
752.9
507.8
286.2
784.3
468.2
270.8
751.1
502.0
297.7
751.1
502.0
297.7
739.6
513.1
294.7r
730.0
524.4
300.6r
723.7
538.1
303.9
Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits9
38 Large time deposits10
374.8
463.7
83.1
427.9
360.9
67.0
429.0
316.2
61.5
391.2
316.9
64.3
391.2
316.9
64.3
383.2r
322.8r
65.8
375.4r
330.8r
67.2
371.6
339.7
69.1
Money market mutual funds
39 General purpose and broker-dealer
40 Institution-only
372.2
180.8
355.1
201.7
358.3
200.0
387.1
183.1
387.1
183.1
392.9'
192.4
396.7
188.8
400.3
190.8
Repurchase agreements and Eurodollars
41 Overnight and continuing
42 Term
79.9
132.7
83.2
127.8
96.5
144.1
116.2
159.0
116.2
159.0
123.l r
164.0*
118.4r
170.5r
118.8
171.2
2,765.0
8,403.5
3,069.8
8,639.1
3,329.5
8,997.9
3,499.0
9,457.7
3,499.0
9,457.7
3,499.0
9,499.8r
Nontransaction components
31 In M2 7
32 In M3 8
Debt components
43 Federal debt
44 Nonfederal debt
Footnotes appear on following page.
3,525.1
9,524.1
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 starting in 1959 are available from the Money
and Reserves Projections Section, Division of Monetary Affairs, Board of Governors of
the Federal Reserve System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the US. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government,
and foreign banks and official institutions, less cash items in the process of collection and
Federal Reserve float, and (4), other checkable deposits (OCDs), consisting of negotiable
order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository
institutions, credit union share draft accounts, and demand deposits at thrift institutions.
Seasonally adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) overnight (and continuing contract) repurchase agreements (RPs)
issued by all depository institutions and overnight Eurodollars issued to U.S. residents by
foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and.small
time deposits (time deposits—including retail RPs—in amounts of less than $100,000),
and (3) balances in both taxable and tax-exempt general-purpose and broker-dealer
money market funds. Excludes individual retirement accounts (IRAs) and Keogh balances
at depository institutions and money market funds. Also excludes all balances held by
U.S. commercial banks, money market funds (general purpose and broker-dealer), foreign
governments and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this result to
seasonally adjusted Ml.
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of $100,000 or
more) issued by all depository institutions, (2) term Eurodollars held by U.S. residents at
foreign branches of U.S. bilks worldwide and at all banking offices in the United
Kingdom and Canada, and (3) balances in both taxable and tax-exempt, institution-only
money market funds. Excludes amounts held by depository institutions, the U.S. government, money market funds, and foreign banks and official institutions. Also excluded is
the estimated amount of overnight RPs and Eurodollars held by institution-only money
market funds. Seasonally adjusted M3 is computed by adjusting its non-M2 component as
a whole and then adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury
securities, commercial paper, and bankers acceptances, net of money market fund holdings of these assets. Seasonally adjusted L is computed by summing U.S. savings bonds,
short-term Treasury securities, commercial paper, and bankers acceptances, each seasonally adjusted separately, and then adding this result to M3.
Debt: The debt aggregate is the outstanding credit market debt of the domestic
nonfinancial sectors—the federal sector (U.S. government, not including governmentsponsored enterprises or federally related mortgage pools) and the nonfederal sectors
(state and local governments, households and nonprofit organizations, nonfinancial corporate and nonfarm noncorporate businesses, and farms). Nonfederal debt consists of
mortgages, tax-exempt and corporate bonds, consumer credit, bank loans, commercial
paper, and other loans. The data, which are derived from the Federal Reserve Board's flow
of funds accounts, are break-adjusted (that is, discontinuities in the data have been
smoothed into the series) and month-averaged (that is, the data have been derived by
averaging adjacent month-end levels).
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank
issuers. Travelers checks issued by depository institutions are included in demand
deposits.
5. Demand deposits at commercial banks and foreign-related institutions other than
those owed to depository institutions, the U.S. government, and foreign banks and official
institutions, less cash items in the process of collection and Federal Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions, credit
union share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund
balances (general purpose and broker-dealer), (3) savings deposits (including MMDAs),
and (4) small time deposits.
8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. residents,
and (4) money market fund balances (institution-only), less (5) a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by institutiononly money market funds.
9. Small time deposits—including retail RPs—are those issued in amounts of less
than $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions
are subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more, excluding
those booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
A46
1.22
DomesticNonfinancialStatistics • June 1995
DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING
Commercial and BIF-insured saving banks1
1994
Item
1992
1995
1993
Dec.
Dec.
July
Aug.
Sept.
Oct.
Dec.
Nov.
Jan.
Feb.r
Mar.
Interest rates (annual effective yields)2
INSURED COMMERCIAL B A N K S
1 Negotiable order of withdrawal accounts
2 Savings deposits3
3
4
5
6
7
Interest-bearing time deposits with balances of
less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2 V5 years
More than lV2 years
2.33
2.88
1.86
2.46
1.83
2.57
1.85
2.63
1.87
2.67
1.88
2.72
1.92
2.81
1.96
2.91
1.98
2.98
2.01
3.09
2.00
3.13
2.90
3.37
3.88
4.77
2.65
2.91
3.13
3.55
4.29
3.17
3.44
3.88
4.39
5.14
3.29
3.61
4.11
4.61
5.33
3.36
3.75
4.27
4.80
5.47
3.47
3.93
4.50
5.08
5.77
3.65
4.22
4.85
5.42
6.09
3.81
4.44
5.12
5.74
6.30
3.96
4.67
5.39
6.00
6.47
4.19
4.83
5.57
6.12
6.52
4.23
4.94
5.60
6.12
6.47
2.45
3.20
1.87
2.63
1.89
2.67
1.89
2.74
1.91
2.78
1.88
2.76
1.91
2.83
1.95
2.88
1.99
2.91
2.04
2.95
2.00
2.94
3.13
3.44
3.61
4.02
5.00
2.70
3.02
3.31
3.66
4.62
2.98
3.53
4.02
4.56
5.35
3.03
3.69
4.24
4.83
5.47
3.11
3.87
4.47
5.04
5.64
3.32
4.10
4.80
5.39
5.79
3.51
4.42
5.18
5.70
6.18
3.80
4.89
5.52
6.09
6.43
3.98
5.13
5.75
6.29
6.68
4.17
5.33
5.94
6.37
6.75
4.22
5.38
5.95
6.32
6.68
3.16
BIF-INSURED SAVINGS B A N K S 4
8 Negotiable order of withdrawal accounts
9 Savings deposits3
10
11
12
13
14
Interest-bearing time deposits with balances of
less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2]/i years
More than 2 V2 years
Amounts outstanding (millions of dollars)
INSURED COMMERCIAL B A N K S
15 Negotiable order of withdrawal accounts
16 Savings deposits3
17 Personal
18 Nonpersonal
19
20
21
22
23
Interest-bearing time deposits with balances of
less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2l/2 years
More than 2vi years
24 IRA and Keogh plan deposits
286,541
738,253
578,757
159,496
305,223
766,413
597,838
168,575
290,631
765,751
605,881
159,870
295,320
764,035
600,892
163,143
286,787
755,249
595,175
160,074
294,072
751,183
590,875
160,308
294,282
746,605
584,628
161,977
303,724
734,519
578,459
156,060
291,355
723,295
569,619
153,676
290,188
714,955
564,877
150,078
292,877
713,012
564,743
148,269
38,474
127,831
163,098
152,977
169,708
29,455
110,069
146,565
141,223
181,528
28,659
100,424
152,216
146,875
182,944
27,959
98,085
155,964
150,807
186,490
28,312
96,398
157,253
152,514
190,209
31,447
95,359
158,753
155,111
188,479
31,077
94,692
159,645
158,382
189,741
32,375
95,901
161,831
162,486
190,897
32,154
96,895
163,939
168,515
190,215
31,777
98,248
169,103
176,877
191,383
31,364
96,500
176,093
184,427
194,030
147,350
143,985
142,649
142,617
142,700
142,896
143,075
143,428
143,900
145,040
145,814
10,871
81,786
78,695
3,091
11,151
80,115
77,035
3,079
10,925
77,337
74,064
3,273
11,016
75,108
72,040
3,068
10,769
74,659
71,525
3,134
11,120
73,416
70,215
3,201
11,002
72,622
69,412
3,211
11,317
70,642
67,673
2,969
11,127
71,639
68,760
2,878
10,950
69,982
67,144
2,837
11,301
68,986
66,045
2,941
3,867
17,345
21,780
18,442
18,845
2,793
12,946
17,426
16,546
20,464
2,531
12,511
17,591
16,901
21,573
2,523
12,292
17,593
16,824
21,531
2,402
12,276
17,928
17,287
21,923
2,245
11,987
18,123
17,519
21,624
2,209
11,913
18,509
17,999
21,687
2,166
11,793
18,753
17,842
21,600
2,041
12,084
19,336
20,460
21,888
2,086
11,953
19,979
21,870
22,275
1,971
11,882
20,613
22,916
22,511
21,713
19,356
19,757
19,445
19,532
19,550
19,532
19,325
19,802
20,099
20,231
BIF-INSURED SAVINGS B A N K S 4
25 Negotiable order of withdrawal accounts
26 Savings deposits3
27 Personal
28 Nonpersonal
29
30
31
32
33
Interest-bearing time deposits with balances of
less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vl years
More than 2 x h years
34 IRA and Keogh plan accounts
1. BIF, Bank Insurance Fund. Data in this table also appear in the Board's H.6 (508)
Special Supplementary Table monthly statistical release. For ordering address, see inside
front cover. Estimates are based on data collected by the Federal Reserve System from a
stratified random sample of about 425 commercial banks and 75 savings banks on the last
day of each month. Data are not seasonally adjusted and include IRA and Keogh deposits
and foreign currency-denominated deposits. Data exclude retail repurchase agreements
and deposits held in US. branches and agencies of foreign banks.
2. As of October 31, 1994, interest rate data for NOW accounts and savings deposits
reflect a series break caused by a change in the survey used to collect these data.
3. Includes personal and nonpersonal money market deposits.
4. Includes both mutual and federal savings banks.
Monetary and Credit Aggregates
1.23
A17
BANK DEBITS AND DEPOSIT TURNOVER1
Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates
1995
1994
Bank group, or type of deposit
Aug.
4 Other checkable deposits4
5 Savings deposits (including MMDAs)5
Nov.r
Dec.r
Jan.
Seasonally adjusted
DEBITS
Demand deposits3
1 All insured banks
2 Major New York City banks
3 Other banks
Oct.'
Sept.
313,128.1
165,447.7
147,680.4
334,245.6
171,227.3
163,018.3
367,129.2
191,169.8
175,959.4
380,282.1
195,568.2
184,713.9
368,276.6
186,074.2
182,202.4
352,375.9
179,396.2
172,979.7
369,211.3
186,350.6
182,860.7
371,048.0
187,955.6
183,092.4
365,025.2
183,419.9
181,605.4
3,780.3
3,309.1
3,467.1
3,508.8
3,831.4
3,737.1
3,890.7
3,862.2
3,905.1
3,760.0
3,896.7
3,639.6
4,116.4
3,835.7
4,199.0
4,033.1
4,058.6
3,856.4
825.9
4,795.3
428.7
785.3
4,198.1
423.6
813.0
4,481.6
430.3
842.1
4,608.4
451.5
815.5
4,502.1
444.1
783.6
4,414.6
422.9
826.5
4,544.7
450.7
820.6
4,490.8
446.3
808.6
4,337.8
443.9
14.4
4.7
11.8
4.6
12.8
4.9
12.9
5.0
13.0
4.9
13.0
4.8
13.9
5.1
14.2
5.4
13.8
5.3
DEPOSIT TURNOVER
Demand deposits3
6 All insured banks
7 Major New York City banks
8 Other banks
9 Other checkable deposits4
10 Savings deposits (including MMDAs)5
Not seasonally adjusted
DEBITS
Demand deposits3
11 All insured banks
12 Major New York City banks
13 Other banks
14 Other checkable deposits4
15 Savings deposits (including MMDAs)5
313,344.9
165,595.0
147,749.9
334,354.6
171,283.5
163,071.0
367,218.8
191,226.1
175,992.8
394,394.4
202,845.6
191,548.8
365,063.0
186,161.8
178,901.2
352,548.5
181,406.6
171,141.8
359,229.9
184,656.3
174,573.5
384,218.7
194,120.1
190,098.6
364,000.9
181,602.7
182,398.1
3,783.6
3,310.0
3,467.5
3,509.5
3,827.9
3,734.9
3,861.2
3,873.3
3,960.9
3,716.4
3,797.1
3,472.2
3,845.9
3,640.4
4,365.1
4,244.8
4,406.7
4,031.3
826.1
4,803.5
428.8
785.4
4,197.9
423.8
813.8
4,490.3
430.6
889.5
4,960.2
475.9
811.9
4,539.5
437.8
774.5
4,435.8
413.1
785.9
4,391.6
420.6
814.9
4,343.4
445.4
789.7
4,128.2
437.5
14.4
4.7
11.8
4.6
12.7
4.9
13.0
5.0
13.3
4.9
12.9
4.6
13.0
4.8
14.5
5.7
14.6
5.5
DEPOSIT TURNOVER
Demand deposits3
16 All insured banks
17 Major New York City banks
18 Other banks
19 Other checkable deposits4
20 Savings deposits (including MMDAs)5
1. Historical tables containing revised data for earlier periods can be obtained from the
Publications Section, Division of Support Services, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
Data in this table also appear in the Board's G.6 (406) monthly statistical release. For
ordering address, see inside front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and of states and
political subdivisions.
4. As of January 1994, other checkable deposits (OCDs), previously defined as
automatic transfer to demand deposits (ATSs) and negotiable order of withdrawal (NOW)
accounts, were expanded to include telephone and preauthorized transfer accounts. This
change redefined OCDs for debits data to be consistent with OCDs for deposits data.
5. Money market deposit accounts.
A14
1.26
Domestic Financial Statistics • June 1995
ASSETS AND LIABILITIES OF COMMERCIAL BANKS1
Billions of dollars
Monthly averages
1994r
Account
Mar.
Sept.
Oct.
1995r
Nov.
Dec.
ALL COMMERCIAL
BANKING INSTITUTIONS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Jan.
Feb.
1995
Mar.
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Seasonally adjusted
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other
Interbank loans4
Cash assets5
Other assets6
3,290.6
959.3
731.7
227.6
2,331.4
634.7
985.8
75.1
910.6
440.8
71.2
198.9
165.8
209.2
220.8
3,300.5
952.3
724.2
228.1
2,348.2
641.0
991.1
75.7
915.4
443.7
71.8
200.6
173.0
205.7
222.7
3,319.7
948.3
720.1
228.2
2,371.4
646.3
999.0
76.2
922.8
449.0
73.9
203.3
176.3
208.3
233.4
3,351.6
946.6
721.2
225.4
2,405.0
659.1
1,014.1
76.6
937.4
453.7
72.0
206.2
180.0
218.5
245.1
3,363.7
938.1
716.4
221.7
2,425.6
671.0*
1,021.7
76.9
944.8
454.8
70.8
207.2*
178.8
216.3
251.2'
3,386.2
940.3
704.2
236.1
2,445.9
674.6
1,026.9
76.8
950.1
460.0
73.1
211.3
181.1
208.1
254.4
3,374.2
937.3
706.9
230.4
2,436.9
671.5
1,024.5
76.6
947.8
458.1
70.1
212.8
173.8
204.3
257.1
3,385.8
943.5
708.0
235.5
2,442.3
675.1
1,025.5
76.7
948.8
458.6
71.3
211.8
189.4
222.9
252.0
3,386.6
938.3
701.3
237.0
2,448.3
675.5
1,028.4
76.8
951.5
459.8
74.8
209.9
176.9
203.4
253.4
3,392.7
940.4
699.3
241.1
2,452.3
675.3
1,028.5
77.0
951.5
462.7
75.1
210.7
185.5
200.4
249.1
3,810.7
3,829.6
3,845.4
3,881.0
3,937.9*
3,952.9
3,972Jj
3,952Ji
3,9933
3,963.6
3,970.5
2,517.8
803.6
1,714.2
346.5
1,367.7
579.7
160.5
419.2
209.7
177.9
2,526.8
804.7
1,722.2
353.8
1,368.3
583.7
165.7
418.1
214.6
179.9
2,522.9
796.7
1,726.1
357.7
1,368.4
591.2
170.1
421.1
213.4
180.5
2,528.8
795.8
1,733.0
360.5
1,372.6
607.0
178.0
429.1
225.5
189.6
2,544.1
806.6
1,737.5
364.7
1,372.8
640.1
182.2
457.9
244.9
185.2
2,546.9
802.8
1,744.1
372.0
1,372.1
642.7
179.7
463.0
252.6
189.5*
2,547.6
793.5
1,754.2
378.4
1,375.7
648.5
183.0
465.5
241.4
207.4
2,540.0
787.8
1,752.2
378.3
1,373.9
628.3
172.0
456.4
248.0
207.4
2,570.8
816.4
1,754.3
378.2
1,376.2
652.6
192.3
460.3
245.8
205.0
2,542.5
788.7
1,753.8
378.7
1,375.2
651.5
177.6
473.9
238.5
206.1
2,535.1
778.3
1,756.8
379.2
1,377.6
660.5
191.2
469.3
234.0
207.2
3,3984
27 Total liabilities
28 Residual (assets less liabilities)9
3,281.4
967.4
741.1
226.4
2,313.9
628.3
980.8
74.9
905.9
434.5
69.7
200.6
161.7
203.2
221.3
2,515.9
813.8
1,702.1
333.8
1,368.3
549.7
150.8
398.9
162.6
170.3
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign offices
Other liabilities8
3,176.2
953.1
746.2
206.9
2,223.1
597.2
944.2
73.3
870.9
402.4
84.3
195.0
149.7
217.1
217.2
3,702.9
16 Total assets 7
17
18
19
20
21
22
23
24
25
26
Wednesday figures
3,485.0
3,505.1
3,508.0
3,550.9
3,614.2
3,631.8*
3,644.9
3,623.7
3,674.2
3,6385
3,636.7
304.5
325.6
324.5
337.4
330.1
323.7
321.1*
327.9
329.1
319.0
325.1
333.8
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other
Interbank loans4
Cash assets5
Other assets6
45
46
47
48
49
50
51
52
53
54
55 Totai liabilities
56 Residual (assets less liabilities)
Footnotes appear onfollowingpage.
9
3,291.0
958.1
731.1
227.0
2,332.9
632.6
988.4
75.8
912.6
440.8
71.0
200.0
164.0
209.7
222.6
3,308.9
953.6
725.2
228.5
2,355.3
641.0
995.9
76.1
919.8
443.9
73.5
201.0
174.6
212.2
225.5
3,336.0
943.4
718.9
224.6
2,392.6
647.0
1,005.4
76.2
929.2
453.9
78.9
207.3
187.1
222.1
239.4
3,348.0
940.6
715.0
225.6
2,407.4
655.8
1,012.4
76.6
935.8
458.4
74.5
206.4
186.9
223.9
245.0
3,359.7
936.8
712.0
224.8
2,422.9
669.6*
1,017.8
76.5
941.3
456.0
74.2
205.1*
180.9
212.9*
248.9*
3,386.7
948.0
709.2
238.8
2,438.7
677.8
1,022.0
76.1
945.9
456.6
74.3
207.9
179.3
202.4
249.4
3,380.6
947.8
710.9
236.9
2,432.8
673.5
1,020.2
76.1
944.1
455.1
73.2
210.7
176.2
196.2
253.0
3,390.5
952.1
713.4
238.7
2,438.3
678.4
1,021.2
76.1
945.1
455.4
75.0
208.3
189.5
219.6
247.0
3,383.1
944.3
706.7
237.6
2,438.8
679.1
1,022.3
76.1
946.3
456.3
76.0
205.1
169.8
193.9
246.0
3,387.1
945.9
704.7
241.1
2,441.2
678.9
1,023.7
76.1
947.6
458.6
72.8
207.1
180.5
197.1
245.0
3,8084
3,830.6
3,8645
3,9275
3,946.9
3,945.3*
3,960.7
3,948£
3,9893
3,935.6
3,952.6
2,506.2
801.8
1,704.5
335.0
1,369.4
543.0
148.8
394.3
165.3
169.9
2,514.6
800.9
1,713.7
346.4
1,367.3
589.5
158.6
430.9
204.2
177.6
2,522.4
801.9
1,720.4
351.7
1,368.7
591.5
163.7
427.8
214.4
181.8
2,537.9
810.9
1,727.0
356.9
1,370.1
604.2
174.4
429.9
213.3
185.7
2,561.5
831.4
1,730.1
359.0
1,371.1
619.7
187.1
432.7
230.4
192.8
2,548.0
816.9
1,731.1
361.5
1,369.6
633.4
186.9
446.4
251.6
188.2
2,537.7
794.0
1,743.7
372.2
1,371.5
639.1*
180.9
458.1
249.7
190.3*
2,538.1
781.3
1,756.7
379.6
1,377.1
637.9
179.3
458.5
245.1
206.4
2,537.7
781.1
1,756.6
379.7
1,376.9
626.2
176.2
450.0
243.8
208.4
2,564.3
806.3
1,758.0
380.3
1,377.7
645.7
189.5
456.1
244.2
204.6
2,516.4
760.8
1,755.6
380.3
1,375.3
639.1
169.8
469.3
245.2
203.0
2,521.9
765.2
1,756.7
379.7
1,377.0
639.0
180.5
458.5
251.5
206.4
3,3845
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign offices
Other liabilities8
3,280.3
965.8
743.5
222.2
2,314.5
624.8
982.1
75.2
906.9
435.5
68.4
203.7
158.8
204.6
221.8
3,692.1
44 Total assets 7
3,177.0
960.0
751.5
208.5
2,217.0
600.1
939.8
72.7
867.2
399.5
85.8
191.8
148.4
211.0
213.3
3/185.9
3,510.0
3,541.1
3,6044
3,621.2
3,616.7r
3,6275
3,615.9
3,658£
3,603.6
3,618.7
307.7
322.5
320.6
323.3
323.1
325.7
328.6*
333.2
332.9
330.6
331.9
333.8
Commercial Banking Institutions
1.26
A19
ASSETS AND LIABILITIES OF COMMERCIAL BANKS1—Continued
Billions of dollars
Wednesday figures
Monthly averages
1995r
1994r
Account
Mar.
Sept.
Nov.
Oct.
Dec.
DOMESTICALLY CHARTERED
COMMERCIAL BANKS
Jan.
Feb.
1995
Mar.
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Seasonally adjusted
Assets
57 Bank credit
58
Securities in bank credit
59
U.S. government securities
60
Other securities
Loans and leases in bank credit2
61
6?
63
Real estate
Revolving home equity
64
65
Other
66
67
68
Other
69 Interbank loans4
70
6
71 Other assets
2,836.2
875.9
689.3
186.6
1,960.3
444.8
899.0
73.2
825.7
402.4
55.9
158.2
125.9
191.3
169.9
2,928.0
881.8
681.1
200.6
2,046.2
469.6
938.5
74.9
863.6
434.5
43.6
160.1
138.2
180.8
167.3
2,939.2
875.5
674.5
201.0
2,063.7
473.8
944.2
75.1
869.1
440.8
45.6
159.2
141.2
185.2
165.8
2,947.8
871.2
670.2
200.9
2,076.6
476.8
949.8
75.7
874.1
443.7
46.2
160.2
149.8
181.2
166.4
2,962.1
868.8
668.5
200.3
2,093.4
480.1
957.8
76.2
881.6
449.0
45.7
160.8
153.4
181.3
169.7
2,991.8
864.1
667.4
196.7
2,127.7
491.3
973.5
76.6
896.8
453.7
45.8
163.4
156.8
191.5
175.1
2,994.0
848.1
655.9
192.3
2,145.9
498.3
981.6
76.9
904.7
454.8
46.8
164.4
156.9
190.8
177.0
3,012.2
851.6
645.4
206.2
2,160.7
501.8
987.3
76.8
910.5
460.0
46.2
165.4
158.2
182.3
172.5
3,002.7
849.5
648.3
201.1
2,153.2
499.2
984.8
76.6
908.1
458.1
45.9
165.3
150.9
178.7
173.7
3,013.3
855.1
649.1
205.9
2,158.2
501.9
985.7
76.7
909.0
458.6
46.2
165.9
166.0
196.8
172.9
3,011.9
851.1
644.1
207.0
2,160.8
501.8
988.4
76.8
911.6
459.8
46.5
164.3
156.2
178.1
172.7
3,016.5
850.2
639.8
210.4
2,166.3
503.1
989.6
77.0
912.6
462.7
45.6
165.4
160.0
174.2
167.1
72 Total assets 7
3,266.0
3,357.5
3,374.7
3J8&8
3,409.9
3,458.0
3,461.9
3,4684
3,449.3
3,492.1
3,4623
3,460.8
Liabilities
73 Deposits
74
75
Nontransaction
76
Large time
Other
77
78 Borrowings
79
From banks in the U.S
80
From nonbanks in the U.S
81 Net due to related foreign offices . . . .
82 Other liabilities8
2,375.5
802.9
1,572.7
207.6
1,365.1
448.8
132.9
315.8
13.3
128.7
2,367.8
793.6
1,574.2
209.3
1,364.9
475.5
143.4
332.1
58.9
133.4
2,371.1
794.8
1,576.3
212.7r
1,363.6
483.1
149.4
333.7
65.4
133.5r
2,367.3
787.1
1,580.2
216.7
1,363.5
488.3
153.9
334.4
66.4
133.2
2,369.8
786.0
1,583.8
217.7
1,366.0
501.0
161.9
339.1
77.3
132.8
2,389.1
797.1
1,592.0
225.0
1,367.0
534.6
163.8
370.8
91.4
124.8
2,394.5
793.1
1,601.4
234.1
1,367.3
533.7
160.7
373.0
87.9
126.1
2,392.8
783.3
1,609.5
238.8
1,370.7
531.7
163.4
368.3
85.4
135.9
2,385.7
778.0
1,607.6
238.5
1,369.2
518.1
155.7
362.4
83.0
133.9
2,416.6
806.2
1,610.4
239.6
1,370.8
531.9
169.0
362.9
90.0
134.8
2,388.5
778.9
1,609.7
238.7
1,371.0
535.0
157.8
377.2
87.2
136.0
2,377.9
767.5
1,610.3
238.9
1,371.4
539.7
172.4
367.3
84.2
137.1
83 Total liabilities
2^663
3,035.6
3,053.1r
3,055.1
3,080.9
3,139.9
3,1413
3,145.8
3,120.6
3,1733
3,146.7
3,138.9
321.9
321.6r
333.6
329.1
318.1
319.6
322.6
328.8
318.8
315.6
321.9
84 Residual (assets less liabilities)9
299.7
Not seasonally adjusted
Assets
85 Bank credit
86
Securities in bank credit
87
U.S. government securities
88
Other securities
89
Loans and leases in bank credit2
90
Commercial and industrial
91
Real estate
9?
Revolving home equity
P3
Other
Consumer
94
95
96
Other
97
98
99 Other assets6
2,835.6
881.8
693.7
188.1
1,953.8
447.2
894.6
72.6
822.0
399.5
56.8
155.8
125.6
185.8
167.1
2,928.7
880.6
684.0
196.6
2,048.0
466.5
939.6
75.2
864.4
435.5
43.7
162.7
134.8
181.0
168.7
2,941.2
873.9
673.7
200.3
2,067.3
472.7
946.9
75.8
871.1
440.8
46.1
160.8
138.5
184.9
168.0
2,955.8
871.7
670.0
201.7
2,084.1
476.9
954.4
76.1
878.3
443.9
47.4
161.5
151.6
187.8
168.0
2,969.5
862.3
665.2
197.1
2,107.2
479.8
964.2
76.2
888.0
453.9
46.2
163.1
161.8
194.9
172.0
2,982.7
856.6
659.9
196.7
2,126.1
487.8
971.9
76.6
895.3
458.4
45.2
162.8
162.3
197.4
174.5
2,989.4
847.3
652.7
194.6
2,142.1
497.8
977.6
76.5
901.1
456.0
48.1
162.6
160.0
188.4
174.7
3,011.5
858.3
649.7
208.6
2,153.2
504.5
982.4
76.1
906.3
456.6
46.9
162.8
157.6
177.3
169.4
3,007.1
858.7
652.1
206.6
2,148.5
501.4
980.3
76.1
904.2
455.1
48.0
163.7
155.2
171.6
170.1
3,013.4
862.0
653.5
208.5
2,151.5
504.5
981.2
76.1
905.1
455.4
47.3
163.0
166.8
194.1
169.1
3,007.3
855.7
648.2
207.5
2,151.6
504.9
982.3
76.1
906.2
456.3
47.3
160.8
150.8
169.2
168.6
3,012.5
855.8
645.0
210.8
2,156.7
505.9
985.0
76.1
908.9
458.6
44.7
162.5
155.6
171.0
165.5
100 Total assets 7
3,256.6
3,356.2
3376.1
3,406.6
3,4413
3,460.1
3,455.4
3y458JS
3,447.0
3,486.2
3,438.7
3,447.5
Liabilities
101
10?
103
Large time
104
105
Other
106 Borrowings
From banks in the U.S
107
108
From nonbanks in the U.S
109 Net due to related foreign o f f i c e s . . . .
110 Other liabilities8
2,364.1
791.2
1,572.8
206.7
1,366.1
443.7
131.0
312.7
16.0
129.1
2,365.2
790.1
1,575.1
210.2
1,364.9
484.7
141.0
343.7
55.5
133.1
2,370.3
791.9
1,578.5
213.5
1,365.0
490.8
148.0
342.8
63.2
136.0
2,383.9
801.2
1,582.7
216.9
1,365.8
501.6
157.6
344.0
64.9
137.7
2,402.6
821.4
1,581.2
216.1
1,365.1
512.2
169.3
342.9
74.3
134.0
2,393.4
807.2
1,586.2
222.9
1,363.3
528.8
167.9
360.8
90.2
126.7
2,384.6
784.3
1,600.3
234.4
1,365.9
532.7
162.4
370.2
88.7
125.8
2,381.2
771.6
1,609.6
237.6
1,371.9
522.9
159.8
363.2
90.1
136.3
2,382.5
771.8
1,610.7
238.6
1,372.1
515.4
159.9
355.5
86.3
134.9
2,407.9
796.7
1,611.2
238.7
1,372.5
525.1
165.4
359.6
92.0
135.6
2,359.4
751.4
1,608.1
237.6
1,370.5
524.4
151.2
373.2
92.5
135.4
2,361.4
754.6
1,606.9
236.0
1,370.9
525.6
161.8
363.7
93.8
137.9
111 Total Uabilities
2952.9
3,03&5
3,0604
3,088.1
3,123.1
3,139.1
3,131.7
3,130.5
3,119.1
3,160.6
3,111.8
3,118.7
318.4
318.2
321.0
323.8
328.2
327.9
325.6
327.0
328.8
112 Residual (assets less liabilities)
9
Footnotes appear on following page.
303.7
317.6
r
315.7
A46
DomesticNonfinancialStatistics • June 1995
NOTES TO TABLE 1.26
1. Covers the following types of institutions in the fifty states and the District of
Columbia: domestically chartered commercial banks that submit a weekly report of
condition (large domestic); other domestically chartered commercial banks (small domestic); branches and agencies of foreign banks; New York State investment companies, and
Edge Act and agreement corporations (foreign-related institutions). Excludes international banking facilities. Data are Wednesday values, or pro rata averages of Wednesday
values. Large domestic banks constitute a universe; data for small domestic banks and
foreign-related institutions are estimates based on weekly samples and on quarter-end
condition reports. Data are adjusted for breaks caused by reclassifications of assets and
liabilities.
2. Excludes federal funds sold to, reverse repurchase agreements with, and loans to
commercial banks in the United States.
3. Consists of reserve repurchase agreements with broker-dealers and loans to purchase and carry securities.
4. Consists of federal funds sold to, reverse repurchase agreements with, and loans to
commercial banks in the United States.
5. Includes vault cash, cash items in process of collection, demand balances due from
depository institutions in the United States, balances due from Federal Reserve Banks,
and other cash assets.
6. Excludes the due-from position with related foreign offices, which is included in
lines 25, 53, 81, and 109.
7. Excludes unearned income, reserves for losses on loans and leases, and reserves for
transfer risk. Loans are reported gross of these items.
8. Excludes the due-to position with related foreign offices, which is included in lines
25, 53, 81, and 109.
9. This balancing item is not intended as a measure of equity capital for use in capital
adequacy analysis.
Weekly Reporting Commercial Banks
1.27
A21
ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
1995
Account
Feb. 15r
Feb. l r
Feb. 8r
128,719
300,435
21,059
279,377
95,979
100,979
297,950
20,085
277,865
95,958
121,554
299,156
24,443
274,713
94,963
44,882
75,084
63,431
108,803
2,180
61,339
20,622
5,561
15,061
40,718
45,284
44,870
73,464
63,573
107,356
1,916
61,432
20,576
5,524
15,053
40,855
44,008
71
??
73
?4
75
?6
Non-U. S. addressees
?7
78
Revolving, home equity
79
All other
30 To individuals for personal expenditures
31
To depository and financial institutions
37
Commercial banks in the United States
33
Banks in foreign countries
Nonbank depository and other financial institutions
34
35 For purchasing and carrying securities
36 To finance agricultural production
37 To states and political subdivisions
38 To foreign governments and official institutions
39 All other loans4
40 Lease-financing receivables
41 LESS: Unearned income
4?
Loan and lease reserve5
43 Other loans and leases, net
44 All other assets
114,501
82,849
25,750
5,902
1,179,809
325,673
2,525
323,149
320,987
2,162
465,760
47,173
418,587
239,542
56,405
36,179
2,790
17,436
16,034
6,276
11,248
925
25,539
32,407
1,771
34,428
1,143,611
145,433
45 Total assets6
1,941,503
Feb. 22r
Mar. 15
Mar. 22
Mar. 29
Mar. 1
Mar. 8
122,838
299,190
23,035
276,154
95,911
129,932
295,502
23,281
272,221
94,869
106,190
297,838
25,365
272,473
95,217
125,045
300,048
26,306
273,741
94,371
104,838
295,306
22,061
273,245
93,096
106,016
291,970
19,201
272,769
92,846
44,746
71,620
63,384
107,559
2,059
61,403
20,468
5,454
15,013
40,935
44,098
45,306
71,711
63,226
110,138
1,843
61,060
20,432
5,455
14,977
40,628
47,236
46,023
69,015
62,315
112,120
1,858
60,720
20,311
5,475
14,836
40,408
49,543
46,401
68,507
62,348
121,795
1,812
60,525
20,326
5,557
14,769
40,199
59,458
45,796
71,705
61,869
123,381
1,721
60,317
20,269
5,505
14,764
40,048
61,342
46,598
72,127
61,424
122,865
1,561
60,397
20,307
5,553
14,754
40,090
60,907
45,866
72,397
61,660
125,987
1,462
60,285
20,402
5,606
14,796
39,884
64,240
106,375
73,986
24,406
7,984
1,170,979
325,454
2,437
323,017
320,844
2,173
465,918
47,141
418,777
237,517
54,290
34,617
2,203
17,469
14,815
6,233
11,160
901
22,223
32,468
1,778
34,504
1,134,698
137,121
119,278
83,153
27,875
8,250
1,176,197
327,763
2,254
325,509
323,359
2,150
466,309
47,165
419,144
237,875
54,444
34,684
2,726
17,034
15,031
6,254
11,272
938
23,803
32,509
1,790
34,527
1,139,880
142,344
108,281
73,413
28,211
6,657
1,176,305
328,504
2,224
326,281
324,155
2,126
466,885
47,153
419,732
237,928
53,081
34,045
2,827
16,209
15,149
6,150
11,163
957
23,897
32,591
1,797
34,489
1,140,019
135,708
119,155
79,993
30,870
8,292
1,184,836
332,966
2,109
330,857
328,652
2,205
468,204
46,701
421,502
237,384
54,353
34,685
3,188
16,480
15,547
6,185
11,204
1,091
25,147
32,756
1,670
34,409
1,148,758
140,559
104,567
68,265
27,987
8,315
1,180,286
331,151
2,136
329,015
326,845
2,170
468,119
46,647
421,471
237,066
55,167
35,311
3,156
16,700
14,506
6,155
11,101
1,187
22,965
32,870
1,678
34,541
1,144,068
136,293
115,754
81,113
27,341
7,299
1,181,666
333,523
1,945
331,578
329,392
2,186
468,515
46,652
421,863
236,696
54,157
34,373
3,267
16,517
14,469
6,194
11,121
864
23,189
32,938
1,673
34,583
1,145,409
135,217
103,465
69,309
27,724
6,432
1,180,668
333,426
1,802
331,624
329,348
2,276
468,992
46,630
422,362
237,485
52,507
33,395
2,776
16,336
14,315
6,257
11,050
940
22,673
33,024
1,697
34,513
1,144,458
134,906
103,143
71,282
24,706
7,155
1,187,229
333,347
1,822
331,525
329,258
2,266
470,200
46,637
423,563
238,412
55,606
36,156
2,877
16,573
14,668
6,254
11,124
1,017
23,272
33,327
1,678
34,408
1,151,143
131,797
1,884,479
1,929,772
1,916,174
1,946,025
1,910,752
1,944,853
1,905,836
1,910,056
ASSETS
1 Cash and balances due from depository institutions
? U.S. Treasury and government securities
4
5
6
7
8
9
in
11
i?
n
14
is
16
17
18
19
?n
Mortgage-backed securities
All others, by maturity
One year or less
One year through five years
More than five years
Trading account
Investment account
State and local government, by maturity
One year or less
More than one year
Other bonds, corporate stocks, and securities
Other trading account assets
To commercial banks in the United States
To nonbank brokers and dealers in securities
To others3
Other loans and leases, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
Footnotes appear on the following page.
A46
1.27
DomesticNonfinancialStatistics • June 1995
ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1995
Account
Mar. 8
Mar. 15
Mar. 22
Mar. 29
1,175,713
310,264
259,089
51,175
9,226
3,123
23,734
5,317
899
8,877
128,363
737,086
713,612
23,474
19,151
1,873
2,095
355
1,151,016
284,158
241,524
42,635
7,412
1,720
18,840
5,096
674
8,893
127,383
739,474
715,445
24,029
19,868
1,804
1,949
409
1,173,017
306,997
253,698
53,299
8,485
8,236
21,827
5,278
748
8,726
127,194
738,826
715,269
23,557
19,477
1,869
1,801
410
1,135,696
275,934
232,871
43,062
8,893
1,796
16,744
5,394
645
9,590
124,445
735,317
711,778
23,539
19,477
1,860
1,784
418
1,136,877
279,339
236,380
42,960
7,465
1,775
17,198
5,362
756
10,403
123,798
733,739
710,372
23,367
19,436
1,852
1,661
418
387,819
0
14,633
373,186
198,904r
390,935
0
17,069
373,866
200,672
373,797
0
6,964
366,833
206,469
381,686
0
5,040
376,645
211,855
379,848
0
7,471
372,377
211,731
379,641
0
4,770
374,872
215,161
l,753,086r
l,738,845r
1,767,320
1,731,282
1,766,557
1,727,275
1,731,679
176,686r
177,330r
178,706
179,470
178,296
178,562
178,377
l,584,354r
107,633
578
295
283
23,710
81,515r
l,586,457r
108,525
572
295
277
23,366
86,391r
1,596,936
109,161
572
295
277
23,784
81,260
1,600,911
109,090
570
295
275
23,601
81,929
1,605,362
108,764
568
295
273
23,529
87,174
1,599,599
107,267
567
295
272
23,444
87,535
1,600,891
105,678
566
295
271
23,593
88,935
Feb. 8
Feb. 15
Feb. 22
l,139,063r
279,677r
237,5 lO'
42,168
8,584
1,669
17,584
4,582
710
9,037
127,146
732,240r
709,619r
22,621
18,921
1,815
1,382
503
l,165,941r
304,364
256,362
48,002
9,526
3,274
21,164
5,305
652
8,082
125,907
735,670r
712,808r
22,862
18,900
1,881
1,662
419
l,152,122r
293,097
245,031
48,066
8,896
1,552
21,186
5,422
723
10,287
124,150
734,875r
71 l,451r
23,424
19,438
1,805
1,824
356
401,055
0
26,536
374,518r
195,471r
371,221
0
12,626
358,595
197,509r
391,762
0
10,872
380,890
195,383r
l,764,476r
l,707,793r
177,027'
176,686r
l,584,522r
103,194r
579
295
284
23,497
78,820r
l,574,057r
104,530
576
295
281
23,686
85,594r
Feb. 1
Mar.
1
LIABILITIES
l,167,949r
46 Deposits
310,677
47
Demand deposits
257,513
48
Individuals, partnerships, and corporations
53,164
49
Other holders
10,485
50
States and political subdivisions
3,075
51
U.S. government
23,907
52
Depository institutions in the United States
5,508
53
Banks in foreign countries
824
54
Foreign governments and official institutions
9,366
55
Certified and officers' checks
128,070
56 Transaction balances other than demand deposits
729,203r
57 Nontransaction balances
707,321r
58
Individuals, partnerships, and corporations
21,882
59
Other holders
18,322
60
States and political subdivisions
1,726
61
U.S. government
1,339
62
Depository institutions in the United States
495
63
Foreign governments, official institutions, and banks ..
64 Liabilities for borrowed money5
65 Borrowings from Federal Reserve Banks
66 Treasury tax and loan notes
67 Other liabilities for borrowed money
68 Other liabilities (including subordinated notes and debentures)...
69 Total liabiUties
70 Residual (total assets less total liabilities)7
MEMO
71
72
73
74
75
76
77
Total loans and leases, gross, adjusted, plus securities
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates9
Commercial and industrial
Other
Foreign branch credit extended to U.S. residents
Net owed to related institutions abroad
1. Includes certificates of participation, issued or guaranteed by agencies of the U.S.
government, in pools of residential mortgages.
2. Includes securities purchased under agreements to resell.
3. Includes allocated transfer risk reserve.
4. Includes negotiable order of withdrawal (NOWs) and automatic transfer service
(ATS) accounts, and telephone and preauthorized transfers of savings deposits.
5. Includes borrowings only from other than directly related institutions.
6. Includes federal funds purchased and securities sold under agreements to repurchase.
7. This balancing item is not intended as a measure of equity capital for use in
capital-adequacy analysis.
8. Excludes loans to and federal funds transactions with commercial banks in the
United States.
9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank affiliates
of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank
subsidiaries of the holding company.
10. Credit extended by foreign branches of domestically chartered weekly reporting
banks to nonbank U.S. residents. Consists mainly of commercial and industrial loans, but
includes an unknown amount of credit extended to other than nonfinancial businesses.
Weekly Reporting Commercial Banks
1.28
A23
LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS
Assets and Liabilities
Millions of dollars, Wednesday figures
1995
Account
Feb.
1
Feb.
8
Feb.
15
Feb.
22
Mar.
1
Mar.
8
Mar.
15
Mar.
22
Mar.
29
ASSETS
7,0
21
Cash and balances due from depository
institutions
U.S. Treasury and government agency
securities
Other securities
Federal funds sold1
To commercial banks in the United States
To others2
Other loans and leases, gross
Commercial and industrial
Bankers acceptances and commercial paper .
All other
U.S. addressees
Non-U.S. addressees
Loans secured by real estate
Loans to depository and financial
institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank financial institutions
For purchasing and carrying securities
To foreign governments and official
institutions
All other
Other assets (claims on nonrelated parties)
22
Total assets3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
16,567
15,327
15,283
15,299
14,847
15,327
15,820
15,325
16,251
38,624
13,602
29,097
7,434
21,663
171,511
109,607
3,713
105,895
101,732
4,163
25,350
41,266
13,901
26,119
4,804
21,315
169,919
109,557
3,665
105,892
101,748
4,144
25,290
39,890
14,533
24,767
5,078
19,689
170,173
110,020
3,715
106,305
102,276
4,029
25,256
39,447
13,789
24,944
6,663
18,281
168,574
109,427
3,432
105,995
101,884
4,111
25,130
42,243
14,269
26,442
5,702
20,740
171,226
111,151
3,439
107,712
103,439
4,274
25,041
40,303
14,151
25,507
6,087
19,419
171,500
110,112
3,430
106,682
102,298
4,384
25,048
40,984
14,059
28,188
6,813
21,375
171,997
110,781
3,269
107,511
102,780
4,731
25,039
39,989
13,972
25,741
4,722
21,020
172,612
110,884
3,250
107,634
102,915
4,720
25,057
40,893
14,152
29,425
7,638
21,787
170,847
110,432
3,229
107,203
102,629
4,575
24,275
27,590
5,854
1,992
19,743
4,307
26,457
5,658
1,931
18,867
4,288
26,417
5,527
2,005
18,885
3,971
25,746
5,124
2,039
18,583
3,900
26,041
4,994
2,212
18,835
4,636
27,444
4,820
2,943
19,681
4,190
27,665
4,975
2,214
20,476
4,157
27,734
5,206
2,296
20,232
4,700
26,964
5,332
2,104
19,529
4,511
349
4,308
47,705
374
3,952
48,208
363
4,145
47,806
329
4,042
48,640
446
3,912
51,692
576
4,130
55,220
412
3,943
51,619
416
3,821
51,287
413
4,252
52,828
340,319
336,708
334,614
332,375
345,435
344,795
345,977
343,514
347,116
96,295
4,127
3,359
768
92,169
62,214
29,955
97,044
3,800
3,014
785
93,245
61,924
31,321
95,647
4,024
3,032
992
91,623
60,836
30,787
96,621
4,133
3,114
1,019
92,488
62,557
29,931
95,007
3,870
3,166
705
91,137
62,633
28,504
97,075
3,717
2,937
780
93,357
65,059
28,298
98,251
3,962
3,143
819
94,290
65,202
29,088
98,592
3,815
3,077
738
94,777
65,462
29,316
100,387
4,516
3,325
1,191
95,872
65,335
30,537
75,652
43,331
7,303
36,028
32,321
6,960
25,361
44,116
75,354
41,812
6,848
34,964
33,542
6,169
27,373
45,705
76,834
44,664
8,291
36,373
32,170
6,235
25,936
44,101
71,717
38,776
5,687
33,089
32,941
5,927
27,014
45,656
83,958
47,280
8,878
38,402
36,678
5,828
30,850
48,454
79,963
40,792
6,093
34,699
39,171
5,756
33,415
52,166
87,176
48,299
10,957
37,341
38,878
5,769
33,108
49,049
83,005
43,406
7,286
36,120
39,599
5,930
33,668
48,052
81,277
40,973
7,325
33,648
40,304
6,028
34,276
48,484
340,319
336,708
334,614
332,375
345,435
344,795
345,977
343,514
347,116
239,546
101,043
240,743
96,637
238,758
95,870
234,968
96,699
243,485
93,300
240,553
92,804
243,440
88,190
242,386
89,276
242,348
94,248
LIABILITIES
31
37.
33
34
35
36
37
Deposits or credit balances owed to other
than directly related institutions
Demand deposits4
Individuals, partnerships, and corporations . . . .
Other
Nontransaction accounts
Individuals, partnerships, and corporations . . . .
Other
Borrowings from other than directly
related institutions
Federal funds purchased5
From commercial banks in the United States ..
From others
Other liabilities for borrowed money
To commercial banks in the United States
To others
Other liabilities to nonrelated parties
38
Total liabilities6
23
24
25
76
27
28
29
30
MEMO
39
40
Total loans (gross) and securities, adjusted
Net owed to related institutions abroad
1. Includes securities purchased under agreements to resell.
2. Includes transactions with nonbank brokers and dealers in securities.
3. For U.S. branches and agencies of foreign banks having a net "due from" position,
includes net due from related institutions abroad.
4. Includes other transaction deposits.
5. Includes securities sold under agreements to repurchase.
6. For U.S. branches and agencies of foreign banks having a net "due to" position,
includes net owed to related institutions abroad.
7. Excludes loans to and federal funds transactions with commercial banks in the
United States.
A46
1.32
DomesticNonfinancialStatistics • June 1995
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
Year ending December
1994
1995
Item
1990
1991
1992
1993
1994
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
Financial companies'
Dealer-placed paper1
Total
Bank-related (not seasonally adjusted) 3 ...
Directly placed paper4
Total
Bank-related (not seasonally adjusted) 3 ...
6 Nonfinancial companies5
562,656
528,832
545,619
555,075
595,382
566,502
574,856
588,271
580,510
595,382
612,554
214,706
n.a.
212,999
n.a.
226,456
n.a.
218,947
n.a.
223,038
n.a.
214,718
n.a.
214,300
n.a.
222,019
n.a.
215,733
n.a.
223,038
n.a.
231,318
n.a.
200,036
n.a.
182,463
n.a.
171,605
n.a.
180,389
n.a.
207,701
n.a.
201,047
n.a.
204,595
n.a.
206,264
n.a.
203,584
n.a.
207,701
n.a.
215,423
n.a.
147,914
133,370
147,558
155,739
164,643
150,737
155,961
159,988
161,193
164,643
165,813
Bankers dollar acceptances (not seasonally adjusted)6
7 Total
8
9
10
11
12
By holder
Accepting banks
Own bills
Bills bought from other banks
Federal Reserve Banks7
Foreign correspondents
Others
By basis
13 Imports into United States
14 Exports from United States
15 Allother
54,771
43,770
38,194
32,348
29,835
30,448
31,164
30,413
29,760
29,835
9,017
7,930
1,087
11,017
9,347
1,670
10,555
9,097
1,458
12,421
10,707
1,714
11,783
10,462
1,321
11,543
10,824
719
11,299
10,475
824
11,061
9,931
1,130
11,689
10,548
1,142
11,783
10,462
1,321
918
44,836
1,739
31,014
1,276
26,364
725
19,202
410
17,642
325
18,580
388
19,477
332
19,020
234
17,836
410
17,642
13,095
12,703
28,973
12,843
10,351
20,577
12,209
8,096
17,890
10,217
7,293
14,838
10,062
6,355
13,417
10,486
6,458
13,505
10,985
6,575
13,604
10,674
6,754
12,986
10,272
6,688
12,800
10,062
6,355
13,417
1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales,
personal, and mortgage financing; factoring, finance leasing, and other business lending;
insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.
3. Series were discontinued in January 1989.
4. As reported by financial companies that place their paper directly with investors.
5. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation,
and services.
n.a.
6. Data on bankers dollar acceptances are gathered from approximately 100 institutions. The reporting group is revised every January. Beginning January 1995, data for
Bankers dollar acceptances will be reported annually in September.
7. In 1977 the Federal Reserve discontinued operations in bankers dollar acceptances
for its own account.
Financial Markets
1.33
PRIME RATE CHARGED BY BANKS
A25
Short-Term Business Loans1
Percent per year
2
6.00
1994—Mar.
Apr.
May
Aug.
Nov.
24
19
17
16
15
6.25
6.75
7.25
7.75
8.50
1995—Feb.
1
9.00
1992—July
1992
1993
1994
6.25
6.00
7.15
1992—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec
6.50
6.50
6.50
6.50
6.50
6.50
6.02
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
Average
rate
1994—Jan. .
Feb.
Mar.
Apr.
May
June
July .
Aug.
Sept.
Oct. .
Nov.
Dec.
6.45
6.99
7.25
7.25
7.51
7.75
7.75
8.15
8.50
1995—Jan. .
Feb.
Mar.
Apr.
1993—Jan. .
Feb.
Mar.
Apr.
May
June
July .
Aug.
Sept.
Oct. .
Nov.
Dec.
8.50
9.00
9.00
9.00
6.00
6.00
6.06
6.00
6.00
6.00
6.00
1. The prime rate is one of several base rates that banks use to price short-term
business loans. The table shows the date on which a new rate came to be the predominant
one quoted by a majority of the twenty-five largest banks by asset size, based on the most
Average
rate
Average
rate
Date of change
recent Call Report. Data in this table also appear in the Board's H.15 (519) weekly and
G. 13 (415) monthly statistical releases. For ordering address, see inside front cover.
A46
1.35
DomesticNonfinancialStatistics • June 1995
INTEREST RATES
Money and Capital Markets
Percent per year;figuresare averages of business day data unless otherwise noted
1994
Item
1992
1993
1995
1995, week ending
1994
Dec.
Jan.
Feb.
Mar.
Mar. 3
Mar. 10
Mar. 17
Mar. 24
Mar. 31
MONEY MARKET INSTRUMENTS
1 Federal funds1,2,3
2 Discount window borrowing2,4
3.52
3.25
3.02
3.00
4.21
3.60
5.45
4.75
5.53
4.75
5.92
5.25
5.98
5.25
5.88
5.25
5.93
5.25
5.94
5.25
5.97
5.25
6.06
5.25
3
4
5
Commercial paper3,5,6
1-month
3-month
6-month
3.71
3.75
3.80
3.17
3.22
3.30
4.43
4.66
4.93
6.08
6.26
6.62
5.86
6.22
6.63
6.05
6.15
6.38
6.07
6.15
6.30
6.05
6.13
6.28
6.08
6.19
6.39
6.07
6.15
6.31
6.05
6.14
6.27
6.08
6.15
6.25
6
7
8
Finance paper, directly placed3,5,7
1-month
3-month
6-month
3.62
3.65
3.63
3.12
3.16
3.15
4.33
4.53
4.56
5.93
6.12
6.17
5.76
6.10
6.25
5.95
6.04
6.10
5.95
6.03
6.04
5.93
6.02
6.02
5.95
6.06
6.07
5.95
6.04
6.03
5.96
6.03
6.03
5.96
6.02
6.03
9
10
Bankers acceptances3,5,8
3-month
6-month
3.62
3.67
3.13
3.21
4.56
4.83
6.18
6.53
6.12
6.45
6.05
6.22
6.04
6.14
6.03
6.12
6.08
6.20
6.03
6.12
6.02
6.11
6.05
6.13
11
12
13
Certificates of deposit, secondary market3,9
1-month
3-month
6-month
3.64
3.68
3.76
3.11
3.17
3.28
4.38
4.63
4.96
6.01
6.29
6.78
5.84
6.24
6.71
6.01
6.16
6.44
6.02
6.15
6.34
6.00
6.13
6.33
6.02
6.20
6.41
6.01
6.14
6.33
6.01
6.12
6.31
6.04
6.15
6.34
3.70
3.18
4.63
6.27
6.23
6.14
6.15
6.13
6.20
6.13
6.13
6.16
3.43
3.54
3.71
3.00
3.12
3.29
4.25
4.64
5.02
5.60
6.21
6.67
5.71
6.21
6.59
5.77
6.03
6.28
5.73
5.89
6.03
5.74
5.91
6.07
5.76
5.96
6.14
5.75
5.90
6.00
5.72
5.87
5.97
5.69
5.81
5.98
3.45
3.57
3.75
3.02
3.14
3.33
4.29
4.66
4.98
5.64
6.21
6.75
5.81
6.31
6.86
5.80
6.10
6.59
5.73
5.91
6.16
5.73
5.90
n.a.
5.77
6.00
6.16
5.76
5.92
n.a.
5.76
5.91
n.a.
5.64
5.80
n.a.
3.89
4.77
5.30
6.19
6.63
7.01
n.a.
7.67
3.43
4.05
4.44
5.14
5.54
5.87
6.29
6.59
5.32
5.94
6.27
6.69
6.91
7.09
7.49
7.37
7.14
7.59
7.71
7.78
7.80
7.81
7.99
7.87
7.05
7.51
7.66
7.76
7.79
7.78
7.97
7.85
6.70
7.11
7.25
7.37
7.44
7.47
7.73
7.61
6.43
6.78
6.89
7.05
7.14
7.20
7.57
7.45
6.47
6.83
6.95
7.10
7.21
7.27
7.61
7.49
6.54
6.91
7.04
7.18
7.28
7.35
7.68
7.56
6.39
6.71
6.81
6.95
7.03
7.11
7.48
7.37
6.37
6.71
6.83
7.01
7.10
7.16
7.55
7.43
6.38
6.73
6.84
7.01
7.11
7.15
7.51
7.40
7.52
6.45
7.41
7.97
7.93
7.69
7.52
7.56
7.64
7.44
7.50
7.48
6.09
6.48
6.44
5.38
5.83
5.60
5.77
6.17
6.18
6.62
7.17
6.80
6.55
7.05
6.53
6.05
6.61
6.22
5.92
6.06
6.10
5.98
6.10
6.08
5.95
6.10
6.18
5.93
6.10
6.06
5.82
6.02
6.09
5.90
6.00
6.07
8.55
7.54
8.26
8.73
8.71
8.50
8.35
8.41
8.46
8.27
8.33
8.30
8.14
8.46
8.62
8.98
8.52
7.22
7.40
7.58
7.93
7.46
7.97
8.15
8.28
8.63
8.29
8.46
8.62
8.73
9.10
8.78
8.46
8.60
8.70
9.08
8.75
8.26
8.39
8.48
8.85
8.55
8.12
8.24
8.33
8.70
8.40
8.17
8.29
8.39
8.76
8.52
8.22
8.35
8.44
8.81
8.43
8.04
8.17
8.25
8.62
8.32
8.10
8.22
8.32
8.69
8.35
8.08
8.19
8.28
8.65
8.40
2.99
2.78
2.82
2.91
2.87
2.81
2.76
2.79
2.81
2.76
2.73
2.69
14 Eurodollar deposits, 3-month3,10
18
19
20
U.S. Treasury bills
Secondary market3,5
3-month
6-month
1-year
Auction average3,5,11
3-month
6-month
1-year
21
22
23
24
25
26
27
28
Constant maturities12
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
15
16
17
U.S. TREASURY NOTES AND BONDS
Composite
29 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS
Moody's series13
30
31 Baa
32 Bond Buyer series14
CORPORATE BONDS
33 Seasoned issues, all industries15
Rating group
34
35
36
37
38
Aa
A
Baa
A-rated,recentlyoffered utility bonds16
MEMO
Dividend-price ratio17
39 Common stocks
1. The daily effective federal funds rate is a weighted average of rates on trades
through New York brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday of the
current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year for bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. An average of offering rates on commercial paper placed by several leading dealers
for firms whose bond rating is AA or the equivalent.
7. An average of offering rates on paper directly placed by finance companies.
8. Representative closing yields for acceptances of the highest-rated money center
banks.
9. An average of dealer offering rates on nationally traded certificates of deposit.
10. Bid rates for Eurodollar deposits at 11:00 a.m. London time. Data are for indication
purposes only.
11. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.
12. Yields on actively traded issues adjusted to constant maturities. Source: U.S.
Department of the Treasury.
13. General obligation bonds based on Thursday figures; Moody's Investors Service.
14. State and local government general obligation bonds maturing in twenty years are
used in compiling this index. The twenty-bond index has a rating roughly equivalent to
Moodys' A1 rating. Based on Thursday figures.
15. Daily figures from Moody's Investors Service. Based on yields to maturity on
selected long-term bonds.
16. Compilation of the Federal Reserve. This series is an estimate of the yield on
recently offered, A-rated utility bonds with a thirty-year maturity and five years of call
protection. Weekly data are based on Friday quotations.
17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks
in the price index.
NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and
G. 13 (415) monthly statistical releases. For ordering address, see inside front cover.
Financial Markets
1.36
STOCK MARKET
A27
Selected Statistics
1994
Indicator
1993
1992
1995
1994
July
Aug.
Sept.
Oct.
Nov.
Jan.
Dec.
Feb.
Mar.
Prices and trading volume (averages of daily figures)
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3 Transportation
4
Utility
5 Finance
229.00
284.26
201.02
99.48
179.29
249.71
300.10
242.68
114.55
216.55
254.16
315.32
247.17
104.96
209.75
249.29
307.34
244.21
102.73
210.91
256.08
316.56
244.67
105.61
214.77
257.61
322.19
239.10
102.30
211.90
255.22
321.53
230.71
101.67
203.33
252.48
319.33
227.44
100.07
198.38
248.65
313.92
218.93
100.01
195.25
253.56
319.93
230.25
100.58
201.05
261.86
328.98
237.29
103.87
211.76
266.81
337.96
252.37
102.08
213.29
6 Standard & Poor's Corporation
(1941-43 = 10)'
415.75
451.63
460.42
451.40
464.24
466.96
463.81
461.01
455.19
465.25
481.92
493.20
7 American Stock Exchange
(Aug. 31, 1973 = 50)2
391.28
438.77
449.49
430.10
444.89
456.31
456.25
445.16
427.39
436.09
446.37
456.06
202,558
14,171
263,374
18,188
290,652
17,951
250,382
14,378
277,877
15,874
292,356
18,785
301,327
20,731
297,001
18,465
302,049
18,745
326,652
18,829
333,020
18,424
338,733
17,905
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
Customer financing (millions of dollars, end-of-period balances)
10 Margin credit at broker-dealers 3
43,990
60,310
61,160
61,930
63,070
61,630
62,150
61,000
61,160
64,380
59,800
60,270
8,970
22,510
12,360
27,715
14,095
28,870
12,620
25,790
12,090
24,400
12,415
25,230
12,875
24,180
13,635
25,625
14,095
28,870
13,225
26,440
12,380
25,860
12,745
26,680
4
Free credit balances at brokers
11 Margin accounts'
12 Cash accounts
Margin requirements (percent of market value and effective date)6
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
1. In July 1976 a financial group, composed of banks and insurance companies, was
added to the group of stocks on which the index is based. The index is now based on 400
industrial stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility
(formerly 60), and 40 financial.
2. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting
previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has
included credit extended against stocks, convertible bonds, stocks acquired through the
exercise of subscription rights, corporate bonds, and government securities. Separate
reporting of data for margin stocks, convertible bonds, and subscription issues was
discontinued in April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to
brokers and are subject to withdrawal by customers on demand.
5. Series initiated in June 1984.
6. Margin requirements, stated in regulations adopted by the Board of Governors
pursuant to the Securities Exchange Act of 1934, limit the amount of credit that can be
used to purchase and carry "margin securities" (as defined in the regulations) when such
Jan. 3, 1974
50
50
50
credit is collateralized by securities. Margin requirements on securities other than options
are the difference between the market value (100 percent) and the maximum loan value of
collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, 1934;
Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; and
Regulation X, effective Nov. 1,1971.
On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T
the initial margin required for writing options on securities, setting it at 30 percent of the
current market value of the stock underlying the option. On Sept. 30, 1985, the Board
changed the required initial margin, allowing it to be the same as the option maintenance
margin required by the appropriate exchange or self-regulatory organization; such maintenance margin rules must be approved by the Securities and Exchange Commission.
Effective Jan. 31, 1986, the SEC approved new maintenance margin rules, permitting
margins to be the price of the option plus 15 percent of the market value of the stock
underlying the option.
Effective June 8, 1988, margins were set to be the price of the option plus 20 percent of
the market value of the stock underlying the option (or 15 percent in the case of
stock-index options).
A46
DomesticNonfinancialStatistics • June 1995
1.38
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Fiscal year
Calendar year
Type of account or operation
1994
1992
1993
1995
1994
Oct.
U.S budget1
1 Receipts, total
2
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
Off-budget
6
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.
1,090,453
788,027
302,426
1,380,856
1,128,518
252,339
-290,403
-340,490
50,087
1,153,226
841,292
311,934
1,408,532
1,141,945
266,587
-255,306
-300,653
45,347
1,257,187
922,161
335,026
1,461,067
1,460,557
279,372
-203,370
-259,024
55,654
89,024
65,385
23,639
120,365
95,307
25,059
-31,342
-29,922
-1,420
87,673
62,083
25,590
124,915
99,464
25,452
-37,242
-37,381
138
130,810
103,859
26,951
134,941
123,643
11,297
-4,130
-19,783
15,653
131,801
101,036
30,765
115,172
89,890
25,282
16,628
11,146
5,483
82,544
54,405
28,139
120,536
94,058
26,478
-37,992
-39,653
1,661
92,532
61,971
30,561
142,458
116,508
25,951
-49,927
-54,537
4,610
310,918
-17,305
-3,210
248,594
6,283
429
184,998
16,564
1,808
32,457
-480
-635
40,528
9,366
-12,652
-13,316
476
16,970
13,337
-23,264
-6,701
38,972
14,000
-14,980
13,645
17,747
18,535
58,789
24,586
34,203
52,506
17,289
35,217
35,942
6,848
29,094
36,422
5,164
31,258
27,056
5,348
21,709
26,580
7,161
19,419
49,844
13,964
35,880
35,844
6,890
28,954
18,097
4,543
13,554
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
1. Since 1990, off-budget items have been the social security trust funds (federal
old-age survivors insurance and federal disability insurance) and the U.S. Postal Service.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the
International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets;
accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous
liability (including checks outstanding) and asset accounts; seigniorage; increment on
gold; net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF
loan-valuation adjustment; and profit on sale of gold.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of Receipts
and Outlays of the US. Government, and U.S. Office of Management and Budget, Budget
of the U.S. Government.
Federal Finance A3 3
1.39
U.S. BUDGET RECEIPTS AND OUTLAYS1
Millions of dollars
Calendar year
Fiscal year
1993
Source or type
1993
1995
1994
1994
HI
H2
HI
H2
Jan.
Feb.
Mar.
RECEIPTS
1,153,226
1 AH sources
2 Individual income taxes, net
3 Withheld
Presidential Election Campaign Fund
4
5
Nonwithheld
Refunds
6
Corporation income taxes
7
Gross receipts
Refunds
8
9 Social insurance taxes and contributions, net .. .
10 Employment taxes and contributions
11
Self-employment taxes and contributions
12 Unemployment insurance
13 Other net receipts4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts5
1,257,453
593,212
582,038
652,236
625,557
131,801
82,544
92,532
509,680
430,211
28
154,989
75,546
543,055
459,699
70
160,364
77,077
255,556
209,517
25
113,510
67,468
262,073
228,423
2
41,768
8,115
275,053
225,387
63
118,245
68,642
273,474
240,062
10
42,031
9,207
79,162
49,432
0
29,980
245
33,863
40,643
4
1,061
7,845
26,846
44,561
18
4,284
22,016
131,548
14,027
428,300
396,939
20,604
26,556
4,805
154,205
13,820
461,475
428,810
24,433
28,004
4,661
69,044
7,198
227,177
208,776
16,270
16,074
2,326
68,266
6,514
206,176
192,749
4,335
11,010
2,417
80,536
6,933
248,301
228,714
20,762
17,301
2,284
78,392
7,331
220,141
206,613
4,135
11,177
2,349
5,415
2,157
40,442
26,096
1,279
1,069
372
3,483
1,423
38,653
35,667
1,718
2,630
357
17,238
2,375
39,379
38,646
1,862
320
413
48,057
18,802
12,577
18,273
55,225
20,099
15,225
22,041
23,398
8,860
6,494
9,879
25,994
10,215
6,617
9,227
26,444
9,500
8,197
11,170
30,062
11,042
7,071
13,305
4,555
1,539
1,005
1,839
3,485
1,435
916
2,131
5,143
1,470
1,218
3,612
OUTLAYS
1,408,532
1,461,067
673,915
727,685
710,620
751,642
115,172
120,536
142,458
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture
291,086
16,826
17,030
4,319
20,239
20,443
281,451
17,249
17,602
5,398
20,902
15,131
140,535
6,565
7,996
2,462
8,592
11,872
146,672
10,186
8,880
1,663
11,221
7,516
133,841
5,800
8,502
2,036
9,829r
7,451
141,092
12,056
8,979
2,949
12,373
7,697
18,499
999
1,194
488
1,571
1,049
21,461
1,108
1,374
260
1,374
1,264
26,533
425
1,628
569
1,951
1,195
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
-22,725
35,004
9,051
-4,851
36,835
11,877
-14,537
16,076
4,929
-1,490
19,570
4,288
-5,114
16,754r
4,855r
-2,678
20,489
7,070
-1,469
3,080
1,140
-2,978
2,799
228
-1,853
3,167
971
50,012
44,730
24,080
26,753
19,258r
25,887
4,650
4,078
4,678
29 Health
30 Social security and Medicare
31 Income security
99,415
435,137
207,257
106,495
464,314
213,972
49,882
195,933
107,870
52,958
223,735
102,380
53,195r
232,777
109,080
54,123
236,819
101,743
9,440
39,734
16,326
8,918
39,461
20,583
10,625
43,209
24,708
32
33
34
35
36
35,720
14,955
13,009
198,811
-37,386
37,637
15,283
11,348
202,957
-37,772
16,385
7,482
5,205
99,635
-17,035
19,852
7,400
6,531
99,914
-20,344
16,686
7,718
5,084r
99,844
-17,308
19,757
7,800
7,393
109,435
-20,065
1,996
1,568
-233
19,568
-2,911
3,023
1,099
1,170
18,002
-2,688
4,642
1,488
1,680
19,671
-2,829
18 All types
Veterans benefits and services
Administration of justice
General government
Net interest6
Undistributed offsetting receipts7
1. Functional details do not sum to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year total for
outlays does not correspond to calendar year data because revisions from the Budget have
not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Includes interest received by trust funds.
7. Rents and royalties for the outer continental shelf, U.S. government contributions for
employee retirement, and certain asset sales.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of Receipts
and Outlays of the U.S. Government-, and U.S. Office of Management and Budget, Budget
of the U.S. Government, Fiscal Year 1996.
A46
1.40
DomesticNonfinancialStatistics • June 1995
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1993
1994
1995
Item
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
1 Federal debt outstanding
4,250
4,373
4,436
4,562
4,602
4,673
4,721
4,800
4,864
2 Public debt securities
3
Held by public
4
Held by agencies
4,231
3,188
1,043
4,352
3,252
1,100
4,412
3,295
1,117
4,536
3,382
1,154
4,576
3,434
1,142
4,646
3,443
1,203
4,693
3,480
1,213
n.a.
3,543
1,257
4
20
20
0
21
21
0
25
25
0
27
27
0
26
26
0
28
27
0
29
29
0
27
27
0
4,140
4,256
4,316
4,446
4,491
4,559
4,605
4,711
4,775
4,139
0
4,256
0
4,315
0
4,445
0
4,491
0
4,559
0
4,605
0
4,711
0
4,774
0
4,145
4,370
4,900
4,900
4,900
4,900
4,900
4,900
4,900
5 Agency securities
6
Held by public
Held by agencies
7
8 Debt subject to statutory limit
9 Public debt securities
10 Other debt1
|
|
n.a.
1
•
MEMO
11 Statutory debt limit
1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District of
Columbia stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCES. U.S. Department of the Treasury, Monthly Statement of the Public Debt of
the United States and Treasury Bulletin.
Types and Ownership
Billions of dollars, end of period
1994
Type and holder
1991
1992
1993
1995
1994
Q2
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Nonmarketable1
State and local government series
Foreign issues2
Government
Public
Savings bonds and notes
Government account series3
Non-interest-bearing
By 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 international5
26
Other miscellaneous investors6
Q4
Q1
3,801.7
4,177.0
4,535.7
n.a.
4,645.8
4,692.8
n.a.
n.a.
3,798.9
2,471.6
590.4
1,430.8
435.5
1,327.2
159.7
41.9
41.9
.0
135.9
959.2
2.8
4,173.9
2,754.1
657.7
1,608.9
472.5
1,419.8
153.5
37.4
37.4
.0
155.0
1,043.5
3.1
4,532.3
2,989.5
714.6
1,764.0
495.9
1,542.9
149.5
43.5
43.5
.0
169.4
1,150.0
3.4
4,769.2
3,126.0
733.8
1,867.0
510.3
1,643.1
132.6
42.5
42.5
.0
177.8
1,259.8
31.0
4,642.5
3,051.0
698.5
1,835.7
501.8
1,591.5
143.4
42.2
42.2
.0
174.9
1,200.6
3.3
4,689.5
3,091.6
697.3
1,867.5
511.8
1,597.9
137.4
42.0
42.0
.0
176.4
1,211.7
3.2
4,769.2
3,126.0
733.8
1,867.0
510.3
1,643.1
132.6
42.5
42.5
.0
177.8
1,259.8
31.0
4,860.5
3,227.3
756.5
1,938.2
517.7
1,633.2
122.9
41.8
41.8
.0
178.8
1,259.2
3.6
968.7
281.8
2,563.2
233.4
80.0
168.7
150.8
520.3
1,047.8
302.5
2,839.9
294.0
79.4
197.5
192.5
534.8
1,153.5
334.2
3,047.7
316.0
80.5
216.0
213.0
564.0
1,203.0
357.7
3,088.2
330.7
59.5
244.1
226.3
520.1
1,213.1
355.2
3,127.8
325.0
59.9
250.0
229.3
521.0
1,257.1
374.1
138.1
125.8
491.8
651.3
157.3
131.9
549.7
702.4
171.9
137.9
623.3
725.0
177.1
144.0
632.5
754.0
178.6
148.6
653.8
761.6
1. Includes (not shown separately) securities issued to the Rural Electrification Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
2. Nonmarketable series denominated in dollars, and series denominated in foreign
currency held by foreigners.
3. Held almost entirely by U.S. Treasury and other federal agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust funds are
actual holdings; data for other groups are Treasury estimates.
Q3
n a.
n.a.
5. Consists of investments of foreign balances and international accounts in the United
States.
6. Includes savings and loan associations, nonprofit institutions, credit unions, mutual
savings banks, corporate pension trust funds, dealers and brokers, certain U.S. Treasury
deposit accounts, and federally sponsored agencies.
SOURCES. U.S. Treasury Department, data by type of security, Monthly Statement of the
Public Debt of the United States; data by holder, Treasury Bulletin.
Federal Finance
1.42
U.S. GOVERNMENT SECURITIES DEALERS
A3 3
Transactions1
Millions of dollars, daily averages
1994
1995, week ending
1995
Item
Dec.
Jan.
Feb.
Feb. 1
Feb. 8
Feb. 15
Feb. 22
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
OUTRIGHT TRANSACTIONS 2
By type of security
1 U.S. Treasury bills
Coupon securities, by maturity
2 Five years or less
3 More than five years
4 Federal agency
5 Mortgage-backed
By type of counterparty
With interdealer broker
U.S. Treasury
Federal agency
Mortgage-backed
With other
9
U.S. Treasury
10 Federal agency
11 Mortgage-backed
6
7
8
55,792
61,020
58,060
62,823
64,937
61,124
50,127
54,360
57,737
48,177
43,883
43,982
83,78 l r
34,603r
23,472
24,508
99,720*
40,543r
26,320
27,653
114,440
54,328
25,597
29,731
116,168
48,611
25,757
20,936
108,919
58,840
23,905
40,686
114,586*
59,826*
24,872
36,306
114,990*
45,971*
26,459
21,248
120,038
53,692
27,499
20,623
97,277
43,960
23,122
39,430
93,542
48,317
22,289
33,682
92,597
44,731
21,670
19,799
98,140
43,346
25,784
15,160
100,469
510
8,208
116,796
662
10,543
131,023
964
9,433
134,359
789
8,183
134,701
766
10,912
137,768
988
11,292
119,117
1,198
8,384
132,044
931
6,882
120,017
761
12,172
112,382
895
10,967
106,850
616
6,738
110,635
631
5,825
73,707
22,962
16,300
84,487
25,658
17,111
95,805
24,633
20,299
93,244
24,968
12,753
97,994
23,139
29,774
97,769
23,884
25,013
91,970
25,261
12,864
96,047
26,569
13,741
78,957
22,362
27,258
77,654
21,395
22,715
74,361
21,054
13,061
74,831
25,153
9,335
FUTURES TRANSACTIONS 3
By type of deliverable security
12 U.S. Treasury bills
Coupon securities, by maturity
13 Five years or less
14 More than five years
15 Federal agency
16 Mortgage-backed
1,377
1,096
1,627
1,653
959
1,870
2,022
1,659
3,308
1,904
1,601
716
3,097
10,277
0
0
3,016
11,231
0
0
3,901
14,344
0
0
3,616
12,856
0
0
3,362
12,955
0
0
3,710
15,352
0
0
3,966
13,378
0
0
4,802
16,401
0
0
3,943
14,695
0
0
3,825
16,291
0
0
2,883
14,747
0
0
2,871
12,501
0
0
0
0
0
0
0
0
0
0
0
0
0
3,257r
4,367r
0
669r
3,272
4,616
0
1,154
4,131
4,153
0
890*
3,382r
r
3,722
4,142
0
957
2,986
5,649
0
1,301
2,714
4,536
0
1,248
2,348
3,506
0
732
3,111
4,420
0
711
2,317
3,444
0
651
2,251
4,220
0
688
OPTIONS TRANSACTIONS 4
By type of underlying security
17 U.S. Treasury bills
Coupon securities, by maturity
18 Five years or less
19 More than five years
20 Federal agency
21 Mortgage-backed
0
r
1,526
3,203r
0
551r
1. Transactions are market purchases and sales of securities as reported to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list
of primary dealers. Monthly averages are based on the number of trading days in the
month. Transactions are assumed evenly distributed among the trading days of the report
week. Immediate, forward, and futures transactions are reported at principal value, which
does not include accrued interest; options transactions are reported at the face value of the
underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Outright transactions include immediate and forward transactions. Immediate delivery refers to purchases or sales of securities (other than mortgage-backed federal agency
securities) for which delivery is scheduled in five business days or less and "whenissued" securities that settle on the issue date of offering. Transactions for immediate deliveiy
of mortgage-backed agency securities include purchases and sales for which delivery is scheduled
in thirty business days or less. Stripped securities are reported at market value by maturity of
coupon or corpus.
4,214
0
l,183r
Forward transactions are agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
3. Futures transactions are standardized agreements arranged on an exchange. All
futures transactions are included regardless of time to delivery.
4. Options transactions are purchases or sales of put and call options, whether arranged
on an organized exchange or in the over-the-counter market, and include options on
futures contracts on U.S. Treasury and federal agency securities.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
Major changes in the report form filed by primary dealers induced a break in the dealer
data series as of the week ending July 6, 1994.
A46
1.43
DomesticNonfinancialStatistics • June 1995
Positions and Financing1
U.S. GOVERNMENT SECURITIES DEALERS
Millions of dollars
1994
1995
1995, week ending
Item
Dec.r
Jan.
Feb.
Feb. 1
Feb. 8
Feb. 15
Feb. 22
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Positions2
NET OUTRIGHT POSITIONS 3
By type of security
1 U.S. Treasury bills
Coupon securities, by maturity
2
Five years or less
3
More than five years
4 Federal agency
5 Mortgage-backed
15,134
5,473r
-7,704
-32,181
20,258
32,886
r
- 10,046
—32,608r
19,998r
32,212'
4,561
3,205
1,205
5,957
5,265
6,252
14,838
14,691
7,662
-11,938
-24,446
21,199
32,963
-10,054
-31,447
19,077
33,204
-10,384
-24,482
17,773
33,378
-20,384
-22,832
21,203
32,940
-12,875
-23,909
22,356
31,899
-3,119
-25,747
24,196
33,705
-6,508
-28,178
24,219
33,978
-6,877
-29,981
25,276
32,513
-9,472
-29,126
23,574
31,658
NET FUTURES POSITIONS
6
7
8
9
10
By type of deliverable security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Federal agency
Mortgage-backed
-901
— 1,900r
-5,797
-6,744
-6,059
-6,655
-6,129
-3,945
-7,386
-9,428
-11,898
5,292
857
0
0
3,629
2,312
0
0
1,382
-2,170
0
0
2,432
1,484
0
0
2,419
-3,257 r
0
0
1,396
-3,283
0
0
785
-2,434
0
0
678
94
0
0
502
1,320
0
0
615
2,176
0
0
1,388
-51
0
0
Financing5
Reverse repurchase agreements
11 Overnight and continuing
12 Term
238,704
355,244
240,357
347,704r
245,656
332,428
254,993
338,019r
231,926
368,698
263,908
312,969
234,665
331,875
251,649
312,527
221,724
339,654
236,787
358,199
241,780
382,645
Securities borrowed
13 Overnight and continuing
14 Term
181,747
46,339
180,806r
50,752
178,369
50,906
180,826
47,962
181,229
51,132
178,938
48,770
176,924
52,213
175,644
52,100
171,574
54,938
172,561
56,336
172,159
57,913
3,346
37
3,637
177
3,321
52
3,178
445
3,189
22
3,594
n.a.
3,255
15
3,259
64
3,284
17
3,257
37
3,332
72
Repurchase agreements
17 Overnight and continuing
18 Term
432,366
341,663
441,838r
307,485
473,802
279,666
462,438r
297,051
439,118
321,373
493,818
258,536
466,853
276,465
500,915
256,497
466,453
287,499
492,039
306,140
466,609
346,396
Securities loaned
19 Overnight and continuing
20 Term
5,984
1,328
6,686r
1,524
5,911
1,301
7,555
1,435
6,822
1,993
7,015
1,097
4,303
1,345
5,160
659
4,043
928
4,082
n.a.
3,952
1,402
Securities pledged
21 Overnight and continuing
22 Term
35,928
1,609
33,191
1,684
28,665
2,278
28,746
1,328
29,590
1,429
28,136
2,631
26,807
2,276
30,357
3,016
28,338
2,892
28,351
3,269
28,727
3,391
Collateralized loans
23 Overnight and continuing
24 Term
13,992
n.a.
14,662r
n.a.
15,921
n.a.
14,575r
n.a.
18,160r
n.a.
15,935r
n.a.
17,660
n.a.
11,486
n.a.
14,808
n.a.
13,174
n.a.
15,485
n.a.
MEMO: Matched book6
Securities in
25 Overnight and continuing
26 Term
223,879
326,160
230,535r
321,920r
227,486
304,497
240,169r
313,694r
216,882
338,830
238,935
283,869
219,472
304,848
233,735
286,566
211,523
316,804
233,798
326,727
227,955
354,173
Securities out
27 Overnight and continuing
28 Term
255,965
279,824
278,583r
258,389
285,050
227,576
285,443r
250,859
272,573
267,966
301,655
206,040
271,294
227,764
296,216
201,480
273,465
234,267
291,830
250,048
291,749
287,650
Securities received as pledge
15 Overnight and continuing
16 Term
1. Data for positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list
of primary dealers. Weekly figures are close-of-business Wednesday data. Positions for
calendar days of the report week are assumed to be constant. Monthly averages are based
on the number of calendar days in the month.
2. Securities positions are reported at market value.
3. Net outright positions include immediate and forward positions. Net immediate
positions include securities purchased or sold (other than mortgage-backed agency securities) that have been delivered or are scheduled to be delivered in five business days or less
and "when-issued" securities that settle on the issue date of offering. Net immediate
positions for mortgage-backed agency securities include securities purchased or sold that
have been delivered or are scheduled to be delivered in thirty business days or less.
Forward positions reflect agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
4. Futures positions reflect standardized agreements arranged on an exchange. All
futures positions are included regardless of time to delivery.
5. Overnight financing refers to agreements made on one business day that mature on
the next business day; continuing contracts are agreements that remain in effect for more
than one business day but have no specific maturity and can be terminated without
advance notice by either party; term agreements have a fixed maturity of more than one
business day. Financing data are reported in terms of actual funds paid or received,
including accrued interest.
6. Matched-book data reflect financial intermediation activity in which the borrowing
and lending transactions are matched. Matched-book data are included in the financing
breakdowns given above. The reverse repurchase and repurchase numbers are not always
equal because of the "matching" of securities of different values or different types of
collateralization.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
Major changes in the report form filed by primary dealers induced a break in the dealer
data series as of the week ending July 6, 1994.
Federal Finance
1994
1.44
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A3 3
1995
Debt Outstanding
Millions of dollars, end of period
Agency
1990
1991
1992
1993
Sept.
1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department1
4
Export-Import Bank2'3
Federal Housing Administration4
5
6
Government National Mortgage Association certificates of
participation5
7 Postal Service6
8
Tennessee Valley Authority
United States Railway Association6
9
10 Federally sponsored agencies7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks8
15 Student Loan Marketing Association
16 Financing Corporation10
17 Farm Credit Financial Assistance Corporation
18 Resolution Funding Corporation12
20
21
22
23
24
Lending to federal and federally sponsored agencies
Export-Import Bank3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
Other lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
Dec.
Jan.
442,772
483,970
570,711
684,129
698,792
715,782
741,992
0
42,159
7
11,376
393
41,035
7
9,809
397
41,829
7
7,208
374
45,193
6
5,315
255
42,544
6
3,932
112
39,037
6
3,932
114
39,662
6
3,932
117
39,186
6
3,455
116
39,196
6
3,455
59
0
6,948
23,435
0
0
8,421
22,401
0
0
10,660
23,580
0
0
9,732
29,885
0
0
8,973
29,521
0
0
7,773
27,212
0
0
8,073
27,534
0
0
8,073
27,536
0
0
8,073
27,603
0
392,509
117,895
30,941
123,403
53,590
34,194
8,170
1,261
23,055
401,737
107,543
30,262
133,937
52,199
38,319
8,170
1,261
29,996
442,141
114,733
29,631
166,300
51,910
39,650
8,170
1,261
29,996
525,518
141,577
49,993
201,112
53,123
39,784
8,170
1,261
29,996
641,585
174,414
83,947
239,320
54,333
49,692
8,170
1,261
29,996
659,755
185,894
88,680
242,575
53,609
49,112
8,170
1,261
29,996
676,120
193,920
90,709
247,743
54,800
49,066
8,170
1,261
29,996
702,806
208,881
93,279
257,230
53,175
50,335
8,170
1,261
29,996
0
210,905
95,060
250,467
55,558
0
8,170
1,261
29,996
179,083
185,576
154,994
128,187
109,357
106,935
105,662
103,817
101,157
11,370
6,698
4,850
14,055
0
9,803
8,201
4,820
10,725
0
7,202
10,440
4,790
6,975
0
5,309
9,732
4,760
6,325
0
3,926
8,973
0
3,400
0
3,926
7,773
0
3,200
0
3,926
8,073
0
3,200
0
3,449
8,073
0
3,200
0
3,449
8,073
0
3,200
0
52,324
18,890
70,896
48,534
18,562
84,931
42,979
18,172
64,436
38,619
17,578
45,864
34,129
17,316
41,613
33,869
17,322
40,845
33,719
17,365
39,379
33,719
17,392
37,984
33,669
17,309
35,457
1. Consists of mortgages assumed by the Defense Department between 1957 and 1963
under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the securities
market.
5. Certificates of participation issued before fiscal year 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration,
the Department of Health, Education, and Welfare, the Department of Housing and Urban
Development, the Small Business Administration, and the Veterans' Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes Federal Agricultural Mortgage Corporation, therefore details do not sum to total.
Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is
shown on line 17.
9. Before late 1982, the association obtained financing through the Federal Financing
Bank (FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22.
Nov.
434,668
MEMO
19 Federal Financing Bank debt 13
Oct.
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, whereas the Rural Electrification Administration entry consists of both
agency assets and guaranteed loans.
A46
1.45
DomesticNonfinancialStatistics • June 1995
NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1994
Type of issue or issuer,
or use
1992
1993
1995
1994
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.r
Feb/
Mar.
1 All issues, new and refunding'
226,818
279,945
153,922
12,289
7,903
11,053
11,856
9,513
7,717
7,366
11,844
By type of issue
2 General obligation
3 Revenue
78,611
136,580
90,599
189,346
54,404
99,518
4,219
8,070
2,334
5,569
3,202
7,851
5,781
6,075
2,272
7,241
3,770
3,947
3,725
3,641
5,486
6,358
By type of issuer
4 State
5 Special district or statutory authority2
6 Municipality, county, or township
24,874
138,327
63,617
27,999
178,714
73,232
19,363
87,751
46,808
1,675
7,963
2,651
1,009
4,962
1,932
952
6,511
3,590
1,528
6,148
4,180
151
7,501
1,861
741
4,744
2,232
1,032
4,879
1,455
2,315
6,567
2,962
7 Issues for new capital
101,865
91,434
106,799
10,536
6,195
9,127
9,630
8,447
5,706
5,670
10,538
18,852
14,357
12,164
16,744
6,188
33,560
16,831
9,167
12,014
13,837
6,862
32,723
21,360
10,765
10,230
19,917
9,054
37,250
2,242
1,089
1,108
2,117
1,128
2,852
833
335
454
1,897
403
2,273
1,650
1,380
979
1,887
420
2,811
1,780
621
976
1,535
688
4,030
1,713
304
1,290
2,172
1,085
1,883
1,411
625
538
1,182
384
1,566
1,464
671
249
869
215
2,202
1,666
454
633
2,556
1,011
4,218
SOURCES. Securities Data
Dealer's Digest before then.
Company
beginning
January
8
9
10
11
12
13
By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.
1.46
NEW SECURITY ISSUES
1993;
Investment
U.S. Corporations
Millions of dollars
1994
Type of issue, offering,
or issuer
1992
1993
1995
1994
July
1 All issues'
2 Bonds2
By type of offering
3 Public, domestic
4 Private placement, domestic3
5 Sold abroad
559,827
471,502
754,969
641,498
n a.
n a.
Aug.
Sept.
Oct.
29,818
37,871
29,416
26,159
34,495
r
Nov.
Dec.
Jan.
34,481r
38,811r
22,999
30,979
32,829
25,983
30,909
r
33,286r
20,493
28,000
28,000
r
Feb.
378,058
65,853
27,591
486,879
116,240
38,379
365,05ff
n.a.
56,238r
22,441
n.a.
3,718
30,088
n.a.
4,406
22,736
n.a.
3,248
25,192
n.a.
5,718
21,21%'
n.a.
6,008
17,809
n.a.
2,684
20,000
n.a.
8,000
23,000
n.a.
5,000
82,058
43,111
9,979
48,055
15,394
272,904
88,002
60,293
10,756
56,272
31,950
394,226
31,981
27,900r
4,573
11,713
11,986
333,135r
2,316
997
248
487
429
21,682
2,596
3,570
315
575
345
27,094
2,167
2,112
229
707
526
20,242
2,498
2,204
227
695
279
25,007r
2,49 l r
1,578
239
744
333
27,902
1,508
2,469
269
273
419
15,556
2,000
2,115
0
1,089
911
21,885
4,000
2,600
199
810
991
19,400
12 Stocks2
88,325
113,472
n.a.
3,700r
3,375r
3,424r
3,572
5,525
2,768r
2,979
4,829
By type of offering
13 Public preferred
14 Common
15 Private placement3
21,339
57,118
9,867
18,897
82,657
11,917
12,504
48,317r
625r
3,075
n.a.
710
2,665r
n.a.
555
2,868r
n.a.
713r
2,859r
n.a.
279
5,246
n.a.
178
2,495'
n.a.
505
2,474
n.a.
296
4,532
n.a.
22,723
20,231
2,595
6,532
2,366
33,879
22,271
25,761
2,237
7,050
3,439
52,021
492
701
75
0
0
2,427r
569
838r
50
180
0
1,734r
904
821
154r
78
0
l,466r
745
1,105
79
4
0
1,639
1,963
1,783
76
333
0
1,351
l,203r
848r
0
165
21r
531r
1,086
392
19
209
496
776
1,577
1,415
15
258
0
1,564
6
7
8
9
10
11
16
17
18
19
20
21
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
n.a.
1. Figures represent gross proceeds of issues maturing in more than one year; they are
the principal amount or number of units calculated by multiplying by the offering price.
Figures exclude secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee bonds.
Stock data include ownership securities issued by limited partnerships.
2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCES. Beginning July 1993, Securities Data Company and the Board of Governors
of the Federal Reserve System.
Securities Market and Corporate Finance
1.47
A35
Net Sales and Assets1
OPEN-END INVESTMENT COMPANIES
Millions of dollars
1994
Item
1995
1994
1993
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
1 Sales of own shares 2
851,885
841,286
59,258
64,833
62,263
59,285
56,849
73,183
75,099
64,434
2 Redemptions of own shares
3 Net sales3
567,881
284,004
699,823
141,463
50,275
8,983
53,242
1,592
53,383
8,880
53,743
5,543
55,757
1,092
70,747
2,436
63,737
11,362
55,961
8,573
4 Assets4
1,510,209
1,550,490
1,552,652
1,604,961
1,588,277
1,601,363
1,549,186
1,550,490
1,563,187
1,619,991
5 Cash5
6 Other
100,209
1,409,838
121,296
1,429,195
120,129
1,432,523
120,315
1,484,646
121,575
1,466,702
126,766
1,474,597
125,843
1,423,344
121,296
1,429,195
124,351
1,438,836
127,099
1,492,893
4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership, which
comprises substantially all open-end investment companies registered with the Securities
and Exchange Commission. Data reflect underwritings of newly formed companies after
their initial offering of securities.
1. Data on sales and redemptions exclude money market mutual funds but include
limited-maturity municipal bond funds. Data on asset positions exclude both money
market mutual funds and limited-maturity municipal bond funds.
2. Includes reinvestment of net income dividends. Excludes reinvestment of capital
gains distributions and share issue of conversions from one fund to another in the same
group.
3. Excludes sales and redemptions resulting from transfers of shares into or out of
money market mutual funds within the same fund family.
1.48
CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1993
Account
1992
1993
1994
1994
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
1 Profits with inventory valuation and
capital consumption adjustment
2 Profits before taxes
3 Profits-tax liability
4 Profits after taxes
5 Dividends
6 Undistributed profits
405.1
395.9
139.7
256.2
171.1
85.1
485.8
462.4
173.2
289.2
191.7
97.5
542.7
524.5
202.5
322.0
205.2
116.9
442.5
432.7
159.8
273.0
188.2
84.7
473.1
456.6
171.8
284.8
190.7
94.1
493.5
458.7
169.9
288.9
193.2
95.6
533.9
501.7
191.5
310.2
194.6
115.6
508.2
483.5
184.1
299.4
196.3
103.0
546.4
523.1
201.7
321.4
202.5
118.9
556.0
538.1
208.6
329.5
207.9
121.6
560.3
553.5
215.6
337.9
213.9
124.0
7 Inventory valuation
8 Capital consumption adjustment
-6.4
15.7
-6.2
29.5
-19.5 r
37.7
-11.2
21.0
-10.0
26.5
3.0
31.7
-6.5
38.8
-12.3
37.0
-14.1
37.4
-19.6
37.5
-32. lr
38.8
SOURCE. U.S. Department of Commerce, Survey of Current Business.
1.50
NONFARM BUSINESS EXPENDITURES
New Plant and Equipment
Billions of dollars; quarterly data at seasonally adjusted annual rates
1993
Industry
1992
1993
1994
19941
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q41
1 Total nonfarm business
546.60
586.73
638.37
563.48
578.95
594.56
604.51
61934
637.08
651.92
645.13
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
73.32
100.69
81.45
98.02
92.78
99.77
78.19
95.80
80.33
97.22
82.74
99.74
83.64
98.51
86.03
99.02
91.71
102.28
98.97
98.39
94.44
99.39
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other2
8.88
10.08
11.24
8.98
9.10
11.09
10.92
11.43
10.70
11.57
11.27
6.67
8.93
7.04
6.14
6.42
9.22
6.72
3.95
10.53
6.16
7.26
8.96
5.94
6.63
8.92
5.89
6.70
8.74
6.55
5.06
10.23
7.46
4.23
10.77
5.36
4.53
9.70
6.65
3.86
10.22
7.40
3.16
11.42
48.22
23.99
268.84
52.55
23.43
299.44
52.25
24.20
336.93
49.98
23.79
284.35
50.61
23.83
296.35
52.96
22.98
303.74
55.60
23.27
310.73
48.68
24.51
327.20
53.55
22.96
336.28
54.15
24.35
343.76
52.60
24.97
340.48
1. Figures are amounts anticipated by business.
2. "Other" consists of construction, wholesale and retail trade, finance and insurance,
personal and business services, and communication.
SOURCE. U.S. Department of Commerce, Survey of Current Business.
A46
DomesticNonfinancialStatistics • June 1995
1.51
DOMESTIC FINANCE COMPANIES
Assets and Liabilities1
Billions of dollars, end of period; not seasonally adjusted
1993
Account
1992
1993
1994
1994
Q2
Q3
Q4
Q1
Q2
Q3
Q4
494.5
120.1
302.3
72.1
511.3
124.3
313.2
73.8
524.1
130.3
317.2
76.6
551.0
134.8
337.6
78.5
ASSETS
1 Accounts receivable, gross2
2 Consumer
Business
I
4
Real estate
491.8
118.3
301.3
72.2
482.8
116.5
294.6
71.7
551.0
134.8
337.6
78.5
473.7
110.6
291.8
71.4
474.0
111.0
291.9
71.1
482.8
116.5
294.6
71.7
53.2
16.2
50.7
11.2
55.0
12.4
49.7
10.8
49.5
11.2
50.7
11.2
51.2
11.6
51.9
12.1
51.1
12.1
55.0
12.4
7 Accounts receivable, net
8 All other
422.4
142.5
420.9
170.9
483.5
183.4
413.2
151.5
413.3
163.9
420.9
170.9
431.7
171.2
447.3
174.6
460.9
177.2
483.5
183.4
9 Total assets
564.9
591.8
666.9
564.7
577.3
591.8
602.9
621.9
638.1
666.9
37.6
156.4
25.3
159.2
21.2
184.6
29.4
144.5
25.8
149.9
25.3
159.2
24.2
165.9
23.3
171.2
21.6
171.0
21.2
184.6
n.a.
n.a.
39.5
196.3
68.0
67.1
n.a.
n.a.
42.7
206.0
87.1
71.4
n.a.
n.a.
51.0
235.0
99.5
75.7
n.a.
n.a.
45.0
199.9
77.8
68.1
n.a.
n.a.
44.6
204.2
83.8
68.9
n.a.
n.a.
42.7
206.0
87.1
71.4
n.a.
n.a.
41.1
211.7
90.5
69.5
n.a.
n.a.
44.7
219.6
89.9
73.2
n.a.
n.a.
50.0
228.2
95.0
72.3
n.a.
n.a.
51.0
235.0
99.5
75.7
564.9
591.8
666.9
564.7
577.3
591.8
602.9
621.9
638.1
666.9
5 LESS: Reserves for unearned income
6
Reserves for losses
LIABILITIES AND CAPITAL
10 Bank loans
11 Commercial paper
12
13
14
15
16
17
Debt
Other short-term
Long-term
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits
18 Total liabilities and capital
1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are amounts carried on the balance sheets of finance companies;
securitized pools are not shown, as they are not on the books.
1.52
DOMESTIC FINANCE COMPANIES
2. Before deduction for unearned income and losses,
Consumer, Real Estate, and Business Credit1
Millions of dollars, amounts outstanding, end of period
1994
Type of credit
1992
1993
1995
1994
Sept.
Nov.
Oct.
Dec.
Jan.r
Feb.
Seasonally adjusted
1 Total
540,679
546,020
610,710
590,512
596,397
602,463
610,710
619,005
624,771
2 Consumer
3 Real estate2
4 Business
157,857
72,496
310,325
160,802
71,991
313,226
174,059
78,774
357,877
172,547
76,424
341,542
173,178
76,971
346,248
174,324
77,991
350,148
174,059
78,774
357,877
175,601
79,097
364,307
175,024
80,539
369,208
Not seasonally adjusted
5 Total
6 Consumer
7
Motor vehicles
Other consumer3
8
9
Securitized motor vehicles4
10 Securitized other consumed
11 Real estate2
12 Business
13 Motor vehicles
14
Retail5
15
Wholesale6
16
Leasing
17 Equipment
18
Retail
19
Wholesale6
20
Leasing
21
Other business7
22
Securitized business assets4
23
Retail
24
Wholesale
25
Leasing
544,691
550,387
615,758
588,525
596,054
603,305
615,758
618,387
624,407
159,558
57,259
61,020
29,734
11,545
72,243
312,890
89,011
20,541
29,890
38,580
151,424
33,521
8,680
109,223
60,856
11,599
1,120
5,756
4,723
162,770
56,057
60,396
36,024
10,293
71,727
315,890
95,173
18,091
31,148
45,934
145,452
35,513
8,001
101,938
53,997
21,268
2,483
10,584
8,201
176,316
61,609
73,221
31,861
9,625
78,479
360,963
118,197
21,514
35,037
61,646
157,953
39,680
9,678
108,595
61,495
23,318
3,065
14,499
5,754
172,002
60,522
69,784
32,372
9,324
76,585
339,938
106,365
21,164
27,201
58,000
152,782
39,357
9,119
104,306
58,101
22,690
2,564
14,411
5,715
172,813
60,750
70,812
31,592
9,659
77,235
346,006
110,089
21,645
29,302
59,142
152,675
38,584
9,134
104,957
59,314
23,928
2,956
15,173
5,799
174,118
61,372
71,502
31,494
9,750
77,907
351,280
113,222
22,113
30,614
60,495
154,312
38,912
9,484
105,916
59,893
23,853
2,853
15,311
5,689
176,316
61,609
73,221
31,861
9,625
78,479
360,963
118,197
21,514
35,037
61,646
157,953
39,680
9,678
108,595
61,495
23,318
3,065
14,499
5,754
176,591
62,321
74,385
30,261
9,624
79,592
362,204
118,979
21,809
34,493
62,677
158,798
40,387
9,372
109,039
61,304
23,123
2,901
14,621
5,601
175,869
61,067
73,937
31,303
9,562
80,754
367,784
121,818
21,577
36,759
63,482
159,333
40,329
9,462
109,542
63,339
23,294
2,764
15,144
5,386
1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are before deductions for unearned income and losses. Data in
this table also appear in the Board's G.20 (422) monthly statistical release. For ordering
address, see inside front cover.
2. Includes all loans secured by liens on any type of real estate, for example, first and
junior mortgages and home equity loans.
3. Includes personal cash loans, mobile home loans, and loans to purchase other types
of consumer goods such as appliances, apparel, general merchandise, and recreation
vehicles.
FRASER
Digitized for
4. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
5. Passenger car fleets and commercial land vehicles for which licenses are required.
6. Credit arising from transactions between manufacturers and dealers, that is, floor
plan financing.
7. Includes loans on commercial accounts receivable, factored commercial accounts,
and receivable dealer capital; small loans used primarily for business or farm purposes;
and wholesale and lease paper for mobile homes, campers, and travel trailers.
Real Estate
1.53
MORTGAGE MARKETS
A3 7
Mortgages on New Homes
Millions of dollars except as noted
1994
Item
1992
1993
1995
1994
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-to-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)
Yield (percent per year)
6 Contract rate1
7 Effective rate1'3
8 Contract rate (HUD series)4
158.1
118.1
76.6
25.6
1.60
163.1
123.0
78.0
26.1
1.30
170.4
130.8
78.8
27.5
1.29
170.6
133.7
79.4
27.9
1.36
173.4
131.9
78.3
27.6
1.22
178.2
136.2
78.0
27.9
1.30
184.9
136.2
76.9
28.0
1.38
176.5
134.2
78.0
28.0
1.31
175.6
135.6
79.3
28.3
1.32
173.3
132.6
78.2
28.6
1.18
7.98
8.25
8.43
7.03
7.24
7.37
7.26
7.47
8.58
7.48
7.70
8.96
7.55
7.76
9.19
7.59
7.81
9.34
7.61
7.83
9.32
7.96
8.18
9.11
8.07
8.28
8.79
8.02
8.21
8.60
8.46
7.71
7.46
6.65
8.68
7.96
9.10
8.28
9.23
8.67
9.53
8.86
9.54
8.76
9.10
8.69
9.05
8.38
8.60
8.08
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (Section 203)5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 F H A / V A insured
13 Conventional
158,119
22,593
135,526
190,861
23,857
167,004
222,057
28,377
194,499
215,249
25,800
189,449
218,479
26,226
192,253
220,377
27,118
193,259
222,057
28,377
194,499
222,774
28,368
195,170
223,137
28,420
195,439
223,956
28,672
195,998
Mortgage transactions (during period)
14 Purchases
75,905
92,037
62,389
4,266
5,003
3,549
3,399
2,154
1,802
2,390
Mortgage commitments (during period)
15 Issued7
16 To sell8
74,970
10,493
92,537
5,097
54,038
1,820
4,880
0
3,421
48
2,696
20
2,910
55
1,720
57
1,683
82
3,372
64
33,665
352
33,313
55,012
321
54,691
72,693
276
72,416
66,478
287
66,191
69,340
284
69,057
70,757
279
70,477
72,693
276
72,416
73,553
272
73,281
75,184
270
74,914
77,313
266
77,047
Mortgage transactions (during period)
20 Purchases
21
191,125
179,208
229,242
208,723
124,697
117,110
5,512
5,213
8,351
8,139
3,022
2,865
4,890
3,769
3,254
2,862
5,537
4,806
4,609
3,546
Mortgage commitments (during periodf
22 Contracted
261,637
274,599
136,067
5,035
7,288
3,454
2,412
6,541
7,741
12,704
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period f
17 Total
18 F H A / V A insured
19 Conventional
1. Weighted averages based on sample surveys of mortgages originated by major
institutional lender groups for purchase of newly built homes; compiled by the Federal
Housing Finance Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or
the seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end of ten years.
4. Average contract rate on new commitments for conventional first mortgages; from
U.S. Department of Housing and Urban Development (HUD). Based on transactions on
the first day of the subsequent month.
5. Average gross yield on thirty-year, minimum-downpayment first mortgages
insured by the Federal Housing Administration (FHA) for immediate delivery in the
private secondary market. Based on transactions on first day of subsequent month.
6. Average net yields to investors on fully modified pass-through securities backed by
mortgages and guaranteed by the Government National Mortgage Association (GNMA),
assuming prepayment in twelve years on pools of thirty-year mortgages insured by the
Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments
converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal Home Loan
Mortgage Corporation's mortgage commitments and mortgage transactions include activity under mortgage securities swap programs, whereas the corresponding data for FNMA
exclude swap activity.
A46
1.54
DomesticNonfinancialStatistics • June 1995
MORTGAGE DEBT OUTSTANDING1
Millions of dollars, end of period
1993
Type of holder and property
1991
1992
1994
1993
Q4
Q1
Q2
Q3
Q4
1 All holders
3,926,154
4,056,233
4,215,480
4,215,480
4,242,350
4300,086
4,361,119
4,409,390
By type of property
2 One- to four-family residences
3 Multifamily residences
4 Commercial
5
2,781,327
306,551
759,154
79,122
2,963,391
295,417
716,687
80,738
3,147,255
290,489
696,542
81,194
3,147,255
290,489
696,542
81,194
3,181,125
289,236
690,718
81,272
3,234,663
290,807
692,764
81,853
3,291,915
292,180
694,736
82,288
3,339,190
292,151
695,548
82,500
1,846,726
876,100
483,623
36,935
337,095
18,447
705,367
538,358
79,881
86,741
388
265,258
11,547
29,562
214,105
10,044
1,769,187
894,513
507,780
38,024
328,826
19,882
627,972
489,622
69,791
68,235
324
246,702
11,441
27,770
198,269
9,222
1,767,835
940,444
556,538
38,635
324,409
20,862
598,330
469,959
67,362
60,704
305
229,061
9,458
25,814
184,305
9,484
1,767,835
940,444
556,538
38,635
324,409
20,862
598,330
469,959
67,362
60,704
305
229,061
9,458
25,814
184,305
9,484
1,746,474
937,944
553,894
38,690
324,106
21,254
584,531
458,057
66,924
59,253
297
223,999
9,245
25,232
180,152
9,370
1,763,296
956,840
569,512
38,609
326,800
21,918
585,671
462,219
66,281
56,872
299
220,785
9,107
24,855
177,463
9,360
1,786,171
981,365
592,021
38,004
328,931
22,408
587,538
466,697
65,530
55,019
291
217,269
8,956
24,442
174,514
9,357
1,813,751
1,004,237
609,521
39,289
332,859
22,567
596,035
477,144
64,557
54,048
286
213,479
8,794
24,002
171,368
9,315
266,146
19
19
0
41,713
18,496
10,141
4,905
8,171
10,733
4,036
6,697
45,822
14,535
15,018
16,269
0
112,283
100,387
11,896
28,767
1,693
27,074
26,809
24,125
2,684
286,263
30
30
0
41,695
16,912
10,575
5,158
9,050
12,581
5,153
7,428
32,045
12,960
9,621
9,464
0
137,584
124,016
13,568
28,664
1,687
26,977
33,665
31,032
2,633
317,486
22
15
7
41,386
15,303
10,940
5,406
9,739
12,215
5,364
6,851
17,284
7,203
5,327
4,754
0
166,642
151,310
15,332
28,460
1,675
26,785
51,476
48,929
2,547
317,486
22
15
7
41,386
15,303
10,940
5,406
9,739
12,215
5,364
6,851
17,284
7,203
5,327
4,754
0
166,642
151,310
15,332
28,460
1,675
26,785
51,476
48,929
2,547
323,464
20
13
7
41,209
14,870
11,037
5,399
9,903
11,344
4,738
6,606
14,241
6,308
4,208
3,726
0
172,343
156,576
15,767
28,181
1,658
26,523
56,127
53,571
2,556
327,690
12
12
0
41,370
14,459
11,147
5,526
10,239
11,169
4,826
6,343
13,908
6,045
4,230
3,633
0
175,377
159,437
15,940
28,475
1,675
26,800
57,379
54,799
2,580
334,359
12
12
0
41,587
14,084
11,243
5,608
10,652
10,533
4,321
6,212
15,403
6,998
4,569
3,836
0
177,200
161,255
15,945
28,538
1,679
26,859
61,087
58,432
2,655
335,228
6
6
0
41,781
13,826
11,319
5,670
10,966
10,964
4,753
6,211
10,428
5,200
2,859
2,369
0
178,059
162,160
15,899
28,565
1,681
26,885
65,424
62,594
2,830
1,250,666
425,295
415,767
9,528
359,163
351,906
7,257
371,984
362,667
9,317
47
11
0
19
17
94,177
84,000
3,698
6,479
0
1,425,546
419,516
410,675
8,841
407,514
401,525
5,989
444,979
435,979
9,000
38
8
0
17
13
153,499
132,000
6,305
15,194
0
1,550,818
414,066
404,864
9,202
443,029
438,494
4,535
495,525
486,804
8,721
28
5
0
13
10
198,171
164,000
8,701
25,469
0
1,550,818
414,066
404,864
9,202
443,029
438,494
4,535
495,525
486,804
8,721
28
5
0
13
10
198,171
164,000
8,701
25,469
0
1,604,449
423,446
414,194
9,251
459,949
455,779
4,170
507,376
498,489
8,887
26
5
0
12
9
213,653
177,000
9,202
27,451
0
1,643,627
435,709
426,363
9,346
470,183
466,361
3,822
514,855
505,730
9,125
22
4
0
10
8
222,858
179,500
11,514
31,844
0
1,668,496
444,976
435,511
9,465
469,062
465,614
3,448
523,512
514,375
9,137
20
4
0
9
7
230,926
182,300
13,891
34,735
0
1,683,946
450,934
441,198
9,736
467,071
463,945
3,126
530,343
520,763
9,580
19
3
0
9
7
235,579
183,600
14,850
37,129
0
562,616
370,157
83,937
93,541
14,981
575,237
382,572
85,871
91,524
15,270
579,341
387,334
86,516
91,482
14,009
579,341
387,334
86,516
91,482
14,009
567,963
376,728
86,700
90,621
13,915
565,473
374,612
87,014
90,617
13,229
572,092
379,656
87,638
92,084
12,714
576,465
384,001
87,893
92,096
12,474
By type of holder
6 Major financial institutions
7 Commercial banks2
8
One- to four-family
9
Multifamily
10
Commercial
11
Farm
12 Savings institutions3
13
One- to four-family
14
Multifamily
15
Commercial
16
Farm
17 Life insurance companies
18
One- to four-family
19
Multifamily
20
Commercial
21
Farm
22 Federal and related agencies
23 Government National Mortgage Association
24
One- to four-family
25
Multifamily
26 Farmers Home Administration4
27
One- to four-family
Multifamily
28
29
Commercial
30
Farm
31 Federal Housing and Veterans' Administrations
32
One- to four-family
33
Multifamily
34 Resolution Trust Corporation
35
One- to four-family
36
Multifamily
37
Commercial
38
Farm
39 Federal National Mortgage Association
40
One- to four-family
41
Multifamily
42
Federal Land Banks
43
One- to four-family
44
Farm
45
Federal Home Loan Mortgage Corporation
46
One- to four-family
47
Multifamily
48 Mortgage pools or trusts5
49 Government National Mortgage Association
50
One- to four-family
51
Multifamily
52 Federal Home Loan Mortgage Corporation
53
One- to four-family
54
Multifamily
55 Federal National Mortgage Association
56
One- to four-family
57
Multifamily
58
Farmers Home Administration4
59
One- to four-family
60
Multifamily
61
Commercial
62
Farm
63
Private mortgage conduits
64
One- to four-family
Multifamily
65
66
Commercial
67
Farm
68 Individuals and others6
69
One- to four-family
70
Multifamily
71
Commercial
72
1. Multifamily debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by bank trust
departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated
from FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of
accounting changes by the Farmers Home Administration.
5. Outstanding principal balances of mortgage-backed securities insured or guaranteed
by the agency indicated.
6. Other holders include mortgage companies, real estate investment trusts, state and
local credit agencies, state and local retirement funds, noninsured pension funds, credit
unions, and finance companies.
SOURCES. Based on data from various institutional and government sources. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and interpolations
and extrapolations, when required for some quarters, are estimated in part by the Federal
Reserve. Line 64 from Inside Mortgage Securities.
Consumer Installment Credit
A39
CONSUMER INSTALLMENT CREDIT1
1.55
Millions of dollars, amounts outstanding, end of period
1994
Holder and type of credit
1992
1993
1995
1994
Sept.
Nov.
Oct.
Dec.
Jan.r
Feb.
Seasonally adjusted
1 Total
731,098
794,300
911,311
879,961
891,603
904,757
911,311
920,337
928,496
2 Automobile
3 Revolving
4 Other
257,678
257,304
216,117
282,036
287,875
224,389
324,519
337,694
249,098
315,162
322,823
241,976
318,036
327,707
245,860
323,447
334,843
246,467
324,519
337,694
249,098
324,855
343,184
252,298
327,704
349,471
251,321
Not seasonally adjusted
747,690
812,782
932,890
880,609
891,442
906,436
932,890
929,329
928,612
By major holder
Commercial banks
Finance companies
Credit unions
Savings institutions
Nonfinancial business
Pools of securitized assets2
330,088
118,279
91,694
37,049
49,184
121,396
368,549
116,453
101,634
37,855
57,637
130,654
434,790
134,830
120,158
38,750
64,944
139,418
410,312
130,306
114,699
37,943
55,967
131,382
414,833
131,562
116,325
38,122
56,020
134,580
421,790
132,874
117,984 •
38,275
58,247
137,266
434,790
134,830
120,158
38,750
64,944
139,418
431,745
136,706
120,668
39,250
61,382
139,578
432,883
135,004
121,067
39,399
59,169
141,090
By major type of credit3
12 Automobile
13 Commercial banks
14 Finance companies
15 Pools of securitized assets2
258,226
109,623
57,259
33,888
282,825
123,358
56,057
39,490
325,536
148,117
61,609
34,515
316,778
144,260
60,522
35,149
320,182
146,456
60,750
34,394
323,744
148,004
61,372
34,301
325,536
148,117
61,609
34,515
324,826
147,319
62,321
32,902
326,754
148,355
61,067
33,936
16 Revolving
17 Commercial banks
18 Nonfinancial business
19 Pools of securitized assets2
271,368
132,966
43,974
74,931
303,444
149,527
52,113
79,887
355,859
180,530
58,870
93,545
321,205
164,724
50,314
85,051
325,872
165,561
50,332
88,762
336,575
171,318
52,475
91,469
355,859
180,530
58,870
93,545
350,035
176,635
55,405
95,015
349,169
177,241
53,257
95,724
20 Other
21
Commercial banks
22 Finance companies
23 Nonfinancial business
24 Pools of securitized assets2
218,096
87,499
61,020
5,210
12,577
226,513
95,664
60,396
5,524
11,277
251,495
106,143
73,221
6,074
11,358
242,626
101,328
69,784
5,653
11,182
245,388
102,816
70,812
5,688
11,424
246,117
102,468
71,502
5,772
11,496
251,495
106,143
73,221
6,074
11,358
254,468
107,791
74,385
5,977
11,661
252,689
107,287
73,937
5,912
11,430
5 Total
6
7
8
9
10
11
1. The Board's series on amounts of credit covers most short- and intermediate-term
credit extended to individuals that is scheduled to be repaid (or has the option of
repayment) in two or more installments.
Data in this table also appear in the Board's G.19 (421) monthly statistical release. For
ordering address, see inside front cover.
1.56
2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit totals are
available.
TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent per year except as noted
1994
Item
1992
1993
1995
1994r
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
INTEREST RATES
Commercial banks2
1 48-month new car
2 24-month personal
9.29
14.04
8.09
13.47
8.12
13.19
8.41
13.33
n.a.
n.a.
n.a.
n.a.
8.75
13.59
n.a.
n.a.
n.a.
n.a.
9.70
14.10
Credit card plan
3 All accounts
4 Accounts assessed interest
n.a.
n.a.
n.a.
n.a.
15.91
15.74
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
15.91
15.74
n.a.
n.a.
n.a.
n.a.
16.24
15.29
Auto finance companies
5 New car
6 Used car
9.93
13.80
9.48
12.79r
9.79
13.49r
10.32
13.92r
10.13
13.98r
10.39
14.01r
10.53
14.19r
10.72
14.48r
11.35
14.57'
11.89
15.06
Maturity (months)
7 New car
8 Used car
54.0
47.9r
54.5
48.8r
54.0
50.2r
54.2
so. r
54.3
50.2r
54.9
50.2r
54.6
50.3r
53.9
50.3r
53.9
52.0
54.1
52.0
Loan-to-value ratio
9 New car
10 Used car
89
97
91
98
92
99
93
100
93
100
92
100
93
100
92
100
92
99
92
99
13,584
9,119
14,332
9,875
15,375
10,709
15,283
10,755
15,419
10,906
15,827
10,554
15,971
11,202
16,187
11,309
16,068
11,185
15,774
11,181
OTHER TERMS 3
Amount financed (dollars)
11 New car
12 Used car
1. The Board's series on amounts of credit covers most short- and intermediate-term
credit extended to individuals that is scheduled to be repaid (or has the option of
repayment) in two or more installments. Data in this table also appear in the Board's G.19
(421) monthly statistical release. For ordering address, see inside front cover.
2. Data are available for only the second month of each quarter,
3. At auto finance companies,
A46
1.57
DomesticNonfinancialStatistics • June 1995
FUNDS RAISED IN U.S. CREDIT MARKETS1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1993
1990
1991
1994
1992
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors....
635.6
475.8
536.1
628.1
619.5
740.5
613.3
677.2
657.1
550.6
620.8
649.5
By sector and instrument
2 U.S. government
3 Treasury securities
4 Budget agency issues and mortgages
246.9
238.7
8.2
278.2
292.0
-13.8
304.0
303.8
.2
256.1
248.3
7.8
155.9
155.7
.2
336.4
332.3
4.1
173.4
157.2
16.2
274.2
266.5
7.7
210.5
211.8
-1.3
122.9
118.2
4.7
135.0
130.7
4.3
155.0
162.1
-7.1
5 Private
388.7
197.5
232.1
372.0
463.7
404.1
439.9
403.0
446.6
427.7
485.8
494.5
6
7
8
9
10
11
12
13
14
15
16
By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
Bank loans n.e.c
Commercial paper
Other loans
48.7
47.1
199.5
185.6
4.8
9.3
-.3
16.0
.4
9.7
67.4
68.7
78.8
161.4
163.8
-3.1
.4
.4
-15.0
-40.9
-18.4
-37.1
31.1
67.5
123.9
179.5
-11.2
-45.5
1.1
5.5
-13.8
8.6
9.2
78.1
75.2
155.7
183.9
-6.1
-22.5
.5
62.3
5.0
10.0
-14.4
-15.1
21.9
194.1
191.9
1.7
-.9
1.3
117.5
77.6
21.4
46.3
130.3
75.7
152.2
193.5
-11.4
-30.9
1.0
41.6
-.2
33.2
-28.6
66.2
72.0
222.2
236.5
-4.9
-9.9
.4
76.2
7.8
17.2
-21.7
27.4
67.4
148.5
184.5
-2.6
-33.6
.2
111.3
28.5
3.8
16.2
22.6
35.5
163.0
191.2
-5.1
-23.4
.3
72.7
68.2
8.0
76.5
-9.8
35.8
188.6
172.3
6.1
7.8
2.3
121.9
57.9
16.4
16.9
-41.2
14.0
239.8
224.8
5.5
7.8
1.7
125.9
89.4
33.8
24.1
-32.1
2.4
185.0
179.5
.4
4.3
.8
149.4
94.8
27.2
67.8
17
18
19
20
21
22
By borrowing sector
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
State and local government
218.9
123.7
2.3
10.1
111.3
46.0
170.9
-35.9
2.1
-28.5
-9.6
62.6
217.7
-2.0
1.0
-43.9
40.9
16.4
284.5
21.9
2.0
-26.0
45.8
65.7
349.6
143.3
2.3
19.8
121.2
-29.3
264.1
26.7
2.7
-33.4
57.4
113.2
368.5
24.1
4.1
-26.2
46.3
47.3
337.7
48.2
3.6
-15.6
60.2
17.1
304.3
135.8
2.6
8.4
124.7
6.5
316.0
139.9
8.1
18.5
113.2
-28.2
387.7
146.8
1.7
28.9
116.2
-48.7
390.5
150.7
-3.2
23.2
130.7
-46.6
23 Foreign net borrowing in United States
24 Bonds
25 Bank loans n.e.c
26 Commercial paper
27 U.S. government and other loans
23.9
21.4
-2.9
12.3
-7.0
13.9
14.1
3.1
6.4
-9.8
21.3
14.4
2.3
5.2
-.6
46.9
59.4
.7
-9.0
-4.2
-12.1
17.1
1.4
-27.3
-3.3
42.8
45.3
6.6
-.6
-8.4
83.1
84.5
1.0
-1.6
-.8
22.9
41.4
-6.3
-12.0
-.1
-66.3
29.0
6.0
-101.8
.5
-10.1
9.4
-4.5
-5.2
-9.8
4.1
4.9
4.7
-8.1
2.8
23.9
25.2
-.5
5.9
-6.6
28 Total domestic plus foreign
659.4
489.6
557.4
675.0
607.4
783.3
696.4
700.2
590.8
540.5
624.9
673.4
Financial sectors
29 Total net borrowing by financial sectors
202.9
152.6
237.1
286.1
419.9
175.5
438.9
349.8
488.9
343.5
367.7
479.6
167.4
17.1
150.3
-.1
145.7
9.2
136.6
.0
155.8
40.3
115.6
.0
161.2
80.6
80.6
.0
268.2
177.2
95.7
-4.8
56.6
68.8
-12.2
.0
287.3
167.8
119.5
.0
131.3
53.4
77.9
.0
320.8
160.0
180.0
-19.2
245.2
146.6
98.6
.0
224.9
152.1
72.8
.0
281.7
250.2
31.5
.0
34 Private
35 Corporate bonds
36 Mortgages
37 Bank loans n.e.c
38 Open market paper
39 Loans from Federal Home Loan Banks
35.5
46.3
.6
4.7
8.6
-24.7
6.8
67.6
.5
8.8
-32.0
-38.0
81.3
78.5
.6
2.2
-.7
.8
125.0
118.3
3.6
-14.0
-6.2
23.3
151.8
103.3
-.2
-15.8
41.6
22.8
118.9
92.4
1.4
12.8
-16.2
28.4
151.6
143.4
6.2
-16.1
-9.4
27.4
218.5
138.3
5.5
-18.0
76.0
16.8
168.2
154.5
.2
-12.3
36.6
-10.8
98.3
91.9
.6
-30.1
3.6
32.3
142.8
84.3
.1
-14.6
42.3
30.7
197.9
82.8
-1.5
-6.2
84.0
38.8
By borrowing sector
40 Government-sponsored enterprises
41 Federally related mortgage pools
42 Private
43 Commercial banks
44 Bank holding companies
45 Funding corporations
46 Savings institutions
47 Credit unions
48 Life insurance companies
49 Finance companies
50 Mortgage companies
51 Real estate investment trusts (REITs)
52 Issuers of asset-backed securities (ABSs)
17.0
150.3
35.5
-.7
-27.7
15.4
-30.2
.0
.0
24.0
.0
.8
52.3
9.1
136.6
6.8
-11.7
-2.5
-6.5
-44.5
.0
.0
18.6
-2.4
1.2
51.0
40.2
115.6
81.3
8.8
2.3
13.2
-6.7
.0
.0
-3.6
8.0
.3
56.3
80.6
80.6
125.0
5.6
8.8
2.9
11.1
.2
.2
.2
-1.0
3.5
81.5
172.4
95.7
151.8
10.0
8.4
25.8
12.8
.2
.3
50.3
-13.0
1.7
54.7
68.8
-12.2
118.9
11.3
1.3
-1.6
12.6
.3
.6
-13.6
32.4
1.3
60.5
167.8
119.5
151.6
6.5
.5
7.9
13.5
.3
-.1
17.5
-.8
6.0
85.8
53.4
77.9
218.5
1.2
12.2
36.7
8.8
.1
.4
16.3
-10.4
6.2
117.6
140.8
180.0
168.2
2.0
3.5
48.2
-5.6
.1
.0
63.3
-21.6
1.2
86.9
146.6
98.6
98.3
12.4
10.1
-17.9
5.8
.2
.0
67.0
-18.2
2.2
36.5
152.1
72.8
142.8
22.8
11.5
46.5
14.8
.5
.0
16.9
-7.0
2.3
42.2
250.2
31.5
197.9
2.9
8.5
26.3
36.1
.2
1.3
54.0
-5.0
1.1
53.1
30
31
32
33
By instrument
U.S. government-related
Government-sponsored enterprises securities
Mortgage pool securities
Loans from U.S. government
Flow of Funds
1.57
A41
FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued
1993
Transaction category or sector
1990
1991
1992
1993
1994
1994
Q2
Q3
Q4
Q1
Q2
Q3
Q4
All sectors
53 Total net borrowing, all sectors
862.3
642.2
794.5
961.2
1,027.3
958.8
1,135.3
1,050.0
1,079.7
884.0
992.6
1,153.0
54
55
56
57
58
59
60
61
414.4
48.7
114.7
200.1
16.0
2.2
30.7
35.6
424.0
68.7
160.5
161.9
-15.0
-29.1
-44.0
-84.9
459.8
31.1
160.4
124.5
5.5
-9.4
13.1
9.5
417.3
78.1
252.9
159.2
62.3
-8.3
-5.1
4.7
428.8
-15.1
142.4
193.9
117.5
63.2
35.7
61.0
393.0
130.3
213.4
153.5
41.6
19.2
16.4
-8.7
460.7
66.2
299.9
228.3
76.2
-7.3
6.3
4.9
405.5
27.4
247.1
154.0
111.3
4.2
67.7
32.9
550.5
22.6
219.0
163.2
72.7
61.9
-57.2
47.0
368.1
-9.8
137.0
189.1
121.9
23.3
14.8
39.4
359.9
-41.2
103.1
239.9
125.9
79.5
68.0
57.6
436.7
-32.1
110.3
183.5
149.4
88.1
117.1
100.0
U.S. government securities
Tax-exempt securities
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
Funds raised through mutual funds and corporate equities
62 Total net share issues
63 Mutual funds
64 Corporate equities
Nonfinancial corporations
65
66
Financial corporations
67 Foreign shares purchased in United States
19.7
215.4
296.0
437.1
159.8
471.9
498.0
434.5
312.3
236.4
126.7
-36.0
65.3
-45.6
-63.0
10.0
7.4
151.5
64.0
18.3
15.1
30.7
211.9
84.1
27.0
26.4
30.7
317.0
120.1
21.3
38.2
60.6
128.3
31.6
-40.9
28.6
43.9
358.0
113.9
23.2
38.6
52.1
348.9
149.1
32.3
38.2
78.6
292.0
142.4
21.5
40.9
80.0
204.5
107.8
-9.6
47.9
69.4
167.0
69.4
-2.0
24.8
46.7
129.3
-2.6
-50.0
23.7
23.7
12.3
-48.3
-102.0
17.9
35.7
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release,
tables F.2 through F.5. For ordering address, see inside front cover.
A46
1.58
DomesticNonfinancialStatistics • June 1995
SUMMARY OF FINANCIAL TRANSACTIONS1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
1993
Transaction category or sector
1990
1991
1992
1993
1994
1994
Q2
Q3
Q4
Q1
Q2
Q3
Q4
NET LENDING IN CREDIT MARKETS 2
1 Total
net lending in credit markets
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 Government sponsored enterprises
11 Federally related mortgage pools
12 Monetary authority
13 Commercial banking
14
U.S. commercial banks
15
Foreign banking offices
16
Bank holding companies
17
Banks in U.S. affiliated areas
18
Funding corporations
19
Thrift institutions
20
Life insurance companies
21
Other insurance companies
22
Private pension funds
23
State and local government retirement funds
24
Finance companies
25
Mortgage companies
26
Mutual funds
27
Closed-end funds
28
Money market funds
29
Real estate investment trusts (REITs)
30
Brokers and dealers
31
Asset-backed securities issuers (ABSs)
32
Bank personal trusts
862-3
642.2
794.5
961.2
1,0273
958.8
1,135.3
1,050.0
1,079.7
884.0
992.6
1,153.0
190.1
-7.5
157.2 • -39.6
-3.7
-1.7
-3.7
6.7
29.2
38.3
33.7
10.5
85.5
26.6
553.0
612.5
13.9
15.2
150.3
136.6
8.1
31.1
125.1
80.8
94.9
35.7
28.4
48.5
-2.8
-1.5
4.5
-1.9
16.1
15.8
-154.0 -123.5
94.4
83.2
26.5
32.6
17.2
85.7
34.9
46.0
29.0
-12.7
.0
11.2
41.4
90.3
.2
14.7
80.9
30.1
-.7
-.7
2.8
17.5
51.1
48.9
15.9
10.0
72.0
70.7
-1.1
29.2
-26.8
-11.9
100.5
633.9
69.0
115.6
27.9
95.3
69.5
16.5
5.6
3.7
23.5
-61.3
79.1
12.8
37.3
34.4
1.7
.1
123.7
17.4
1.3
1.1
-6.9
53.8
8.0
4.8
-11.5
-3.2
18.0
1.5
-18.4
126.0
848.8
90.2
80.6
36.2
142.2
149.6
-9.8
.0
2.4
18.1
-1.7
105.1
33.3
40.2
25.5
-9.0
.0
164.0
10.2
14.7
.6
9.2
80.1
9.5
296.5
378.3
-2.0
18.2
-98.0
-19.6
129.0
621.4
118.9
95.7
31.5
162.1
148.1
11.0
1.1
1.9
12.6
35.6
55.4
21.1
-42.8
43.8
66.8
-26.0
-14.0
3.5
30.5
.7
-32.0
51.8
6.3
-4.6
-76.5
-3.2
17.3
57.7
-27.1
93.4
897.1
128.0
-12.2
35.7
133.4
137.4
-14.3
7.9
2.4
1.1
16.1
109.4
36.0
11.1
47.5
-34.7
65.1
194.4
10.5
33.3
.8
52.5
59.4
10.0
-39.5
-69.7
-3.3
41.2
-7.7
-15.4
123.5
1,066.6
144.8
119.5
28.2
146.7
160.3
-16.9
1.2
2.2
32.4
21.0
111.8
37.6
91.9
27.4
9.4
-1.6
174.6
5.9
25.3
1.0
-7.8
88.6
9.9
86.3
174.7
-3.5
16.0
-101.0
-7.9
221.2
750.4
71.2
77.9
38.5
188.1
197.3
-6.5
-4.8
2.1
42.6
-13.3
86.4
32.1
-60.1
36.9
22.6
-13.3
138.4
7.7
57.3
.2
-82.8
111.1
8.9
391.3
394.3
-3.6
22.3
-21.6
-40.8
127.6
601.6
92.4
180.0
48.8
184.7
120.6
59.0
3.1
2.1
17.8
13.6
53.7
27.9
-97.7
30.3
72.1
-43.5
18.0
8.3
-44.5
.7
-56.1
86.0
9.3
340.1
408.3
16.9
-83.2
-11.1
49.4
505.5
101.1
98.6
17.9
109.1
128.4
-21.5
.2
1.9
35.3
42.6
6.1
20.8
-30.7
51.2
49.8
-36.3
11.3
3.2
33.7
.7
-52.6
38.7
5.2
152.0
246.6
-1.9
21.8
-114.4
-.9
119.6
721.9
125.6
72.8
24.0
191.3
164.6
22.1
2.7
1.9
21.4
52.0
83.4
16.0
-17.5
41.5
58.9
-14.0
-18.7
1.4
54.4
.7
-11.8
37.4
2.9
302.5
464.1
-.5
11.7
-172.7
-25.7
219.6
656.6
156.5
31.5
35.4
163.3
178.7
-15.7
-1.5
1.8
-24.1
34.1
78.3
19.7
-25.5
52.1
86.4
-10.0
-66.5
1.0
78.4
.7
-7.6
45.1
7.7
-1.8
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
33 Net flows through credit markets
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Other financial sources
Official foreign exchange
Special drawing rights certificates
Treasury currency
Life insurance reserves
Pension fund reserves
Interbank claims
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Corporate equities
Security credit
Trade debt
Taxes payable
Noncorporate proprietors' equity
Investment in bank personal trusts
Miscellaneous
54 Total financial sources
Floats not included in assets (—)
55 U.S. government checkable deposits
56 Other checkable deposits
57 Trade credit
58
59
60
61
62
Liabilities not identified as assets (—)
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous
63 Total identified to sectors as assets
862.3
642.2
794.5
961.2
1,027.3
958.8
1,135.3
1,050.0
1,079.7
884.0
992.6
1,153.0
2.0
1.5
1.0
25.7
165.1
35.4
43.3
63.7
-66.1
70.3
-24.2
38.2
65.3
-45.6
3.5
37.0
-4.8
-28.3
29.7
135.7
-5.9
.0
.0
25.7
360.3
-3.9
86.4
1.5
-58.5
41.2
-16.5
-16.7
151.5
64.0
51.4
3.6
-6.2
-3.3
16.1
197.2
-1.6
-2.0
.2
27.3
249.7
61.7
113.8
-57.2
-73.2
3.9
35.5
-7.2
211.9
84.1
4.2
41.5
8.5
18.4
-7.1
257.6
.8
.0
.4
35.2
309.2
44.7
117.3
-70.3
-23.5
15.3
65.5
317.0
120.1
61.9
49.0
4.6
-10.2
1.6
289.7
-5.6
.0
.7
20.1
113.9
85.0
-10.3
-39.8
20.7
46.3
79.1
13.1
128.3
31.6
-3.0
75.6
2.3
-44.8
4.6
260.0
-4.0
.0
.4
35.3
313.7
128.9
214.4
-67.8
-26.8
61.8
37.9
-17.1
358.0
113.9
40.0
51.0
7.3
-14.9
-7.2
402.1
1.7
.0
.4
36.6
349.9
-5.0
73.1
-68.1
-59.5
.6
67.8
-50.7
348.9
149.1
76.6
49.6
-1.8
6.3
.1
221.4
2.2
.0
.7
35.5
251.6
-13.7
81.9
-36.6
13.7
45.7
-14.4
35.7
292.0
142.4
86.5
51.9
4.9
-25.6
17.6
342.0
-.2
.0
.7
20.0
-8.8
150.9
173.1
2.5
-39.6
-33.5
14.3
16.4
204.5
107.8
29.7
35.6
14.2
-50.3
15.4
359.6
-14.6
.0
.6
8.1
64.3
184.9
-66.1
-62.4
-4.4
67.8
175.9
14.6
167.0
69.4
-17.5
87.2
-11.6
-44.6
-15.5
272.3
.2
.0
.8
23.8
214.4
-26.6
-87.4
-56.4
83.8
50.3
76.9
-8.4
129.3
-2.6
-61.7
92.2
2.7
-40.7
6.7
289.2
-7.8
.0
.7
28.7
185.6
30.8
-60.6
-42.9
42.9
100.8
49.3
29.6
12.3
-48.3
37.3
87.4
3.9
-43.8
11.9
118.9
1,410.6
1,530.2
1,764.5
2,278.5
1,805.1
2,585.6
2,332.5
2,364.0
2,092.0
1,759.5
1,679.0
1,689.9
3.3
8.5
9.1
-13.1
4.5
9.7
.7
1.6
4.1
-1.5
-1.3
16.5
-4.7
-2.8
-.9
2.9
8.3
25.7
2.1
-5.2
22.2
-15.5
-6.2
12.5
-2.4
.6
-25.7
-1.4
-1.1
5.6
15.2
-6.2
14.1
-30.3
-4.3
2.3
.2
1.6
-24.0
.1
-35.4
-.6
26.2
6.2
1.3
-45.3
-.2
-4.9
27.9
14.0
-46.0
-.2
4.2
82.2
1.0
-41.9
-.2
-2.7
41.7
-1.1
-7.3
-.2
.5
60.8
18.2
-98.0
-.2
-10.4
66.6
1.2
-20.9
-.2
24.0
21.6
-8.6
48.2
-.2
-29.1
4.4
-.3
-66.0
-.2
5.3
117.3
4.2
-171.5
-.2
11.3
62.1
-4.6
147.5
-.2
1.7
-17.1
-3.8
61.0
1,447.2
1,541.2
1,767.2
2,219.5
1,783.2
2,567.4
2,277.1
2,288.2
2,210.9
1,801.3
1,439.9
1,680.5
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release,
tables F.6 and F.7. For ordering address, see inside front cover.
-11.0
2. Excludes corporate equities and mutual fund shares,
Flow of Funds
1.59
A43
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1
Billions of dollars, end of period
1994
1993
Transaction category or sector
1991
1994
Q2
Q4
Q3
Qi
Q2
Q3
Q4
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
11,181.5
11,720.7
12,363.1
12,982.5
12,008.9
12,1553
12,363.1
12,487.0
12,633.0
12,780.4
12,982.5
By sector and instrument
2 U.S. government
3 Treasury securities
4
Budget agency issues and mortgages
2,776.4
2,757.8
18.6
3,080.3
3,061.6
18.8
3,336.5
3,309.9
26.6
3,492.3
3,465.6
26.7
3,201.2
3,180.6
20.6
3,247.3
3,222.6
24.7
3,336.5
3,309.9
26.6
3,387.7
3,361.4
26.3
3,395.4
3,368.0
27.4
3,432.6
3,404.1
28.5
3,492.3
3,465.6
26.7
5 Private
8,405.1
8,640.4
9,026.6
9,490.2
8,807.7
8,908.1
9,026.6
9,099.3
9,237.6
9,347.7
9,490.2
6
7
8
9
10
11
12
13
14
15
16
By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
Bank loans n.e.c
Commercial paper
Other loans
1,108.6
1,086.9
3,920.0
2,780.0
304.8
755.8
79.3
797.4
686.0
98.5
707.8
1,139.7
1,154.4
4,043.9
2,959.6
293.6
710.3
80.4
803.0
672.1
107.1
720.2
1,217.8
1,229.6
4,206.5
3,147.3
287.5
690.6
81.2
866.5
677.2
117.8
711.1
1,202.7
1,251.6
4,400.6
3,339.2
289.2
689.7
82.5
984.0
754.7
139.2
757.4
1,202.2
1,194.8
4,109.9
3,038.1
289.4
701.4
81.0
800.2
666.3
124.0
710.2
1,210.0
1,212.8
4,166.6
3,098.3
288.2
699.0
81.1
824.3
665.6
123.2
705.5
1,217.8
1,229.6
4,206.5
3,147.3
287.5
690.6
81.2
866.5
677.2
117.8
711.1
1,222.3
1,238.5
4,233.3
3,181.1
286.3
684.7
81.3
863.6
687.3
129.9
724.3
1,229.5
1,247.5
4,290.9
3,234.7
287.8
686.6
81.9
895.3
707.4
135.7
731.2
1,209.9
1,251.0
4,351.9
3,291.9
289.1
688.6
82.3
931.8
726.4
138.7
738.1
1,202.7
1,251.6
4,400.6
3,339.2
289.2
689.7
82.5
984.0
754.7
139.2
757.4
17
18
19
20
21
22
By borrowing sector
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
State and local government
3,784.7
3,709.3
135.0
1,116.4
2,458.0
911.1
4,002.3
3,710.5
136.0
1,074.1
2,500.4
927.5
4,292.0
3,741.5
138.3
1,049.1
2,554.1
993.2
4,641.3
3,885.0
140.6
1,068.8
2,675.6
963.9
4,093.0
3,729.8
136.7
1,059.4
2,533.7
984.9
4,190.9
3,729.1
138.7
1,052.2
2,538.3
988.0
4,292.0
3,741.5
138.3
1,049.1
2,554.1
993.2
4,331.7
3,774.0
136.6
1,050.4
2,586.9
993.6
4,425.0
3,816.3
141.3
1,055.6
2,619.3
996.3
4,527.1
3,845.8
142.8
1,062.2
2,640.9
974.8
4,641.3
3,885.0
140.6
1,068.8
2,675.6
963.9
23 Foreign credit market debt held in
United States
298.8
310.9
357.8
345.8
332.0
3513
357.8
3403
339.2
338.8
345.8
Bonds
Bank loans n.e.c
Commercial paper
U.S. government and other loans
129.5
21.6
81.8
65.9
143.9
23.9
77.7
65.3
203.4
24.6
68.7
61.1
220.4
26.1
41.4
57.8
171.9
25.9
72.1
62.0
193.0
26.2
71.7
60.3
203.4
24.6
68.7
61.1
210.6
26.2
43.3
60.3
212.9
25.1
42.0
59.2
214.2
26.3
39.9
58.4
220.4
26.1
41.4
57.8
11,480.3
12,031.6
12,720.8
13,328.3
12,340.9
12,506.6
12,720.8
12,8273
12,972.2
13,119.2
13,3283
7.4
25
26
27
28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign
Financial sectors
29 Total credit market debt owed by
finandal sectors
30
31
32
33
34
35
36
37
38
39
By instrument
U.S. government-related
Government-sponsored enterprises securities
Mortgage pool securities
Loans from U.S. government
Private
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
By borrowing sector
40 Government-sponsored enterpnses
41 Federallyrelatedmortgage pools
42 Privatefinancialsectors
43 Commercial banks
44 Bank holding companies
45 Funding corporations
46 Savings institutions
47 Credit unions
48 Life insurance companies
49 Finance companies
50 Mortgage companies
51 Real estate investment trusts (REITs)
52 Issuers of asset-backed securities (ABSs)
2,752.1
3,004.7
3,297.3
3,722.4
3,096.6
3,204.7
3,297.3
3,4153
3,507.6
3,597.7
3,722.4
1,564.2
402.9
1,156.5
4.8
1,187.9
640.0
4.8
78.4
385.7
79.1
1,720.0
443.1
1,272.0
4.8
1,284.8
724.8
5.4
80.5
394.3
79.9
1,881.1
523.7
1,352.6
4.8
1,416.1
844.1
8.9
66.5
393.5
103.1
2,149.3
700.9
1,448.4
.0
1,573.2
944.9
8.8
50.7
442.8
125.9
1,774.5
468.4
1,301.3
4.8
1,322.2
774.8
6.0
73.3
375.9
92.1
1,845.2
510.3
1,330.1
4.8
1,359.5
810.5
7.6
69.2
373.2
98.9
1,881.1
523.7
1,352.6
4.8
1,416.1
844.1
8.9
66.5
393.5
103.1
1,954.5
563.7
1,390.8
.0
1,460.9
880.8
9.0
61.8
408.8
100.4
2,021.1
600.3
1,420.8
.0
1,486.6
904.5
9.1
54.1
410.3
108.5
2,075.9
638.3
1,437.6
.0
1,521.8
925.4
9.2
50.5
420.5
116.2
2,149.3
700.9
1,448.4
.0
1,573.2
944.9
8.8
50.7
442.8
125.9
407.7
1,156.5
1,187.9
65.0
112.3
139.1
94.6
.0
.0
393.0
22.2
13.6
329.1
447.9
1,272.0
1,284.8
73.8
114.6
161.6
87.8
.0
.0
389.4
30.2
13.9
391.7
528.5
1,352.6
1,416.1
79.5
123.4
169.9
99.0
.2
.2
390.5
29.2
17.4
473.2
700.9
1,448.4
1,573.2
89.5
131.8
200.9
111.7
.5
.6
440.8
16.3
19.1
527.8
473.2
1,301.3
1,322.2
76.6
120.2
166.5
93.4
.1
.2
373.8
32.0
14.4
422.3
515.1
1,330.1
1,359.5
77.9
120.3
166.3
96.8
.2
.1
380.0
31.8
15.8
443.8
528.5
1,352.6
1,416.1
79.5
123.4
169.9
99.0
.2
.2
390.5
29.2
17.4
473.2
563.7
1,390.8
1,460.9
78.4
124.2
190.6
97.6
.3
.3
401.9
23.8
17.7
494.9
600.3
1,420.8
1,486.6
82.1
126.8
191.1
99.0
.3
.3
414.2
19.3
18.3
504.0
638.3
1,437.6
1,521.8
87.5
129.6
200.1
102.7
.4
.3
420.9
17.5
18.8
514.5
700.9
1,448.4
1,573.2
89.5
131.8
200.9
111.7
.5
.6
440.8
16.3
19.1
527.8
All sectors
53 Total credit market debt, domestic and foreign....
54
55
56
57
58
59
60
61
U.S. government securities
Tax-exempt securities
Coiporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
14,232.3
15,0363
16,018.1
17,050.7
15,437.5
15,7113
16,018.1
16,242.6
16,479.8
16,716.9
17,050.7
4,335.7
1,108.6
1,856.5
3,924.8
797.4
785.9
565.9
857.5
4,795.5
1,139.7
2,023.1
4,049.3
803.0
776.6
579.0
870.2
5,212.8
1,217.8
2,277.0
4,215.5
866.5
768.4
580.0
880.1
5,641.6
1,202.7
2,416.9
4,409.4
984.0
831.6
623.5
941.1
4,970.9
1,202.2
2,141.5
4,116.0
800.2
765.5
572.0
869.1
5,087.7
1,210.0
2,216.3
4,174.2
824.3
761.0
568.2
869.6
5,212.8
1,217.8
2,277.0
4,215.5
866.5
768.4
580.0
880.1
5,342.2
1,222.3
2,329.9
4,242.4
863.6
775.4
582.0
884.9
5,416.5
1,229.5
2,364.9
4,300.1
895.3
786.6
587.9
898.9
5,508.6
1,209.9
2,390.5
4,361.1
931.8
803.2
599.2
912.7
5,641.6
1,202.7
2,416.9
4,409.4
984.0
831.6
623.5
941.1
this table also appear in the Board's Z.l (780) quarterly
1. Data in
tables L.2 through L.4.
http://fraser.stlouisfed.org/ For ordering address, see inside front cover.
Federal Reserve Bank of St. Louis
statistical release,
A44
1.60
Domestic Financial Statistics • June 1995
SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1
Billions of dollars except as noted, end of period
1993
Transaction category or sector
1991
1992
1993
1994
1994
Q2
Q3
Q4
Ql
Q2
Q3
Q4
CREDIT MARKET DEBT OUTSTANDING 2
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 Government-sponsored enterprises
11 Federally related mortgage pools
12 Monetary authority
13 Commercial banking
14
U.S. commercial banks
15
Foreign banking offices
16
Bank holding companies
17
Banks in U.S. affiliated areas
18 Funding corporations
19
Thrift institutions
20
Life insurance companies
21
Other insurance companies
22
Private pension funds
23
State and local governmentretirementfunds
24
Finance companies
25
Mortgage companies
26
Mutual funds
27
Closed-end funds
28
Money market funds
29
Real estate investment trusts (REITs)
30
Brokers and dealers
31
Asset-backed securities issuers (ABSs)
32
Bank personal trusts
14,232.3
15,0363
16,018.1
17,050.7
15,437.5
15,711.3
16,018.1
16,242.6
16,479.8
16,716.9
17,050.7
2,240.2
1,446.5
44.1
196.2
553.3
246.9
958.1
10,787.2
390.7
1,156.5
272.5
2,853.3
2,502.5
319.2
11.9
19.7
51.5
1,192.6
1,199.6
376.6
693.0
479.9
484.9
60.3
450.5
50.3
402.7
7.0
124.0
317.8
223.5
2,318.0
1,523.1
42.9
225.4
526.5
235.0
1,052.7
11,430.6
459.7
1,272.0
300.4
2,948.6
2,571.9
335.8
17.5
23.4
75.0
1,134.5
1,278.8
389.4
730.4
514.3
486.6
60.5
574.2
67.7
404.1
8.1
117.1
377.9
231.5
2,338.9
1,525.9
39.7
248.1
525.2
216.6
1,175.1
12,287.5
549.8
1,352.6
336.7
3,090.8
2,721.5
326.0
17.5
25.8
93.1
1,132.7
1,383.9
422.7
770.6
542.6
482.8
60.4
738.2
77.9
418.8
8.6
126.3
458.0
240.9
2,663.4
1,932.3
37.7
266.2
427.2
197.0
1,304.1
12,886.2
668.7
1,448.4
368.2
3,252.9
2,869.6
337.0
18.6
27.8
105.6
1,168.3
1,439.3
443.8
727.7
586.4
549.6
34.5
701.6
81.4
449.2
9.3
94.3
509.8
247.2
2,296.1
1,473.3
41.4
227.3
554.2
223.1
1,084.0
11,834.2
495.5
1,301.3
318.2
2,998.8
2,628.5
327.1
18.4
24.8
74.3
1,130.0
1,343.9
405.3
762.6
526.5
473.7
64.1
659.9
74.5
403.9
8.3
149.0
408.1
236.2
2,284.8
1,459.6
40.6
234.7
549.9
218.8
1,118.1
12,089.6
531.8
1,330.1
324.2
3,036.4
2,670.2
322.3
18.7
25.3
82.4
1,136.5
1,372.1
414.6
785.6
533.4
474.0
63.8
703.6
76.0
400.6
8.6
147.1
430.2
238.7
2,338.9
1,525.9
39.7
248.1
525.2
216.6
1,175.1
12,287.5
549.8
1,352.6
336.7
3,090.8
2,721.5
326.0
17.5
25.8
93.1
1,132.7
1,383.9
422.7
770.6
542.6
482.8
60.4
738.2
77.9
418.8
8.6
126.3
458.0
240.9
2,432.9
1,631.1
38.8
243.8
519.2
206.3
1,206.8
12,396.5
572.0
1,390.8
341.5
3,120.2
2,743.8
331.8
18.2
26.4
97.5
1,134.2
1,404.2
429.6
746.2
550.2
494.5
49.5
720.1
80.0
422.2
8.8
112.3
479.5
243.3
2,513.8
1,723.4
38.4
250.9
501.1
204.0
1,218.5
12,543.5
597.9
1,420.8
351.6
3,156.2
2,780.3
330.8
18.3
26.8
106.3
1,146.1
1,409.1
434.8
738.5
563.0
511.3
40.4
722.9
80.8
422.0
9.0
99.2
489.2
244.6
2,551.1
1,789.3
37.9
253.9
470.0
203.3
1,251.3
12,711.1
629.4
1,437.6
356.8
3,204.2
2,822.4
335.5
19.0
27.3
111.7
1,160.1
1,430.3
438.8
734.1
573.3
524.1
37.0
718.2
81.1
425.1
9.1
96.2
498.5
245.3
2,663.4
1,932.3
37.7
266.2
427.2
197.0
1,304.1
12,886.2
668.7
1,448.4
368.2
3,252.9
2,869.6
337.0
18.6
27.8
105.6
1,168.3
1,439.3
443.8
727.7
586.4
549.6
34.5
701.6
81.4
449.2
9.3
94.3
509.8
247.2
14,232.3
15,0363
16,018.1
17,050.7
15,437.5
15,711.3
16,018.1
16,242.6
16,479.8
16,716.9
17,050.7
55.4
10.0
16.3
405.7
4,138.3
96.4
5,044.8
1,020.6
2,350.7
488.4
539.6
355.8
289.6
813.9
188.9
935.9
71.2
608.3
2,992.2
51.8
8.0
16.5
433.0
4,516.5
132.8
5,059.1
1,134.4
2,293.5
415.2
543.6
392.3
280.1
1,042.1
217.3
977.4
79.6
629.6
3,160.2
53.4
8.0
17.0
468.2
4,974.7
177.7
5,152.4
1,251.7
2,223.2
391.7
558.9
457.8
269.1
1,429.3
279.3
1,026.4
84.2
660.9
3,402.3
53.2
8.0
17.6
488.4
5,061.2
263.8
5,261.5
1,241.4
2,183.4
412.4
605.3
536.9
282.1
1,463.0
276.2
1,102.0
86.5
655.6
3,687.8
53.9
8.0
16.7
450.2
4,730.8
145.2
5,097.1
1,168.0
2,255.0
401.1
549.8
450.4
272.8
1,225.8
234.7
989.7
81.2
637.6
3,248.3
55.6
8.0
16.8
459.4
4,887.8
166.9
5,088.5
1,181.9
2,236.6
389.4
547.9
472.5
260.2
1,342.4
254.5
1,009.6
82.8
651.2
3,314.6
53.4
8.0
17.0
468.2
4,974.7
177.7
5,152.4
1,251.7
2,223.2
391.7
558.9
457.8
269.1
1,429.3
279.3
1,026.4
84.2
660.9
3,402.3
56.4
8.0
17.1
473.2
4,923.0
204.2
5,158.9
1,220.5
2,233.8
382.6
576.2
472.7
273.2
1,438.7
282.7
1,023.6
89.0
655.3
3,510.9
54.9
8.0
17.3
475.2
4,915.8
223.8
5,180.5
1,229.7
2,214.1
379.0
570.3
510.6
276.8
1,443.6
278.0
1,045.7
82.4
640.2
3,571.1
55.5
8.0
17.5
481.2
5,045.5
243.4
5,198.2
1,205.4
2,198.9
402.9
579.9
536.4
274.7
1,505.7
263.3
1,076.6
85.4
656.8
3,662.8
53.2
8.0
17.6
488.4
5,061.2
263.8
5,261.5
1,241.4
2,183.4
412.4
605.3
536.9
282.1
1,463.0
276.2
1,102.0
86.5
655.6
3,687.8
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
33 Total credit market debt
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Other liabilities
Official foreign exchange
Special drawing rights certificates
Treasury currency
Life insurance reserves
Pension fund reserves
Interbank claims
Deposits at financial institutions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Security credit
Trade debt
Taxes payable
Investment in bank personal trusts
Miscellaneous
53 Total liabilities
29,609.6
31360.1
33,751.8
35,475.6
32,356.5
33,049.4
33,751.8
34,083.7
34,416.5
35,016.8
35,475.6
Financial assets not included in liabilities (+)
54 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncorporate business
22.3
4,863.6
2,444.4
19.6
5,462.9
2,411.5
20.1
6,186.5
2,421.7
21.1
6,048.8
2,485.0
20.0
5,683.7
2,407.1
20.3
5,941.7
2,420.3
20.1
6,186.5
2,421.7
20.4
6,052.2
2,460.2
20.8
5,877.7
2,473.6
21.0
6,135.1
2,482.9
21.1
6,048.8
2,485.0
Floats not included in assets (-)
57 U.S. government checkable deposits
58 Other checkable deposits
59 Trade credit
3.8
40.4
-129.3
6.8
42.0
-124.6
5.6
40.7
-101.7
3.4
38.0
-102.3
3.5
41.6
-135.0
2.2
33.7
-130.4
5.6
40.7
-101.7
.3
36.3
-121.2
.9
38.7
-130.7
1.2
30.6
-127.2
3.4
38.0
-102.3
-4.8
-4.2
9.2
17.8
-330.7
-4.9
-9.3
38.1
25.2
-398.4
-5.1
-4.7
120.2
26.2
-477.2
-5.4
-6.5
162.3
25.1
-519.4
-5.0
-5.7
108.0
24.3
-436.1
-5.1
-7.8
132.6
24.3
-480.5
-5.1
-4.7
120.2
26.2
-477.2
-5.2
-7.7
133.4
15.3
-491.2
-5.2
-7.4
160.0
21.7
-461.4
-5.3
-3.5
186.1
21.0
-481.2
-5.4
-6.5
162.3
25.1
-519.4
37,337.6
39,679.1
42,776.1 44,435.1
40,871.8
41,862.8
42,776.1
43,056.7
43,171.9
44,034.1
44,435.1
60
61
62
63
64
Liabilities not identified as assets (—)
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous
65 Total identified to sectors as assets
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release,
tables L.6 and L.7. For ordering address, see inside front cover.
2. Excludes corporate equities and mutual fund shares,
Selected Measures
2.10
NONFINANCIAL BUSINESS ACTIVITY
A45
Selected Measures
Monthly data seasonally adjusted, and indexes 1987 = 100, except as noted
1995
1994
1992
Measure
1994
1993
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.r
Feb.r
Mar.
1 Industrial production 1
107.6
112.0
118.1
118.2
119.1
119.0
119.5
120.3
121.7
122.2
122.3
121.9
Market groupings
? Products, total
3 Final, total
Consumer goods
4
S
6
7 Materials
106.5
109.0
105.9
113.4
98.8
109.2
110.7
113.4
109.4
119.3
102.4
114.1
115.9
118.4
113.2
126.5
108.lr
121.5
116.2
118.5
113.3
126.4
109.1
121.4
116.7
119.2
113.8
127.5
109.2
122.8
116.4
118.9
113.0
128.0
108.6
122.9
116.9
119.2
113.0
128.8
109.9
123.4
117.5
119.8
113.9
128.9
110.6
124.6
118.7
121.2
115.5r
130. r
110.9r
126.3
119.3
121.9
116.1
130.8
111.2
126.6
119.3
122.0
116.1
131.0
111.1
126.9
118.8
121.4
115.2
131.1
110.9
126.7
108.0
112.9
119.7
119.8
120.9
120.9
121.5
122.6
124.2r
124.7
124.5
124.4
83.3
83.8
83.6
83.8
84.4
85.2
85.3
84.9
84.5
110.0
109.0
107.0
111.0
101.0
104.0
111.0
108.0
Industry groupings
8 Manufacturing
2
9 Capacity utilization, manufacturing (percent) ..
3
79.2
83.4
80.9
r
97.7
104.4
108.3
109.0
11 Nonagricultural employment, total4
Goods-producing, total
1?
13
Manufacturing, total
Manufacturing, production workers
14
15
Service-producing
16 Personal income, total
17 Wages and salary disbursements
Manufacturing
18
19 Disposable personal income5
20 Retail sales5
106.5
94.2
95.3
94.9
110.5
135.6
131.6
118.0
137.0
126.4
108.4
94.3
94.8
94.9
112.9
141.4
136.2
120.0
142.5
134.7
111.3
95.6
95.1
96.1
116.3
150.0
145.0
126.0
150.8
145.2
111.4
95.6
95.0
96.0
116.5
150.0
145.2
125.6
150.9
144.4
111.7
95.8
95.2
96.3
116.8
150.7
145.5
126.2
151.6
146.5
112.0
95.9
95.3
96.4
117.1
151.7
146.4
126.7
152.6
147.6
112.2
96.1
95.5
96.7
117.3
153.7
148.2
128.8
154.8
149.3
112.7
96.6
95.7
97.1
117.8
153.7
148.1
127.9
154.7
149.8
112.9
96.8
95.9
97.3
118.1
154.7r
149.0
128.6r
155.8r
150.0
113.1
97.1
96.2
97.6
118.2
155.9
150.1
129.1
156.8
150.7
113.4
97.0
96.3
97.8
118.6
156.7
150.6
131.3
157.6
149.2
113.6
97.2
96.2
97.8
118.8
n.a.
n.a.
n.a.
n.a.
149.5
Prices6
Consumer (1982 84=100)
22 Producer finished goods (1982=100)
140.3
123.2
144.5
124.7
148.2
125.5
148.4
126.0
149.0
126.5
149.4
125.6
149.5
125.8
149.7
126.1
149.7
126.2
150.3
126.5
150.9
126.9
151.4
126.9
10 Construction contracts
covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current Business.
6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the
price indexes can be obtained from the U.S. Department of Labor, Bureau of Labor
Statistics, Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for
series mentioned in notes 3 and 6, can also be found in the Survey of Current Business.
Figures for industrial production for the latest month are preliminary, and many figures
for the three months preceding the latest month have been revised. See "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June
1990), pp. 411-35. See also "Industrial Production Capacity and Capacity Utilization
since 1987," Federal Reserve Bulletin, vol. 79 (June 1993), pp. 590-605.
1. Data in this table also appear in the Board's G.17 (419) monthly statistical release.
For the ordering address, see the inside front cover. The latest historical revision of the
industrial production index and the capacity utilization rates was released in November
1994. See "Industrial Production and Capacity Utilization: A Revision," Federal Reserve
Bulletin, vol. 81 (January 1995), pp. 16-26. For a detailed description of the industrial
production index, see "Industrial Production: 1989 Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the Federal
Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering, from McGraw-Hill Information Systems Company, F.W.
Dodge Division.
4. Based on data from U.S. Department of Labor, Employment and Earnings. Series
2.11
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted except as noted
1995
1994
Category
1992
1993
1994
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.r
Feb.r
Mar.
131,086
131,291
131,646
131,718
131,725
132,136
132,308
132,511
120,903
3,500
121,038
3,532
121,064
3,575
121,469
3,656
121,576
3,698
HOUSEHOLD SURVEY DATA 1
1 Civilian labor force2
Employment
3
Agriculture
Unemployment
5
Rate (percent of civilian labor force)
126,982
128,040
131,056
114,391
3,207
116,232
3,074
119,651
3,409
119,761
3,436
120,233
3,411
120,647
3,494
9,384
7.4
8,734
6.8
7,996
6.1
7,889
6.0
7,647
5.8
7,505
5.7
7,315
5.6
7,155
5.4
7,498
5.7
7,183
5.4
7,237
5.5
108,604
110,525
113,423
113,914
114,186
114,348
114,882
115,113
115,282
115,627
115,830
18,104
635
4,492
5,721
25,354
6,602
29,052
18,653
18,003
611
4,642
5,787
25,675
6,712
30,278
18,817
18,064
604
4,916
5,842
26,362
6,789
31,805
19,041
18,095
603
4,942
5,866
26,484
6,801
32,036
19,087
18,096
605
4,972
5,865
26,565
6,794
32,138
19,151
18,142
599
4,974
5,867
26,629
6,786
32,231
19,120
18,183
600
5,044
5,888
26,772
6,791
32,414
19,190
18,226
597
5,050
5,911
26,887
6,785
32,506
19,151
18,271
595
5,092
5,913
26,939
6,779
32,564
19,129
18,289
592
5,057
5,930
27,035
6,778
32,781
19,165
18,285
592
5,115
5,941
27,033
6,795
32,914
19,155
ESTABLISHMENT SURVEY DATA
6 Nonagricultural payroll employment4
9 Contract construction
10 Transportation and public utilities
11 Trade
14 Government
1. Beginning January 1994, reflects redesign of current population survey and population controls from the 1990 census.
2. Persons sixteen years of age and older, including Resident Armed Forces. Monthly
figures are based on sample data collected during the calendar week that contains the
twelfth day; annual data are averages of monthly figures. By definition, seasonality does
not exist in population figures.
3. Includes self-employed, unpaid family, and domestic service workers.
4. Includes all full- and part-time employees who worked during, or received pay for,
the pay period that includes the twelfth day of the month; excludes proprietors, selfemployed persons, household and unpaid family workers, and members of the armed
forces. Data are adjusted to the March 1992 benchmark, and only seasonally adjusted data
are available at this time.
SOURCE. Based on data from U.S. Department of Labor, Employment and Earnings.
A46
2.12
Domestic Nonfinancial Statistics • June 1995
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1994
1994
1995
1994
1995
1995
Series
Q2
Q3
Q4
Q
L
Q2
Q3
Q4
Q
L
Capacity (percent of 1987 output)
Output (1987 = 100)
Q2
Q3
Q4
Q
L
Capacity utilization rate (percent)2
1 Total industry
117.4
118.8
120.5
122.1
140.0
140.9
141.9
143.1
83.8
84.3
84.9
2 Manufacturing
118.9
120.5
122.7
124.5
143.1
144.2
145.3
146.6
83.1
83.6
84.5
84.9
Primary processing3
Advanced processing4
114.7
120.9
115.9
122.7
118.4
124.8
119.7
126.8
131.0
148.7
131.6
150.0
132.3
151.3
133.2
152.9
87.6
81.3
88.1
81.8
89.5
82.5
89.9
83.0
5
6
7
8
9
10
11
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonfenous
Industrial machinery and equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment . . .
124.1
105.4
114.4
120.2
106.9
157.6
156.8
133.3
126.5
106.6
114.1
115.8
111.4
162.6
163.5
135.0
129.4
107.9
119.4
123.3
113.9
167.5
169.4
141.5
131.7
109.4
120.2
125.0
113.8
171.6
173.7
146.3
150.2
115.5
125.0
127.9
120.5
179.0
179.9
158.5
151.6
116.0
125.2
128.4
120.5
181.6
184.1
160.3
153.1
116.5
125.4
128.8
120.5
184.1
188.5
162.2
154.9
117.1
126.7
130.9
120.9
187.8
193.8
164.2
82.6
91.2
91.6
93.9
88.7
88.0
87.1
84.1
83.4
91.9
91.1
90.2
92.4
89.6
88.8
84.2
84.6
92.7
95.2
95.8
94.5
91.0
89.9
87.2
85.0
93.4
94.9
95.5
94.2
91.4
89.6
89.1
84.2
82.1
80.8
80.4
129.8
129.4
129.1
128.8
64.9
63.5
62.6
62.5
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
113.1
108.7
115.9
123.6
124.3
106.3
113.8
108.9
118.5
124.4
126.9
104.9
115.3
111.6
120.6
126.0
130.2
106.5
116.6
112.2
120.0
129.4
135.5
121.4
127.1
153.3
130.8
115.2
136.3
122.0
127.7
154.7
131.6
115.1
137.1
122.7
128.4
156.2
115.1
83.9
90.1
91.6
81.4
95.6
92.2
84.0
89.7
93.2
81.1
97.0
91.1
84.6
91.4
94.4
81.4
98.9
92.5
85.0
91.4
93.4
82.9
108.3
134.8
120.8
126.6
151.9
130.0
115.3
94.1
100.7
117.2
118.0
100.1
118.1
118.2
99.2
116.3
117.3
100.0
117.0
118.2
111.5
135.0
132.6
111.5
135.4
133.1
111.4
135.8
133.6
111.4
136.3
134.1
90.3
86.8
89.0
89.8
87.2
88.8
89.0
85.6
87.8
89.7
85.8
88.1
1973
1975
Previous cycle5
High
Low
High
3
4
20 Mining
21 Utilities
22 Electric
Low
Latest cycle6
High
Low
1994
Mar.
1994
Oct.
85.3
1995
Nov.
Dec/
Jan/
Feb/
Mar.P
84.9
Capacity utilization rate (percent] 2
1 Total industry
89.2
72.6
87.3
71.8
84.9
78.0
83.7
84.4
84.8
85.5
85.6
85.4
2 Manufacturing
88.9
70.8
87.3
70.0
85.2
76.6
82.9
83.8
84.4
85.2
85.3
84.9
84.5
92.2
87.5
68.9
72.0
89.7
86.3
66.8
71.4
89.0
83.5
77.9
76.2
86.8
81.3
88.3
82.1
89.5
82.4
90.8
83.0
90.3
83.3
89.7
83.0
89.5
82.6
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and
equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
88.8
90.1
100.6
105.8
92.9
68.5
62.2
66.2
66.6
61.3
86.9
87.6
102.4
110.4
90.5
65.0
60.9
46.8
38.3
62.2
84.0
93.3
92.8
95.7
88.7
73.7
76.3
74.0
72.1
75.0
82.3
90.3
89.8
91.4
87.9
83.9
91.7
92.5
92.4
92.7
84.3
91.6
95.0
94.6
95.6
85.4
94.7
98.0
100.3
95.2
85.4
94.3
96.0
96.5
95.5
85.0
93.2
94.5
94.9
94.1
84.5
92.8
94.1
95.1
92.9
96.4
87.8
93.4
74.5
63.8
51.1
92.1
89.4
93.0
64.9
71.1
44.5
84.0
84.9
85.1
72.5
76.6
57.6
86.9
86.1
88.2
90.9
89.3
85.7
91.0
89.6
87.2
91.1
90.8
88.8
92.0
90.3
89.4
91.3
89.7
89.8
90.9
89.0
88.1
77.0
66.6
81.1
66.9
88.4
79.4
64.4
62.6
62.6
62.5
62.3
62.5
62.6
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
87.9
92.0
96.9
87.9
102.0
96.7
71.8
60.4
69.0
69.9
50.6
81.1
87.0
91.7
94.2
85.1
90.9
89.5
76.9
73.8
82.0
70.1
63.4
68.2
86.7
92.1
94.8
85.9
97.0
88.5
80.4
78.9
86.5
78.9
74.8
83.7
83.8
89.7
91.7
81.6
94.3
89.6
83.9
90.8
93.2
80.2
93.3
90.4
84.6
91.7
95.0
81.6
98.5
93.5
85.2
91.8
95.2
82.5
105.0
93.7
85.4
92.7
93.5
83.4
105.6
93.4
85.0
90.8
93.5
82.7
84.7
90.8
93.3
82.5
93.4
95.6
94.4
95.6
99.0
88.4
82.5
82.7
96.6
88.3
88.3
80.6
76.2
78.7
86.5
92.6
94.8
86.0
83.2
86.5
90.2
87.5
88.6
89.0
86.4
88.3
88.2
85.8
88.0
89.8
84.7
87.1
89.6
85.3
87.5
90.0
87.3
89.7
89.5
85.0
87.1
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Primary processing3
Advanced processing4
20 Mining
21 Utilities
22 Electric
1. Data in this table also appear in the Board's G.17 (419) monthly statistical release.
For the ordering address, see the inside front cover. The latest historical revision of the
industrial production index and the capacity utilization rates was released in November
1994. See "Industrial Production and Capacity Utilization: A Revision," Federal Reserve
Bulletin, vol. 81 (January 1995), pp. 16-26. For a detailed description of the industrial
production index, see "Industrial Production: 1989 Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally
adjusted index of industrial production to the corresponding index of capacity.
3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic
materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and
glass; primary metals; and fabricated metals.
4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing and publishing; chemical products such as drugs and toiletries; agricultural chemicals;
leather and products; machinery; transportation equipment; instruments; and miscellaneous manufactures.
5. Monthly highs, 1978-80; monthly lows, 1982.
6. Monthly highs, 1988-89; monthly lows, 1990-91.
Selected Measures
2.13
INDUSTRIAL PRODUCTION
A47
Indexes and Gross Value1
Monthly data seasonally adjusted
portion
1995
1994
1992
Group
1994
avg.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov/
Dec/
Jan/
Feb/
Mar.p
Index (1987 = 100)
MAJOR MARKETS
1 Total index
? Products
Final products
4
Consumer goods, total
Durable consumer goods
Automotive products
6
Autos and trucks
7
Autos, consumer
8
9
Trucks, consumer
10
Auto parts and allied goods
11
Other
Appliances televisions and air
17,
conditioners
Carpeting and furniture
N
Miscellaneous home goods
14
Nondurable consumer goods
IS
Foods and tobacco
16
Clothing
17
Chemical products
18
19
Paper products
70
Energy
Fuels
71
Residential utilities
22
74
?6
77
78
79
30
31
3?
33
Business equipment
Information processing and related
Computer and office equipment
Industrial
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
100.0
118.1
116.6
116.7
117.4
118.0
118.2
119.1
119.0
119.5
120.3
121.7
122.2
1223
121.9
60.9
46.6
28.5
5.5
2.5
1.6
.9
.7
.9
3.0
115.9
118.4
113.2
119.4
125.5
125.4
94.9
180.7
123.2
114.1
114.7
117.4
112.9
119.0
126.4
127.7
98.8
179.6
121.1
112.7
114.7
117.3
112.3
117.8
124.1
125.0
96.0
177.2
119.8
112.5
115.3
117.8
112.8
116.4
120.1
118.1
90.4
168.0
121.9
113.2
115.9
118.4
113.5
118.0
121.0
118.5
89.6
170.7
123.8
115.4
116.2
118.5
113.3
118.0
119.5
115.0
86.5
166.6
126.6
116.7
116.7
119.2
113.8
120.7
124.9
126.0
91.7
189.0
120.0
117.1
116.4
118.9
113.0
119.1
123.8
122.5
90.2
181.5
123.9
115.2
116.9
119.2
113.0
119.4
124.5
122.3
92.9
175.5
126.6
115.2
117.5
119.8
113.9
120.5
127.1
126.5
94.0
185.8
125.7
115.0
118.7
121.2
115.5
123.4
131.1
131.4
100.5
187.3
127.8
116.8
119.3
121.9
116.1
124.2
131.6
132.7
103.6
184.6
126.5
117.9
119.3
122.0
116.1
123.7
133.2
134.8
103.6
191.0
127.1
115.6
118.8
121.4
115.2
121.3
130.7
131.4
103.1
181.7
126.7
113.3
.7
.8
1.5
23.0
10.3
2.4
4.5
2.9
2.9
.9
2.1
126.0
105.0
113.8
111.8
110.5
95.9
129.7
104.7
113.9
106.7
116.8
124.3
103.1
112.8
111.5
109.8
95.7
130.3
103.9
114.5
105.8
118.1
120.7
104.5
113.2
111.0
110.2
96.4
128.4
105.1
110.0
108.3
110.5
125.6
103.3
113.1
112.0
110.9
97.2
129.5
105.6
112.4
107.4
114.4
132.8
103.6
114.2
112.5
110.5
96.3
131.4
105.8
115.5
106.5
119.3
129.7
108.4
115.3
112.2
110.6
96.5
131.1
105.2
114.3
105.8
117.8
135.1
106.9
114.6
112.2
111.2
95.9
129.8
105.9
113.1
105.8
116.1
130.2
104.1
114.6
111.7
111.9
95.5
127.5
105.2
110.5
107.4
111.8
124.9
107.4
114.9
111.5
112.2
96.2
127.2
103.6
109.8
103.9
112.2
126.9
105.9
114.5
112.4
112.4
96.2
130.5
104.6
110.6
109.8
110.7
131.5
108.0
114.9
113.7
114.3
96.8
134.0
104.3
109.6
107.4
110.3
130.4
110.2
116.4
114.2
114.8
96.2
136.5
103.4
109.7
107.4
110.5
124.7
107.9
115.6
114.4
115.1
94.8
135.0
103.8
112.6
108.8
114.1
120.1
106.3
113.9
113.8
114.7
94.1
135.2
103.4
110.2
113.8
108.5
18.1
14.0
5.7
1.5
4.0
2.6
1.2
1.7
3.4
.5
.2
126.5
146.7
176.4
284.2
120.9
137.9
148.0
129.4
71.0
90.8
137.3
124.3
142.6
170.0
270.9
117.8
139.3
148.1
123.3
73.7
92.1
135.6
124.9
143.5
170.2
270.8
119.2
138.0
145.9
127.1
73.6
93.2
132.4
125.4
144.5
171.8
271.6
120.7
135.3
140.0
129.4
72.4
94.6
135.2
125.8
145.5
173.7
276.5
120.6
136.1
141.7
130.5
71.3
94.2
137.8
126.4
146.9
177.1
282.6
122.1
132.6
138.2
132.6
69.9
93.7
133.3
127.5
148.9
179.7
288.9
122.3
137.9
149.4
133.5
69.2
89.6
134.5
128.0
149.5
181.1
295.8
123.0
136.8
147.7
133.3
68.8
93.9
138.4
128.8
150.9
183.2
300.5
124.4
137.1
149.2
134.3
68.7
88.3
142.0
128.9
151.0
184.2
305.7
124.1
137.5
151.6
133.1
69.0
86.0
143.1
130.1
152.6
188.3
311.9
124.1
137.8
152.6
133.1
68.7
86.0
153.6
130.8
153.7
188.6
317.5
125.8
139.7
157.2
133.9
68.6
86.7
153.6
131.0
154.1
189.1
324.8
126.4
140.8
158.5
132.8
67.9
89.1
147.4
131.1
154.6
191.6
331.3
126.5
138.8
155.4
132.0
67.8
85.7
34
35
36
Intermediate products, total
Construction supplies
Business supplies
14.3
5.3
9.0
108.1
106.8
109.1
106.3
103.2
108.4
106.9
104.7
108.5
107.7
106.1
108.8
108.5
106.4
110.1
109.1
107.9
110.0
109.2
108.2
109.9
108.6
108.6
108.7
109.9
109.7
110.1
110.6
109.8
111.3
110.9
111.6
110.7
111.2
112.1
110.8
111.1
111.4
111.1
110.9
111.5
110.7
37
38
39
40
41
4?
43
44
45
46
47
48
49
50
Durable goods materials
Durable consumer parts
Equipment parts
Other
Basic metal materials
Nondurable goods materials
Textile materials
Paper materials
Chemical materials
Other
Energy materials
Primary energy
Converted fuel materials
39.1
20.6
3.9
7.5
9.1
3.0
8.9
1.1
1.8
4.0
2.0
9.6
6.3
3.3
121.5
131.2
132.2
143.1
121.3
119.7
118.4
105.3
118.7
123.2
116.9
105.2
100.3
114.9
119.5
128.3
131.5
137.9
119.3
117.6
116.7
104.0
117.8
120.6
115.6
105.0
100.5
114.0
119.7
129.2
130.1
139.6
120.4
119.7
115.9
104.4
116.1
120.6
113.3
104.8
100.9
112.5
120.5
129.8
129.7
140.5
121.2
120.0
118.2
104.2
118.9
123.8
114.8
104.6
100.4
112.8
121.2
130.0
129.2
142.1
120.8
119.6
118.1
104.8
118.4
122.9
116.5
106.7
100.2
119.9
121.4
130.9
130.4
143.8
121.1
118.8
118.6
104.8
117.5
123.4
118.6
105.2
100.3
114.9
122.8
132.6
133.2
145.2
122.3
119.3
120.3
105.7
122.5
124.8
118.1
106.1
100.9
116.3
122.9
133.3
133.1
146.7
122.8
121.1
119.8
105.9
121.5
124.0
118.2
105.6
100.8
115.1
123.4
134.2
133.8
149.0
122.7
121.3
120.3
106.9
120.5
124.6
119.5
105.2
100.3
115.1
124.6
136.0
135.8
150.7
124.6
123.2
121.5
110.3
122.1
125.9
119.3
104.9
100.7
113.4
126.3
138.6
139.7
152.3
127.3
126.0
122.8
108.7
121.3
127.5
123.4
105.3
101.7
112.3
126.6
139.3
139.6
153.7
127.8
126.1
122.6
109.8
120.8
128.2
120.9
105.4
101.7
112.9
126.9
139.1
139.7
155.0
126.5
124.5
122.9
109.0
122.0
129.2
119.8
106.5
102.5
114.5
126.7
139.1
138.3
156.0
126.3
124.4
123.2
109.6
122.2
129.4
120.2
105.3
101.5
113.0
97.2
95.2
117.6
117.1
116.1
115.5
116.2
115.7
117.1
116.6
117.7
117.3
118.1
117.7
118.7
118.2
118.6
118.0
119.1
118.5
119.8
119.2
121.1
120.5
121.6
120.9
121.6
121.0
121.3
120.7
98.3
26.9
25.6
115.4
112.4
113.1
114.0
111.9
112.7
114.1
111.5
112.5
114.8
112.4
112.8
115.4
113.2
113.2
115.5
113.2
113.2
116.4
113.0
113.8
116.1
112.4
113.3
116.6
112.4
113.3
117.4
113.1
114.2
118.7
114.5
116.2
119.1
115.0
116.8
119.1
114.9
116.5
118.7
114.1
115.7
SPECIAL AGGREGATES
51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts
53 Total excluding computer and office
54 Consumer goods excluding autos and trucks .
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding computer and
office equipment
58 Materials excluding energy
12.8
146.5
142.0
143.2
144.8
145.7
147.7
148.8
149.5
151.0
150.9
152.5
153.3
153.6
154.4
12.5
29.5
130.7
127.3
127.6
124.8
128.5
125.1
129.4
126.2
130.0
126.4
131.1
127.2
132.7
128.8
132.7
129.2
133.8
129.9
133.6
131.6
134.7
133.8
135.5
134.2
135.3
134.2
135.3
134.3
A46
2.13
Domestic Nonfinancial Statistics • June 1995
INDUSTRIAL PRODUCTION
Group
Indexes and Gross Value1—Continued
1992
proportion
SIC
code
1994
avg.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.r
Feb.'
Mar.p
Index (1987 = 100)
MAJOR INDUSTRIES
59 Total index
100.0
118.1
116.6
116.7
117.4
118.0
118.2
119.1
119.0
119.5
1203
121.7
122.2
1223
121.9
85.5
26.5
59.0
119.7
115.3
121.8
118.0
113.3
120.2
118.4
114.0
120.5
119.0
115.2
120.8
119.3
114.7
121.5
119.8
115.3
121.9
120.9
116.3
123.1
120.9
116.2
123.1
121.5
116.6
123.8
122.6
118.4
124.6
124.2
120.3
126.0
124.7
120.0
126.9
124.5
119.5
126.9
124.4
119.5
126.7
45.1
2.0
1.4
125.5
106.0
111.4
122.9
104.0
107.7
123.7
103.9
110.2
124.0
106.0
110.1
124.6
106.2
111.8
125.2
106.8
114.0
127.0
105.5
115.5
127.2
107.6
112.4
128.0
106.7
114.8
129.1
106.7
113.0
131.2
110.4
114.7
131.8
110.1
116.0
131.7
109.1
115.3
131.6
108.9
114.3
2.1
3.1
1.7
.1
1.4
5.0
104.9
114.5
118.3
107.9
109.3
110.8
103.7
112.1
116.7
106.0
106.0
108.5
105.0
114.8
121.5
105.3
106.2
109.6
105.5
114.8
120.9
105.7
106.9
110.0
104.4
113.7
118.2
106.3
107.6
110.2
104.3
112.7
116.1
104.7
108.0
111.7
105.8
113.5
113.0
107.0
113.6
112.4
105.8
116.0
118.2
109.9
112.7
111.6
105.4
115.9
118.8
109.0
111.8
112.2
106.9
119.1
121.9
114.2
115.2
113.3
110.1
123.0
129.3
121.9
114.8
115.3
108.2
121.4
125.9
114.6
115.3
116.3
106.8
119.7
124.2
117.2
113.7
115.9
107.4
119.5
124.7
79
80
Durable goods
"24
Lumber and products
25
Furniture and fixtures
Stone, clay, and glass
products
32
Primary metals
33
331,2
Iron and steel
Raw steel
333-6,9
Nonferrous
34
Fabricated metal products...
Industrial machinery and
35
equipment
Computer and office
357
equipment
36
Electrical machineiy
37
Transportation equipment.. .
371
Motor vehicles and parts .
371
Autos and light trucks .
Aerospace and
miscellaneous
transportation
372-6,9
equipment
Instruments
38
39
Miscellaneous
81
82
83
84
85
86
87
88
89
90
91
Nondurable goods
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing
Chemicals and products . . . .
Petroleum products
Rubber and plastic products .
Leather and products
60 Manufacturing
61
Primary processing
62
Advanced processing
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
92 Mining
Metal
93
94
Coal
95
Oil and gas extraction
96
Stone and earth minerals
97 Utilities
98
Electric
Gas
99
11Z5
115.4
7.9
159.9
154.0
156.1
157.7
158.9
160.6
162.6
164.6
166.5
167.5
168.5
171.3
171.4
172.1
1.7
7.3
9.6
4.8
2.5
284.2
160.0
109.7
137.9
131.9
270.9
152.6
110.7
138.8
134.7
270.8
154.3
109.5
136.2
131.7
271.6
156.5
107.6
131.6
124.4
276.5
159.5
107.5
132.2
124.6
282.6
161.5
105.7
129.6
120.8
288.9
164.1
109.5
138.1
131.9
295.8
165.0
108.8
137.4
128.4
300.5
166.9
109.0
138.4
128.6
305.7
168.8
110.5
141.4
132.7
311.9
172.5
111.9
144.6
138.4
317.5
173.2
112.5
146.1
140.0
324.8
173.8
113.3
147.5
142.0
331.3
174.2
112.2
145.4
138.8
4.8
5.4
1.3
82.6
107.4
116.2
83.8
106.9
114.1
84.1
106.6
115.2
84.6
106.4
115.4
83.8
106.8
115.8
82.8
108.5
118.6
82.3
108.7
117.1
81.4
108.0
117.0
80.8
108.2
118.4
80.9
107.7
118.6
80.6
108.9
117.6
80.3
108.5
119.1
80.5
107.8
120.2
80.5
108.5
118.7
"20
21
22
23
26
27
28
29
30
31
40.5
9.4
1.6
1.8
2.2
3.6
6.8
9.9
1.4
3.5
.3
113.3
112.8
96.5
109.0
96.3
117.4
101.1
124.1
105.3
133.5
85.8
112.5
112.9
93.0
107.9
95.7
115.7
101.3
123.1
103.4
130.9
87.0
112.4
111.9
98.1
108.6
96.2
114.4
101.7
122.4
107.5
130.8
87.6
113.4
112.8
98.5
108.9
97.1
116.7
101.6
124.0
107.0
132.4
85.9
113.4
112.8
95.9
108.7
97.0
116.6
102.4
124.4
104.5
132.8
85.5
113.6
113.4
93.7
109.4
97.0
116.6
102.1
124.7
104.3
134.5
86.3
114.0
113.7
96.2
109.0
96.8
120.2
101.5
124.7
105.2
134.5
85.5
113.7
114.6
96.1
108.3
96.8
118.7
100.9
123.7
105.3
134.7
85.4
114.2
113.4
104.5
110.6
96.9
118.9
101.4
123.8
104.0
136.7
85.6
115.4
113.9
101.5
112.0
96.8
121.3
102.0
126.2
107.6
138.3
84.5
116.4
114.7
108.0
112.2
97.0
121.7
101.6
128.0
107.7
140.0
84.4
116.8
115.6
107.8
113.5
96.6
119.8
101.3
129.9
107.4
140.6
82.9
116.6
115.7
109.3
111.5
95.7
120.1
101.2
129.1
107.5
140.7
82.7
116.4
115.6
108.1
111.7
94.5
120.0
100.9
129.3
110.1
139.3
82.6
10
12
13
14
6.8
.4
1.0
4.7
.6
99.8
159.4
112.0
93.0
107.0
100.5
165.2
117.7
92.9
104.7
100.7
157.0
118.3
93.2
105.9
100.7
156.4
111.5
94.3
108.1
100.6
162.8
113.4
93.8
105.6
100.1
159.5
108.6
93.9
107.9
100.0
156.6
111.4
93.5
106.6
100.1
160.0
110.7
93.7
106.7
99.2
158.9
110.2
92.2
109.3
98.3
154.3
110.1
91.2
109.9
100.1
156.2
117.8
92.2
109.9
99.8
158.4
117.9
91.2
113.6
100.3
158.3
118.6
91.9
112.2
99.8
158.2
116.9
91.2
114.8
4913PT
492,3PT
7.7
6.1
1.6
118.1
117.8
119.2
117.9
117.2
120.5
114.7
116.4
107.9
115.8
116.2
114.1
121.1
121.4
120.0
119.0
119.0
118.9
118.8
118.4
120.4
116.5
117.1
114.2
117.2
117.9
114.4
116.5
117.5
112.3
115.2
116.5
109.8
116.0
117.2
111.3
118.9
120.3
113.3
115.9
116.9
111.7
80.7
118.6
116.7
117.3
118.2
118.6
119.2
119.8
119.9
120.5
121.5
122.9
123.4
123.2
123.1
83.8
116.5
114.9
115.3
115.9
116.2
116.6
117.6
117.5
118.1
119.1
120.6
121.1
120.8
120.6
SPECIAL AGGREGATES
100 Manufacturing excluding motor
vehicles and parts
101 Manufacturing excluding office
and computing machines . ..
1.707.0 2.006.2 1.985.6 1.985.8 1.990.7 2.002.5 2.002.1 2.020.2 2.015.6 2.020.4 2.037.2 2.056.5 2.062.6 2.065.9 2.060.8
Gross value (billions of 1987 dollars, annual rates)
MAJOR MARKETS
102 Products, total
103 Final
104
Consumer goods
105
Equipment
106 Intermediate
1,314.6
866.6
448.0
392.5
1,576.3
982.5
593.8
429.8
1,563.6
981.3
582.3
422.0
1,559.9
976.0
583.9
425.9
1,561.7
977.1
584.5
429.0
1. Data in this table also appear in the Board's G.17 (419) monthly statistical release.
For the ordering address, see the inside front cover. The latest historical revision of the
industrial production index and the capacity utilization rates was released in November
1994. See "Industrial Production and Capacity Utilization: A Revision," Federal Reserve
1,571.1
983.0
588.1
431.4
1,569.3
979.0
590.3
432.9
1,586.6
987.3
599.3
433.5
1,584.2
981.5
602.7
431.4
1,584.4
977.0
607.3
436.0
1,598.4
988.5
609.9
438.8
1,615.1
999.6
615.5
441.4
1,621.0
1,000.2
620.8
441.5
1,625.7
1,002.3
623.3
440.3
1,621.2
997.1
624.1
439.6
Bulletin, vol. 81 (January 1995), pp. 16-26. For a detailed description of the industrial
production index, see "Industrial Production: 1989 Developments and Historical Revision," Federal Reserve Bulletin, vol. 76, (April 1990), pp. 187-204.
2. Standard industrial classification.
Selected Measures
2.14
A49
HOUSING AND CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1995
1994
Item
1992
1993
1994
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.'
Jan.r
Feb.
Private residential real estate activity (thousands of units except as noted)
NEW UNITS
1,095
911
184
1,200
1,030
170
612
473
140
1,158
964
194
210
1,199
987
213
1,288
1,126
162
680
543
137
1,193
1,040
153
254
1,369
1,061
307
1,457
1,198
259
762r
558r
204
1,347
1,160
187
304
1,383
1,099
284
1,489
1,197
292
746
581
165
1,438
1,245
193
296
1,336
1,054
282
1,370
1,174
196
751
585
166
1,333
1,151
182
295
1,347
1,035
312
1,440
1,219
221
757
585
172
1,280
1,157
123
289
1,382
1,047
335
1,463
1,174
289
770
589
181
1,337
1,144
193
295
1,416
1,052
364
1,511
1,235
276
773
590
183
1,400
1,158
242
307
1,391
1,028
363
1,451
1,164
287
779
587
192
1,376
1,169
207
314
1,355
1,011
344
1,536
1,186
350
787
587
200
1,371
1,136
235
322
1,421
1,094
327
1,545
1,250
295
791
584
207
1,388
1,173
215
347
1,302
999
303
1,366
1,055
311
793
579
214
1,428
1,205
223
361
1,287
934
353
1,315
1,041
274
805
585
220
1,292
1,070
222
335
610
265
666
293
670r
341
689
302
632
313
630
317
672
322
691
328
707
330
642r
335
625
341
641
344
551
350
121.3
144.9
126.1
147.6
130.4r
153.8r
129.9
151.8
133.5
158.4
124.4
144.4
133.3
154.9
129.7
157.2
132.0
153.0
129.9
155.4
135.0
160.1
127.9
147.4
129.9
155.7
18 Number sold
3,520
3,800
3,946
4,110
4,010
3,940
3,910
3,870
3,820
3,690
3,760
3,610
3,420
Price of units sold (thousands
of dollars)2
19 Median
20 Average
103.6
130.8
106.5
133.1
109.6
136.4
109.9
136.7
113.3
141.3
112.4
139.7
113.0
141.2
108.9
135.8
107.5
133.0
108.7
134.7
109.1
135.6
108.1
135.3
107.0
133.4
1
2
3
4
5
6
7
8
9
10
11
12
13
Permits authorized
One-family
Two-family or more
Started
One-family
Two-family or more
Under constniction 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 (thousands
of dollars)
17 Average
EXISTING UNITS ( o n e - f a m i l y )
Value of new constniction (millions of dollars)3
CONSTRUCTION
21
7?
73
74
75
7.6
77
28
Total put in place
Industrial buildings
Commercial buildings
Other buildings
Public utilities and other
79 Public
10
Military
31
Highway
32
Conservation and development
33
Other
435355
466,365
506,315
504,356
506,144
505,445
505,470
514,197 519,336' 522,106r
528,613
525,738
523,338
316,115
187,870
128,245
20,720
41,523
21,494
44,508
341,101
210,455
130,646
19,533
42,627
23,626
44,860
377,136
237,767
139,369
21,600
48,268
23,835
45,666
378,235
241,162
137,073
21,338
47,912
23,956
43,867
379,345
240,694
138,651
20,960
48,410
24,439
44,842
376,463
237,775
138,688
21,117
48,607
23,838
45,126
376,216
236,871
139,345
22,012
48,185
23,648
45,500
382,287
238,529
143,758
22,621
50,180
24,784
46,173
383,044 R
239,136 R
143,908 R
22,19TF
50,583'
24,103'
47,032'
390,729'
241,320'
149,409'
25,050'
51,993'
24,325'
48,041'
393,171
243,768
149,403
23,074
53,272
24,851
48,206
392,049
242,527
149,522
23,367
54,162
24,456
47,537
391,111
241,212
149,899
25,430
54,736
24,696
45,037
119,238
2,502
34,899
6,021
75,816
125,262
2,454
37,355
5,976
79,477
129,175
2,315
40,185
6,236
80,439
126,121
2,024
40,655
5,677
77,765
126,799
2,277
40,300
4,605
79,617
128,982
2,351
40,305
5,935
80,391
129,255
2,357
40,057
5,754
81,087
131,910
2,364
40,797
7,521
81,228
136,292'
2,329'
41,685'
7,135'
85,143'
131,377'
2,247'
40,011'
6,658'
82,461'
135,443
2,481
39,256
7,765
85,941
133,689
2,624
39,348
7,365
84,352
132,227
2,634
39,467
7,400
82,726
1. Not at annual rates.
2. Not seasonally adjusted.
3. Recent data on value of new construction may not be strictly comparable with data
for previous periods because of changes by the Bureau of the Census in its estimating
techniques. For a description of these changes, see Construction Reports (C-30-76-5),
issued by the Census Bureau in July 1976.
SOURCES. Bureau of the Census estimates for all series except (1) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing Institute and
seasonally adjusted by the Census Bureau, and (2) sales and prices of existing units,
which are published by the National Association of Realtors. All back and current figures
are available from the originating agency. Permit authorizations are those reported to the
Census Bureau from 17,000 jurisdictions beginning in 1984.
A46
2.15
Domestic Nonfinancial Statistics • June 1995
CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 12
months earlier
Change from 3 months earlier
(annual rate)
Item
1994
1994
Mar.
Change from 1 month earlier
1995
1994
Index
level,
Mar.
1995 1
1995
1995
Mar.
June
Sept.
Dec.
Mar.
Nov.
Dec.
Jan.
Feb.
Mar.
CONSUMER PRICES 2
(1982-84=100)
1
AH items
3
2.5
2 Food
3 Energy items
4 All items less food and energy
5 Commodities
6
Services
2.9
2.7
3.6
1.9
3.2
.1
.2
.3
.2
151.4
2.2
-.6
2.9
1.0
3.8
2.9
1.3
3.0
1.8
3.5
2.8
-3.0
3.1
3.9
2.7
5.1
9.2
2.6
.9
3.6
3.9
.4
2.0
.3
2.6
.0
-1.1
4.1
2.6
4.8
.1
.5
.2
.0
.2
.8
-.1
.1
.1
.2
-.3
.3
.4
.4
.5
.3
-.1
.3
.1
.4
.0
-.5
.3
.1
.4
147.4
103.2
160.4
139.4
172.4
.2
2.2
-3.6
-.6
1.8
1.6
.8
2.3
1.7
1.8
.0
-5.5
-2.6
2.0
3.0
1.9
1.9
3.2
1.7
2.1
2.2
9.2
.0
.6
.0
2.6
-1.8
9.1
2.6
2.1
.6
1.0r
2.2r
,2r
.1
,3r
1.3r
-.9'
.2'
.4
.3
-.6
2.3
.1
.3
.3
.3
.4
.3
.3
.0
-.2
-.5
.2
-.1
126.9
128.5
76.4
141.0
136.0
.4
1.0
6.4
7.1
2.8
3.9
6.2
6.8
7.6
8.3
9.5
9.8
.9
.8
.5
.5
1.0
1.0
1.0
1.0
.3
.4
124.3
134.1
5.4
-7.7
10.8
-9.6
-3.5
16.5
-18.0
21.0
-.8
-13.5
-19.2
20.3
-.8
-13.8
26.7
-5.4
2.9
21.1
,9r
-1.3 r
3.4r
.O1
-,9r
1.9r
-.1
-.1
3.0
1.2
1.7
1.4
-2.4
-.9
.5
103.2
69.2
178.3
PRODUCER PRICES
(1982=100)
7 Finished goods
8 Consumer foods
9 Consumer energy
10 Other consumer goods
11 Capital equipment
Intermediate materials
12 Excluding foods and feeds
13 Excluding energy
Crude materials
14 Foods
15 Energy
16 Other
1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a rentalequivalence measure of homeownership.
SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.
Selected Measures
2.16
A51
GROSS DOMESTIC PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1993
Account
1992
1993
1994
1994r
Q4
Q1
Q2
Q3
Q4r
GROSS DOMESTIC PRODUCT
1 Total
6,020.2
6,343.3
6,738.4
6,478.1
6,574.7
6,689.9
6,791.7
6,897.2
By source
2 Personal consumption expenditures
3
Durable goods
4
Nondurable goods
5
Services
4,136.9
492.7
1,295.5
2,348.7
4,378.2
538.0
1,339.2
2,501.0
4,628.4
591.5
1,394.3
2,642.7
4,469.6
562.8
1,355.2
2,551.6
4,535.0
576.2
1,368.9
2,589.9
4,586.4
580.3
1,381.4
2,624.7
4,657.5
591.5
1,406.1
2,659.9
4,734.8
617.7
1,420.7
2,696.4
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
Producers' durable equipment
10
11
Residential structures
788.3
785.2
561.4
171.1
390.3
223.8
882.0
866.7
616.1
173.4
442.7
250.6
1,032.9
980.7
697.6
182.8
514.8
283.0
922.5
913.5
646.3
176.7
469.6
267.2
966.6
942.5
665.4
172.7
492.7
277.1
1,034.4
967.0
683.3
181.8
501.5
283.6
1,055.1
992.5
709.1
184.6
524.5
283.4
1,075.6
1,020.8
732.8
192.0
540.7
288.0
12
13
Change in business inventories
Nonfarm
3.0
-2.7
15.4
20.1
52.2
45.9
9.0
10.7
24.1
22.3
67.4
60.4
62.6
53.4
54.8
47.4
14 Net exports of goods and services
15
Exports
16
Imports
-30.3
638.1
668.4
-65.3
659.1
724.3
-98.2
718.7
816.9
-71.2
680.3
751.4
-86.7
674.2
760.9
-97.6
704.5
802.1
-109.6
730.5
840.1
-98.9
765.5
864.4
17 Government purchases of goods and services
18
Federal
19
State and local
1,125.3
449.0
676.3
1,148.4
443.6
704.7
1,175.3
437.3
738.0
1,157.2
439.8
717.4
1,159.8
437.8
722.0
1,166.7
435.1
731.5
1,188.8
444.3
744.5
1,185.8
431.9
753.8
By major type of product
20 Final sales, total
21
Goods
Durable
22
Nondurable
2.3
24
Services
Structures
25
6,017.2
2,292.0
968.6
1,323.4
3,227.2
498.1
6,327.9
2,390.4
1,032.4
1,358.1
3,405.5
532.0
6,686.2
2,532.4
1,118.8
1,413.6
3,576.2
577.6
6,469.2
2,452.6
1,072.9
1,379.7
3,459.3
557.2
6,550.6
2,489.1
1,098.2
1,390.9
3,503.8
557.7
6,622.5
2,493.7
1,099.4
1,394.3
3,555.4
573.4
6,729.1
2,543.6
1,125.8
1,417.8
3,603.6
581.9
6,842.4
2,603.3
1,151.8
1,451.5
3,641.9
597.3
3.0
-13.0
16.0
15.4
8.6
6.7
52.2
34.8
17.4
9.0
9.0
.0
24.1
20.6
3.5
67.4
38.2
29.2
62.6
44.1
18.5
54.8
36.3
18.5
4,979.3
5,134.5
5,344.0
5,218.0
5,261.1
5,314.1
5,367.0
5,433.8
30 Total
4,829.5
5,131.4
5,458.4
5,262.0
5,308.7
5,430.7
5,494.9
5,599.4
31 Compensation of employees
32
Wages and salaries
Government and government enterprises
33
34
Other
Supplement to wages and salaries
35
Employer contributions for social insurance
36
37
Other labor income
3,591.2
2,954.8
567.3
2,387.5
636.4
307.7
328.7
3,780.4
3,100.8
583.8
2,517.0
679.6
324.3
355.3
4,004.6
3,279.0
602.8
2,676.2
725.6
344.6
381.0
3,845.8
3,148.4
587.8
2,560.7
697.4
330.6
366.8
3,920.0
3,208.3
595.7
2,612.6
711.7
338.5
373.2
3,979.3
3,257.2
601.9
2,655.4
722.0
343.6
378.4
4,023.7
3,293.9
604.4
2,689.6
729.7
346.0
383.7
4,095.3
3,356.4
609.0
2,747.4
738.9
350.2
388.7
418.7
374.4
44.4
441.6
404.3
37.3
473.7
434.2
39.5
462.9
418.5
44.4
471.0
423.8
47.2
471.3
431.9
39.3
467.0
437.1
29.8
485.7
444.0
41.7
26 Change in business inventories
27
Durable goods
Nondurable goods
28
MEMO
29 Total GDP in 1987 dollars
NATIONAL INCOME
38 Proprietors' income1
39
40
Business and professional1
Farm1
41 Rental income of persons2
1
4 2 Corporate profits
43
Profits before tax3
44
Inventory valuation adjustment
45
Capital consumption adjustment
46 Net interest
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
-5.5
24.1
27.7
30.3
15.3
34.1
32.6
29.0
405.1
395.9
-6.4
15.7
485.8
462.4
-6.2
29.5
542.7
524.5
-19.5
37.7
533.9
501.7
-6.5
38.8
508.2
483.5
-12.3
37.0
546.4
523.1
-14.1
37.4
556.0
538.1
-19.6
37.5
560.3
553.5
-32.1
38.8
420.0
399.5
409.7
389.1
394.2
399.7
415.7
429.2
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. US. Department of Commerce, Survey of Current Business.
A46
2.17
Domestic Nonfinancial Statistics • June 1995
PERSONAL INCOME AND SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
Q4
Q
L
Q2
Q3
PERSONAL INCOME AND SAVING
1 Total personal income
5,1543
5,375.1
5,701.7 R
5,484.6
5,555.8
5,659.9
5,734.5
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises
2,974.8
757.6
578.3
682.3
967.6
567.3
3,080.8
773.8
588.4
701.9
1,021.4
583.8
3,279.0 r
3,148.4
791.0
601.7
712.6
1,057.0
587.8
3,208.3
801.9
609.4
728.6
3,257.2
3,293.9
811.6
821.8
612.8
742.5
1,082.0
1,101.2
595.7
601.9
618.3
753.5
1,114.3
604.4
328.7
418.7
374.4
44.4
-5.5
161.0
665.2
860.2
414.0
355.3
441.6
404.3
37.3
24.1
181.3
637.9
915.4
444.4
381.0
473.7r
434.2
39.5r
27.7
194.3
664.0'
963.4
473.5
366.8
462.9
418.5
44.4
30.3
184.1
627.7
931.0
373.2
471.0
423.8
47.2
15.3
185.7
631.1
947.4
378.4
471.3
431.9
39.3
34.1
191.7
649.4
957.6
452.1
463.8
470.7
248.7
261.3
281.4
266.6
276.3
279.9
5,154.3
5.375.1
5,701.7r
648.6
686.4
742.1
20 EQUALS: Disposable personal income
4,505.8
4,688.7
4,959,6r
21
LESS: Personal outlays
4,257.8
4.496.2
4,756.5r
22 EQUALS: Personal saving
247.9
192.6
203.l r
19,489.7
13,110.4
14,279.0
19,878.8
13,390.8
14,341.0
20,475.8'
13,715.4"
14,696.0r
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income1
Business and professional1
Farm1
Rental income of persons2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
19
LESS: Personal tax and nontax payments
818.2
617.5
748.5r
1,109.5
602.8
5,484.6
5,555.8
5,659.9
707.0
723.0
746.4
383.7
467.0
437.1
29.8
32.6
196.9
674.2
969.0
476.5
282.9
5,734.5
744.1
4,990.3
4,777.6
4,832.8
4,913.5
4,588.2
4,657.3
4,712.4
189.4
175.5
201.1
20,119.1
13,518.9
14,451.0
20,235.2
13,639.8
14,535.0
20,389.7
13,650.9
14,625.0
20.536.5
13.716.6
14,697.0
4,787.0
203.3
MEMO
Per capita (1987 dollars)
23 Gross domestic product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
27 Gross saving
722.9
787.5
920.6
825.8
886.2
28 Gross private saving
980.8
1,002.5
1,053.5
1,011.4
1,037.3
1,041.4
1,052.7
29 Personal saving
30 Undistributed corporate profits1
31 Corporate inventory valuation adjustment
247.9
94.3
-6.4
192.6
120.9
-6.2
203.1r
135.1
-19.5 r
189.4
147.9
-6.5
175.5
127.7
-12.3
201.1
142.3
-14.1
203.3
139.5
-19.6
Capital consumption allowances
32 Corporate
33 Noncorporate
396.8
261.8
407.8
261.2
432.2
283.1r
411.1
263.0
432.2
301.8
425.9
272.1
432.6
277.3
-257.8
-282.7
24.8
-215.0
-241.4
26.3
-132.9
-159.1
-185.6
26.2
34.5
-151.1
-176.2
25.2
-118.1
-145.1
27.0
-130.1
-154.0
23.9
788.3
-56.6
882.0
922.5
-113.2
966.6
-116.4
1,034.4
-135.1
1,055.1
-153.6
34 Government surplus, or deficit (—), national income and
product accounts
Federal
State and local
35
36
889.7
37 Gross investment
38 Gross private domestic investment
39 Net foreign investment
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
-220.1
922.6
-92.3
1,032.9'
-143.2
-24.0
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
1993
Item credits or debits
1992
1993
1994
1994
Q4
1 Balance on current account
Merchandise trade balance2
?
3
Merchandise exports
4
Merchandise imports
Military transactions, net
6
Other service transactions, net
Investment income, net
7
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, —)
12 Change in U.S. official reserve assets (increase, —)
13
14
15
16
Special drawing rights (SDRs)
Reserve position in International Monetary Fund
Foreign currencies
17 Change in U.S. private assets abroad (increase, - )
18 Bank-reported claims3
19 Nonbank-reported claims
20
U.S. purchases of foreign securities, net
21
U.S. direct investments abroad, net
22 Change in foreign official assets in United States (increase, +)
23
U.S. Treasury securities
24 Other U.S. government obligations
25 Other US. government liabilities4
26 Other U.S. liabilities reported by U.S. banks3
27 Other foreign official assets5
28 Change in foreign private assets in United States (increase, +)
29 U.S. bank-reported liabilities3
30 U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
31
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in United States, net
34 Allocation of special drawing rights
35 Discrepancy
36 Due to seasonal adjustment
37 Before seasonal adjustment
-67,886
-96,097
440,361
-536,458
-3,034
58,747
4,540
-15,010
-3,735
-13,297
-103,896
-132,575
456,866
-589,441
-763
57,613
3,946
-14,620
-3,785
-13,712
-155,672
-166,364
502,729
-669,093
268
59,726
-15,181
-14,532
-4,246
-15,343
Q
L
Q2
Q3
Q4P
-30,587
-33,169
119,679
-152,848
-444
13,637
-590
-5,591
-987
-3,443
-32,238
-37,052
117,848
-154,900
-338
13,070
-820
-2,371
-889
-3,838
-37,827
-41,721
122,510
-164,231
177
14,907
-2,819
-3,590
-895
-3,886
-40,848
-44,615
127,632
-172,247
230
15,647
-4,037
-2,839
-1,474
-3,760
-44,758
-42,976
134,739
-177,715
199
16,102
-7,504
-5,731
-988
-3,860
-1,652
-306
-277
-321
490
462
-270
-961
3,901
0
2,316
-2,692
4,277
-1,379
0
-537
-44
-797
5,346
0
-441
494
5,293
-673
0
-113
-80
-480
-59
0
-101
45
3,537
0
-108
251
3,394
-165
0
-111
273
-327
2,033
0
-121
-27
2,181
-63,759
22,314
45
-45,114
-41,004
-146,214
32,238
-598
-119,983
-57,871
-130,756
-2,033
-9,679
-60,621
-58,423
-62,628
-9,293
-303
-30,349
-22,683
-48,887
-1,236
1,941
-24,605
-24,987
-11,250
15,248
-4,264
-14,007
-8,227
-25,414
1,268
-7,356
-8,103
-11,223
-45,208
-17,313
-13,906
-13,989
40,858
18,454
3,949
2,572
16,571
-688
71,681
48,702
4,062
1,666
14,666
2,585
38,912
30,441
5,988
2,514
2,317
-2,348
23,962
22,856
970
825
-587
-102
11,530
1,193
50
938
10,139
-790
8,925
6,033
2,355
252
1,241
-956
19,460
15,841
2,003
700
1,695
-779
-1,003
7,374
1,580
624
-10,758
177
105,646
15,461
13,573
36,857
29,867
9,888
159,017
18,452
14,282
24,849
80,068
21,366
275,702
106,189
17,955
32,925
58,562
60,071
66,200
7,370
4,733
7,996
38,008
8,093
83,600
35,200
5,867
9,260
21,258
12,015
40,384
25,539
3,662
-7,434
13,152
5,465
60,794
18,353
8,426
5,111
14,168
14,736
90,924
27,097
25,988
9,984
27,855
0
-17,108
0
21,096
0
-33,255
-17,108
21,096
-33,255
0
4,047
103
3,944
0
-14,436
5,899
-20,335
0
-4,231
728
-4,959
0
-13,557
-6,686
-6,871
0
-1,027
62
-1,089
-3
MEMO
Changes in official assets
38 U.S. official reserve assets (increase, —)
39 Foreign official assets in United States, excluding line 25
(increase, +)
40 Change in Organization of Petroleum Exporting Countries official
assets in United States (part of line 22)
3,901
-1,379
5,346
-673
-59
3,537
-165
2,033
38,286
70,015
36,398
23,137
10,592
8,673
18,760
-1,627
5,942
-3,847
-1,049
-229
-1,674
-4,149
3,726
1,048
1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34, and 38^0.
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 S.
3. Reporting banks include all types of depository institution as well as some brokers
and dealers.
4. Associated primarily with military sales contracts and other transactions arranged
with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of private
corporations and state and local governments.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of
Current Business.
A54
3.11
International Statistics • June 1995
U.S. FOREIGN TRADE1
Millions of dollars; monthly data seasonally adjusted
1994
Item
1992
1993
1995
1994
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.p
1 Goods and services, balance
2 Merchandise
3 Services
-40,384
-96,097
55,713
-75,725
-132,575
56,850
-106,571
-166,565
59,994
-9,124
-14,141
5,017
-8,879
-14,517
5,638
-9,996
-15,117
5,121
-9,628
-15,170
5,542
-7,261
-12,896
5,635
-11,953
-16,853
4,900
-9,012
-14,195
5,183
4 Goods and services, exports
5 Merchandise
6
Services
616,924
440,361
176,563
641,677
456,866
184,811
697,877
502,590
195,287
60,291
44,054
16,237
60,510
43,485
17,025
59,881
43,289
16,592
61,909
44,814
17,095
63,611
46,490
17,121
60,964
44,299
16,665
62,416
45,498
16,918
7 Goods and services, imports
8 Merchandise
9
Services
-657,308
-536,458
-120,850
-717,402
-589,441
-127,961
-804,448
-669,155
-135,293
-69,415
-58,195
-11,220
-69,389
-58,002
-11,387
-69,877
-58,406
-11,471
-71,537
-59,984
-11,553
-70,872
-59,386
-11,486
-72,917
-61,152
-11,765
-71,428
-59,693
-11,735
-84,501
-115,568
-151,308
-12,788
-13,418
-13,845
-14,092
-11,644
-15,910
-13,255
MEMO
10 Balance on merchandise trade, Census
basis
1. Data show monthly values consistent with quarterly figures in the U.S. balance of
payments accounts.
3.12
SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and Bureau of
Economic Analysis.
U.S. RESERVE ASSETS
Millions of dollars, end of period
1994
Asset
1991
1992
1995
1993
Aug.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.p
77,719
1 Total
2 Gold stock, including Exchange
Stabilization Fund1
3 Special drawing rights2,3
4 Reserve position in International Monetary
Fund2
5 Foreign currencies4
71,323
73,442
75,740
76,532
78,172
74,000
74,335
76,027
81,439
86,761
11,057
11,240
11,056
8,503
11,053
9,039
11,054
9,837
11,054
9,971
11,053
10,088
11,052
10,017
11,051
10,039
11,050
10,154
11,050
11,158
11,053
11,651
9,488
45,934
11,759
40,005
11,818
41,532
12,161
42,688
12,067
43,440
12,339
44,692
12,037
40,894
12,030
41,215
12,120
42,703
12,853
46,378
13,418
50,639
1. Gold held "under earmark" at Federal Reserve Banks for foreign and international
accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold
stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted average
of exchange rates for the currencies of member countries. From July 1974 through
December 1980, sixteen currencies were used; since January 1981, five currencies have
3.13
Sept.
been used. U.S. SDR holdings and reserve positions in the IMF also have been valued on
this basis since July 1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the
year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979—$1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net
transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1
Millions of dollars, end of period
1994
Asset
1991
1992
Aug.
1 Deposits
Held in custody
2 U.S. Treasury securities2
3 Earmarked gold3
Sept.
Oct.
Nov.
Dec.
Jan.
968
205
386
188
342
223
230
250
185
281,107
13,303
314,481
13,118
379,394
12,327
427,574
12,044
429,819
12,044
439,854
12,039
444,339
12,037
441,866
12,033
439,139
12,033
1. Excludes deposits and U.S. Treasury securities held for international and regional
organizations.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury
securities, in each case measured at face (not market) value.
1995
1993
Feb.
188
Mar.p
370
447,206
459,694
12,033 11,964,301
3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce;
not included in the gold stock of the United States.
Summary Statistics
3.15
A55
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1994r
Item
1992
1995
1993
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.P
r
518,832
521,015
531,102
523,536
519,822
516,330
526,300
1 Total1
412,624
483,058
By type
2 Liabilities reported by banks in the United States
3 U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
54,967
104,596
69,808
151,100r
79,598
143,640
82,587
138,451
79,361
148,039
73,507
143,222
72,708
139,570
74,070
133,014
80,022
134,341
210,931
4,532
37,598
212,253
5,652
44,245
242,951
5,952
46,691
247,639
5,990
46,348
250,530
6,031
47,141
253,196
6,069
47,542
253,778
6,109
47,657
255,525
6,137
47,584
257,587
6,095
48,255
189,230
13,700
37,973
164,690
3,723
3,306
207,121r
15,285
55,898
197,758
4,052
2,942
226,280
18,586
44,144
221,197
4,255
4,368
225,974
19,287
44,427
223,027
4,388
3,910
223,326
18,402
47,844
232,099
4,232
5,197
217,511
17,339
45,285
233,582
4,673
5,144
215,398
17,046
41,268
236,102
4,179
5,827
212,519
17,852
37,058
239,291
4,335
5,273
214,008
18,466
42,032
243,865
4,066
3,861
5
Nonmarketable4
6 U.S. securities other than U.S. Treasury securities5
7
8
9
10
By area
Europe1
Canada
Latin America and Caribbean
Asia
12 Other countries6
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
LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies
5. Debt securities of U.S. government corporations and federally sponsored agencies,
and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
SOURCE. Based on U.S. Department of the Treasury data and on data reported to the
department by banks (including Federal Reserve Banks) and securities dealers in the
United States, and on the 1989 benchmark survey of foreign portfolio investment in the
United States.
Reported by Banks in the United States'
Millions of dollars, end of period
1994r
Item
1991
1992
1993r
Mar.
1 Banks' liabilities
2 Banks' claims
3 Deposits
4
Other claims
5 Claims of banks' domestic customers2
75,129
73,195
26,192
47,003
3,398
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
72,796
62,799
24,240
38,559
4,432
78,120
60,649
20,284
40,365
4,100
June
Sept.
Dec.
86,706
74,670
21,139
53,531
4,696
72,490
56,669
21,490
35,179
4,732
82,293
59,261
20,419
38,842
5,466
89,574
54,448
19,798
34,650
9,508
2. Assets owned by customers of the reporting bank located in the United States that
represent claims on foreigners held by reporting banks for the accounts of the domestic
customers.
A56
3.17
International Statistics • June 1995
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1994'
Item
1992
1993
1995
1994'
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.p
BY HOLDER AND TYPE OF LIABILITY
1 Total, all foreigners
810,259
921,796r
1,008,244
999,013
999,386
1,011,497
988,352
1,008,244
1,008,443
1,017,799
2 Banks' own liabilities
3 Demand deposits
4 Time deposits2
5 Other3
6 Own foreign offices4
606,444
21,828
160,385
93,237
330,994
623,432'
21,573'
175,078'
110,144
316,637'
714,944
25,831
185,835
109,162
394,116
693,613
23,147
184,333
119,087
367,046
707,452
23,522
178,277
134,762
370,891
709,734
24,614
181,406
133,805
369,909
686,602
23,954
178,348
124,309
359,991
714,944
25,831
185,835
109,162
394,116
721,152
27,551
187,582
120,283
385,736
724,259
26,630
185,948
122,995
388,686
203,815
127,644
298,364'
176,739'
293,300
162,786
305,400
170,851
291,934
164,555
301,763
174,441
301,750
169,056
293,300
162,786
287,291
156,664
293,540
160,353
21,974
54,197
36,289
85,336
41,552
88,962
46,371
88,178
38,988
88,391
37,661
89,661
39,834
92,860
41,552
88,962
40,442
90,185
43,378
89,809
9,350
6,951
46
3,214
3,691
10,936
5,639
15
2,780
2,844
4,639
4,209
29
2,641
1,539
5,323
4,328
56
2,671
1,601
7,619
6,642
28
2,989
3,625
7,824
6,047
83
3,095
2,869
6,207
5,441
35
2,817
2,589
4,639
4,209
29
2,641
1,539
6,226
5,760
24
3,331
2,405
6,984
6,335
35
3,284
3,016
2,399
1,908
5,297
4,275
430
281
995
836
977
767
1,777
1,572
766
501
430
281
466
280
649
407
486
5
1,022
0
149
0
159
0
205
5
205
0
265
0
149
0
181
5
242
0
159,563
51,202
1,302
17,939
31,961
220,908'
64,231
1,601
21,654
40,976
212,278
59,257
1,564
23,175
34,518
223,238
67,411
1,232
25,746
40,433
221,038
72,114
1,691
26,920
43,503
227,400
67,505
2,028
23,812
41,665
216,729
60,717
1,682
20,626
38,409
212,278
59,257
1,564
23,175
34,518
207,084
62,058
1,598
22,622
37,838
214,363
67,010
1,588
25,514
39,908
108,361
104,596
156,677'
151,IOC
153,021
139,570
155,827
143,640
148,924
138,451
159,895
148,039
156,012
143,222
153,021
139,570
145,026
133,014
147,353
134,341
3,726
39
5,482
95
13,245
206
12,054
133
10,407
66
11,820
36
12,773
17
13,245
206
11,972
40
12,943
69
547,320
476,117
145,123
10,170
90,296
44,657
330,994
589,077'
477,050'
160,413
9,719
105,192
45,502
316,637'
677,720
565,013
170,897
13,082
111,474
46,341
394,116
657,549
536,834
169,788
11,832
107,110
50,846
367,046
651,642
538,600
167,709
10,555
101,715
55,439
370,891
657,476
545,707
175,798
11,023
106,646
58,129
369,909
646,539
532,625
172,634
11,259
106,043
55,332
359,991
677,720
565,013
170,897
13,082
111,474
46,341
394,116
677,550
564,540
178,804
14,373
112,206
52,225
385,736
677,676
562,036
173,350
13,527
107,482
52,341
388,686
71,203
11,087
112,027'
10,712'
112,707
11,218
120,715
12,268
113,042
10,975
111,769
10,783
113,914
11,792
112,707
11,218
113,010
10,992
115,640
12,328
7,555
52,561
17,020
84,295
14,234
87,255
22,004
86,443
15,343
86,724
13,228
87,758
13,530
88,592
14,234
87,255
14,137
87,881
15,232
88,080
94,026
72,174
10,310
48,936
12,928
100,875'
76,512'
10,238'
45,452'
20,822
113,607
86,465
11,156
48,545
26,764
112,903
85,040
10,027
48,806
26,207
119,087
90,096
11,248
46,653
32,195
118,797
90,475
11,480
47,853
31,142
118,877
87,819
10,978
48,862
27,979
113,607
86,465
11,156
48,545
26,764
117,583
88,794
11,556
49,423
27,815
118,776
88,878
11,480
49,668
27,730
21,852
10,053
24,363'
10,652'
27,142
11,717
27,863
14,107
28,991
14,362
28,322
14,047
31,058
13,541
27,142
11,717
28,789
12,378
29,898
13,277
10,207
1,592
12,765
946
13,924
1,501
12,154
1,602
13,033
1,596
12,408
1,867
13,266
4,251
13,924
1,501
14,152
2,259
14,961
1,660
9,111
17,567
17,885
25,293
19,115
16,793
17,397
17,885
16,442
17,137
7 Banks' custodial liabilities5
8 U.S. Treasury bills and certificates6
Other negotiable and readily transferable
9
instruments7
10 Other
11 Nonmonetary international and regional organizations 8 ...
12 Banks' own liabilities
13
Demand deposits
14
Time deposits2
15
Other3
16
17
18
19
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
20 Official institutions9
21
Banks' own liabilities
22
Demand deposits
23
Time deposits2
24
Other3
25
26
27
28
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
29 Banks10
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits2
34
Other3
35
Own foreign offices4
36
37
38
39
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
40 Other foreigners
41
Banks' own liabilities
42
Demand deposits
Time deposits2
43
44
Other3
45
46
47
48
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
MEMO
49 Negotiable time certificates of deposit in custody for
foreigners
1. Reporting banks include all types of depository institutions, as well as some brokers
and dealers.
2. Excludes negotiable time certificates of deposit, which are included in "Other
negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign
subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign
banks, consists principally of amounts owed to the head office or parent foreign bank, and
to foreign branches, agencies, or wholly owned subsidiaries of the head office or parent
foreign bank.
5. Financial claims on residents of the United States, other than long-term securities,
held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to
official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time certificates
of deposit.
8. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
10. Excludes central banks, which are included in "Official institutions."
Nonbank-Reported
3.17
Data
LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued
1995
1994
Item
1992
1993
1994 R
Aug.'
Sept.
Oct.
Nov.
Dec.'
Jan.
Feb."
AREA
1
Total, all foreigners
810,259
921,196" 1,008,244
999,013
999,386' 1,011,497'
988,352'
1,008,244 1,008,443 1,017,799
2
Foreign countries
800,909
910,860r
1,003,605
993,690
991,767r l,003,673r
982,145r
1,003,605 1,002,217 1,010,815
307,670
1,611
20,567
3,060
1,299
41,411
18,630
913
10,041
7,365
3,314
2,465
577
9,793
2,953
39,440
2,666
111,805
504
29,256
377,193 R
1,917
28,621'
4,517
1,872
39,746 R
26,613
1,519
LL,759R
16,096
2,966
3,366
2,511
20,493
2,572
41,561 R
3,227
133,936
570
33,331
389,945
3,649
21,734
2,776
1,433
44,706
27,154
1,391
10,859
15,990
2,336
2,845
2,058
14,599
3,093
41,873
3,301
162,444
245
27,659
420,020
3,349
27,114
2,634
1,747
41,910
31,047
1,201
11,971
17,197
3,082
2,867
3,794
15,448
4,149
43,496
3,247
174,074
227
31,466
406,909 R
3,014
27,568 R
2,128
2,319
43,143
31,889
1,227
10,975 R
18,754
2,861
3,023
2,899
14,198
4,651
41,050
3,023'
160,154 R
224
33,909
393,156'
4,264
22,322'
2,307
1,587
41,160
31,050 R
1,477
9,777'
17,310
2,807
2,919
2,367
15,038
3,361
41,756
3,032
162,76C
240
27,822
3
4
5
6
7
8
9
10
11
1?
13
14
15
16
17
18
19
?0
?1
22
23
74
75
76
?7
78
?9
30
31
3?
33
34
35
36
37
38
39
40
41
42
Belgium and Luxembourg
Italy
Norway
United Kingdom
Other Europe and other former U.S.S.R.
56
57
58
59
60
61
62
63
64
65
66
67
68
69
389,945
3,649
21,734
2,776
1,433
44,706
27,154
1,391
10,859
15,990
2,336
2,845
2,058
14,599
3,093
41,873
3,301
162,444
245
27,659
391,923
3,235
21,674
2,657
2,396
42,320
28,491
1,228
10,249
14,830
2,306
2,862
1,449
15,113
2,258
39,505
3,598
173,826
261
23,865
385,832
4,019
22,087
1,970
1,746
44,253
27,459
2,063
11,998
15,886
2,141
4,006
2,162
11,101
2,247
40,093
2,680
162,610
257
27,254
British West Indies
Chile
Cuba
Guatemala
Netherlands Antilles
Other
China
People's Republic of China
Republic of China (Taiwan)
Korea (South)
Middle Eastern oil-exporting countries
Other
22,420
20,227
24,609
26,343
24,660
23,115
23,295
24,609
26,498
26,563
317,228
9,477
82,284
7,079
5,584
153,033
3,035
4,580
3
993
1,377
371
19,454
5,205
4,177
1,080
1,955
11,387
6,154
358,040 R
14,477
73,800 R
7,841 R
5,301
190,445 R
3,183
3,171
33
880
1,207
410
28,018
4,195
3,582
926
1,611
12,786
6,174
420,995
17,183
106,051
7,870
9,123
226,152
3,113
4,604
13
875
1,118
520
12,241
4,481
4,545
897
1,595
13,962
6,652
383,560
14,818
84,256
8,424
5,702
209,313
2,993
3,726
11
847
1,138
531
20,825
5,076
3,861
1,027
1,332
13,170
6,510
390,405'
13,783
87,007'
10,334
5,670
213,135'
3,407
4,027
13
823
1,103
565
19,941'
4,275'
4,082
1,079
1,399
13,297
6,465'
391,132'
15,577
88,668'
8,936
6,196'
209,409'
3,078
4,475'
7
830
1,077'
589
21,263'
4,153'
4,077
1,027
1,472'
13,809'
6,489
396,399'
15,950
90,091'
7,615
6,723
214,444'
3,741
4,417
7
825
1,036
513
19,199
4,845'
4,598
935
1,190
13,833
6,437
420,995
17,183
106,051
7,870
9,123
226,152
3,113
4,604
13
875
1,118
520
12,241
4,481
4,545
897
1,595
13,962
6,652
411,219
12,766
99,347
8,901
8,964
227,148
2,965
4,302
12
1,339
1,056
439
12,601
3,838
4,831
889
1,795
13,437
6,589
421,311
11,879
101,382
8,546
10,557
230,897
3,327
4,031
5
1,510
1,077
462
16,777
4,488
4,276
887
1,607
12,946
6,657
143,540
Canada
43
44
45
46
47
48
49
SO
51
57
53
54
55
413,440'
3,610
23,566'
2,374
2,601
44,209
33,136
1,711
10,893'
18,034
3,400
2,861
2,337
16,325'
3,467
41,834
3,143'
171,938'
220
27,981
144,575 R
155,218
152,310
158,217'
163,316'
157,153'
155,218
159,311
165,610
3,202
8,408
18,499
1,399
1,480
3,773
58,435
3,337
2,275
5,582
21,437
15,713
4,011
10,627 R
17,178 R
1,114
1,986
4,435
61,466
4,913
2,035
6,137
15,824
14,849 R
10,063
9,787
17,177
2,336
1,561
5,151
64,031
5,104
2,712
6,466
15,444
15,386
4,393
8,723
18,613
1,764
1,703
3,437
65,712
4,873
3,204
6,364
15,981
17,543
5,062
8,853'
18,750'
2,187
1,838'
3,204
68,200'
4,622
3,135
6,503
17,138
18,725
5,625
9,473'
18,217'
2,376
1,734
6,607
66,152'
4,740
3,158
5,682
17,232
22,320
8,017
10,919'
17,552'
2,377
1,613
5,066
63,309'
5,016
3,064
5,946'
17,678
16,596'
10,063
9,787
17,177
2,336
1,561
5,151
64,031
5,104
2,712
6,466
15,444
15,386
12,908
9,130
18,432
2,293
1,598
5,470
61,610
4,749
2,615
8,216
16,164
16,126
15,658
9,903
18,152
2,110
1,939
4,952
62,940
4,150
2,362
9,906
14,904
18,634
Morocco
South Africa
Zaire
Oil-exporting countries14
Other
5,884
2,472
76
190
19
1,346
1,781
6,633
2,208
99
451
12
1,303
2,560
6,459
1,839
93
433
9
1,343
2,742
6,332
1,914
82
417
8
1,156
2,755
6,299'
2,014
72
197
9
1,186
2,821'
6,389'
1,996
66
245
9
1,176
2,897'
6,939
2,097
67
693
10
1,227
2,845
6,459
1,839
93
433
9
1,343
2,742
6,300
1,721
74
285
10
1,409
2,801
6,127
1,786
65
400
10
1,122
2,744
Other
4,167
3,043
1,124
4,192
3,308
884
6,379
5,141
1,238
5,125
3,935
1,190
5,277
3,966
1,311
6,281
5,114
1,167
5,203
4,094
1,109
6,379
5,141
1,238
6,966
5,395
1,571
5,372
4,349
1,023
9,350
7,434
1,415
501
10,936
6,851
3,218
867
4,639
3,632
551
456
5,323
3,998
418
907
7,619'
5,39^
1,108'
1,121'
7,824'
5,844'
950
1,030'
6,207
4,358'
1,094
755'
4,639
3,632
551
456
6,226
4,860
865
501
6,984
5,761
652
571
Nonmonetary international and regional organizations....
Latin American regional16
Other regional
11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
12. Includes the Bank for International Settlements. Since December 1992, has
included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and
Slovenia.
13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United
Arab Emirates (Trucial States).
14. Comprises Algeria, Gabon, Libya, and Nigeria.
15. Principally the International Bank for Reconstruction and Development. Excludes
"holdings of dollars" of the International Monetary Fund.
16. Principally the Inter-American Development Bank.
17. Asian, African, Middle Eastern, and European regional organizations, except the
Bank for International Settlements, which is included in "Other Europe."
A57
A58
3.18
International Statistics • June 1995
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States'
Payable in U.S. Dollars
Millions of dollars, end of period
1994'
Area or country
1992
1993
1995
1994'
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.p
1 Total, all foreigners
499,437
484,584'
477,473
478,944
475,742
479,426
464,360
477,473
479,674
474,420
2 Foreign countries
494,355
482,179r
473,350
476,985
472,478
477,421
463,026
473,350
476,710
473,672
123,377
331
6,404
707
1,418
14,723
4,222
717
9,047
2,468
355
325
3,147
2,755
4,923
4,717
962
63,430
569
2,157
121,550r
413
6,535
382
594
11,519r
7,703r
679
8,918r
3,073r
396
834
2,310
2,766
4,086'
6,566'
1,294'
61,169'
536
1,777
122,918
705
6,651
1,039
696
12,158
6,638
592
6,143
2,957
504
938
949
3,552
4,111
7,491
862
65,502
265
1,165
124,895
477
6,574
464
502
16,009
9,996
657
5,578
3,196
825
1,040
1,378
2,664
4,168
6,937
1,159
61,531
273
1,467
120,550
293
7,279
521
594
14,846
8,655
613
5,376
2,908
650
1,182
1,272
2,211
3,903
5,853
1,046
61,084
258
2,006
131,985
440
6,370
880
587
16,354
8,501
520
6,693
3,402
903
1,056
1,220
2,731
3,156
7,670
1,147
68,512
266
1,577
120,045
369
6,274
668
718
12,906
8,452
518
5,950
3,426
1,004
1,006
1,172
2,174
3,596
6,544
914
62,616
266
1,472
122,918
705
6,651
1,039
696
12,158
6,638
592
6,143
2,957
504
938
949
3,552
4,111
7,491
862
65,502
265
1,165
125,188
350
5,558
488
721
12,615
8,530
668
6,820
2,943
1,069
988
1,148
2,989
3,837
9,025
548
64,885
265
1,741
122,884
425
4,833
646
456
11,959
7,639
751
6,963
4,200
988
1,045
759
2,803
4,049
8,060
869
64,628
265
1,546
3 Europe
4
Austria
5 Belgium and Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Russia
16 Spain
17 Sweden
18 Switzerland
19 Turkey
20
United Kingdom
21
Yugoslavia^.
22 Other Europe and other former U.S.S.R.3
13,845
18,432'
17,978
19,732
19,239
16,433
17,788
17,978
18,812
18,907
24 Latin America and Caribbean
Argentina
25
26
Bahamas
27 Bermuda
28 Brazil
29 British West Indies
30 Chile
31 Colombia
32 Cuba
33 Ecuador
34 Guatemala
35 Jamaica
36 Mexico
37 Netherlands Antilles
38 Panama
39 Peru
40
Uruguay
41
Venezuela
42 Other
23 Canada
218,078
4,958
60,835
5,935
10,773
101,507
3,397
2,750
0
884
262
162
14,991
1,379
4,654
730
936
2,525
1,400
223,649'
4,422'
64,410'
8,034
11,812
98,149'
3,616
3,179
0
680
286
195
15,834'
2,411'
2,892
653
952
2,907
3,217
219,535
5,781
65,951
7,484
9,452
94,264
3,787
4,003
0
685
366
254
17,517
1,055
2,179
959
485
1,830
3,483
222,933
5,877
62,685
7,347
10,083
100,634
3,418
3,414
0
604
320
210
16,556
2,176
2,386
924
706
2,146
3,447
219,772
5,587
62,351
5,444
10,299
100,840
3,401
3,463
0
625
310
204
16,329
1,332
2,384
946
711
2,055
3,491
221,055
5,588
64,841
5,199
10,216
99,311
3,431
3,671
12
628
337
255
16,954
1,195
2,307
857
800
1,934
3,519
215,948
5,718
60,786
6,710
9,784
95,922
3,628
3,768
0
635
335
251
17,406
1,818
2,304
884
652
1,921
3,426
219,535
5,781
65,951
7,484
9,452
94,264
3,787
4,003
0
685
366
254
17,517
1,055
2,179
959
485
1,830
3,483
220,585
5,837
63,996
14,551
9,734
90,156
3,866
3,816
0
712
346
253
17,303
1,205
2,155
998
420
1,716
3,521
219,298
6,309
63,787
10,905
9,992
91,284
4,190
3,813
0
668
349
278
17,270
1,437
2,340
1,055
390
1,736
3,495
43 Asia
China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries4
Other
131,789
111,787'
106,719
102,778
106,261
101,412
103,346
106,719
105,318
106,476
906
2,046
9,642
529
1,189
820
79,172
6,179
2,145
1,867
18,540
8,754
2,299
2,628
10,881'
589
1,527'
826
59,945'
7,569
1,408
2,154
15, l l C
6,851'
835
1,381
9,272
986
1,454
691
59,161
9,998
636
2,818
13,732
5,755
764
1,805
9,896
829
1,365
675
52,968
8,553
533
2,784
16,081
6,525
1,177
1,258
13,057
972
1,371
663
53,145
8,932
562
2,698
15,302
7,124
822
1,464
10,362
971
1,328
863
50,140
9,048
639
2,756
15,425
7,594
817
1,479
11,336
1,021
1,366
696
53,550
8,933
583
2,676
14,454
6,435
835
1,381
9,272
986
1,454
691
59,161
9,998
636
2,818
13,732
5,755
923
1,245
10,305
1,099
1,478
673
55,253
10,582
564
2,795
14,044
6,357
859
1,213
11,322
1,055
1,416
684
57,184
10,512
548
2,562
13,341
5,780
56 Africa
57 Egypt
58
Morocco
59
South Africa
60 Zaire
61
Oil-exporting countries5
Other
62
4,279
186
441
1,041
4
1,002
1,605
3,867'
196
481
633
4
1,139'
1,414
3,033
225
429
665
2
872
840
3,689
229
485
656
3
1,219
1,097
3,526
254
497
569
3
1,133
1,070
3,177
237
468
480
3
985
1,004
3,115
229
480
454
3
909
1,040
3,033
225
429
665
2
872
840
2,966
227
415
657
2
854
811
2,928
234
442
597
2
801
852
63 Other
64
Australia
65
Other
2,987
2,243
744
2,894'
2,071'
823'
3,167
2,224
943
2,958
1,390
1,568
3,130
1,810
1,320
3,359
2,158
1,201
2,784
1,687
1,097
3,167
2,224
943
3,841
2,203
1,638
3,179
1,917
1,262
66 Nonmonetary international and regional organizations 6 ...
5,082
2,405
4,123
1,959
3,264
2,005
1,334
4,123
2,964
748
44
45
46
47
48
49
50
51
52
53
54
55
1. Reporting banks include all types of depository institutions, as well as some brokers
and dealers.
2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements. Since December 1992, has included
all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in "Other
Europe."
Nonbank-Reported
3.19
BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
Payable in U.S. Dollars
Data
Reported by Banks in the United States1
Millions of dollars, end of period
1994r
1995
Type of claim
Aug.
Sept.
478,944
22,687
286,374
102,684
49,952
52,732
67,199
475,742
24,741
282,657
101,174
50,900
50,274
67,170
Oct.
Nov.
479,426
22,373
286,539
107,035
52,914
54,121
63,479
464,360
20,649
276,040
103,639
50,490
53,149
64,032
Jan.
Feb.p
479,674
22,964
278,316
104,122
53,900
50,222
74,272
474,420
17,721
279,160
105,234
53,808
51,426
72,305
n.a.
n.a.
Dec.
530,308
1 Total
559,495
535,393
548,611
2 Banks' claims
3 Foreign public borrowers
4
Own foreign offices2
5 Unaffiliated foreign banks
6
Deposits
7
Other
8 All other foreigners
499,437
31,367
303,991
109,342
61,550
47,792
54,737
484,584
29,115
286,382
98,433
47,167
51,266
70,654
477,473
22,938
281,839
109,554
58,354
51,200
63,142
60,058
15,452
50,809
20,241
71,138
35,502
54,566
25,087
71,138
35,502
31,474
16,885
22,328
16,263
22,328
13,132
13,683
13,308
13,216
13,308
8,655
7,863
8,316
7,614
8,316
38,623
26,370
27,382
9 Claims of banks' domestic customers3
10 Deposits
11 Negotiable and readily transferable
instruments4
12 Outstanding collections and other
claims
548,611
477,473
22,938
281,839
109,554
58,354
51,200
63,142
MEMO
13 Customer liability on acceptances
14 Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United States5
23,241
23,337
27,912
27,382
and to foreign branches, agencies, or wholly owned subsidiaries of the head office
parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable certificates
deposit denominated in U.S. dollars issued by banks abroad. For description of changes
data reported by nonbanks, see Federal Reserve Bulletin, vol. 65 (July 1979), p. 550.
1. For banks' claims, data are monthly; for claims of banks' domestic customers, data
are for quarter ending with month indicated.
Reporting banks include all types of depository institution, as well as some brokers and
dealers.
2. For U.S. banks, includes amounts due from own foreign branches and foreign
subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign
banks, consists principally of amounts due from the head office or parent foreign bank,
3.20
24,876
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. Dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1994r
Maturity, by borrower and area2
1991
1992
1993r
Mar.
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of one year or less
Foreign public borrowers
All other foreigners
Maturity of more than one year
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other3
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa
AH other3
Sept.
Dec.
195,302
195,119
196,552
194,581
186,711
191,770
194,628
162,573
21,050
141,523
32,729
15,859
16,870
163,325
17,813
145,512
31,794
13,266
18,528
167,919
17,773
150,146
28,633
10,821
17,812
168,028
16,150
151,878
26,553
9,229
17,324
161,594
12,951
148,643
25,117
8,051
17,066
166,244
16,986
149,258
25,526
7,375
18,151
169,708
14,968
154,740
24,920
7,675
17,245
51,835
6,444
43,597
51,059
2,549
7,089
53,300
6,091
50,376
45,709
1,784
6,065
56,605
7,564
56,755
41,382
1,820
3,793
59,209
7,306
58,998
36,875
1,613
4,027
51,204
8,285
56,758
38,891
1,798
4,658
58,406
7,217
57,034
36,766
1,519
5,302
56,344
7,251
58,859
40,043
1,364
5,847
3,878
3,595
18,277
4,459
2,335
185
5,367
3,287
15,312
5,038
2,380
410
4,428
2,553
13,866
5,402
1,936
448
3,842
2,548
13,009
4,704
2,001
449
3,355
2,451
12,420
4,607
1,849
435
3,637
2,607
12,146
4,838
1,836
462
3,641
2,373
11,958
4,583
1,549
816
1. Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.
June
2. Maturity is time remaining to maturity,
3. Includes nonmonetary international and regional organizations.
A59
A60
3.21
International Statistics • June 1995
CLAIMS ON FOREIGN COUNTRIES
Held by U.S. and Foreign Offices of U.S. Banks1
Billions of dollars, end of period
1992
Area or country
1990
Dec.
1 Total
320.1
1993
1994
1991
343.6
346.5
Mar.
361.1
June
377.1
Sept.
Dec.
Mar.
June
Sept.
Dec.
388.4
404.7
r
490.0
r
500.6
r
504.7
r
506.6r
r
r
r
r
132.2
.0
10.4
10.6
5.0
.0
2.2
4.4
60.9
5.9
24.0
137.6
6.0
11.0
8.3
5.6
4.7
1.9
3.4
68.5
5.8
22.6
132.9
5.6
15.3
9.3
6.5
2.8
2.3
4.8
60.8
6.3
19.3
142.5
6.1
13.5
9.9
6.7
3.6
3.0
5.3
65.7
8.2
20.4
150.0
7.0
14.0
10.8
7.9
3.7
2.5
4.7
73.5
8.0
17.9
153.3
7.1
12.3
12.4
8.7
3.7
2.5
5.6
74.7
9.7
16.8
161.6
7.4
11.7
12.6
7.7
4.7
2.5
5.9
84.7r
6.7
17.8r
178.6
8.1
16.4
28.7
15.5
4.1
2.8
6.3
70. l r
7.7r
18.9r
172.5
8.8
18.8
24.4
14.0
3.6
2.9
6.5
63.4r
9.6r
20.5r
186.0
9.7
20.7
23.5
11.6
3.5r
2.6
6.2
82.r
9.8
16.4r
187.6r
7.0
19.1
24.4
11.8
3.6r
2.7
6.9
81.8
9.5
20.7r
13 Other industrialized countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20
Spain
21 Turkey
22
Other Western Europe
23
South Africa
24
Australia
22.9
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
1.2
1.8
1.8
22.8
.6
.9
.7
2.6
1.4
.6
8.3
1.4
1.8
1.9
2.7
24.0
1.2
.9
.7
3.0
1.2
.4
8.9
1.3
1.7
1.7
2.9
25.4
1.2
.8
.7
2.7
1.8
.7
9.5
1.4
2.0
1.6
2.9
27.2
1.3
1.0
.9
3.1
1.8
.9
10.5
2.1
1.7
1.3
2.5
26.0
.6
1.1
.6
3.2
2.1
1.0
9.3
2.1
2.2
1.2
2.8
24.6
.4
1.0
.4
3.2
1.7
.8
8.9
2.1
2.6
1.1
2.3
41.2
1.0
1.1
1.0
3.8
1.6
1.2
12.3
2.4
3.0
1.2
12.7
41.7r
1.0
1.1
.8
4.6
1.6
1.1
11.7
2.1
2.8
1.2
13.7
41.5
1.0
.8
.8
4.3
1.6
1.0
13.1
1.8
1.0
1.2
15.0
44.2r
1.1
1.2
1.0
4.5
2.0
1.2
13.6
1.6
2.7
1.0
14.3r
25 OPEC2
26 Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
12.8
1.0
5.0
2.7
2.5
1.7
14.5
.7
5.4
2.7
4.2
1.5
16.1
.6
5.2
3.0
6.2
1.1
16.6
.6
5.1
3.1
6.6
1.1
15.7
.6
5.5
3.1
5.4
1.1
14.8
.5
5.4
2.8
4.9
1.1
17.4r
.5
5.1
3.3r
7.4r
1.2
22.9r
.5
4.7
3.4
13.2r
1.1
21.5
.5
4.4
3.2
12.4
1.1
21.6r
.4
3.9
3.3r
13.0
1.0
22.1
.5
3.7
3.6
13.4
.9
31 Non-OPEC developing countries
65.4
63.9
72.1
74.4
76.7
77.0
82.6
93.6r
94. l r
92.3r
94.9
5.0
14.4
3.5
1.8
13.0
.5
2.3
4.8
9.6
3.6
1.7
15.5
.4
2.1
6.6
10.8
4.4
1.8
16.0
.5
2.6
7.1
11.6
4.6
1.9
16.8
.4
2.7
6.6
12.3
4.6
1.9
16.8
.4
2.7
7.2
11.7
4.7
2.0
17.5
.3
2.7
7.7
12.0
4.7
2.1
17.7
.4
3.0
8.7
12.6r
5.1
2.2
18.8r
.5
2.7
9.8
11.9r
5.1
2.4
18.5r
.6
2.7
10.5
9.2r
5.4
2.4
19.6r
.6
2.7
11.1
8.2
6.1
2.6
18.1
.5
2.5
2 G-10 countries and Switzerland
3
Belgium and Luxembourg
France
4
Germany
5
6
Italy
Netherlands
7
Sweden
8
9
Switzerland
10 United Kingdom
11 Canada
12 Japan
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other
39
40
41
42
43
44
45
46
47
Asia
China
Peoples Republic of China
Republic of China (Taiwan)
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7
.3
4.1
3.0
.5
6.8
2.3
3.7
1.7
2.0
.7
5.2
3.2
.4
6.6
3.1
3.6
2.2
2.7
.6
5.3
3.1
.5
6.5
3.4
3.4
2.2
2.7
1.6
5.9
3.1
.4
6.9
3.7
2.9
2.4
2.6
.5
6.4
2.9
.4
6.5
4.1
2.6
2.8
3.0
2.0
7.3
3.2
.5
6.7
4.4
3.1
3.1
2.9
.8
7.5
3.6
.4
13.9
5.2
3.4
2.9
3.1
.7
7.1
3.7
.4
14.1
5.2
3.2
3.3
3.5
1.0
6.9
3.9
.4
14.1r
3.9
2.9
3.5r
3.6
1.1
9.1
4.2
.4
14.1
3.3
3.3
3.7
4.8
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa3
.4
.8
.0
1.0
.4
.7
.0
.7
.2
.6
.0
1.0
.2
.5
.0
.8
.2
.6
.0
.9
.2
.6
.0
.8
.4
.7
.0
.8
.4
.7
.0
1.0
.5
.7
.0
.9
.3
.7
.0
.9
.3
.6
.0
.8
2.3
.2
1.2
.9
2.4
.9
.9
.7
3.1
1.9
.6
.6
2.9
1.7
.6
.7
3.2
1.9
.6
.8
3.0
1.7
.6
.7
3.1
1.6
.6
.9
3.4
1.5
.5
1.4
3.0
1.2
.5
1.4
3.0
1.1
.5
1.5
2.6
.8
.5
1.3
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama6
62
Lebanon
63
Hong Kong
64
Singapore
65
Other'
44.7
2.9
4.4
11.7
7.9
1.4
.1
9.7
6.6
.0
54.2
11.9
2.3
15.8
1.2
1.4
.1
14.4
7.1
.0
58.3
6.9
6.2
21.8
1.1
1.9
.1
13.8
6.5
.0
60.3
9.7
4.1
17.6
1.6
2.0
.1
16.7
8.4
.0
58.0
7.1
4.5
15.6
2.5
2.1
.1
16.9
9.3
.0
67.9
12.7
5.5
15.1
2.8
2.1
.1
19.1
10.4
.0
71.9r
11.9r
8.1
17.0
2.3
2.4
.1
18.7
11.2
.1
78.0r
14.8r
8.4
17.1r
2.8r
2.0
.1
19.7
13.1r
.0
76.4r
13.lr
6.1
20.3r
2.5r
1.9
.1
21.7r
10.7r
.0
74.6r
13.2r
5.3
20.2r
1.7
1.9r
.1
20.3
11.8
.0
68.2r
9.7r
7.4r
18.7
l.C
1.5
.1
19.9r
10.0
.1
66 Miscellaneous and unallocated8
39.9
48.0
39.7
38.8
46.2
46.3
43.4r
72. l r
91. l r
85.4
86.7
52 Eastern Europe
53
Russia4
54
Yugoslavia5
55
Other
1. The banking offices covered by these data include U.S. offices and foreign branches
of U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not
covered include U.S. agencies and branches of foreign banks. Beginning March 1994, the
data include large foreign subsidiaries of U.S. banks. The data also include other types of
U.S. depository institutions as well as some types of brokers and dealers. To eliminate
duplication, the data are adjusted to exclude the claims on foreign branches held by a U.S.
office or another foreign branch of the same banking institution.
These data are on a gross claims basis and do not necessarily reflect the ultimate
country risk or exposure of U.S. banks. More complete data on the country risk exposure
of U.S. banks are available in the quarterly Country Exposure Lending Survey published
by the Federal Financial Institutions Examination Council.
2. Organization of Petroleum Exporting Countries, shown individually; other members
of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and
United Arab Emirates); and Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia. Beginning March 1994 includes Namibia.
4. As of December 1992, excludes other republics of the former Soviet Union.
5. As of December 1992, excludes Croatia, Bosnia and Hercegovinia, and Slovenia.
6. Includes Canal Zone.
7. Foreign branch claims only.
8. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
3.22
Data
A61
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States1
Millions of dollars, end of period
1994
1993
Type of liability, and area or country
1991
1992
1993
Sept.
Dec.
June
Mar.
r
Sept.
Dec.p
44,708
45,511r
49,996
48,954r
49,996r
51,988r
55,478
57,197r
54,174
2 Payable in dollars
3 Payable in foreign currencies
39,029
5,679
r
37,456
8,055
38,758
11,238
39,71 l
9,243
r
r
38,758
ll,238 r
38,549
13,439
r
43,114
12,364
42,754r
14,443r
39,322
14,852
By type
4 Financial liabilities
Payable in dollars
5
Payable in foreign currencies
6
22,518
18,104
4,414
23,841r
16,960r
6,881
28,586
18,553
10,033
27,172r
19,146r
8,026
28,586r
18,553'
10,033r
30,344r
18,929r
ll,415 r
33,340
22,976
10,364
35,843r
23,282'
12,561r
32,391
19,427
12,964
7 Commercial liabilities
Trade payables
8
9
Advance receipts and other liabilities . . .
22,190
9,252
12,938
21,670
9,566
12,104
21,410
8,811
12,599
21,782
9,215
12,567
21,410r
8,81 l r
12,599r
21,644r
8,974r
12,670r
22,138
9,913
12,225
21,354r
9,552r
ll,802 r
21,783
10,001
11,782
1 Total
10
11
Payable in dollars
Payable in foreign currencies
20,925
1,265
20,496
1,174
20,205
1,205
20,565
1,217
20,205r
1,205
19,620r
2,024
20,138
2,000
19,472r
1,882
19,895
1,888
12
13
14
15
16
17
18
By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
12,003
216
2,106
682
1,056
408
6,528
13,387r
414
1,623
889
606
569
8,610r
18,437
175
2,377
975
534
634
13,121
16,886r
278
2,077
855
573
378
12,135r
18,437r
175
2,377r
975
534
634
13,121r
20,442r
525
2,606r
1,214
564
1,200
13,725r
23,627
524
1,590
939
533
631
18,193
23,765r
661r
2,241
1,467
648
633
16,800r
20,852
495
1,727
1,953
552
688
14,709
19
Canada
292
544
859
663
859
508
698
618
625
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
4,784
537
114
6
3,524
7
4
4,053
379
114
19
2,850
12
6
3,359
1,148
0
18
1,533
17
5
3,719
1,301
114
18
1,600
15
5
3,359
1,148
0
18
1,533
17
5
3,553
1,157
120
18
1,613
14
5
3,282
1,052
115
18
1,454
13
5
3,159
1,112
15
7
1,364
15
5
3,201
926
80
207
1,340
0
5
27
28
29
Asia2
Japan
Middle Eastern oil-exporting countries'
5,381
4,116
13
5,818
4,750
19
5,689
4,620
23
5,754
4,725
23
5,689
4,620
23
5,650r
4,638r
24
5,694
4,760
24
8,149r
6,947r
31
7,528
6,414
35
30
Africa
6
4
6
0
133
123
132
124
133
123
133
124
9
0
133
123
135
123
52
33
109
18
109r
58r
30
19
50
r
r
6,853
231
762
611
723
335
2,442
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries4
All other5
Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
8,701
248
1,039
1,052
710
575
2,297
7,398
298
700
729
535
350
2,505
6,835
239
655
684
688
375
2,047
7,048
257
642
571
600
536
2,319
6,835
239
655r
684
688
375
2,047r
6,550r
251r
554r
577
628
388r
2,151r
6,921
254
712
670
649
473
2,311
6,867
287
742
552
674
391
2,351r
1,014
1,002
879
845
879r
1,037
1,070
l,068r
1,038
r
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,355
3
310
219
107
307
94
1,533
3
307
209
33
457
142
1,666
21
350
216
27
483
126
1,754
4
340
214
35
576
173
l,666
21
350r
216
27r
483
126
1,908
8
493
211
20r
556
150
2,007
2
418
217
24
705
194
1,790r
6
200
148
33
673r
192
1,854
19
345
163
23
576
280
48
49
50
Asia2
Japan
Middle Eastern oil-exporting countries'
9,334
3,721
1,498
10,594
3,612
1,889
10,992
4,314
1,542
10,915
3,726
1,968
10,992r
4,314r
l,542r
10,939r
4,617'
1,542r
10,979
4,389
1,841
10,514r
4,235r
l,688r
11,077
4,808
1,610
51
52
Africa
Oil-exporting countries4
715
327
568
309
464
171
641
320
464
171
490
199
523
247
482
271
442
262
53
Other5
1,071
575
574
579
574r
720r
638
633r
519
1. For a description of the changes in the international statistics tables, see Federal
Reserve Bulletin, vol. 65, (July 1979), p. 550.
2. Revisions include a reclassification of transactions, which also affects the totals for
Asia and the grand totals.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.
A62
International Statistics • June 1995
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
the United States1
Reported by Nonbanking Business Enterprises in
Millions of dollars, end of period
1994r
1993
Type of claim, and area or country
1991
1992
1993
Sept.
Dec/
Mar.
June
Sept.
Dec.p
1 Total
45,262
45,073
47,643
46,030r
47,643
48,404
47,925
49,830
55,321
2 Payable in dollars
3 Payable in foreign currencies
42,564
2,698
42,281
2,792
44,318
3,325
42,342r
3,688
44,318
3,325
44,978
3,426
44,324
3,601
46,284
3,546
52,147
3,174
By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
8 Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
27,882
20,080
19,080
1,000
7,802
6,910
892
26,509
17,695
16,872
823
8,814
7,890
924
26,995
15,795
15,246
549
11,200
9,974
1,226
26,902
14,509r
13,503
l,006r
12,393r
11,282
l,lllr
26,995
15,795
15,246
549
11,200
9,974
1,226
27,814
15,864
15,353
511
11,950
10,725
1,225
26,576
15,637
15,009
628
10,939
9,711
1,228
28,214
17,510
16,934
576
10,704
9,466
1,238
32,319
19,056
18,595
461
13,263
12,181
1,082
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
17,380
14,468
2,912
18,564
16,007
2,557
20,648
17,647
3,001
19,128r
16,150r
2,978
20,648
17,647
3,001
20,590
17,697
2,893
21,349
18,530
2,819
21,616
18,836
2,780
23,002
20,137
2,865
14
15
Payable in dollars
Payable in foreign currencies
16,574
806
17,519
1,045
19,098
1,550
17,557r
1,571
19,098
1,550
18,900
1,690
19,604
1,745
19,884
1,732
21,371
1,631
16
17
18
19
20
21
22
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
13,441
13
269
283
334
581
11,534
9,331
8
764
326
515
490
6,252
7,187
134
785
526
502
515
3,543
8,376
70
708
362
485
512
5,230
7,187
134
785
526
502
515
3,543
7,118
125
753
466
503
520
3,629
6,564
83
859
459
472
495
3,089
8,060
114
825
413
503
747
4,370
7,684
86
782
540
429
523
4,469
23
Canada
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
31
32
33
Asia
Japan
Middle Eastern oil-exporting countries2
34
35
Africa
Oil-exporting countries3
36
37
38
39
40
41
42
43
All other4
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
2,642
1,833
2,024
2,103
2,024
2,198
3,062
3,156
3,785
10,717
827
8
351
9,056
212
40
13,893
778
40
686
11,747
445
29
15,639
1,006
125
654
12,448
868
161
12,965
980
197
590
10,000
882
25
15,639
1,006
125
654
12,448
868
161
15,497
1,157
34
672
12,371
850
26
14,279
1,193
39
466
11,578
614
33
14,363
1,006
52
411
11,772
655
32
18,320
2,235
27
520
14,504
605
35
640
350
5
864
668
3
1,591
853
3
2,754
2,213
5
1,591
853
3
2,522
1,655
5
2,210
1,349
2
2,152
662
19
1,813
909
141
57
1
83
9
99
1
88
1
99
1
76
0
74
1
87
1
249
0
385
505
455
616
455
403
387
396
468
8,193
194
1,585
955
645
295
2,086
8,451
189
1,537
933
552
362
2,094
9,077
184
1,947
1,018
422
429
2,369
8,21 l r
163
1,438
935
410
377r
2,288r
9,077
184
1,947
1,018
422
429
2,369
8,734
176
1,827
944
354
413
2,330
8,904
179
1,778
937
293
685
2,427
8,768
174
1,766
880
329
537
2,483
9,557
216
1,885
1,046
313
558
2,515
44
Canada
1,121
1,286
1,358
l,362r
1,358
1,451
1,466
1,501
1,548
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,655
13
264
427
41
842
203
3,043
28
255
357
40
924
345
3,283
11
182
463
71
994
295
3,073r
20
225
407
39
866
287r
3,283
11
182
463
71
994
295
3,569
13
222
422
58
1,013
294
3,901
18
295
502
67
1,047
303
3,965
34
246
473
49
1,133
392
4,130
9
234
614
83
1,241
353
52
53
54
Asia
Japan
Middle Eastern oil-exporting countries2
4,591
1,899
620
4,866
1,903
693
5,909
2,173
715
5,544r
2,519
458r
5,909
2,173
715
5,852
2,353
667
6,145
2,359
615
6,425
2,448
615
6,724
2,496
698
55
56
Africa
Oil-exporting countries3
430
95
554
78
521
85
501r
107
521
85
516
102
492
90
462
68
461
76
57
Other4
390
364
500
437
500
468
441
495
582
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
A63
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1995
1993
Transaction, and area or country
1995
1994
1994r
Jan.Feb.
Aug.r
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.p
U.S. corporate securities
STOCKS
319,728
298,145
351,422
349,737
54,427
55,578
29,314
26,401
28,853r
30,435r
27,796r
29,845r
28,730
27,658
28,224
30,161
24,999
25,893
29,428
29,685
3 Net purchases, or sales (—)
21,583
1,685
-1,151
2,913
-1,582
—2,049r
1,072
-1,937
-894
-257
4 Foreign countries
21,311
1,675
-1,142
2,915
-1,596
—2,081r
1,049
-1,939
-930
-212
10,665
-103
1,647
-600
2,986
4,560
-3,213
5,724
-328
8,198
3,825
63
202
6,190
-202
2,112
1,812
-44
664
-1,198
-1,794
-1,112
-1,193
1,203
30
752
-541
-282
-212
510
-467
187
156
1,757
-155
-2,320
-1,401
-36
-3
1,425
-22
73
266
136
867
-366
989
-281
1,031
1,132
0
117
-1,198
-63
-104
-134
-104
-641
57
-625
-431
589
761
10
2
— l,396r
-198
-158
316
-655
-559r
-416
-516
-75
335
251
12
-25
216
-25
-57
264
-555
565
-116
673
1
273
272
-4
6
-1,445
-117
-159
211
10
-1,256
157
-553
-85
-149
-171
-25
161
-516
-255
-157
278
-389
253
129
991
-22
-1,469
-860
-36
-7
-25
-27
-55
232
-78
-66
27
766
-133
-851
-541
0
4
272
10
-9
-2
14
32
23
2
36
-45
283,946
217,932
288,804
227,399
42,171
29,204
22,963
15,659
18,981r
17,020r
19,703r
16,173r
22,213r
15,306
18,897r
14,719
19,267
12,800
22,904
16,404
66,014
61,405
12,967
7,304
l,961 r
3,530r
6,907r
4,178r
6,467
6,500
r
r
6,923
r
3,838r
6,263
6,554
3,294r
105
449
17r
4
1,476r
460
-981
56
627r
375
20
55
4,445r
-106
200
344
489
3,587
201
1,290
-86
1,079
445
-2
2,583r
4
451
28
13
1,916
462
694
-176
251
-172
8
16
6,653
157
1,516
-241
-85
5,406
245
-655
59
-28
-396
8
-19
6,052
296
526
126
304
4,815
175
-480
169
595
132
-4
47
-1
-16
340
204
-54
1 Foreign purchases
2 Foreign sales
5
6
7
8
9
10
11
1?
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations
BONDS
2
19 Foreign purchases
20 Foreign sales
21 Net purchases, or sales ( - )
22 Foreign countries
65,476
60,520
12,817
7,371
l,994
7.3 Europe
74
France
7.5
Germany
7.6 Netherlands
7.7 Switzerland
7.8 United Kingdom
79 Canada
30 Latin America and Caribbean
31 Middle East1
37 Other Asia
33
Japan
34 Africa
35 Other countries
22,586
2,346
885
-290
-627
19,686
1,668
15,697
3,257
20,846
11,569
1,149
273
38,506
243
629
3,220
1,054
33,304
3,063
5,362
750
12,108
44
687
12,705
453
2,042
-115
219
10,221
420
-1,135
228
567
-264
4
28
5,178
-18
34
610
-8
4,522
519
-80
157
1,558
763
18
21
2,876r
-16
-355
246r
292
2,197r
194
-1,852
-76
807r
340
2
43
538
885
150
-67
—33r
36 Nonmonetary international and
regional organizations
5,536
3,531
-4
Foreign securities
-63,287
245,561
308,848
-70,136
828,922
899,058
37 Stocks, net purchases, or sales ( —)
38
Foreign purchases
39
Foreign sales3
40 Bonds, net purchases, or sales ( - )
41
Foreign purchases
42
Foreign sales
43 Net purchases, or sales (—), of stocks and bonds
44 Foreign countries
45
46
47
48
49
50
Canada
Latin America and Caribbean
Africa
Other countries
51 Nonmonetary international and
regional organizations
....
-48,419
379,730
428,149
-6,670
863,458
870,128
-1,744
57,121
58,865
-1,252
137,240
138,492
-4,618
30,425
35,043
956
64,076
63,120
-133,423
-55,089
-2,996
-3,662
— 19 r
—4,504r
29,845r
34,349r
—5,083r
66,415r
71,498r
-2,556 r
28,263
30,819r
—2,198r
66,876r
69,074
—2,179r
25,668
27,847r
l,048 r
68,792r
67,744r
-210
27,948
28,158
1,261
71,948
70,687
-1,534
29,173
30,707
-2,513
65,292
67,805
—9,587r
—4,754r
— l,131 r
1,051
-4,047
r
r
—9,437
r
—4,707
—l,886r
987
-3,883
-914
-510 r
-2,281
449r
-267
-1,184
-729r
1,629
-570r
-2,205 r
-96
85
3,419
-165
-436
-1,749
-2
-80
-1,172
877
-2,685
-1,084
-124
305
755
64
-164
-133,584
-55,609
-2,896
-3,845
508
-90,005
-14,997
-9,229
-15,300
-185
-3,868
1,385
-6,311
-22,270
-24,087
-474
-3,852
2,247
712
-3,121
-2,833
-126
225
223
-636
-2,403
-681
219
-567
-2,491 r
891r
4,792r
-l,905r
-22
-757 r
-5,476 r
-814
-1,481
-l,495r
-73
-98
161
520
-100
183
-527
-150
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
515r
37,267r
36,752r
-534 r
75,386r
75,920r
-47
agencies and corporations. Also includes issues of new debt securities sold abroad by US.
corporations organized to finance direct investments abroad.
A64
3.25
International Statistics • June 1995
MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions1
Millions of dollars; net purchases, or sales (—) during period
1994
1995
Area or country
1993
1995
1994
Jan.Feb.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.p
1
Total estimated
23,451
78,878
23,259
15,133
11,085
10,637
13,112
11,498
9,216
14,043
2
Foreign countries
23,225
78,819
23,215
14,717
11,163
9,542
13,075
11,901
9,890
13,325
3
4
5
6
7
8
9
10
11
Europe
Belgium and Luxembourg
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Europe and former U.S.S.R
Canada
-2,403
1,218
-9,975
-515
1,421
-1,501
6,167
782
10,309
39,214
1,096
6,643
1,412
794
395
23,436
5,438
3,168
16,177
241
-483
2,149
62
331
10,735
3,142
4,663
8,248
529
1,795
-15
-158
-260
5,336
1,021
1,888
3,922
-15
-243
-68
105
441
3,522
180
1,515
-1,430
32
254
954
-37
-718
-1,822
-93
-420
7,786
25
924
-2
211
-1,512
7,728
412
-1,352
8,227
433
725
156
61
656
6,196
0
-557
2,906
134
60
2,388
-35
166
299
-106
3,177
13,271
107
-543
-239
97
165
10,436
3,248
1,486
12
13
14
15
16
17
18
19
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other
-4,572
390
-5,806
844
20,581
17,070
1,156
-1,846
-9,532
-270
-19,735
10,473
46,298
29,584
240
-569
-2,632
118
-297
-2,453
5,260
5,760
40
-293
-2,311
-132
3,171
-5,350
5,987
3,681
80
825
-666
19
1,487
-2,172
6,761
3,210
200
-569
6,680
7
-449
7,122
4,436
2,190
135
141
713
43
-2,086
2,756
4,942
4,551
-11
997
984
91
80
813
3,642
2,067
58
-453
636
-211
3,028
-2,181
3,567
3,444
-9
-387
-3,268
329
-3,325
-272
1,693
2,316
49
94
226
-279
654
59
186
75
44
-100
193
416
317
-4
-78
-65
-1
1,095
1,074
6
37
73
4
-403
-322
-3
-674
-708
-6
718
608
199
23,225
1,322
21,903
78,819
41,525
37,294
23,215
3,809
19,406
14,717
9,246
5,471
11,163
4,688
6,475
9,542
2,891
6,651
13,075
2,666
10,409
11,901
582
11,319
9,890
1,747
8,143
13,325
2,062
11,263
-8,836
-5
22
0
-449
0
621
1
3
0
445
0
623
0
-405
-1
-360
0
-89
0
20
21
22
Nonmonetary international and regional organizations
International
Latin American regional
MEMO
23
24
25
26
27
Foreign countries
Official institutions
Other foreign
Oil-exporting countries
Middle East 2
1. Official and private transactions in marketable US. Treasury securities having an
original maturity of more than one year. Data are based on monthly transactions reports.
Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of
foreign countries.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
Interest and Exchange Rates
3.26
A65
DISCOUNT RATES OF FOREIGN CENTRAL BANKS1
Percent per year, averages of daily figures
Rate on Apr. 30, 1995
Rate on Apr. 30, 1995
Country
Month
effective
4.0
4.0
8.17
6.0
5.0
Austria..
Belgium.
Canada..
Denmark
France .
Mar. 1995
Mar. 1995
Apr. 1995
Mar. 1995
July 1994
Month
effective
Germany...
Italy
Japan
Netherlands
4.0
8.25
1.0
4.0
1. Rates shown are mainly those at which the central bank either discounts or makes
advances against eligible commercial paper or government securities for commercial
banks or brokers. For countries with more than one rate applicable to such discounts or
advances, the rate shown is the one at which it is understood that the central bank
transacts the largest proportion of its credit operations.
3.27
Rate on Apr. 30, 1995
Country
Country
Mar.
Feb.
Apr.
Mar.
1995
1995
1995
1995
Month effective
Norway
Switzerland
United Kingdom
4.75
3.0
12.0
Feb. 1994
Mar. 1995
Sept. 1992
2. Since February 1981, the rate has been that at which the Bank of France discounts
Treasury bills for seven to ten days.
FOREIGN SHORT-TERM INTEREST RATES1
Percent per year, averages of daily figures
1994
Type or country
1992
1993
1995
1994
Oct.
8 Italy
3.70
9.56
6.76
9.42
7.67
9.25
10.14
13.91
9.31
4.39
3.18
5.88
5.14
7.17
4.79
6.73
8.30
10.09
8.10
2.96
4.63
5.45
5.57
5.25
4.03
5.09
5.72
8.45
5.65
2.24
1. Rates are for three-month interbank loans, with the following exceptions: Canada,
finance company paper; Belgium, three-month Treasury bills; and Japan, CD rate.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
5.52
5.83
5.56
5.12
4.02
5.12
5.52
8.80
5.15
2.33
5.78
5.98
5.77
5.10
3.86
5.15
5.49
8.72
5.09
2.33
6.27
6.30
6.75
5.29
4.07
5.35
5.82
8.98
5.42
2.34
6.23
6.50
7.86
5.04
3.95
5.09
5.76
9.10
5.29
2.31
6.14
6.68
8.14
5.00
3.77
5.03
5.70
9.07
5.33
2.27
6.15
6.61
8.32
4.96
3.62
5.03
7.77
10.98
6.21
2.11
6.13
6.64
8.16
4.58
3.33
4.60
7.60
10.94
5.22
1.55
A66
3.28
International Statistics • June 1995
FOREIGN EXCHANGE RATES1
Currency units per dollar except as noted
1994
Country/currency unit
1992
1993
1995
1994
Nov.
1
2
3
4
5
6
7
8
9
10
Australia/dollar2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
11
12
13
14
15
16
17
18
19
20
Hong Kong/dollar
India/rupee
Ireland/pound2
Italy /lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar2
Norway/krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound2
Dec.
Jan.
Feb.
Mar.
Apr.
73.521
10.992
32.148
1.2085
5.5206
6.0372
4.4865
5.2935
1.5618
190.81
67.993
11.639
34.581
1.2902
5.7795
6.4863
5.7251
5.6669
1.6545
229.64
73.161
11.409
33.426
1.3664
8.6404
6.3561
5.2340
5.5459
1.6216
242.50
75.492
10.838
31.694
1.3647
8.5370
6.0268
4.7388
5.2867
1.5396
237.38
77.389
11.063
32.329
1.3893
8.5119
6.1614
4.8590
5.4132
1.5716
242.96
76.469
10.769
31.542
1.4132
8.4608
6.0311
4.7506
5.2912
1.5302
238.21
74.473
10.573
30.908
1.4005
8.4553
5.9302
4.6547
5.2252
1.5022
236.17
73.452
9.898
29.035
1.4077
8.4483
5.6281
4.3967
4.9756
1.4061
228.53
73.564
9.720
28.419
1.3762
8.4421
5.4391
4.2884
4.8503
1.3812
225.19
7.7402
28.156
170.42
1,232.17
126.78
2.5463
1.7587
53.792
6.2142
135.07
7.7357
31.291
146.47
1,573.41
111.08
2.5738
1.8585
54.127
7.1009
161.08
7.7290
31.394
149.69
1,611.49
102.18
2.6237
1.8190
59.358
7.0553
165.93
7.7306
31.394
156.39
1,583.81
98.04
2.5604
1.7261
62.093
6.7297
157.27
7.7379
31.389
153.36
1,633.71
100.18
2.5626
1.7601
63.726
6.8561
161.21
7.7439
31.374
155.67
1,611.53
99.77
2.5556
1.7159
64.018
6.6968
157.86
7.7314
31.380
156.20
1,620.58
98.24
2.5526
1.6844
63.448
6.5974
155.36
7.7318
31.587
159.76
1,688.99
90.52
2.5464
1.5774
64.598
6.2730
147.92
7.7336
31.407
162.80
1,710.89
83.69
2.4787
1.5474
66.723
6.2050
145.89
1.6294
2.8524
784.66
102.38
44.013
5.8258
1.4064
25.160
25.411
176.63
1.6158
3.2729
805.75
127.48
48.211
7.7956
1.4781
26.416
25.333
150.16
1.5275
3.5526
806.93
133.88
49.170
7.7161
1.3667
26.465
25.161
153.19
1.4682
3.5256
799.46
128.34
49.163
7.3637
1.2956
26.188
24.992
158.92
1.4657
3.5614
794.81
132.31
49.531
7.5161
1.3289
26.381
25.109
155.87
1.4532
3.5404
793.08
132.62
49.870
7.4775
1.2863
26.300
25.133
157.46
1.4541
3.5629
793.19
130.52
49.895
7.3914
1.2715
26.339
25.020
157.20
1.4216
3.6013
781.81
128.58
49.627
7.2787
1.1709
26.102
24.760
160.02
1.3986
3.6035
770.61
124.14
49.371
7.3455
1.1384
25.491
24.572
160.73
87.71
89.64
88.30
87.29
MEMO
31 United States/dollar3
86.61
93.18
91.32
1. Averages of certified noon buying rates in New York for cable transfers. Data in this
table also appear in the Board's G.5 (405) monthly statistical release. For ordering
address, see inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the currencies of
ten industrial countries. The weight for each of the ten countries is the 1972-76 average
83.69
81.81
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).
67
Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference
Issue
June 1995
Page
A76
Issue
Anticipated schedule of release dates for periodic releases
Page
SPECIAL TABLES—Quarterly Data Published Irregularly, with Latest Bulletin Reference
Title and Date
Assets and liabilities of commercial banks
March 31, 1993
June 30, 1993
September 30, 1993
December 31, 1993
August
November
February
May
1993
1993
1994
1994
A70
A70
A70
A68
Terms of lending at commercial banks
May 1994
August 1994
November 1994
February 1995
August
November
February
May
1994
1994
1995
1995
A68
A68
A68
A68
Assets and liabilities of U.S. branches and agencies of foreign banks
March 31, 1994
June 30, 1994
September 30, 1994
December 31, 1994
August
November
February
May
1994
1994
1995
1995
A72
A72
A72
A72
Pro forma balance sheet and income statements for priced service
June 30, 1991
September 30, 1991
March 30, 1992
June 30, 1992
November
January
August
October
1991
1992
1992
1992
A80
A70
A80
A70
December
May
August
March
1991
1992
1992
1993
A79
A81
A83
A71
Assets and liabilities of life insurance
June 30, 1991
September 30, 1991
December 31, 1991
September 30, 1992
operations
companies
68
Index to Statistical Tables
References are to pages A3-A66 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 21, 22
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-22
Domestic finance companies, 36
Federal Reserve Banks, 11
Financial institutions, 28
Foreign banks, U.S. branches and agencies, 23
Automobiles
Consumer installment credit, 39
Production, 47, 48
BANKERS acceptances, 10, 22, 26
Bankers balances, 18-22. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 35
Rates, 26
Branch banks, 23
Business activity, nonfinancial, 45
Business expenditures on new plant and equipment, 35
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 11
Central banks, discount rates, 65
Certificates of deposit, 26
Commercial and industrial loans
Commercial banks, 21
Weekly reporting banks, 21-23
Commercial banks
Assets and liabilities, 18-22
Commercial and industrial loans, 18-23
Consumer loans held, by type and terms, 39
Deposit interest rates of insured, 16
Loans sold outright, 22
Real estate mortgages held, by holder and property, 38
Time and savings deposits, 4
Commercial paper, 24, 26, 36
Condition statements (See Assets and liabilities)
Construction, 45, 49
Consumer installment credit, 39
Consumer prices, 45,46
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 35
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 39
Currency in circulation, 5, 14
Customer credit, stock market, 27
DEBITS to deposit accounts, 17
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-23
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 23
Turnover, 17
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5, 6, 13
Deposits (See also specific types)
Banks, by classes, 4, 18-22, 24
Federal Reserve Banks, 5, 11
Interest rates, 16
Turnover, 17
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 45
Eurodollars, 26
FARM mortgage loans, 38
Federal agency obligations, 5, 10, 11, 12, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 7, 19, 21, 22, 23, 26, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 37, 38
Federal Housing Administration, 33, 37, 38
Federal Land Banks, 38
Federal National Mortgage Association, 33, 37, 38
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 5, 11, 12, 30
Federal Reserve credit, 5, 6, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 36
Business credit, 36
Loans, 39
Paper, 24, 26
Financial institutions, loans to, 21, 22, 23
Float, 5
Flow of funds, 40, 42, 43, 44
Foreign banks, assets and liabilities of U.S. branches and
agencies, 22, 23
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 11, 21, 22
Foreign exchange rates, 66
Foreign trade, 54Foreigners
Claims on, 55, 58, 59, 60, 62
Liabilities to, 22, 54, 55, 56, 61, 63, 64
69
GOLD
Certificate account, 11
Stock, 5, 54
Government National Mortgage Association, 33, 37, 38
Gross domestic product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 45, 51, 52
Industrial production, 45, 47
Installment loans, 39
Insurance companies, 30, 38
Interest rates
Bonds, 26
Consumer installment credit, 39
Deposits, 16
Federal Reserve Banks, 8
Foreign central banks and foreign countries, 66
Money and capital markets, 26
Mortgages, 37
Prime rate, 25
International capital transactions of United States, 53-65
International organizations, 55, 56, 58, 61, 62
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18-23
Commercial banks, 4, 18-23
Federal Reserve Banks, 11, 12
Financial institutions, 38
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18—23
Commercial banks, 4, 18-23
Federal Reserve Banks, 5, 6, 8, 11, 12
Financial institutions, 38
Insured or guaranteed by United States, 37, 38
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 27
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 7
Reserve requirements, 9
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 4, 13
Money and capital market rates, 26
Money stock measures and components, 4, 14
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 10
PERSONAL income, 52
Prices
Consumer and producer, 45, 50
Stock market, 27
Prime rate, 25
Producer prices, 45, 50
Production, 45, 47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 21, 22, 38
Terms, yields, and activity, 37
Type of holder and property mortgaged, 38
Repurchase agreements, 7, 21-23
Reserve requirements, 9
Reserves
Commercial banks, 18
Depository institutions, 4, 5, 6, 13
Federal Reserve Banks, 11
U.S. reserve assets, 54
Residential mortgage loans, 37
Retail credit and retail sales, 39, 40, 45
SAVING
Flow of funds, 40, 42, 43, 44
National income accounts, 51
Savings and loan associations, 38, 39, 40
Savings banks, 38, 39
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 63
New issues, 34
Prices, 27
Special drawing rights, 5, 11, 53, 54
State and local governments
Deposits, 21, 22
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 21, 22
Rates on securities, 26
Stock market, selected statistics, 27
Stocks (See also Securities)
New issues, 34
Prices, 27
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 4. (See also Credit unions and Savings and
loan associations)
Time and savings deposits, 4, 14, 16, 18-23
Trade, foreign, 54
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 11, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18-23
Treasury deposits at Reserve Banks, 5, 11, 28
U.S. government securities
Bank holdings, 18-23, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 5, 11, 12, 30
Foreign and international holdings and
transactions, 11, 30, 64
Open market transactions, 10
Outstanding, by type and holder, 28, 30
Rates, 26
U.S. international transactions, 53-66
Utilities, production, 48
VETERANS Administration, 37, 38
WEEKLY reporting banks, 22-24
Wholesale (producer) prices, 45, 50
YIELDS (See Interest rates)
70
Federal Reserve Board of Governors
and Official Staff
A L A N GREENSPAN, Chairman
EDWARD W . KELLEY, JR.
ALAN S. BLINDER, Vice Chairman
LAWRENCE B. LINDSEY
OFFICE OF BOARD
DIVISION
MEMBERS
JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant
to the Board
to the Board
THEODORE E. ALLISON, Assistant to the Board for Federal
Reserve System Affairs
LYNN S. FOX, Deputy Congressional Liaison
WINTHROP P. HAMBLEY, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
PORTIA W. THOMPSON, Equal Employment Opportunity
Programs Adviser
OF INTERNATIONAL
EDWIN M. TRUMAN, Staff
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate Director
DALE W. HENDERSON, Associate Director
DAVID H. HOWARD, Senior
Adviser
DONALD B. ADAMS, Assistant
Director
THOMAS A. CONNORS, Assistant
Director
PETER HOOPER III, Assistant
Director
KAREN H. JOHNSON, Assistant Director
CATHERINE L. MANN, Assistant Director
RALPH W. SMITH, JR., Assistant
LEGAL
FINANCE
Director
Director
DIVISION
J. VIRGIL MATTINGLY, JR., General
Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel
ROBERT DEV. FRIERSON, Assistant General Counsel
KATHERINE H. WHEATLEY, Assistant General Counsel
OFFICE OF THE
SECRETARY
WILLIAM W . WILES,
Secretary
JENNIFER J. JOHNSON, Deputy
Secretary
BARBARA R. LOWREY, Associate
Secretary
DAY W. RADEBAUGH, JR., Assistant
Secretary1
DIVISION OF BANKING
SUPERVISION AND
REGULATION
RICHARD SPILLENKOTHEN,
Director
STEPHEN C. SCHEMERING, Deputy
DON E. KLINE, Associate
Director
Director
WILLIAM A . RYBACK, Associate
Director
FREDERICK M. STRUBLE, Associate Director
HERBERT A. BIERN, Deputy Associate Director
ROGER T. COLE, Deputy Associate Director
JAMES I. GARNER, Deputy Associate Director
HOWARD A. AMER, Assistant
Director
GERALD A. EDWARDS, JR., Assistant
Director
JAMES D. GOETZINGER, Assistant
Director
STEPHEN M. HOFFMAN, JR., Assistant
Director
LAURA M. HOMER, Assistant
Director
JAMES V. HOUPT, Assistant
Director
JACK P. JENNINGS, Assistant
Director
MICHAEL G. MARTINSON, Assistant
Director
RHOGER H PUGH, Assistant
Director
SIDNEY M. SUSSAN, Assistant
Director
MOLLY S. WASSOM, Assistant
Director
WILLIAM SCHNEIDER, Project
Director,
National Information
Center
1. On loan from the Division of Information Resources Management
DIVISION
OF RESEARCH
MICHAEL J. PRELL,
AND
STATISTICS
Director
EDWARD C. ETTIN, Deputy
Director
DAVID J. STOCKTON, Deputy
Director
MARTHA BETHEA, Associate
Director
WILLIAM R. JONES, Associate
Director
MYRON L. KWAST, Associate
Director
PATRICK M. PARKINSON, Associate
Director
THOMAS D. SIMPSON, Associate
Director
LAWRENCE SLIFMAN, Associate Director
MARTHA S. SCANLON, Deputy Associate Director
PETER A. TINSLEY, Deputy Associate Director
FLINT BRAYTON, Assistant Director
DAVID S. JONES, Assistant
Director
STEPHEN A. RHOADES, Assistant
Director
CHARLES S. STRUCKMEYER, Assistant
Director
ALICE PATRICIA WHITE, Assistant
JOYCE K. ZICKLER, Assistant
JOHN J. MINGO, Senior
G L E N N B . CANNER,
DIVISION
Adviser
Adviser
OF MONETARY
DONALD L . KOHN,
Director
Director
AFFAIRS
Director
DAVID E. LINDSEY, Deputy Director
BRIAN F. MADIGAN, Associate Director
RICHARD D. PORTER, Deputy Associate Director
VINCENT R. REINHART, Assistant
Director
NORMAND R.V. BERNARD, Special Assistant to the Board
DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
GRIFFITH L . GARWOOD,
Director
GLENN E. LONEY, Associate
Director
DOLORES S. SMITH, Associate
Director
MAUREEN P. ENGLISH, Assistant
Director
IRENE SHAWN M C N U L T Y , Assistant
Director
SUSAN M . PHILLIPS
JANET L . YELLEN
OFFICE OF
STAFF DIRECTOR
FOR MANAGEMENT
S. DAVID FROST, Staff Director
SHEILA CLARK, EEO Programs
DIVISION OF HUMAN
MANAGEMENT
DAVID L . S H A N N O N ,
CLYDE H . FARNSWORTH, JR.,
Director
RESOURCES
Director
JOHN R. WEIS, Associate
ANTHONY V. DIGIOIA, Assistant
JOSEPH H. HAYES, JR., Assistant
OFFICE
OF THE
Director
Director
Director
CONTROLLER
GEORGE E . LIVINGSTON,
DIVISION
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
MARIANNE M. EMERSON, Assistant Director
Po KYUNG KIM, Assistant Director
RAYMOND H. MASSEY, Assistant
EDWARD T. MULRENIN, Assistant
ELIZABETH B. RIGGS, Assistant
RICHARD C. STEVENS, Assistant
Director
LOUISE L. ROSEMAN, Associate
Director
CHARLES W. BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director
Director
Director
Director
Director
Director
JEFFREY C. MARQUARDT, Assistant
JOHN H. PARRISH, Assistant
Director
Director
FLORENCE M. YOUNG, Assistant
Director
OFFICE OF THE INSPECTOR
BRENT L. BOWEN, Inspector
STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
OPERATIONS
DAVID L. ROBINSON, Deputy Director (Finance and
Control)
EARL G. HAMILTON, Assistant
Director
FRED HOROWITZ, Assistant
DIVISION OF RESERVE BANK
AND PA YMENT SYSTEMS
GENERAL
General
DONALD L. ROBINSON, Assistant Inspector General
BARRY R. SNYDER, Assistant Inspector General
72
Federal Reserve Bulletin • June 1995
Federal Open Market Committee
and Advisory Councils
FEDERAL
OPEN MARKET
COMMITTEE
MEMBERS
A L A N GREENSPAN, Chairman
WILLIAM J. MCDONOUGH, Vice
ALAN S. BLINDER
LAWRENCE B . LINDSEY
THOMAS M . HOENIG
THOMAS C . MELZER
SUSAN M . PHILLIPS
EDWARD W . KELLEY, JR.
CATHY E. MINEHAN
JANET L. YELLEN
ALTERNATE
EDWARD G . BOEHNE
MICHAEL H . MOSKOW
MEMBERS
ROBERT D . MCTEER
JERRY L. JORDAN
ERNEST T. PATRIKIS
GARY H . STERN
STAFF
and
Economist
WILLIAM G . DEWALD, Associate
Economist
NORMAND R.V. BERNARD, Deputy
Secretary
WILLIAM C . HUNTER, Associate
Economist
DONALD L. KOHN, Secretary
JOSEPH R . COYNE, Assistant
GARY P. GILLUM, Assistant
DAVID E . LINDSEY, Associate
Secretary
FREDERIC S. MISHKIN, Associate
Secretary
J. VIRGIL MATTINGLY, JR., General
LARRY J. PROMISEL, Associate
Counsel
THOMAS C. BAXTER, JR., Deputy General Counsel
CHARLES J. SIEGMAN, Associate
MICHAEL J. PRELL,
LAWRENCE SLIFMAN, Associate
Economist
EDWIN M . TRUMAN,
DAVID J. STOCKTON, Associate
Economist
LYNN E . BROWNE, Associate
THOMAS E. DAVIS, Associate
CARL E. VANDER WILT, Associate
Economist
Economist
Economist
Economist
Economist
Economist
Economist
Economist
Economist
PETER R. FISHER, Manager, System Open Market Account
FEDERAL ADVISORY
COUNCIL
ANTHONY P. TERRACCIANO,
President
Seventh District
III, Eighth District
RICHARD M . KOVACEVICH, Ninth District
CHARLES E. NELSON, Tenth District
CHARLES R . HRDLICKA, Eleventh District
EDWARD A . CARSON, Twelfth District
First District
Second District
ANTHONY P. TERRACCIANO, Third District
FRANK V. CAHOUET, Fourth District
RICHARD G . TILGHMAN, Fifth District
CHARLES E. RICE, Sixth District
MARSHALL
N.
President
MARSHALL N . CARTER, Vice
ROGER L. FITZSIMONDS,
CARTER,
ANDREW
WALTER V. SHIPLEY,
HERBERT V. PROCHNOW, Secretary
JAMES ANNABLE,
WILLIAM J. KORSVIK,
Chairman
B.
CRAIG,
Emeritus
Co-Secretary
Co-Secretary
CONSUMER
ADVISORY
COUNCIL
JAMES L. WEST, Tijeras, New Mexico, Chairman
KATHARINE W. MCKEE, Washington, D.C., Vice Chairman
D . DOUGLAS 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
THOMAS R . BUTLER, R i v e r w o o d s , I l l i n o i s
TERRY JORDE, Cando, North Dakota
ROBERT A . COOK, B a l t i m o r e , M a r y l a n d
EUGENE I. LEHRMANN, M a d i s o n , W i s c o n s i n
ALVIN J. COWANS, O r l a n d o , F l o r i d a
RONALD A . PRILL, M i n n e a p o l i s , M i n n e s o t a
MICHAEL FERRY, St. L o u i s , M i s s o u r i
LISA RICE-COLEMAN, T o l e d o , O h i o
ELIZABETH G . FLORES, L a r e d o , T e x a s
JOHN R . RINES, D e t r o i t , M i c h i g a n
EMANUEL FREEMAN, P h i l a d e l p h i a , P e n n s y l v a n i a
JULIA M . SEWARD, R i c h m o n d , V i r g i n i a
NORMA L . FREIBERG, N e w O r l e a n s , L o u i s i a n a
A N N E B . SHLAY, P h i l a d e l p h i a , P e n n s y l v a n i a
DAVID C . FYNN, C l e v e l a n d , O h i o
REGINALD J. SMITH, Kansas City, Missouri
LORI GAY, Los Angeles, California
JOHN E. TAYLOR, W a s h i n g t o n , D . C .
ROBERT G . GREER, H o u s t o n , T e x a s
LORRAINE VANETTEN, T r o y , M i c h i g a n
KENNETH R. HARNEY, Chevy Chase, Maryland
GRACE W . WEINSTEIN, E n g l e w o o d , N e w J e r s e y
GAIL K . HILLEBRAND, S a n F r a n c i s c o , C a l i f o r n i a
LILY K. YAO, Honolulu, Hawaii
RONALD A . HOMER, B o s t o n , M a s s a c h u s e t t s
ROBERT O . ZDENEK, B a l t i m o r e , M a r y l a n d
THRIFT INSTITUTIONS
ADVISORY
COUNCIL
CHARLES JOHN KOCH, C l e v e l a n d , O h i o ,
President
STEPHEN D. TAYLOR, Miami, Florida, Vice President
E. LEE BEARD, Hazleton, Pennsylvania
DAVID F. HOLLAND, B u r l i n g t o n , M a s s a c h u s e t t s
JOHN E . BRUBAKER, S a n M a t e o , C a l i f o r n i a
JOSEPH C . SCULLY, C h i c a g o , I l l i n o i s
MALCOLM E . COLLIER, L a k e w o o d , C o l o r a d o
JOHN M . TIPPETS, D F W A i r p o r t , T e x a s
GEORGE L. ENGELKE, JR., Lake Success, New York
LARRY T. WILSON, Raleigh, North Carolina
BEVERLY D . HARRIS, L i v i n g s t o n , M o n t a n a
WILLIAM W . ZUPPE, S p o k a n e , W a s h i n g t o n
74
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75
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76
ANTICIPATED
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MUST ACCOMPANY
REQUESTS)
OF
GOVERNORS
Weekly Releases1
Annual
rate
•
Aggregate Reserves of Depository Institutions and
the Monetary Base. H.3 (502) [1.20]
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Thursday
Week ended previous
•
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•
•
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15 th of February,
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78
Maps of the Federal Reserve System
BOSTON
• NEW YORK
PHILADELPHIA
•
S ? Louis
11 •
5
ATLANTA
ALASKA
HAWAII
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 terri
tories as
http://fraser.stlouisfed.org/ follows: the New York Bank serves the
Federal Reserve Bank of St. Louis
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.
79
2-B
1-A
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ti
Buffalo
/*
C
T
/
5-E
Pittsburgh
Baltimore M
D
:
r -m
O •
H
wv
N
C
•Cincinnati
K
Y
I
N
J
\ M
A
R
I
BOSTON
4-D
3-C
•Charlotte
N
Y
sc
NEW YORK
6-F
RICHMOND
CLEVELAND
PHILADELPHIA
8-H
7-G
• Nashville
M
M
I
K
Y
M
O
•
Detroit*
y
""A1
Jacksonville
Little/
Rock (
New Orleans
Louisville
T
N
• Memphis
M
S
Miami*
ATLANTA
ST. LOUIS
CHICAGO
9-1
M
M
• Helena
M
I
sn
•
MINNEAPOLIS
10-J
12-L
W
Y
Omaha •
C
O
\
Denver
M
M
*
I
UA
v";'
•
Oklahoma City
•
O
K
KANSAS CITY
11-K
T
X
•
E Paso
L
Salt Lake City
....
N
M
M
1
(
I—^YTI°USTON
• L o s Angeles
•
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San Antonio^-
DALLAS
SAN FRANCISCO
80
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Jerome H. Grossman
William C. Brainard
Cathy E. Minehan
Paul M. Connolly
NEW YORK*
10045
Maurice R. Greenberg
David A. Hamburg
Joseph J. Castiglia
William J. McDonough
Ernest T. Patrikis
Buffalo
14240
PHILADELPHIA
19105
James M. Mead
Donald J. Kennedy
44101
Jerry L. Jordan
Sandra Pianalto
Cincinnati
Pittsburgh
45201
15230
A. William Reynolds
G. Watts Humphrey, Jr.
John N. Taylor, Jr.
Robert P Bozzone
RICHMOND*
23219
J. Alfred Broaddus, Jr.
Walter A. Varvel
Baltimore
Charlotte
Culpeper
21203
28230
22701
Henry J. Faison
Claudine B. Malone
Michael R. Watson
James O. Roberson
Leo Benatar
Hugh M. Brown
Patricia B. Compton
Lana Jane Lewis-Brent
Michael T. Wilson
James E. Dalton, Jr.
Jo Ann Slaydon
Robert P. Forrestal
Jack Guynn
Robert M. Healey
Richard G. Cline
John D. Forsyth
Michael H. Moskow
William C. Conrad
Robert H. Quenon
John F. McDonnell
Janet M. Jones
Daniel L. Ash
Woods E. Eastland
Thomas C. Melzer
James R. Bowen
Gerald A. Rauenhorst
Jean D. Kinsey
Matthew J. Quinn
Gary H. Stern
Colleen K. Strand
Herman Cain
A. Drue Jennings
Sandra K. Woods
Ernest L. Holloway
Sheila Griffin
Thomas M. Hoenig
Richard K. Rasdall
Cece Smith
Roger R. Hemminghaus
W. Thomas Beard III
Isaac H. Kempner III
Carol L. Thompson
Robert D. McTeer, Jr.
Tony J. Salvaggio
Judith M. Runstad
James A. Vohs
Anita E. Landecker
Ross R. Runkel
Gerald R. Sherratt
George F. Russell, Jr.
Robert T. Parry
Patrick K. Barron
Carl W. Turnipseed1
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
Vice President
in charge of branch
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
SAN FRANCISCO ....
Los Angeles
Portland
Salt Lake City
Seattle
59601
64198
80217
73125
68102
75201
79999
77252
78295
94120
90051
97208
84125
98124
Charles A. Cerino1
Harold J. Swart1
Ronald B. Duncan1
Dan M. Bechter1
Julius Malinowski, Jr.2
Donald E. Nelson 1
FredR. Herr1
James D. Hawkins1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso
Roby L. Sloan1
Karl W. Ashman
Howard Wells
John P. Baumgartner
John D. Johnson
KentM. Scott1
Mark L. Mullinix
Harold L. Shewmaker
Sammie C. Clay
Robert Smith, III1
James L. Stull1
John F. Moore1
Raymond H. Laurence
Andrea P. Wolcott
Gordon Werkema1
* Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Jericho,
New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311;
Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
2. Assistant Vice President.
@FedFRASER