Full text of Federal Reserve Bulletin : March 1992
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
VOLUME 78 •
NUMBER 3 •
MARCH 1992
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood
• Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman
The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions
expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics
Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
169 BANKING MARKETS AND THE USE OF
FINANCIAL SERVICES BY HOUSEHOLDS
Since the 1960s, markets for banking services
have generally been defined as consisting of
financial institutions offering the full range
of banking products in relatively small geographic areas. Recently, some analysts have
questioned whether this view has become outdated through the effects of deregulation, market innovation, and advances in electronic
technology. Addressing the issue with data
from the 1989 Survey of Consumer Finances,
the authors investigate the full range of financial services and institutions used by households and the distances over which households
conduct their financial affairs.
182 STAFF STUDY SUMMARY
Disturbances in settlements of securities transactions have the potential to adversely affect
the stability of payment systems and the integrity of the financial system generally. The
authors of "Clearance and Settlement in U.S.
Securities Markets" present an analysis of the
sources of risk in clearance and settlement
arrangements and describe the arrangements in
place in the United States, including the safeguards employed by U.S. clearing organizations to limit risk.
185 INDUSTRIAL PRODUCTION AND
CAPACITY UTILIZATION
The index of industrial production decreased
0.2 percent in December, after having defined
0.2 percent in November and 0.1 percent in
October. Total industrial capacity utilization
decreased 0.3 percentage point in December to
79.0 percent.
188 STATEMENTS TO THE CONGRESS
John P. La Ware, member, Board of Governors, discusses the current policies governing
examination and supervision of institutions
under the Federal Reserve's supervisory jurisdiction and says that the Federal Reserve, as
well as other bank regulatory agencies, has
provided guidance to its examiners and has
promoted awareness among bankers of its policies in an effort to reduce impediments to
lending to sound borrowers while holding true
to the principles of sound supervision, before
the House Committee on Banking, Finance and
Urban Affairs, January 3, 1992.
191 Alan Greenspan, Chairman, Board of Governors, analyzes the forces affecting the economy and says that the upturn in economic
activity that began last year clearly has faltered, although the containment of inflationary
pressures and expectations, the enhancement
of productivity and efficiency in industry, and
the rebuilding of balance sheets by lenders and
borrowers should promote the return to solid
economic expansion, before a joint meeting of
the Senate Committees on Banking, Housing,
and Urban Affairs and on the Budget, January 10, 1992.
193 Governor La Ware provides the Federal
Reserve's perspective on issues related to
mortgage lending discrimination and focuses
on data recently released under the Home
Mortgage Disclosure Act (HMDA) and says
that the new HMDA information about the
race or national origin, sex, and annual income
of mortgage applicants will make it easier for
Federal Reserve examiners to look behind the
statistical differences in denial rates that may
exist among subsets of applicants at particular
institutions, before the Committee on Banks of
the New York State Assembly, Albany, New
York, January 22, 1992.
195 David W. Mullins, Jr., Vice Chairman, Board
of Governors, presents the Federal Reserve
Board's views on reforms to the regulation of
the government securities market, including
some of the main conclusions of a report on
an examination of that market conducted by
the Federal Reserve, the Treasury Department,
and the Securities and Exchange Commission,
and says that the proposals contained in
the joint report, along with other reforms
announced earlier, constitute the comprehensive modernization of the mechanisms and
practices in the government securities market,
before the Subcommittee on Securities of the
Senate Committee on Banking, Housing, and
Urban Affairs, January 23, 1992.
199 E. Gerald Corrigan, President, Federal Reserve
Bank of New York, discusses the joint report
on improvements in the government securities
market and the official oversight and regulation of that market, specifically with regard to
the activities of the Federal Reserve Bank of
New York, and says that the changes outlined
in the joint report are fully in keeping with a
philosophy of progressive but cautious change,
before the Subcommittee on Securities of the
Senate Committee on Banking, Housing, and
Urban Affairs, January 23, 1992.
201 Chairman Greenspan, in a hearing to consider
his nomination to a second term as Chairman
of the Federal Reserve Board, discusses some
general principles that he believes should guide
decisions on the monetary policy and banking
structure of this country and says that the fundamental task of monetary policy is the fostering of the financial conditions that are most
conducive to the American economy performing at its fullest potential, before the Senate
Committee on Banking, Housing, and Urban
Affairs, January 29, 1992.
Adoption of amendments to Regulation CC as
an interim rule and proposal of other changes
to the regulation.
Release of preliminary figures on operating
income of the Federal Reserve Banks.
Release of revised List of Marginable OTC
Stocks.
Public-access data tape of the National Survey of Small Business Finances now available.
211 LEGAL DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and
pending cases.
A1 FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as of
January 29, 1992.
A3 GUIDE TO TABULAR PRESENTATION
A4 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A69 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
A74
INDEX TO STATISTICAL TABLES
A76 BOARD OF GOVERNORS AND STAFF
A78 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A80 FEDERAL RESERVE BOARD
PUBLICATIONS
204 ANNOUNCEMENTS
Appointment of new members to the Consumer Advisory Council.
Increase in the limit on the amount of noncumulative perpetual preferred stock to be
included in tier 1 capital.
Issuance of a revised Supervisory Policy Statement on Securities Activities.
A82 FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES
A83 MAP OF THE FEDERAL RESERVE
SYSTEM
Banking Markets and the Use
of Financial Services by Households
Gregory E. Elliehausen and John D. Wolken, of the
Board's Division of Research and Statistics, prepared this article. Ronnie McWilliams provided
research assistance.
When a bank proposes to absorb another bank
through merger or acquisition, analysts must determine whether the proposed transaction is likely to
reduce the competitiveness of banking services.
And whether competition would be diminished depends crucially on the definition of the financial
services and geographic area that constitute the
"banking market." The current definition assumes
that competition occurs only in relatively small
geographic areas among financial institutions offering the full range of banking products. Therefore,
only local commercial banks (and, when their offerings warrant, local thrift institutions), with their
broad range of services, are included in the current
definition of a banking market.
The vast majority of banking customers—
households and small businesses—historically have
relied heavily on local commercial banks for their
financial services; hence, the current definition of a
banking market has worked well for assessing most
dimensions of banking competition, such as deposit taking and the provision of credit to small
businesses. Yet, although past evidence supports
the current approach to defining banking markets,
little recent data has been available regarding the
banking practices of small businesses and households. The lack of current data has been troublesome because changes in the financial markets in
the 1980s may have altered the banking practices
of these customers. Among the key market changes
are the authorization of interest-bearing checking
accounts at all depository institutions; the introduction of money market deposit accounts; the
spread of automated teller machines; legislation
in most states permitting the interstate acquisition of banks by bank holding companies; and the
growth of large, nationwide issuers of credit cards.
To assess the importance of these changes for the
analysis of banking markets, the Board of Governors of the Federal Reserve System surveyed small
businesses and consumers to learn more about their
use of financial services and financial institutions.
The survey results regarding small businesses have
already been published.1 This article examines evidence on banking markets for households based on
the 1989 Survey of Consumer Finances. These data
permit an investigation of the full range of financial
services and institutions used by households and the
distances over which these households conduct their
financial affairs.
DEFINING BANKING MARKETS
Analyzing proposed bank mergers for their effect
on competition and hence for their potential violation of antitrust statutes requires a case-by-case
examination of the relevant economic market. To
perform the required review, one must identify all
firms that significantly affect the price, quantity, and
quality of the services produced by the merging parties. Typically this involves specifying both the
variety of products (product market) and the geographic extent (geographic market) over which the
firms compete. This section briefly examines the
1. Gregory E. Elliehausen and John D. Wolken, "Banking Markets and the Use of Financial Services by Small and Medium-Sized
Businesses," Federal Reserve Bulletin, vol. 76 (October 1990),
pp. 801-17; and, for more detail, Gregory E. Elliehausen and John
D. Wolken, Banking Markets and the Use of Financial Services by
Small and Medium-Sized Businesses, Staff Studies 160 (Washington: Board of Governors of the Federal Reserve System, 1990). The
findings support the current approach to the definition of banking
markets for small and medium-sized businesses: Local commercial
banks, and sometimes local thrift institutions, provide the core bundle of banking services to these firms; and nondepository institutions usually provide only single, specialized services.
170
Federal Reserve Bulletin • March 1992
current approach to defining banking markets,
reviews arguments concerning changes in the product and geographic dimensions of banking markets,
and discusses the information needed to help
resolve the issues.
The Current
Definition
Until recently, markets for financial services have
generally been thought to be local and segmented
along institutional lines. This view as applied to
banking is based on the Supreme Court's 1963 decision in the Philadelphia National Bank case and has
been supported by numerous subsequent empirical
studies and several judicial decisions.2 In the Philadelphia decision, the Court concluded that the
product market for antitrust purposes was the entire
bundle or "cluster" of financial services offered
by commercial banks. The Court said that bank
customers cluster their purchases because of a
cost advantage or a "settled consumer preference"
for joint consumption, and therefore only institutions offering the full cluster of bank services—
including demand deposits and commercial loans—
belonged in banking markets. In addition, the Court
concluded that banking markets were local because
the vast majority of commercial bank customers obtained financial services from local banks.
This product definition—the bundle of commercial
bank services—and geographic market definition—
local—is still used today in antitrust analysis in
banking, although thrift institutions are now included in banking markets when they provide the
same financial services as commercial banks.
More recently, some analysts have questioned
whether this thirty-year-old view of banking markets is outdated because of subsequent deregulation, market innovation, and advances in electronic technology. We now examine some of the
factors that may justify broadening the product and
geographic dimensions of banking markets.
2. United States v. Philadelphia National Bank, 374 U.S. 321
(1963). See John D. Wolken, Geographic Market Delineation: A
Review of the Literature, Staff Studies 140 (Washington: Board of
Governors of the Federal Reserve System, 1984) for a review of the
theoretical, legal, and empirical evidence regarding market definition in banking.
Expanding the Product
Market
Among the reasons for expanding the product market is that the distinctions among different types of
financial institutions appear to have blurred during
the 1980s. For example, commercial banks were the
sole source of checking accounts when the Supreme
Court made its determination. Today, savings institutions and credit unions also offer checking, and
many nondepository institutions offer money market accounts with a limited checking feature.
The erosion of traditional distinctions does not
end with checking. During the 1980s, legislation
allowed savings institutions to enter the consumer
credit market and allowed depository institutions to
compete with money market mutual funds by offering money market deposit accounts. In addition,
some depository institutions began offering discount
brokerage services, while many brokerage companies sought to broker customer funds into depository institutions.
On the other hand, commercial banks and other
depository institutions still offer products for which
there may be no close substitutes—namely insured
checking, savings, and time deposits.3 If households
cluster their financial services at insured depository
institutions, or if insured checking, savings, and
time deposits are distinct products and have no close
substitutes, then the current practice of limiting
banking markets to only commercial banks and
comparable other depository institutions may be
appropriate.
Expanding the Geographic
Market
The theoretical basis for defining banking markets
over small geographic areas is a consideration of
transaction costs. The theory holds that economic
markets are likely to be local whenever the transaction costs associated with purchasing or using services produced by distant producers are high in
relation to the value of the service. These high transaction costs render the nonlocally produced services imperfect substitutes for locally produced ser-
3. Money market mutual funds often permit checking, but the
accounts are not insured, and typically both the number of checks
that can be written per time period and the minimum check amount
are restricted.
Banking Markets and the Use of Financial Services by Households
vices. Two groups of transaction costs important in
banking are those for transportation and those for
information. Transportation costs vary directly with
the number of transactions a buyer has with a financial institution, the need to conduct transactions
with the institution in person rather than by telephone or mail, and the distance between the buyer
and the financial institution. Information costs
include the costs for the buyer to search for information about alternative suppliers and the costs for
the supplier to evaluate and monitor the creditworthiness of customers. These costs tend to vary
directly with the frequency of search, the distance
between seller and consumer, and the degree to
which the services supplied are heterogeneous.
Recent developments in financial markets and
institutions have almost surely reduced the transaction costs associated with doing business with distant financial institutions. For example, the expansion of ATMs and ATM networks generally
increased the number of locations and the hours at
which consumers can gain access to their accounts,
thereby allowing consumers to conduct some of
their banking business away from a branch office
and outside regular business hours. Advances in
information technology have reduced creditors'
costs of credit evaluation, which may allow creditors to serve larger geographic areas. This development has probably facilitated the growth of
nationwide issuers of credit cards. The increased
availability of credit cards and home equity lines of
credit has also reduced consumers' transaction costs
for some forms of credit by eliminating the need to
apply each time an extension of credit is desired.
The question is whether the level of transaction
costs has fallen sufficiently to make locally and nonlocally produced financial services close substitutes.
Despite the reduction in transaction costs through
electronic technologies, distance-sensitive transaction costs such as those for transportation, information, and search may remain a consideration in
choosing financial institutions. If this is still the
case, then the geographic extent of banking markets may still be limited for either the cluster or
some specific products.
Resolving the Issue
Whether banking markets have changed is ultimately an empirical question. The 1989 Survey of
171
Consumer Finances is particularly well suited to
analyzing the geographic and product dimensions
of banking markets for households because it provides comprehensive coverage of the sources, locations, and types of services used by households. 4
This article uses the survey to examine several questions on household use of financial services and
financial institutions:
• What is the distance between the offices of the
firms from which households obtain financial services and the household?
• To what extent do financial institutions other
than commercial banks provide financial services to
households and is their geographic distribution similar to that of commercial banks?
• What is the geographic area for each of the different types of financial services used by households? For example, do services involving frequent
transactions tend to be more geographically concentrated than others?
• Do households tend to purchase their financial
services from one institution? Do some households
purchase these services from separate institutions?
And are the bundled services obtained from the
same types of institutions as services purchased
separately?
THE SURVEY OF CONSUMER FINANCES
The 1989 Survey of Consumer Finances (SCF),
which was sponsored by the Federal Reserve Board
and other government agencies, is the most recent
in a series of consumer financial surveys conducted
since 1947 by the Survey Research Center of the
University of Michigan. The 1989 SCF collected a
detailed inventory of assets and liabilities from a
representative sample of the population of U.S.
households. 5 As part of the inventory, the survey
4. In contrast, surveys of suppliers of financial services may fail
to uncover all sources used by households, especially if these
sources have changed recently; and data on the location of customers may not be readily available to suppliers. For reviews of other
approaches to market definition, see Wolken, Geographic Market
Delineation and Elliehausen and Wolken, Banking Markets and the
Use of Financial Services by Small and Medium-Sized Firms, Staff
Studies 160.
5. See Arthur Kennickell and Janice Shack-Marquez, "Changes
in Family Finances from 1983 to 1989: Evidence from the Survey
of Consumer Finances," Federal Reserve Bulletin, vol. 78 (January
1992), pp. 1-18.
172
Federal Reserve Bulletin • March 1992
identified the source of each deposit account, money
market mutual fund account, mortgage, credit line,
and loan. For those sources that are financial institutions, the survey also collected information on the
proximity of the institution to home or work, the
household's usual methods of conducting business
with the institution, the length of relationship with
the institution, and the different types of accounts
held at the institution. Because the types of accounts
held at individual institutions are known, it is possible to identify the cluster of financial services
obtained from each supplier. Thus, the 1989 SCF
allows, for the first time, an investigation of both
the product dimension and the geographic dimension of banking markets.
For this article, the financial institutions are
grouped as follows: commercial banks; savings
institutions (savings and loan institutions and savings banks); credit unions; finance companies; brokerage and mutual fund companies; and other financial institutions (primarily mortgage banks and
insurance companies). The distinction between
depository institutions (commercial banks, savings
institutions, and credit unions) and nondepository
financial institutions is important because depository institutions are the only ones that directly offer
federally insured savings and checking accounts.
For that reason, statistics are presented separately
for depository and nondepository categories. An
institution is considered to be local to a household
if the institution office that is used most often by
the household is located thirty miles or less from
the home or from the work place of the persons
using the institution. 6 The office used by the
household could be a branch of a financial institution whose headquarters are located somewhere else, an ATM, or a mailing address to which
loan payments are sent. The office identified is
the one associated with the "typical" way the
household conducts its business affairs with that
institution.
The financial services considered are checking
accounts (regular, NOW, and share draft), savings
accounts, money market accounts (both money
6. The choice of exactly thirty miles as a boundary is not critical. At a thirty-mile limit, 87.6 percent of the institutions identified
are local. At a thirty-five-mile limit, the local percentage rises to
88.2 percent. At a twenty-five-mile limit, the percentage falls to
85.8 percent. Consequently, conclusions regarding nonlocal usage
are not sensitive to the thirty-mile boundary.
market deposit and money market mutual fund
accounts), certificates of deposit, IRAs and Keogh
accounts, brokerage accounts, trust services, bank
credit cards, mortgages, automobile loans, home
equity and other credit lines, and other loans (other
consumer installment credit, single-payment loans,
and loans from individuals but not charge accounts
or service credit).7
LOCATION OF FINANCIAL INSTITUTIONS
USED BY HOUSEHOLDS
We begin the analysis by assessing the importance
to households of the location of financial institutions, in general and by type of institution (tables 1,
2, and 3). The importance of a type of financial
institution is measured in a number of ways, including the percentages of households that obtain financial services from local and nonlocal institutions,
the average number of institutions used, and the
average number of accounts households have at different types of institutions. In addition, we show the
type and location of what households consider to
be their primary financial institution and their main
checking institution—firms that are particularly
important for household financial relationships.
Frequency of Use
Commercial banks are the most commonly used
type of financial institution, patronized by more than
7. The numbers in this article sometimes differ from those
reported in Kennickell and Shack-Marquez, "Changes in Family
Finances," because of differences in definitions. In this article,
credit cards include only bank cards (Visa, Mastercard, Discover,
and Optima, regardless of whether they were issued by a commercial bank or another type of institution); money market accounts
include checking money market accounts but not cash call accounts;
other loans do not include miscellaneous debt; IRAs and Keogh
accounts as used here do not include employer accounts and 401(k)
accounts; mortgages in this study include loans on investments in
real estate and second houses; and auto loans in this study do not
include other money owed on cars that was not reported as a loan.
Also, in the Kennickell and Shack-Marquez article, tabulations
indicating household ownership of various assets and liabilities
show the percentages of households whose assets or liabilities have
a positive dollar value. In this study, accounts are included even if
they had zero balances at the time of the interview; accounts with
a zero balance are most frequently revolving credit accounts such
as bank credit cards and other lines of credit. The existence
of an account, even with a zero balance, indicates an ongoing
relationship.
Banking Markets and the Use of Financial Services by Households
1.
Percentage of households using local and nonlocal
financial institutions, by type of institution 1
Type of
financial
institution
Local
Nonlocal
89.5
17.8
903
Depository
Commercial bank
Savings
Credit union
87.8
75.4
37.4
23.0
11.7
6.8
3.5
4.4
88.6
77.6
39.4
26.5
Nondepository
Finance company
Brokerage firm
Other financial
28.5
13.3
10.1
7.2
17.5
9.0
4.6
10.9
42.8
21.3
14.0
18.1
1. Sum of local and nonlocal exceeds total because some households use
both local and nonlocal institutions.
An institution is local if the office or branch used by the household is
located thirty miles or less from the household or workplace of the primary
user.
Use of a financial institution consists of use of one or more of the following types of accounts: checking (regular, NOW, and share draft), savings,
money market deposit, money market mutual fund, certificate of deposit, individual retirement (IRA), Keogh, brokerage, trust, bank credit card, mortgage,
motor vehicle loan, home equity or other credit line, and other loan.
Savings institutions consist of savings and loan associations and savings
banks. Other nondepository financial institutions include mortgage banks and
insurance companies.
three-fourths of all households (table 1). However,
other types of depository institutions are also important. About two-fifths of households use savings
institutions, and about one-fourth use credit unions.
The most frequently used type of nondepository
institution is finance companies, used by one-fifth
of households.
Overall, nearly every household that uses any
financial institution uses a local financial institution, while only one in five uses a nonlocal institution. For depository institutions, households are
eight times more likely to use a local institution than
a nonlocal institution, but for nondepository institutions, the preference for local offices is only
50 percent greater than it is for nonlocal offices.
and
Accounts
Commercial banks account for nearly half of the
2.72 financial institutions used on average by households (table 2). In contrast, only one in five financial institutions used is a savings institution, and
about one in ten financial institutions used is a credit
union. Among the nondepository institutions,
finance companies are the most commonly used,
accounting for about one in ten of all financial institutions used.
Local institutions are the dominant providers
of household financial services, accounting for
Mean number of local and nonlocal financial
institutions used per household, by type of
institution 1
Total
All
Number of Institutions
2.
173
MEMO
Type of
financial institution
Local
Nonlocal
total
Percentage
of all
institutions
used
All
2.29
.43
2.72
Depository
Commercial bank .
Savings
Credit union .
1.93
1.17
.48
.28
.16
.09
.04
.03
2.09
1.26
.52
.31
76.8
46.3
19.1
11.4
Finance company .
Brokerage firm . . . .
Other financial
.36
.15
.13
.08
.27
.10
.05
.12
.63
.25
.18
.20
23.2
9.2
6.6
7.4
100
1. For definitions, see note to table 1.
84 percent (2.29 of 2.72) of all institutions used.
Again, the preference for local over nonlocal institutions is far more pronounced for depository institutions than it is for nondepository institutions.
The pattern is similar for the number of accounts
by type of institution (table 3). On average, depository institutions provide 83 percent of the accounts
used by households (3.92 of 4.73), and the overwhelming majority of these accounts are obtained
locally. Commercial banks account for a little more
than half of household accounts, and savings institutions and credit unions account for another third.
Only 17 percent of household accounts are at nondepository institutions, and these accounts are distributed more nearly equally between local and nonlocal institutions.
In sum, the data on the number of institutions
used, the number of accounts, and the frequency of
use lead to the conclusion that the financial relationships of households are heavily dominated by local
commercial banks. The finding that the importance
of local institutions is less for nondepository institutions raises the question of whether nondepository institutions are used differently, perhaps for
fewer or different services, than are depository
institutions.
Primary Institution
and Main Checking
Institution
Households were asked to designate a financial
institution as their " m a i n " or primary financial
institution. Ninety-four percent of all institutions
174
Federal Reserve Bulletin • March 1992
3. Mean number of accounts used per household at local
and nonlocal financial institutions, by type of
institution1
4. Distribution of institutions identified by households as
their primaryfinancialinstitution, by type and locality
of institution1
Percent
Bllilllilis^ii
Nonlocal
MEMO
Total
Percentage
of all
accounts
used
1. For definitions, see note to table 1.
identified by households as primary were local
depository institutions, and 63 percent of primary
institutions were local commercial banks. About
4 percent of institutions identified as primary are
nonlocal, and about 4 percent are nondepository
institutions (table 4).
Checking accounts are the financial service most
frequently used by households. Checking accounts
are particularly important for defining banking markets because they are one of the unique products
provided by commercial banks and other depository institutions. A household's main checking
account is defined as the account on which most of
the household's checks are written. If transaction
costs play a role in the selection of any financial
institution, it is most likely to be the one used for
the main checking account. About 80 percent of
designated primary institutions are also the main
checking institution, a fact underscoring the importance of the checking account in household financial relations.
Almost all main checking accounts are at local
depository institutions (table 5), with 68 percent at
local commercial banks, 21 percent at local savings
institutions, and 9 percent at local credit unions.
Only 2 percent of main checking institutions are
nonlocal, and only 0.5 percent are at nondepository
institutions.8
The data on the primary institution and the main
checking institution suggest that local depository
8. In a small number of cases, a checking account was a money
market account obtained from a brokerage or other nondepository
institution.
Type of
financial
institution
Local
Nonlocal
Total
AU
95.9
4.1
Depository
Commercial bank .
Savings
Credit union
93.7
63.3
21.5
8.9
2.7
1.4
.5
.8
96.4
64.7
22.0
9.7
Nondepository
Finance company .
Brokerage
Other financial
2.2
1.2
.9
.2
1.4
.8
.4
.3
3.6
2.0
1.3
.4
100
1. For definitions, see note to table 1; 84.7 percent of households designated a primary financial institution.
institutions are especially important suppliers of financial services for households. The high percentage
of local institutions for the main checking account
suggests that transaction costs may indeed make
nonlocal institutions imperfect substitutes for local
institutions for at least some financial services.
Multiple Product
Usage
The average number of accounts used per type of
financial institution provides further evidence on the
relative importance of the various institutions to
households and indicates where households may be
bundling or clustering their purchases of financial
services. Households on average have about 2.4
accounts at their primary institution and about 2.5
at their main checking institutions, regardless of
whether they are commercial banks, savings institutions, or credit unions (table 6). As shown earlier,
primary and main checking institutions are usually
local depository institutions.
Multiple accounts are less frequent at nondepository institutions than at local depository institutions. Both finance companies and other financial
institutions appear to be single-product institutions,
each having an average of 1.1 accounts. The only
type of nondepository institution that is associated
with multiple-account usage is the brokerage company, where the average number of accounts for
households using these firms is about 1.7.
In sum, local depository institutions are the principal suppliers of financial services to households,
Banking Markets and the Use of Financial Services by Households
5.
Distribution of institutions identified by households as
their main checking institution, by type and locality
of institution 1
Percent
All
Depository
Commercial bank
Savings
Credit union
98.0
a..
1.7
1.2
*
.5
Nondepository
Finance company
Brokerage
Other financial ..
Mean number of accounts used by households per
financial institution, by type and selected
characteristics of institution 1
100
99.5
69.2
21.2
9.1
.5
.2
.4
*
1. For definitions, see note to table 1; 81.3 percent of households designated a main checking institution.
*Less than 0.05 percent.
and a local commercial bank is the single most
important financial institution. Local savings institutions and credit unions are also important to many
households, and nonlocal and nondepository institutions are also used somewhat. But unlike depository institutions, which are almost always local,
nondepository institutions are more equally divided
between local and nonlocal. Also, nonlocal and nondepository institutions are almost never the household's primary institution nor its main checking
institution.
The data suggest the possibility of clustering—
purchasing multiple services—at primary financial
institutions; at checking institutions, which are generally local depository institutions; and at brokerage companies. In contrast, nonprimary institutions,
finance companies, and other financial institutions
are more apt to be single-product institutions.
GEOGRAPHIC DISTRIBUTION OF SPECIFIC
FINANCIAL SERVICES
In this section we investigate whether nondepository institutions are used by households for the same
financial services they obtain from depository institutions and whether the geographic distributions of
the financial institutions supplying households varies by the type of service supplied.
Local and Nonlocal Service Use
We divide household uses of financial institutions
into asset services—such as checking, savings, and
175
1. For definitions, see note to table 1. Primary institutions and main checking institutions were chosen by respondents.
•Too few observations to provide a reliable estimate.
brokerage accounts—and credit services—such as
mortgages, credit lines, and installment loans.
Asset Services. For each of the asset services,
whether measured by frequency of use (table 7) or
average number of accounts (table 8), the use of
local offices of institutions is much greater than the
use of nonlocal offices. Ninety-three percent (2.65
of 2.84) of asset accounts, for example, are at local
offices. Checking accounts are almost always
obtained from local institutions. Nonlocal offices
are used slightly more frequently for liquid asset
accounts (savings, certificates of deposit, and money
market accounts), but even so, local institutions are
used about nine times more often than nonlocal
institutions. About six times more households use
local offices for IRAs and Keogh accounts than
use nonlocal offices, and about four times more
households use local offices for brokerage accounts
than use nonlocal offices. Trust accounts are obtained relatively most often from nonlocal institutions, but only 3.2 percent of households use trust
services.
These product differences in the distribution of
local and nonlocal financial institutions are consistent with hypotheses about the incidence of transaction costs associated with particular products—
that is, products with more frequent transactions are
more likely to be obtained from local institutions
than are products with less frequent transactions.
These data also suggest that nonlocal suppliers are
not particularly good substitutes for most of the
asset services covered. This conclusion seems espe-
176
Federal Reserve Bulletin • March 1992
7. Percentage of households usingfinancialinstitutions,
by type of account and locality of institution
Type of
account
—
—
Mean number of accounts per household, by type of
account and locality of financial institution1
—
Type of
account
Local
Nonlocal
Total
All
89.5
17.8
90.3
All
Asset
Checking
Other liquid asset
Savings
Money market
Certificate of deposit
IRA or Keogh
Brokerage
Trust
85.4
74.3
58.4
41.1
9.9
2.9
86.2
Asset
Checking
Other liquid asset ..
Savings
Money market
Certificate of deposit ..
IRA or Keogh
Brokerage
Trust
Credit
Bank credit card
Mortgage
Motor vehicle
Home equity or
other credit line ...
Other
75.6
6.6
61.2
43.4
2.0
3.8
2.3
3.2
3.2
1.9
1.4
68.6
15.0
20.0
18.7
20.6
6.9
51.1
30.1
6.1
21.6
19.5
23.0
8.4
3.2
74.9
28.8
9.0
5.8
1
9.3
12.3
1.4
1.7
10.6
13.8
1. Checking accounts consist of regular checking, NOW, and share draft
accounts and exclude money market accounts; savings accounts consist of
passbook, share, and statement savings accounts; money market accounts consist of money market deposit accounts and mutual fund accounts. "Other"
credit accounts include personal loans and home improvement loans. For definition of local, see note to table 1.
daily true for institutions supplying checking and
savings products.
Credit Services. Overall, nearly three quarters of
respondent households have some credit relationship with a financial institution, but households do
not depend quite as much on local institutions for
credit as they do for asset services. The average
number of credit accounts at financial institutions
per household is about 1.9. Bank credit cards, used
by 56 percent of households, are the most widely
used credit product. About two-fifths of households
have a mortgage, a little more than one-third have a
vehicle loan, and one in ten have a home equity or
other credit line.
Measured by number of accounts, credit lines are
the most local credit product, and mortgages are the
least local. Still, a little more than three-fourths of
mortgages are at local institutions.9
9. These statistics may understate the importance of local offices
in mortgage lending. The survey question asked the respondent to
identify the institution at which the household had the mortgage. If
the household had only a mortgage from this institution, the location reported for the institution was probably the one at which payments were made. The institution servicing the mortgage may be a
nonlocal firm that purchased the mortgage from a local originator.
Transaction and information costs are perhaps more important for
loan origination than for loan servicing. If these costs are higher for
nonlocal originators than local originators, then we would expect
loan originators to be more locally concentrated than loan servicers.
Credit
Bank credit card
Mortgage
Motor vehicle
Home equity or
other credit line ...
Other
1. See note to table 7.
These results show a surprisingly large percentage of local suppliers for credit considering the
existence of national suppliers and secondary markets for many of these credit products. Apparently,
transaction costs are a significant factor for credit
products as well as asset products. 10
Geographic Dispersion
of Service Use
Data on the geographic dispersion of the financial
institutions supplying households with various services can provide further insights into how large
geographic markets might be. Indirectly, these data
also suggest the relative importance of transaction
costs for different financial services.
The survey evidence indicates that geographic
areas for financial services used by households may
indeed be small. For all but one service, trust
accounts, the median distance to offices of financial
institutions is ten miles or less; and, again except
10. The finding that mortgages are the least local of the credit
products is consistent with transaction costs considerations. Mortgages are one of the largest debts held by households. Although
search costs increase with distance, expected benefits increase with
the size of the debt instrument, so households are likely to search
over wider geographic areas for mortgages than for other types of
debt. See also Stephen A. Rhoades, Evidence on the Size of Banking Markets from Mortgage Loan Rates in Twenty Cities, Staff Studies 162 (Washington: Board of Governors of the Federal Reserve
System, 1992).
Banking Markets and the Use of Financial Services by Households
Miles between respondents' home or workplace and
their financial institutions, by type of account and
selected percentiles of institutions 1
12
1. Distribution of financial institutions, by distance
from the institution to the customer's residence or
workplace, for checking, other liquid asset
accounts, and credit1
Type of
account
Asset
Checking
Savings
Money market
Certificate of
deposit .
IRA or Keogh .
Brokerage
Trust
Credit
Bank credit card
Mortgage
Motor vehicle ..
Home equity or
other credit
line
Other
1. Respondents were asked to report the miles between the financial institution's office and either their home or workplace, whichever was the lesser
distance. They were asked to designate miles as less than one mile, or as the
actual number of miles between one and fifty, or as more than fifty miles
(shown in table as >50). For definitions of accounts, see note to table 7.
1. See note to table 9. Checking consists of regular checking, NOW, and
share draft accounts; other liquid assets consists of savings, money market
accounts, and certificates of deposit; credit consists of bank credit card
accounts, mortgages, motor vehicle loans, home equity lines of credit, and
other credit such as personal loans and home improvement loans.
TYPES OF FINANCIAL INSTITUTION USED
FOR SPECIFIC PRODUCTS
for trust accounts, at least 75 percent of households' financial institutions are thirty miles or less
from home or work (table 9). For nine of the
twelve financial services, the median distance
from the financial institution is five miles or less.
These findings suggest that transaction costs may
be quite important to the selection of financial
institutions.
As expected, the institutions at which households have checking accounts have the smallest
geographic distribution: 50 percent of the institutions are two miles or less from home or work,
75 percent are five miles or less, and 90 percent are
fifteen miles or less. Institutions used for other
liquid asset accounts are only slightly more widely
distributed, with 90 percent of institutions used for
these accounts being thirty miles or less from home
or work. Institutions used for credit products are
more widely dispersed than institutions used for
checking or other liquid asset accounts, but even
most of these institutions are still not very far from
home or work—the median distance for most credit
products is five or six miles (chart 1). Again, these
findings underscore how tightly circumscribed
is the geographic market for household financial
products.
As shown above, the types and numbers of financial services purchased by households differ by
location of financial service supplier and type of
product. The analysis in this section examines
which products are obtained from specific financial
institutions and explores how these products may
differ between multiple financial service suppliers
and single financial service suppliers. The analysis
permits an assessment of which financial services
belong in the same market and which ones belong
in distinct markets.
Use by Type of Supplier
Tables 10 and 11 show the percentage of households obtaining each financial service and the number of accounts for each service obtained from the
various types of financial institutions. The tables
also include a column showing the use of nonfinancial sources for each financial service, an aspect not
considered above. 11
11. Nonfinancial sources include individuals, retailers, other
nonfinancial businesses, government agencies, and nonprofit
organizations.
178
Federal Reserve Bulletin • March 1992
10. Percentage of households usingfinancialaccounts, by type of account and type of source'
Financial institution
Type of
account
Any
source
Depository
All
A1]
A11
Nonfinancial
source2
Nondepository
Commercial
bank
Savings
Credit
union
All
Finance
company
Brokerage
Other
1
All
92.4
90.3
88.6
77.6
39.4
26.5
42.8
21.3
14.0
18.1
27.9
Asset
Checking
Other liquid
asset
Savings
Money market .
Certificate of
deposit
IRA or Keogh ..
Brokerage
Trust
86.3
75.6
86.2
75.6
86.1
75.4
65.9
55.5
30.6
18.3
22.8
9.6
17.3
.8
.3
.1
13.9
.7
4.6
0
3.8
61.3
43.5
61.2
34.9
21.5
10.7
21.4
12.0
6.0
18.2
16.3
2.4
6.3
.9
5.2
.1
.1
21.8
43.4
21.6
59.4
42.9
17.8
5.6
.7
4.8
.7
.2
.5
.9
.4
.4
19.5
24.2
8.4
4.3
19.5
23.0
8.4
3.2
19.0
15.6
.9
1.1
n,
8.5
5.2
.1
.2
2.0
2.2
.1
.1
.8
7.0
7.6
.9
.1
3.0
0
1.4
.1
1.9
•1
.9
9.8
7.6
2.2
80.0
74.9
68.0
56.6
20.9
13.7
32.8
21.1
1.1
14.8
25.0
56.5
40.8
34.9
55.8
37.2
33.8
54.0
26.3
45.5
14.1
13.7
5.9
12.8
3.1
6.3
7.9
13.3
13.7
.2
5.3
13.5
.8
.1
6.0
*
7.1
8.2
.1
1.5
5.8
1.3
10.8
28.2
10.6
13.8
1.5
2.2
1.9
2.6
2.1
4.1
1.8
4.0
.3
0
*
•
9.4
.8
*
*
*
*
*
1.2
-
Credit
Bank credit
card
Mortgage
Motor vehicle ..
Home equity or
other credit
line
Other
21.8
8.8
10.4
1.1
.1
.3
18.6
1. For definitions, see notes to tables 1 and 7. For variations between
these data and those in Kennickell and Shack-Marquez, "Changes in Family
Finances," see text note 7.
2. Includes individuals, retailers, other nonfinancial businesses, government agencies, and nonprofit organizations.
•Less than 0.05 percent.
A little more than one-fourth of all households
obtain one or more financial services from a nonfinancial source (table 10). This statistic, however,
probably overstates the importance of nonfinancial
sources because the financial service obtained from
them is almost always credit in the miscellaneous
"other loans" category, and generally, the outstanding balance on such loans is small.12 Besides "other
loans," few accounts of any kind are obtained from
nonfinancial sources.
important is money market accounts; nearly onefourth (0.07 of 0.31) of the accounts are obtained
from nondepository sources, which are almost
always brokerage companies (table 11).
IRAs and Keogh accounts, brokerage accounts,
and trust accounts have relatively large shares of
nondepository institution suppliers. Indeed, a nondepository source, brokerage companies, is the second most important source of IRAs and Keogh
accounts for households. For brokerage and trust
accounts, nondepository sources are more important sources of supply than depository institutions.
Asset Services. Checking and other liquid asset
accounts may differ from the other financial services considered in that they are almost always
obtained from a depository institution; commercial
banks are the most frequently used depository
source, but savings institutions and credit unions are
also important suppliers. The only liquid asset
account for which nondepository institutions are
12. As reported in Kennickell and Shack-Marquez, "Changes in
Family Finances," p. 15, the median amount of all other loans for
those having such loans (the category that most closely corresponds
to our "other loan" category) from both nonfinancial and financial
services is about $2,000. In comparison, they report, the median
amount of household debt for those having any debt is about
$15,200.
Credit Services. Nondepository institutions are
significant suppliers of credit services to households: About two-fifths of households have credit
relationships at nondepository institutions. Among
all financial institutions, commercial banks are the
most frequently used institution for every credit
product considered, although the relative importance of commercial banks varies by type of credit
product. Commercial banks are a source of supply
for mortgages about as frequently as savings institutions or nondepository institutions. For vehicle
loans, commercial banks and finance companies are
used with about the same frequency, and credit
Banking Markets and the Use of Financial Services by Households
11.
179
Mean number of financial accounts per household, by type of account and type of source 1
Financial institution
Type of
account
Any
source
Depository
All
Nonfinancial
source
Nondepository
All
Commercial
bank
Savings
Credit
union
All
Finance
company
Brokerage
Other
AU
5.12
4.73
3.92
2.40
.91
.61
.81
.29
JO
.22
39
Asset
Checking
Other liquid
asset
Savings
Money market ..
Certificate of
deposit
IRA or Keogh ..
Brokerage
Trust
2.89
1.05
2.84
1.05
2.49
1.04
1.44
.72
.63
.21
.41
.11
.35
.01
.01
.28
.01
.06
.05
1.29
.71
.31
1.27
.71
.30
1.19
.70
.24
.57
.30
.14
.35
.17
.07
.27
.22
.03
.09
.01
.07
.27
.40
.10
.05
.27
.38
.10
.04
.26
.24
.01
.01
.14
.14
.01
.01
.10
.07
.02
.03
*
*
*
*
.01
.14
.09
.02
*
.01
.10
.09
.01
Credit
Bank credit
card
Mortgage
Motor vehicle ...
Home equity or
other credit
line
Other
2.23
1.89
1.43
.96
.28
.19
.46
.28
.72
.52
.43
.71
.46
.42
.63
.31
.27
.50
.15
.16
.06
.15
.03
.06
.01
.07
.08
.15
.16
.12
.43
.12
.18
.10
.13
.06
.07
.02
.03
.02
.03
.02
.05
.02
.05
*
1. See notes to table 10.
•
12.
.08
.01
.06
*
*
•
*
.01
.01
*
*
*
.01
*
*
.04
.02
.01
.01
.01
.16
.34
*
.01
.06
.15
*
.07
.09
*
*
.02
.06
.01
•
.25
*
0
0
*
*
#
Percentage of households using various accounts at
an institution, for households that have at least one
account at the institution, by type of account and
characteristic of institution 1
Type of
account
AH
Revisited
Earlier, we described data indicating that clustering
or multiple product usage, if it occurs, does not
occur equally across all institutions. A further analysis of the data, together with the findings above,
indicate that multiple product use is concentrated at
local depository institutions, particularly at households' main checking and primary institutions;
among nondepository institutions, multiple product
use is concentrated at brokerage firms.
At the primary, main checking, and other checking institutions, households on average have two to
three accounts (memo, table 12). At these institutions, multiple account usage generally includes
checking; at least three-fourths of households having accounts at these institutions have checking
accounts there. The other product is most often
another liquid asset account or a bank credit card. It
is important to note again that primary and checking institutions are almost always local depository
institutions.
•
0
"Less than 0.005.
unions and savings institutions supply a smaller
but significant percentage of households with vehicle loans. Overall, depository institutions are a
source of more mortgages and vehicle loans than
are nondepository institutions.
Multiple Product Usage
*
Checking3
Other liquid
asset
Savings
Money
market ..
Certificate of
deposit ..
IRA or Keogh ..
Brokerage
Trust
Credit
Bank credit
card
Mortgage
Motor vehicle ...
Home equity or
other credit
line
Other
Main
Primary checking
100
Checking2
NonNonprimary checking
100
100
93.0
75.4
100.0
91.3
100.0
92.9
100
64.4
20.7
57.6
.0
50.1
31.9
48.8
30.1
53.4
32.4
45.9
29.6
45.4
31.6
100
15.2
16.6
25.4
14.1
9.4
14.8
9.8
1.8
.4
14.9
9.7
.9
.3
16.9
12.0
2.3
.4
12.9
22.3
9.8
3.9
12.3
21.4
9.2
4.0
46.7
42.1
47.3
84.8
84.7
25.6
12.5
10.4
26.9
8.9
9.2
31.5
10.4
10.5
52.9
39.4
34.9
49.6
41.0
35.4
5.9
4.7
5.5
3.6
6.6
4.4
8.1
13.9
7.6
14.3
2.37
2.49
2.40
MEMO
Mean number of
accounts per
institution —
1.45
1.39
1. See note to table 7. Primary institutions and main checking institutions
were chosen by respondents; 84.7 percent of households designated a primary institution, and 81.3 percent designated a main checking institution.
2. Checking institutions are those at which the household had one or more
checking accounts or money market accounts with checking.
3. Only 91.3 percent of households with a main checking institution had a
checking account at that institution because the remaining 8.7 percent used a
money market account at that institution for checking.
180
Federal Reserve Bulletin • March 1992
Table 12 also shows that when an account is held
at a nonprimary or nonchecking institution, it is
most likely to be some form of credit. The occurrence of IRAs and Keogh accounts at these institutions is also greater than at primary and checking
institutions.
These, together with earlier findings, indicate that
nonprimary financial institutions, especially finance
companies and other nondepository financial institutions, are likely to be single-product institutions,
and credit products such as mortgages and vehicle
loans appear to be associated with these singleproduct financial institutions. The one nonprimary,
nondepository institution that is an exception to this
conclusion is brokerage companies. Clustering may
occur at brokerage companies, and the products
involved are IRAs and Keogh accounts, brokerage
services, and, less frequently, a money market
account.
CONCLUSION
Local depository institutions, especially local commercial banks, are still the main suppliers for most
of the financial services used by households. The
savings institutions and credit unions used by
households are, like their commercial banks, overwhelmingly local. Nondepository institutions used
by households are also mostly local, but not to the
same extent as are depository institutions.
Commercial banks are the single largest supplier
for most of the financial services. Even so, other
depository and nondepository institutions are important for some of the financial services considered.
Other depository institutions are important suppliers of checking and other liquid asset accounts (savings, certificates of deposit, and money market
accounts), as well as some credit, particularly mortgages. Nondepository institutions are relatively
more important for credit products.
Households certainly do not purchase all of
their services from a single institution. Rather, households seem to bundle some of their purchases at certain institutions (for example, the household's primary institution, the main checking institution, and
brokerage companies), and purchase single products from others (for example, nonprimary institutions, finance companies, and other financial institutions such as mortgage and insurance firms).
Clustering, or multiple service usage, is most often
associated with the checking account, and the institution at which clustering occurs is typically a local
depository institution. Credit products such as
mortgages and vehicle loans are often purchased
separately. The institutions from which credit is
obtained are mostly local, but somewhat less
locally concentrated than suppliers of asset services.
The institutions from which credit products are
obtained are frequently nonbank and nondepository
institutions.
These findings are directly relevant to the definition of banking markets for households. They are
consistent with the view that the markets for many
of the financial services used by households are
local. This is particularly true of asset services.
Somewhat surprisingly, credit products are also
decidedly local as well. Moreover, the data indicate
that there may be validity to the notion that commercial banks and other depository institutions offer
a unique set of services and products that are often
purchased as a bundle. This bundle tends to consist
of a checking account and another liquid asset
account or credit, although other liquid asset
accounts and credit are also purchased separately.
The findings also suggest that each credit service
used by households may belong to a distinct economic market. The geographic dispersion of suppliers differs across products, and the institutions
important to each of the credit products vary.
At least for households, these results support the
current definition of banking markets used in antitrust analysis, which consists of local commercial
banks and, when they provide services similar to
those of commercial banks, other local depository
institutions. Limiting the product market to depository institutions, does not, however, require acceptance of the notion that all bank products belong to
the cluster. The survey results suggest that checking and other liquid asset accounts (savings, certificates of deposit and money market accounts) are
probably a distinct product. These accounts clearly
are different from the other financial services used
by households both in terms of the location and
types of institutions supplying them. Moreover,
these accounts are important: They are used by
nearly every household. This market may not be the
"traditional" product market definition used in
banking, but it does indeed appear to be a relevant
economic market for antitrust analysis.
Banking Markets and the Use of Financial Services by Households
APPENDIX: DEFINITIONS AND IMPUTATIONS
FOR MISSING DATA
The 1989 Survey of Consumer Finances collected
data on specific financial institutions used by households and the households' business relationship with
these financial institutions. These data included the
type of financial institution and the distance between
the household's residence or a household member's
place of employment and the most frequently used
office or branch of the financial institution. Distance was reported as less than one mile, or as the
actual number of miles between one and fifty, or as
more than fifty miles.
The identity and location of each financial institution used by the household was not ascertained
for all financial institutions. By design, this information was collected for only the first six financial
institutions identified by the household. This restriction was necessary to prevent the interview from
becoming too burdensome for households with
complicated finances, but in practice few households exceeded this limit. Also by design, the
identity of the institution was not collected if the
household only had a bank credit card from the
institution. Finally, location information generally
was not collected when respondents did not recall
specific institutions until they were asked about
specific financial products. For these institutions,
however, institution type was collected. As a result
of these considerations, location of the office of the
financial institution used by the household is missing for about one-third of the household-institution
pairs.
When location was missing, it was imputed
assuming that the locations of the unknown institutions are distributed identically to the locations of
the known institutions of the same class and for the
same product. The classes of institutions were commercial banks, savings institutions, credit unions,
finance companies, brokerage companies, and other
financial institutions. The products were checking,
savings, money market accounts, certificates of
deposit, IRAs and Keogh accounts, brokerage services, trust services, bank credit cards, mortgages,
vehicle loans, home equity or other credit lines, and
other loans. Aggregate product or institution categories are derived from the distribution of these
values.
181
As is true for any dataset with missing values,
the imputation procedure could affect the final
results. The institutions for which location is known
are probably the most important financial institutions to the household, since they were reported
without the stimulus of other questions. There are
proportionately fewer missing values for location
for depository institutions than for nondepository
institutions. Within nondepository institutions,
missing values were most prevalent for other financial institutions. Among the products considered,
missing data were most prevalent for bank credit
cards. As mentioned, this latter result is partly due
to the data collection procedure, since location was
obtained only for those credit card suppliers which
also supplied other financial products. Even for this
category, however, location is known for about half
of the institutions identified. When credit cards are
omitted in calculating the aggregate credit statistics, about the same proportion of local and nonlocal suppliers are obtained as those reported in the
tables.
The failure to ascertain the identity of all institutions also affected the computation of the number
of financial institutions per household in table 2 and
the number of accounts per financial institution in
tables 6 and 12. If a financial service was not
obtained from one of the first six institutions, the
SCF requested that the respondent identify the type
of supplier (for example, commercial bank, credit
union, automobile finance company). Fourteen of
the thirty-seven types of supplier categories were
financial institutions, and each of these fourteen
institution types was assumed to be a different institution. This assumption may understate the number
of institutions per household and overstate the number of accounts per institution. The error resulting
from this assumption, however, is likely to be small.
When they were used, most of the institutions not
included in the first six, especially nondepository
institutions, had only one financial service indicated.
All statistics reported in this article were computed using weights to produce estimates that
represent the population of U.S. households. The
weights are the same as those used in Kennickell and Shack-Marquez, "Changes in Family
Finances."
•
182
Staff Studies
The staff members of the Board of Governors of the
Federal Reserve System and of the Federal Reserve
Banks undertake studies that cover a wide range of
economic and financial subjects. From time to time
the studies that are of general interest are published in the Staff Studies series and summarized in
the FEDERAL RESERVE BULLETIN. The analyses and
conclusions set forth are those of the authors and
do not necessarily indicate concurrence by the
Board of Governors, by the Federal Reserve Banks,
or by members of their staffs.
Single copies of the full text of each study are
available without charge. The titles available are
shown under "Staff Studies" in the list of Federal
Reserve Board publications at the back of each
BULLETIN.
STUDY SUMMARY
CLEARANCE AND SETTLEMENT IN U.S. SECURITIES MARKETS
Patrick Parkinson and Jeff Stehm—Staff, Board of Governors
Adam Gilbert, Emily Gollob, Lauren Hargraves, Richard Mead, and
Mary Ann Taylor—Staff, Federal Reserve Bank of New York
Prepared as a staff study in fall 1991
Interest in clearance and settlement arrangements in
securities markets by the Federal Reserve and other
central banks reflects an increasing awareness that
disturbances in settlement processes in those markets can adversely affect the stability of payment
systems and the integrity of the financial system
generally. Such interest had been growing throughout the 1980s and was heightened by the worldwide collapse of equity prices in October 1987. In
the United States, for example, many observers, including senior officials of the Federal Reserve, concluded that the potential for a default by a major
participant in the settlement systems for equities and
equity derivatives had posed the greatest threat to
the financial system during that turbulent period.
Concerns intensified in early 1990, when orderly
liquidation of units of the Drexel Burnham Lambert Group was threatened by difficulties in settling
transactions in certain mortgage-backed securities
and in foreign exchange that arose when participants lost confidence that the units would fulfill
their settlement obligations.
The paper presents an analytical framework for
evaluating credit and liquidity risks in securities
clearance and settlement arrangements and
describes arrangements in place in the United
States. (In this context, securities refers to a wide
range of financial instruments, including securities,
securities options, money market instruments,
futures, and futures options.) The paper was first
prepared for a December 1990 meeting of the Committee on Payment and Settlement Systems of the
Central Banks of the Group of Ten Countries, and
the framework it presents builds on an analysis of
netting and settlement systems by the Committee
on Interbank Netting Schemes of that group.
A common analytical framework is applicable to
a wide range of markets and instruments for two
reasons. First, credit risks in clearance and settlement stem from common factors: (1) changes in
asset prices between the time a trade is initiated and
the time it is settled and (2) gaps between the timing of final transfers of securities (deliveries) and
final transfers of money (payments) on the settle-
183
ment date. Second, similar arrangements have been
designed to reduce credit risks and liquidity risks:
multilateral netting systems and delivery-againstpayment systems.
These arrangements involve two types of specialized financial intermediaries, collectively termed
clearing organizations: (1) clearinghouses, which
perform multilateral netting of purchase and sales
contracts and in many cases provide trade comparison services, and (2) depositories, which immobilize or dematerialize securities and in many cases
integrate a book-entry securities transfer system
with a money transfer system. By integrating securities and money transfer systems, a depository can
provide strong assurances to participants that final
securities transfers (deliveries) will occur if, and
only if, final money transfers (payments) occur, that
is, it can achieve delivery against payment.
In general, the Committee on Interbank Netting
Schemes' central conclusions about the effects of
cross-border and multicurrency netting arrangements also apply to securities clearing organizations (and to futures clearing organizations as well).
A clearing organization has the potential to substantially reduce counterparty credit and liquidity risks
to its participants. However, actual risk reduction
depends critically on the clearing organization's
financial and operational integrity. Should participant defaults impair—or merely create doubts
about—the organization's financial condition, the
consequences for the organization's participants, the
participants' customers and banks, and the financial and payment system could be severe.
To preserve their financial integrity and to minimize the likelihood of systemic consequences,
clearing organizations have instituted riskmanagement systems. The systems are designed so
as to (1) limit losses and liquidity pressures resulting from participant defaults, (2) ensure that settlement will be completed on schedule and any losses
can be recovered from the surviving participants,
and (3) provide reliable and secure operating systems to support the organization's critical functions.
Securities clearance and settlement arrangements
in the United States are noteworthy for the large
and growing number of separate clearing organizations serving different market segments. Across
product groups, separate clearinghouses and depositories have been created for corporate and municipal securities, U.S. government securities, and
mortgage-backed securities. Within product groups,
cash, futures, and options transactions typically are
cleared by separate clearinghouses.
The specific credit, liquidity, and operational
safeguards employed by clearing organizations in
the United States vary considerably. The 1987 stock
market crash revealed potential problems and areas
needing improvement in arrangements for clearance and settlement of equities, futures, and options.
Since that time, clearing organizations for equities
and equity derivatives have significantly strengthened their risk-management systems. Also since
1987, depositories designed to limit settlement risks
have begun to immobilize certain mortgage-backed
securities and commercial paper, and a clearinghouse has begun multilateral netting of transactions
in U.S. government securities. In addition, market
participants have been working on recommendations by the Group of Thirty to shorten the interval
between trade and settlement of corporate securities (equities and bonds) from five to three business
days and to use same-day rather than next-day funds
for settlement payments.
With these improvements in place, further efforts
to strengthen U.S. clearance and settlement arrangements have been directed primarily at improving
coordination among clearing organizations, especially those that clear interrelated products (notably
equities and equity derivatives) for common participants. Lack of coordination among clearing organizations can heighten credit and liquidity risks in
at least three ways. First, lack of information about
their participants' positions with other clearing
organizations may hinder efforts by clearing organizations and other creditors to assess risks accurately. Second, lack of a mechanism for netting
obligations across markets may expose individual
clearing organizations to substantial risks from positions that would present relatively little risk if all
the positions were held with a single clearing organization; clearing organizations attempting to protect themselves may require participants to post
more collateral or cash than would otherwise be
necessary. Third, liquidity pressures on participants
in many cases are exacerbated by differences in settlement cycles or in the timing of daily settlements.
Participants tend to rely extensively on bank
credit to fund their settlement obligations to the various clearing organizations, especially when markets are turbulent. Consequently, monitoring and
184
Federal Reserve Bulletin • March 1992
control of credit risks by commercial banks may, to
some degree, be a reasonable substitute for greater
consolidation of or coordination among U.S. clearing organizations. However, the heightened demand
for bank credit resulting from the fragmented clearing system increases the need to address two issues
that to date have received scant attention: (1) the
adequacy of available credit to support participants'
settlement obligations and (2) the adequacy of
banks' measures to monitor and control the credit
and liquidity risks, especially intraday risks, created by the need to extend such credit.
The perception that fragmentation of the U.S.
clearing system has exacerbated credit and liquidity risks led the Congress to pass legislation calling
for establishment of "linked or coordinated facilities" for settling securities and derivative products.
Currently there appear to be significant obstacles to
consolidation of existing U.S. clearing organizations. Instead, clearing organizations, with the support and encouragement of regulators, have focused
on incremental actions to improve coordination and
create linkages that may achieve many of the potential benefits of consolidation. Clearing organizations have concluded several agreements to share
information about common participants and have
made some progress on synchronizing daily
settlements. Clearinghouses in the futures and
options markets have developed so-called "cross-
margining" agreements intended to reduce credit
and liquidity risks on intermarket positions, in one
case through obligation netting and in other cases
through shared control of positions and collateral.
In the securities markets, each clearinghouse for
corporate and municipal securities has established
a payment netting scheme with its associated depository, and several organizations are discussing ways
to share (and thereby reduce the need for) collateral.
In light of the growing recognition that disturbances in securities settlement systems can destabilize payment systems and financial markets, the
Federal Reserve has in recent years taken a more
active role in both the oversight of settlement
arrangements and the provision of payment services
to clearing organizations. For example, in June 1989
the Federal Reserve issued a policy statement on
private delivery-against-payment systems that
applies to all large-scale private book-entry systems that settle directly or indirectly over Fedwire.
The policy addresses the credit, liquidity, and operational safeguards such systems must implement to
ensure that settlement is timely and that participants do not face excessive intraday risks. All the
clearing organizations that have been formed in
recent years settle over Fedwire, either directly, or
indirectly through the accounts of their settlement
banks.
185
Industrial Production and Capacity Utilization
Released for publication
January
about 1 percent further. Elsewhere, production rose
a bit, led by gains in nonenergy materials and
construction supplies. At 107.8 percent of its 1987
annual average, total industrial production in
December was 0.6 percent above its year-ago level.
For the fourth quarter as a whole, the level of
total output was little changed from that of the
third quarter. Total industrial capacity utilization
17
The index of industrial production decreased
0.2 percent in December, after having declined
0.2 percent in November and 0.1 percent in October.
In December, the output of utilities fell sharply
because of warmer-than-usual weather, while the
production of motor vehicles and parts dropped
Industrial production indexes
Twelve-month percent change
Twelve-month percent change
Products
J
1986
1987
1988
1989
1990
1991
1986
1987
1988
L
1990
1989
1991
Capacity and industrial production
Ratio scale, 1987 production =100
— Total industry
Capacity
-
Ratio scale, 1987 production =100
_
140
— Manufacturing
-
120
-
140
Capacity
________
100
Production
1
1
1
1
1
1
1
/
80
1
1
1
i
1
1
1
1
1
1981
1983
1985
1987
1989
1991
1
-
100
1
1
1
80
1
1
1
1
Percent of capacity
1979
1981
1983
All series are seasonally adjusted. Latest series, December. Capacity is an index of potential industrial production.
120
Production
Percent of capacity
1979
-
1985
1987
1989
1991
186
Federal Reserve Bulletin • March 1992
Industrial production and capacity utilization
Industrial production, index, 1987= 1001
Percentage change
Category
1991
19912
Sept.
r
Oct.
r
NOV.P
Dec.p
Sept.r
Oct.1
107.8
.4
-.1
-.2
.2
.0
-.4
Total
108.4
108.2
108.0
Previous estimate
108.2
108.2
107.8
Major market groups
Products, total
Consumer goods
Business equipment
Construction supplies
Materials
108.9
109.4
122.2
96.5
107.5
108.9
109.7
122.2
94.9
107.3
108.8
109.8
121.8
95.4
106.6
108.6
109.4
121.8
95.8
106.6
.4
.9
.7
-.2
.3
-.1
.3
.0
-1.7
-.2
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
108.9
108.4
109.6
101.4
109.7
108.9
108.1
110.0
100.6
108.6
108.6
107.7
109.8
99.2
110.0
108.7
107.5
110.3
98.9
106.7
.5
.5
.5
.0
-.9
.0
-.3
.4
-.7
-1.0
NOV.P
Dec.p
-.2
.6
.0
.1
-.4
.5
-.6
-.3
-.4
.0
.4
.0
.2
3.5
.5
-5.1
1.2
-.3
-.4
-.2
-1.4
1.3
.1
-.2
.4
-.3
-3.0
1.2
.0
2.7
-4.3
-1.9
MEMO
Capacity utilization, percent
1990
Average,
1967-90
Low,
1982
1991
High,
1988-89
Dec. 1990
to
Dec. 1991
Dec.
Sept.'
Oct.r
Nov.r
Dec.p
Capacity,
percentage
change,
Dec. 1990
to
Dec. 1991
Total
82.2
71.8
85.0
80.6
79.9
79.6
79.3
79.0
2.6
Manufacturing
Advanced processing
Primary processing
Mining
Utilities
81.5
81.1
82.4
87.4
86.8
70.0
71.4
66.8
80.6
76.2
85.1
83.6
89.0
87.2
92.3
79.4
78.5
81.5
90.8
85.1
78.8
77.7
81.3
88.5
85.1
78.6
77.6
81.2
87.8
84.1
78.2
77.2
80.7
86.5
85.2
78.1
77.0
80.9
86.2
82.5
2.9
3.2
2.1
.8
1.1
1. Seasonally adjusted.
2. Change from preceding month to month indicated.
decreased 0.3 percentage point in December to
79.0 percent.
When analyzed by market group, the data show
that the production of consumer goods fell
0.4 percent, reflecting sharp declines in utility output
for residential use and motor vehicles. Among other
consumer goods, the production of goods for the
home, such as appliances, fell last month, but the
output of many nondurables posted small increases.
Despite the ongoing strike in the construction and
mining machinery industry that began in November,
the production of business equipment excluding
autos and trucks was about unchanged again in
December, particularly because of increases in
computers and other information-processing equipment. Among materials, the production of
nondurables, which fell more than 1 percent in
November, rebounded last month, mainly because
of swings in the output of paper; the production of
both chemicals and textiles also moved up in
r Revised,
p Preliminary.
December after small declines in the previous
month. The output of durable materials rose slightly
as most major industries posted small increases.
The gains in the production of durable and
nondurable materials were nearly offset by the
sharp weather-related drop in electricity generation.
When analyzed by industry group, the data show
that manufacturing production edged up in
December, leaving capacity utilization at factories
nearly unchanged at 78.1 percent. Operating rates
for primary-processing industries rose 0.2 percentage point, but those for advanced-processing
industries fell 0.2 percentage point. The utilization
rate for advanced-processing industries has fallen
back in the past few months to a level only slightly
above its March low, mainly because of reduced
output of motor vehicles and nonelectrical
machinery. The operating rate for primaryprocessing industries, which increased a bit in
August and September, has slipped back slightly
Industrial Production and Capacity Utilization
since then. Its dip in November and partial rebound
in December mainly resulted from movements in
paper output. Elsewhere in primary processing, the
utilization rate for steel edged down in December
but remained well above its summer level.
187
Output at utilities fell sharply as warmer-thanusual weather reduced the demand for electricity
and gas. Mining output declined slightly as oil and
gas extraction activity slowed further.
188
Statements to the Congress
Statement by John P. LaWare, Member, Board
of Governors of the Federal Reserve System,
before the Committee on Banking, Finance and
Urban Affairs, U.S. House of Representatives,
January 3, 1992
I am pleased to be here today to discuss, as the
committee requested, the current policies governing examination and supervision of institutions under the Federal Reserve's supervisory
jurisdiction. It is clear that the committee is most
concerned with initiatives that the Federal Reserve and other supervisory agencies have taken
in response to ongoing concerns regarding credit
availability, and that is where I will focus my
discussion. In the process, I intend to indicate
how the National Examiners' Conference, held
in Baltimore on December 16 and 17, furthered
the objectives sought in introducing these initiatives.
Chairman Greenspan, in his appearance before
the House Ways and Means Committee on December 18, stated that the upturn in U.S. business activity that began earlier in 1991 has faltered. On that occasion, as well as on earlier
ones, he noted that the forces responsible for this
development appear, to a considerable extent, to
be working through the financial sector, in good
part representing a reaction to excesses of the
last decade.
In the 1980s, a series of factors combined to
promote a boom in the real estate sector, particularly the commercial sector. The boom was
sparked by the combination of a shortage of
commercial space at the start of the decade, by
changes in the tax laws that provided added
incentives for investing in real estate, and by
long-standing, widely held expectations that real
estate prices would continue to rise over the
indefinite future as they generally had in the
post-World War II period. Further impetus was
provided by appraisers who, influenced by the
speculative atmosphere, based their assessments
on overly optimistic assumptions about future
demands for real estate and the ability of properties to generate sufficient cash flow to service
the debt obligations financing them.
Depository institutions also played an important role in the process. Facing intense competition in their operations, all too many institutions
decided to lower their standards for real estate
lending to earn attractive fees and high interest
returns.
The results of this excessive optimism and
failure to adhere to time-tested lending standards
are plainly visible. There is a widespread overcapacity in our commercial real estate markets.
And reflecting this condition, our financial institutions have suffered and, in some cases, continue to suffer heavy losses on their real estate
loans.
Asset quality problems, moreover, have not
been confined to the real estate sector. A large
number of businesses, particularly those that
chose to substitute debt for equity, have been
encountering difficulties in meeting their debtservicing obligations. And all too many households, encouraged by the availability of ready
credit during the 1980s, became overextended
and subsequently have proved unable to meet
their debt obligations. The net result of these
developments has been that some of our financial
institutions have been under considerable strain.
Mounting losses in their loan portfolios have
weakened their capital positions.
Against this background, it is not surprising
that depository institutions—both those that are
experiencing problems and others that are intent
upon avoiding such problems—decided to become more conservative in setting the terms on
which they are prepared to lend and in establishing standards that borrowers must meet to obtain
new credit or to renew outstanding loans. Given
the relatively easy practices and standards in the
1980s, a shift in the direction of more conservative lending was unquestionably an appropriate
Statements
development. Unfortunately, however, the process has, in some cases, gone too far and in the
course of correcting past mistakes produced a
counterproductive result. What has happened is
that some creditworthy borrowers have been
finding it difficult, if not impossible, to obtain
adequate credit accommodation. Consequently a
drag has been placed on the upturn in economic
activity.
In the context of these developments, the
Federal Reserve has over the past year and a half
or so taken several steps to reduce interest rates
and encourage a general easing in credit markets.
Last month's cut of a full percentage point in the
discount rate, to 3Vi percent, which was accompanied by a further reduction of the federal funds
rate, is the latest and perhaps most dramatic of
this series of actions.
The Federal Reserve together with other supervisors of depository institutions has also been
working to ensure that our supervisory policies
and examiner practices are not encouraging
overly cautious lending policies at depository
institutions. To that end, the Federal Reserve
and other supervisory agencies have introduced
a series of initiatives designed to clarify longstanding policies and to make sure that examiners and depository institutions are fully informed
of our policies. In starting a review of these
initiatives, it is important that I emphasize that
we have endeavored to make sure that the guidance issued and the policies adopted are fully
consistent with prudent credit standards and do
not represent a weakening of, or a departure
from, past policies and practices. The objective
has been to see that these policies are articulated
clearly and understood by examiners and the
management of institutions they supervise. It has
been our hope and expectation that these efforts
will work to ensure that examiners utilize prudent and balanced practices and procedures in
their activities and that institutions are not deterred in making new loans or renewing existing
loans to creditworthy borrowers because of unwarranted concerns about possible examiner
criticism.
A brief recounting of the major initiatives that
have been taken will help to illustrate this most
critical element that is common to all. The joint
policy statement adopted by the four depository
to the Congress
189
institution regulatory agencies on March 1 of last
year was structured to provide clarification of
long-standing agency policies regarding general
lending practices as well as the evaluation of real
estate collateral. The guidance reiterated the
principle that it is altogether appropriate for
banks, even those in the process of strengthening
their financial profiles, to meet the legitimate
credit needs of creditworthy customers, provided that that is done on a prudent basis. To that
end, the guidance indicated that it was appropriate for banks to work with troubled borrowers
consistent with safe and sound lending practices.
It also made clear that even banks not meeting
the minimum capital standards need not stop
making sound loans, provided that they have
reasonable and effective plans in place to expeditiously restore their capital to adequate levels.
The statement also directed that examiners, in
evaluating real estate loans, should base their
valuation of collateral supporting such loans not
solely on the current liquidation value of the
property but should also take into account its
stabilized cash flow and income-producing capacity.
The March 1 policy statement also addressed
other topics involving loans to borrowers experiencing financial difficulties, such as issues relating to nonaccrual assets and restructured loans
and the disclosure of the cash flow provided by
nonaccrual assets. In addressing these topics, the
agencies sought to set forth guidance that was
both prudent from a supervisory perspective and
consistent with generally accepted accounting
principles.
The Federal Reserve, as well as the other
supervisory agencies, went to considerable
lengths to ensure that these guidelines were
provided to, and understood by, all our examiners. Officials of each agency held meetings with
their examiners to discuss the guidance and
answer questions. Officers and managers were
also instructed to use all other opportunities to
communicate with examiners and ensure their
full understanding of the policies. In early summer, the Federal Reserve issued a supplemental
statement that reemphasized the points made in
the March statement concerning the importance
of banks refinancing and renewing loans to sound
borrowers, provided that there was good reason
190
Federal Reserve Bulletin • March 1992
to believe that the borrower would be able to
service his debt.
Despite our efforts, which were paralleled by
those of the other agencies, by early fall of this
year, reports were still coming to officials in the
administration, members of the Congress, and
senior agency officials that some lenders were
apparently continuing to adhere to overly restrictive lending policies. These reports also continued to suggest that, in part, banks were following
these policies because of concerns that examiners would judge their lending activities on a
highly restrictive basis. Accordingly, it was decided that further initiatives should be taken to
clarify policies and to inform both examiners and
banks of these policies.
Guidance has subsequently been issued that
expands on agency policies concerned with reviewing and classifying commercial real estate
loans. This guidance, once again, emphasized
that examiners should consider factors other
than a property's current liquidation price when
assessing its value as collateral. It was also
stressed that real estate loans on which a borrower has performed in accordance with contract
terms should not be criticized or charged off by
examiners simply because the current value of
the underlying real estate collateral has declined
to an amount less than the current loan balance.
Instead, the guidance instructed that a decision
to charge off a loan should be made only when
repayment of the loan is in question because of a
well-defined weakness in the borrower's ability
to continue to service the loan.
The Federal Reserve has also issued guidance
for resolving differences between banks and examiners that can arise during an examination.
This guidance, which builds on long-standing
Federal Reserve practices, indicates that if bankers believe that examiners have failed to adhere
to the letter or spirit of agency policies, they
may, if they are unsuccessful in resolving the
matter with an examiner, ask for a review by
senior Federal Reserve Bank officials. As a further step, we have also made special review
procedures to assure that examiners understand
our policies and that they have complied with
these policies in examining the bank. The purpose of this effort is not only to help ensure that
examiners carry out their duties in full conform-
ance with our policies but also to reassure supervised institutions of that fact.
In yet another effort to promote banker awareness of our policies, officials of the regulatory
agencies have been holding meetings with senior
management of major institutions around the
country. These meetings provide an opportunity
to explain policy initiatives and to obtain ideas
and suggestions from bankers as to what might
be prudently done to alleviate credit crunch
conditions. Senior agency officials have also participated in several regional meetings, sometimes
referred to as "town meetings," involving bankers, businessmen, and members of the Congress.
During these meetings, we have listened to the
views of bankers and borrowers regarding credit
availability issues and concerns and have explained the rationale for and context of our
supervisory policies.
The National Examiners' Conference, recently held in Baltimore, also sought to foster
achievement of the same basic objectives just
described. In particular, the purpose of the
conference was to make sure that senior examiners and their supervisors fully understand the
substance and purpose of recent agency initiatives. The conference offered participants the
opportunity to raise questions about the various
provisions of guidance that have been issued
and provided a forum for identifying and reconciling differences of views and interpretations
that may have existed between examiners and
their supervisors and among examiners from
the various agencies.
The conference was organized so that general
sessions were concluded on the first day and a
portion of the second, which provided an overview of the policy statements and other guidance
that has been issued by the agencies. The first
two hours of the general sessions for the first day
were open to the public. On the second day, the
conference mainly consisted of breakout sessions that addressed detailed aspects of the guidance provided by the agencies and questions that
examiners might have on the application of this
guidance.
Discussion at the breakout sessions proved to
be free flowing, and I believe it accurate to say
that participants left the conference with a
clearer and more uniform understanding of
Statements
to the Congress
191
agency policies and of procedures and practices
that are required to implement these policies.
In conclusion, I would simply stress that the
principal message that we have tried to convey
to our examiners, in our various policy statements and at our conference in Baltimore, is
that they should exercise reasonable balance in
their decisions. The current environment is
rather hostile for certain bank customers, and
obviously many banks and thrift institutions
have suffered and failed at great cost to their
insurance funds and the public in general. That
situation should not be overlooked, and the
likelihood of future problems should not be
downplayed.
On the other hand, examiners should not assume routinely that current adverse conditions
will continue to prevail forever or that weak or
illiquid markets will remain that way indefinitely.
Proper balance—that is the message that we have
tried to convey to both bank examiners and to
bankers in an effort to reduce impediments to
lending to sound borrowers while holding true to
the principles of sound supervision.
•
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve
System,
before a joint meeting of the Committee on
Banking, Housing, and Urban Affairs and the
Committee on the Budget, U.S. Senate, January
10, 1992
impaired capital positions, with adverse effects
on their willingness to extend credit. The 1980s
were also characterized by a wave of mergers
and buyouts—purchases of corporate assets, often involving substitution of debt for equity while
anticipating the sale of assets at higher prices. I
need not recount for you the subsequent disappointments and the fallout for holders of many
below-investment-grade bonds and related loans.
In the household sector, purchases of motor
vehicles and other consumer durables ran at
remarkably high levels for several years and
were often paid for with installment or other debt
that carried longer maturities than had been the
norm. In some parts of the United States, the
household spending boom reached to the purchase of homes, not simply for essential shelter
but as speculative investments—often involving
borrowing that constituted a heavy call on current and expected family incomes. The aftermath
of all this activity is a considerable degree of
financial stress in the household sector.
The bottom line of this brief account is that the
national balance sheet has been severely
stretched. The buildup of debt was originally
largely collateralized or matched by rising asset
values. But because of the recent weakness of
property values, the debts have become more
troubling, depressing aggregate economic demand.
Although most analysts were, of course, aware
of the increasingly disturbing trends of rising
household debt and elevated corporate leverage,
it was not clear that these burdens had as yet
reached a magnitude that would restrain the
I am pleased to appear today at this special joint
session of the Banking and Budget committees. I
hope that I shall be able to contribute something
to your effort to analyze the forces affecting the
economy. This analytical process is critical to
formulation of sound public policy.
The upturn in economic activity that began last
year clearly has faltered. It is apparent that the
economy is struggling and that some strong
forces have been working against cyclical revival. Now that we are well past the period of
gyrations associated with the crisis in the Persian
Gulf, we can better gauge the strength of the
underlying disinflationary forces that were active
well before the economy tilted into recession in
the autumn of 1990.
During the 1980s, large stocks of physical
assets were amassed in several sectors, largely
financed by huge increases in indebtedness. In
the business sector, the most obvious example is
that of commercial real estate, with the accumulation of vast amounts of office and other commercial space—space that is beyond the plausible needs in most locales well into the future. Our
financial intermediaries, not just depository institutions but other lenders as well, lavished credit
upon developers, and those lenders are paying
the price today in the form of loan losses and
192
Federal Reserve Bulletin • March 1992
American economy from a moderate cyclical
recovery in 1991.
Indeed, as inventory liquidation abated at
midyear, output moved up and closed the gap
with the consumption of goods and services in
much the same manner that was evident in the
early stages of other recoveries in recent business cycles. A range of leading indicators was
still flashing positive signals on the economy's
prospects.
By late summer, however, with half the decline in output during the recession recovered, it
became clear that the cumulative upward momentum that characterized previous recoveries
was spent. The continued, strong propensity of
households to pare debt and of businesses to
reduce leverage was a signal that the balance
sheet restraints, a concern of many for a long
time, had indeed taken hold, working against the
normal forces of economic growth.
Consumer spending, housing starts, industrial
production, and employment all flattened out,
and business and consumer sentiment began to
erode. Inventories backed up somewhat in the
retail sector by early fall. This development
appears to have been particularly related to
goods ordered from abroad during the late spring
in anticipation of climbing retail sales. However,
it also suggests that domestic production had
gotten a little ahead of domestic demand. Moreover, although export activity has remained a
bright spot for us, recessions and slower-thanexpected economic growth in several major industrial countries over the second half of 1991
limited the demand from abroad for our goods,
holding down the growth of exports. All told, the
available data indicate that U.S. industrial output
was flat to slightly declining at the end of last
year. Gross domestic product in the fourth quarter appears to have changed little from thirdquarter levels.
Not unexpectedly, stretched balance sheets
are creating pressures on companies and households to hasten their repair. Record issuance
recently of corporate equity in our capital markets
is contributing to deleveraging. And large bond
issues are funding short-term debt and high interest rate long-term debt, thereby removing some of
the balance sheet strain. In addition, lower interest rates are easing business debt-service bur-
dens. Households are not only repaying debt but
are initiating heavy mortgage refinancings that are
reducing their debt-service burdens as well.
We have made much progress in the balance
sheet adjustment process in recent years, and the
payoff—in the form of an easing of unusual
restraint—should begin to become evident in the
reasonably near future.
Monetary policy has had an important role in
addressing balance sheet stress, the core of the
structural weakness currently confronting our
economy.
For example, the Federal Reserve eased
money market conditions in July 1990 to address
the balance sheet stress manifest in the emerging
"credit crunch;" this action continued the pattern of gradual ease initiated more than a year
earlier when inflationary pressures exhibited
signs of unwinding. Monetary easing was accelerated as the economy moved into recession in
the autumn of 1990 but went on temporary hold
last spring as growth in the money supply and the
recovery began to show signs of building some
momentum.
We at the Federal Reserve have chosen to
adjust policy during the past two and one-half
years mostly in small increments, deciding to
accelerate or decelerate the pace of easing
through the frequency rather than the magnitude
of our adjustments. When evidence of an unexpected slowing in monetary growth began to
appear last summer, Federal Reserve easing resumed; and as the shortfall in money growth
deepened and the strength of disinflationary pressure became more evident, the frequency of
those moves picked up.
Most recently, as you know, the Federal
Reserve lowered the discount rate a full percentage point. We were able to act more forcefully because of the clear disinflationary trend
established and emerging evidence in long-term
bond markets that inflation expectations, which
had been stubbornly high for some time, were
moderating as well. Moderation in these expectations is crucial for sustaining the highest
possible economic growth over time. Policies
that did not take this into account would be less
effective and ultimately potentially counterproductive.
The markets have obviously responded posi-
Statements
to the Congress
193
tively to the December 20 initiative, with longterm yields falling markedly and stock prices
rising sharply. The good response of long-term
securities markets is essential in current circumstances. The recent rise in stock prices should
encourage continued elevated equity offerings,
while lower corporate bond rates should spur
additional funding of liabilities—both factors directed at helping to repair stretched private balance sheets.
As we noted in the press release that accompanied our most recent decrease in the discount
rate, we believe that that action, combined with
the effects of previous easing actions, should
provide considerable impetus toward a sustained
revival of economic expansion in 1992. However, we also recognize that the unusual factors
retarding the economy may continue to operate
in ways that we, and the financial markets,
cannot now anticipate. We will continue to monitor the situation carefully and stand ready to
take steps necessary to foster sustainable economic expansion.
Budget policy can also contribute to a restoration of a more vigorous economy, primarily
by focusing on longer-term issues related to
saving and investment. I, and others, have long
argued that the lack of saving and investment is
the most fundamental shortcoming of our economy. Bolstering the supply of saving available
to support productive private investment must
be a priority for fiscal policy, and in that regard,
reducing the call of the federal government on
the nation's pool of saving is essential. Federal
expenditure restraint is, in turn, essential to this
goal. At a minimum, care should be taken to
ensure that any short-run budget initiatives do
not imply a widening of the deficit over the
longer run.
The increasing evidence that inflationary pressures and expectations have been contained augurs well for a restoration of long-term economic
growth. So, too, does the evidence that American industry is striving to enhance efficiency and
competitiveness, as does the ongoing rebuilding
of balance sheets by lenders and borrowers.
Together, these trends will make a significant
contribution to promoting the return to solid
economic expansion that the American people
rightfully expect.
•
Statement by John P. LaWare, Member, Board
of Governors of the Federal Reserve
System,
before the Committee on Banks of the New York
State Assembly, Albany, New York, January 22,
1992
tions that implement the Equal Credit and Home
Mortgage statutes.
As you know, HMDA is a disclosure law that
provides the public with information about the
home lending activities of institutions that have
offices in metropolitan areas. HMDA does not,
however, require lenders to make any particular
type of home loan or to make loans in any
specific geographic area.
Each year, information about the persons who
apply for and receive home loans is provided by
the institutions covered by HMDA to the Federal
Financial Institutions Examination Council
(FFIEC) in Washington, D.C., through their respective supervisory agencies. The Federal Reserve compiles the data, on behalf of the FFIEC,
and prepares HMDA disclosure statements for
each covered institution. In addition, aggregate
reports are prepared to show the overall home
lending picture for each of the nation's 341
metropolitan areas.
The collection and processing of the HMDA
I am pleased to have been asked to appear before
the New York State Assembly's Committee on
Banks to provide the Federal Reserve's perspective on issues related to mortgage lending discrimination. My remarks today will focus primarily on data recently released under the Home
Mortgage Disclosure Act (HMDA).
The Federal Reserve is one of several federal
agencies that monitor the compliance of financial
institutions with the nation's fair lending laws,
including the federal Fair Housing Act and Equal
Credit Opportunity Act (ECOA). In this context,
we directly supervise and evaluate the performance of roughly 1,000 state member banks (34
of them in the State of New York). The Board
also has the responsibility for issuing the regula-
194
Federal Reserve Bulletin • March 1992
data is a massive task. For 1990, the data
processed consisted of about 6.6 million loan
and application records. The FFIEC prepared
disclosure statements for nearly 9,300 reporting
institutions for each metropolitan area in which
they had offices, totaling more than 24,000
individual reports. This disclosure effort resulted
in the preparation of more than 1.2 million pages
of data.
Historically, the HMDA reports have focused
on the geographic distribution of home loans,
both home purchase and home improvement.
The 1990 HMDA data continue to provide information of this type and also disclose—for the first
time—information about the disposition of applications that do not result in an origination; about
the race, sex, and income of loan applicants; and
about the secondary market purchasers of loans
sold by covered institutions.
The 1990 HMDA information became available to the public three months ago. The data
caught immediate nationwide attention because
of substantial differences in the outcomes for
applicants when they were categorized by their
race and income and by neighborhood characteristics. In particular, the data revealed that a
much larger percentage of applications for
home loans filed by blacks and Hispanics were
turned down than for white and Asian applicants. The data revealed that this pattern for
applicant groups held true even after income
was taken into account.
I, like many others, find these statistics worrisome. The data raise concerns about access to
home mortgage credit among minority applicants, as well as a perception of unlawful discrimination in the lending process. They also
raise questions about the performance of lenders
in meeting their obligations under the Community Reinvestment Act (CRA).
I can assure you of the Federal Reserve's
long-standing concern about these issues and
strong commitment to enforcing compliance with
fair lending laws. Our efforts extend both to
searching for answers to the questions raised by
the HMDA data and to seeking ways to promote
community development and affordable housing
lending.
In regard to HMDA, however, I do want to
note some important limitations in the data. In
particular, the HMDA data do not include the
wide range of financial factors—about the applicants and the properties they seek to purchase—that lenders consider in evaluating loan
applications. For example, the HMDA data do
not contain information about applicant debt
and asset levels, employment experience, or
credit history. Thus, it simply is not possible to
determine, from the HMDA data alone,
whether individual institutions or groups of
lenders are discriminating unlawfully against
minority applicants.
At the Federal Reserve, we rely primarily on
our on-site examination process to assess lenders' compliance with the fair lending laws and the
CRA. During this process, our examiners look at
actual loan files, review the factors that a particular lender took into account in its credit evaluations, and then try to determine whether the
lender's loan standards were applied in an evenhanded and nondiscriminatory manner.
In particular, examiners look for instances in
which loan applicants met established standards
but were denied credit and, conversely, for instances in which applicants failed to meet the
guidelines but were nonetheless granted credit.
When examiners find exceptions, they seek to
determine whether similarly situated applicants
were accorded like treatment by the lender,
focusing particularly on members of protected
groups. To date, our bank examinations have not
revealed evidence that individual state member
banks discriminate on the basis of race when
making credit decisions.
We also have a consumer complaint program,
with special guidance for dealing with complaints
that may involve illegal lending discrimination
and for determining whether the allegations appear well founded. But I must tell you that we
receive few complaints alleging illegal credit discrimination against state member banks. Investigation of these complaints has not revealed any
illegal activity on the part of the state member
banks involved. The other federal agencies report similar experiences.
A discrepancy clearly exists between the few
complaints that we receive and the prevalence
of allegations of widespread discrimination
made by community organizations and others.
In May 1990, our concern over this discrepancy
Statements
to the Congress
195
prompted us to write to 675 civil rights groups,
fair housing organizations, offices of state attorneys general, and others—people who come in
contact with consumers who might have complaints about how they were treated in applying
for a mortgage loan. We advised these organizations about our complaint program and that
of the other federal agencies, asking them to
refer complaints that they may have received
about credit discrimination to the appropriate
banking authority. In October 1990, we sent a
follow-up letter. This effort has, to date, had no
identifiable impact on the number or the types
of complaints that we have received.
We recognize, of course, that discrimination
can take subtle forms and may be difficult to
detect. With the new HMDA information about
applicant race or national origin, sex, and annual
income, we believe that our examiners will be
better able to look behind the statistical differences in denial rates that may exist among subsets of applicants at particular institutions. To
facilitate these statistical analyses, the supervisory agencies are working to develop computerbased systems that will help examiners identify
specific groups of applicants for whom the
application-disposition rates are significantly different from those of other groups. Such systems
will provide agency examiners with lists of individual application files that can be targeted for
in-depth review during on-site examinations.
We will also be using the data to help us
measure lenders' compliance with the Community Reinvestment Act. In this regard, the new
data provide a better basis for assessing the
demands for credit from a defined community
experienced by individual lenders. The data also
provide an opportunity to gauge the success of
lenders' community outreach and loan marketing
efforts.
To further support our compliance efforts in
the fair lending area, the banking agencies once
again have undertaken, among other things, to
review examination procedures—to see if there
are ways that we can better carry out our enforcement responsibilities. We are also participating
with the Department of Justice and the Department of Housing and Urban Development on a
federal agency task force that is reviewing the
mortgage lending discrimination issue.
As I have noted, one of our key concerns
about the interpretation of the HMDA data rests
on the absence of full information about financial
factors that lenders consider in their credit evaluations. We are seeking to address this lack of
information. For example, the Federal Reserve,
in cooperation with other supervisory agencies,
is developing a research effort that would supplement the HMDA data with information from
application and credit files for a sample of loan
applicants. Evaluation of these data should help
us better gauge the extent to which these other
factors may account for differences in the denial
rates observed across racial lines. Such information also can be used to help examiners identify a
specific sample of loan applications to review
during future examinations.
The banking and other federal agencies have
a legal obligation to ensure fair lending compliance. At the same time, the responsibility for
fair lending rests with the financial institutions
themselves. We continue to encourage creditors to review their lending practices for aspects
that may have a discriminatory effect. In this
context, we believe that lenders should look
both at the types of products they offer and at
the underwriting standards that they have in
place—to see if they are flexible enough to
accommodate the varied circumstances of potential borrowers, without compromising safety
and soundness concerns.
I will conclude by complimenting this committee for the attention you are giving the issue of
possible discrimination in mortgage lending, and
I will be glad to try to answer any questions that
you may have.
•
Statement
by David W. Mullins, Jr., Vice
Chairman, Board of Governors of the Federal
Reserve System, before the Subcommittee
on
Securities of the Committee on Banking, Hous-
ing, and Urban Affairs,
23, 1992
U.S. Senate,
January
Thank you for this opportunity to present the
196
Federal Reserve Bulletin • March 1992
Federal Reserve Board's views on reforms to the
regulation of the government securities market.
Since September, when I last testified before this
committee, the staff of the Federal Reserve, the
Treasury Department, and the Securities and
Exchange Commission (SEC) have conducted an
exhaustive examination of this market, the results of which were released yesterday. My prepared remarks will touch upon some of the main
conclusions of this report from the particular
perspective of the Board of Governors of the
Federal Reserve System. Our perspective differs
somewhat from that of the other agencies contributing to the report because of differences in
legislative mandates.
The Board of Governors has little direct regulatory authority for the U.S. government securities market. Although the Board has general
oversight responsibility for all Federal Reserve
District Banks, the District Banks act as fiscal
agents of the Treasury, thus sharing with the
Treasury operating responsibility for the market.
The SEC's charge is to enforce the securities
laws that seek to foster a high degree of fairness
in the marketplace. With neither the direct responsibilities of funding the government nor substantial regulatory oversight, the Board of Governors can view this market from a somewhat
different vantage point—a policy perspective that
allows us to examine these issues in an economy wide context.
When we look to the government securities
market, we see a market that works as well as
any on earth. U.S. government debt is an ideal
trading vehicle because it is all closely substitutable and has none of the default risk or idiosyncratic problems of private issues. As a result,
market participants, in the aggregate, willingly
commit substantial amounts of risk capital and
exchange a large volume of securities each day.
Positions are large, yet trading skills are so
sharply refined that bid-ask spreads are razor
thin, a small fraction of the size of spreads in
major equity markets.
This market generates widespread macroeconomic benefits. The government securities market efficiently absorbs the large quantity of new
issues required to finance the deficit. With realtime quotes on a range of instruments, this
market serves as the foundation for private mar-
ket rates and a haven for ready liquidity. Further,
this deep and liquid market gives the Federal
Reserve a powerful, reliable mechanism to implement monetary policy.
Nonetheless, the admission of wrongdoing by
Salomon Brothers, episodes of price distortions,
and other evidence uncovered in our joint study
all suggest that this market has faults. It can be
improved. The proposals contained in the joint
report, along with other reforms announced earlier, constitute the comprehensive modernization
of the mechanisms and practices in the government securities market. Implementing these proposals represents a formidable, though feasible,
task in our view.
Over the longer term, the most effective force
in enhancing market efficiency and reducing the
potential for manipulative abuses is the force of
competition. And the joint report provides a
blueprint to open up the government securities
market to broader-based participation. Automating Treasury auctions; facilitating direct bidding
by customers, including nonprimary dealers; implementing a single-price, open auction technique; and reducing the barriers to primarydealer membership all will serve, in time, to
broaden participation in the primary market and
in the secondary market for newly issued securities. More depth and breadth in this end of the
market should increase efficiency, reduce Treasury financing costs, and lessen the potential for
manipulative trading abuses. In addition, the
competitive force of broader participation will be
reinforced by proposals targeted at manipulative
abuse: tightening up on the enforcement of auction rules, enhanced market surveillance by the
Federal Reserve Bank of New York to identify
potential manipulative episodes that could trigger
SEC investigations, and Treasury supply management to reopen securities to combat
squeezes.
Taken together, these actions should serve to
deter manipulative practices and quickly detect
abuses should they occur. Moreover, they are
relatively low-cost, market-based responses that
should achieve these benefits without impairing
the efficiency and liquidity of this vital market.
Of course, many other alternatives could be
considered to combat the potential for abuses in
this market. However, the government securities
Statements
market is too important a national resource and
works too well to be put at risk by regulatory
change for the sake of change. From the Board of
Governors' perspective, a compelling case must
be established that the benefits outweigh the
costs.
For example, there is an alternative way to
address manipulative trading strategies in the
domestic market: Pass legislation that constructs a complex and burdensome apparatus of
reporting requirements. No doubt, the need to
post large trades and end-of-day positions with
a regulator might well cause a potential manipulator to think twice. Unfortunately, it also
would lead other potential participants to think
twice before entering the market. A reporting
burden falls on the good and the bad, boosting
the cost of every trade. Although the direct
costs of additional recordkeeping might be kept
manageable, an indirect cost looms larger. Market participants might withdraw rather than risk
divulging their finances and trading strategies.
Indeed, they have ready alternatives because
U.S. government securities trade in an international market. Margins in this industry are thin,
and it does not take much to lead to sizable
shifts in trading behavior. An elaborate web of
reporting requirements designed to snare manipulators might well reduce the number of
participants, thereby raising the cost of Treasury financing. And, of course, the stakes are
high. A tiny increase in Treasury rates translates into a very substantial increase in cost to
U.S. taxpayers.
The agencies agreed that the Treasury market
differs sufficiently from the stock market to make
large-trade reporting unnecessary. On the other
hand, there has been less agreement concerning
the need for large-position reporting. The Board
of Governors believes that little incremental benefit would accrue from requiring large holders to
report their positions and that the costs might be
quite large indeed. In view of the extensive
nature of the other changes proposed in this
report, one might question the capacity of this
market to absorb, at an acceptable cost, this
additional change—the imposition of broadbased reporting requirements for large market
participants. Even backup authority risks sending the same chilling message about the U.S.
to the Congress
197
market to all participants choosing a trading
arena in the global market place.
The taint of manipulation in trading is sufficiently damaging to the market that the Board of
Governors would accept large-position reporting—despite the obvious costs—if there were no
other effective remedy. However, a surer and
less costly way to fight manipulative practices in
the market is to modify the way in which the
Treasury sells securities and to take a more
active role in how those securities trade thereafter. And the interagency report provides such a
market-based solution to the problem that targets
manipulative behavior without impairing the liquidity of this important market. The three basic
elements to this overall strategy are improved
auction mechanisms, enhanced market surveillance, and active supply management.
Although many aspects of the Salomon Brothers admission of wrongdoing and the results of
the subsequent investigation cause concern, one
is particularly unsettling: Because of the falsification of bids at auctions, the Treasury was the
direct counterparty in attempts to manipulate the
market. Immediate steps were taken to reduce
the risk of a reoccurrence, including tightening
up on enforcement of auction rules and implementing measures to encourage more direct bidding. Looking forward, automation of the auction process, which is already under way and
expected to be completed by year-end, should
efficiently snare any infraction of the rules.
More important still, automation will facilitate
consideration of alternative auction techniques.
At a minimum, switching to single-price awards
from the current multiple-price format should
foster greater participation and likely reduce
gaming behavior at the auction. But more can be
done. Linking bidders directly by a computer
network and conducting the auction in real time
will expose any would-be manipulator to public
scrutiny in time to give the competition the
opportunity to react. With the element of surprise gone, the potential return to manipulation
should disappear. Thus, the auction of the near
future may well be played in the open, on a level
field, with sharply defined and easily policed foul
lines.
The report also finds that the benefits of enhanced monitoring extend to when-issued and
198
Federal Reserve Bulletin • March 1992
secondary-market trading. Manipulative behavior leaves its footprints in market quotes because
a shortage of an issue will be evidenced by a yield
trading below that of similar securities and by
depressed financing rates. The agencies agreed
that the Federal Reserve Bank of New York,
with its substantial experience as the operating
arm of the Federal Open Market Committee and
(along with the other Reserve Banks) as one of
the fiscal agents of the Treasury, should have
primary responsibility for market surveillance;
the Bank, in turn, will provide information to the
Treasury, the SEC, and the Board of Governors.
It is the Board of Governors' view that rigorous
monitoring of the behavior of market rates will
expose manipulative behavior without the need
to gather the positions of large traders routinely.
Indeed, automation and enhanced market
monitoring also present the opportunity to correct a long-standing market misimpression. Although the Federal Reserve Bank of New York
has no statutory authority to regulate the primary
dealers, many people view the primary dealer
system as evidence of some measure of responsibility for, and oversight of, those firms by the
Federal Reserve Bank of New York. Ongoing
automation and enhanced monitoring capabilities
will let the Bank move to a more open set of
trading relationships, thus disabusing market
participants of the notion that the primary dealers have a special status. To further that end, the
Bank will eliminate its dealer surveillance unit,
showing unambiguously that responsibility rests
with the primary regulator. The Bank will also
lower the impediments to primary dealer membership, thereby encouraging a broadening of
membership in the primary dealer system.
The careful monitoring of the market will be
made more credible by action: Persistent and
large-scale price anomalies consistent with a manipulative squeeze will call forth two sets of policy
responses. First, if other evidence, including discussions with market participants, suggests manipulation, then the SEC will begin an investigation to determine whether any security laws have
been broken. Second, and more immediately, the
Treasury will act in the market to narrow those
price anomalies, thereby limiting the extent of the
market disruption in general and reducing the
potential gain if manipulative behavior was the
root cause. The Treasury's actions will be effected either by holding a new auction of the
sought-after security—a reopening—or through
the sale of those securities into the market by the
Trading Desk of the Federal Reserve Bank of
New York on behalf of the Treasury—a tap issuance. The resulting expansion of supply should
slash the manipulator's potential gain, making it
unlikely that any one would even try to manipulate the market. Circumstance and experience
over time will dictate when an increase in supply
will be required and which means of augmenting
the issue will be taken.
It is the Board of Governors' judgment that the
reforms that I have outlined—changes in auction
mechanisms, active and rigorous monitoring of
market rates, and the clear willingness to use
relative supplies to punish manipulative behavior—will prevent a replay of last year's events.
These reforms are fundamental changes in market mechanisms that promise to open up this
market to broader-based participation while, at
the same time, enhancing regulatory surveillance
and remedial capabilities. Nonetheless, these reforms are cost-effective, market-based responses
to irregularities in a market that otherwise functions quite well. These responses are measured,
targeted, and commensurate to the problem at
hand and, in our view, obviate the need to punish
many with reporting burdens because of the
actions of a few. This strategy also offers flexibility to deal with future problems as they arise.
It is perhaps ironic that the most serious abuses
in the history of this market—the Salomon
Brothers episode—have served as the catalyst
for changes that promise substantial long-term
benefits. Taken together, these proposals and
those already implemented constitute a thorough, thoughtful, and feasible renovation of the
government securities market and will result in a
healthier, more efficient market for U.S. government securities.
•
Statements
Statement by E. Gerald Corrigan,
President,
Federal Reserve Bank of New York, before the
Subcommittee on Securities of the Committee on
Banking, Housing, and Urban Affairs, U.S. Senate, January 23, 1992
I am pleased to have the opportunity to appear
before you this morning to discuss the joint
report on improvements in the government securities market and the related subject of the official
oversight and regulation of that most important
market. Although my opening statement is brief
and relates primarily to the specific activities of
the Federal Reserve Bank of New York in regard
to the overall effort, allow me at the outset to
make a brief comment on the joint report as a
whole.
As you know, in many appearances before this
committee on the subject of banking reform, I
have made the call for what I have termed
"progressive but cautious" reform of our banking system. Although the context is different, I
believe the totality of the changes outlined in the
joint report are fully in keeping with the philosophy of progressive but cautious change. Because the report does reflect a careful blending of
these considerations, I strongly support its overall thrust.
Having said that, it is obviously true that there
are any number of specific areas in which reasonable men and women can debate about
whether more or less could be done. From my
perspective, the balance reflected in the report is
about as close to the optimal that we could
reasonably hope or expect.
The American public and the world at large
have an enormous stake riding on the efficient
workings of this crucial market. Therefore, as we
seek out opportunities to enhance the workings
of the market we must be sure that we do not
push for changes that might inadvertently impair
the efficiency of Treasury debt management procedures, the conduct of monetary policy, or the
secondary market for these securities. As we
gain experience with the changes that are contemplated in the report, still further enhancements may be warranted, but for now I believe
that the menu of initiatives contained in the
report is at the outer edge of what we can
prudently absorb in the period ahead.
to the Congress
199
With those general observations in mind, let
me turn to the specific aspects of the report that
relate directly to the responsibilities of the Federal Reserve Bank of New York. There are three
such major areas: first, the changes in the Bank's
"Administration of Relationships with Primary
Dealers;" second, the Bank's role in the development, testing, and implementation of new automated systems for Treasury auctions and Federal Reserve open market operations; and third,
the Bank's expanded role with regard to day-today surveillance of the government securities
market.
ADMINISTRATION OF RELATIONSHIPS
WITH PRIMARY DEALERS
Attached to this statement is a paper issued
yesterday by the Federal Reserve Bank of New
York outlining revised procedures for the administration of the Bank's relationships with primary
dealers. 1 Although that document itself represents a careful balancing of many considerations
and viewpoints, it is based on several key and
interrelated considerations including the following.
First, although change was needed, the complete dismantling of the primary dealer system—
including the responsibility of dealers to make
markets for Federal Reserve open market operations and to participate meaningfully in Treasury auctions—would not have been a prudent
step.
Second, it was important to provide for a more
"open" system of primary dealers, in part because
the existing approach has been viewed as conferring
on dealer firms special status that carries with it
elements of "franchise" value, and in part because
of fairness and equity considerations. This provision
has been accomplished by the elimination of the
so-called 1 percent market share requirement and
the use of straightforward and objective capital
standards for eligibility as a primary dealer. Taken
together, these changes will substantially increase
1. The attachment to this statement is available on request
from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
200
Federal Reserve Bulletin • March 1992
the potential number of firms that can become
primary dealers.
Third, it was important that the Federal Reserve Bank of New York make absolutely clear
to the marketplace that the Federal Reserve
Bank of New York does not regulate the primary
dealer firms, in part because of "moral hazard"
considerations and in part because of legal and
regulatory realities. For this reason we are disbanding the Bank's dealer surveillance unit.
Fourth, for obvious reasons, it was necessary
to clarify the reasons and the conditions under
which the Federal Reserve Bank of New York
would alter its relationship with a primary dealer
firm. Under the new administrative procedures,
the three independent sets of circumstances under which that might occur are the following:
• A dealer firm's status will be altered if the
firm fails to meet its responsibilities to make
reasonable markets for Federal Reserve open
market operations or if it fails to participate
meaningfully in Treasury auctions or if it fails to
meet its responsibilities to provide the Federal
Reserve with meaningful market intelligence
over time. To the extent that a firm's dealer
status is altered for any or all of the above
reasons, that action by the Federal Reserve will
reflect considerations relating to the business
relationship alone and will carry no implication
about creditworthiness, financial strength, or
managerial competence of the firm.
• A dealer firm's status will be altered if the
dealer falls below the relevant capital standards
and does not, in the eyes of its primary federal
regulator, have a credible plan to restore such
capital in a reasonable period of time.
• A dealer firm's status will be altered if the
firm is convicted of a felony under U.S. law or
pleads guilty or nolo contendere to a felony
under U.S. law for activities directly or indirectly
related to its business relationship with the Federal Reserve. This provision should create powerful incentives for a firm—when faced with
wrongdoing by individual employees—to take
immediate and strong actions to root out the
source of the problem to minimize the risk to that
firm.
Although major elements of the changes in the
administration of the relationships with primary
dealers will begin to take place immediately, the
full benefits of these changes will occur only as
the automation of Treasury auctions and Federal
Reserve open market operations take place and
as the other changes contemplated by the Joint
Report take hold. Over time, however, the automation efforts may prove particularly important.
These initiatives are described below.
AUTOMATION EFFORTS BY THE
FEDERAL RESERVE BANK OF NEW
YORK
The design work for the automation of Treasury
auctions based on existing auction techniques
has been under way for some time and should be
completed late this year. The software for the
automation of the auctions is not particularly
difficult to develop. The difficult aspects of this
task relate more to its communications system—
particularly as the number and nature of prospec
tive direct participants in the auctions change.
But, what makes this automation effort especially difficult is the need to build into the computer systems and the communications systems a
very high level of operational integrity, as well as
multiple levels of backup for various contingencies.
If the Treasury were to decide to move to a
different auction technique, the strategy would
be to enhance the system presently being developed to accommodate both types of auctions.
Although important elements of the work being
done for the current auction procedures can be
used with a new auction technique, the enhancement of the system being developed to accommodate the new procedures will take some time
after the requirements have been defined. This
enhancement will not, however, delay the
planned implementation of automated procedures for the current auction by the end of this
year.
The full automation of Federal Reserve open
market operations is even a more complex and
time-consuming task, especially because it is
impossible to prejudge with any precision the
number, location, financial, and legal characteristics of potential counterparties for such operations. Moreover, the operating systems and communication systems associated with this effort
must be integrated with several other highly
Statements
complex automated systems, including the Federal Reserve's existing money and securities
transfer systems. Because of this integration an
extraordinarily high level of reliability and integrity will be needed. To illustrate the concerns I
have in mind, just imagine, for a moment, what
might have occurred on the morning of October
20, 1987, had the Federal Reserve been unable—
because of technical problems with such a system—to furnish substantial liquidity through
open market operations as a part of the effort to
stabilize financial markets in the wake of the
stock market crash.
I raise this point because I believe that it is
very important that the committee recognize that
tasks of this nature must be approached with
care. Moreover, the front-end or design-development stages of such projects cannot easily be
expedited by simply throwing more people at the
problem. The analogy may be a bit overdone, but
I think it is fair to suggest that to believe that this
kind of task can be significantly accelerated by
throwing more people at the task is akin to
suggesting that open heart surgery can be accelerated by throwing more doctors into the operating room. At the margin, it may help; but, if
overdone, I pity the patient.
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve
System,
before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, January 29, 1992
I want to thank you for scheduling this hearing to
consider my nomination to a second term as
Chairman of the Federal Reserve Board and to a
full fourteen-year term as a member of that
Board. I am especially grateful to President Bush
for the confidence he had in me to make these
nominations.
I have testified before you frequently on the
state of the economy and the conduct of monetary policy, as recently as two weeks ago. I also
have given you my views and those of the
Federal Reserve Board on a wide range of specific regulatory and supervisory matters pertaining to banks over the last several years. I would
expect to be addressing your questions on these
to the Congress
201
To put it briefly, I can assure this committee
that we will do everything possible to complete
these tasks as quickly as possible but will not, in
the name of saving a few weeks or months, take
unacceptable risks that might impair the ultimate
efficiency, flexibility, integrity, and reliability of
these systems.
THE ROLE OF THE FEDERAL RESERVE
BANK OF NEW YORK IN THE MARKET
SURVEILLANCE PROCESS
Little needs to be added to what is contained in
the Joint Report as it pertains to the expanded
role of the Federal Reserve Bank of New
York—in cooperation with the other agencies—
with regard to day-to-day surveillance of the
government securities market except (1) to emphasize that market surveillance is quite distinct
from dealer surveillance, which we are discontinuing; and (2) to emphasize that it will take
some time to fully put in place some of the new or
altered statistical reporting arrangements that
might be agreed upon by the interagency surveillance working group over the period immediately
ahead.
•
issues again here today. In my brief opening
statement, however, on the occasion of these
hearings on my confirmation, I thought it might
be appropriate to step back a little from the
application of policy in specific circumstances
and discuss some general principles that I believe
should guide decisions on the monetary policy
and banking structure of this country.
I see the fundamental task of monetary policy
as fostering the financial conditions most conducive to the American economy performing at its
fullest potential. As I have often noted before,
there is every reason to believe that the main
contribution the central bank can make to the
achievement of this national economic objective
over long periods is to promote reasonable price
stability. Removing uncertainty about future
price levels and eliminating the costs and distortions inevitably involved in coping with inflation
will encourage productive investment and saving
202
Federal Reserve Bulletin • March 1992
to raise living standards. Monetary policy is
uniquely qualified to address this issue: Inflation
is ultimately determined by the provision of
liquidity to the economy by the central bank;
and, except through its effect on inflation, monetary policy has little long-term influence on the
growth of capital and the labor force or the
increase in productivity, which together determine long-run economic growth.
But a central bank must also recognize that the
"long r u n " is made up of a series of "short
runs." Our policies do affect output and employment in the short and intermediate terms, and we
must be mindful of these effects. The monetary
authority can, and should, lean against prevailing
trends, not only when inflation threatens but also
when the forces of disinflation seem to be gathering excessive momentum. That is, in fact, what
has concerned us in recent months, and we have
been taking actions designed to assist in returning the economy to a solid growth path.
However, the Federal Reserve, or any other
central bank, must also be conscious of the limits
of its capabilities. We can try to provide a
backdrop for stable, sustainable growth, but we
cannot iron out every fluctuation, and attempts
to do so could be counterproductive. What we
have learned about monetary policy since the
beginnings of the Federal Reserve System is that
the longer-term effect of a policy action may be
quite different from its initial impact; what we do
not know with precision is the size and timing of
these effects, especially in the short run. Uncertainty about the near-term twists and turns of the
economy, along with the awareness of the potential differences between long- and short-term
effects, suggests both flexibility in the conduct of
monetary policy and close attention to the
longer-term context in conducting day-to-day
operations.
Monetary policy actions are transmitted to the
economy through the financial system, and the
influence of weakness in that system on how the
economy responds has been all too evident in
recent years. A structurally sound and vigorous
financial system not only facilitates monetary
policy implementation but is itself no less important to support an economy operating at its
highest potential. Such a system must effectively
and efficiently gather savings and distribute them
to where they will be of most value to society in
promoting productive investment and supporting
consumption. Banks and other depositories have
a key role to play in this system. They are the
channels through which payments pass; they are
the chief repositories of households' liquid savings; and they extend credit to many who have
limited, if any, access to alternative sources of
financing. Our nation's banking system must be
strong—not only in the sense of safe and sound
but also in the sense of being efficient and innovative in delivering vital services to the economy. That strength undoubtedly has eroded in
recent years, in part through errors of judgment
by depositories and their regulators but also
through the combined effects of a stiffer competitive environment and continued legal restraints
on the ability of depositories to respond and
adapt.
Against that background I, and the Board of
Governors, have brought three interrelated principles to bear on our approach to banking structure and regulation. First is the importance of a
strong capital position. Capital brings market
discipline to bear on institutions that otherwise
might be tempted to take excessive risk by their
access to the federal safety net. It also insulates
the taxpayers holding up that safety net from the
losses associated with unwise risktaking, should
that occur nonetheless. Second is the need for
more certain and prompt supervisory actions
when capital and other key indicators of the
financial health of an institution decline. These
actions not only will protect the taxpayers, but
they also give depositories planning their financial structures more certainty about governmental reactions and induce them to take early action
to strengthen those structures.
The Congress and the regulators have gone a
long way in acting on these first two principles.
Unfortunately, progress on the third is more
limited. That principle embraces the necessity
for greater competitive scope for well-capitalized
banking organizations—across boundaries of geography and product line. Both sets of bound-1
aries have been made increasingly arbitrary and
artificial by innovation and internationalization
of financial services. An ability to deliver desirable services to the public is a prerequisite for
generating the profits necessary to build capital
Statements
and for keeping an innovative banking system
capable of meeting the changing needs for credit
and deposit services of a dynamic economy.
The last four years have seen no paucity of
challenges at the Federal Reserve. As much as
we sometimes might wish otherwise, I suspect
the years ahead will be no less challenging.
Although much remains to be done, important
strides have been made—in private markets and
in government policies—to restore the normal
to the Congress
203
vigor of the American economy and our banking
system. To that end, I believe the Banking Committees' oversight and our continuing consultations have been a most helpful and constructive
factor. Should the Senate choose to confirm me
for a second term as Chairman of the Federal
Reserve Board, I would look forward to working
with this committee to ensure the sound financial
system and vital economy the American people
rightfully expect.
•
204
Announcements
APPOINTMENT OF NEW MEMBERS
CONSUMER ADVISORY
COUNCIL
TO THE
The Federal Reserve Board on January 2, 1992,
named thirteen new m e m b e r s to its C o n s u m e r
Advisory Council to replace those members
whose terms have expired and designated a new
Chairman and Vice Chairman of the Council for
1992.
The Consumer Advisory Council was established
by the Congress in 1976, at the suggestion of the
Board, to advise the Board on the exercise of its
duties under the Consumer Credit Protection Act
and on other consumer-related matters. The thirtymember Council, with staggered three-year terms
of office, meets three times a year.
Colleen D. Hernandez, Executive Director of the
Kansas City Neighborhood Alliance in Kansas City,
Missouri, was designated Chairman. Her term on
the Council runs through December 1992. Denny
D. Dumler, Senior Vice President of the Colorado
National Bank in Denver, Colorado, was designated
Vice Chairman. His term on the Council expires in
December 1993.
The thirteen new members are the following:
Barry A. Abbott
San Francisco, California
Mr. Abbott is a partner in the law firm of Morrison
and Foerster. He represents numerous institutions
throughout the country on various consumer financial services matters. Mr. Abbott is coauthor of the PrenticeHall text Truth in Lending: A Comprehensive Guide and
is a frequent contributor to many national publications.
He has served as chairperson of the Business Law Committee of the American Bar Association's Young Lawyers Division and as a member of the ABA's Ad Hoc
Committee on the McCarran-Ferguson Act. Mr. Abbott
is currently the chairman of the Insurance Products Subcommittee of the ABA's Committee on Consumer Financial Services and is vice chairman of the State Bar of
California's Financial Institutions Committee.
John R. Adams
Philadelphia, Pennsylvania
Mr. Adams has been Corporate Vice President and
Compliance Officer of CoreStates Financial Corporation
since 1980. He has been an instructor at the American
Bankers Association National Compliance School and
National Graduate Compliance School on various subjects, including the Community Reinvestment Act, the
Home Mortgage Disclosure Act, and other consumer compliance issues. Mr. Adams previously served as the chairman of the ABA's Compliance Executive Committee. He
is a graduate of the University of Pennsylvania.
John A. Baker
Atlanta, Georgia
Mr. Baker is Senior Vice President of Consumer and
Government Affairs at Equifax, Inc. Equifax is among
the leading providers of information services for consumer financial transactions in the United States, Canada, and Europe. Mr. Baker began his career with Equifax in 1967; he was appointed senior vice president in
January 1991 and is responsible for ensuring that a balance is maintained between consumer privacy concerns
and the legitimate information needs of the banking,
retail, and insurance industries. Mr. Baker's efforts have
involved extensive dealings with consumer advocacy
organizations and customer advisory groups, and he also
has spearheaded internal corporate initiatives to ensure
fair information practices. Mr. Baker is a graduate of
Princeton University and the University of Santa Clara
Law School.
Mulgugetta Birru
Pittsburgh, Pennsylvania
Mr. Birru is Executive Director of the HomewoodBrushton Revitalization and Development Corporation.
The Corporation is funded by Pittsburgh Partnership for
Neighborhood Development, a public-private consortium, including the Howard Heinz Endowment, the Pittsburgh Foundation, the Ford Foundation, the city of
Pittsburgh, and several banks, to carry out commercial
revitalization, real estate development, and economic
development. His responsibilities include developing new
housing; encouraging new businesses to relocate to the
Pittsburgh area; implementing commercial real estate
development projects; publishing a weekly newspaper
with a circulation of 40,000; and running a job placement center and a radio station. He holds a B.A. in
Management-Accounting from Addis Ababa University,
205
an M.A. in Economics and an M.B.A. in Business and
International Finance from Syracuse University, and a
Ph.D. in Public and International Affairs from the University of Pittsburgh.
Washington Independent Community Bankers Association and on the Federal Legislation Committee of
the Independent Bankers Association of America in
Washington, D.C.
Genevieve S. Brooks
Bronx, New York
Gary S. Hattem
New York, New York
Ms. Brooks has served as Deputy Borough President
for the Bronx since April 1990. Her duties include managing the day-to-day operation of a staff of 150 people;
coordinating agency professionals and communitybased organizations in planning for and improving housing and municipal services delivery including health and
human services; and supervising budget matters. Ms.
Brooks is the Bronx Borough President's appointee to
the Bronx Overall Economic Development Corporation,
a governmental adjunct that generates and coordinates
economic development throughout the Bronx. Ms.
Brooks has received numerous awards and honors for her
work.
Mr. Hattem is Vice President for Community Development for Bankers Trust Company. His responsibilities
include outreach to local communities to determine credit
needs; defining, marketing, and extending products in
response to needs; and evaluating loan and grant requests.
Since Mr. Hattem joined the bank, his Community Development Group has refined a credit niche in response to
the financing needs of not-for-profit organizations active
in New York City's low- and moderate-income neighborhoods. Before 1990, Mr. Hattem served as executive
director of St. Nicholas Neighborhood Preservation Corporation in Brooklyn for thirteen years. He holds a B.A.
in Urban Studies from the SUNY College at Purchase,
New York, and an M.S. in City and Regional Planning
from the Pratt Institute in New York City.
Cathy Cloud
Washington, D.C.
Ms. Cloud is the Enforcement Program Director for
the National Fair Housing Alliance. She is responsible
for the implementation of a nationwide (eleven cities)
program of fair housing enforcement. Ms. Cloud provides training and technical assistance to public and private fair housing agencies in housing and mortgage lending discrimination cases. Until October, she also served
as project director for the National Education Program.
Her duties there included development of media products for use by private fair housing groups and other organizations involved in fair housing education and enforcement and helping groups implement media outreach
programs. Ms. Cloud coordinated a two-year mortgage
lending discrimination project in the Chicago metropolitan area, including development and implementation of a
testing program for mortgage lending. She is currently
on the board of the National Community Reinvestment
Coalition. Ms. Cloud holds a B.A. in political science
from the University of Illinois and an M.A. in public policy from the University of Chicago.
Michael Edwards
Yelm, Washington
Mr. Edwards is President of Prairie Security Bank,
which he organized as a new state-chartered bank in
1988. He also manages a bank consulting firm that specializes in new bank formations. From 1977 to 1983, Mr.
Edwards served as the Supervisor of Banking for the
State of Washington, and in 1982 and 1983 he was president and chairman of the Conference of State Bank
Supervisors. He is currently a director of the Thurston
County Economic Development Council and the Yelm
Chamber of Commerce; and serves on the board of the
Edmund Mierzwinski
Washington, D.C.
Mr. Mierzwinski has been a consumer advocate with
U.S. PIRG (Public Interest Research Group), the national
lobbying office for state PIRGs, since 1989. He has testified before the Congress on numerous banking matters,
including bank reform, consumer protection issues
(including truth in savings, expedited funds availability,
and bank deregulation), and the Fair Credit Reporting Act
and credit bureau practices. He is author of reports on
credit bureaus and ATM fees. From 1981 until 1988, Mr.
Mierzwinski was executive director of the Connecticut
PIRG, where he was a principal consumer lobbyist for
passage of the nation's first new-car lemon law. He has a
B.A. and an M.S. from the University of Connecticut.
Jean Pogge
Chicago, Illinois
Ms. Pogge is the President of Woodstock Institute. The
Institute designs programs to bridge the gap between the
needs of communities and the resources of financial institutions, foundations, and others. Its services include
applied research, policy analysis, and program design
and evaluation. Ms. Pogge also is a board member of
CANDO City Wide Development Corporation, an advisory committee member for the Chicago Capital Fund, a
board member and past chair of the loan committee for
the North Side Community Federal Credit Union, and a
board member for the Women Employed Institute. Ms.
Pogge has authored numerous articles on community
development and lending patterns. She holds a Master of
Urban Planning degree from the University of Illinois.
206
Federal Reserve Bulletin • March 1992
John V. Skinner
Irving, Texas
Mr. Skinner is the President and CEO of Jewelers
Financial Services, Inc., the credit operation of Zale
Corporation. Mr. Skinner joined Zale in 1984, having
previously served in key credit management positions for
twenty-two years with Sears, Roebuck, and Co. Mr. Skinner was president of Consumer Credit Counseling Service of Greater Washington from 1978 until 1984. He
has served on the board of trustees for the National Foundation for Consumer Credit since 1980. He is also the
past chairman of the advisory board for the Credit
Research Center at Purdue University, presently serves
as chairman of the National Retail Federation, and is
a member of the Credit Grantor Advisory Group for
Associated Credit Bureaus, Inc. Mr. Skinner has been
on the board of directors for the International Credit
Association since 1980 and in 1989 served as chairman
of the board. Mr. Skinner attended the University of
Houston.
Lowell N. Swanson
Portland, Oregon
Mr. Swanson is the President of the United Finance
Company, the largest independent finance company in
the Northwest. He has served on the board of directors
of the Oregon Consumer Finance Association, the Retail
Credit Association, the Portland Lenders Exchange, the
Consumer Credit Counseling Service, and the Consumer
Credit Association of Oregon; and he is a member of the
American Financial Services Association. Mr. Swanson
has helped set up programs to educate the public on how
to use credit responsibly (especially young people in high
school). In the mid-seventies, he helped organize a
required high school course in personal finance, an activity in which he continues to be involved. In 1991 he
received the National Association's "Distinguished Services Award." Mr. Swanson is a graduate of the University of Oregon.
Michael W. Tierney
Philadelphia, Pennsylvania
Mr. Tierney is the Director of the Philadelphia Local
Initiatives Support Corporation (LISC). He is responsible for the establishment and direction of the LISC office
in Philadelphia. LISC has provided more than $14 million in financial and technical assistance to nonprofit
community development organizations engaged in housing production, economic development, and neighborhood revitalization activities in Philadelphia's lowincome neighborhoods. From 1985 to 1989, Mr. Tierney
was Assistant Secretary for Municipal Development in
the Massachusetts Executive Office of Communities and
Development in Boston. He holds a B.A. from The College of Wooster and a Master of Divinity Degree from
Yale University.
The other members of the Council are the
following:1
Veronica E. Barela, Executive Director, NEWSED
Community Development Corporation, Denver, Colorado, December 1993
Toye L. Brown, Director, Freedom House, Inc., Boston, Massachusetts, December 1993
George C. Galster, Professor of Economics, College
of Wooster, Wooster, Ohio, December 1992
E. Thomas Garman, Professor of Consumer Studies at
the College of Human Resources, Virginia Polytechnic
Institute and State University, Blacksburg, Virginia,
December 1992
Donald A. Glas, President, First State Federal Savings
and Loan Association, Hutchinson, Minnesota, December 1993
Deborah B. Goldberg, Reinvestment Specialist, Neighborhood Revitalization Project, Center for Community
Change, Washington, D.C., December 1992
Michael M. Greenfield, Professor of Law, Washington University, St. Louis, Missouri, December 1992
Joyce Harris, President and Chief Executive Officer,
Telco Community Credit Union, Madison, Wisconsin,
December 1993
Julia E. Hiler, Executive Vice President, Sunshine
Mortgage Corporation, Marietta, Georgia, December
1993
Henry Jaramillo, Jr., President, Ranchers State Bank,
Belen, New Mexico, December 1993
Kathleen E. Keest, Staff Attorney, National Consumer
Law Center, Boston, Massachusetts, December 1992
Bernard F. Parker, Jr., Executive Director, Community Resource Projects, Detroit, Michigan, December
1992
Otis Pitts, Jr., President, Tacolcy Economic Development Corporation, Miami, Florida, December 1993
Nancy Harvey Steorts, President, Nancy Harvey
Steorts and Associates, Dallas, Texas, December 1992
Sandra Willett, Consultant on Quality Services, Boston, Massachusetts, December 1993
1. Date indicates when a member's term expires.
Announcements
INCREASE IN LIMIT ON AMOUNT OF
NONCUMULA TIVE PERPETUAL PREFERRED
STOCK TO BE INCLUDED IN TIER 1 CAPITAL
The Federal Reserve Board approved on January 14, 1992, a proposal to lift the limit on the
amount of noncumulative perpetual preferred stock
that bank holding companies may include in tier 1
capital for purposes of calculating their risk-based
and leverage capital ratios.
At present, there is no limit on the amount of noncumulative perpetual preferred stock that state
member banks may include in tier 1 capital.
Cumulative perpetual preferred stock will continue to be included in tier 1 capital for bank holding companies, up to the current limit of 25 percent
of tier 1 capital.
ISSUANCE OF REVISED SUPERVISORY POLICY
STATEMENT ON SECURITIES ACTIVITIES
The Federal Reserve Board issued on January 10,
1992, a revised Supervisory Policy Statement on
Securities Activities to become effective on February 10, 1992. This policy statement supersedes the
Supervisory Policy Concerning Selection of Securities Dealers and Unsuitable Investment Practices
issued on April 20, 1988.
The new policy statement was developed under
the auspices of the Federal Financial Institutions
Examination Council (FFIEC) and was recently
adopted by the Board. It addresses the selection of
securities dealers and requires depository institutions to establish prudent policies and strategies for
securities transactions.
In addition, the policy defines securities trading
or sales practices that are viewed by the agencies as
being unsuitable when conducted in an investment
portfolio, indicates characteristics of loans held for
sale or trading, and establishes a framework for
identifying when certain mortgage derivative products are high-risk mortgage securities that must be
reported as securities held for sale or for trading.
REGULATION CC: ADOPTION
OF AMENDMENTS AS AN INTERIM RULE
AND OTHER PROPOSED CHANGES
The Federal Reserve Board adopted on January 15,
1992, amendments to Regulation CC (Availability
207
of Funds and Collection of Checks) as an interim
rule and requested comment on other proposed
changes to the regulation. The amendments to Regulation CC implement provisions in the Federal
Deposit Insurance Corporation Improvement Act of
1991 that amend several provisions of the Expedited Funds Availability Act. Comments are due by
March 27, 1992.
The interim rule implements those provisions that
would have an immediate effect on banks. Specifically, the interim rule allows banks to extend holds,
on an exception basis, to "next-day" availability
checks and to allow one-time notices of exception
holds in certain cases. The Board is requesting comment pending adoption of a final rule.
RELEASE OF PRELIMINARY FIGURES
ON OPERATING INCOME
OF THE FEDERAL RESERVE BANKS
Preliminary figures indicate that operating income
of the Federal Reserve Banks amounted to
$22,551 billion during 1991. Net income before
payment of dividends, additions to surplus, and payments to the Treasury totaled $21,158 billion. About
$20,778 billion was paid to the U.S. Treasury during 1991.
Federal Reserve System income is derived primarily from interest earned on U.S. government securities that the Federal Reserve has acquired through
open market operations. Income from the provision
of financial services amounted to $737 million.
Operating expenses of the twelve Reserve Banks
and branches totaled $1,268 billion. In addition,
$160 million for earnings credits were granted to
depository institutions under the Monetary Control
Act of 1980. Assessments to Reserve Banks for
Board expenditures totaled $110 million, and the
cost of currency amounted to $261 million.
Net additions to income amounted to $496 million, primarily resulting from realized and unrealized gains on assets denominated in foreign currencies and gains on the sales of securities from the
System Open Market Account portfolio. Statutory
dividends to member banks were $153 million.
Under the policy established by the Board of
Governors at the end of 1964, all net income after
the statutory dividend to member banks and the
amount necessary to equate surplus to paid-in cap-
208
Federal Reserve Bulletin • March 1992
ital is transferred to the U.S. Treasury as interest on
Federal Reserve notes.
RELEASE OF REVISED LIST OF MARGINABLE
OTC STOCKS
The Federal Reserve Board published on January
24, 1992, a revised List of Marginable OTC Stocks
(OTC List) for over-the-counter (OTC) stocks that
are subject to its margin regulations. It also published the List of Foreign Margin Stocks (Foreign
List) for foreign equity securities that are subject to
Regulation T (Credit by Brokers and Dealers). The
lists were effective February 10, 1992, and supersede the previous lists that were effective November 12, 1991.
The Foreign List indicates those foreign equity
securities that are eligible for margin treatment at
broker-dealers. There were no additions, deletions,
or changes to the Foreign List, which contains
294 securities.
The changes that have been made to the revised
OTC List, which now contains 2,824 OTC stocks,
are as follows:
• One hundred forty stocks have been included
for the first time, 123 under National Market System (NMS) designation
• Forty-three stocks previously on the list have
been removed for substantially failing to meet the
requirements for continued listing
• Thirty-nine stocks have been removed for
reasons such as listing on a national securities
exchange or involvement in an acquisition.
The OTC List is published by the Board for the
information of lenders and the general public. It
includes all OTC securities designated by the Board
pursuant to its established criteria as well as all OTC
stocks designated as NMS securities for which
transaction reports are required to be made pursuant to an effective transaction reporting plan. Additional OTC securities may be designated as NMS
securities in the interim between the Board's quarterly publications and will be immediately marginable. The next publication of the Board's list is
scheduled for May 1992.
Besides NMS-designated securities, the Board
will continue to monitor the market activity of other
OTC stocks to determine which stocks meet the
requirements for inclusion and continued inclusion
on the OTC List.
EXTENSION OF PUBLIC COMMENT PERIOD
ON APPLICATION BY BANKAMERICA
CORPORATION TO ACQUIRE SECURITY
PACIFIC CORPORATION
The Federal Reserve Board announced on January 28, 1992, that it would extend until February
28 the public comment period on the application
by BankAmerica Corporation, located in San
Francisco, to acquire Security Pacific Corporation,
located in Los Angeles.
This extension permitted interested parties approximately thirty additional days to submit comments on the application. The Board had received
several requests for an extension of the public comment period at the public meetings recently held in
Los Angeles, Phoenix, San Francisco, and Seattle,
as well as several written requests. The original
comment period expired on January 30.
PUBLIC-ACCESS DATA TAPE OF THE
NATIONAL SURVEY OF SMALL BUSINESS
FINANCES NOW AVAILABLE
A public-access data tape of the National Survey of
Small Business Finances (NSSBF) is now available. The NSSBF is a one-time survey of small
business firms conducted in 1988-89 for the Board
of Governors of the Federal Reserve System and
the U.S. Small Business Administration (SBA). The
survey provides information on the use of financial
services and institutions for a nationally representative sample of 3,404 firms and a separate sample of
390 firms with SBA-guaranteed loans. Research
Triangle Institute conducted the interviewing for the
survey.
The NSSBF covers a wide range of financial
characteristics of small (fewer than 500 employees), privately owned, nonagricultural and nonfinancial firms. The survey collected general information on firms' business activities and ownership; an
inventory of deposit and investment accounts,
financing, and other financial service use; information on the firms' business relationships with finan-
Announcements
cial institutions; use of trade credit; experience with
SBA loans and services; data on sales and expenses;
and a complete balance sheet. The data are for calendar or fiscal year 1987.
Additional information on NSSBF methods and
content can be found in Gregory E. Elliehausen and
John D. Wolken, ' 'Banking Markets and the Use of
Financial Services by Small and Medium-Sized
209
Businesses," Federal Reserve Bulletin, vol. 76
(October 1990), pp. 801-17.
The data tape and documentation are available for
a fee of $480.00 (order number PB92501246) from
the National Technical Information Service, Federal Computer Products Center, 5285 Port Royal
Road, Springfield, VA 22161. To order by phone,
call (703) 487-4763.
211
Legal Developments
FINAL RULE—AMENDMENTS
G, T, U AND X
TO REGULATIONS
The Board of Governors is amending 12 C.F.R. Parts
207, 220, 221, and 224, its Regulations G, T, U, and X
(Securities Credit Transactions; List of Marginable
OTC Stocks; and List of Foreign Margin Stocks). The
List of Marginable OTC Stocks (OTC List) is comprised of stocks traded over-the-counter (OTC) in the
United States that have been determined by the Board
of Governors of the Federal Reserve System to be
subject to the margin requirements under certain Federal Reserve regulations. The List of Foreign Margin
Stocks (Foreign List) represents foreign equity securities that have met the Board's eligibility criteria
under Regulation T. The OTC List and the Foreign
List are published four times a year by the Board. This
document sets forth additions to or deletions from the
previous OTC List. There are no additions to or
deletions from the previous Foreign List. Both Lists
were last published on October 28, 1991, and effective
on November 12, 1991.
Effective February 10, 1992, accordingly, pursuant
to the authority of sections 7 and 23 of the Securities
Exchange Act of 1934, as amended (15 U.S.C. 78g and
78w), and in accordance with 12 C.F.R. 207.2(k) and
207.6 (Regulation G), 12 C.F.R. 220.2(u) and 220.17
(Regulation T), and 12 C.F.R. 221.2(j) and 221.7 (Regulation U), there is set forth below a listing of deletions
from and additions to the OTC List.
Deletions from the List of Marginable OTC
Stocks
Stocks Removed for Failing Continued Listing
Requirements
Affiliated Banc Corporation: $.10 par common
Alliant Computer Systems: $.01 par common, 1V<\%
convertible subordinated debentures
Appian Technology Inc.: $.01 par common
Autodie Corporation: $.05 par common
Centuri, Inc.: $.05 par common
Chancellor Corporation: $.01 par common
Country Lake Foods, Inc.: $.01 par common
Crownamerica, Inc.: N o par common
CSC Industries, Inc.: $.10 par common
Dyansen Corporation: $.01 par common
Dyncorp: Class A, 17% redeemable preferred
Erie Lackawanna, Inc.: No par capital stock, $1.00
stated value
Fairfield County Bancorp, Inc.: $1.00 par common
Forest Oil Corporation: $2,125 par convertible preferred
Forum Group, Inc.: No par common
General Sciences Corporation: $.01 par common
Gold Company of America: Depositary units of limited
partnership interest
GTE California, Inc.: Series 1956, AVi% cumulative
preferred
Highland Superstores, Inc.: $.01 par common
Home Centers, Inc.: No par common
IEH Corporation: $.50 par common
Image Bank, Inc.: $.01 par common
Information Science Incorporated: $.01 par common
Investors Financial Corporation: $1.25 par common
Jones Spacelink, Ltd.: Class A, $.01 par common
National Micronetics, Inc.: $.10 par common
Nestor, Inc.: $.01 par common
OHM Corporation: 8% convertible subordinated debentures
Banker's Note, Inc., The: $.01 par common
Barry's Jewelers, Inc.,: No par common
P.A.M. Transportation Services, Inc.: $.01 par common
Pacific Agricultural Holdings, Inc.: No par common
Personal Computer Products, Inc.: $.005 par common
Pharmakinetics Laboratories, Inc.: $.001 par common
Pinnacle Bancorp, Inc.: $.01 par common
Cascade International, Inc.: $.001 par common
Selecterm, Inc.: $.05 par common
212
Federal Reserve Bulletin • March 1992
Tele-Communications, Inc.: Rights (expire 01-31-95)
Regional Federal Bancorp, Inc.: No par common
Unitronix Corporation: No par common
South Carolina National Corporation: $5.00 par common
Spearhead Industries, Inc.: $.05 par common
St. Paul Companies, Inc., The: No par common
Ventura Entertainment Group Ltd.: Class A, Warrants
(expire 05-31-93)
WTD Industries, Inc.: No par common
Stocks Removed for Listing on a National
Securities Exchange or Being Involved in an
Acquisition
Advanced Magnetics, Inc.: $.01 par common
Aegon N.V.: American registered certificates representing ordinary shares
Ashton-Tate Corporation: $.01 par common
Avantek, Inc.: No par common
Tyco Toys, Inc.: $.01 par common, Warrants (expire
06-07-93)
United Artists Entertainment: Class A, $.001 par
common; Class B, $.001 par common
Valid Logic Systems, Inc.: $.001 par common
Velobind, Incorporated: $.50 par common
Washington Federal Savings Bank (Oregon): $1.00 par
common
XL/Datacomp, Inc.: $.01 par common
Bangor Hydro-Electric Company: $5.00 par common
Bohemia Inc.: No par common
Additions to the List of Marginable OTC
Stocks
Carolina Financial Corporation: $1.00 par common
Cetus Corporation: $.01 par common
Cross & Trecker Corporation: $1.00 par common
Aames Financial Corporation: $.001 par common
Advanced Interventional System, Inc.: No par common
Affymax N.V.: Common stock (DFL. 06)
Alliance Imaging, Inc.: $.01 par common
Allied Healthcare Products, Inc.: $.01 par common
Alpha 1 Biomedicals, Inc.: Class B, Warrants (expire
06-30-95)
Alpharel, Inc.: Warrants (expire 12-12-94)
Alteon, Inc.: $.01 par common
Ambar, Inc.: $.01 par common
America Service Group, Inc.: $.01 par common
American International Petroleum Corporation: $.08
par common
American Superconductor Corporation: $.01 par common
Aortech, Inc.: $.01 par common
Apple South, Inc.: $.01 par common
Aramed, Inc.: Units (expire 09-30-93)
Ari Network Services, Inc.: $.001 par common
Athena Neurosciences, Inc.: $.01 par common
Atlantic Tele-Network, Inc.: $.01 par common
Atrix Laboratories, Inc.: $.001 par common
Autocam Corporation: No par common
Durham Corporation: $5.00 par common
Duty Free International, Inc.: $.01 par common
Employee Benefit Plans, Inc.: $.01 par common
Environmental Elements Corporation: $.01 par common
General Kinetics Incorporated: $.25 par common
Harold's Stores, Inc.: $.01 par common
Heist, C.H., Corporation: $.05 par common
Hickam, Dow B., Inc.: $.01 par common
International Shipholding Corp.: $1.00 par common
Jiffy Lube International, Inc.: $.25 par common
Kamenstein, M., Inc.: $.01 par common
Kasler Corporation: No par common
Marine Corporation: $.7812 par common
Metcalf & Eddy Companies, Inc.: $.01 par common
Novacare: $.01 par common
Oceaneering International, Inc.: $.25 par common
Office Depot, Inc.: $.01 par common
Petroleum Equipment Tools Company: $.50 par common
Bachman Information Systems, Inc.: $.01 par common
Bally Gaming International, Inc.: $.01 par common
Barefoot Inc.: $.01 par common
Barra, Inc.: No par common
Bell Bancorp, Inc.: $.01 par common
Biomagnetic Technologies, Inc.: No par common
Biomira Inc.: No par common
Legal Developments
Broderbund Software, Inc.: $.01 par common
Cenfed Financial Corporation: $.01 par common
Century Cellular Corporation: Class A, $.01 par common
Checkers Drive-In Restaurants, Inc.: $.001 par common
Choice Drug Systems, Inc.: $.01 par common, Warrants (expire 06-30-92)
Clinical Technologies Associates, Inc.: $.01 par common
Compusa Inc.: No par common
Cryomedical Sciences, Inc.: $.001 par common
Custom Chrome, Inc.: $.001 par common
Cyberoptics Corporation: No par common
Cytel Corporation: $.01 par common
Cytrx Corporation: $.001 par common; Class B, Warrants (expire 11-09-92)
Digital Biometrics, Inc.: $.01 par common
Diversicare, Inc.: $.01 par common
DNX Corporation: $.01 par common
Electric & Gas Technology, Inc.: $.01 par common
Embrex, Inc.: No par common, Warrants (expire
11-07-96)
Enzon, Inc.: Warrants (expire 11-01-94)
F & C International, Inc.: No par common
Fidelity Medical, Inc.: $.01 par common
Forest Oil Corporation: $.75 par convertible preferred,
Warrants (expire 10-01-96)
Frontier Adjusters of America, Inc.: $.01 par common
Future Communications, Inc.: $.001 par common
Gencare Health Systems, Inc.: $.02 par common
Genta Incorporated: $.001 par common
Goody's Family Clothing, Inc.: No par common
Grancare, Inc.: No par common
Granite Broadcasting, Inc.: $.01 par common
Hamburger Hamlet Restaurants, Inc.: $.01 par common
Hechinger Company: Convertible subordinated debentures due 2012
Hoenig Group, Inc.: $.01 par common; Class A,
Warrants (expire 10-29-93)
Imclone Systems Incorporated: $.001 par common
IMRS Inc.: $.01 par common
In Home Health, Inc.: $.01 par common
Indiana United Bancorp: No par common
Information America, Inc.: $.01 par common
Inforum, Inc.: $.01 par common
Insurance Auto Auctions, Inc.: $.001 par common
213
Interactive Network, Inc.: No par common
Interferon Sciences, Inc.: $.01 par common
International Airline Support Group, Inc.: $.001 par
common
International Cablecasting Technologies, Inc.: $.01
par common
Ipsco Inc.: No par common
Jimbo's Jumbos, Incorporated: $.001 par common
Lannet Data Communications Ltd.: Ordinary shares
(NIS .1 par value)
Liberty Bancorp, Inc.: $.01 par common
Louisville Gas and Electric Company: 7.45% cumulative preferred stock
Magainin Pharmaceuticals, Inc.: $.002 par common
Manhattan Life Insurance Company, The: $2.00 par
common
Marquette Electronics, Inc.: Class A, $.10 par common
Matthews Studio Equipment Group: No par common
Medisys, Inc.: $.01 par common
Miami Subs Corporation: $.01 par common
Missimer & Associates, Inc.: $.01 par common
Mitek Surgical Products, Inc.: $.01 par common
MTC Electronic Technologies Co., Ltd.: No par common
Namic U.S.A. Corporation: $.01 par common
National City Bancshares, Inc.: $3.33-1/3 par common
National Medical Waste, Inc.: $.01 par common
National Rehabilitation Centers, Inc.: $.01 par common
Newcor, Inc.: $1.00 par common
Noble Drilling Corporation: $1.00 par convertible exchangeable preferred
Old Dominion Freight Line, Inc.: $1.00 par common
Pacific Physician Services, Inc.: $.01 par common
Peer Review Analysis, Inc.: $.10 par common
Perfumania, Inc.: $.01 par common
Perrigo Company: No par common
Pharmaceutical Marketing Services, Inc.: $.01 par
common
Physician Computer Network, Inc.: $.01 par common
Price Company, The: Convertible subordinated debentures due 2001
Price Reit, The: $.01 par common
Provident American Corporation: $1.00 par common
Qualcomm Incorporated: $.0001 par common
Read-Rite Corporation: $.0001 par common
Retix: $.01 par common
214
Federal Reserve Bulletin • March 1992
Rochester Medical Corporation: No par common
Ropak Laboratories: No par common
Sam & Libby, Inc.: $.001 par common
Sanfilippo, John B., & Son, Inc.: $.01 par common
SGI International: No par common
Sheffield Industries, Inc.: $.01 par common
SLM International, Inc.: $.01 par common
Softkey Software Products Inc.: No par common
Southern Electronics Corporation: $.01 par common
Sports/Leisure, Inc.: $.01 par common
Star Multi Care Services, Inc.: $.001 par common
Sterling Savings Association: $1.00 par common
Sulcus Computer Corporation: No par common;
Series A, no par redeemable convertible preferred;
Class B, Warrants (expire 06-30-92)
Sungard Data Systems, Inc.: SlA% convertible subordinated debentures
Supercuts, Inc.: $.01 par common
Synalloy Corporation: $1.00 par common
Syquest Technology, Inc.: $.001 par common
THQ, Inc.: $.001 par common
Tetra Tech, Inc.: $.01 par common
TRM Copy Centers Corporation: No par common
UF Bancorp, Inc.: $.01 par common
Ultra Pac, Inc.: $2.00 par common
United New Mexico Financial Corporation: Series A,
no par preferred
United Wisconsin Services, Inc.: No par common
Vest, H.D., Inc.: $.05 par common; Class A, Warrants
(expire 06-15-93); Class B, Warrants (expire 11-26-94)
Viewlogic Systems, Inc.: $.01 par common
Vitesse Semiconductor Corporation: $.01 par common
Warehouse Club, Inc.: Warrants (expire 11-13-94)
World Acceptance Corporation: No par common
ORDERS ISSUED UNDER BANK HOLDING
COMPANY ACT
Orders Issued Under Section 3 of the Bank
Holding Company Act
HMS Holdings, Inc.
San Antonio, Texas
Order Denying Formation of a Bank Holding
Company
HMS Holdings, Inc., San Antonio, Texas ("HMS"),
has applied under section 3(a)(1) of the Bank Holding
Company Act ("BHC Act") (12 U.S.C. § 1842(a)(1))
to become a bank holding company through the acquisition of Castle Hills National Bank, San Antonio,
Texas ("Bank").1
Notice of the application, affording interested persons an opportunity to submit comments, was published (56 Federal Register 27,753 (1991)). The time for
filing comments has expired, and the Board has considered the application and all comments received in
light of the factors set forth in section 3(c) of the BHC
Act. The Board also notified the Office of the Comptroller of the Currency ("OCC") and the United States
Department of Justice regarding the application and
offered them an opportunity to express their views on
the application.
HMS is a nonoperating corporation organized for
the purpose of becoming a bank holding company
through the acquisition of Bank. Bank is the 890th
largest banking organization in Texas, controlling deposits of $17.2 million, representing less than 1 percent
of the total deposits in commercial banks in the state.2
In reviewing applications under section 3(c) of the
BHC Act, the Board must consider several factors,
including the "financial and managerial resources and
future prospects of the company or companies and the
banks concerned."3 Section 3(c)(5) of the BHC Act
provides that, in considering the managerial resources
of a bank holding company, the Board shall consider
the competence, experience, and integrity of the officers, directors, and principal shareholders of a bank
holding company.4 The Board's regulations also provide that the Board will consider a bank holding
company's ability to serve as a source of financial and
managerial strength to its subsidiary banks.5
Managerial Considerations
In this case, a proposed principal management official
of Bank with previous banking experience has been
the subject of significantly adverse comments by the
1. HMS proposes to acquire Bank through the purchase of a note
secured by the stock of Bank and held by the Federal Deposit
Insurance Corporation ("FDIC").
2. State deposit data are as of June 30, 1990.
3. 12 U.S.C. § 1842(c). In interpreting the Board's authority under
section 3 of the BHC Act, the Supreme Court has stated that the
Board is authorized to disapprove a formation of a bank holding
company solely on the grounds of financial or managerial unsoundness, and that the authority of the Board is not limited to instances in
which the financial or managerial unsoundness would be caused or
exacerbated by the proposed transaction. Board of Governors v. First
Lincolnwood Corp., 546 F.2d 718 (7th Cir. 1976), modified, 560 F.2d
258 (7th Cir. 1977), rev'd on other grounds, 439 U.S. 234 (1978).
4. See 12 U.S.C. § 1842(c)(5), amended by section 210 of the
Federal Deposit Insurance Corporation Improvement Act of 1991,
Pub. L. No. 102-242, § 210, 105 Stat. 2236, 2298. The Board's
regulations provide that the Board will consider the competence and
character of the principals of the applicant and its subsidiary banks,
including their record of compliance with laws and regulations.
12 C.F.R. 225.13(b)(2).
5. 12 C.F.R. 225.4(a).
Legal Developments
FDIC with regard to said official's lending practices
and managerial abilities in his previous banking operations.6 Referring to criticisms by the FDIC, the OCC,
which is Bank's primary regulator, has also advised
the Board that said official's proposed position with
Bank raises supervisory concerns.
Based on the all the facts of record, including relevant
information and comments received from the FDIC and
the OCC, the Board believes that managerial factors in
this case weigh against approval of this proposal.
Financial, Supervisory, and Future Prospects
Considerations
HMS proposes to recapitalize Bank to a 5 percent
leverage capital ratio through a cash injection upon
consummation of this proposal. HMS's capital plan for
restoring Bank to satisfactory condition relies on returning Bank to profitability in the near future, principally through the reduction of Bank's overhead expenses. As part of this plan, HMS has projected a
significant increase in Bank's annualized return on
average assets for the first six months following the
acquisition.
HMS's projections appear to be overly optimistic in
light of Bank's past experience, including Bank's rate
of return on average assets since its establishment in
1984. In addition, the record of this application raises
significant doubts regarding whether HMS would have
sufficient financial flexibility to serve as a source of
financial strength to meet any future financial needs of
Bank. HMS appears to be relying primarily on its
expectation that it can reduce costs at Bank and
thereby improve earnings and achieve profitability.
Based on all of the facts of record, it is the Board's
judgment that, in light of all relevant circumstances,
these projections are overly optimistic.
HMS has also repeatedly refused to provide relevant
and material financial information regarding its operations, including projections for its operations after acquisition of Bank, or plans to support Bank financially
in the event that its projections regarding Bank's earnings prove inaccurate. Section 3(c)(3)(A) of the BHC
Act provides that, in considering the supervisory factors, the Board shall disapprove any application to
acquire a bank if the acquiring company fails to provide
the Board with adequate assurances that the company
will make available to the Board such information on
the operations or activities of the company as the Board
determines to be appropriate to determine and enforce
6. The facts of record suggest that methods proposed by HMS to
avoid the problems identified in the FDIC's examination report may
not be sufficient to address the problems.
215
compliance with the BHC Act.7 HMS's failure to
provide requested financial information that is material
and relevant to the financial factors in this case raises
substantial concerns regarding whether HMS will supply requested information to the Board in the future and
whether the ability of the Board to supervise HMS
effectively would be impaired.
Based on a review of all the facts of record, including relevant examination materials and comments
from federal regulators, the Board concludes that
considerations relating to financial and managerial
resources and future prospects and supervisory factors are not consistent with approval.8 Considerations
relating to competitive factors and the convenience
and needs of the community do not lend sufficient
weight to warrant approval of this application.
Accordingly, it is the Board's judgment that approval of this application is not warranted and that the
application should be, and hereby is, denied.
7. See 12 U.S.C. § 1842(c)(3)(A), amended by section 202(d)(5) of
the Federal Deposit Insurance Corporation Improvement Act of 1991,
Pub. L. No. 102-242, § 202(d)(5), 105 Stat. 2236, 2290.
8. HMS contends that this application was approved by operation of
law as of October 15, 1991, and that HMS, therefore, may consummate the proposed transaction without Board approval. HMS bases
this argument on its opinion that the 91-day period stipulated in the
BHC Act and the Board's regulations for Board action on an application began upon the acceptance of this application for processing and
thus has expired.
Contrary to HMS's contention, the BHC Act provides that the
91-day period does not begin until the submission to the Board of the
completed record on the application. 12 U.S.C. §§ 1842(b)(1),
1843(c). The Board's regulations provide that the record on an
application is not complete until the latest of several events, including
the "date of receipt by the Board of the last relevant material
regarding the application that is needed for the Board's decision, if the
material is received from a source outside the Federal Reserve
System." 12 C.F.R. 225.14(g); see also 12 C.F.R. 225.23(h); accord
First Lincolnwood Corp. v. Board of Governors, supra note 3. In sum,
neither the BHC Act, the Board's regulations, nor the relevant court
cases support HMS's contention.
The Board has received relevant, material information needed for
the Board's evaluation of the financial and managerial factors in this
case throughout the processing of this application from sources
outside the Federal Reserve System. For example, on September 13,
1991, the Board received an FDIC examination report that is material
and relevant to the evaluation of managerial factors in this case; on
October 24, 1991, the Board received comments from the OCC
regarding the managerial factors in this case. In light of the relevant,
material nature of this and other information received by the Board,
the Board believes that the 91-day period in this case has not expired
and that HMS is not entitled as a matter of law to consummate this
proposal.
In addition, the Board requested HMS to provide necessary and
material financial information regarding its expenses, income, and
financial resources by letter dated September 13, 1991, and again by
telephone in October and November. H M S failed to respond to these
requests. The Board does not believe that an applicant may use its
own inaction or refusal to provide material relevant information as a
basis for computing the 91-day period. H M S ' s practice and theory are
not consistent with the terms of the 91-day rule, which begins to run
when the record of the case is complete, as expressed in the BHC Act.
Moreover, this practice, if permitted, would allow an applicant to
frustrate the legislative requirements for approval by the Board,
including the requirement that the Board base its action on consideration of a complete record of the financial aspects of its application.
216
Federal R e s e r v e Bulletin • March 1992
By order of the Board of Governors, effective
January 21, 1992.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips.
JENNIFER J . JOHNSON
Associate
Secretary of the Board
Ohnward Bancshares, Inc.
Maquoketa, Iowa
Order Approving Acquisition of a Bank
Ohnward Bancshares, Inc., Maquoketa, Iowa
("Ohnward"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied under section 3(a)(3) of the BHC
Act (12 U.S.C. § 1842(a)(3)) to acquire Baldwin Savings Bank, Baldwin, Iowa ("Baldwin").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (56 Federal Register 50,122 (1991)). The
time for filing comments has expired, and the Board
has considered the application and all comments received, in light of the factors set forth in section 3(c) of
the BHC Act.
Ohnward is the 29th largest commercial banking
organization in Iowa, controlling two subsidiary banks
with $129.2 million in deposits, representing less than
one percent of total deposits in commercial banking
organizations in Iowa. 1 Baldwin is the 370th largest
commercial banking organization in Iowa, controlling
deposits of $13.7 million, representing less than one
percent of total deposits in commercial banking organizations in Iowa. Upon consummation of this proposal,
Ohnward would become the 26th largest commercial
banking organization in Iowa, controlling deposits of
$142.9 million, representing less than one percent of
total deposits in commercial banking organizations in
Iowa. Accordingly, consummation of this proposal
would not result in a significantly adverse effect on the
concentration of commercial banking resources in
Iowa.
Ohnward and Baldwin operate in the Maquoketa,
Iowa banking market.2 Ohnward is the largest of the
commercial banking and thrift organizations (together
"depository institutions") in the market, controlling
deposits of $92.1 million, representing 30.3 percent of
1. All state data are as of June 30, 1990. Market data are as of
June 30, 1990, and reflect acquisitions approved as of January 1, 1992,
but not consummated as of that date.
2. The Maquoketa, Iowa banking market is approximated by
Jackson County, Iowa; Bloomfield, Brookfield, and Sharon townships
in Clinton County, Iowa; and Oxford and Wyoming townships in
Jones County, Iowa.
total deposits in depository institutions in the market.3
Baldwin is the eighth largest depository institution in
the market, controlling deposits of $13.7 million, representing 4.5 percent of total deposits in depository
institutions in the market. Upon consummation of this
proposal, Ohnward would control $105.8 million in
deposits, representing 34.8 percent of total deposits in
depository institutions in the market. The Maquoketa,
Iowa banking market would become highly concentrated upon consummation of this proposal; the Herfindahl-Hirschman Index ("HHI") for the market would
increase by 273 points to 1968.4
Although consummation of this proposal would result in an increase in market concentration, eight commercial banking organizations and one thrift institution,
including some of the largest depository institutions in
Iowa, would remain as competitors in the market upon
consummation of this proposal. Ohnward also will
provide Baldwin with the additional managerial resources necessary to improve Baldwin's financial condition. In addition, by letter dated October 23, 1991, the
State of Iowa Department of Banking strongly recommended approval of the proposal. The Iowa Department of Banking believes that the proposed acquisition
would enhance Baldwin's ability to provide additional
credit to agricultural borrowers. On this basis, the Iowa
Banking Department has expressed its belief that the
anticompetitive effects of this proposal are outweighed
by the favorable effects of the proposal upon the
convenience and needs of the community. The Board
has considered the competitive effects of the proposal, including the number and size of competitors
remaining following the acquisition, the recommendation of the Iowa Banking Department, and the
other facts of record, and has determined that consummation of the proposal is not likely to result in a
significantly adverse effect on competition in the
Maquoketa banking market.
The financial and managerial resources and future
prospects of Ohnward, its subsidiary banks and Bald-
3. Market share data are based on calculations in which the deposits
of thrift institutions are included at 50 percent. The Board previously
has indicated that thrift institutions have become, or have the potential to become, major competitors of commercial banks. See Midwest
Financial Group, 75 Federal Reserve Bulletin 386 (1989); National
City Corporation, 70 Federal Reserve Bulletin 743 (1984).
4. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
such markets, the Justice Department is likely to challenge a merger
that increases the HHI by more than 50 points. The Department of
Justice has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by at least 200 points. The
Justice Department has stated that the higher than normal HHI
thresholds for screening bank mergers and acquisitions for anticompetitive effects implicitly recognizes the competitive effect of limitedpurpose lenders and other non-depository financial entities.
Legal Developments
win, and supervisory factors, are consistent with
approval.5 The Board also finds that considerations
relating to the convenience and needs of the communities to be served are consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The acquisition shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Chicago, acting pursuant to delegated authority.
By order of the Board of Governors, effective
January 21, 1992.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips.
JENNIFER J . JOHNSON
Associate Secretary of the Board
Orders Issued Under Bank Merger Act
Fleet Bank-NH
Nashua, New Hampshire
Order Approving the Acquisition of Assets and
Assumption of Liabilities
Fleet Bank-NH, Nashua, New Hampshire, has applied for the Board's approval under the Bank Merger
Act (12 U.S.C. § 1828(c)) to acquire certain assets and
5. The Board has carefully considered comments filed by two
commenters who state that they have relationships with Baldwin. One
commenter states that he has not been paid for his services for
Baldwin and requests that the Board defer approval of the application
until the dispute over his fee has been resolved. An anonymous
commenter objected to the proposal, alleging improprieties in
Ohnward's acquisition of Baldwin and asserting that consummation of
the proposal would result in the elimination of competition in the
market. Ohnward has provided information responding to these
comments. After careful consideration of the comments and other
facts of record, the Board concludes that the comments do not warrant
denial of the application.
217
assume certain liabilities from Atlantic Trust Company, Newington, New Hampshire ("Atlantic").
Public notice of the application before the Board is
not required by the Act, and in view of the emergency situation the Board has not followed its normal
practice of affording interested parties the opportunity to submit comments and views. In view of the
emergency situation involving Atlantic, the State of
New Hampshire Banking Department has recommended immediate action by the Board to prevent
the probable failure of Atlantic.
In connection with the application, the Secretary
of the Board has taken into consideration the competitive effects of the proposed transaction, the financial and managerial resources, future prospects
of the institutions concerned, and the convenience
and needs of the communities to be served. On the
basis of the information before the Board, the Secretary of the Board finds that an emergency situation
exists so as to require that the Secretary of the Board
act immediately pursuant to the provisions of section
18(c)(3) of the Federal Deposit Insurance Act
(12 U.S.C. § 1828(c)(3)) in order to safeguard depositors of Atlantic. Having considered the record of
this application in light of the factors contained in the
Bank Merger Act, the Secretary of the Board has
determined that consummation of the transaction
would be in the public interest and that the application should be approved on a basis that would not
preclude immediate consummation of the proposal.
On the basis of these considerations, the application
is approved.
The transaction may be consummated immediately,
but in no event later than three months after the
effective date of this Order unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Boston acting pursuant to
delegated authority.
By order of the Secretary of the Board, acting
pursuant to delegated authority for the Board of Governors, effective January 30, 1992.
WILLIAM W . WILES
Secretary of the Board
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are avaialble upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
218
Federal Reserve Bulletin • March 1992
Section 3
Applicant(s)
Barnett Banks, Inc.,
Jacksonville, Florida
Bank(s)
^Date^
Barnett Bank of Broward County,
N.A.,
Fort Lauderdale, Florida
January 29, 1992
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By Federal Reserve
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Section 3
Applicant(s)
APM Bancorp, Inc.,
Buffalo, Iowa
Bushton Investment Company,
Inc., Hays, Kansas
CB Financial Corporation,
Jackson, Michigan
Central Bancompany, Inc.,
Jefferson City, Missouri
Chadwick Bancshares, Inc.,
Chadwick, Illinois
Community First Bankshares,
Inc.,
Fargo, North Dakota
Coweta Bancshares, Inc.,
Coweta, Oklahoma
Crosswhite Bankshares, Inc.,
Denver, Colorado
Elkton Holding Company,
Elkton, South Dakota
Farmers State Corporation,
Mountain Lake, Minnesota
The F. Calvin Packard Family
Limited Partnership,
Springville, Utah
Bank(s)
Buffalo Savings Bank,
Buffalo, Iowa
The Bank of Inman,
Inman, Kansas
CCSB Corporation,
Charlevoix, Michigan
Third Bancshares
Corporation,
Sedalia, Missouri
Miles Service
Corporation,
Miles, Iowa
First Breck Holding
Company,
Breckenridge,
Minnesota
Security Bank,
Coweta, Oklahoma
Cripple Creek
Bancorporation, Inc.,
Cripple Creek,
Colorado
Corn Exchange Bank,
Elkton, South Dakota
Jackson State Bank,
Jackson, Minnesota
Central Bancorporation,
Springville, Utah
Reserve
Bank
Effective
Date
Chicago
January 15, 1992
Kansas City
January 27, 1992
Chicago
January 13, 1992
St. Louis
January 10, 1992
Chicago
December 26, 1991
Minneapolis
January 17, 1992
Kansas City
January 10, 1992
Kansas City
December 27, 1991
Minneapolis
December 31, 1991
Minneapolis
January 17, 1992
San Francisco
January 27, 1992
Legal Developments
219
Section 3—Continued
Applicant(s)
Financial Investors of the South,
Inc.,
Birmingham, Alabama
Firstar Corporation of Illinois,
Milwaukee, Wisconsin
Firstar Corporation,
Milwaukee, Wisconsin
First Neighborhood Bancshares,
Inc.,
Toledo, Illinois
F.S.B. Bancorporation, Inc. of
Fort Morgan ESOP,
Fort Morgan, Colorado
Independence Bancshares, Inc.,
Independence, Iowa
Leachville State Bancshares,
Inc.,
Leachville, Arkansas
Mid-South Bancshares, Inc.,
Paragould, Arkansas
MSB Shares, Inc.,
Monette, Arkansas
Nichols Bancorp Inc.,
Nichols, Wisconsin
Old National Bancorp,
Evansville, Indiana
Orangeville Bancorp, Inc.,
Orangeville, Illinois
Padgett Agency, Inc.,
Greenleaf, Kansas
Phenix-Girard Bancshares, Inc.,
Phenix City, Alabama
State Bancorp, Inc.,
New Hyde Park, New York
TCBankshares, Inc.,
North Little Rock, Arkansas
Van Diest Investment Company,
Ankeny, Iowa
Tennessee Bancorp, Inc.,
Columbia, Tennessee
Vogel Bancshares, Inc.,
Orange City, Iowa
Reserve
Bank
Bank(s)
Effective
Date
Bank of Alabama,
Fultondale, Alabama
Atlanta
December 31, 1991
First Geneva
Banqueshares, Inc.,
Geneva, Illinois
Chicago
January 17, 1992
Greenup National Corp.,
Belleville, Illinois
Chicago
January 10, 1992
F.S.B. Bancorporation,
Inc.,
Fort Morgan, Colorado
First State
Bancorporation,
Fredricksburg, Iowa
Caraway Bancshares,
Inc.,
Caraway, Arkansas
Far-Mer Bankshares,
Inc.,
Reyno, Arkansas
MidSouth Bank,
Monette, Arkansas
State Bank of Nichols,
Nichols, Wisconsin
U.S.B. Corporation
Washington, Indiana
Orangeville Community
Bank,
Orangeville, Illinois
Cloud County
Bancshares, Inc.,
Concordia, Kansas
Phenix-Girard Bank,
Phenix City, Alabama
State Bancorp Interim
Savings Bank F.S.B.,
New Hyde Park,
New York
The Twin City Bank,
North Little Rock,
Arkansas
Altoona State Bank,
Altoona, Iowa
Tennessee National Bank,
Columbia, Tennessee
Iowa State Bank,
Hull, Iowa
Kansas City
January 9, 1992
Chicago
January 28, 1992
St. Louis
January 23, 1992
St. Louis
January 30, 1992
St. Louis
January 15, 1992
Chicago
January 24, 1992
St. Louis
January 27, 1992
Chicago
January 6, 1992
Kansas City
January 17, 1992
Atlanta
January 28, 1992
New York
December 27, 1991
St. Louis
December 30, 1991
Chicago
December 27, 1991
Atlanta
January 10, 1992
Chicago
January 13, 1992
220
Federal Reserve Bulletin • March 1992
Section 4
Nonbanking
Activity/Company
Applicant(s)
First Commercial Bancshares,
Inc.,
Jasper, Alabama
People's Savings Financial Corp.,
New Britain, Connecticut
Canterbury Trust
Company, Inc.,
Birmingham, Alabama
Federal Savings Bank,
F.S.B.,
New Britain,
Connecticut
Reserve
Bank
Effective
Date
Atlanta
January 13, 1992
Boston
December 31, 1991
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)
Chemical Bank
New York, New York
Old Kent Bank and Trust
Company,
Grand Rapids, Michigan)
Wesbanco Bank,
Wheeling, West Virginia
Chemcial Bank Delaware,
Wilmington, Delaware
Old Kent Bank of
Lansing,
Lansing, Michigan
Bank of Follansbee,
Follansbee,
West Virginia
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 riot named a party.
In re Subpoena Served on the Board of Governors,
Nos. 91-5427, 91-5428 (D.C. Cir., filed December
27, 1991). Appeal of order of district court, dated
December 3, 1991, requiring the Board and the
Office of the Comptroller of the Currency to produce
confidential examination material to a private litigant. The court of appeals stayed the district court
order on January 7, 1992, and will hear oral argument on the case on March 17, 1992.
Greenberg v. Board of Governors, No. 91-4200 (2d
Cir., filed December 4, 1991). Petition for review of
orders of prohibition issued by the Board on October 28, 1991. Oral argument is scheduled for the
week of March 30, 1992.
Reserve
Bank
Bank(s)
Effective
Date
New York
January 30, 1992
Chicago
January 29, 1992
Cleveland
January 10, 1992
First Interstate BancSystem of Montana, Inc. v.
Board of Governors, No. 91-1525 (D.C. Cir., filed
November 1, 1991). Petition for review of Board's
order denying on Community Reinvestment Act
grounds the petitioner's application under section
3 of the Bank Holding Company Act to merge with
Commerce BancShares of Wyoming, Inc.
Board of Governors v. Kemal Shoaib, No. CV 91-5152
(C.D. California, filed September 24, 1991). Action
to freeze assets of individual pending administrative
adjudication of civil money penalty assessment by
the Board. On October 15, the court issued a preliminary injunction restraining the transfer or disposition of the individual's assets.
Board of Governors v. Ghaith R. Pharaon, No.
91-CIV-6250 (S.D. New York, filed September 17,
1991). Action to freeze assets of individual pending
administrative adjudication of civil money penalty
assessment by the Board. On September 17, the
court issued an order temporarily restraining the
transfer or disposition of the individual's assets.
Legal Developments
In re Smouha, No. 91-B-13569 (Bkr. S.D. New York,
filed August 2, 1991). Ancillary proceeding under the
U.S. Bankruptcy Code brought by provisional liquidators of BCCI Holdings (Luxembourg) S.A. and
affiliated companies. On August 15, 1991, the bankruptcy court issued a temporary restraining order
staying certain judicial and administrative actions,
which has been continued by consent.
Hanson v. Greenspan, No. 91-1599 (D.D.C., filed June
28, 1991). Suit for return of funds and financial instruments allegedly owned by plaintiffs. The Board's
motion to dismiss was filed on October 29; the
plaintiffs filed an opposition on November 12, 1991.
Fields v. Board of Governors, No. 3:91CV069 (N.D.
Ohio, filed February 5, 1991). Appeal of denial of
request for information under the Freedom of Information Act.
Citicorp v. Board of Governors, No. 90-4124 (2d Circuit,
filed October 4, 1990). Petition for review of Board
order requiring Citicorp to terminate certain insurance
activities conducted pursuant to Delaware law by an
indirect nonbank subsidiary. On June 10, 1991, the
court of appeals granted the petition and vacated the
Board's order. On January 13, 1992, the Supreme
Court denied the petition for certiorari filed by the
Independent Insurance Agents of America and others.
Synovus Financial Corp. v. Board of Governors, No.
89-1394 (D.C. Circuit, filed June 21, 1989). Petition for
review of Board order permitting relocation of a bank
holding company's national bank subsidiary from Alabama to Georgia. On December 20, 1991, the Court of
Appeals vacated the Board's order, ruling that the
Board has no authority over interstate relocations of
national banks.
MCorp v. Board of Governors, No. 89-2816 (5th
Circuit, filed May 2, 1989). Appeal of preliminary
injunction against the Board enjoining pending and
future enforcement actions against a bank holding
company now in bankruptcy. On May 15, 1990, the
Fifth Circuit vacated the district court's order enjoining the Board from proceeding with enforcement
actions based on section 23A of the Federal Reserve
Act, but upheld the district court's order enjoining
such actions based on the Board's source-ofstrength doctrine. 900 F.2d 852 (5th Cir. 1990). On
cross-petitions for certiorari, Nos. 90-913, 90-914,
the Supreme Court, on December 3, 1991, reversed
that part of the Court of Appeals decision enjoining
the Board's enforcement action, on the ground that
the courts have no jurisdiction to affect such proceedings until final orders are issued by the Board.
MCorp v. Board of Governors, No. CA3-88-2693
(N.D. Texas, filed October 10, 1988). Application
for injunction to set aside temporary cease and
desist orders. Stayed pending outcome of MCorp v.
Board of Governors, 900 F.2d 852 (5th Cir. 1990).
221
WRITTEN AGREEMENTS APPROVED BY FEDERAL
RESERVE BANKS
Bank of the Commonwealth
Norfolk, Virginia
The Federal Reserve Board announced on January 30,
1992, the execution of a Written Agreement among the
Federal Reserve Bank of Richmond, the Bank of the
Commonwealth, Norfolk, Virginia, and the Bureau of
Financial Institutions of the Commonwealth of Virginia, Richmond, Virginia.
B.M.J. Financial Corporation
Bordentown, New Jersey
The Federal Reserve Board announced on January 8,
1992, the execution of two Written Agreements involving the Federal Reserve Bank of Philadelphia and
B.M.J. Financial Corporation, Bordentown, New Jersey, a bank holding company, and its subsidiary bank,
the Bank of Mid-Jersey, Bordentown, New Jersey.
Hibernia Corporation
New Orleans, Louisiana
The Federal Reserve Board announced on January 3,
1992, the execution of a Written Agreement between
the Federal Reserve Bank of Atlanta and Hibernia
Corporation, New Orleans, Louisiana.
Society for Savings Bancorp, Inc.
Hartford, Connecticut
The Federal Reserve Board announced on January 30,
1992, the execution of a Written Agreement between
the Federal Reserve Bank of Boston and Society for
Savings Bancorp, Inc., Hartford, Connecticut.
Val Cor Bancorporation, Inc.
Cortez, Colorado
The Federal Reserve Board announced on January 6,
1992, the execution of a Written Agreement between
the Federal Reserve Bank of Kansas City and Val Cor
Bancorporation, Inc., Cortez, Colorado.
West Coast Bank
Sarasota, Florida
The Federal Reserve Board announced on January 3,
1992, the execution of a Written Agreement among
the Federal Reserve Bank of Atlanta, the State
Comptroller and Banking Commissioner of the State
of Florida, Tallahassee, Florida, and the West Coast
Bank, Sarasota, Florida.
56
Financial and Business Statistics
WEEKLY REPORTING COMMERCIAL BANKS
CONTENTS
Domestic Financial
Statistics
Assets and liabilities
A20 All reporting banks
A22 Branches and agencies of foreign banks
MONEY STOCK AND BANK CREDIT
A4
A5
A6
A7
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds—Large member banks
FINANCIAL MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
POLICY INSTRUMENTS
A8 Federal Reserve Bank interest rates
A9 Reserve requirements of depository institutions
A10 Federal Reserve open market transactions
FEDERAL RESERVE BANKS
A l l Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings
FEDERAL FINANCE
A26
A27
A28
A28
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types
and ownership
A29 U.S. government securities
dealers—Transactions
A30 U.S. government securities dealers—Positions
and financing
A31 Federal and federally sponsored credit
agencies—Debt outstanding
MONETARY AND CREDIT AGGREGATES
A13 Aggregate reserves of depository institutions
and monetary base
A14 Money stock, liquid assets, and debt measures
A16 Bank debits and deposit turnover
A17 Loans and securities—All commercial banks
COMMERCIAL BANKING INSTITUTIONS
A18 Major nondeposit funds
A19 Assets and liabilities, last-Wednesday-of-month
series
SECURITIES MARKETS AND
CORPORATE FINANCE
A32 New security issues—State and local
governments and corporations
A33 Open-end investment companies—Net sales
and asset position
A3 3 Corporate profits and their distribution
A33 Total nonfarm business expenditures on new
plant and equipment
A34 Domestic finance companies—Assets and
liabilities and business credit
57
Federal Reserve Bulletin • March 1992
Domestic Financial
Statistics—Continued
REAL ESTATE
A55 Foreign branches of U.S. banks—Balance
sheet data
A57 Selected U.S. liabilities to foreign official
institutions
A3 5 Mortgage markets
A36 Mortgage debt outstanding
REPORTED BY BANKS
IN THE UNITED STATES
CONSUMER INSTALLMENT CREDIT
A37 Total outstanding and net change
A3 8 Terms
FLOW OF FUNDS
A57
A58
A60
A61
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches
A39 Funds raised in U.S. credit markets
A41 Direct and indirect sources of funds to credit
markets
A42 Summary of credit market debt outstanding
A43 Summary of credit market claims, by holder
REPORTED BYNONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES
Domestic Nonfinancial
A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
Statistics
SELECTED MEASURES
SECURITIES HOLDINGS AND TRANSACTIONS
A44 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross domestic product and income
A52 Personal income and saving
International
Statistics
SUMMARY STATISTICS
A53
A54
A54
A54
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and
notes—Foreign transactions
INTEREST AND EXCHANGE RATES
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular Presentation,
Statistical Releases, and Special
Tables
SPECIAL TABLE
A70 Terms of lending at commmercial banks,
November 1991
A3
Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
c
e
p
r
*
0
ATS
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
G-10
GNMA
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading
when about half of the figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
Calculated to be zero
Cell not applicable
Automatic transfer service
Certificate of deposit
Collateralized mortgage obligation
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Federal Savings and Loan Insurance Corporation
Group of Seven
Group of Ten
Government National Mortgage Association
GNP
HUD
IMF
IO
IPCs
IRA
MMDA
n.a.
n.e.c.
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SAIF
SCO
SDR
SMSA
VA
Gross national product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Not available
Not elsewhere classified
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Repurchase agreement
Resolution Trust Corporation
Savings Association Insurance Fund
Securitized credit obligation
Special drawing right
Standard metropolitan statistical area
Veterans Administration
GENERAL INFORMATION
In some of the tables, details do not add to totals because of
rounding.
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of funds figures also
include not fully guaranteed issues) as well as direct obligations of the Treasury. "State and local government" also includes municipalities, special districts, and other political
subdivisions.
A4
1.10
Domestic Financial Statistics • March 1992
R E S E R V E S , M O N E Y STOCK, LIQUID ASSETS, A N D D E B T M E A S U R E S
Percent annual rate of change, seasonally adjusted 1
1991
1991
Monetary and credit aggregate
QL
Reserves of depository
1 Total
2 Required
3 Nonborrowed
4 Monetary base 3
Q2
Q3
Q4
Aug.
Sept.
Oct. r
Nov.
Dec.
2
institutions
9.1
4.5
8.9
14.4
3.0
8.9
3.4
3.8
7.4
7.9
4.3
5.8
15.3
15.5
19.3
8.3
11.3
7.1
7.7
9.1
6.2
10.1
9.1
6.4
15.7
12.3
25.0
9.9
20.3
25.3
24.0
6.5
24.1
22.5
22.2
9.3
5.9
3.4
4.0
3.3
4.8
7.3
4.7
1.8
-2.4
3.9
6.8
.If
-2.<y
,6r
5.2
10.9
2.6
1.4
n.a.
5.6
9.2
,6r
-.2r
-1.6r
5.8
5.4
.6r
— 1.3r
-2.r
6.0
12.6
3.0
2.0
2.5
6.1
15.3r
5.1r
3.5r
6.8
5.1
8.6
2.5
2.4
n.a.
n.a.
2.6
6.4
3.8r
- 10.6r
-2.2r
-11.0 r
-.2
-4.1
-2.4r
-3.8r
-l.<Y
-10.3
-.2
-2.4
1.6 r
-3.9r
.3
2.4
7.5
8.8
ll^
16.6
-1.7
.2
12.9
.8
-8.4r
13.0
-6.7
-13.7
10.4
7.8r
-7.9
9.1
-,6r
-14.4 r
14.7
-7.5
-18.6
14.5
- 14.8r
-13.3 r
13.8
-14.6
-5.1
-.7
-9.9
-31.9
18.4
-14.7
-35.1
9.7
-23.2 r
-40.6 r
9.2
-18.4
-39.2
2.6
-27.3 r
-47.9 r
5.6
-15.5 r
-40.9 r
8.8
-20.3
-46.3
13.6
-16.0 r
-35.8
14.1
-17.2
-24.1
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
18.5
49.9
7.8r
23.0
-7.5r
.7
-6.8
43.7
-18.8 r
25.4
-9.7r
37.3
-3.7
49.0
-5.8r
43.2
.0
45.5
Debt components4
20 Federal
21 Nonfederal
12.0
2.6
5.6
3.4
13.6
2.4
13.1
3.1
15.8
2.5
13.8
3.4
14.3
3.3
11.4
2.9
Concepts of money, liquid assets, and debt4
5 Ml
6 M2
7 M3
8 L
9 Debt
Nontrqnsaction
10 In M2 y
11 In M3 only 6
components
Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time
Large time •
Thrift institutions
15 Savings, including MMDAs
16 Small time
17 Large time 8,
12
13
14
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with regulatory changes in reserve requirements. (See also table 1.20.)
3. Seasonally adjusted, break-adjusted monetary base consists of (1) seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions, less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and
automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, (2) savings and small
time deposits (time deposits—including retail repurchase agreements (RPs)—in
amounts of less than $100,000), and (3) balances in both taxable and tax-exempt
general-purpose and broker-dealer money market funds. Excludes individual
retirement accounts (IRAs) and Keogh balances at depository institutions and
money market funds. Also excludes all balances held by U.S. commercial banks,
money market funds (general purpose and broker-dealer), foreign governments
and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this
result to seasonally adjusted Ml.
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) term Eurodollars held
by U.S. residents at foreign branches of U.S. banks worldwide and at all banking
n.a.
n.a.
offices in the United Kingdom and Canada, and (3) balances in both taxable and
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding creditmarket debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial
sectors are monthly averages, derived by averaging adjacent month-end levels.
Growth rates for debt reflect adjustments for discontinuities over time in the levels
of debt presented in other tables.
5. Sum of (1) overnight RPs and Eurodollars, (2) money market fund balances
(general purpose and broker-dealer), (3) MMDAs, and (4) savings and small time
deposits.
6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S.
residents, and (4) money market fund balances (institution-only), less (5) a
consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market funds. This sum is
seasonally adjusted as a whole.
7. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRA and Keogh account balances at commercial banks and
thrift institutions are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market
funds, depository institutions, and foreign banks and official institutions.
Money Stock and Bank Credit
1.11
R E S E R V E S OF DEPOSITORY INSTITUTIONS A N D RESERVE B A N K CREDIT
A5
1
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1991
1991
Factor
Nov.13
Nov. 20
Nov. 27
Dec. 4
Dec. 11
Dec. 18
Dec. 25
312,013
302,351
299,754
300,893
306,895
309,277
306,457
314,947
266,743
4,993
260,562
2,720
262,465
0
262,310
1,350
265,579
1,713
268,379
1,228
266,780
0
266,439
7,754
6,130
15
0
6,081
144
0
6,140
44
0
6,140
0
0
6,118
21
0
6,090
9
0
6,090
18
0
6,090
0
0
6,090
273
0
38
210
9
691
31,926
18
86
1
635
31,276
84
39
1
845
33,084
10
92
3
490
32,290
14
91
1
620
30,423
21
77
2
633
30,362
33
46
1
1,215
32,210
95
43
0
797
32,629
12
42
1
765
32,767
137
39
1
730
33,483
11,061
10,018
20,914
11,059
10,018
20,965
11,058
10,018
21,001
11,059
10,018
20,954
11,059
10,018
20,968
11,059
10,018
20,982
11,058
10,018
20,982
11,058
10,018
20,991
11,058
10,018
21,000
11,058
10,018
21,008
295,745
617
299,098
633
304,649
632
299,032
632
299,288
633
299,681
637
302,181
635
303,277
633
303,668
630
305,668
632
5,907
222
5,731
209
7,816
284
5,832
178
5,596
189
5,281
205
5,921
302
5,191
204
5,838
217
9,723
295
3,456
267
3,456
220
4,140
268
3,762
208
3,760
228
3,665
219
4,031
221
3,926
213
4,372
223
4,249
214
Oct.
Nov.
Dec.
1 Reserve Bank credit outstanding
U.S. government securities
Bought outright-system account
2
3
Held under repurchase agreements . . .
Federal agency obligations
Bought outright
4
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
295,971
300,929
256,524
401
261,764
1,004
6,148
23
0
12 Gold stock
13 Special drawing rights certificate account .
14 Treasury currency outstanding
SUPPLYING RESERVE F U N D S
ABSORBING RESERVE F U N D S
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 3
8,692
8,580
9,204
8,433
8,432
8,635
9,927
9,960
8,709
8,849
23,058
24,785
27,098
26,304
23,671
24,630
25,736
27,939
24,875
27,403
Dec. 18
Dec. 25
End-of-month figures
Wednesday figures
1991
1991
Oct.
Nov.
Dec.
Nov. 13
Nov. 20
Nov. 27
Dec. 4
Dec. 11
SUPPLYING RESERVE F U N D S
1 Reserve Bank credit outstanding
U.S. government securities
2
Bought outright-system account
3
Held under repurchase agreements . . .
Federal agency obligations
Bought outright
4
5
Held under repurchase agreements . . .
6
Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10
Float
11 Other Federal Reserve assets
306,804
304,408
323,906
313,077
298,415
301,410
307,518
310,768
308,118
317,319
258,961
8,714
265,212
0
266,486
15,345
263,015
9,100
261,324
0
262,928
1,627
266,988
807
269,684
750
268,084
0
265,932
10,002
6,140
19
0
6,090
0
0
6,045
553
0
6,140
108
0
6,140
0
0
6,090
5
0
6,090
10
0
6,090
0
0
6,090
0
0
6,090
400
0
30
123
0
604
32,212
59
45
1
660
32,341
194
23
1
731
34,529
24
97
0
1,721
32,872
13
83
1
659
30,195
25
64
2
453
30,217
7
40
2
1,083
32,491
613
44
0
841
32,747
14
45
2
1,144
32,740
153
28
1
975
33,738
12 Gold stock
13 Special drawing rights certificate account .
14 Treasury currency outstanding
11,059
10,018
20,940
11,058
10,018
20,996
11,059
10,018
21,017
11,059
10,018
20,954
11,058
10,018
20,968
11,058
10,018
20,982
11,058
10,018
20,982
11,058
10,018
20,991
11,058
10,018
21,000
11,058
10,018
21,008
296,522
631
301,830
636
307,759
636
299,628
633
299,303
637
301,424
636
303,166
633
303,504
630
304,446
631
306,619
634
18,111
223
6,317
346
17,697
968
4,278
191
5,377
185
5,104
301
3,430
203
4,269
180
7,494
235
9,834
268
3,504
213
4,033
221
4,118
1,706
3,762
213
3,760
242
3,665
208
4,031
208
3,926
227
4,372
219
4,249
200
8,354
10,156
8,113
8,439
8,237
8,519
9,949
8,577
8,391
8,961
21,264
22,942
25,004
37,964
22,748
23,613
27,957
31,522
24,405
28,639
ABSORBING RESERVE F U N D S
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18
Foreign
19 Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 3
1. For amounts of cash held as reserves, see table 1.12. Components may not
sum to totals because of rounding.
2. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched sale-purchase transactions.
3. Excludes required clearing balances and adjustments to compensate for
float,
A6
1.12
Domestic Financial Statistics • March 1992
R E S E R V E S A N D BORROWINGS
Depository Institutions 1
Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification
1
2
3
4
5
6
7
8
9
10
2
Reserve balances with Reserve Banks
Total vault cash
Applied vault cash 4
Surplus vault cash
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings
Extended credit 9
...
1989
1990
1991
1991
Dec.
Dec.
Dec.
June
July
Aug.
Sept.
Oct.
Nov r
Dec.
35,436
29,822
27,374
2,448
62,810
61,887
923
265
84
20
30,237
31,777
28,884
2,893
59,120
57,456
1,664
326
76
23
26,660
32,513
28,872
3,641
.55,532
54,551
981
192
38
1
23,685
30,524
26,722
3,801
50,407
49,399
1,008
340
222
8
23,271
31,322
27,389
3,933
50,660
49,754
906
607
317
46
22,810
31,779
27,798
3,981
50,607
49,521
1,086
764
331
300
23,447
31,549
27,680
3,869
51,127
50,198
929
645
287
302
23,197
32,305
28,386
3,919
51,584
50,501
1,083
261
211
12
25,004
31,718
28,053
3,664
53,057
52,165
892
108
86
1
26,660
32,513
28,872
3,641
55,532
54,551
981
192
38
1
Biweekly averages of daily figures for weeks ending
1991
1 Reserve balances with Reserve Banks 2
2 Total vault cash 3
3 Applied vault cash 4 ,
4
Surplus vault cash
5 Total reserves 6
6
Required reserves
7
Excess reserve balances at Reserve Banks 7 . . .
8 Total borrowings at Reserve Banks
9
Seasonal borrowings
10
Extended credit 9
Sept. 4
Sept. 18
Oct. 2
Oct. 16
Oct. 30
Nov. 13
Nov. 27
Dec. l l
23,077
31,137
27,254
3,883
50,331
49,058
1,273
795
320
406
24,771
31,015
27,408
3,608
52,179
51,447
732
828
269
496
22,024
32,310
28,141
4,169
50,165
49,122
1,044
383
296
41
23,418
32,333
28,506
3,827
51,924
50,908
1,016
290
228
7
22,980
32,382r
28,377
4,005r
51,357
50,191
1,167
225
191
14
25,494
30,842r
27,326
3,516r
52,820
51,907
913
114
98
2
24,155
32,665r
28,825
3,841r
52,979
52,045
934
103
84
2
26,839
31,093
27,607
3,486
54,446
53,842
605
110
45
1
1. Data in this table also appear in the Board's H.3 (502) weekly statistical
release. For ordering address, see inside front cover. Components may not sum to
totals because of rounding.
2. Excludes required clearing balances and adjustments to compensate for float
and includes other off-balance-sheet " a s - o f ' adjustments.
3. Total "lagged" vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash
can be used to satisfy reserve requirements. Under contemporaneous reserve
requirements, maintenance periods end thirty days after the lagged computation
periods during which the balances are held.
4. All vault cash held during the lagged computation period by "bound"
institutions (that is, those whose required reserves exceed their vault cash) plus
the amount of vault cash applied during the maintenance period by "nonbound"
1992
r
Dec. 25
Jan. 8
26,133
33,284
29,554
3,730
55,687
54,484
1,203
116
41
1
27,561
33,318
29,598
3,720
57,159
56,008
1,151
521
22
1
institutions (that is, those whose vault cash exceeds their required reserves) to
satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Also includes adjustment credit.
9. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
Money Stock and Bank Credit
1.13
S E L E C T E D BORROWINGS IN IMMEDIATELY A V A I L A B L E F U N D S
A7
Large Banks 1
Millions of dollars, averages of daily figures
1991, week ending Monday
Source and maturity
1
2
3
4
Federal funds purchased, repurchase agreements, and
other selected borrowings
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
official institutions, and U.S. government agencies
For one day or under continuing contract
For all other maturities
Aug. 5
Aug. 12
Aug. 19
Aug. 26
Sept. 2
Sept. 9
Sept. 16
Sept. 23
Sept. 30
77,865
15,555
79,777
15,725
80,208
15,409
77,400
15,120
76,856
15,422
85,977
14,848
80,342
14,662
78,937
14,629
77,654
15,258
21,671
20,685
21,330
20,157
20,696
19,376
21,831
18,816
22,235
19,213
23,394
19,220
20,678
19,266
23,348
18,766
22,030
19,355
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
8,490
17,572
9,922
17,469
11,054
16,684
11,188
17,696
9,722
17,880
10,979
16.118
10,912
16,614
10,261
16,735
9,336
16,165
25,495
11,076
24,809
11,485
26,902
11,663
26,461
11,681
24,245
11,778
24,922
11,396
25,170
11,181
24,200
11,583
25,473
12,004
MEMO: Federal funds loans and resale agreements in
immediately available funds in maturities of one day
or under continuing contract
9 To commercial banks in the United States
10 To all other specified customers 2
45,167
21,966
42,903
19,141
44,888
19,620
40,709
18,969
40,900
19,566
44,240
19,649
43,633
20,070
46,932
21,298
47,819
18,349
5
6
7
8
1. Banks with assets of $4 billion or more as of Dec. 31, 1988.
Data in this table also appear in the Board's H.5 (507) weekly statistical release.
For ordering address, see inside front cover.
2. Brokers and nonbank dealers in securities, other depository institutions,
foreign banks and official institutions, and U.S. government agencies.
A8
1.14
DomesticNonfinancialStatistics • March 1992
F E D E R A L R E S E R V E B A N K INTEREST RATES
Percent per year
Current and previous levels
Seasonal credit 2
Adjustment credit'
Federal Reserve
Bank
On
1/29/92
Effective date
On
1/29/92
Previous rate
Effective date
Boston
New York . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
12/20/91
12/20/91
12/20/91
12/20/91
12/20/91
12/20/91
12/20/91
1/23/92
1/23/92
1/23/92
1/23/92
1/23/92
1/23/92
1/23/92
St. Louis
Minneapolis..
Kansas C i t y . .
Dallas
San Francisco
12/24/91
12/23/91
12/20/91
12/20/91
12/20/91
1/23/92
1/23/92
1/23/92
1/23/92
1/23/92
4.5
Extended credit
Previous rate
On
1/29/92
4.50
4.15
4.50
Effective date
Previous rate
1/23/92
1/23/92
1/23/92
1/23/92
1/23/92
1/23/92
1/23/92
4.65
1/23/92
1/23/92
1/23/92
1/23/92
1/23/92
Range of rates for adjustment credit in recent years 4
Effective date
In effect Dec. 31, 1977.
1978-—Jan.
May
July
Aug.
Sept.
Oct.
Nov.
9
20
11
17
3
10
71
7?
16
70
1
3
1979-- J u l y 70
Aug. 17
70
Sept. 19
71
Oct. 8 .
10
1980-- F e b . 15
19
May 79
30
June 13
16
79
July 78
Sept. 76
Nov. 17
Dec. 5
..
..
..
. .
. .
..
..
..
Range (or
level)—
All F.R.
Banks
6
F.R.
Bank
of
N.Y.
6
6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5
6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5
10
10-10.5
10.5
10.5-11
11
11-12
12
10
10.5
10.5
11
11
12
12
12-13
13
12-13
12
11-12
11
10
10-11
11
12
12-13
13
13
13
12
11
11
10
10
11
12
13
Effective
1981-—May
5
Nov.
7
6
4
Dec.
F.R.
Bank
of
N.Y.
13-14
14
13-14
13
14
14
13
13
12
12
11.5-12
11.5
11-11.5
11
10.5
10-10.5
10
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5
11.5
11.5
11
11
10.5
10
10
9.5
9.5
9
9
9
8.5
8.5
1984-—Apr.
9
n
Nov. 71
26
Dec. 74
8.5-9
9
8.5-9
8.5
9
9
8.5
8.5
—May 70
1985-—May
74
7.5-8
7.5
7.5
7.5
1982--- J u l y
Aug.
Oct.
Nov.
Dec.
70
73
7
3
16
27
30
1?
13
7?
26
14
IS
17
1. Adjustment credit is available on a short-term basis to help depository
institutions meet temporary needs for funds that cannot be met through reasonable alternative sources. The highest rate established for loans to depository
institutions may be charged on adjustment-credit loans of unusual size that result
from a major operating problem at the borrower's facility.
2. Seasonal credit is available to help relatively small depository institutions
meet regular seasonal needs for funds that arise from a clear pattern of intrayearly movements in their deposits and loans and that cannot be met through
special industry lenders. The discount rate on seasonal credit takes into account
rates on market sources of funds and ordinarily is reestablished on the first
business day of each two-week reserve maintenance period; however, it is never
less than the discount rate applicable to adjustment credit.
3. Extended credit may be made available to depository institutions when
similar assistance is not reasonably available from other sources, including special
industry lenders. Such credit may be provided when exceptional circumstances
(including sustained deposit drains, impaired access to money market funds, or
sudden deterioration in loan repayment performance) or practices involve only a
particular institution, or to meet the needs of institutions experiencing difficulties
adjusting to changing market conditions over a longer period (particularly at times
of deposit disintermediation). The discount rate applicable to adjustment credit
Range (or
level)—
All F.R.
Banks
Effective date
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1986—Mar. 7
10
Apr. 21
July 11
Aug. 21
22
7-7.5
7
6.5-7
6
5.5-6
5.5
7
7
6.5
6
5.5
5.5
1987—Sept. 4
5.5-6
6
6
6
1988—Aug.
6-6.5
6.5
6.5
6.5
6.5-7
7
7
7
11
9
11
1989—Feb. 24
27
1990—Dec. 19
1991—Feb.
1
4
Apr. 30
May 2
Sept. 13
Sept. 17
Nov. 6
7
Dec. 20
24
In effect Jan. 29, 1992
6.5
6.5
6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5
6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5
3.5
3.5
ordinarily is charged on extended-credit loans outstanding less than thirty days;
however, at the discretion of the Federal Reserve Bank, this time period may be
shortened. Beyond this initial period, a flexible rate somewhat above rates on
market sources of funds is charged. The rate ordinarily is reestablished on the first
business day of each two-week reserve maintenance period, but it is never less
than the discount rate applicable to adjustment credit plus 50 basis points.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual
Statistical Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment-credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. A surcharge of 2 percent was reimposed on Nov. 17, 1980; the surcharge
was subsequently raised to 3 percent on Dec. 5, 1980, and to 4 percent on May 5,
1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2
percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the
surcharge was changed from a calendar quarter to a moving thirteen week period.
The surcharge was eliminated on Nov. 17, 1981.
Policy Instruments
1.15
A9
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Requirements
Type of deposit 2
Net transaction
Percent of
deposits
Effective date
3
12
12/17/91
12/17/91
accounts3
1. Required reserves must be held in the form of deposits with Federal Reserve
Banks or vault cash. Nonmember institutions may maintain reserve balances with
a Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions. For previous reserve requirements, see earlier editions of the AnnuaI
Report or the Federal Reserve Bulletin. Under provisions of the Monetary
Control Act, depository institutions include commercial banks, mutual savings
banks, savings and loan associations, credit unions, agencies and branches of
foreign banks, and Edge corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 17, 1991, the exemption was raised from $3.4
million to $3.6 million. The exemption applies in the following order: (1) net
negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable
deductions); and (2) net other transaction accounts. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement.
3. Transaction accounts include all deposits against which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
three per month for the purpose of making payments to third persons or others.
0
12/27/90
0
12/27/90
However, money market deposit accounts (MMDAs) and similar accounts subject
to the rules that permit no more than six preauthorized, automatic, or other
transfers per month, of which no more than three may be checks, are not
transaction accounts (such accounts are savings deposits).
The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage change in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 17,
1991, for institutions reporting quarterly, and Dec. 24, 1991, for institutions
reporting weekly, the amount was increased from $41.1 million to $42.2 million.
4. For institutions that report weekly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than 1 Vi years was reduced from 3
percent to 1 Vi percent for the maintenance period that began Dec. 13, 1990, and
to zero for the maintenance period that began Dec. 27, 1990. The reserve
requirement on nonpersonal time deposits with an original maturity of 1 Vl 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 Vl years was reduced from 3
percent to zero on Jan. 17, 1991.
5. The reserve requirement on Eurocurrency liabilities was reduced from 3
percent to zero in the same manner and on the same dates as were the reserve
requirement on nonpersonal time deposits with an original maturity of less than
1 Vi years (see note 4).
A10
1.17
DomesticNonfinancialStatistics • March 1992
F E D E R A L R E S E R V E OPEN MARKET TRANSACTIONS 1
Millions of dollars
1991
Type of transaction
1988
1989
1990
May
June
July
Aug.
Sept.
Oct.
Nov.
U . S . TREASURY SECURITIES
Outright transactions (excluding
transactions)
matched
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchanges
Redemptions
8,223
587
241,876
2,200
14,284
12,818
231,211
12,730
24,739
7,291
241,086
4,400
3,411
0
27,548
0
37
0
19,680
0
1,359
0
22,280
0
5,776
0
28,009
0
529
0
19,508
0
2,198
0
25,409
0
3,023
0
24,141
0
5
6
7
8
9
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
2,176
0
23,854
-24,588
0
327
0
28,848
-25,783
500
425
0
25,638
-27,424
0
200
0
5,175
-4,887
0
0
0
0
0
0
625
0
1,478
-3,136
0
340
0
3,425
-2,443
0
200
0
1,131
-2,202
0
0
0
2,002
-2,034
0
178
0
1,655
-2,585
0
10
11
12
13
One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
5,485
800
-17,720
22,515
1,436
490
-25,534
23,250
250
200
-21,770
25,410
0
0
-3,410
4,287
0
0
0
0
0
0
-1,192
2,601
0
0
-3,425
1,993
650
0
-1,131
2,202
0
0
-1,877
1,686
2,133
0
-1,492
2,135
14
1")
16
17
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
1,579
175
-5,946
1,797
287
29
-2,231
1,934
0
100
-2,186
789
0
0
-1,605
400
0
0
0
0
0
0
-286
534
0
0
688
300
0
0
0
0
0
0
-126
347
880
0
-163
300
18
19
20
21
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
1,398
0
-188
275
284
0
-1,086
600
0
0
-1,681
1,226
0
0
-160
200
0
0
0
0
0
0
0
0
0
0
-688
150
0
0
0
0
0
0
0
0
375
0
0
150
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
18,863
1,562
2,200
16,617
13,337
13,230
25,414
7,591
4,400
3,611
0
0
37
0
0
1,984
0
0
6,116
0
0
1,379
0
0
2,198
0
0
6,590
0
0
1,168,484
1,168,142
1,323,480
1,326,542
1,369,052
1,363,434
147,796
147,803
118,903
118,239
120,292
121,803
112,414
110,280
116,266
118,481
137,073
135,281
98,063
97,925
152,613
151,497
129,518
132,688
219,632
202,551
9,241
9,241
9,440
8,478
35,149
36,111
16,847
16,847
40,447
40,447
12,432
3,718
14,165
22,879
15,872
-10,055
24,886
3,618
335
2,532
3,981
3,595
9,121
-2,262
0
0
587
0
0
442
0
0
183
0
0
0
0
0
0
0
0
55
0
0
0
0
5
0
0
0
14
1
0
50
57,259
56,471
38,835
40,411
41,836
40,461
885
885
1,225
748
3,245
3,722
537
537
3,061
3,061
714
695
275
294
35 Net change in federal agency obligations
198
-2,018
1,192
0
477
-532
0
-5
5
-68
36 Total net change in System Open Market
Account
16,070
-12,073
26,078
3,618
812
2,000
3,981
3,590
9,126
-2,330
Matched transactions
25 Gross sales
26 Gross purchases
Repurchase
agreements2
27 Gross purchases
28 Gross sales
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase
agreements2
33 Gross purchases
34 Gross sales
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not sum to
totals because of rounding.
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
Federal Reserve Banks
1.18
FEDERAL RESERVE BANKS
All
Condition and Federal Reserve Note Statements 1
Millions of dollars
Account
Nov. 27
Dec. 4
Wednesday
End of month
1991
1991
Dec. 11
Dec. 18
Dec. 25
Oct. 31
Nov. 29
Dec. 31
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency obligations
7 Bought outright
8 Held under repurchase agreements
9 Total U.S. Treasury securities
11,058
10,018
560
11,058
10,018
549
11,058
10,018
556
11,058
10,018
555
11,058
10,018
545
11,059
10,018
579
11,058
10,018
557
11,059
10,018
528
91
0
0
49
0
0
657
0
0
61
0
0
182
0
0
153
0
0
106
0
0
218
0
0
6,090
5
6090
10
6090
0
6090
0
6090
400
6,140
19
6,090
0
6,045
553
264,555
267,795
270,434
268,084
275,934
267,675
265,213
281,831
10 Bought outright 2
11
Bills
12 Notes
13 Bonds
14 Held under repurchase agreements
262,928
131,693
99,472
31,763
1,627
266,988
133,436
101,220
32,331
807
269,684
135,932
101,420
32,331
750
268,084
134,233
101,520
32,331
0
265,932
132,081
101,520
32,331
10,002
258,961
128,976
98,372
31,613
8,714
265,213
131,661
101,220
32,332
0
266,486
132,635
101,520
32,332
15,345
15 Total loans and securities
270,740
273,943
277,180
274,234
282,606
273,987
271,407
288,647
5,798
973
6,487
976
5,997
976
6,620
980
8,558
981
4,949
965
4,059
976
8,286
987
25,244
4,474
26,742
4,806
26,778
5,028
26,875
5,013
26,990
5,869
25,557
6,243
26,739
4,705
27,626
5,911
328,865
334,579
337,592
335,353
346,625
333,357
329,519
353,061
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 3
19 All other 4
20 Total assets
LIABILITIES
281,638
283,366
283,699
284,632
286,790
276,792
282,027
287,906
22 Total deposits
33,621
36,152
40,369
36,740
43,286
44,061
34,129
49,783
23
24
25
26
28,008
5,104
301
208
32,312
3,430
203
208
35,692
4,269
180
227
28,792
7,494
235
219
32,984
9,834
268
200
25,513
18,111
223
213
27,246
6,317
346
221
29,413
17,697
968
1,706
5,088
2,857
5,112
2,877
4,947
2,880
5,589
2,652
7,589
2,885
4,151
2,912
3,207
2,947
7,259
2,810
323,204
327,508
331,895
329,614
340,549
327,915
322,310
347,758
2,645
2,423
594
2,645
2,423
2,003
2,649
2,423
625
2,651
2,423
665
2,651
2,423
1,002
2,606
2,413
423
2,642
2,423
2,144
2,652
2,652
0
328,865
334,579
337,592
335,353
346,625
333,357
329,519
353,061
253,026
254,721
254,554
253,870
252,553
252,020
254,484
251,209
21 Federal Reserve notes
Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
27 Deferred credit items
28 Other liabilities and accrued dividends
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
34 MEMO:
Marketable
U.S.and
Treasury
securities
held in.
custody
for foreign
international
accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to Bank)
36
LESS: Held by Federal Reserve Bank
37
Federal Reserve notes, net
38
39
40
41
Collateral held against notes, net:
Gold certificate account
Special drawing rights certificate account
Other eligible assets
U.S. Treasury and agency securities
42 Total collateral
371,379
89,742
281,638
371,260
87,893
283,366
370,929
87,230
283,699
369,155
84,523
284,632
367,741
80,952
286,790
368,108
91,316
276,792
371,067
89,040
282,027
366,468
78,562
287,906
11,058
10,018
0
260,562
11,058
10,018
0
262,290
11,058
10,018
0
262,622
11,058
10,018
0
263,556
11,058
10,018
0
265,713
11,059
10,018
0
255,715
11,058
10,018
0
260,951
11,059
10,018
0
266,829
281,638
283,366
283,699
284,632
286,790
276,792
282,027
287,906
1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly
statistical release. For ordering address, see inside front cover. Components may
not sum to totals because of rounding.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within ninety days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
A12
1.19
DomesticNonfinancialStatistics • March 1992
FEDERAL RESERVE BANKS
Maturity Distribution of Loan and Security Holding
1
Millions of dollars
Type and maturity grouping
1 Total loans
2
3
4
Within fifteen days
Sixteen days to ninety days
Ninety-one days to one year
5 Total acceptances
Within fifteen days
Sixteen days to ninety days
Ninety-one days to one year
6
7
8
9 Total U.S. Treasury securities
10
11
12
13
14
15
Within fifteen days 2
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
16 Total Federal agency obligations
17
18
19
20
21
22
Within fifteen days 2
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
End of month
1991
1991
Nov. 27
Dec. 4
Dec. 11
Dec. 18
Dec. 25
Oct. 31
Nov. 29
106
49
657
61
182
153
106
218
84
22
0
18
32
0
626
31
0
54
6
0
177
4
0
72
82
0
84
22
0
217
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
264,555
267,795
270,434
268,084
275,934
258,961
265,212
281,831
12,200
64,151
88,806
61,144
14,089
24,165
13,745
63,020
88,742
63,278
14,469
24,540
14,719
64,329
88,899
63,478
14,469
24,540
14,824
64,365
86,307
63,578
14,469
24,540
16,545
67,654
89,148
63,578
14,469
24,540
6,709
61,051
91,443
61,539
14,042
24,178
5,174
69,572
88,931
62,527
14,469
24,540
21,109
66,759
90,655
64,299
14,469
24,540
6,095
6,100
6,090
6,090
6,490
6,140
6,090
6,597
313
565
1,430
2,608
990
188
40
848
1,445
2,588
990
188
45
923
1,380
2,545
1,008
188
220
748
1,380
2,545
1,008
188
620
748
1,380
2,545
1,008
188
158
759
1,431
2,605
1,000
188
308
565
1,430
2,608
990
188
753
811
1,329
2,508
1,008
188
1. Components may not sum to totals because of rounding.
2. Holdings under repurchase agreements are classified as maturing within
Wednesday
Dec. 31
fifteen days in accordance with the maximum possible maturity of the agreements.
Monetary and Credit Aggregates
1.20
A13
A G G R E G A T E R E S E R V E S OF DEPOSITORY INSTITUTIONS A N D M O N E T A R Y B A S E 1
Billions of dollars, averages of daily figures
1991
Item
1988
Dec.
1989
Dec.
1990
Dec.
1991
Dec.
May
Total reserves 3
Nonborrowed reserves 4
Nonborrowed reserves plus extended credit 5
Required reserves
Monetary base 6
July
Aug.
Sept.
Oct.
Nov.
Dec.
51.15
50.50
50.80
50.22
317.93
51.82
51.56
51.57
50.73
320.55
52.69r
52.59
52.59
51.80
322.29
53.75
53.56
53.56
52.77
324.79
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
1
2
3
4
5
June
47.60
45.88
47.12
46.55
263.46
47.73
47.46
47.48
46.81
274.17
49.10
48.78
48.80
47.44
299.78
53.75
53.56
53.56
52.77
324.79
50.00
49.70
49.79
48.97
311.43
50.35
50.01
50.01
49.34
312.41
50.41
50.89
49.80
50.12
49.85
50.42
49.50
49.80
313.84. 316.23
Not seasonally adjusted
6
7
8
9
10
7
Total reserves
Nonborrowed reserves
Nonborrowed reserves plus extended credit 5
Required reserves 8
Monetary base 9
49.00
47.29
48.53
47.96
267.46
49.18
48.91
48.93
48.26
278.30
50.58
50.25
50.28
48.91
304.04
55.38
55.18
55.19
54.40
329.36
49.00
48.69
48.78
47.97
310.97
50.32
49.98
49.99
49.31
314.00
50.56
49.95
50.00
49.65
316.14
50.49
49.73
50.03
49.41
316.68
50.99
50.35
50.65
50.07
317.28
51.43
51.17
51.18
50.35
319.14
52.89
52.78
52.78
51.99
323.06
55.38
55.18
55.19
54.40
329.36
63.75
62.03
63.27
62.70
283.00
1.05
1.72
62.81
62.54
62.56
61.89
292.55
.92
.27
59.12
58.79
58.82
57.46
313.70
1.66
.33
55.53
55.34
55.34
54.55
333.62
.98
.19
49.06
48.76
48.85
48.03
314.25
1.03
.30
50.41
50.07
50.08
49.40
317.25
1.01
.34
50.66
50.05
50.10
49.75
319.46
.91
.61
50.61
49.84
50.14
49.52
320.07
1.09
.76
51.13
50.48
50.78
50.20
320.70
.93
.65
51.58
53.06
51.32
52.95
52.95
51.33
52.16
50.50
322.71 326.88r
1.08
.89
.11
.26
55.53
55.34
55.34
54.55
333.62
.98
.19
N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 1 0
11
12
13
14
15
16
17
Total reserves"
Nonborrowed reserves
Nonborrowed reserves plus extended credit 5
Required reserves
Monetary base 12
Excess reserves
Borrowings from the Federal Reserve
1. Latest monthly and biweekly figures are available from the Board's H.3 (502)
weekly statistical release. Historical data and estimates of the impact on required
reserves of changes in reserve requirements are available from the Monetary and
Reserves Projections Section, Division of Monetary Affairs, Board of Governors
of the Federal Reserve System, Washington, D.C. 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with
regulatory changes in reserve requirements.
3. Seasonally adjusted, break-adjusted total reserves equal seasonally
adjusted, break-adjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally
adjusted, break-adjusted total reserves (line 1) less total borrowings of depository
institutions from the Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9)
plus excess reserves (line 16).
8. To adjust required reserves for discontinuities that are due to regulatory
changes in reserve requirements, a multiplicative procedure is used to estimate
what required reserves would have been in past periods had current reserve
requirements been in effect. Break-adjusted required reserves include required
reserves against transactions deposits and nonpersonal time and savings deposits
(but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves
(line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3)
(for all quarterly reporters on the "Report of Transaction Accounts, Other
Deposits and Vault Cash" and for all weekly reporters whose vault cash exceeds
their required reserves) the break-adjusted difference between current vault cash
and the amount applied to satisfy current reserve requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with changes in reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to
satisfy reserve requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted,
consists of (1) total reserves (line 11), plus (2) required clearing balances and
adjustments to compensate for float at Federal Reserve Banks, plus (3) the
currency component of the money stock, plus (4) (for all quarterly reporters on
the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current
reserve requirements. Since the introduction of changes in reserve requirements
(CRR), currency and vault cash figures have been measured over the computation
periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
A14
1.21
DomesticNonfinancialStatistics • March 1992
M O N E Y STOCK, L I Q U I D A S S E T S , A N D D E B T M E A S U R E S 1
Billions of dollars, averages of daily figures
1991
Item
1988
Dec.
1989
Dec.
1990
Dec.
1991
Dec.
Sept.
Oct/
Nov.
Dec.
890.3
3,418.5r
4,163.9"
5,009.3
10,910.5
896.7
3,425.5
4,172.4
n.a.
n.a.
Seasonally adjusted
1
2
3
4
5
Measures2
Ml
M2
M3
L
Debt
6
7
8
9
Ml components
Currency
Travelers checks
Demand deposits 5
Other checkable deposits 6
786.4
3,069.9
3,919.1
4,675.9
9,107.6
793.6
3,223.1
4,055.2
4,889.9
9,790.4
825.4
3,327.8
4,111.2
4,966.6
10,432.1
896.7
3,425.5
4,172.4
n.a.
n.a.
870.0
3,395.5r
4,144.8r
4,970.7r
10,809.6
879.1
3,404.0
4,151.8
4,981.1
10,864.4
212.0
7.5
286.3
280.7
222.2
7.4
278.7
285.2
246.4
8.4
276.9
293.8
266.7
8.3
289.1
332.5
262.4
7.8
279.3
320.6r
264.4
7.9
282.6
324.1
265.3
8.1
287.4
329.5
266.7
8.3
289.1
332.5
2,283.5
849.3
2,429.5
832.1
2,502.4
783.4
2,528.9
746.9
2,525.4r
749.3r
2,524.9
747.8
2,528.3r
745.4r
2,528.9
746.9
Commercial banks
12 Savings deposits, including MMDAs
13 Small time deposits 9
14 Large time deposits 10 ' 11
542.2
447.5
368.0
540.7
531.4
401.9
577.7
598.1
386.1
658.9
586.2
374.3
635.8
604.6
386. r
643.6
600.8
380.1
651.4
593.4r
375.9r
658.9
586.2
374.3
Thrift institutions
15 Savings deposits, including MMDAs
16 Small time deposits 9
17 Large time deposits 10
383.5
584.3
174.3
349.5
614.5
161.6
339.0
566.1
121.0
378.2
474.9
82.9
366.9
496.7r
90.7r
369.6
488.3
87.2
373.8
481.8r
84.6r
378.2
474.9
82.9
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
241.1
86.9
313.6
101.9
345.4
125.7
352.3
167.1
355. r
149.3
354.0
155.4
352.3r
161.0
352.3
167.1
2,114.2
6,993.4
2,268.1
7,522.3
2,534.3
7,897.8
2,770.8
8,093.5
2,797.2
8,113.3
Nontransaction
10 In M2
11 In M38
components
Debt components
20 Federal debt
21 Nonfederal debt
n.a.
n.a.
2,738.1
8,071.5
n.a.
n.a.
Not seasonally adjusted
2
22
23
24
25
26
Measures
Ml
M2
M3
L
Debt
27
28
29
30
Ml components
Currency
Travelers checks
Demand deposits 5
Other checkable deposits 6
804.2
3,083.3
3,931.5
4,691.8
9,093.2
811.9
3,236.6
4,067.0
4,907.4
9,775.9
844.3
3,341.9
4,123.3
4,985.2
10,419.3
916.7
3,440.9
4,185.7
n.a.
n.a.
867.0
3,390.5r
4,142.5r
4,968.8r
10,761.4
875.0
3,400.9
4,148.3
4,976.4
10,825.7
893.4r
3,422.5r
4,170.8r
5,014.0
10,882.5
916.7
3,440.9
4,185.7
n.a.
n.a.
214.8
6.9
298.9
283.5
225.3
6.9
291.5
288.2
249.6
7.8
289.9
297.0
270.0
7.7
302.8
336.2
261.8
8.3
278.5
318.4
263.2
8.0
283.6
320.3
266.3
7.7
290.9
328.5
270.0
7.7
302.8
336.2
2,279.1
848.2
2,424.7
830.4
2,497.6
781.4
2,524.1
744.9
2,523.5r
752.0r
2,525.9
747.5
2,529.l r
748.3r
2,524.1
744.9
Commercial banks
33 Savings deposits, including MMDAs
34 Small time deposits 9
35 Large time deposits 10, 11
543.8
446.0
366.8
542.9
529.2
400.4
579.3
596.1
386.1
660.8
584.1
374.3
634.2
604.4
387.9r
643.2
600.7
382.5
653.8
592.2r
378.4r
660.8
584.1
374.3
Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits 9
38 Large time deposits 10
381.5
583.8
175.2
347.9
613.8
162.6
338.3
564.1
121.1
377.5
473.2
82.9
366.1
496.6r
91.2r
369.8
488.2
87.8
374.4
480.8r
85.2r
377.5
473.2
82.9
Money market mutual funds
39 General purpose and broker-dealer
40 Institution-only
240.7
87.6
313.5
102.8
345.5
127.0
352.5
168.9
355.l r
145.9
353.8
152.4
354. r
161.6
352.5
168.9
Repurchase agreements and eurodollars
41 Overnight
42 Term
83.4
227.7
77.3
179.8
74.3
160.8
75.9
134.2
67.1
141.9
70.2
140.0
73.8r
138.4r
75.9
134.2
2,111.8
6,981.4
2,265.9
7,509.9
2,532.1
7,887.2
2,722.0
8,039.4
2,756.7
8,069.0
2,789.1
8,093.4
Nontransaction
31 In M2
32 In M3 8
components
Debt components
43 Federal debt
44 Nonfederal debt
For notes see following page.
n.a.
n.a.
n.a.
n.a.
Monetary and Credit Aggregates
A15
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
weekly statistical release. Historical data are available from the Money and
Reserves Projection Section, Division of Monetary Affairs, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions, less cash items in
the process of collection and Federal Reserve float; and (4), other checkable
deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and
automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, (2) money market
deposit accounts (MMDAs), (3) savings and small time deposits (time deposits—
including retail RPs—in amounts of less than $100,000), and (4) balances in both
taxable and tax-exempt general purpose and broker-dealer money market funds.
Excludes individual retirement accounts (IRAs) and Keogh balances at depository
institutions and money market funds. Also excludes all balances held by U.S.
commercial banks, money market funds (general purpose and broker-dealer),
foreign governments and commercial banks, and the U.S. government. Seasonally adjusted M2 is computed by adjusting its non-Mi component as a whole and
then adding this result to seasonally adjusted Ml.
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) term Eurodollars held
by U.S. residents at foreign branches of U.S. banks worldwide and at all banking
offices in the United Kingdom and Canada, and (3) balances in both taxable and
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Debt data are based on monthly
averages. This sum is seasonally adjusted as a whole.
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those due to depository institutions, the U.S. government, and foreign banks
and official institutions, less cash items in the process of collection and Federal
Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions,
credit union share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund
balances (general purpose and broker-dealer), (3) MMDAs, and (4) savings and
small time deposits.
8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S.
residents, and (4) money market fund balances (institution-only), less a consolidation adjustment that represents the estimated amount of overnight RPs and
Eurodollars held by institution-only money market funds.
9. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRAs and Keogh accounts at commercial banks and thrift
institutions are subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market
funds, depository institutions, and foreign banks and official institutions.
A16
1.22
Domestic Financial Statistics • March 1992
B A N K DEBITS A N D DEPOSIT TURNOVER 1
Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates
1991
May
June
July
Aug.
Sept. r
Oct.
Seasonally adjusted
DEBITS TO
3
Demand deposits
1 All insured banks
2 Major New York City banks
3 Other banks
4 ATS-NOW accounts 4
5 Savings deposits
219,795.7
115,475.6
104,320.2
256,150.4
129,319.9
126,830.5
277,916.3
131,784.0
146,132.3
295,559.0
148,074.9
147,484.1
266,704.2
133,761.4
132,942.8
284,872.2
139,089.0
145,783.2
275,915.9
136,906.9
139,009.0
283,521.6
142,138.4
141,383.2
290,074.6
144,208.2
145,866.4
2,478.1
537.0
2,910.5
547.5
3,349.6
558.8
3,620.2
548.6
3,460.1
519.9
3,822.8
552.6
3,659.4
516.7
3,679.1
2,904.0
3,759.9
2,733.0
622.9
2,897.2
333.3
735.1
3,421.5
408.3
800.6
3,804.1
467.7
867.0
4,702.8
476.6
768.4
4,141.9
422.3
833.4
4,413.3
469.8
798.0
4,448.0
441.4
823.9
4,490.7
452.5
843.2
4,606.2
466.4
13.2
2.9
15.2
3.0
16.5
2.9
16.4
2.6
15.5
2.4
16.9
2.5
15.9
2.3
15.7
4.7
15.9
4.4
DEPOSIT TURNOVER
Demand deposits3
6 All insured banks
7 Major New York City banks
8 Other banks
9 ATS-NOW accounts 4
10 Savings deposits
Not seasonally adjusted
DEBITS TO
3
Demand deposits
11 All insured banks
12 Major New York City banks
13 Other banks
14 ATS-NOW accounts 4
15 MMDAs 6
16 Savings deposits 5
219,790.4
115,460.7
104,329.7
256,133.2
129,400.1
126,733.0
277,400.0
131,784.7
145,615.3
292,012.3
145,073.9
146,938.4
270,144.7
133,851.7
136,293.0
286,068.7
139,527.4
146,541.3
289,049.5
146,342.8
142,706.6
273,967.0
137,659.5
136,307.5
298,196.7
149,704.6
148,492.0
2,477.3
2,342.7
536.3
2,910.7
2,677.1
546.9
3,342.2
2,923.8
557.9
3,549.9
2,978.6
545.5
3,446.1
2,714.5
516.4
3,729.0
2,868.0
558.2
3,693.2
2,751.7
537.0
3,679.4
n.a
3,110.7
3,770.6
n.a
3,132.6
622.8
2,896.7
333.2
735.4
3,426.2
408.0
799.6
3,810.0
466.3
875.5
4,742.5
485.0
781.7
4,154.4
434.9
831.4
4,334.6
469.8
849.5
4,771.4
460.9
796.0
4,305.8
436.6
864.8
4,775.5
473.7
13.2
6.6
2.9
15.2
7.9
2.9
16.4
8.0
2.9
16.3
7.6
2.6
15.5
6.8
2.4
16.7
7.2
2.5
16.3
6.8
2.4
15.9
n.a
4.9
16.2
n.a
4.9
DEPOSIT TURNOVER
Demand deposits3
17 All insured banks
18 Major New York City banks
19 Other banks
20 ATS-NOW accounts 4
21 MMDAs 6
22 Savings deposits
1. Historical tables containing revised data for earlier periods can be obtained
from the Banking and Money Market Statistics Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
Data in this table also appear on the Board's G.6 (406) monthly statistical
release. For ordering address, see inside front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOWs) and
accounts authorized for automatic transfer to demand deposits (ATSs).
5. Excludes MMDA, ATS, and NOW accounts.
6. Money market deposit accounts.
Commercial Banking Institutions
1.23
L O A N S A N D SECURITIES
A17
All Commercial Banks 1
Billions of dollars, averages of Wednesday figures
1991
Item
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Seasonally adjusted
1 Total loans and securities2
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
5 Commercial and industrial . . . . .
6
Bankers acceptances held . . .
7
Other commercial and
industrial
8
U.S. addressees 4
9
Non-U.S. addressees 4
10 Real estate
11 Individual
12
Security
13 Nonbank financial
institutions
14
Agricultural
15
State and political
subdivisions
16 Foreign banks
17 Foreign official institutions
18
Lease-financing receivables . . . .
19 All other loans
2,721.2
2,735.1
2,751.0
2,751.8
2,750.5
2,763.2
2,763.3
2,761.6
2,768.9
2,784.5
2,799.3
2,810.6
454.1
177.7
2,089.4
644.3
7.7
458.0
177.6
2,099.5
643.9
6.9
471.4
177.6
2,102.0
646.0
6.7
479.2
175.7
2,096.9
640.0
6.8
485.1
173.9
2,091.5
633.2
6.9
495.2
173.1
2,094.8
630.4
6.6
505.3
172.0
2,086.0
626.7
6.6
512.6
169.9
2,079.1
620.5
7.1
522.1
170.8
2,076.0
623.8
6.9
538.2
172.2
2,074.1
623.8
6.5
549.3
172.3
2,077.6
620.2
7.0
560.3
173.3
2,077.0
616.8
7.3
636.6
631.1
5.5
837.3
375.9
43.1
637.0
631.5
5.5
842.6
377.7
43.2
639.3
633.6
5.7
846.3
375.5
38.9
633.2
627.7
5.5
850.9
374.1
39.8
626.4
620.6
5.8
855.1
373.5
39.8
623.8
617.9
5.9
859.5
372.0
38.3
620.0
614.3
5.7
857.0
369.6
41.6
613.4
607.7
5.7
853.9
368.9
42.6
616.8
611.0
5.9
853.4
365.3
43.9
617.3
611.2
6.2
854.2
362.7
43.8
613.2
607.0
6.2
856.3
361.7
46.4
609.5
602.9
6.6
857.0
361.8
47.2
34.8
33.5
se.of
33.5
36.7
34.0
35.9
33.9
36.9
33.6
37.2r
33.0
37.2r
32.5
36.3
32.3
36.1
32.2
36.6
32.1
38.9
32.2
39.3
32.4
33.2
6.0
3.0
32.4
45.8r
33.1
6.1
3.1
32.8
47.5r
32.7
7.2
3.2
33.0
48.5r
32.1
6.8
3.0
32.7
47.6
31.7
6.4
3.0
32.7
45.6r
31.0
6.0
3.0
32.8
51.8
30.5
6.2
3.1
32.0
49.6
30.0
6.3
3.1
31.4
53.8
29.5
6.5
3.2
31.2
50.9
29.3
6.1
3.3
31.1
51.0
28.8
6.7
3.5
30.9
52.0
28.5
6.9
3.3
30.9
52.7
Not seasonally adjusted
20 Total loans and securities2
2,721.0
2,737.3
2,748.4
2,751.5
2,749.7
2,763.8
2,757.2
2,756.6
2,767.3
2,785.8
2,802.6
2,816.5
21 U.S. government securities
22 Other securities
23 Total loans and leases 2
24
Commercial and industrial . . . . .
25
Bankers acceptances held . . .
26
Other commercial and
industrial
27
U.S. addressees 4 .
28
Non-U.S. addressees
29
Real estate
30
Individual
Security
31
32
Nonbank financial
institutions
Agricultural
33
34
State and political
subdivisions
35
Foreign banks
36
Foreign official institutions
37
Lease-financing receivables . . . .
All other loans
38
455.8
177.9
2,087.3
641.1
7.6
463.9
177.3
2,096.1
643.0
7.0
475.8
176.9
2,095.7
648.3
6.7
480.5
175.1
2,095.9
644.7
6.7
485.2
173.8
2,090.6
637.1
6.8
493.7
173.2
2,096.9
632.7
6.7
501.8
171.3
2,084.1
627.0
6.3
510.4
170.1
2,076.0
619.2
6.9
519.6
171.0
2,076.7
620.3
6.9
535.2
172.4
2,078.2
621.5
6.6
549.4
173.0
2,080.2
618.1
7.1
556.9
173.9
2,085.8
616.6
7.5
633.4
628.2
5.3
837.1
380.1
41.0
636.0
630.5
5.5
839.5
377.1
44.7
641.6
636.1
5.4
842.6
372.8
40.2
638.1
632.2
5.9
848.3
371.5
41.3
630.3
624.5
5.9
854.2
371.8
39.0
626.0
620.0
6.0
859.6
369.9
40.5
620.6
614.8
5.8
857.5
367.4
41.3
612.3
606.4
5.9
855.9
368.1
42.0
613.4
607.4
6.0
855.2
367.0
42.9
614.9
608.7
6.2
856.9
363.6
42.9
611.0
604.8
6.1
858.4
362.8
45.2
609.1
602.7
6.4
858.4
366.5
46.8
35.4r
32.8
35.6r
32.6
36.0
32.6
35.6r
32.8
36.5
33.1
37.3r
33.3
37.0r
33.4
36.3
33.3
35.8
33.3
36.5
33.1
39.3
32.6
41.1
32.3
33.8
6.0
3.0
32.8
44.1
33.2
6.0
3.1
32.9
48.3r
32.7
6.8
3.2
32.9
47.7
32.0
6.7
3.0
32.7
47.3r
31.7
6.3
3.0
32.6
45.3r
30.9
6.1
3.0
32.6
51.0r
30.3
6.3
3.1
31.8
49.1r
29.9
6.2
3.1
31.3
50.9
29.5
6.5
3.2
31.2
51.9
29.2
6.4
3.3
31.2
53.7
28.8
6.8
3.5
31.0
53.8r
28.3
7.2
3.3
31.0
54.1
1. Components may not sum to totals because of rounding.
2. Adjusted to exclude loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the fifty states and the District of Columbia.
A18
1.24
DomesticNonfinancialStatistics • March 1992
MAJOR N O N D E P O S I T F U N D S OF COMMERCIAL B A N K S 1
Billions of dollars, monthly averages
Source of funds
Seasonally
adjusted
1 Total nondeposit funds
2 Net balances due to related foreign offices 3
3 Borrowings from other than commercial banks
in United States 4
4
Domestically chartered banks
5
Foreign-related banks
Not seasonally
adjusted
6 Total nondeposit funds
7 Net balances due to related foreign offices 3
8
Domestically chartered banks
9
Foreign-related banks
10 Borrowings from other than commercial banks
in United States 4
11
Domestically chartered banks
12
Federal funds and security RP
borrowings
13
Other
14
Foreign-related banks 6
Apr.
May
June r
July r
Aug/
Sept. r
Oct. r
Nov.
Dec.
265.(f
30.4
265.0 r
31.0
263.0 r
26.3
253.2
19.1
253.3
19.5
249.2
17.7
255.0
20.6
269.3
32.0
272. l r
34.5 r
283.1
41.3
240.6 r
177.3r
63.3
234.6 r
171.7r
62.9
234.0 r
171.7r
62.2
236.7 r
171.2r
65.5
234.1
169.5
64.6
233.8
168.4
65.4
231.5
163.3
68.2
234.5
165.4
69.1
237.3
163.8
73.5
237.6
161.6
76.0
241.8
162.9
78.9
273. l r
33.2
-15.3
48.4
268.6r
24.9
-15.2
40.1
270.2 r
29.9
35.9
265.7r
29.1
-3.6
32.7
271.0 r
28.8r
-.7
29.5
256.2
19.4
-3.7
23.1
250.0
17.1
-7.3
24.4
247.7
17.1
-7.6
24.7
251.0
20.7
-9.2
29.9
266.4
31.5
-7.9
39.4
112.9
35.2 r
-5.0
40.2 r
277.4
43.9
-4.1
48.0
239.91r
ns.o
243.7 r
179.6r
240.4 r
176.0r
236.6 r
172.5r
242.2 r
236.8
170.4
232.9
166.3
230.6
162.9
230.3
162.6
234.8
162.2
237.6
163.9
233.5
159.3
r
r
r
r
r
167.6
Jan.
Feb.
211.T
33.5
265.5 r
24.9
244.2 r
182.6r
61.7
174.8
3.2
61.9
176.8
-6.0
64.1
172.8
3.2
64.3
441.0
439.3
450.6
449.2
25.7
29.4
33.4
39.3
2.8
169.7
m.v
173.2
2.8
2.8
2.8
163.1
3.2
64.1
66.2
66.4
66.6
159.2
3.7
67.8
159.1
3.5
67.7
159.0
3.2
72.7
160.7
3.2
73.7
156.2
3.1
74.2
451.0
450.5
451.3
449.0
453.0
452.6
451.9
451.4
447.6
446.4
447.2
448.2
443.9
445.7
435.2
437.5
432.4
434.9
431.9
431.8
33.8
28.4
21.7
20.4
15.1
19.8
23.2
23.6
20.5
20.7
23.8
17.2
21.9
26.9
31.1
28.7
37.6
28.6
27.0
25.4
MEMO
Gross large time deposits1
15 Seasonally adjusted
16 Not seasonally adjusted
U.S. Treasury demand balances at
banks8
17 Seasonally adjusted
18 Not seasonally adjusted
commercial
1. Commercial banks are nationally and state-chartered banks in the fifty states
and the District of Columbia, agencies and branches of foreign banks, New York
investment companies majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks.
Data in this table also appear in the Board's G.10 (411) release. For ordering
address, see inside front cover.
2. Includes federal funds, repurchase agreements (RPs), and other borrowing
from nonbanks and net balances due to related foreign offices.
3. Reflects net positions of U.S. chartered banks, Edge act corporations, and
U . S . branches and agencies of foreign banks with related foreign offices plus net
positions with own International Banking Facilities (IBFs).
4. Borrowings through any instrument, such as a promissory note or due bill.
given for the purpose of borrowing money for the banking business. This includes
borrowings from Federal Reserve Banks and from foreign banks, term federal
funds, loan RPs, and sales of participations in pooled loans.
5. Figures are based on averages of daily data reported weekly by approximately 120 large banks and quarterly or annual data reported by other banks.
6. Figures are partly averages of daily data and partly averages of Wednesday
data.
7. Time deposits in denominations of $100,000 or more. Estimated averages of
daily data.
8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at commercial banks. Averages of daily data.
Commercial Banking Institutions
1.25
A S S E T S A N D LIABILITIES OF COMMERCIAL B A N K S
A19
Last-Wednesday-of-Month Series 1
Billions of dollars
1991r
Account
Nov.
Dec.
3,461.6
3,499.6
3,529.6
2,970.5
681.9
522.1
159.8
32.6
2,255.9
178.6
2,077.4
618.5
858.8
363.7
236.3
2,984.5
692.0
531.5
160.5
33.2
2,259.2
178.8
2,080.4
617.7
857.9
361.8
243.0
3,002.5
700.5
538.4
162.0
31.2
2,270.8
180.9
2,090.0
618.1
858.3
368.2
245.4
Sept.
Oct.
3,397.3
3,423.0
2,921.0
650.9
492.8
158.1
28.5
2,241.5
167.5
2,074.1
617.8
854.8
368.2
233.3
2,939.3
657.6
498.8
158.8
29.9
2,251.8
172.4
2,079.4
620.0
854.7
366.7
238.0
Feb.
Mar.
Apr.
May
June
July
Aug.
3,388.9
3,380.1
3,368.5
3,410.3
3,409.2
3,438.5
A L L COMMERCIAL BANKING
INSTITUTIONS 2
1 Total assets
7 Loans and securities
3
Investment securities
4
U.S. government securities
5
Other
6
Trading account assets
7
8
Interbank loans
9
Loans excluding interbank
Commercial and industrial
10
11
Real estate
Individual
1?
13
All other
14 Total cash assets
15
Reserves with Federal Reserve Banks . .
16
Cash in vault
17
Cash items in process of collection . . .
18
Demand balances at U.S. depository
institutions
19
Other cash assets
2,924.9
614.0
449.5
164.5
26.9
2,283.9
185.0
2,099.0
645.1
840.1
376.4
237.4
2,910.9
628.3
463.3
165.1
23.5
2,259.1
171.8
2,087.3
648.5
842.5
371.5
224.8
2,907.3
628.5
465.1
163.4
24.9
2,253.8
160.7
2,093.1
643.6
849.2
372.0
228.3
2,921.8
634.1
471.8
162.2
24.3
2,263.4
172.5
2,090.9
635.1
855.4
370.7
229.6
2,936.3
640.8
480.1
160.7
27.5
2,268.0
166.8
2,101.3
632.4
859.3
369.8
239.8
2,937.7
648.7
489.9
158.8
30.2
2,258.8
175.9
2,082.9
624.2
856.0
368.3
234.3
204.5
18.1
29.8
79.9
206.1
25.0
28.9
76.9
201.0
23.1
29.1
74.3
224.3
26.2
31.1
87.2
212.3
29.1
29.8
78.3
214.1
24.8
29.7
87.8
200.1
23.0
31.1
71.7
207.1
25.7
30.1
75.3
210.3
25.6
30.7
75.2
228.1
24.4
29.5
90.3
234.4
29.0
30.7
87.6
27.7
49.0
27.6
47.7
26.4
48.1
30.8
49.0
28.3
46.8
26.9
45.0
27.7
46.5
26.9
49.2
28.8
50.1
32.3
51.5
32.5
54.6
259.6
263.1
260.1
264.2
260.6
286.7
276.2
276.5
280.9
287.1
292.8
21 Total liabilities
3,162.7
3,153.1
3,140.4
3,180.7
3,180.3
3,210.6
3,168.9
3,194.0
3,232.7
3,269.1
3,298.5
77
23
74
2,365.0
594.1
2,382.5
602.8
2,381.9
601.3
2,413.3
617.6
2,406.1
611.2
2,448.8
639.4
2,430.9
612.0
2,430.3
613.7
2,443.7
628.0
2,485.0
669.8
2,490.6
682.3
583.5
1,187.3
515.4
282.3
226.2
594.1
1,185.6
492.3
278.2
227.0
595.4
1,185.3
494.6
263.9
228.1
606.2
1,189.5
499.8
267.6
229.6
610.7
1,184.2
510.4
263.8
228.9
619.9
1,189.5
503.5
258.4
227.9
624.1
1,194.7
480.9
257.1
228.4
628.2
1,188.4
498.5
265.2
229.0
640.0
1,175.7
512.6
276.4
228.9
647.7
1,167.6
498.0
286.0
230.5
653.0
1,155.4
512.2
295.7
231.1
20 Other assets
Transaction accounts
Savings deposits (excluding
75
Time deposits
76
77 Other liabilities
28 Residual (assets less liabilities)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 4
29 Total assets
2,986.3
2,980.4
2,962.4
2,993.7
2,989.4
3,009.9
2,973.4
2,985.2
3,011.6
3,038.2
3,055.6
30
31
37
33
34
3S
36
37
38
39
40
41
4?
43
2,642.3
577.4
429.3
148.2
26.9
2,038.0
150.9
1,887.0
508.4
797.1
63.3
733.8
376.4
205.1
2,635.6
588.6
440.2
148.5
23.5
2,023.5
148.3
1,875.2
506.3
799.7
63.6
736.1
371.5
197.7
2,629.1
592.3
445.5
146.8
24.9
2,011.9
134.2
1,877.7
502.4
804.9
64.4
740.3
372.0
198.4
2,638.0
595.7
449.2
146.5
24.3
2,018.0
144.5
1,873.5
495.0
808.9
65.7
743.0
370.7
198.8
2,645.8
602.7
457.8
144.9
27.5
2,015.6
139.0
1,876.6
491.2
812.1
66.6
743.7
369.8
203.6
2,653.4
611.0
467.9
143.0
30.2
2,012.3
150.4
1,861.8
482.6
808.2
67.0
741.2
368.3
202.6
2,637.8
612.1
470.2
141.9
28.5
1,997.1
146.4
1,850.7
475.3
806.9
67.6
739.4
368.2
200.2
2,645.4
618.1
475.6
142.5
29.9
1,997.4
148.0
1,849.3
472.6
806.9
68.7
738.2
366.7
203.1
2,660.9
636.2
492.9
143.3
32.6
1,992.1
149.2
1,842.9
470.7
810.3
69.3
741.1
363.7
198.1
2,674.2
643.2
499.6
143.6
33.2
1,997.8
156.0
1,841.8
467.9
809.5
69.6
739.9
361.8
202.6
2,681.2
648.6
504.6
144.0
31.2
2,001.4
155.1
1,846.3
463.0
809.8
70.3
739.5
368.2
205.4
172.7
17.0
29.8
78.2
177.0
24.0
28.8
74.9
171.6
21.9
29.1
72.6
193.6
25.8
31.1
85.5
184.3
28.3
29.8
76.2
187.6
23.9
29.7
86.1
172.3
22.1
31.0
70.1
177.0
24.9
30.1
73.8
179.7
25.0
30.6
73.4
197.8
23.9
29.5
88.1
202.2
28.5
30.7
85.5
25.8
21.9
25.8
23.4
24.8
23.2
28.8
22.4
26.5
23.6
25.2
22.8
25.9
23.2
24.9
23.4
27.0
23.8
30.3
26.0
30.4
27.2
44
45
46
47
48
49
Investment securities
U.S. government securities
Other
Trading account assets
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Revolving home equity
Other real estate
All other
Reserves with Federal Reserve Banks.
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets
171.3
167.9
161.6
162.1
159.3
168.9
163.4
162.9
170.9
166.2
172.1
51 Total liabilities
2,763.7
2,757.0
2,737.8
2,767.7
2,764.1
2,785.7
2,748.6
2,759.8
2,786.3
2,811.3
2,828.1
57
53
54
2,255.2
583.8
2,266.2
592.2
2,258.8
591.4
2,280.8
607.5
2,271.3
600.9
2,308.6
629.3
2,284.9
602.1
2,282.0
604.0
2,296.5
618.1
2,336.3
659.2
2,338.1
671.4
580.2
1,091.2
371.8
136.8
222.6
590.6
1,083.4
354.9
136.0
223.4
591.9
1,075.6
346.5
132.6
224.5
602.5
1,070.8
355.1
131.9
226.0
607.1
1,063.4
364.4
128.4
225.3
616.2
1,063.1
352.2
124.9
224.2
620.4
1,062.5
338.8
125.0
224.8
624.5
1,053.5
355.6
122.3
225.4
636.2
1,042.2
359.9
129.9
225.3
643.8
1,033.4
343.3
131.7
226.9
649.0
1,017.7
353.1
136.9
227.5
50 Other assets
55
56
57
58
Transaction accounts
Savings deposits (excluding
checkable)
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities) 3
1. Back data are available from the Banking and Monetary Statistics Section,
Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
Data in this table also appear in the Board's H.8 (510) weekly statistical release.
Data are partly estimated. They include all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries. Components may not sum
to totals because of rounding.
2. Includes insured domestically chartered commercial banks, agencies and
branches of foreign banks, Edge act and agreement corporations, and New York
State foreign investment corporations. Data are estimates for the last Wednesday
of the month based on a sample of weekly-reporting foreign-related institutions
and quarter-end condition reports.
3. This balancing item is not intended as a measure of equity capital for use in
capital adequacy analysis.
4. Includes all member banks and insured nonmember banks. Loans and
securities data are estimates for the last Wednesday of the month based on a
sample of weekly-reporting banks and quarter-end condition reports.
A20
1.26
DomesticNonfinancialStatistics • March 1992
A S S E T S A N D LIABILITIES OF LARGE WEEKLY-REPORTING COMMERCIAL B A N K S 1
Millions of dollars, Wednesday figures
1991
Account
Oct. 30
Nov. 6
Nov. 13
Nov. 20
Nov. 27
102,694
219,603r
18,924
200,679r1
79,007
101,196
221,741r
21,246
200,496r
77,898r
127,512
223,44lr
21,461
201,980r
77,75l r
107,506
225,472r
22,663
202,809r
78,391r
114,730
223,321r
20,094
203,227r
77,635r
115,258
226,906
21,945
204,962
77,597
112,422
225,142
21,041
204,101
77,406
110,433
224,460
19,867
204,593
78,084
120,462
221,687
18,486
203,201
78,175
25,998r
50,975r
44,699r
56,413r
l,328r
55,086
23,630
2,988r
20,642r
31,456
12,368r
26,301r
51,593rr
44,705
56,097
1,267
54,830
23,497
3,039r
20,458r
31,333
11,476
26,872r
52,328r
45,030r
55,935r
l,335r
54,599
23,217
2,988r
20,229"
31,382
ll,844 r
26,000"
53,686r
44,73 l r
55,81l rr
l,309
54,502
22,977
2,958r
20,019"
31,525
12,217r
25,904r
54,741r
44,947r
56,362r
l,568r
54,795
23,033
3,05 l r
19,982r
31,762
11,546r
25,534
55,213
46,618
55,699
1,330
54,368
22,724
3,041
19,683
31,645
11,688
25,437
54,665
46,593
55,455
1,326
54,130
22,637
3,011
19,626
31,492
11,535
25,671
54,168
46,670
55,646
1,872
53,774
22,517
2,980
19,536
31,257
11,212
25,284
53,136
46,606
56,221
1,836
54,384
22,667
3,112
19,555
31,717
10,879
79,855
82,502
83,649
80,930
82,619
52,732r
56,5iff
55,329
58,156
60,326
24,151r
20,108
20,191
19,791
21,962r
4,418
4,155
3,533
4,047
4,128
1,002,949 1,003,238 1,006,363 1,000,754 1,000,915
295,409r
296,090"
295,425r
295,162r
294,286r
1,741
2,247
1,715
2,228
2,272
293,694r
294,349r
293,197r
292,916r
292,014r
291,564r
292,105r
292,896r
291,832r
290,705r
1,589
1,453
1,365
1,352
1,309
82,829
56,286
21,819
4,724
998,028
292,628
2,218
290,410
289,090
1,320
84,023
56,608
22,636
4,778
996,116
290,784
2,056
288,728
287,469
1,259
86,075
57,749
23,161
5,166
1,000,859
291,892
2,043
289,849
288,491
1,357
86,112
57,996
23,641
4,475
1,001,038
289,870
2,038
287,832
286,344
1,488
395,557r
39,525r
356,032r
180,022r
44,223
18,998
2,164
23,060
14,351
5,945
17,866
1,109
22,263
25,293
3,341
36,754
960,820
152,966r
395,309
39,539
355,770
180,528
44,679
18,960
1,964
23,755
13,304
5,906
17,654
1,032
21,673
25,315
3,279
37,265
957,483
155,861
395,625
39,621
356,005
181,479
44,411
18,940
2,150
23,322
12,813
5,850
17,586
941
21,272
25,355
3,270
37,481
955,365
154,845
394,639
39,717
354,922
182,877
44,403
19,193
1,934
23,275
15,017
5,872
17,543
931
22,363
25,323
3,254
37,227
960,378
151,628
393,914
39,916
353,998
183,859
45,719
20,127
2,484
23,108
14,805
5,842
17,581
947
23,143
25,358
3,256
36,709
961,073
157,292
l,590,573r l,593,884r l,622,688r l,596,242r l,602,366r
1,605,724
1,598,787
1,599,832
1,613,725
Dec. 4
Dec. 11
Dec. 18
Dec. 25
ASSETS
1 Cash and balances due from depository institutions
2 U.S. Treasury and government securities
Trading account
4 Investment account
5
Mortgage-backed securities2
All others, by maturity
6
One year or less
7
One year through five years
8
More than five years
9 Other securities
10 Trading account
11 Investment account
12
State and political subdivisions, by maturity
N
One year or less
14
More than one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
17 Federal funds sold3
18 To commercial banks in the United States
19 To nonbank brokers and dealers
20 To others
21 Other loans and leases, gross
22 Commercial and industrial
23
Bankers acceptances and commercial paper
24
All other
25
U.S. addressees
26
Non-U.S. addressees
27 Real estate loans
Revolving, home equity
28
29
All other
30 To individuals for personal expenditures
31 To financial institutions
32
Commercial banks in the United States
33
Banks in foreign countries
34
Nonbank financial institutions
35 For purchasing and carrying securities
36 To finance agricultural production
37 To states and political subdivisions
38 To foreign governments and official institutions
39 All other loans
40 Lease-financing receivables
41 LESS: Unearned income
42
Loan and lease reserve 6
43 Other loans and leases, net
44 Other assets
45 Total assets
Footnotes appear on the following page.
395,904rr
39,375
356,529r
182,206r
44,067
19,808
1,681
22,577
13,733
6,118
18,091
1,006
21,017
25,399
3,415
36,419
963,115
156,524r
396,206r
39,277r
356,929r
181,877r
44,671
19,671
2,058
22,941
12,818
6,076
17,968
1,019
21,062
25,452
3,368
37,029
962,842
158,029r
396,815r
39,362r
357,453r
181,902r
45,555
20,183
2,130
23,242
14,186
6,025
17,896
1,407
21,732
25,420
3,363
36,980
966,021
154,288r
396,066r
39,438r
356,627r
180,659r
43,166
18,966
1,686
22,513
14,388
6,001
17,851
930
21,165
25,366
3,358
36,977
960,419
153,886r
Weekly Reporting Commercial Banks
1.26
A21
A S S E T S A N D LIABILITIES OF L A R G E W E E K L Y REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1991
Oct. 30
Nov. 6
Nov. 13
Nov. 20
Nov. 27
Dec. 4
Dec. 11
Dec.18
Dec. 25
1,118,110*"
1,120,281
1,112,598
234,198
188,307
45,891
8,020
1,799
20,271
5,649
870
9,281
97,628
780,773
749,780
30,993
25,823
1,116
3,653
401
1,110,132
238,545
190,421
48,124
8,047
1,848
20,957
5,275
604
11,394
98,320
773,267
743,178
30,089
25,024
1,110
3,584
372
1,119,817
251,299
200,832
50,467
8,671
2,129
23,470
5,545
880
9,772
98,859
769,659
740,164
29,495
24,405
1,094
3,613
384
262,038
600
7,290
254,148
270,337
271,114
31
27,780
243,303
LIABILITIES
46 Deposits
47 Demand deposits
48
Individuals, partnerships, and corporations
49
Other holders
50
States and political subdivisions
51
U.S. government
52
Depository institutions in the United States . . .
53
Banks in foreign countries
Foreign governments and official institutions ..
54
55
Certified and officers' checks
56 Transaction balances other than demand deposits .
57 Nontransaction balances
58
Individuals, partnerships, and corporations
59
Other holders
60
States and political subdivisions
61
U.S. government
62
Depository institutions in the United States . . .
63
Foreign governments, official institutions, and banks .
280,821r
0
64 Liabilities for borrowed money6
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 liabilities
71
72
73
74
75
76
77
275,717r
285,186r
272,653r
28,034
252,787r
20,275r
255,442r
23,543
261,643r
18,019*
254,634r
101,923r
,
Total loans and leases, gross, adjusted, plus securities
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates
Commercial and industrial
Other
Foreign branch credit extended to U.S. residents"...
Net due to related institutions abroad
0
0
264,399*
5
15,124*
249,270*
239,253
192,900
46,353
7,658
1,664
20,816
4,998
768
10,449
99,801
781,227
750,441
30,787
25,513
1,170
3,690
414
263,726
0
11,005
252,722
0
26,117
244,220
100,239r
100,741r
102,428r
104,802*
105,665
107,810
103,303
107,664
1,478,969*
R
1,480,480*
1,487,311*
1,489,673
1,482,447
1,483,772
1,498,594
114,077r
114,914r
115,400"^
115,761r
115,055*
116,051
116,340
116,060
115,131
l,296,051r l,297,228r l,300,722r 1,303,486r 1,299,236*
170,750*
170,677*
172,824
170,972
172,697
1,363
1,323
1,431
1,388
1,465
735
705
759
798
787
628
618
629
666
644
24,204
24,572
24,115
23,981
24,307
-3,867
-3,901
-5,149
-5,017 r
-7,322 r
1,299,904
170,555
1,299
681
618
24,452
-6,497
1,2%,723
169,399
1,258
675
583
24,179
-3,421
1,301,311
166,249
1,242
654
588
24,217
-4,771
1,297,813
163,955
1,221
654
566
24,141
-4,229
1. Components may not sum to totals because of rounding.
2. Includes certificates of participation, issued or guaranteed by agencies of the
U.S. government, in pools of residential mortgages.
3. Includes securities purchased under agreements to resell.
4. Includes allocated transfer risk reserve.
5. Includes negotiable order of withdrawal (NOW), automatic transfer service
(ATS), and telephone and preauthorized transfer savings deposits.
6. Includes borrowings only from other-than-directly-related institutions.
7. Includes federal funds purchased and securities sold under agreements to
repurchase.
8. This balancing item is not intended as a measure of equity capital for use in
capital-adequacy analysis.
9. Excludes loans to and federal funds transactions with commercial banks in
0
244,247
194,383
49,865
8,311
3,405
22,495
5,349
740
9,565
96,196
777,667r
746,662r
31,006r
25,570
1,177
3,849
409*
R
L,476,496
70 Residual (total assets less total liabilities)8
MEMO
1,093,752 l,103,014r 1,121,361 1,105,399
230,353
221,894
223,292r1 244,310
181,199 193,712 182,847
178,008
47,506
43,886
42,093
50,598
7,176
7,459
6,995
7,328
1,548
1,630
1,634
1,373
18,903
25,370
19,657
20,594
5,156
4,572
5,373
5,187
709
569
594
679
10,606
13,035
9,498
8,437
96,312
94,621
94,311
91,735
780,735
780,122
783,410
782,430
751,ISC
749,673r
752,032r
748,671r
31,062r
31,250r
31,451r
31,378r
25,843
25,662
25,827
26,025
1,176
1,181
1,152
1,183
3,822
3,835r
3,959
3,876
389r
404r
399r
408r
L,507,288
the United States.
10. Affiliates include a bank's own foreign branches, nonconsolidated nonbank
affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
11. Credit extended by foreign branches of domestically chartered weeklyreporting banks to nonbank U.S. residents. Consists mainly of commercial and
industrial loans, but includes an unknown amount of credit extended to other than
nonfinancial businesses.
NOTE. Data that formerly appeared in table 1.28, Assets and Liabilities of Large
Weekly Reporting Commercial Banks in New York City, can be obtained from the
Board's H.4.2 (504) weekly statistical release. For ordering address see inside
front cover.
A22
1.30
DomesticNonfinancialStatistics • March 1992
L A R G E WEEKLY-REPORTING U.S. B R A N C H E S A N D A G E N C I E S O F FOREIGN B A N K S
Liabilities 1
Assets and
Millions of dollars, Wednesday figures
1991
Account
1 Cash and balances due from depository
institutions
2 U.S. Treasury and government agency
securities
3 Other securities
4 Federal funds sold 1
5 To commercial banks in the United States . . .
6
To others
7 Other loans and leases, gross
8
Commercial and industrial
9
Bankers acceptances and commercial
paper
10
All other
11
U.S. addressees
1?
Non-U.S. addressees
13
Loans secured by real estate
14 To financial institutions
Commercial banks in the United States..
15
16
Banks in foreign countries
17
Nonbank financial institutions
18
For purchasing and carrying securities . . . .
19 To foreign governments and official
institutions
70
All other
21 Other assets (claims on nonrelated parties) . .
22 Total assets3
7.3 Deposits or credit balances due to other
than directly related institutions
24 Demand deposits 4
25
Individuals, partnerships, and
corporations
76
Other
77 Nontransaction accounts
28
Individuals, partnerships, and
corporations
79
Other
30 Borrowings from other than directly
related institutions
31 Federal funds purchased
37
From commercial banks in the
United States
33
From others
34 Other liabilities for borrowed money
35
To commercial banks in the
United States
36
To others
37 Other liabilities to nonrelated parties
38 Total liabilities6
Nov. 13r
Nov. 20r
16,154
19,818
17,590
16,932
16,576
16,307
17,291
17,711
18,944
7,615
9,947
2,546
7,402
146,229
87,054
20,067
7,666
10,656
4,007
6,649
145,908
87,301
18,835
7,847
8,788
2,746
6,042
148,336
88,319
20,441
7,847
10,076
4,080
5,9%
150,400
89,182r
19,572
7,876
8,846
3,963
4,883
151,222
89,320
20,631
7,911
11,115
4,512
6,602
151,242
89,182
20,590
8,153
10,186
4,115
6,071
152,916
90,450
21,600
8,366
9,516
5,233
4,284
157,368
92,190
1,862
84,675r
82,388r
2,288
33,321
19,101r
8,093
1,930
9,078r
3,853
1,831
85,223
82,892
2,331
33,287
18,991
7,660
1,846
9,485
4,491
1,882
85,419
83,067
2,352
33,244
19,131
7,734
2,171
9,226
3,767
2,065
86,254
83,836
2,418
33,317
19,278
7,860
2,093
9,325
4,864
2,252
86,930"^
84,458r
2,472
33,430
19,962r
8,205
2,265
9,492 r
5,166
2,324
86,995
84,534
2,461
33,588
20,397
8,059
2,247
10,091
5,412
2,156
87,026
84,512
2,514
33,462
20,302
8,083
1,965
10,254
5,834
2,389
88,061
85,420
2,640
33,392
20,524
7,762
2,220
10,541
6,024
2,346
89,844
87,233
2,611
33,604
21,567
7,992
2,776
10,798
7,426
395
2,027
30,572
388
2,017
30,935
403
2,061
31,531
415
2,143
32,354
421
2,238
31,620
408
2,098
31,572
410
2,052
33,222
410
2,116
30,425
384
2,197
31,094
269,027
270,306
274,001
272,772
275,973
275,720
278,963
280,485
283,060
93,755
3,464
92,319
3,356
93,611
3,693
95,240
4,203
94,950
3,895
93,129
3,626
95,855
3,453
98,788
4,989
97,847
4,260
2,221
1,243
90,291
2,138
1,217
88,963
2,369
1,324
89,919
2,284
1,919
91,037
2,332
1,563
91,055
2,214
1,412
89,503
2,151
1,303
92,402
3,400
1,590
93,799
2,568
1,692
93,586
65,562
24,729
64,176
24,787
65,567
24,351
65,678
25,359
65,256
25,799
64,195
25,308
66,296
26,106
67,343
26,455
67,502
26,085
94,560r
50,231
98,080
53,628
95,218
47,938
94,804
51,335
95,466
49,240
99,247
54,634
95,016
47,127
96,858
50,158
96,904
46,879
18,867
31,364
44,329"^
22,018
31,610
44,452
19,620
28,317
47,280
18,226
33,109
43,468
19,151
30,090
46,225
21,059
33,576
44,613
20,183
26,943
47,890
20,707
29,451
46,700
20,123
26,756
50,025
13,302
31,027rr
29,928
13,214
31,238
29,958
13,450
33,830
30,612
13,088
30,380
30,364
14,138
32,087
30,064
13,197
31,416
30,143
13,999
33,890
30,988
13,761
32,939
29,066
14,779
35,247
29,622
269,027
270,306
274,001
272,772
275,973
275,720
278,963
280,485
283,060
170,484
13,786
172,530
9,468
172,555
16,203
173,199
13,342
176,478
16,836
175,494
13,144
178,304
18,568
179,968
14,850
183,625
21,282
Oct. 30
Nov. 6 r
16,898
18,880
7,589
12,858
5,983
6,874
145,233
86,537r
MEMO
39 Total loans (gross) and securities, adjusted . .
40 Net due to related institutions abroad
1. Includes securities purchased under agreements to resell.
2. Includes transactions with nonbank brokers and dealers in securities.
3. Includes net due from related institutions abroad for U.S. branches and
agencies of foreign banks having a net "due from" position.
4. Includes other transaction deposits.
Nov. 27
Dec. 4
Dec. 11
Dec. 18
Dec. 25
5. Includes securities sold under agreements to repurchase.
6. Includes net to related institutions abroad for U.S. branches and agencies of
foreign banks having a net "due t o " position.
7. Excludes loans to and federal funds transactions with commercial banks in
the United States.
Financial Markets
A23
COMMERCIAL PAPER A N D B A N K E R S DOLLAR A C C E P T A N C E S O U T S T A N D I N G 1
1.32
Millions of dollars, end of period
1991
1986
Dec.
Item
1987
Dec.
1988
Dec.
1989
Dec.
1990
Dec.
June
July
Aug.
Sept.
Oct.
Nov.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
Financial companies 2
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted)
6 Nonfinancial companies 6
331,316
358,997
458,464
530,123
566,688
536,186
545,493
538,179
532,931
529,981
538,567
101,707
102,742
159,777
186,343
218,953
203,139
205,099
208,159
211,821
219,028
220,402
2,265
1,428
1,248
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
151,897
174,332
194,931
212,640
201,862
191,137
195,144
191,902
189,427
180,540
182,109
40,860
43,173
43,155
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
77,712
81,923
103,756
131,140
145,873
141,910
145,250
138,118
131,683
130,413
136,056
Bankers dollar acceptances (not seasonally adjusted) 7
7 Total
8
9
10
11
12
13
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
64,974
70,565
66,631
62,972
54,771
45,539
44,756
44,228
43,462
44,910
43,947
13,423
11,707
1,716
10,943
9,464
1,479
9,086
8,022
1,064
9,433
8,510
924
9,017
7,930
1,087
10,028
8,414
1,613
9,081
7,906
1,175
9,622
7,826
1,795
10,174
8,237
1,937
9,876
8,306
1,570
10,750
8,754
1,996
0
1,317
50,234
0
965
58,658
0
1,493
56,052
0
1,066
52,473
0
918
44,836
0
1,203
34,308
0
1,274
34,401
0
1,665
32,941
0
1,678
31,610
0
1,862
33,172
0
1,705
31,491
14,670
12,960
37,344
16,483
15,227
38,855
14,984
14,410
37,237
15,651
13,683
33,638
13,096
12,703
28,973
13,431
11,416
20,691
12,728
11,468
20,561
12,968
11,044
20,215
12,876
10,966
19,620
13,265
11,105
20,541
13,472
10,486
19,989
1. Components may not sum to totals because of rounding.
2. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other
business lending; insurance underwriting; and other investment activities.
3. Includes all financial-company paper sold by dealers in the open market.
4. Bank-related series were discontinued in January 1989.
5. As reported by financial companies that place their paper directly with
investors.
1.33
6. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
7. Data on bankers acceptances are gathered from institutions whose acceptances total $100 million or more annually. The reporting group is revised every
January. In January 1988, the group was reduced from 155 to 111 institutions. The
current group, totaling approximately 100 institutions, accounts for more than 90
percent of total acceptances activity.
PRIME R A T E C H A R G E D BY B A N K S on Short-Term Business Loans 1
Percent per year
Date of change
Period
Rate
Average
rate
10.50
1989
1990
1991
10.87
10.01
8.46
10.50
1989— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
10.50
10.93
11.50
11.50
11.50
11.07
10.98
10.50
10.50
10.50
10.50
10.50
1989— Jan. 1
Feb. 10
24
June 5
July 31
11.00
11.50
11.00
1990— Jan.
8
10.00
1991—Jan. 2
Feb. 4
May 1
Sept. 13 .
Nov. 6
Dec. 23
9.50
9.00
8.50
8.00
7.50
6.50
1. Data in this table also appear in the Board's H.15 (519) weekly and G.13
(415) monthly statistical releases. For ordering address, see inside front cover.
Period
1990— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Average
rate
10.11
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
Period
1991— Jan. ..
Feb. .
Apr. .
May ..
June .
July ..
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec. ..
1992— Jan. ...
A24
1.35
DomesticNonfinancialStatistics • March 1992
I N T E R E S T RATES Money and Capital Markets
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1991
Item
1989
1990
1991, week ending
1991
Sept.
Oct.
Nov.
Dec.
Nov. 29
Dec. 6
Dec. 13
Dec. 20
Dec. 27
MONEY MARKET INSTRUMENTS
1 Federal funds 1 ' 2 ' 3
2 Discount window borrowing 2 ' 4
9.21
6.93
8.10
6.98
5.69
5.45
5.45
5.20
5.21
5.00
4.81
4.58
4.43
4.11
4.68
4.50
4.79
4.50
4.54
4.50
4.49
4.50
4.22
3.64
9.11
8.99
8.80
8.15
8.06
7.95
5.89
5.87
5.85
5.57
5.57
5.59
5.29
5.35
5.33
4.95
4.98
4.93
4.98
4.61
4.49
4.91
4.94
4.84
5.12
4.86
4.77
4.93
4.62
4.48
4.86
4.53
4.41
5.05
4.51
4.34
8.99
8.72
8.16
8.00
7.87
7.53
5.73
5.71
5.60
5.43
5.33
5.34
5.18
5.19
5.12
4.80
4.87
4.76
4.69
4.39
4.31
4.74
4.80
4.71
4.94
4.69
4.63
4.74
4.43
4.36
4.65
4.33
4.23
4.62
4.19
4.09
3,5,6
3
4
5
Commercial
1-month
3-month
6-month
paper
6
7
8
Finance paper, directly
1-month
3-month
6-month
placed3,5,1
9
10
Bankers
acceptances3'5,8
3-month
6-month
8.87
8.67
7.93
7.80
5.70
5.67
5.38
5.42
5.21
5.15
4.85
4.76
4.42
4.28
4.78
4.65
4.67
4.50
4.42
4.30
4.35
4.25
4.33
4.15
11
12
13
Certificates of deposit,
market 9
1-month
3-month
6-month
9.11
9.09
9.08
8.15
8.15
8.17
5.82
5.83
5.91
5.47
5.47
5.60
5.23
5.33
5.32
4.86
4.94
4.92
4.84
4.47
4.41
4.82
4.86
4.83
5.04
4.78
4.70
4.83
4.48
4.41
4.76
4.36
4.32
4.84
4.33
4.25
9.16
8.16
5.86
5.50
5.34
4.96
4.48
4.90
4.80
4.45
4.45
4.31
8.11
8.03
7.92
7.50
7.46
7.35
5.38
5.44
5.52
5.22
5.25
5.26
4.99
5.04
5.04
4.56
4.61
4.64
4.07
4.10
4.17
4.39
4.45
4.50
4.32
4.32
4.38
4.16
4.17
4.23
4.03
4.10
4.14
3.81
3.89
3.97
8.12
8.04
7.91
7.51
7.47
7.36
5.42
5.49
5.54
5.25
5.29
5.26
5.03
5.08
5.12
4.60
4.66
4.72
4.12
4.16
4.20
4.44
4.50
n.a.
4.39
4.39
n.a.
4.21
4.20
n.a.
4.14
4.19
4.20
3.75
3.85
n.a.
secondary
14 Eurodollar deposits, 3-month 3,10
18
19
20
U.S. Treasury bills
Secondary market ' 5
3-month
6-month
1-year
Auction average 3,5,11
3-month
6-month
1-year
21
22
23
24
25
26
21
Constant maturities12
1-year
2-year
3-year
5-year
7-year
10-year
30-year
8.53
8.57
8.55
8.50
8.52
8.49
8.45
7.89
8.16
8.26
8.37
8.52
8.55
8.61
5.86
6.49
6.82
7.37
7.68
7.86
8.14
5.57
6.18
6.50
7.14
7.48
7.65
7.95
5.33
5.91
6.23
6.87
7.25
7.53
7.93
4.89
5.56
5.90
6.62
7.06
7.42
7.92
4.38
5.03
5.39
6.19
6.69
7.09
7.70
4.74
5.44
5.81
6.54
7.03
7.42
7.96
4.61
5.25
5.63
6.34
6.82
7.25
7.86
4.44
5.07
5.46
6.25
6.76
7.21
7.79
4.35
5.01
5.38
6.21
6.73
7.13
7.71
4.17
4.83
5.17
6.00
6.51
6.86
7.52
Composite13
28 Over 10 years (long-term)
8.58
8.74
8.16
7.96
7.88
7.83
7.58
7.86
7.73
7.67
7.60
7.40
7.00
7.40
7.23
6.96
7.29
7.27
6.56
6.99
6.92
6.51
6.87
6.80
6.28
6.70
6.68
6.24
6.58
6.73
n.a.
n.a.
6.69
6.20
6.55
6.78
6.45
6.81
6.80
6.37
6.72
6.71
6.22
6.54
6.66
6.22
6.54
6.58
9.66
9.77
9.23
9.03
8.99
8.93
8.75
8.93
8.86
8.80
8.75
8.64
9.26
9.46
9.74
10.18
9.32
9.56
9.82
10.36
8.77
9.05
9.30
9.80
8.61
8.86
9.11
9.51
8.55
8.83
9.08
9.49
8.48
8.78
9.01
9.45
8.31
8.61
8.82
9.26
8.46
8.79
9.00
9.46
8.39
8.73
8.93
9.37
8.35
8.65
8.88
9.30
8.31
8.62
8.83
9.26
8.22
8.50
8.71
9.14
37 A-rated, recently offered utility bonds17 . . . .
9.79
10.01
9.32
9.05
9.02
8.95
8.68
8.98
8.80
8.76
8.57
8.49
MEMO: Dividend-price ratio 18
38 Preferred stocks
39 Common stocks
9.05
3.45
8.96
3.61
8.17
3.25
7.88
3.15
7.84
3.14
7.81
3.15
7.62
3.11
7.85
3.22
7.72
3.19
7.65
3.22
7.63
3.17
7.55
3.06
15
16
17
U . S . TREASURY NOTES AND BONDS
STATE AND LOCAL NOTES AND BONDS
Moody's series14
29
30 Baa
31 Bond Buyer series 15
CORPORATE BONDS
32 Seasoned issues, all industries 16
Rating group
33
34 Aa
35 A
36 Baa
1. The daily effective federal funds rate is a weighted average of rates on
trades through N.Y. brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday
of the current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. An average of offering rates on commercial paper placed by several leading
dealers for firms whose bond rating is AA or the equivalent.
7. An average of offering rates on paper directly placed by finance companies.
8. Representative closing yields for acceptances of the highest rated money
center banks.
9. An average of dealer offering rates on nationally traded certificates of
deposit.
10. Bid rates for Eurodollar deposits at 11 a.m. London time. Data are for
indication purposes only.
11. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.
12. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
13. Unweighted average of rates on all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower"bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with twenty years to maturity, issued by twenty
state and local governmental units of mixed quality. Based on figures for
Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a thirty-year maturity and five
years of call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample o f t e n issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36
STOCK MARKET
A25
Selected Statistics
1991
Indicator
1989
1990
1991
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Prices and trading volume (averages of daily figures)
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3 Transportation
Utility
4
5
Finance
180.13
228.04
174.90
94.33
162.01
183.58
225.89
158.88
90.71
133.36
206.35
258.16
173.97
92.64
150.84
207.71
260.16
166.90
92.92
152.64
207.07
260.13
170.77
90.73
151.32
207.32
261.16
177.05
89.01
152.30
208.29
262.48
177.15
90.05
151.69
213.33
268.22
178.42
92.38
157.70
212.55
266.21
177.99
93.72
157.69
213.10
265.68
187.45
95.25
158.94
213.25
264.89
188.52
96.78
159.78
214.26
266.01
185.47
98.08
159.96
6 Standard & Poor's Corporation
(1941-43 = 10)'
323.05
334.83
376.20
379.68
378.27
378.29
380.23
389.40
387.20
386.88
385.87
388.51
7 American Stock Exchange
(Aug. 31, 1973 = 50?
356.67
338.58
360.32
365.02
362.67
366.06
364.33
367.38
369.55
376.82
382.38
373.08
165,568
13,124
156,777
13,155
179,411
12,486
182,510
13,140
170,337
10,995
162,154
11,477
157,871
10,883
171,490
12,514
163,242
13,378
177,502
13,764
187,191
14,487
197,914
17,475
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
34,320
28,210
36,660
30,020
29,980
31,280
30,600
32,240
33,170
33,360
34,840
36,660
Free credit balances at brokers4
11 Margin accounts
12 Cash accounts
7,040
18,505
8,050
19,285
8,290
19,255
6,975
17,830
7,200
16,650
6,690
18,110
6,545
16,945
7,040
17,040
6,950
17,595
6,965
17,100
7,040
17,780
8,290
19,255
Margin requirements (percent of market value and effective date) 6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. On July 5, 1983, the American Stock Exchange rebased its index, effectively
cutting previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at brokerdealers has included credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to brokers and are subject to withdrawal by customers on demand.
5. New series since June 1984.
6. These requirements, stated in regulations adopted by the Board of Governors pursuant to the Securities Exchange Act of 1934, limit the amount of credit
that can be used to purchase and carry "margin securities" (as defined in the
regulations) when such credit is collateralized by securities. Margin requirements
on securities other than options are the difference between the market value (100
percent) and the maximum loan value of collateral as prescribed by the Board.
Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1,
1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1,
1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market value of the stock underlying the option. On
Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
Effective June 8, 1988, margins were set to be the price option plus 20 percent
of the market value of the stock underlying the option (or 15 percent in the case
of stock-index options).
A26
1.37
DomesticNonfinancialStatistics • March 1992
S E L E C T E D F I N A N C I A L INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1991
Account
1989
1990
Jan.
Feb.
Apr. r
Mar.
May r
June r
July r
Aug. r
Sept. r
Oct.
SAIF-insured institutions
1 Assets
1,249,055
1,084,821
1,065,993
1,054,654
1,041,977
1,027,464
1,020,677
1,001,582
984,971
972,529
949,047
937,776
733,729
633,385
624,707
619,720
610,618
608,857
605,947
596,022
586,280
578,269
566,107
560,830
170,532
155,228
151,422
149,318
147,431
143,968
141,582
139,536
137,098
135,751
135,377
135,084
25,457
32,150
58,685
16,897
24,125
48,753
15,211
23,669
48,129
14,872
23,205
47,729
14,592
22,294
47,653
14,413
21,903
46,702
14,438
21,724
45,827
14,625
20,645
45,174
14,242
20,301
44,352
14,031
20,390
43,259
13,115
18,507
42,441
12,471
18,159
43,062
2 Mortgages
3 Mortgage-backed
securities
4
Contra-assets to
mortgage assets' .
5 Commercial loans
6 Consumer loans
7
Contra-assets to nonmortgage loans .
8 Cash and investment
securities
9 Other 3
3,592
1,939
1,700
1,876
1,827
1,742
1,739
1,745
1,676
1,546
1,399
1,372
166,053
116,955
146,644
95,522
140,502
94,474
138,884
92,546
138,976
91,424
132,878
89,301
134,012
87,757
130,443
86,133
130,264
82,594
132,011
78,425
125,774
75,354
120,675
73,809
10 Liabilities and net worth . 1,249,055
1,084,821
1,065,993
1,054,654
1,041,977
1,027,464
1,020,677
1,001,582
984,971
972,529
949,047
937,776
835,4%
197,353
100,391
96,962
21,332
30,640
823,515
188,900
95,819
93,081
22,178
31,400
816,477
183,660
94,658
89,002
23,355
31,162
816,991
169,412
90,555
78,857
20,350
35,223
806,266
164,268
86,779
77,489
21,752
35,178
801,678
159,625
82,312
77,313
23,647
35,720
792,923
151,474
78,966
72,508
20,480
36,705
775,445
146,901
76,104
70,797
21,647
40,977
763,763
142,908
74,424
68,484
22,642
43,216
749,372
132,726
68,792
63,934
19,070
47,878
741,371
127,356
66,578
60,778
20,368
48,681
11
12
13
14
15
16
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
945,656
252,230
124,577
127,653
27,556
23,612
1. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
mortgage loans, contracts, and pass-through securities include loans in process,
unearned discounts and deferred loan fees, valuation allowances for mortgages
"held for sale," and specific reserves and other valuation allowances.
2. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
nonmortgage loans include loans in process, unearned discounts and deferred loan
fees, and specific reserves and valuation allowances.
1.38
3. Includes holding of stock in Federal Home Loan Bank and finance leases
plus interest.
NOTE. Components do not sum to totals because of rounding. Data for credit
unions and life insurance companies have been deleted from this table. They will
be shown in a separate table which will appear quarterly, starting in the December
issue.
SOURCE. Savings Association Insurance Fund (SAIF)-insured
institutions:
Estimates by the Office of Thrift Supervision (OTS) for all institutions insured by
the SAIF and based on the OTS thrift institution Financial Report.
F E D E R A L FISCAL A N D F I N A N C I N G OPERATIONS'
Millions of dollars
Calendar year
Type of account or operation
U.S. budget2
1 Receipts, total
2
On-budget
3 Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
7 Surplus or deficit ( - ) , total
8 On-budget
Off-budget
9
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase ( - ) ) . . .
12 Other 3
Fiscal
year
1989
Fiscal
year
1990
Fiscal
year
1991
1991
July
Aug.
Sept.
Oct.
Nov.
Dec.
109,345
83,130"
26,215r
116,174
91,516r
24,658r
-6,829
-8,386
1,557
78,068
57,216
20,852
114,045
94,062
19,983
-35,976
-36,846
869
73,194
50,898
22,296
118,660
96,367
22,293
-45,467
-45,469
3
103,662
80,172
23,490
106,306
95,607
10,698
-2,644
-15,435
12,792
990,701
727,035
263,666
1,144,020
933,107
210,911
-153,319
-206,072
52,753
1,031,308
749,652
281,656
1,251,766
1,026,711
225,065
-220,469
-277,059
56,590
1,054,260
760,377r
293,883r
1,322,989
l,081,303r
241,685r
-268,729
-320,926
52,198
78,593
56,327
22,266
119,384
99,532
19,852
-40,791
-43,205
2,414
76,426
54,651
21,775
120,071
97,247
22,824
-43,645
-42,596
-1,049
141,806
3,425
8,088
220,101
818
-451
276,802
-1,329
-6,744
34,434
6,728
-371
32,574
18,504
-7,433
27,970
-23,133
1,992
40,657
-11,235
6,554
25,641
28,195
-8,369
22,825
-24,258
4,077
40,973
13,452
27,521
40,155
7,638
32,517
41,484
7,928
33,556
36,855
5,831
31,024
18,351
6,745
11,606
41,484
7,928
33,556
52,719
18,111
34,608
24,524
6,317
18,207
48,782
17,697
31,085
MEMO
13 Treasury operating balance (level, end of
period)
14
Federal Reserve Banks
15 Tax and loan accounts
1. Components may not sum to totals because of rounding.
2. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act also moved two
social security trust funds (federal old-age survivors insurance and federal
disability insurance trust fund) off-budget. The Postal Service is included as an
off-budget item in the Monthly Treasury Statement beginning in 1990.
3. Includes special drawing rights (SDRs); reserve position on the U.S. quota
in the International Monetary Fund (IMF); loans to the IMF; other cash and
monetary assets; accrued interest payable to the public; allocations of SDRs;
deposit funds; miscellaneous liability (including checks outstanding) and asset
accounts; seigniorage; increment on gold; net gain or loss for U.S. currency
valuation adjustment; net gain or loss for IMF loan-valuation adjustment; and
profit on sale of gold.
SOURCES. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government (MTS) and the Budget of the U.S. Government.
Federal Finance
1.39
A27
U . S . B U D G E T RECEIPTS A N D O U T L A Y S '
Millions of dollars
Calendar year
Source or type
Fiscal
year
1990
Fiscal
year
1991
1991
1990
HI
H2
HI
H2
Oct.
Nov.
Dec.
RECEIPTS
1 All sources
? Individual income taxes, net
3 Withheld
4
Presidential Election Campaign Fund
^ Nonwithheld
6
Refunds
Corporation income taxes
Gross receipts
7
8
Refunds
9 Social insurance taxes and contributions,
net
10 Employment taxes and
contributions
Self-employment taxes and
11
contributions
12
Unemployment insurance
13 Other net receipts
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts
1,031,308
1,054,260
548,861
503,123
540,504
519,288
78,068
73,194
103,662
466,884
388,384
32
151,285
72,817
467,827
404,152
32
142,693
79,050
243,087
190,219
30
117,675
64,838
230,745
207,469
3
31,728
8,455
232,389
193,440
31
109,405
70,487
233,983
210,552
1
33,296
9,867
39,332
37,291
0
3,725
1,684
31,987
32,448
0
1,743
2,205
41,722
39,943
0
2,614
835
110,017
16,510
113,599
15,513
58,830
8,326
54,044
7,603
58,903
7,904
54,016
7,956
3,613
2,442
2,411
895
22,546
827
380,047
396,011
210,476
178,468
214,303
186,839
28,435
31,502
30,9%
353,891
370,526
195,269
167,224
199,727
175,802
27,022
28,835
30,418
21,795
21,635
4,522
25,457
20,922
4,563
19,017
12,929
2,278
2,638
8,9%
2,249
22,150
12,296
2,279
3,306
8,721
2,317
0
971
443
0
2,293
374
0
228
350
35,345
16,707
11,500
27,316
42,430
15,921
11,138
22,847
18,153
8,0%
6,442
12,106
17,535
8,568
5,333
16,032
20,703
7,488
5,631
8,991
24,690
8,694
5,521
13,503
3,640
1,607
923
2,962
4,200
1,412
984
1,593
3,912
1,405
757
3,151
1,251,776
1,322,989
640,867
647,218
631,737
694,640
114,045
118,660
106,306
299,331
13,762
14,444
2,372
17,067
11,958
272,514
16,167
15,946
1,750
18,708
14,864
152,733
6,770
6,974
1,216
7,343
7,450
149,497
8,943
8,081
979
9,933
6,878
122,089
7,592
7,4%
816
8,324
7,684
147,531
7,651
8,473
1,436
11,221
7,335
23,792
1,842
1,562
640
3,179
1,615
25,794
1,836
1,293
667
1,829
2,291
24,138
1,252
1,501
160
1,580
2,409
67,160
29,485
8,498
75,639
31,531
7,432
38,672
13,754
3,987
37,491
16,218
3,939
17,992
14,748
3,552
36,579
17,094
3,784
29
2,891
802
2,099
2,882
664
-6,650
2,731
546
38,497
41,479
19,537
18,988
21,234
21,104
3,983
3,581
3,937
OUTLAYS
18 All types
19
70
21
77
73
24
National defense
International affairs
General science, space, and technology . . . .
Energy
Natural resources and environment
Agriculture
Commerce and housing credit
76 Transportation
27 Community and regional development
28 Education, training, employment, and
social services
79 Health
30 Social security and medicare
31 Income security
57,716
346,383
147,314
71,183
373,495
171,618
29,488
175,997
78,475
31,424
176,353
75,948
35,608
190,247
88,778
41,458
193,156
87,215
7,194
32,659
13,695
7,283
32,186
14,970"
7,329
32,676
16,191
37
33
34
35
36
29,112
10,004
10,724
184,221
-36,615
31,344
12,295
11,358
195,012
-39,356
15,217
4,868
4,916
91,155
-17,688
15,479
5,265
6,976
94,650
-19,829
14,326
6,187
5,212
98,556
-18,702
17,425
6,586
6,821
99,405
-20,435
3,086
1,129
2,056
16,847
-2,956
4,060
1,124
1,303
16,557
-2,566
2,637
1,142
1,313
16,564
-3,148
Veterans benefits and services
Administration of justice
General government
Net interest 6
Undistributed offsetting receipts'
1. Functional details do not sum to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
total for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf, U.S. government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1990.
A28
1.40
DomesticNonfinancialStatistics • March 1992
F E D E R A L D E B T SUBJECT TO STATUTORY LIMITATION 1
Billions of dollars, end of month
1991
1990
1989
Item
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
2,976
3,082
3,176
3,266
3,397
3,492
3,563
3,683
n.a.
2 Public debt securities
3
Held by public
Held by agencies
4
2,953
2,245
708
3,052
2,329
723
3,144
2,369
775
3,233
2,438
796
3,365
2,537
828
3,465
2,598
867
3,538
2,643
895
3,665
2,746
920
3,802
n.a.
n.a.
23
22
0
30
30
0
32
32
0
33
33
0
33
32
0
27
26
0
25
25
0
18
18
0
5 Agency securities
6
Held by public
Held by agencies
7
8 Debt subject to statutory limit
Dec 31
n.a.
n.a.
n.a.
2,922
2,989
3,077
3,161
3,282
3,377
3,450
3,569
3,707
9 Public debt securities
10 Other debt 2
2,921
0
2,989
0
3,077
0
3,161
0
3,281
0
3,377
0
3,450
0
3,569
0
3,706
0
11 MEMO: Statutory debt limit
3,123
3,123
3,123
3,195
4,145
4,145
4,145
4,145
4,145
1. Components may not sum to totals because of rounding.
2. Consists of guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
1.41
GROSS PUBLIC D E B T OF U.S. T R E A S U R Y
of Columbia stadium bonds.
SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the
United States.
Types and Ownership 1
Billions of dollars, end of period
1991
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Nonmarketable 2
State and local government series
Foreign issues
Government
Public
Savings bonds and notes
Government account series 4
Non-interest-bearing
By holder5
15 U.S. Treasury and other federal agencies and trust funds
16 Federal Reserve Banks
17 Private investors
18 Commercial banks
19
Money market funds
20
Insurance companies
21
Other companies
22
State and local treasuries
Individuals
23
Savings bonds
24
Other securities
25
Foreign and international 6
26
Other miscellaneous investors 7
1988
1990
1991
Q1
Q2
Q3
Q4
2,684.4
2,953.0
3,364.8
3,801.7
3,465.2
3,538.0
3,665.3
3,801.7
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
6.6
6.6
.0
107.6
575.6
21.3
2,931.8
1,945.4
430.6
1,151.5
348.2
986.4
163.3
6.8
6.8
.0
115.7
695.6
21.2
3,362.0
2,195.8
527.4
1,265.2
388.2
1,166.2
160.8
43.5
43.5
.0
124.1
813.8
2.8
3,798.9
2,471.6
590.4
1,430.8
435.5
1,327.2
159.7
41.9
41.9
.0
135.9
959.2
2.8
3,441.4
2,227.9
533.3
1,280.4
399.3
1,213.5
159.4
42.8
42.8
.0
127.7
853.1
23.8
3,516.1
2,268.1
521.5
1,320.3
411.2
1,248.0
161.0
42.1
42.1
.0
131.3
883.2
21.9
3,662.8
2,390.7
564.6
1,387.7
423.4
1,272.1
158.1
41.6
41.6
.0
133.5
908.4
2.5
3,798.9
2,471.6
590.4
1,430.8
435.5
1,327.2
159.7
41.9
41.9
.0
135.9
959.2
2.8
589.2
238.4
1,858.5
193.8
11.8
107.3
87.1
313.6
707.8
228.4
2,015.8
174.8
14.9
130.1
93.4
338.7
828.3
259.8
2,288.3
188.2
45.4
149.7
108.9
329.6
866.8
247.3
2,360.6
194.8
65.7
149.3r
114.9
329.5r
895.1
255.1
2,397.9
204.2r
55.2r
155.r
130.8
327.0r
919.6
264.7
2,489.4
214.0
64.5
157.0
142.0
326.0
109.6
79.2
362.2
593.4
117.7
98.7
392.9
654.6
126.2
107.6
423.2r
822.4r
129.7
108.6
430.7r
837.4r
133.2
110.3
441.2r
840.9r
135.4
122.1
444.8
883.6
1. Components may not sum to totals because of rounding.
2. Includes (not shown separately) securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
3. Nonmarketable series denominated in dollars, and series denominated in
foreign currency held by foreigners.
4. Held almost entirely by U.S. Treasury and other federal agencies and trust
funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust
1989
n. a.
n.a.
funds are actual holdings; data for other groups are Treasury estimates.
6. Consists of investments of foreign balances and international accounts in the
United States.
7. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder, the Treasury
Bulletin.
Federal Finance
1.42
U . S . G O V E R N M E N T SECURITIES D E A L E R S
A29
Transactions 1
Millions of dollars, daily averages, par value
1991, week ending
1991
Item
Sept.
Oct."
Nov.
Oct. 30
Nov. 6
Nov. 13
31,075
35,273
36,255
41,013
32,939
36,867
Nov. 27
Dec. 4
43,054
33,172
28,497
34,550
32,812
30,887
43,680
35,448
12,975
12,646
33,775
31,799
13,578
11,601
37,494
36,389
19,959
21,265
37,514
32,629
13,752
13,150
34,775
32,028
13,611
15,500
Nov. 20
Dec. 11
Dec. 18
Dec. 25
IMMEDIATE TRANSACTIONS 2
By type of security
U.S. Treasury securities
1 Bills
Coupon securities, by maturity
2
Less than 3.5 years
3
3.5 to 7.5 years
4
7.5 to 15 years
5
15 years or more
Federal agency securities
Debt, maturing in
6
Less than 3.5 years
7
3.5 to 7.5 years
8
7.5 years or more
Mortgage-backed securities
9
Pass-throughs
10
All others
11
12
13
14
15
16
By type of counterparty
Primary dealers and brokers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
Customers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
36,099"
28,214r
13,463r
13,586"
38,280
35,454
16,202
15,710
42,034
33,385
18,691
18,559
43,917"
37,926"
18,208"
15,822
45,317"
30,987"
21,848"
19,192
40,115
33,301
24,758
27,845
40,949
33,625
18,049
17,930
4,384"
676"
607"
4,428
571
736
4,089
700
904
5,094"
567"
722"
3,507"
741r
1,072"
4,104
739
966
3,985
761
928
4,625
528
643
4,205
933
1,167
4,998
843
999
4,983
680
707
4,352
375
597
12,324"
2,314
11,954
2,638
14,169
2,934
12,543
2,831
10,604
2,489
14,232
3,336
16,805
2,752
15,129
3,249
10,193
2,440
15,685
3,019
14,184
3,161
11,919
2,388
74,771"
88,007
93,694
99,777"
95,578"
100,884
97,235
87,085
72,738
93,105
78,984
72,246
1,436"
6,736
1,585
6,803
1,387
8,245
1,988"
7,867
1,226"
5,756
1,553
7,960
1,440
10,429
1,251
8,865
1,790
5,317
1,693
8,323
1,495
7,672
1,026
5,996
47,665"
52,913
55,231
57,110"
54,706"
62,002
56,372
50,836
46,511
56,553
50,873
54,554
4,231"
7,902"
4,150
7,788
4,305
8,858
4,396"
7,507
4,093"
7,336
4,256
9,609
4,233
9,128
4,545
9,513
4,516
7,315
5,148
10,381
4,876
9,673
4,299
8,312
3,616
3,073
3,740
3,810
2,498
4,714
4,770
2,851
4,102
6,001
2,170
2,431
996
541
881
8,235
1,312
812
941
9,273
1,673
864
1,224
10,328
1,332
758
1,041
9,757
2,329
1,171
1,079
9,199
1,451
646
1,434
12,835
1,429
764
1,384
10,724
1,667
890
1,101
9,707
1,195
872
776
5,937
1,381
1,305
1,498
10,178
1,289
867
1,218
6,612
4,096
1,888
703
8,496
45
51
33
92
38
25
94
73
63
181
10
74
60
12
8
30
24
11
142
83
72
139
140
142
22
134
49
22
47
13
204
17
54
315
16
24
11,134
2,012
12,076
2,339
12,374
1,745
10,945
2,668"
8,836
1,840
15,672
1,205
13,419
2,483
12,541
1,525
7,270
927
13,528
2,024
9,813
1,169
9,683
1,456
1,725
340
337
2,551
1,025
420
381
2,205
975
640
523
3,482
886
346
263
2,334
1,302
1,206
453
4,168
1,353
668
578
4,140
726
488
862
4,247
693
319
174
1,962
807
631
631
1,877
1,200
1,058
381
2,420
425
234
252
1,739
2,273
517
413
2,528
603
532
334
222
296
585
371
127
339
875
176
713
FUTURE AND FORWARD
TRANSACTIONS 4
By type of deliverable security
U.S. Treasury securities
17 Bills
Coupon securities, by maturity
18 Less than 3.5 years
19 3.5 to 7.5 years
20
7.5 to 15 years
21
15 years or more
Federal agency securities
Debt, maturing in
22
Less than 3.5 years
23
3.5 to 7.5 years
24
7.5 years or more
Mortgage-backed
Pass-throughs
25
26
Others
OPTION TRANSACTIONS 5
27
28
29
30
31
By type of underlying security
U.S. Treasury, coupon
securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency, mortgagebacked securities
Pass-throughs
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Averages for transactions are based on the
number of trading days in the period. Immediate, forward, and future transactions
are reported at principal value, which does not include accrued interest; option
transactions are reported at the face value of the underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Transactions for immediate delivery include purchases or sales of securities
(other than mortgage-backed agency securities) for which delivery is scheduled in
five business days or less and "when-issued" securities that settle on the issue
date of offering. Transactions for immediate delivery of mortgage-backed securities
include purchases and sales for which delivery is scheduled in thirty days or less.
Stripped securities are reported at market value by maturity of coupon or corpus.
3. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest only securities (IOs),
and principal only securities (POs).
4. Futures transactions are standardized agreements arranged on an exchange.
Forward transactions are agreements made in the over-the-counter market that
specify delayed delivery. All futures transactions are included regardless of time
to delivery. Forward contracts for U.S. Treasury securities and federal agency
debt securities are included when the time to delivery is more than five days.
Forward contracts for mortgage-backed securities are included when the time to
delivery is more than thirty days.
5. Options transactions are purchases or sales of put-and-call options, whether
arranged on an organized exchange or in the over-the-counter market, and include
options on futures contracts on U.S. Treasury and federal agency securities.
NOTE. In tables 1.42 and 1.43, the term " n . a . " refers to data that are not
published because of insufficient activity.
Data formerly shown under option transactions for U.S. Treasury securities,
bills; Federal agency securities, debt; and mortgage-backed securities, other than
pass-throughs are no longer available because of insufficient activity.
A30
1.43
DomesticNonfinancialStatistics • March 1992
U . S . G O V E R N M E N T SECURITIES D E A L E R S
Positions and Financing 1
Millions of dollars
1991, week ending
1991
Item
Sept.
Oct.
Nov.
Oct. 23
Oct. 30
Nov. 6
Nov. 13
Nov. 20
Nov. 27
Dec. 4
Dec. 11
Dec. 18
Positions 2
N E T IMMEDIATE TRANSACTIONS 3
By type of security
U.S. Treasury securities
1 Bills
Coupon securities, by maturity
2
Less than 3.5 years
3
3.5 to 7.5 years
4
7.5 to 15 years
5
15 years or more
Federal agency securities
Debt, maturing in
6
Less than 3.5 years
7
3.5 to 7.5 years
7.5 years or more
8
Mortgage-backed securities
Pass-throughs
9
10 All others
Other money market instruments
11 Certificates of deposit
12 Commercial paper
13 Bankers acceptances
15,937
15,720
15,482
18,827
16,581
19,828
16,398
15,573
10,990
14,921
17,261
18,469
4,049r
561'
-4,997 r
-12,134
6,362r
-2,993 r
-3,733 r
-8,144 r
7,368
-8,509
-3,844
-7,296
8,97 r
-5,126 r
-4,368 r
- 8 ,449r
4,172
-2,478
-4,342
-7,921
10,364
-6,213
-1,436
-13,095
9,298
-8,110
-4,168
-9,280
5,724
-10,259
-3,475
-3,637
5,197
-8,204
-4,885
-5,493
5,771
-10,663
-6,332
-3,816
3,636
-8,291
-6,640
-2,050
7,501
-8,598
-5,232
-1,450
4,805r
l,905 r
5,167r
4,104r
l,940 r
5,108r
4,099
2,314
4,231
5,148r
l,870 r
4,929r
2,961
2,042
5,065
3,398
2,039
4,733
4,078
2,170
4,453
4,694
2,382
4,204
3,298
2,462
3,685
6,035
2,698
4,046
3,841
2,796
3,720
4,121
2,678
3,580
29,377
12,611
25,712
14,414r
27,555
15,780
28,443
14,143
23,981
14,299
26,339
14,610
30,512
13,735
35,559
15,918
21,506
17,795
18,525
17,868
27,315
16,620
26,517
16,373
3,020
5,912
1,575
3,355
6,481
1,495
3,147
6,194
1,574
3,346
6,080
1,140
3,849
7,381
1,692
2,838
6,792
1,542
3,456
7,204
1,676
3,481
5,404
1,331
2,644
5,847
1,630
3,435
5,296
1,840
2,610
5,889
1,564
2,562
6,148
1,257
-7,828
-8,523
-10,708
-8,621
-9,506
-8,532
-10,164
-12,389
-10,350
-13,238
-11,880
-8,267
1,615
-868
-1,892
-5,582
1,195
-1,553
-1,061
-3,551
394
-1,565
-500
-2,016
967
-2,019
-437
-2,344
1,384
-1,677
-1,429
-3,148
463
-1,551
345
455
1,005
-1,356
-712
-275
86
-1,994
-1,005
-4,383
111
-1,566
-575
-2,594
209
-1,077
-337
-4,149
441
-945
449
-5,747
2,984
-235
-730
-5,356
-41
-1
-26
35
-60
-18
54
16
94
101
-52
-37
80
-2
15
20
63
11
54
-59
0
-1
28
30
180
75
287
-45
-65
180
-14
109
56
-97
145
-83
FUTURE AND FORWARD TRANSACTIONS5
14
15
16
17
18
19
20
21
22
23
24
By type of deliverable security
U.S. Treasury securities
Bills
Coupon securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency securities
Debt, maturing in
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed securities
Pass-throughs
All others
Certificates of deposit
-18,899 -15,336 r -14,580 -17,278
2,707
l,363
1,994
1,883
r
-128,658 -153,734 -175,570 -151,431
-9,585
-12,342 -13,903 -18,225 -21,511
-2,912 -12,654 -12,046
2,205
1,506
2,011
2,024
1,081
1,779
2,223
2,332
-152,683 -170,520 -165,050 -185,057 -179,251 -179,492 -190,448 -190,469
Financing6
Reverse repurchase agreements
25 Overnight and continuing
26 Term
189,584
247,564
182,835
251,079
179,781
254,361
173,955
257,128
182,466
252,322
181,381
260,401
180,831
270,775
193,464
243,308
162,257
252,491
183,095
234,131
180,718
245,766
172,652
236,075
Repurchase agreements
27 Overnight and continuing
28 Term
296,224
227,932
287,307
234,937
270,661
255,652
283,271
243,006
284,866
242,167
281,537
245,312
275,784
260,551
300,749
237,837
221,264
292,960
282,007
219,421
285,609
232,870
286,300
225,806
Securities borrowed
29 Overnight and continuing
30 Term
61,963
22,150
59,052
23,690
62,159
28,080
59,490
21,843
60,827
24,119
59,239
25,057
60,457
25,908
63,251
27,247
64,400
32,989
64,191
29,679
62,784
30,823
62,399
29,610
Securities loaned
31 Overnight and continuing
32 Term
8,725
1,416
9,304
742
9,271
1,363
9,620
865
9,327
479
9,137
554
9,256
511
10,129
632
9,330
4,057
7,434
387
7,352
410
8,763
396
Collateralized loans
33 Overnight and continuing
8,520
8,547
10,097
8,370
8,051
9,941
10,805
9,642
10,204
9,567
9,692
10,719
MEMO: Matched book
Reverse repurchases
34 Overnight and continuing
35 Term
127,648
197,099
124,310
205,104
123,670
205,613
117,562
209,371
123,866
209,807
123,131
210,788
122,262
214,846
134,835
197,454
114,179
205,149
124,129
193,840
119,955
203,366
123,691
200,344
Repurchases
36 Overnight and continuing
37 Term
149,490
169,284
143,450
181,206
135,345
192,103
135,493
186,484
147,118
187,542
141,217
192,282
133,231
200,9%
151,640
179,090
112,602
208,512
143,575
163,073
148,199
178,622
140,897
175,124
7
1. Data for positions and financing are obtained from reports submitted to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Weekly figures are close-of-business Wednesday data; monthly figures are averages of weekly data. Data for positions and
financing are averages of close-of-business Wednesday data.
2. Securities positions are reported at market value.
3. Net immediate positions include securities purchased or sold (other than
mortgage-backed agency securities) that have been delivered or are scheduled to
be delivered in five business days or less and "when-issued" securities settle on
the issue date of offering. Net immediate positions of mortgage-backed securities
include securities purchased or sold that have been delivered or are scheduled to
be delivered in thirty days or less.
4. Includes securities such as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest only (10s), and principal
only (POs).
5. Futures positions are standardized contracts arranged on an exchange.
Forward positions reflect agreements made in the over-the-counter market that
specify delayed delivery. All futures positions are included regardless of time to
FRASER
Digitized for
delivery. Forward contracts for U.S. Treasury securities and for federal agency
debt securities are included when the time to delivery is more than five business
days. Forward contracts for mortgage-backed securities are included when the
time to delivery is more than thirty days.
6. Overnight financing refers to agreements made on one business day that
mature on the next business day; continuing contracts are agreements that remain
in effect for more than one business day but have no specific maturity and can be
terminated without advance notice by either party; term agreements have a fixed
maturity of more than one business day .
7. Matched-book data reflect financial intermediation activity in which the
borrowing and lending transactions are matched. Matched-book data are included
in the financing breakdowns given above. The reverse repurchase and repurchase
numbers are not always equal because of the "matching" of securities of different
values or types of collateralization.
NOTE. Data for future and forward commercial paper and bankers' acceptances
and term financing of collateralized loans are no longer available because of
insufficient activity.
Federal Finance
1.44
F E D E R A L A N D F E D E R A L L Y S P O N S O R E D CREDIT A G E N C I E S
A31
Debt Outstanding
Millions of dollars, end of period
1991
1987
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department 1
4
Export-Import Bank •
5
Federal Housing Administration
6
Government National Mortgage Association participation
certificates
7
Postal Service
8
Tennessee Valley Authority
United States Railway Association
9
10 Federally sponsored agencies 7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14
Farm Credit Banks 8
15
Student Loan Marketing Association 9
16 Financing Corporation
17 Farm Credit Financial Assistance Corporation"
18 Resolution Funding Corporation
1989
1988
1990
June
July
Aug.
Sept.
Oct.
341,386
381,498
411,805
434,668
429,228r
432,637r
437,942r
436,189r
438,032
37,981
13
11,978
183
35,668
8
11,033
150
35,664
7
10,985
328
42,159
7
11,376
393
40,591
7
11,244
428
40,380
7
11,244
300
40,923
7
11,244
315
42,409
7
11,267r
336
42,638
7
11,267
337
1,615
6,103
18,089
0
0
6,142
18,335
0
0
6,445
17,899
0
0
6,948
23,435
0
0
6,651
22,261
0
0
6,621
22,208
0
0
6,621
22,745
0
0
8,421r
22,378
0
0
8,421
22,606
0
303,405
115,727
17,645
97,057
55,275
16,503
1,200
0
0
345,830
135,836
22,797
105,459
53,127
22,073
5,850
690
0
375,407
136,108
26,148
116,064
54,864
28,705
8,170
847
4,522
392,509
117,895
30,941
123,403
53,590
34,194
8,170
1,261
23,055
388,637r
105,775
28,836
126,606
51,712
36,232
8,170
1,261
29,996
392,257r
106,397
29,559
128,764
51,318
36,742
8,170
1,261
29,996
397,019r
107,469
31,650
128,589
52,056
37,778
8,170
1,261
29,996
393,780r
106,510
31,502
127,460
52,010
36,821
8,170
1,261
29,996
395,394
105,945
31,818
128,594
52,488
37,072
8,170
1,261
29,996
152,417
142,850
134,873
179,083
185,129
186,752
188,920
194,234
192,747
11,972
5,853
4,940
16,709
0
11,027
5,892
4,910
16,955
0
10,979
6,195
4,880
16,519
0
11,370
6,698
4,850
14,055
0
11,238
6,401
4,850
12,881
0
11,238
6,401
4,850
12,828
0
11,238
6,401
4,850
12,373
0
ll,261 r
8,201r
4,850
11,875
0
11,261
8,201
4,820
11,375
0
59,674
21,191
32,078
58,496
19,246
26,324
53,311
19,265
23,724
52,324
18,890
70,8%
52,254
18,894
78,611
51,334
18,832
81,269
51,334
18,846
83,878
50,694
18,597
88,756
48,534
18,599
89,957
MEMO
19 Federal Financing Bank debt 13
20
21
22
23
24
Lending to federal and federally sponsored
Export-Import Bank 3
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
Other Lending'4
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
agencies
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. On-budget after Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown in line 17.
9. Before late 1982, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 22.
10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January
1988 to provide assistance to the Farm Credit System, undertook its first
borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, undertook its first
borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
A32
1.45
DomesticNonfinancialStatistics • March 1992
N E W SECURITY I S S U E S
Tax-Exempt State and Local Governments
Millions of dollars
1991
Type of issue or issuer,
or use
1988
1990
1989
May
1
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
r
114,522
113,646
120,339
14,753
13,804
11,629
15,744
13,240
11,357
17,734
By type of issue
2 General obligation
3 Revenue
30,312
84,210
35,774
77,873
39,610
81,295
4,946
9,807
4,442
9,362
3,900
7,729
5,919
9,825
5,253
7,987
3,088
8,269
6,510
11,224
5,695
10,080
By Type of issuer
4 State
5 Special district or statutory authority
6 Municipality, county, or township
8,830
74,409
31,193
11,819
71,022
30,805
15,149
72,661
32,510
1,890
9,549
3,314
1,529
5,057
7,218
650
7,320
3,659
2,328
8,890
4,526
3,371
6,272
3,597
7,195r
605
3,557
1,171
10,817
5,746
n.a.
n.a.
n.a.
7 Issues for new capital, total
79,665
84,062
103,235
ll,191 r
10,008r
9,513r
12,164r
9,586r
8,967r
13,495r
12,373
By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
15,021
6,825
8,496
19,027
5,624
24,672
15,133
6,870
11,427
16,703
5,036
28,894
17,042
11,650
11,739
23,099
6,117
34,607
2,462
1,642
1,815
3,373
743
3,889
2,684
1,829
2,830
2,455
1,040
2,509
2,214
621
2,077
2,287
425
3,790
1,826
1,498
1,977
5,291
565
4,019
1,244
1,249
2,343
2,862
1,262
3,704
1,524
1,476
2,151
1,386
553
4,014
1,297
2,682
1,915
n.a.
349
4,631
1,740
471
1,813
n.a.
962
4,743
1 All issues, new and refunding
8
9
10
11
12
13
1. Par amounts of long-term issues based on date of sale.
2. Since 1986, has included school districts.
1.46
N E W SECURITY I S S U E S
15,775
SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data/
Bond Buyer Municipal Data Base beginning 1986. Public Securities Association
for earlier data.
U.S. Corporations
Millions of dollars
1991
Type of issue, offering,
or issuer
1988
1989
1990
May
Apr.
1 All issues'
2 Bonds
2
By type of offering
3 Public, domestic
4 Private placement, domestic
5 Sold abroad
410,898
379,535
353,097
321,664
r
June
July
Aug.
Sept.
Oct.
Nov.
339,551
33,588r
37,439r
31,740r
23,181r
35,821r
32,090"
34,787
32,810
299,313
28,275
r
30,021
r
26,122
r
r
29,091r
26,669"
25,923
23,757
r
27,191
n.a.
2,830
r
23,701
n.a.
2,421
r
18,943r
n.a.
1,555
21,22V
n.a.
1,870
23,772
n.a.
2,897
r
23,506"
n.a.
2,416"
22,017
n.a.
1,740
r
20,499
202,026
127,704
23,078r
180,759"
117,420
22,851
189,521
86,988
23,054
24,417
n.a.
3,857
70,306
62,794
10,275
20,834
5,593
183,294
76,656
49,744
10,032
18,688
8,461
158,083
53,110
40,019
12,706
17,521
6,664
169,287
7,613
3,261r
502
2,095r
645r
14,159r
6,614r
1,210
665
2,722r
337
18,474r
4,238
1,773
567
l,644 r
1,838
16,062r
3,827
1,500
697
1,457r
745r
12,273r
8,099r
1,388
809"
1,897r
668
16,230"
6,903r
1,012
231
1,290"
408
16,825"
4,730"
1,209
684
1,530
958
16,812"
4,425
2,044
150
2,939
169
14,030
12 Stocks2
57,802
57,870
40,165
5,313
7,418
5,618
2,682
6,730
5,421
8,864
9,053
By type of offering
13 Public preferred
14 Common
15 Private placement
6,544
35,911
15,346
6,194
26,030
25,647
3,998
19,443
16,736
543
4,771
n.a.
1,392
6,027
n.a.
1,731
3,887
n.a.
203
2,479
n.a.
1,952
4,778
n.a.
666
4,755
n.a.
3,527
5,337
n.a.
3,240
5,813
n.a.
7,608
8,449
1,535
1,898
515
37,798
9,308
7,446
1,929
3,090
1,904
34,028
5,649
10,171
369
416
3,822
19,738
1,796
1,521
416
71
0
1,510
2,291
1,563
277
573
0
2,714
1,909
851
0
471
295
2,091
685
1,427
18
143
46
350
3,167
2,050
56
150
8
1,298
1,842
858
0
55
0
2,666
3,623
2,095
16
320
25
2,622
4,054
2,158
0
174
84
2,583
6
7
8
9
10
11
16
17
18
19
20
21
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures represent gross proceeds of issues maturing in more than one year;
they are the principal amount or number of units calculated by multiplying by the
offering price. Figures exclude secondary offerings, employee stock plans,
investment companies other than closed-end, intracorporate transactions, equities sold abroad, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.
2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCES. IDD Information Services, Inc., the Board of Governors of the
Federal Reserve System, and, before 1989, the U.S. Securities and Exchange
Commission.
Securities Market and Corporate Finance
1.47
O P E N - E N D I N V E S T M E N T COMPANIES
A33
Net Sales and Assets
Millions of dollars
1991
Item 1
1989
1990
Apr.
May
June
July
Aug.
Sept.
Oct. r
Nov.
1 Sales of own shares 2
306,445
345,780
40,356
36,719
33,922
39,329
38,014
37,316
45,218
41,610
2 Redemptions of own shares
3 Net sales
272,165
34,280
289,573
56,207
32,895
7,461
26,972
9,747
27,629
6,293
28,767
10,562
28,128
9,886
26,319
10,997
27,957
17,261
28,398
13,212
ol
4 Assets4
553,871
570,744
647,053
671,852
661,643
6 ).486
712,782
730,426
753,344
753,372
5 Cash 5
6 Other
44,780
509,091
48,638
522,106
52,982
594,071
55,450
616,402
55,057
606,586
55,293
635,193
52,791
659,992
53,884
676,543
59,902
695,492
59,552
693,820
4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership,
which comprises substantially all open-end investment companies registered with
the Securities and Exchange Commission. Data reflect underwritings of new
companies.
1. Data on sales and redemptions exclude money market mutual funds but
include limited-maturity municipal bond funds. Data on asset positions exclude
both money market mutual funds and limited-maturity municipal bond funds.
2. Includes reinvestment of dividends. Excludes reinvestment of capital gains
distributions.
3. Does not includes sales or redemptions resulting from transfers of shares
into or out of money market mutual funds within the same fund family.
1.48
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1989
1991
1990
1989
1988
Account
1990
Q4
Ql
Q2
Q3
Q4
Ql
Q2
Q3
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
365.0
347.5
137.0
210.5
115.3
95.2
351.7
344.5
138.0
206.6
127.9
78.7
319.0
332.3
135.3
197.0
133.7
63.3
334.7
332.8
129.8
203.0
130.7
72.3
340.2
336.6
137.6
199.1
132.3
66.7
339.8
331.6
137.9
193.7
132.5
61.2
299.8
335.1
138.8
196.3
133.8
62.5
296.1
326.1
127.1
199.0
136.2
62.8
302.1
309.1
119.4
189.7
137.8
51.9
303.5
306.2
123.5
182.7
136.7
46.1
306.1
318.2
128.6
189.6
138.1
51.5
7 Inventory valuation
8 Capital consumption adjustment
-27.3
44.7
-17.5
24.7
-14.2
.8
-13.5
15.4
-6.6
10.2
3.8
4.4
-32.6
-2.7
-21.2
-8.8
6.7
-13.6
9.9
-12.6
-4.8
-7.3
SOURCE. Survey of Current Business (U.S. Department of Commerce).
1.50
TOTAL N O N F A R M B U S I N E S S E X P E N D I T U R E S on N e w Plant and Equipment
Billions of dollars; quarterly data at seasonally adjusted annual rates
19911
1990
Industry
1990
1991
19921
19921
Q2
Q3
Q4
Ql
Q2
Q3
Q4
Ql
1 Total nonfarm business
532.61
529.97
558.60
534.55
534.11
530.13
535.50
524.57
527.86
531.96
563.31
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
82.58
110.04
77.04
107.27
79.38
104.68
84.15
110.87
82.48
111.57
79.03
110.69
81.24
109.90
79.69
107.66
74.51
102.54
72.74
108.98
80.58
107.52
9.88
10.06
9.50
9.77
9.97
10.12
9.89
10.09
10.09
10.15
10.58
6.40
8.87
6.20
5.84
9.84
6.50
6.78
12.34
7.12
6.67
9.37
5.90
5.66
9.55
5.87
6.81
7.54
6.82
5.59
11.18
6.48
6.27
10.10
6.68
6.50
9.81
6.52
5.02
8.27
6.32
5.52
12.88
6.41
44.10
23.11
241.43
43.56
22.42
247.44
47.34
24.10
267.35
42.83
21.80
243.18
43.80
23.88
241.32
45.88
24.36
238.87
43.36
23.68
244.19
42.87
21.71
239.50
43.09
23.38
251.42
44.90
20.92
254.66
48.54
22.98
268.28
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2
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. Survey of Current Business (U.S. Department of Commerce).
A34
1.51
DomesticNonfinancialStatistics • March 1992
DOMESTIC F I N A N C E COMPANIES
Assets and Liabilities
Billions of dollars, end of period; not seasonally adjusted
1990
1987
Account
1988
1991
1989
Ql
Q2
Q3
Q4
Ql
Q2
Q3
ASSETS
1
2
3
4
Accounts receivable, gross 1
Consumer
Business
Real estate
388.1
141.1
207.4
39.5
426.2
146.2
236.5
43.5
445.7
140.8
256.0
48.9
452.8
137.9
262.9
52.1
468.8
138.6
274.8
55.4
474.0
140.9
275.4
57.7
486.7
136.0
290.8
59.9
478.9
131.6
290.0
57.3
487.9
133.9
295.5
58.5
487.8
132.5
296.6
58.7
45.3
6.8
50.0
7.3
52.0
7.7
51.9
7.9
54.3
8.2
55.1
8.6
56.6
9.2
57.0
10.3
58.7
10.8
59.6
12.9
7 Accounts receivable, net
8 All other
336.0
58.3
368.9
72.4
386.1
91.6
393.0
92.5
406.3
95.5
410.3
102.8
420.9
99.6
411.6
103.4
418.4
106.1
415.2
111.9
9 Total assets
394.2
441.3
477.6
485.5
501.9
513.1
520.6
515.0
524.5
527.1
16.4
128.4
15.4
142.0
14.5
149.5
13.9
152.9
15.8
152.4
15.6
148.6
19.4
152.7
22.0
141.2
22.7
140.6
24.0
138.1
28.0
137.1
n.a.
n.a.
52.8
31.5
n.a.
n.a.
50.6
137.9
59.8
35.6
n.a.
n.a.
63.8
147.8
62.6
39.4
n.a.
n.a.
70.5
145.7
61.7
40.7
n.a.
n.a.
72.8
153.0
66.1
41.8
n.a.
n.a.
82.0
156.6
68.7
41.6
n.a.
n.a.
82.7
157.0
66.0
42.8
n.a.
n.a.
77.8
162.4
68.0
43.7
n.a.
n.a.
81.7
164.2
72.2
43.0
n.a.
n.a.
87.4
163.4
72.1
42.1
394.2
441.3
477.6
485.5
501.9
513.1
520.6
515.0
524.5
527.1
5 LESS: Reserves for unearned income
Reserves for losses
6
LIABILITIES AND CAPITAL
10 Bank loans
11 Commercial paper
Debt
Other short-term
Long-term
Due to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits
12
13
14
15
16
17
18 Total liabilities and capital
1. Excludes pools of securitized assets.
1.52
DOMESTIC F I N A N C E COMPANIES
Business Credit Outstanding and Net Change 1
Millions of dollars, end of period; seasonally adjusted, except as noted
1991
June
July
Aug.
Sept.
Oct.
Nov.
234,891
258,957
292,638
298,228
300,161
305,024
307,599
310,876
311,632
37,210
28,185
n.a.
39,479
29,627
698
38,110
31,784
951
35,390
32,189
707
35,491
32,194
793
34,665
33,146
833
34,119
34,822
797
34,167
33,989
769
33,664
33,375
746
Wholesale
Automotive
Equipment
All other
Pools of securitized assets 2
32,953
5,971
9,357
n.a.
33,814
6,928
9,985
0
32,283
11,569
9,126
2,950
29,305
10,427
8,851
2,805
29,454
11,344
8,807
2,843
30,637
10,631
8,712
3,508
30,072
10,594
8,695
4,053
31,831
11,075
8,407
4,458
32,292
10,414
8,418
4,639
Leasing
9 Automotive
10 Equipment
11 Pools of securitized assets 2
24,693
57,658
n.a.
26,804
68,240
1,247
39,129
75,626
1,849
41,603
83,961
1,725
43,024
84,311
1,750
44,628
86,145
1,679
45,387
86,732
1,844
45,837
87,701
1,803
45,299
90,079
1,885
12 Loans on commercial accounts receivable and factored
commercial accounts receivable
13 All other business credit
17,687
21,176
18,511
23,623
22,475
26,784
24,040
27,225
23,125
27,025
23,366
27,073
23,204
27,279
23,295
27,544
23,338
27,483
1 Total
Retail financing of installment
2 Automotive
3 Equipment
4 Pools of securitized assets 2
5
6
7
8
sales
Net change (during period)
28,899
24,066
33,681
1,057
1,933
4,862
2,576
3,277
756
1,071
3,111
n.a.
2,269
1,442
-26
-1,369
2,157
253
-615
-501
-30
100
4
86
-825
952
40
-547
1,676
-36
48
-833
-28
-503
-614
-23
Wholesale
Automotive
Equipment
All other
Pools of securitized assets 2
2,883
393
1,028
n.a.
861
957
628
0
-1,532
4,641
-859
2,950
-750
-573
231
-50
149
917
-44
38
1,183
-713
-95
665
-564
-37
-17
545
1,759
481
-289
405
461
-662
11
181
Leasing
9 Automotive
10 Equipment
11 Pools of securitized assets 2
2,596
14,166
n.a.
2,111
10,581
526
12,325
7,386
602
865
-165
25
1,421
350
25
1,604
1,834
-71
759
587
165
450
969
-41
-538
2,378
82
-483
4,135
825
2,446
3,964
3,161
2,268
352
-914
-199
240
47
-162
207
91
264
43
-60
1 Total
Retail financing of installment
2 Automotive
3 Equipment
4 Pools of securitized assets 2
5
6
7
8
sales
12 Loans on commercial accounts receivable and factored
commercial accounts receivable
13 All other business credit
1. Data in this table also appear in the Board's G.20
http://fraser.stlouisfed.org/
release. For ordering address, see inside front cover.
Federal Reserve Bank of St. Louis
(422) monthly statistical
2. Data on pools of securitized assets are not seasonally adjusted,
Real Estate
1.53
A35
MORTGAGE MARKETS Conventional Mortgages on N e w Homes
Millions of dollars, except as noted
1991
Item
1988
1989
1990
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)
Contract rate (percent per year)
Yield (percent per year)
7 OTS series 3
8 HUD series 4
150.0
110.5
75.5
28.0
2.19
8.81
159.6
117.0
74.5
28.1
2.06
9.76
153.2
112.4
74.8
27.3
1.93
9.68
166.7
121.9
74.2
26.8
1.69
9.18
165.1
121.6
75.0
27.0
1.85
9.12
159.0
115.7
74.6
27.1
1.74
9.19
157.8
114.3
73.3
25.9
1.86
9.00
153.4
115.0
76.5
27.5
1.61
8.78
162.6
116.0
73.5
26.4
1.53
8.38
159.1
113.8
73.1
26.4
(.50
8.28
9.18
10.30
10.11
10.21
10.01
10.08
9.46
9.60
9.43
9.46
9.48
9.22
9.30
8.88
9.04
8.76
8.64
8.67
8.53
8.30
10.49
9.83
10.24
9.71
10.17
9.51
9.71
9.04
9.59
8.93
9.14
8.69
9.06
8.60
8.71
8.34
8.69
8.09
8.10
7.81
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (HUD series) 5
10 GNMA securities 6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
Mortgage transactions (during period)
14 Purchases
Mortgage commitments
15 Issued 8
16 To sell9
101,329
19,762
81,567
104,974
19,640
85,335
113,329
21,028
92,302
122,806
21,474
101,332
123,770
21,511
102,259
124,230
21,529
102,701
124,954
21,636
103,318
125,884
21,576
104,308
126,624
21,547
105,077
128,983
21,796
107,187
23,110
22,518
23,959
3,145
3,183
3,069
3,032
3,408
3,299
5,114
n.a.
n.a.
n.a.
n.a.
23,689
5,270
3,032
841
2,975
1,374
3,453
1,051
3,196
762
4,122
917
3,806
569
5,285
78
(during periodf
FEDERAL H O M E LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period)9
17 Total
18 FHA/VA-insured
19 Conventional
15,105
620
14,485
20,105
590
19,516
20,419
547
19,871
23,649
486
23,164
24,061
481
23,581
24,217
475
23,742
23,906
471
23,435
24,922
462
24,460
25,239
468
24,772
n.a.
n.a.
n.a.
Mortgage transactions (during period)
20 Purchases
21 Sales
44,077
39,780
78,588
73,446
75,517
73,817
10,052
10,694
8,649
8,057
9,191
8,803
9,155
9,305
8,644
7,449
10,170
9,545
n.a.
9,929
66,026
88,519
102,401
9,008
8,890
12,430
7,468
6,358
11,594
n.a.
Mortgage commitments
22 Contracted
(during period)10
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Housing Finance
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at
the end of ten years; from Office of Thrift Supervision (OTS).
4. Average contract rates on new commitments for conventional first mortgages; from U.S. Department of Housing and Urban Development (HUD).
5. Average gross yields on thirty-year, minimum-downpayment, first mortgages insured by the Federal Housing Administration (FHA) for immediate
delivery in the private secondary market. Based on transactions on first day of
subsequent month. Large monthly movements in average yields may reflect
market adjustments to changes in maximum permissible contract rates.
6. Average net yields to investors on fully modified pass-through securities
backed by mortgages and guaranteed by the Government National Mortgage
Association (GNMA), assuming prepayment in twelve years on pools of thirtyyear mortgages insured by the Federal Housing Administration or guaranteed by
the Department of Veterans Affairs carrying the prevailing ceiling rate. Monthly
figures are averages of Friday figures from the Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to one- to four-family loan commitments accepted in the Federal National
Mortgage Association's (FNMA's) free market auction system, and through the
FNMA-GNMA tandem plans.
8. Does not include standby commitments issued, but includes standby
commitments converted.
9. Includes participation as well as whole loans.
10. Includes conventional and government-underwritten loans. The Federal
Home Loan Mortgage Corporation's mortgage commitments and mortgage transactions include activity under mortgage securities swap programs, while the
corresponding data for FNMA exclude swap activity.
A36
1.54
Domestic Financial Statistics • March 1992
MORTGAGE D E B T O U T S T A N D I N G 1
Millions of dollars, end of period
1990
Type of holder and property
1 All holders
2
3
4
3
By type of property
One- to four-family residences
Multifamily residences
Commercial
Farm
By type of holder
6 Major financial institutions
7 Commercial banks
8
One- to four-family
9
Multifamily
10
Commercial
11
Farm
12 Savings institutions 3
13
One- to four-family
14
Multifamily
15
Commercial
16
Farm
17
Life insurance companies
18
One- to four-family
19
Multifamily
20
Commercial
21
Farm
22
Finance companies 4
1987
1988
1991
1989
Q2
Q3
Q4
Ql
Q2P
2,986,425
3,270,118
3,556,370
3,760,480
3,816,690
3,857,665
3,876,700
3,925,086
1,962,958
278,899
657,036
87,532
2,201,231
291,405
692,236
85,247
2,429,689
303,416
739,240
84,025
2,619,522
301,789
755,212
83,957
2,669,996
305,903
756,507
84,284
2,709,998
307,378
756,303
83,987
2,730,239
307,932
754,879
83,650
2,781,005
308,457
751,751
83,873
1,665,291
592,449
275,613
32,756
269,648
14,432
860,467
602,408
106,359
150,943
757
212,375
13,226
22,524
166,722
9,903
1,831,472
674,003
334,367
33,912
290,254
15,470
924,606
671,722
110,775
141,433
676
232,863
11,164
24,560
187,549
9,590
1,931,537
767,069
389,632
38,876
321,906
16,656
910,254
669,220
106,014
134,370
650
254,214
12,231
26,907
205,472
9,604
1,940,366
814,598
431,115
38,420
327,930
17,133
860,903
642,110
97,359
120,866
568
264,865
12,740
28,027
214,024
10,075
1,933,303
831,193
445,882
37,900
330,086
17,326
836,047
626,297
94,790
114,430
530
266,063
12,773
28,100
214,585
10,605
1,913,322
844,359
456,010
37,092
334,026
17,231
801,628
600,154
91,806
109,168
500
267,335
12,052
29,406
215,121
10,756
1,895,544
855,889
463,796
37,993
336,606
17,493
776,551
583,694
88,743
103,647
468
263,105
11,480
28,847
212,018
10,760
1,884,850
870,797
476,744
37,930
338,057
18,066
754,834
570,151
85,688
98,557
439
259,218
11,280
28,314
208,838
10,787
29,716
37,846
45,476
47,104
49,784
48,777
48,187
48,972
23 Federal and related agencies
24 Government National Mortgage Association
25
One- to four-family
26
Multifamily
27
Farmers Home Administration
28
One- to four-family
29
Multifamily
30
Commercial
31
Farm
32
Federal Housing and Veterans Administration
33
One- to four-family
34
Multifamily
35
Federal National Mortgage Association
36
One- to four-family
37
Multifamily
38
Federal Land Banks
39
One- to four-family
40
Farm
41
Federal Home Loan Mortgage Corporation
42
One- to four-family
43
Multifamily
192,721
444
25
419
43,051
18,169
8,044
6,603
10,235
5,574
2,557
3,017
96,649
89,666
6,983
34,131
2,008
32,123
12,872
11,430
1,442
200,570
26
26
0
42,018
18,347
8,513
5,343
9,815
5,973
2,672
3,301
103,013
95,833
7,180
32,115
1,890
30,225
17,425
15,077
2,348
209,498
23
23
0
41,176
18,422
9,054
4,443
9,257
6,087
2,875
3,212
110,721
102,295
8,426
29,640
1,210
28,430
21,851
18,248
3,603
227,818
21
21
0
41,175
18,434
9,361
4,545
8,835
6,792
3,054
3,738
112,855
103,431
9,424
29,595
1,741
27,854
19,979
17,316
2,663
242,695
21
21
0
41,269
18,476
9,477
4,608
8,708
7,938
3,248
4,690
113,718
103,722
9,996
29,441
1,766
27,675
20,508
17,810
2,697
250,761
20
20
0
41,439
18,527
9,640
4,690
8,582
8,801
3,593
5,208
116,628
106,081
10,547
29,416
1,838
27,577
21,857
19,185
2,672
263,079
20
20
0
41,307
18,522
9,720
4,715
8,350
9,492
3,600
5,891
119,196
108,348
10,848
29,253
1,884
27,368
22,111
19,460
2,651
275,394
20
20
0
41,430
18,521
9,898
4,750
8,261
10,210
3,729
6,480
122,806
111,560
11,246
29,086
1,936
27,150
22,312
19,655
2,658
44 Mortgage pools or trusts 6
45
Government National Mortgage Association
46
One- to four-family
47
Multifamily
48
Federal Home Loan Mortgage Corporation
49
One- to four-family
50
Multifamily
51
Federal National Mortgage Association
52
One- to four-family
53
Multifamily
54
Farmers Home Administration
55
One- to four-family
56
Multifamily
57
Commercial
58
Farm
718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
121
0
63
61
811,847
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
0
38
40
946,766
368,367
358,142
10,225
272,870
266,060
6,810
228,232
219,577
8,655
80
21
0
26
33
1,024,893
385,456
374,960
10,496
295,340
287,232
8,108
263,330
254,811
8,519
72
19
0
24
30
1,062,729
394,859
384,474
10,385
301,797
293,721
8,077
281,806
273,335
8,471
70
18
0
24
29
1,106,634
403,613
391,505
12,108
316,359
308,369
7,990
299,833
291,194
8,639
66
17
0
24
26
1,139,730
409,929
397,631
12,298
328,305
319,978
8,327
312,101
303,554
8,547
62
14
0
23
24
1,182,594
418,421
405,877
12,544
341,132
332,624
8,509
331,089
322,444
8,645
13
13
0
0
0
59 Individuals and others 7
60
One- to four-family
61
Multifamily
62
Commercial
Farm
63
410,116
246,061
80,977
63,057
20,021
426,229
259,971
79,209
67,618
19,431
468,569
294,517
81,634
73,023
19,395
567,403
382,343
82,040
83,557
19,463
577,964
390,657
83,544
84,350
19,412
586,948
398,889
84,205
84,538
19,316
578,347
391,623
82,355
85,182
19,187
582,248
395,483
81,906
85,690
19,170
1. Based on data from various institutional and governmental sources, with
figures for some quarters estimated in part by the Federal Reserve. Multifamily
debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by
bank trust departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by institutions insured by the Federal Savings and Loan Insurance
Corporation include loans in process and other contra-assets (credit balance
accounts that must be subtracted from the corresponding gross asset categories to
yield net asset levels).
4. Assumed to be entirely loans on one- to four-family residences.
5. Securities guaranteed by the Farmers Home Administration (FmHA) sold to
the Federal Financing Bank were reallocated from FmHA mortgage pools to
FmHA mortgage holdings in 1986:4 because of accounting changes by the FmHA.
6. Outstanding principal balances of mortgage-backed securities insured or
guaranteed by the agency indicated. Includes private pools, which are not shown
as a separate line item.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.
Consumer Installment Credit
1.55
A37
C O N S U M E R I N S T A L L M E N T CREDIT Total Outstanding and Net Change 1
Millions of dollars, amounts outstanding, end of period
1991
Holder and type of credit
1989
1990
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct. r
Nov.
Seasonally adjusted
1 Total
2
3
4
5
Automobile
Revolving
Mobile home
Other
718,863
735,102
732,442
733,621
732,289
730,591
729,962
729,108
729,151
730,817
730,844
290,676
199,082
22,471
206,633
284,585
220,110
20,919
209,487
280,689
224,817
20,123
206,813
279,746
225,994
20,098
207,782
276,494
227,301
19,796
208,697
274,496
227,737
19,907
208,451
273,565
228,199
19,615
208,582
271,906
229,453
19,495
208,253
270,223
232,070
18,892
207,966
270,013
233,661
18,943
208,200
269,061
234,675
19,068
208,040
Not seasonally adjusted
6 Total
730,901
748,300
725,462
727,907
727,717
728,023
727,754
731,531
732,183
731,222
732,955
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets
342,770
140,832
93,114
44,154
57,253
3,935
48,843
347,466
137,450
92,911
43,552
45,616
4,822
76,483
335,754
131,552
90,772
38,497
42,491
4,296
82,100
336,425
133,462
91,413
37,817
41,707
4,357
82,726
334,746
134,045
91,549
36,782
40,764
4,507
85,324
333,442
133,903
91,924
36,702
39,827
4,591
87,634
334,273
134,120
92,017
36,392
39,012
4,712
87,228
335,662
135,509
92,843
37,296
37,893
4,857
87,471
335,509
132,471
93,305
37,281
37,036
4,753
91,828
335,258
131,778
92,746
37,359
37,424
4,529
92,128
334,259
130,679
92,468
38,651
37,010
4,388
95,500
By major type of credit3
14 Automobile
15 Commercial banks
16 Finance companies
17 Pools of securitized assets 2
290,705
126,288
82,721
18,235
284,813
126,259
74,396
24,537
277,798
123,411
69,233
27,755
277,508
122,710
70,500
26,875
275,582
121,631
69,689
27,085
275,018
121,605
70,304
26,039
274,222
121,319
70,444
25,609
274,190
120,577
71,571
25,071
273,358
119,730
69,853
26,812
272,092
119,276
69,364
26,803
269,868
118,502
67,907
27,123
18 Revolving
19 Commercial banks
20
Retailers
21
Gasoline companies
Pools of securitized assets
22
210,310
130,811
39,583
3,935
23,477
232,370
132,433
39,029
4,822
44,335
221,400
124,619
34,179
4,296
46,722
222,627
126,009
33,513
4,357
47,116
224,301
126,047
32,458
4,507
49,667
225,596
124,106
32,381
4,591
52,897
226,145
124,645
32,076
4,712
53,094
229,224
125,787
32,962
4,857
54,017
231,281
125,524
32,964
4,753
56,438
231,862
126,234
33,055
4,529
56,290
235,684
125,734
34,319
4,388
59,459
22,240
9,112
4,716
20,666
9,763
5,252
20,030
9,632
5,328
20,052
9,565
5,573
19,721
9,386
5,595
19,875
9,652
5,652
19,639
9,552
5,669
19,468
9,534
5,700
18,996
9,614
5,300
19,026
9,600
5,358
19,030
9,662
5,401
207,646
76,559
53,395
4,571
7,131
210,451
79,011
57,801
4,523
7,611
206,234
78,092
56,991
4,318
7,603
207,720
78,141
57,388
4,304
8,735
208,113
77,682
58,761
4,324
8,572
207,534
78,079
57,947
4,321
8,698
207,748
78,757
58,007
4,316
8,525
208,649
79,764
58,238
4,334
8,383
208,548
80,641
57,318
4,317
8,578
208,242
80,148
57,056
4,304
9,035
208,373
80,361
57,371
4,332
8,918
/
8
9
10
11
12
13
23 Mobile home
24
Commercial banks
25
Finance companies
26 Other
27 Commercial banks
28
Finance companies
29
Retailers
30
Pools of securitized assets 2
1. The Board's series on amounts of credit covers most short- and intermediate-term credit extended to individuals that is scheduled to be repaid (or has the
option of repayment) in two or more installments.
Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering address, see inside front cover.
2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.
A38
1.56
DomesticNonfinancialStatistics • March 1992
T E R M S OF C O N S U M E R I N S T A L L M E N T CREDIT 1
Percent per year, except as noted
1991
Item
1988
1989
1990
May
June
July
Aug.
Sept.
Oct.
Nov.
INTEREST RATES
1
2
3
4
Commercial banks2
48-month new car 3
24-month personal
i 20-month mobile home 3
Credit card
Auto finance companies
5 New car
6 Used car
10.85
14.68
13.54
17.78
12.07
15.44
14.11
18.02
11.78
15.46
14.02
18.17
11.28
15.16
13.80
18.22
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
11.06
15.24
13.73
18.24
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10.61
14.88
13.37
18.19
12.60
15.11
12.62
16.18
12.54
15.99
12.95
15.85
12.77
15.74
12.55
15.66
12.40
15.63
12.38
15.60
12.23
15.46
10.79
15.06
56.2
46.7
54.2
46.6
54.6
46.1
55.5
47.3
55.5
47.3
55.5
47.4
55.4
47.2
55.4
47.2
55.4
47.0
54.1
47.0
94
98
91
97
87
95
87
96
88
97
88
%
88
97
87
96
88
97
88
%
11,663
7,824
12,001
7,954
12,071
8,289
12,204
8,873
12,343
8,916
12,572
8,989
12,518
8,902
12,460
8,996
12,684
9,077
13,245
9,029
O T H E R TERMS 4
Maturity (months)
7 New car
8 Used car
Loan-to-value
9 New car
10 Used car
ratio
Amount financed (dollars)
11 New car
12 Used car
1. Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering address, see inside front cover.
2. Data are available only for the second month of each quarter.
3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies.
Flow of Funds
1.57
A39
F U N D S R A I S E D IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data at seasonally adjusted annual rates
1991
1990
1989
Instrument or sector
Q4
Ql
Q2
Q3
Q4
Ql
Q2
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors ..
836.9
687.0
760.8
678.2
639.3
620.2
803.4
596.9
657.7
499.3
411.4
462.6
By lending sector and instrument
7 U.S. government
3 Treasury securities
4
Agency issues and mortgages
215.0
214.7
.4
144.9
143.4
1.5
157.5
140.0
17.4
151.6
150.0
1.6
272.5
264.4
8.2
185.0
189.6
-4.6
247.3
217.8
29.6
228.2
222.9
5.4
286.1
287.5
-1.3
328.4
329.4
-1.0
204.7
228.7
-24.0
241.8
248.0
-6.2
5 Private
621.9
542.1
603.3
526.6
366.8
435.2
556.1
368.7
371.6
170.9
206.7
220.9
465.8
22.7
126.8
316.3
218.7
33.5
73.6
-9.5
156.1
58.0
66.9
-9.3
40.5
453.2
49.3
79.4
324.5
234.9
24.4
71.6
-6.4
88.9
33.5
10.0
2.3
43.2
459.2
49.8
102.9
306.5
231.0
16.7
60.8
-2.1
144.1
50.2
39.8
11.9
42.2
379.8
30.4
73.7
275.7
218.0
16.4
42.7
-1.5
146.8
39.1
39.9
20.4
47.4
298.2
20.1
49.7
228.3
212.6
6.5
9.3
.0
68.7
14.3
1.3
9.7
43.4
347.0
19.1
87.4
240.5
214.3
9.5
19.9
-3.2
88.2
44.1
7.7
-6.9
43.3
391.0
12.4
30.2
348.4
298.7
22.7
26.5
.5
165.1
30.4
16.3
69.6
48.8
309.3
24.5
68.8
216.0
220.0
-15.5
13.4
-1.9
59.4
2.8
15.4
-6.2
47.4
275.5
30.0
32.8
212.7
184.7
16.2
9.9
2.0
96.0
21.3
-2.5
17.3
60.0
216.8
13.5
67.1
136.3
147.1
2.7
-12.8
-.7
-45.9
2.5
-24.2
- 41.7
17.5
230.5
11.3
80.6
138.6
136.8
4.6
-3.0
.2
-23.8
-23.6
14.2
5.1
-19.5
292.7
27.5
95.3
169.9
176.6
2.9
-8.0
-1.6
-71.9
-20.4
-51.6
-22.6
22.6
36.2
293.0
292.7
-16.3
99.2
209.7
48.8
302.2
191.0
-10.6
77.9
123.7
45.6
314.9
242.8
-7.5
65.7
184.6
29.6
285.0
211.9
1.6
50.8
159.5
17.2
254.0
95.6
2.6
13.7
79.4
16.5
291.8
126.9
8.9
35.0
83.1
16.0
377.2
162.9
6.2
45.5
111.2
17.2
257.5
94.0
-10.8
3.5
101.3
28.1
227.3
116.2
11.7
19.6
84.8
7.6
154.0
9.4
3.1
-14.0
20.2
12.2
162.6
32.0
4.7
-18.7
46.0
16.8
199.7
4.3
-1.6
-3.6
9.5
25 Foreign net borrowing in United States
76
77
28
Open market paper
29
U.S. government loans
9.7
3.1
-1.0
11.5
-3.9
4.5
7.4
-3.6
2.1
-1.4
6.3
6.9
-1.8
8.7
-7.5
10.9
5.3
-.1
13.3
-7.5
23.5
21.6
-2.9
12.3
-7.5
16.9
-1.0
-4.3
22.2
.1
2.0
32.7
-6.9
-16.4
-7.3
41.2
25.8
-1.8
23.1
-5.9
29.7
1.2
1.9
27.3
-.8
21.1
26.5
-4.7
15.3
-16.0
50.6
8.9
10.3
45.5
-14.1
-53.0
22.0
-7.1
-52.0
-15.8
30 Total domestic plus foreign
846.6
691.5
767.1
689.1
662.8
637.1
805.5
638.1
687.3
520.4
462.0
409.7
6
7
8
9
10
11
17
By instrument
Debt capital instruments
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
N
14
N
16
17
18
19
70
7.1
77
23
24
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
By borrowing sector
State and local government
Household
Nonfinancial business
Nonfarm noncorporate
Corporate
Financial sectors
31 Total net borrowing by financial sectors
285.1
300.2
247.6
205.5
202.1
187.3
190.2
170.4
180.0
267.7
102.6
95.4
By instrument
3 ? U.S. government-related
33
Sponsored-credit-agency securities
34 Mortgage pool securities
35
Loans from U.S. government
154.1
15.2
139.2
-.4
171.8
30.2
142.3
-.8
119.8
44.9
74.9
.0
151.0
25.2
125.8
.0
167.4
17.1
150.3
-.1
156.4
-4.7
161.1
.0
171.7
9.7
162.0
.0
184.0
17.1
166.8
.0
139.2
22.3
116.9
.0
174.6
19.5
S55.5
-.5
155.8
14.5
141.3
.0
150.6
-22.4
173.0
.0
36
37
38
39
40
41
131.0
82.9
.1
4.0
24.2
19.8
128.4
78.9
.4
-3.2
27.9
24.4
127.8
51.7
.3
1.4
54.8
19.7
54.5
36.8
.0
1.8
26.9
-11.0
34.7
49.8
.3
.7
8.6
-24.7
30.9
39.6
-.4
4.2
36.3
-48.8
18.5
33.5
.1
-2.3
9.2
-22.0
-13.5
71.2
.2
-.6
-53.4
-30.9
40.8
18.0
.3
2.0
51.0
-30.5
93.1
76.7
.5
3.8
27.6
-15.5
-53.2
39.5
.1
1.0
-65.9
-27.9
-55.2
63.2
-.1
-5.8
-59.7
-52.9
14.9
139.2
131.0
-3.6
15.2
20.9
4.2
54.7
.8
39.0
29.5
142.3
128.4
6.2
14.3
19.6
8.1
40.8
.3
39.1
44.9
74.9
127.8
-3.0
5.2
19.9
1.9
67.7
3.5
32.5
25.2
125.8
54.5
-1.4
6.2
-14.1
-1.4
46.3
-1.9
20.8
17.0
150.3
34.7
-1.1
-27.7
-31.2
-.5
57.1
-1.9
40.1
-4.7
161.1
30.9
-.7
-3.9
-56.2
.7
52.6
.1
38.2
9.7
162.0
18.5
-5.7
-8.0
-15.8
-8.3
28.2
-3.8
32.1
17.1
166.8
-13.5
-13.9
-32.1
-53.5
6.5
27.0
-2.7
55.1
22.3
116.9
40.8
-5.6
-40.4
-31.9
-4.2
97.3
-1.8
27.5
19.0
155.5
93.1
20.9
-30.2
-23.4
4.0
75.7
.6
45.6
14.5
141.3
-53.2
-22.0
-18.5
-29.5
-2.2
-9.2
-.7
28.9
-22.4
173.0
-55.2
-16.6
-7.1
-55.6
-1.4
-11.7
-.2
37.3
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
By borrowing sector
42 Sponsored credit agencies
43
44
45
Commercial banks
46
Bank affiliates
47
Savings and loan associations
48
Mutual savings banks
49
Finance companies
50 Real estate investment trusts (REITs)
51
Securitized credit obligation (SCO) issuers
A40
DomesticNonfinancialStatistics • March 1992
1.57—Continued
1989
Transaction category or sector
1986
1987
1988
1989
1991
1990
1990
Q4
QL
Q2
Q3
Q4
QL
Q2
All sectors
52 Total net borrowing, all sectors
53
54
55
56
57
58
59
60
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
61 MEMO: U.S. government, cash balance
Totals net of changes in U.S. government cash balances
62 Net borrowing by domestic nonfinancial sectors
63 Net borrowing by U.S. government
1,131.7
991.7
1,014.7
894.5
864.9
824.4
995.7
808.5
867.3
788.1
564.7
505.1
369.5
22.7
212.8
316.4
58.0
69.9
26.4
56.1
317.5
49.3
165.7
324.9
33.5
3.2
32.3
65.5
277.2
49.8
161.5
306.7
50.2
39.4
75.4
54.4
302.6
30.4
115.8
275.7
39.1
41.5
60.6
28.9
440.0
20.1
121.1
228.6
14.3
-.9
30.7
11.1
341.4
19.1
125.9
240.1
44.1
7.5
51.6
-5.4
419.0
12.4
96.4
348.5
30.4
7.1
62.3
19.5
412.2
24.5
165.8
216.2
2.8
13.0
-36.6
10.6
425.4
30.0
52.0
213.0
21.3
1.4
95.7
28.6
503.4
13.5
170.3
136.7
2.5
-25.1
1.2
-14.5
360.5
11.3
129.0
138.7
-23.6
25.6
-15.2
-61.6
392.4
27.5
180.5
169.8
-20.4
-64.5
-134.3
-46.0
.0
-7.9
10.4
-5.9
8.3
-7.3
22.9
-38.1
21.1
27.4
51.6
-64.3
836.9
215.0
694.9
152.8
750.4
147.1
684.1
157.5
631.0
264.2
627.6
192.4
780.5
224.4
635.0
266.3
636.6
265.1
471.9
301.0
359.8
153.1
526.9
306.1
External corporate equity funds raised in United States
64 Total net share issues
65 Mutual funds
66 All other
67 Nonfinancial corporations
68 Financial corporations
69 Foreign shares purchased in United States
86.8
10.9
-124.2
-63.7
9.6
14.9
-9.2
48.0
-24.1
23.6
108.0
173.9
159.0
-72.2
-85.0
11.6
1.2
73.9
-63.0
-75.5
14.6
-2.1
1.1
-125.3
-129.5
3.3
.9
41.3
-105.1
-124.2
2.4
16.7
61.4
-51.7
-63.0
4.3
6.9
72.4
-57.6
-79.3
4.5
17.2
47.8
-57.0
-69.0
10.3
1.7
71.0
-22.9
-48.0
1.3
23.8
46.1
-70.2
-74.0
4.8
-1.0
80.6
-56.9
-61.0
.9
3.2
87.8
20.2
-12.0
3.4
28.8
122.2
51.7
11.0
4.3
36.4
Flow of Funds
1.58
A41
DIRECT A N D INDIRECT SOURCES OF F U N D S TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data at seasonally adjusted annual rates
1989
Transaction category or sector
1986
1987
1988
1989
Q4
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
2 Total net advances by federal agencies and foreign
1991
1990
1990
Ql
Q2
Q3
Q4
Ql
Q2
836.9
687.0
760.8
678.2
639.3
620.2
803.4
596.9
657.7
499.3
411.4
462.6
280.2
248.8
210.7
187.6
261.7
203.8
221.8
299.4
325.6
200.0
274.7
251.0
3
4
5
6
By instrument
U.S. government securities
Residential mortgages
Federal Home Loan Bank advances to thrifts
Other loans and securities
69.4
136.3
19.8
54.7
70.1
139.1
24.4
15.1
85.2
86.3
19.7
19.4
30.7
137.9
-11.0
30.0
74.4
184.1
-24.7
27.8
27.1
178.3
-48.8
47.1
4.4
197.5
-22.0
41.8
111.9
191.5
-30.9
26.8
139.1
160.8
-30.5
56.1
42.1
186.7
-15.5
-13.3
122.6
176.0
-27.9
4.0
74.4
211.4
-52.9
18.1
7
8
9
10
By lender
U.S. government
Sponsored credit agencies and mortgage pools
Monetary authority
Foreign
9.7
153.3
19.4
97.8
-7.9
169.3
24.7
62.7
-9.4
112.0
10.5
97.6
-2.4
125.3
-7.3
72.1
33.6
166.7
8.1
53.2
5.7
158.4
-4.6
44.2
37.7
187.4
-6.3
3.0
36.2
163.1
40.4
59.8
63.3
165.6
24.4
72.3
-2.7
150.8
-25.9
77.9
30.3
158.7
53.3
32.4
32.1
149.0
12.2
57.7
154.1
9.7
171.8
4.5
119.8
6.3
151.0
10.9
167.4
23.5
156.4
16.9
171.7
2.0
184.0
41.2
139.2
29.7
174.6
21.1
155.8
50.6
150.6
-53.0
309.2
Agency and foreign borrowing not included in line I
11 Sponsored credit agencies and mortgage pools
12 Foreign
13 Total private domestic funds advanced
720.5
614.5
676.2
652.5
568.5
589.7
755.3
522.7
501.0
495.0
343.2
14
15
16
17
18
19
300.1
22.7
89.7
115.9
212.0
19.8
247.4
49.3
66.9
120.2
155.2
24.4
192.1
49.8
91.3
161.3
201.4
19.7
271.9
30.4
66.1
96.5
176.6
-11.0
365.6
20.1
65.4
35.0
57.7
-24.7
314.3
19.1
70.6
45.5
91.5
-48.8
414.6
12.4
53.4
123.8
129.2
-22.0
300.3
24.5
82.6
13.0
71.4
-30.9
286.2
30.0
31.8
40.0
82.4
-30.5
461.4
13.5
93.8
-37.0
-52.2
-15.5
317.9
237.8
27.5
11.3
94.1
66.0
-32.0
-34.5
34.6 -151.2
-52.9
-27.9
730.0
528.4
562.3
511.1
394.6
561.9
444.8
266.4
366.7
500.4
198.1
107.6
160.1
264.2
135.4
136.8
179.7
76.6
156.3
120.4
198.7
86.9
184.3
177.3
118.7
-90.9 -153.4 -201.9
205.1
177.9
182.4
374.5
246.8
246.9
184.1
-56.6
160.0
157.3
By source of funds
25 Private domestic deposits and repurchase agreements . . .
76 Credit market borrowing
77
78
79
30
Insurance and pension reserves
31
277.1
131.0
321.8
12.9
1.7
119.9
187.3
162.8
128.4
237.1
43.7
-5.8
135.4
63.9
229.2
127.8
205.3
9.3
7.3
177.6
11.0
225.2
54.5
231.4
-9.9
-3.4
140.5
104.2
60.5
34.7
299.4
24.0
5.3
159.9
110.2
208.0
30.9
323.1
-20.6
5.0
193.9
144.7
120.2
18.5
306.1
39.9
13.1
137.9
115.2
28.4
-13.5
251.6
7.8
-13.4
211.9
45.3
60.1
40.8
265.9
103.5
18.2
144.2
.0
Private domestic nonfinancial investors
37 Direct lending in credit markets
33
U.S. government securities
34
State and local obligations
35
Corporate and foreign bonds
36
Open market paper
37
Other loans and mortgages
121.5
27.0
-19.9
52.9
9.9
51.7
214.6
86.0
61.8
23.3
15.8
27.6
241.7
129.0
53.5
-9.4
36.4
32.2
195.9
134.3
28.4
.7
5.4
27.1
208.6
148.1
-1.0
17.5
18.2
25.7
58.7
65.8
12.8
14.6
-64.6
30.1
329.0
198.0
-1.5
38.9
60.6
33.0
242.8
154.0
10.0
19.7
33.8
25.2
175.0
165.2
15.6
-74.7
16.8
52.1
87.7
75.3
-27.9
86.1
-38.4
-7.4
104.2
85.2
1.8
9.1
-7.7
15.9
162.4
156.4
13.2
57.4
-67.8
3.3
38 Deposits and currency
39
40
Checkable deposits
41
Small time and savings accounts
47
Money market fund shares
43
Security repurchase agreements
44
45
Deposits in foreign countries
297.5
14.4
96.4
120.6
43.2
-3.2
20.2
5.9
179.3
19.0
-.9
76.0
28.9
37.2
21.6
-2.5
232.8
14.7
12.9
122.4
20.2
40.8
32.9
-11.2
241.3
11.7
1.5
100.5
85.2
23.1
14.9
4.4
90.1
22.6
.6
59.4
61.8
-46.8
-14.5
7.0
230.6
10.1
65.8
109.1
65.6
-13.4
-19.2
12.4
137.3
26.1
1.4
107.7
72.2
-26.4
-34.7
-8.9
64.3
23.0
-18.9
21.5
4.7
-1.8
22.8
12.8
95.9
32.2
13.4
59.6
110.9
-97.9
-25.8
3.6
62.9
9.1
6.4
48.9
59.3
—61.2
-20.1
20.6
236.2
46.1
31.9
101.0
128.5
-2.3
-42.4
-26.6
-41.8
5.7
-7.3
16.7
-29.8
-52.5
-1.1
26.5
419.0
393.9
474.5
437.2
298.7
289.3
466.3
307.0
270.9
150.6
340.4
120.6
33.1
101.3
110.7
36.0
86.0
106.4
27.5
83.2
106.9
27.2
78.3
62.2
39.5
69.4
77.2
32.0
95.3
23.6
27.5
58.9
42.9
46.9
51.0
67.5
47.4
73.2
175.8
38.4
101.1
22.8
59.4
54.1
76.2
61.3
29.6
-66.9
86.8
159.0
-72.2
50.9
35.9
10.9
73.9
-63.0
32.0
-21.2
-124.2 -63.7
1.1
41.3
-125.3 -105.1
-2.9
17.2
-121.4 -80.9
9.6
61.4
-51.7
31.9
-22.3
14.9
72.4
-57.6
76.9
-62.1
-9.2
47.8
-57.0
41.1
-50.3
48.0
71.0
-22.9
72.8
-24.8
-24.1
46.1
-70.2
-48.2
24.1
23.6
80.6
-56.9
61.9
-38.3
108.0
87.8
20.2
44.0
64.1
173.9
122.2
51.7
73.4
100.6
U.S. government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
LESS: Federal Home Loan Bank advances
70 Total credit market funds advanced by private financial
institutions
71
77
73
24
By tending institution
Commercial banks
Savings institutions
Insurance and pension funds
Other financial institutions
46 Total of credit market instruments, deposits, and
MEMO
47 Public holdings as percent of total
48 Private financial intermediation (percent)
49 Total foreign funds
Corporate equities not included above
50
51
Mutual fund shares
5?
Other equities
53 Acquisitions by financial institutions
54
NOTES BY LINE NUMBER.
1. Line 1 of table 1.57.
2. Sum of lines 3 - 6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
13. Line 1 less line 2 plus lines 11 and 12. Also line 20 less line 26 plus line 32.
Also sum of lines 28 and 47 less lines 40 and 46.
18. Includes farm and commercial mortgages.
25. Line 38 less lines 39 and 45.
26. Excludes equity issues and investment company shares. Includes line 19.
28. Foreign deposits at commercial banks, plus bank borrowings from foreign
branches, plus liabilities of foreign banking agencies to foreign affiliates, less
claims on foreign affiliates and deposits by banking institutions in foreign banks.
29. Demand deposits and note balances at commercial banks.
FRASER
Digitized for
185.8
91.6
15.7
134.2
101.7
56.9
132.1
-210.4 -168.6 -178.0 -154.8 -147.6
134.9
125.4
187.5
150.6
231.6
88.6
80.9
470.9
246.1
113.1
216.7 - 7 4 . 0
33.2
-55.2
93.1 - 5 3 . 2
220.8
22.3
374.1
43.8 -124.7
-55.1
30.1 - 3 9 . 2
3.4
118.8
60.1
145.6
265.8
280.2 -111.7
30. Excludes investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 13 less line 20 plus line 26.
33-37. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 37 includes mortgages.
39. Mainly an offset to line 9.
46. Sum of lines 32 and 38, or line 13 less line 27 plus lines 39 and 45.
47. Line 2 divided by line 1.
48. Line 20 divided by line 13.
49. Sum of lines 10 and 28.
50. 52. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A42
1.59
DomesticNonfinancialStatistics • March 1992
S U M M A R Y OF CREDIT M A R K E T D E B T O U T S T A N D I N G
Billions of dollars, end of period
1989
Transaction category or sector
1986
1987
1988
1990
1991
1989
Q4
Q2
Qi
Q3
Q4
Ql
Q2
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
7,646.3
8,343.9
9,096.0
9,805.2
9,805.2
10,073.3
10,226.8
10,386.9
10,557.3
10,615.5
10,735.3
By lending sector and instrument
2 U.S. government
3 Treasury securities
4
Agency issues and mortgages
1,815.4
1,811.7
3.6
1,960.3
1,955.2
5.2
2,117.8
2,095.2
22.6
2,269.4
2,245.2
24.2
2,269.4
2,245.2
24.2
2,360.9
2,329.3
31.6
2,401.7
2,368.8
32.9
2,470.2
2,437.6
32.6
2,568.9
2,536.5
32.4
2,624.7
2,598.4
26.4
2,667.7
2,642.9
24.8
5 Private
5,831.0
6,383.6 ,
6,978.2
7,535.8
7,535.8
7,712.5
7,825.1
7,916.7
7,988.4
7,990.8
8,067.7
6
7
8
9
10
11
12
13
14
15
16
17
18
By instrument
Debt capital instruments
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
3,962.7
679.1
669.4
2,614.2
1,720.8
246.2
551.4
95.8
1,868.2
659.8
666.0
62.9
479.6
4,427.9
728.4
748.8
2,950.7
1,943.1
270.0
648.7
88.9
1,955.7
693.2
673.3
73.8
515.3
4,886.4
790.8
851.7
3,243.8
2,173.9
286.7
696.4
86.8
2,091.9
743.5
713.1
85.7
549.6
5,283.3
821.2
925.4
3,536.6
2,404.3
304.4
742.6
85.3
2,252.6
790.6
763.0
107.1
591.9
5,283.3
821.2
925.4
3,536.6
2,404.3
304.4
742.6
85.3
2,252.6
790.6
763.0
107.1
591.9
5,451.9
822.2
933.0
3,696.7
2,558.3
304.5
750.0
83.9
2,260.6
782.3
748.5
126.0
603.7
5,533.8
827.2
950.2
3,756.4
2,619.5
300.5
752.5
84.0
2,291.3
789.4
756.1
128.7
617.1
5,608.8
837.9
958.4
3,812.6
2,670.0
304.5
753.8
84.3
2,307.9
798.7
753.6
131.8
623.8
5,669.9
841.3
975.1
3,853.4
2,710.0
306.0
753.5
84.0
2,318.5
808.9
757.4
116.9
635.4
5,709.8
842.2
995.3
3,872.3
2,730.1
306.5
752.0
83.6
2,281.0
782.3
749.0
119.9
629.9
5,787.5
847.6
1,019.1
3,920.9
2,781.0
307.1
748.9
83.9
2,280.1
784.2
740.3
118.4
637.3
19
20
21
22
23
24
By borrowing sector
State and local government
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
510.1
2,596.1
2,724.8
156.6
997.6
1,570.6
558.9
2,879.1
2,945.6
145.5
1,075.4
1,724.6
604.5
3,191.5
3,182.2
137.6
1,145.1
1,899.5
634.1
3,501.8
3,400.0
139.2
1,195.9
2,064.8
634.1
3,501.8
3,400.0
139.2
1,195.9
2,064.8
633.8
3,654.8
3,423.9
137.3
1,208.3
2,078.3
636.9
3,726.5
3,461.7
138.7
1,208.7
2,114.3
647.1
3,790.3
3,479.4
141.6
1,209.0
2,128.7
649.1
3,847.2
3,492.2
140.5
1,209.6
2,142.1
650.2
3,853.3
3,487.3
139.3
1,205.9
2,142.1
652.8
3,911.3
3,503.6
143.0
1,204.6
2,155.9
238.3
244.6
253.9
261.5
261.5
261.7
273.0
279.4
284.9
297.2
285.1
74.9
26.9
37.4
99.1
82.3
23.3
41.2
97.7
89.2
21.5
49.9
93.2
94.5
21.4
63.0
82.6
94.5
21.4
63.0
82.6
103.3
18.9
59.3
80.2
108.4
19.3
65.1
80.2
108.9
19.8
71.5
79.3
116.1
18.5
75.3
75.0
118.9
20.4
87.0
70.9
123.0
19.5
74.0
68.6
7,884.7
8,588.5
9,349.9
10,066.8
10,066.8
10,335.0
10,499.8
10,666.3
10,842.2
10,912.8
11,020.5
25 Foreign credit market debt held in
United States
26
27
28
29
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
30 Total credit market debt owed by nonfinancial
sectors, domestic and foreign
Financial sectors
31 Total credit market debt owed by
financial sectors
32
33
34
35
36
37
38
39
40
41
By instrument
U.S. government-related
Sponsored credit-agency securities
Mortgage pool securities
Loans from U.S. government
Private
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
By borrowing sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private financial sectors
45 Commercial banks
46 Bank affiliates
47 Savings and loan associations
48 Mutual savings banks
49 Finance companies
50 Real estate investment trusts (REITs)
51 Securitized credit obligation (SCO) issuers...
1,529.8
1,836.8
2,084.4
2,322.4
2,322.4
2,359.0
2,405.5
2,448.8
2,527.7
2,540.1
2,567.3
810.3
273.0
531.6
5.7
719.5
287.4
2.7
36.1
284.6
108.6
978.6
303.2
670.4
5.0
858.2
366.3
3.1
32.8
322.9
133.1
1,098.4
348.1
745.3
5.0
986.1
418.0
3.4
34.2
377.7
152.8
1,249.3
373.3
871.0
5.0
1,073.0
482.7
3.4
36.0
409.1
141.8
1,249.3
373.3
871.0
5.0
1,073.0
482.7
3.4
36.0
409.1
141.8
1,288.2
378.1
905.2
5.0
1,070.8
491.7
4.0
33.2
409.1
132.9
1,330.1
381.0
944.2
5.0
1,075.4
510.0
4.0
34.8
400.3
126.3
1,367.9
384.4
978.5
5.0
1,080.9
514.4
4.1
34.9
409.6
117.9
1,418.4
393.7
1,019.9
4.9
1,109.3
533.6
4.2
36.7
417.7
117.1
1,452.2
397.0
1,050.4
4.9
1,087.9
543.0
4.2
34.8
398.8
107.0
1,485.1
389.6
1,090.7
4.9
1,082.2
559.5
4.2
35.2
388.6
94.7
278.7
531.6
719.5
75.6
116.8
119.8
8.6
328.1
6.5
64.0
308.2
670.4
858.2
81.8
131.1
139.4
16.7
378.8
7.3
103.1
353.1
745.3
986.1
78.8
136.2
159.3
18.6
446.1
11.4
135.7
378.3
871.0
1,073.0
77.4
142.5
145.2
17.2
496.2
10.1
184.4
378.3
871.0
1,073.0
77.4
142.5
145.2
17.2
496.2
10.1
184.4
383.0
905.2
1,070.8
73.2
142.0
137.1
15.4
499.2
10.9
193.1
385.9
944.2
1,075.4
71.6
134.3
125.6
16.7
509.7
10.4
206.9
389.4
978.5
1,080.9
70.7
122.9
116.2
16.2
530.9
10.2
213.8
398.5
1,019.9
1,109.3
76.3
114.8
114.0
16.7
551.8
10.6
225.2
401.8
1,050.4
1,087.9
68.1
111.7
102.8
16.4
545.9
10.6
232.4
394.4
1,090.7
1,082.2
65.9
110.3
90.8
15.8
547.0
10.8
241.7
All sectors
52 Total credit market debt, domestic and foreign..
9,414.4
10,425.3
11,434.3
12,389.1
12,389.1
12,694.0
12,905.3
13,115.1
13,369.9
13,452.9
13,587.7
53
54
55
56
57
58
59
60
2,620.0
679.1
1,031.7
2,617.0
659.8
729.0
384.9
693.1
2,933.9
728.4
1,197.4
2,953.8
693.2
729.5
437.9
751.1
3,211.1
790.8
1,358.9
3,247.2
743.5
768.9
513.4
800.5
3,513.7
821.2
1,502.6
3,540.1
790.6
820.3
579.2
821.4
3,513.7
821.2
1,502.6
3,540.1
790.6
820.3
579.2
821.4
3,644.1
822.2
1,527.9
3,700.7
782.3
800.7
594.4
821.7
3,726.9
827.2
1,568.6
3,760.5
789.4
810.2
594.0
828.5
3,833.1
837.9
1,581.6
3,816.7
798.7
808.3
612.9
826.0
3,982.5
841.3
1,624.8
3,857.7
808.9
812.6
609.9
832.3
4,072.1
842.2
1,657.3
3,876.5
782.3
804.1
605.7
812.7
4,147.9
847.6
1,701.6
3,925.1
784.2
794.9
581.1
805.5
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
Flow of Funds
1.60
A43
S U M M A R Y OF CREDIT M A R K E T CLAIMS, BY HOLDER
Billions of dollars, except as noted, end of period
1986
1987
1988
1991
1990
1989
Transaction category or sector
1989
Q4
QL
Q2
Q3
Q4
QL
Q2
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
7,646.3
8,343.9
9,096.0
9,805.2
9,805.2
2 Total held by federal agencies and foreign sector ..
1,779.4
2,006.6
2,199.7
2,379.3
2,379.3
2,423.3
2,502.6
2,584.1
2,645.8
2,698.2
2,765.3
By instrument
U.S. government securities
Residential mortgages
Federal Home Loan Bank advances to thrifts
Other loans and securities
509.8
678.5
108.6
482.4
570.9
814.1
133.1
488.6
651.5
900.4
152.8
495.1
682.1
1,038.4
141.8
517.0
682.1
1,038.4
141.8
517.0
682.7
1,081.5
132.9
526.3
714.1
1,126.5
126.3
535.8
745.6
1,171.8
117.9
548.8
763.0
1,221.0
117.1
544.7
786.3
1,260.3
107.0
544.6
808.3
1,310.0
94.7
552.2
By type of lender
U.S. government
Sponsored credit agencies and mortgage pools . . .
Monetary authority
Foreign
255.3
835.9
205.5
482.8
240.0
1,001.0
230.1
535.5
217.6
1,113.0
240.6
628.5
207.1
1,238.2
233.3
700.6
207.1
1,238.2
233.3
700.6
217.1
1,274.8
224.4
707.0
227.4
1,315.0
237.8
722.5
242.7
1,360.5
240.8
740.2
240.6
1,403.4
241.4
760.4
248.9
1,434.8
247.3
767.2
258.2
1,471.0
253.7
782.4
810.3
238.3
978.6
244.6
1,098.4
253.9
1,249.3
261.5
1,249.3
261.5
1,288.2
261.7
1,330.1
273.0
1,367.9
279.4
1,418.4
284.9
1,452.2
297.2
1,485.1
285.1
13 Total private domestic holdings
6,915.6
7,560.4
8,248.5
8,936.8
8,936.8
9,199.9
9,327.3
9,450.1
9,614.8
9,666.8
9,740.3
14
15
16
17
18
19
2,110.1
679.1
606.6
1,288.5
2,339.8
108.6
2,363.0
728.4
674.3
1,399.0
2,528.7
133.1
2,559.7
790.8
765.6
1,560.2
2,724.9
152.8
2,831.6
821.2
831.6
1,670.4
2,923.8
141.8
2,831.6
821.2
831.6
1,670.4
2,923.8
141.8
2,961.4
822.2
846.7
1,781.4
2,921.0
132.9
3,012.8
827.2
865.5
1,793.5
2,954.5
126.3
3,087.5
837.9
874.0
1,802.8
2,965.9
117.9
3,219.4
841.3
897.1
1.795.0
2.979.1
117.1
3,285.8
842.2
915.5
1,776.3
2,954.0
107.0
3,339.6
847.6
936.8
1,778.0
2,933.0
94.7
6,018.0
6,564.5
7,128.6
7,662.7
7,662.7
7,852.1
7,913.4
7,987.2
8,127.7
8,173.1
8,199.4
2,187.6
1,297.9
1,525.4
1,007.1
2.323.0
1,445.5
1.705.1
1,091.0
2,479.3
1.567.7
1.903.8
1.177.9
2.656.6
1.480.7
2,081.6
1.443.8
2.656.6
1.480.7
2,081.6
1.443.8
2,679.4
1,461.3
2,150.3
1,561.1
2,721.2
1,409.5
2,194.4
1,588.4
2,750.9
1,371.2
2,227.6
1,637.5
2,775.3
1,330.3
2,264.1
1,758.0
2.785.4
1,289.2
2,308.1
1.790.5
2,799.3
1,253.0
2,335.6
1,811.6
By source of funds
25 Private domestic deposits and repurchase
agreements
26 Credit market debt
27 Other sources
28
Foreign funds
29
U.S. Treasury balances
30
Insurance and pension reserves
31
Other, net
3,199.0
719.5
2,099.5
18.6
27.5
1,398.5
655.0
3,354.2
858.2
2,352.1
62.3
21.6
1,527.8
740.3
3,599.1
986.1
2,543.5
71.5
29.0
1,692.5
750.5
3,824.3
1,073.0
2,765.5
61.6
25.6
1,826.0
852.3
3,824.3
1,073.0
2,765.5
61.6
25.6
1,826.0
852.3
3,848.4
1.070.8
2.932.9
61.7
16.7
1,859.8
994.7
3,837.2
1,075.4
3,000.8
63.1
32.1
1,903.6
1,002.1
3,844.6
1,080.9
3.061.8
86.2
36.6
1,921.1
1.017.9
3.884.6
1.109.3
3.133.7
85.6
30.9
1,950.7
1.066.4
3.933.6
1,087.9
3.151.7
85.2
26.3
1,968.6
1,071.5
3,895.0
1,082.2
3,222.2
54.4
36.0
2,003.2
1,128.6
Private domestic nonfinancial investors
32 Credit market claims
33
U.S. government securities
34
State and local obligations
35
Corporate and foreign bonds
36
Open market paper
37
Other loans and mortgages
1,617.0
848.7
212.6
90.5
145.1
320.1
1,854.1
936.7
274.4
114.0
178.5
350.4
2,106.0
1,072.2
340.9
100.4
218.0
374.4
2,347.1
1,206.4
369.3
130.5
228.7
412.1
2,347.1
1,206.4
369.3
130.5
228.7
412.1
2,418.6
1,254.9
362.0
153.4
233.9
414.4
2,489.2
1,280.1
367.3
169.2
249.6
423.0
2,543.8
1,322.8
371.1
166.8
251.0
432.1
2,596.5
1,360.8
368.4
180.6
247.0
439.7
2,581.6
1,370.1
361.1
180.3
235.3
434.8
2,623.0
1,395.4
366.5
195.1
227.5
438.5
38 Deposits and currency
39
Currency
40
Checkable deposits
41
Small time and savings accounts
42
Money market fund shares
43
Large time deposits
44
Security repurchase agreements
45
Deposits in foreign countries
3,410.1
186.3
516.6
1,948.3
268.9
336.7
128.5
24.8
3,583.9
205.4
515.4
2,017.1
297.8
373.9
150.1
24.3
3,832.3
220.1
527.2
2,156.2
318.0
414.7
182.9
13.1
4.073.6
231.8
528.7
2.256.7
403.3
437.8
197.9
17.6
4.073.6
231.8
528.7
2.256.7
403.3
437.8
197.9
17.6
4,094.7
234.4
504.3
2,285.6
436.7
433.4
188.4
11.9
4,097.4
242.7
510.1
2,286.6
426.3
421.6
192.7
17.5
4,108.5
247.2
499.7
2,295.8
454.5
408.1
186.6
16.8
4,163.6
254.4
529.2
2,313.2
465.0
393.8
183.4
24.6
4,209.8
262.0
512.2
2,343.0
513.3
393.2
171.9
14.3
4,184.2
265.9
520.8
2,342.7
493.2
367.8
170.4
23.4
46 Total of credit market instruments, deposits, and
currency
5,027.2
5,438.0
5,938.2
6,420.7
6,420.7
6,513.3
6,586.6
6,652.3
6,760.1
6,791.4
6,807.3
22.6
103.7
501.3
23.4
98.3
597.8
23.5
96.9
700.1
23.6
93.8
762.3
23.6
93.8
762.3
23.4
90.5
768.7
23.8
90.3
785.6
24.2
89.1
826.4
24.4
86.2
846.0
24.7
84.8
852.4
25.1
83.8
836.8
3,360.6
413.5
2,947.1
974.6
2,385.9
3,325.0
460.1
2,864.9
1,039.5
2,285.5
3,619.8
478.3
3.141.6
1,176.1
2.443.7
4,378.9
555.1
3,823.8
1,492.3
2,886.6
4,378.9
555.1
3,823.8
1,492.3
2,886.6
4,166.6
550.3
3,616.3
1,434.8
2,731.8
4.333.1
587.9
3.745.2
1,542.1
2,791.0
3,765.3
547.3
3,218.0
1,301.6
2,463.6
3.982.7
579.9
3.402.8
1,417.4
2,565.3
4,562.4
643.0
3,919.3
1,663.8
2,898.6
4,5%.2
681.3
3,914.9
1,677.1
2,919.1
3
4
5
6
7
8
9
10
Agency and foreign debt not in line 1
11 Sponsored credit agencies and mortgage pools
12 Foreign
—
U.S. government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
LESS: Federal Home Loan Bank advances
20 Total credit market claims held by private financial
institutions
21
22
23
24
By holding institution
Commercial banks
Savings institutions
Insurance and pension funds
Other finance
MEMO
47 Public holdings as percent of total
48 Private financial intermediation (percent)
49 Total foreign funds
Corporate equities not included above
50 Total market value
51
Mutual fund shares
52
Other equities
53 Holdings by financial institutions
54 Other holdings
NOTES BY LINE NUMBER.
1. Line 1 of table 1.59.
2. Sum of lines 3 - 6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market debt of federally sponsored agencies, and net issues of
federally related mortgage pool securities.
13. Line 1 less line 2 plus lines 11 and 12. Also line 20 less line 26 plus line 32.
Also sum of lines 27 and 46 less lines 39 and 45.
18. Includes farm and commercial mortgages.
25. Line 38 less lines 39 and 45.
26. Excludes equity issues and investment company shares. Includes line 19.
28. Foreign deposits at commercial banks, plus bank borrowings from foreign
affiliates, less claims on foreign affiliates and deposits by banking in foreign banks.
29. Demand deposits and note balances at commercial banks.
10,073.3 10,226.8 10,386.9 10,557.3 10,615.5 10,735.3
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 13 less line 20 plus line 26.
33-37. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 37 includes mortgages.
39. Mainly an offset to line 9.
46. Sum of lines 32 and 38, or line 13 less line 27 plus lines 39 and 45.
47. Line 2 divided by lines 1 plus 12.
48. Line 20 divided by line 13.
49. Sum of lines 10 and 28.
50-52. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding can be obtained from Flow of Funds Section, Stop 95, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
A44
2.10
Domestic Nonfinancial Statistics • March 1992
N O N F I N A N C I A L B U S I N E S S ACTIVITY
Selected Measures
Monthly data seasonally adjusted, except as noted
1991
Measure
1 Industrial production 1 (1987=100)
2
3
4
5
6
7
Market groupings
(1987=100)
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
Industry groupings
8 Manufacturing
1989
1990
1991
Apr.
May
June
July
Aug.
Sept."
Oct."
Nov."
Dec.
108.1
109.2
107.1
105.5
106.4
107.3
108.1
108.0
108.4
108.2
108.0
107.8
108.6
109.1
106.7
112.3
106.8
107.4
110.1
110.9
107.3
115.5
107.7
107.8
108.0
109.5
107.5
112.2
103.3
105.6
106.9
108.7
105.5
112.8
101.2
103.4
107.7
109.3
106.6
112.7
102.7
104.5
108.6
110.1
108.0
112.8
104.0
105.4
108.7
110.2
108.3
112.8
104.0
107.0
108.5
109.8
108.4
111.6
104.4
107.2
108.9
110.4
109.4
111.8
104.3
107.5
108.9
110.6
109.7
111.7
103.5
107.3
108.8
110.4
109.8
111.3
103.8
106.6
108.6
110.0
109.4
110.9
103.9
106.6
108.9
109.9
107.5
105.9
106.6
107.5
108.3
108.4
108.9
108.9
108.6
108.7
(1987=100)
9 Capacity utilization, manufacturing
(percent)
83.9
82.3
78.2
77.5
77.8
78.3
78.7
78.6
78.8
78.6
78.2
78.1
3
10 Construction contracts (1982= 100)
172.9
156.2
140.8
145.0
138.0
133.0
144.0
150.0
143.0
157.0
134.0
152.0
11 Nonagricultural employment, total 4
12
Goods-producing, total
Manufacturing, total
13
Manufacturing, production w o r k e r . . . .
14
15
Service-producing
16 Personal income, total
Wages and salary disbursements
17
Manufacturing
18
19
Disposable personal income
6
20 Retail sales
106.0
102.5
102.2
102.3
107.1
115.2
114.4
110.6
115.2
113.2
107.6
101.0
100.5
100.0
109.7
123.1
121.1
113.4
123.4
117.4
106.6
96.4
96.9
96.0
109.9
n.a.
n.a.
n.a.
n.a.
118.2
106.4r
96.3 r
96.7 r
95.6r
109.6r
126.0
122.9
112.0
127.0
117.7r
106.5r
96.5 r
96.9"
95.8 r
109.7"
126.9
123.8
112.7
128.1
119.0"
106.5"
96.3"
96.6"
95.7"
109.8"
127.5
124.8
113.4
128.6
119.0"
106.5"
96.3"
96.7"
96.0"
109.8"
127.1
124.2
113.8
128.3
119.4"
106.6"
96.4"
96.9"
96.3"
109.9"
127.7
124.9
114.4
128.9
118.6"
106.7
96.3
96.8
96.0
110.0
128.2
125.4
114.6
129.3
119.0
106.7
96.0
96.6
95.9
110.1
128.5
125.2
115.5
129.7
118.9
106.5
95.5
96.4
95.6
110.0
128.3
125.2
114.3
129.5
118.3
106.5
95.4
96.2
95.5
110.0
n.a.
n.a.
n.a.
n.a.
117.8
Prices7
21 Consumer (1982-84= 100)
22 Producer finished goods (1982=100)
124.0
113.6
130.7
119.2
136.2
121.7
135.2
121.1
135.6
121.8
136.0
121.9
136.2
121.6
136.6
121.7
137.2
121.3
137.4
122.3
137.8
122.3
137.9
121.9
1. A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the
Federal Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other
sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Co., F.W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the armed forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
6. Based on U.S. Bureau of the Census data published in Survey of Current
Business.
1. Based on data not seasonally adjusted, as published in Monthly
Labor
Review. Seasonally adjusted data for changes in the price indexes can be obtained
from the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not indexes) for series mentioned in notes 4, 5,and 6, and
indexes for series mentioned in notes 3 and 7 can also be found in the Survey of
Current Business.
Figures for industrial production for the latest month are preliminary, and many
figures for the three months preceding the latest month have been revised. See
"Recent Developments in Industrial Capacity and Utilization," Federal Reserve
Bulletin, vol. 76 (June 1990), pp. 411-35.
Selected Measures
2.11
A45
LABOR FORCE, E M P L O Y M E N T , A N D U N E M P L O Y M E N T
Thousands of persons; monthly data seasonally adjusted; exceptions noted
1991
Category
1989r
1990"
1991
May
June
July
Aug.
Sept.
Oct."
Nov."
Dec.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population 1
2
3
4
5
6
7
8
Labor force (including Armed Forces) 1
Civilian labor force
Employment
Nonagricultural industries 2
Agriculture
Unemployment
Number
Rate (percent of civilian labor force) . . . .
Not in labor force
188,601
190,216
191,883
191,664
191,805
191,955
192,095
192,240
192,386
192,522
192,661
126,077
123,869
126,954
124,787
127,421
125,303
127,401"
125,259"
127,661"
125,524"
127,320"
125,204"
127,126"
125,004"
127,708"
125,590"
127,605
125,508
127,444
125,374
127,675
125,619
114,142
3,199
114,728
3,186
114,644
3,233
113,474"
3,256"
113,623"
3,286"
113,485"
3,244"
113,230"
3,254"
113,806"
3,283"
113,663
3,204
113,500
3,272
113,545
3,183
6,528
5.3
62,524
6,874
5.5
63,262
8,426
6.7
64,462
8,529"
6.8"
64,263"
8,615"
6.9"
64,144"
8,475"
6.8
64,635"
8,520"
6.8
64,969"
8,501"
6.8"
64,532"
8,641
6.9
64,781
8,602
6.9
65,078
8,891
7.1
64,986
108,329
109,971
108,975
108,887
18,427
697
4,696
5,823
25,412
6,707
28,778
18,434
18,426
706
4,715
5,819
25,424
6,712
28,645
18,440
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment 3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
19,442
693
5,187
5,644
25,770
6,695
27,120
17,779
19,111
711
5,136
5,826
25,843
6,739
28,240
18,322
1. Persons sixteen years of age and older. Monthly figures are based on sample
data collected during the calendar week that contains the twelfth day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures.
2. Includes self-employed, unpaid family, and domestic service workers.
3. Includes all full- and part-time employees who worked during, or received
108,885
108,859
108,971
109,066
109,073
108,808
108,839
18,378
704
4,710
5,809
25,413
6,703
28,712
18,456
18,402
701
4,695
5,809
25,411
6,688
28,733
18,420
18,442
693
4,691
5,820
25,393
6,687
28,831
18,414
18,414
684
4,699
5,829
25,387
6,692
28,937
18,424
18,377
679
4,671
5,828
25,335
6,697
29,019
18,467
18,338
674
4,583
5,819
25,228
6,692
29,009
18,465
18,306
670
4,596
5,796
25,197
6,696
29,047
18,531
pay for, the pay period that includes the twelfth day of the month, and exclude
proprietors, self-employed persons, household and unpaid family workers, and
members of the armed forces. Data are adjusted to the March 1984 benchmark,
and only seasonally adjusted data are available at this time.
SOURCE. Based on data from Employment and Earnings (U.S. Department of
Labor).
A46
2.12
Domestic Nonfinancial Statistics • March 1992
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION 1
Seasonally adjusted
1991
1991
1991
Series
Q1
Q2
Q3 R
Q4
Q1
Q2
Q3
Q1
Q4
Capacity (percent of 1987 output)
Output (1987=100)
Q2
Q3 R
Q4
Capacity utilization rate (percent)
1
Total industry
105.8
106.4
108.1
108.0
133.6
134.5
135.3
136.2
79.2
79.1
79.9
79.3
2
Manufacturing
106.1
106.7
108.5
108.8
136.0
136.9
137.9
138.9
78.0
77.9
78.7
78.3
Primary processing
Advanced processing
100.6
108.6
100.8
109.4
104.1
110.6
104.2
110.9
126.8
140.2
127.5
141.3
128.1
142.4
128.8
143.5
79.4
77.5
79.1
77.4
81.2
77.7
80.9
77.3
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
106.1
92.3
97.9
96.3
100.2
124.4
108.1
80.8
106.7
94.0
95.9
92.8
100.3
123.5
110.6
89.5
108.1
95.1
102.0
100.3
104.5
123.5
111.2
95.9
107.7
94.3
103.2
104.5
101.3
122.9
110.5
97.0
139.9
125.0
128.2
133.0
121.3
157.9
142.7
133.4
140.9
125.2
128.6
133.5
121.5
159.5
144.0
134.2
141.8
125.4
129.0
134.0
121.7
161.2
145.3
134.9
142.8
125.7
129.3
134.5
121.9
162.8
146.6
135.6
75.8
73.9
76.4
72.4
82.6
78.8
75.8
60.5
75.7
75.1
74.6
69.5
82.6
77.4
76.8
66.7
76.2
75.8
79.1
74.8
85.8
76.6
76.5
71.1
75.4
75.0
79.8
77.7
83.1
75.5
75.4
71.5
109.9
106.4
105.2
102.8
137.0
137.9
138.7
139.6
80.2
77.2
75.9
73.6
106.1
94.6
102.6
109.1
113.2
107.3
106.7
99.4
102.7
109.3
115.6
107.6
109.1
104.1
107.6
112.1
125.4
108.1
110.1
104.5
105.9
114.3
130.4
105.6
130.9
117.3
116.4
138.4
135.7
121.4
131.9
117.7
117.1
139.7
139.2
121.4
132.9
118.0
117.9
141.0
142.6
121.4
133.8
118.3
118.7
142.3
146.1
121.4
81.0
80.6
88.2
78.8
83.4
88.4
80.9
84.5
87.7
78.2
83.0
88.6
82.1
88.2
91.2
79.5
87.9
89.0
82.2
88.3
89.3
80.3
89.3
87.0
102.0
106.2
109.3
101.1
109.6
114.4
101.8
110.4
115.2
99.6
108.4
112.2
113.8
128.1
123.8
114.3
128.4
124.3
114.6
128.8
124.7
114.7
129.2
125.2
89.6
82.9
88.3
88.4
85.3
92.1
88.9
85.7
92.4
86.9
83.9
89.6
Latest cycle
1990
Sept. r
Oct. r
Nov. r
Dec. p
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
Mining
Utilities
Electric
Previous cycle
High
Low
High
Low
Dec.
1991
May
June
July
Aug.
Capacity utilization rate (percent)
1 Total industry
2
3
4
Manufacturing
Primary processing
Advanced processing
89.2
72.6
87.3
71.8
80.6
79.1
79.6
80.0
79.8
79.9
79.6
79.3
79.0
88.9
70.8
87.3
70.0
79.4
77.8
78.3
78.7
78.6
78.8
78.6
78.2
78.1
92.2
87.5
68.9
72.0
89.7
86.3
66.8
71.4
81.5
78.5
79.0
77.3
79.9
77.6
81.1
77.8
81.2
77.5
81.3
77.7
81.2
77.6
80.7
77.2
80.9
77.0
75.1
75.9
79.9
78.4
82.3
75.1
75.3
69.8
5
6
7
8
9
10
11
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts . . . .
Aerospace and miscellaneous
transportation equipment.
88.8
90.1
100.6
105.8
92.9
96.4
87.8
93.4
68.5
62.2
66.2
66.6
61.3
74.5
63.8
51.1
86.9
87.6
102.4
110.4
90.5
92.1
89.4
93.0
65.0
60.9
46.8
38.3
62.2
64.9
71.1
44.5
77.2
74.9
81.4
80.8
82.3
79.5
76.6
59.0
75.7
73.9
75.3
70.4
83.1
77.4
76.8
66.9
76.0
77.2
74.9
69.5
83.5
77.1
77.2
68.9
76.4
75.6
78.5
74.3
85.1
77.2
76.6
71.8
76.0
76.0
79.6
75.0
86.7
76.5
76.8
67.9
76.2
75.8
79.3
75.1
85.7
76.1
76.2
73.6
75.8
73.5
79.4
76.2
84.5
76.0
75.2
74.2
75.4
75.5
80.0
78.5
82.4
75.3
75.6
70.7
77.0
66.6
81.1
66.9
82.8
76.7
76.8
76.1
76.1
75.3
74.8
73.9
72.1
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
87.9
92.0
96.9
87.9
102.0
96.7
71.8
60.4
69.0
69.9
50.6
81.1
87.0
91.7
94.2
85.1
90.9
89.5
76.9
73.8
82.0
70.1
63.4
68.2
82.4
91.0
79.9
86.5
87.0
80.7
84.3
86.5
78.2
84.5
88.6
81.4
86.4
89.7
78.2
84.1
90.2
82.0
88.4
91.9
79.3
89.6
89.2
82.1
88.8
90.4
79.7
87.1
88.4
82.3
87.4
91.4
79.6
87.0
89.4
82.4
89.1
90.5
80.2
89.5
87.1
82.1
87.9
88.1
80.2
90.4
86.6
82.2
87.9
89.2
80.4
88.0
87.3
94.4
95.6
99.0
88.4
82.5
82.7
96.6
88.3
88.3
80.6
76.2
78.7
90.8
85.1
90.6
87.6
86.7
93.7
89.2
86.7
94.1
89.6
86.2
93.6
88.5
85.9
92.7
88.5
85.1
90.8
87.8
84.1
89.8
86.5
85.2
90.9
86.2
82.5
88.1
20
21
22
Mining
Utilities
Electric
1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover. For a detailed description of
the series, see "Recent Developments in Industrial Capacity and Utilization,"
Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35.
82.1
2. Monthly high, 1973; monthly low, 1975.
3. Monthly highs, 1978 through 1980; monthly lows, 1982.
2.13
I N D U S T R I A L PRODUCTION
Selected Measures
A47
Aug.
Sept. r
Oct. r
Nov. r
Dec
Indexes and Gross Value'
Monthly data seasonally adjusted
Group
1987
proportion
1991
1990
1991
avg.
Feb.
Mar
Apr.
May
June
July
Index (1987 = 100)
MAJOR MARKETS
1 Total index
100.0
107.1
107.2
106.6
105.7
105.0
105.5
106.4
107.3
108.1
108.0
108.4
108.2
108.0
107.8
108.4
109.2
105.7
96.0
86.7
74.6
77.2
70.2
104.8
103.4
89.9
100.9
112.5
108.4
107.5
92.1
113.5
122.7
106.6
98.1
109.7
107.8
109.1
105.6
97.6
90.6
79.6
83.2
73.6
107.1
103.2
92.8
100.3
110.8
107.8
106.3
90.6
114.7
122.1
106.5
99.8
109.0
106.9
108.3
104.7
95.2
88.1
74.7
78.6
68.1
108.3
100.7
94.5
92.0
109.8
107.3
105.9
90.8
114.8
121.0
105.2
103.4
105.9
106.5
108.1
104.7
95.9
88.9
76.7
76.3
77.4
107.3
101.4
96.2
93.9
109.2
107.1
105.4
90.4
114.2
122.2
105.5
104.3
105.9
106.9
108.7
105.5
99.3
94.2
85.0
78.3
96.3
108.0
103.4
97.3
97.0
110.8
107.2
105.3
90.6
115.0
122.7
104.4
101.4
105.5
107.7
109.3
106.6
101.1
97.4
89.2
81.9
101.6
109.5
104.1
96.8
96.9
112.8
108.1
106.2
92.0
113.9
121.8
109.0
103.6
111.0
108.6
110.1
108.0
104.2
100.4
92.5
83.8
107.1
112.2
107.3
104.8
99.2
113.8
109.0
106.9
93.9
114.3
123.3
110.0
104.9
111.9
108.7
110.2
108.3
105.5
102.3
98.1
92.8
106.9
108.6
108.1
100.6
103.1
115.5
109.0
106.9
94.3
115.4
122.1
109.4
105.2
110.9
108.5
109.8
108.4
104.0
98.6
90.2
83.0
102.2
111.3
108.3
99.6
103.9
115.9
109.6
107.1
94.8
117.4
122.6
109.5
104.0
111.5
108.9
110.4
109.4
107.7
106.5
103.0
94.6
117.1
111.8
108.7
104.1
101.8
115.6
109.8
107.8
95.2
117.3
124.8
106.7
104.4
107.6
108.9
110.6
109.7
107.5
106.7
105.1
92.6
126.1
109.1
108.2
102.1
101.4
116.0
110.3
108.1
96.3
117.7
125.5
107.2
103.5
108.5
108.8
110.4
109.8
106.4
104.1
99.0
89.8
114.5
111.8
108.2
102.4
101.5
115.8
110.7
108.2
96.8
118.4
126.2
107.8
102.8
109.7
108.6
110.0
109.4
105.2
102.5
96.7
88.2
111.0
111.1
107.4
99.1
101.0
116.2
110.5
108.1
97.0
118.8
126.7
105.2
103.8
105.8
2 Products
3
Final products
4
Consumer goods, total
Durable consumer goods
5
6
Automotive products
7
Autos and trucks
Autos, consumer
8
9
Trucks, consumer
10
Auto parts and allied goods..
11
Other
12
Appliances, A/C, and T V . . . .
13
Carpeting and furniture
14
Miscellaneous home goods . .
15
Nondurable consumer goods
16
Foods and tobacco
17
Clothing
18
Chemical products
19
Paper products
20
Energy
21
Fuels
22
Residential utilities
60.8
46.0
26.0
5.6
2.5
1.5
.9
.6
1.0
3.1
.8
.9
1.4
20.4
9.1
2.6
3.5
2.5
2.7
.7
2.0
108.0
109.5
107.5
102.3
98.0
90.2
84.6
23
24
25
26
27
28
29
30
31
32
33
Equipment
Business equipment
Information processing and related .
Office and computing
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
20.0
13.9
5.6
1.9
4.0
2.5
1.2
1.9
5.4
.6
.2
112.2
121.5
131.5
155.4
108.2
126.8
88.6
113.6
90.9
113.6
121.2
127.5
148.9
112.3
123.4
75.3
118.5
95.8
107.3
83.4
113.6
121.6
130.1
155.0
111.5
124.0
79.8
115.0
94.4
106.4
83.1
112.9
120.6
131.6
157.3
109.1
120.3
75.0
112.5
94.5
108.2
77.3
112.5
120.3
131.2
155.1
109.5
120.4
76.7
110.8
93.9
107.7
79.3
112.8
121.3
131.5
155.6
109.3
124.1
84.4
112.7
92.5
105.1
83.1
112.7
121.7
131.8
155.6
109.3
125.9
87.9
113.0
91.5
101.3
86.6
112.8
121.9
130.9
154.0
109.1
128.0
90.8
114.8
91.0
103.0
90.8
112.8
122.5
131.1
156.0
109.0
131.2
96.6
114.0
90.0
97.8
86.5
111.6
121.3
130.3
153.1
108.6
126.7
86.2
114.8
89.8
86.7
90.3
111.8
122.2
130.3
152.2
108.2
132.7
99.3
114.2
89.1
80.1
86.2
111.7
122.2
131.5
155.5
106.9
133.1
101.1
113.2
88.9
79.0
86.3
111.3
121.8
133.3
157.0
104.5
130.2
96.5
113.7
88.4
78.1
87.0
110.9
121.8
133.9
158.7
104.2
128.7
96.1
114.6
87.1
75.8
89.3
34
35
36
Intermediate products, total
Construction supplies
Business supplies
14.7
6.0
8.7
103.3
96.0
108.4
106.0
101.0
109.4
103.8
97.7
108.1
102.6
96.4
106.8
101.3
94.0
106.4
101.2
94.9
105.6
102.7
95.8
107.5
104.0
97.4
108.5
104.0
96.9
109.0
104.4
96.7
109.7
104.3
96.5
109.7
103.5
94.9
109.5
103.8
95.4
109.7
103.9
95.8
109.6
37 Materials
38
Durable goods materials
39
Durable consumer parts
40
Equipment parts
41
Other
42
Basic metal materials
43
Nondurable goods materials
44
Textile materials
45
Pulp and paper materials
46
Chemical materials
47
Other
48
Energy materials
49
Primary energy
50
Converted fuel materials
39.2
19.4
4.2
7.3
7.9
2.8
9.0
1.2
1.9
3.8
2.1
10.9
7.2
3.7
105.6
107.1
96.6
114.4
106.0
106.0
106.1
97.1
106.5
106.6
110.0
102.3
102.5
102.0
105.3
107.5
91.1
116.9
107.4
109.6
104.9
91.4
108.5
105.7
107.6
102.0
101.9
102.1
104.8
106.8
94.2
115.9
105.2
104.6
104.9
89.1
106.0
106.7
109.3
101.1
101.3
100.9
103.9
105.5
90.4
116.2
103.8
104.8
103.6
91.5
104.1
104.1
108.8
101.1
102.1
99.2
102.6
103.3
87.5
114.8
101.0
101.2
102.8
92.7
102.4
102.7
108.8
101.3
101.5
100.8
103.4
104.9
92.1
114.6
102.6
101.6
103.1
94.7
102.0
102.9
109.0
101.1
100.5
102.4
104.5
106.2
95.5
114.8
103.8
103.0
103.7
96.8
101.5
103.9
109.2
102.4
101.2
104.7
105.4
106.7
97.3
113.6
105.3
105.9
104.9
98.1
106.9
103.9
108.6
103.4
104.7
101.0
107.0
108.2
100.2
113.5
107.5
108.8
108.1
101.4
110.3
107.7
110.5
104.1
106.2
100.1
107.2
109.1
100.1
114.3
109.0
110.2
107.8
101.5
108.2
107.9
110.9
103.3
104.5
101.0
107.5
109.3
101.3
113.9
109.3
109.5
108.3
99.5
110.4
108.2
111.3
103.6
103.8
103.4
107.3
108.7
101.5
113.5
108.0
107.7
109.4
101.6
110.1
110.3
111.5
103.0
102.9
103.2
106.6
108.4
100.0
113.6
108.0
108.0
108.1
99.2
107.3
109.8
110.7
102.4
101.5
104.1
106.6
108.6
99.5
113.9
108.6
108.4
109.0
99.6
108.7
110.6
111.4
101.1
100.7
102.0
97.3
95.3
107.6
107.9
108.1
108.6
107.4
107.8
106.6
107.0
105.7
106.2
106.1
106.5
106.9
107.3
107.8
108.1
108.4
108.6
108.5
108.8
108.6
108.8
108.4
108.6
108.3
108.6
108.1
108.4
109^6
105.8
99.5
99.2
113.5
108.9
106.8
93.6
116.0
123.4
107.5
103.4
109.0
SPECIAL AGGREGATES
51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts ..
53 Total excluding office and computing
machines
54 Consumer goods excluding autos and
trucks
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding office and
computing equipment
58 Materials excluding energy
97.5
105.8
106.1
105.4
104.4
103.7
104.2
105.2
106.2
106.9
106.8
107.3
107.1
106.7
106.5
24.5
23.3
108.5
107.5
107.6
105.6
107.2
105.5
106.5
104.7
106.4
104.6
106.7
105.6
107.6
106.3
108.9
107.7
108.9
108.1
109.5
108.3
109.8
109.7
110.0
110.0
110.4
110.0
110.1
109.8
12.7
124.7
125.6
125.7
125.0
124.5
124.9
125.0
125.0
125.0
124.7
124.4
124.3
124.3
124.3
117.3
109.0
116.8
108.9
116.1
108.3
115.9
108.7
12.0
28.4
116.0
106.8
116.7
106.6
116.2
106.2
114.6
104.9
114.6
103.1
115.7
104.3
116.3
105.4
116.7
106.1
117.0
108.2
116.2
108.7
A48
Domestic Nonfinancial Statistics • March 1992
2.13—Continued
Group
SIC 2
code
1987
proportion
1991
1990
1991
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept. r
Oct. r
Nov. r
Dec. p
Index (1987 = 100)
MAJOR INDUSTRIES
1 Total index
100.0
107.1
107.2
106.6
105.7
105.0
105.5
106.4
107.3
108.1
108.0
108.4
108.2
108.0
107.8
2 Manufacturing
3 Primary processing
4 Advanced processing
84.4
26.7
57.7
107.5
102.4
109.8
107.5
102.9
109.5
107.0
102.0
109.3
106.1
100.8
108.5
105.2
99.0
108.0
105.9
99.6
108.9
106.6
100.7
109.3
107.5
102.1
109.9
108.3
103.7
110.5
108.4
104.1
110.3
108.9
104.4
111.0
108.9
104.4
111.0
108.6
103.9
110.8
108.7
104.4
110.7
5
6
7
8
Durable goods
24
Lumber and products . . .
Furniture and fixtures . . .
25
Clay, glass, and stone
32
products
Primary metals
33
Iron and steel
331,2
Raw steel
Nonferrous
333-6,9
Fabricated metal
products
34
Nonelectrical machinery.
35
Office and computing
357
machines
Electrical machinery . . . .
36
Transportation
equipment
37
Motor vehicles and
parts
371
Autos and light
trucks
Aerospace and miscellaneous transportation equipment.. 372-6,9
Instruments
38
Miscellaneous
39
47.3
2.0
1.4
107.1
94.0
99.2
107.5
93.5
102.0
107.2
94.2
99.0
106.1
91.5
94.9
105.0
91.2
95.4
106.0
92.7
98.3
106.7
92.5
98.5
107.3
96.7
99.4
108.1
94.8
100.5
107.8
95.3
101.3
108.4
95.2
101.2
108.1
92.4
100.3
107.7
94.9
100.2
107.5
95.5
101.8
2.5
3.3
1.9
.1
1.4
95.0
99.6
98.3
97.3
101.5
100.7
104.2
107.3
100.6
99.8
97.2
99.7
99.0
104.7
100.6
98.9
99.5
98.0
97.9
101.6
94.4
94.7
92.0
89.8
98.4
94.2
94.5
91.6
91.0
98.5
95.1
96.9
94.0
88.9
101.0
95.0
96.4
92.9
94.0
101.5
95.8
101.2
99.5
102.6
103.5
95.5
102.6
100.6
102.4
105.5
94.4
102.3
100.8
100.9
104.4
94.1
102.6
102.4
101.3
103.0
92.8
103.5
105.6
99.1
100.5
93.3
103.4
105.6
97.3
100.4
5.4
8.6
100.4
123.6
101.9
124.7
101.7
125.5
99.1
124.5
97.8
123.1
98.0
123.5
99.1
123.6
99.8
123.4
100.9
123.9
101.4
123.3
101.9
123.1
101.7
123.3
101.5
122.6
101.9
122.7
2.5
8.6
155.4
110.1
148.9
108.7
155.0
107.6
157.3
108.2
155.1
108.6
155.6
109.7
155.6
110.6
154.0
111.5
156.0
111.0
153.0
111.5
152.2
111.0
155.4
109.9
157.0
110.9
158.7
110.7
9.8
98.6
96.6
97.6
95.5
95.0
97.2
98.2
99.7
101.3
99.0
102.2
102.4
99.7
98.0
4.7
90.4
78.5
83.0
79.4
79.8
86.2
89.8
92.5
96.7
91.6
99.5
100.4
95.8
94.8
2.3
89.4
74.9
80.1
75.3
76.6
84.0
88.2
91.2
97.3
89.1
101.8
103.2
97.6
95.5
5.1
3.3
1.2
106.0
118.4
119.5
112.9
117.3
119.1
110.8
119.0
116.1
110.0
119.3
114.6
108.8
118.4
115.3
107.2
118.6
117.5
105.8
118.2
118.7
106.1
117.3
119.8
105.4
116.5
121.6
105.6
116.9
123.2
104.6
118.1
121.5
104.3
118.2
121.1
103.2
119.4
121.3
100.9
119.9
122.0
Nondurable goods
Foods
Tobacco products
Textile mill products . . . .
Apparel products
Paper and products
Printing and publishing ..
Chemicals and products .
Petroleum products
Rubber and plastic
products
Leather and products . . .
20
21
22
23
26
27
28
29
37.2
8.8
1.0
1.8
2.4
3.6
6.4
8.6
1.3
108.0
108.6
100.4
100.6
96.3
104.7
112.4
111.2
107.1
107.4
109.1
101.1
96.1
94.9
105.4
112.8
109.9
105.6
106.8
108.3
100.0
94.0
92.9
104.2
112.1
110.1
104.7
106.0
107.6
100.1
94.3
93.1
102.2
110.9
109.1
108.8
105.4
107.4
98.2
95.4
92.5
101.3
110.4
108.2
108.5
105.9
107.6
97.6
97.2
93.2
101.3
110.7
109.0
105.7
106.5
107.8
98.7
99.2
95.2
101.3
110.6
109.2
107.5
107.6
108.6
99.4
101.7
96.2
105.3
111.2
109.6
109.6
108.6
108.3
102.6
104.2
97.8
108.1
111.9
111.5
108.3
109.0
108.7
103.1
104.7
98.3
106.5
112.3
112.3
107.3
109.6
109.5
102.7
103.2
98.1
108.0
113.3
112.6
108.6
110.0
109.8
102.2
105.4
98.7
107.2
114.3
113.9
105.7
109.8
110.0
99.8
104.0
99.2
104.5
114.8
114.1
105.2
110.3
110.0
100.5
104.1
99.5
106.1
115.4
114.8
106.0
30
31
3.0
.3
110.0
88.2
106.9
92.6
108.8
89.6
106.1
90.8
104.4
91.5
106.6
90.0
109.2
89.5
110.5
90.9
110.1
91.0
112.6
87.1
113.8
85.8
113.2
83.9
112.8
84.4
112.7
83.2
10
11,12
13
14
7.9
.3
1.2
5.7
.7
101.0
150.0
109.4
95.7
108.1
103.4
162.0
110.6
96.7
118.9
101.7
143.1
108.4
96.0
119.2
102.9
148.0
112.8
97.2
112.0
101.5
147.6
109.9
96.4
108.0
100.9
145.7
105.9
96.6
107.0
100.2
148.0
103.4
96.0
107.5
102.1
157.0
110.2
96.9
106.4
102.7
153.0
116.0
96.4
107.8
101.3
155.5
110.8
95.7
107.0
101.4
153.1
110.1
96.0
107.3
100.6
146.6
107.9
96.0
105.4
99.2
151.1
108.4
93.7
105.2
98.9
151.7
109.6
92.8
106.5
491,3PT
492,3PT
7.6
6.0
1.6
108.7
112.7
94.2
108.8
111.8
97.6
107.6
110.4
97.5
104.6
107.8
92.8
106.4
109.8
93.6
105.9
109.8
91.6
111.4
116.4
92.8
111.5
117.1
90.7
110.9
116.6
89.7
110.7
115.6
92.4
109.7
113.4
95.8
108.6
112.2
94.8
110.0
113.8
95.8
106.7
110.4
92.9
79.8
108.5
109.1
108.4
107.6
106.7
107.1
107.6
108.3
109.0
109.3
109.5
109.4
109.4
109.5
82.0
106.0
106.2
105.6
104.5
103.7
104.4
105.1
106.1
106.9
107.0
107.6
107.5
107.2
107.2
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34 Mining
35 Metal
36 Coal
37 Oil and gas extraction
38 Stone and earth minerals . .
39 Utilities
40 Electric
41 Gas
SPECIAL AGGREGATES
42 Manufacturing excluding
motor vehicles and
parts
43 Manufacturing excluding
office and computing
machines
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKETS
44 Products, total
1,734.8 1,878.7
45 Final
46 Consumer goods
47 Equipment
48 Intermediate
1,350.9 1,481.3 1,450.8 1,459.6 1,452.8 1,455.6 1,464.6 1,478.1 1,490.5 1,496.1 1,484.5 1,501.5 1,508.2 1,500.3
833.4 879.4 857.6 857.9 852.7 857.4 862.9 874.4 884.2
888.3 882.7
898.3 901.6 899.5
606.2 607.8 601.8 603.3 606.6 600.7
517.5 601.9 593.2 601.7 600.1 598.2 601.7 603.7
395.6 389.8
388.7
397.6 400.1
384.0 397.4 408.7 400.8
399.2 401.0 400.3
398.7
398.8
1,859.4 1,860.4
1,848.4 1,845.4
1. Data in this table also appear in the Board's G.17 (419) weekly statistical
release. For ordering address see inside front cover.
A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
1,853.3 1,875.7
1,890.5
1,895.3 1,885.5 1,901.8 1,907.0 1,899.0
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Standard industrial classification,
Selected Measures
2.14
A49
H O U S I N G A N D CONSTRUCTION
Monthly figures at seasonally adjusted annual rates, except as noted
1991
Item
1988
1989
1990
Feb.
Mar.
Apr.
May
June
July
Aug.
Oct. r
Nov.
982
782
200
1,017
861
156
632
453
179
1,194
869
325
172
1,028
796
232
1,090
889
201
634
454
180
1,048
870
178
172
993
787
206
1.075
910
165
640
463
177
984
787
197
172
Sept. r
Private residential real estate activity (thousands of units, except as noted)
N E W UNITS
1
2
3
4
5
6
7
8
9
10
11
12
13
Permits authorized
One-family
Two-or-more-family
Started
One-family
Two-or-more-family
Under construction at end of period 1 ..
One-family
Two-or-more-family
Completed
One-family
Two-or-more-family
Mobile homes shipped
1,456
994
462
1,488
1,081
407
919
570
350
1,530
1,085
445
218
1,339
932
407
1,376
1,003
373
850
535
315
1,423
1,026
396
198
1,111
794
317
1,193
895
298
711
449
262
1,308
966
342
188
876
695
181
992
788
204
709
457
252
1,0%
838
258
157
892
689
203
907
742
165
680
442
238
1,190
881
309
157
913
742
171
977
801
176
674
443
231
1,089
821
268
175
966
760
206
983
831
152
665
443
222
1,070
800
270
174
999
780
219
1,034
869
165
655
446
209
1,105
815
290
173
1,005
794
211
1,049
879
170
652
451
201
1,069
806
263
175
14
15
Merchant builder activity in
one-family units
Number sold
Number for sale at end of period1 . . .
675
368
650
363
535
318
488
313
495
308
506
303
507
299
518
295
507
296
522 R
291 R
501
291
520
288
520
285
16
17
Price of units sold
of dollars)'
Median
Average
113.3
139.0
120.4
148.3
122.3
149.0
119.9
147.8
122.5
156.4
121.0
150.8
116.0
145.4
119.0
145.9
120.0
148.2
120.8 R
141.8 R
120.2
148.5
125.0
149.0
117.4
141.1
18
Number sold
3,594
3,439
3,316
3,160
3,220
3,310
3,540
3,590
3,320
3,250
3,120
3,160
3.310
19
20
Price of units sold
of dollars)'
Median
Average
89.2
112.5
92.9
118.0
95.2
118.3
94.0
119.7
98.2
125.2
100.3
128.9
101.1
130.6
102.0
130.5
103.6
132.2
102.2
131.0
99.7
127.7
99.2
126.4
97.9
124.9
953
769
184
1,056
883
173
649
455
194
1,054
821
233
178
(thousands
EXISTING UNITS ( o n e - f a m i l y )
(thousands
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
432,222
443,720
446,433
410,072
401,883
407,050
399,030
398,189 398,409r 403,151r
406,983
409,424
406,313
n Private
73
Residential
74
Nonresidential, total
75
Industrial buildings
76
Commercial buildings
27
Other buildings
78
Public utilities and other
29 Public
337,440
198,101
139,339
16,451
64,025
19,038
39,825
94,783
345,416
196,551
148,865
20,412
65,496
19,683
43,274
98,303
337,776
182,856
154,920
23,849
62,866
21,591
46,614
108,655
300,495
155,622
144,873
23,249
54,023
20,850
46,751
109,577
293,262
152,447
140,815
23,089
51,766
20,628
45,332
108,621
299,044
151,836
147,208
24,301
54,824
21,928
46,155
108,007
291.048
154,567
136,481
20,683
50,220
20,858
44,720
107,982
290,871
158,282
132,589
20,868
47,596
20,429
43,696
107,318
290,299r
158,039r
132,260r
20,885r
47,144r
20,674r
43,557r
108,110r
293,407/
162,800r
130,602r
20,418
46,34 l r
19,973r
43,870r
109,749r
296,621
166,578
130,043
20,321
45,589
20,615
43,518
110,361
296,665
167,490
129,175
21,436
44,435
20,680
42,624
112,759
293,558
167,328
126,230
21,637
41,384
20,538
42,671
112,756
3,579
29,227
4,739
57,238
3,520
28,171
4,989
61,623
2,734
30,595
4,718
70,608
1,723
30.699
5,529
71,626
1,866
29,996
4,586
72,173
1,828
28,591
5,833
71,755
1,918
29,246
5,123
71,695
1,864
28,776
5,807
70,871
1,759r
28,854r
4,688r
72,809r
1.783
30,047r
4,901r
73,018r
2,261
28,610
4,226
75,264
1,829
28,833
6,205
75,892
1,888
27,455
6,174
77,239
30
31
32
33
Military
Highway
Conservation and development...
Other
1. Not at annual rates.
2. Not seasonally adjusted.
3. Recent data on value of new construction may not be strictly comparable
with data for previous periods because of changes by the Bureau of the Census in
its estimating techniques. For a description of these changes, see Construction
Reports (C-30-76-5), issued by the Bureau in July 1976.
SOURCE. Bureau of the Census estimates for all series except (1) mobile homes,
which are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 17,000 jurisdictions
beginning in 1984.
A50
2.15
Domestic Nonfinancial Statistics • March 1992
C O N S U M E R A N D PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(annual rate)
Change from 1 month earlier
1991
1991
Item
1990
Dec.
Index
level,
Dec.
1991
1991
Dec.
Mar.
June
Sept.
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
CONSUMER PRICES 2
(1982-84=100)
1 All items
6.1
3.1
2.4
3.0
3.3
3.2
.2
.4
.1
.4
.3
2 Food
3 Energy items
4 All items less food and energy
5 Commodities
6
Services
5.3
1.9
2.4
5.1
-3.2
3.3
-.3
.1
-.1
.6
.3
136.7
18.1
5.2
3.4
6.0
-7.4
4.4
4.0
4.6
-30.7
6.8
7.9
6.4
-1.2
3.2
3.2
3.0
1.6
4.6
4.1
4.6
5.6
3.1
.9
4.3
-.2
.4
.5
.3
1.0
.4
.2
.5
.2
.1
-.1
.3
.8
.3
.4
.3
.4
.3
-.1
.5
101.9
144.4
130.3
152.5
5.7
2.6
30.7
3.7
3.4
-.1
-1.6
-9.6
3.4
2.5
-3.5
1.0
-35.5
5.9
4.6
.7
-.6
.0
1.2
1.6
.3
-6.3
5.3
2.4
1.0
2.3
-.3
1.0
4.2
2.9
.2
-,5r
1.8
.2
.1
-,4r
.8
.0
,l r
.7
.4
1.7
.6
.4
.2
-.1
.0
.4
.2
-.2
-.4
-1.4
.1
.2
121.9
122.2
76.6
135.7
128.0
4.6
1.9
-2.7
-.8
-9.8
-2.3
-.7
-1.0
.4
-.3
-.3
.3
.3r
,2r
-.R
.R
-.1
-.1
.1
.1
-.1
.1
113.8
121.0
-4.2
19.1
.6
-5.6
-16.7
-8.0
.0
-54.0
-4.7
-12.5
.5
-13.3
-8.1
.0
-4.0
-1.9
4.2
-10.1
-1.8r
.9
.2
1.3r
-2.4r
-.9
.1
3.9
-.5
-.2
1.2
-1.8
-.4
-3.9
101.9
77.9
122.2
137.9
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
.R
rental-equivalence measure of homeownership.
SOURCE. Bureau of Labor Statistics.
-.4
Selected Measures
2.16
GROSS DOMESTIC PRODUCT A N D INCOME
Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates
1991
1990
Account
Q3
Q4
QL
Q2
GROSS DOMESTIC PRODUCT
1 Total
4,900.4
5,244.0
5,513.8
5,570.5
5,557.5
5,589.0
5,652.6
By source
2 Personal consumption expenditures
3
Durable goods
4
Nondurable goods
5
Services
3.296.1
437.1
1,073.8
1.785.2
3,517.9
459.8
1,146.9
1,911.2
3.742.6
465.9
1.217.7
2,059.0
3,785.2
467.1
1,228.4
2,089.6
3,812.0
451.9
1,246.4
2,113.6
3,827.7
440.7
1,246.3
2.140.7
3.868.5
440.0
1,252.9
2.175.6
793.6
777.4
545.4
837.6
363.4
232.0
570.7
193.1
377.6
230.9
802.6
802.7
587.0
198.7
388.3
215.7
821.8
807.7
596.3
201.7
394.7
211.4
750.9
787.4
585.2
191.2
394.0
202.2
709.3
748.4
560.0
184.0
375.9
188.4
708.8
745.8
554.6
180.0
374.7
191.2
16.2
27.5
36.0
35.5
.0
-2.0
14.1
9.6
-36.5
-28.9
-39.2
-35.0
-37.1
-34.0
-108.0
444.2
552.2
-82.9
504.9
587.8
-74.4
550.4
624.8
-82.5
548.7
631.2
-76.6
572.6
649.2
-36.8
565.9
602.7
-17.2
589.8
607.0
918.7
387.0
531.7
971.4
401.4
570.0
1,042.9
424.9
618.0
1,046.0
424.7
621.4
1,071.2
434.5
636.7
1.088.8
451.5
637.3
1,092.5
452.1
640.4
4,884.2
1.925.8
835.6
1,090.1
2.460.9
497.5
5.208.1
2,062.1
892.9
1.169.2
2,634.7
511.3
5,513.8
2,167.6
934.7
1,233.0
2,834.0
512.2
5.556.5
939.3
1,242.3
2,864.8
510.1
5,594.0
2,194.5
927.2
1,267.3
2,905.5
494.0
5,628.2
2,208.6
916.4
1,292.1
2,951.7
467.9
5.689.6
2,223.2
939.5
1.283.7
2,999.0
467.4
16.2
24.3
36.0
26.9
9.1
.0
-8.1
-7.0
7.0
14.1
14.5
-.4
-36.5
-29.4
-7.1
-39.2
-43.5
4.3
-37.1
-33.5
-3.6
4,718.6
4,836.9
4,884.9
4,903.3
4,855.1
4,824.0
4,840.7
4,002.6
4.244.7
4,459.6
4.475.2
4,506.8
4.489.8
4,530.8
2,921.3
2,443.0
449.0
1,994.0
478.3
247.8
230.5
3,101.3
2.585.8
478.6
2,107.2
515.5
261.7
253.7
3,290.3
2,738.9
514.0
2,224.9
551.4
277.3
274.0
3.325.3
2,769.9
517.7
2,252.2
555.4
279.1
276.3
3,340.0
2,778.3
525.4
2,253.0
561.6
281.7
279.9
3.342.9
2,771.1
536.0
2,235.1
571.8
287.5
284.2
3,377.4
2,800.2
540.1
2,260.1
577.2
288.7
288.5
324.3
293.4
30.9
347.0
305.5
41.4
373.2
330.7
42.5
368.8
336.5
32.4
373.9
332.7
41.2
364.2
331.4
32.8
380.0
340.4
39.6
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
13
Change in business inventories
Nonfarm
14 Net exports of goods and services
15
Exports
16
Imports
17 Government purchases of goods and services . .
18
Federal
19
State and local
By major type of product
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures
26 Change in business inventories
27
Durable goods
28
Nondurable goods
182.0
801.6
MEMO
29 Total GDP in 1987 dollars
2.181.6
NATIONAL INCOME
30 Total
31 Compensation of employees
32
Wages and salaries
33
Government and government enterprises . .
34
Other
35
Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income
38 Proprietors'income 1
39
Business and professional
40
Farm 1
4.3
-7.9
-12.9
-10.4
-9.5
-11.9
-11.7
42 Corporate profits 1
43
Profits before tax 3
44
Inventory valuation adjustment
45
Capital consumption adjustment
365.0
347.5
-27.3
44.7
351.7
344.5
-17.5
24.7
319.0
299.8
335.1
-32.6
-2.7
296.1
326.1
-21.2
302.1
309.1
6.7
-13.6
303.5
306.2
9.9
-12.6
46 Net interest
387.7
452.6
492.6
481.6
41 Rental income of persons 2
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
332.3
-14.2
491.8
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (U.S. Department of Commerce).
A51
A52
2.17
Domestic Nonfinancial Statistics • March 1992
P E R S O N A L INCOME A N D SAVING
Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates
1991
1990
Account
1988
1989
1990
Q3
Q4
Q1
Q2
Q3
PERSONAL INCOME AND SAVING
1 Total personal income
4,075.9
4,380.2
4,679.8
4,719.3
4,764.7
4,768.0
4,821.1
4,853.3
2 Wage and salary disbursements
Commodity-producing industries
3
Manufacturing
4
5
Distributive industries
Service industries
6
7
Government and government enterprises
2,443.0
699.1
524.5
575.3
719.6
449.0
2,585.8
723.8
542.1
607.5
775.9
478.6
2,738.9
745.4
555.8
634.6
845.0
514.0
2,769.8
751.2
560.4
640.4
860.6
517.7
2,778.2
745.2
557.3
639.0
868.8
525.2
2,770.9
733.4
549.3
635.1
866.5
535.8
2,800.6
735.2
552.3
642.0
883.0
540.5
2,822.4
742.3
559.9
644.0
894.4
541.8
230.5
324.3
293.4
30.9
4.3
108.4
583.2
576.7
300.4
253.7
347.0
305.5
41.4
-7.9
119.8
669.0
624.4
325.1
274.0
373.2
330.7
42.5
-12.9
124.8
721.3
684.9
352.0
276.3
368.8
336.5
32.4
-10.4
124.8
729.1
687.7
353.0
279.9
373.9
332.7
41.2
-9.5
127.0
736.9
705.8
358.4
284.2
364.2
331.4
32.8
-11.9
128.7
730.1
737.2
373.1
288.5
380.0
340.4
39.6
-11.7
127.4
721.8
751.5
377.2
292.8
382.5
350.5
32.0
-14.2
128.7
716.7
763.7
381.7
Other labor income
Proprietors' income 1
Business and professional 1
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
8
9
10
11
12
13
14
15
16
17
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
194.5
211.7
224.3
226.7
227.5
235.4
237.0
239.3
4,075.9
4,380.2
4,679.8
4,719.3
4,764.7
4,768.0
4,821.1
4,853.3
527.7
591.7
621.0
627.5
627.2
617.1
613.6
615.1
20 EQUALS: Disposable personal income
3,548.2
3,788.6
4,058.8
4,091.8
4,137.5
4,151.0
4,207.5
4,238.2
21
LESS: Personal outlays
3,392.0
3,621.6
3,852.2
3,895.3
3,921.7
3,937.5
3,977.9
4,024.9
22 EQUALS: Personal saving
156.2
166.9
206.6
196.5
215.8
213.4
229.6
213.3
19,251.5
12,902.3
13,889.0
19,550.5
13,027.6
14,030.0
19,540.2
13,050.8
14,154.0
19,585.9
13,106.5
14,168.0
19,337.5
12,951.6
14,058.0
19,166.5
12,877.4
13,965.0
19,187.7
12,892.0
14,022.0
19,220.9
12,930.2
13,992.0
4.4
4.4
5.1
4.8
5.2
5.1
5.5
5.0
27 Gross saving
704.5
744.2
711.8
698.3
678.3
747.7
713.9
698.0
28 Gross private saving
802.8
827.3
851.3
821.9
853.9
873.8
893.0
876.4
30 Undistributed corporate profits
31 Corporate inventory valuation adjustment
156.2
112.6
-27.3
166.9
85.8
-17.5
206.6
49.9
-14.2
196.5
27.2
-32.6
215.8
32.8
-21.2
213.4
45.0
6.7
229.6
43.4
9.9
213.3
39.4
-4.8
327.6
206.4
350.5
224.0
365.5
229.3
367.5
230.8
372.7
232.7
380.1
235.3
383.2
236.8
384.6
239.1
State and local
-98.3
-136.6
38.4
-83.0
-124.2
41.1
-139.5
-165.3
25.7
-123.6
-149.7
26.1
-175.6
-193.6
18.0
-126.1
-146.4
20.4
-179.1
-206.7
27.6
-178.4
-210.2
31.8
37 Gross investment
676.1
741.5
719.9
726.5
680.4
765.8
730.4
720.0
793.6
-117.5
837.6
-96.0
802.6
-82.8
821.8
-95.3
750.9
-70.4
709.3
56.5
708.8
21.7
740.9
-20.9
-28.4
-2.7
8.1
28.2
2.1
18.0
16.5
22.0
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1987 dollars)
23 Gross domestic product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
Capital consumption
allowances
34 Government surplus, or deficit ( - ) , national income and
36
38 Gross private domestic
39 Net foreign
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (U.S. Department of Commerce).
Summary
3.10
U.S. INTERNATIONAL TRANSACTIONS
Statistics
A53
Summary
Millions of dollars; quarterly data seasonally adjusted, except as noted 1
1991
1990
Item credits or debits
Not seasonally adjusted
Merchandise trade balance^
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net
Other service transactions, net
Remittances, pensions, and other transfers .
U.S. government grants (excluding military)
„2'
-126,236
-106,305
-92,123
-126,986
320,337
-447,323
-5,743
5,353
- i i5,917
361,451
-477,368
-6,203
2,688
-i 08,115
Q3
Q4
QL
Q2
Q3 P
-23,881
-29,112
-28,760
96,638
-125,398
-1,683
2,802
8,086
-1,302
-3,024
-23,402
-25,136
-27,728
100,580
-128,308
-2,243
6,133
9,716
-8,079
10,501
15,507
-18,394
100,900
-119,294
-2,329
4,883
9,402
-1,316
18,255
3,028
4,593
-15,391
104,245
-119,636
-1,484
2,345
10,429
-1,315
8,444
-10,459
-15,593
-20,486
104,532
-125,018
-1,168
2,502
10,630
-1,267
-670
16,082
28,618
-4,437
-10,506
-4,420
-11,071
389,550
-497,665
-7,219
11,945
33,595
-4,843
-17,486
2,966
1,320
2,976
-314
4,759
1,422
-493
2,715
12 Change in U.S. official reserve assets (increase, - ) .
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary F u n d .
16
Foreign currencies
-3,912
-25,293
-2,158
1,739
-1,092
-353
1,014
3,878
127
1,025
-5,064
-535
471
-25,229
-192
731
-2,697
363
8
1,368
-93
-4
-995
31
-341
-43
-190
72
1,132
6
-114
3,986
17 Change in U.S. private assets abroad (increase, - ) .
18
Bank-reported claims 3
19
Nonbank-reported claims
20
U.S. purchases of foreign securities, net
21
U.S. direct investments abroad, net
-85,112
-56,322
-3,064
-7,846
-17,880
-104,637
-51,255
2,581
-22,575
-33,388
-58,524
5,333
-1,944
-28,476
-33,437
-28,114
-9,984
676
-1,014
-17,792
-38,370
-24,513
-2,509
-7,546
-3,802
-1,992
20,598
-1,308
-9,430
-11,852
-15,503
1,215
-2,076
-12,833
-1,809
-18,564
-178
22 Change in foreign official assets in United States (increase, +)
23
U.S. Treasury securities
24
Other U.S. government obligations
25
Other U.S. government liabilities 4
26
Other U.S. liabilities reported by U.S. banks 3
27
Other foreign official assets 5
39,657
41,741
1,309
-568
-319
-2,506
8,624
149
1,383
281
4,976
1,835
32,425
28,643
667
1,703
2,998
-1,586
13,341
11,849
134
-248
1,871
-265
20,301
20,119
708
1,102
-707
-921
6,631
2,381
-29
1,012
2,501
766
-3,105
-2,287
-219
370
-1,084
115
4,309
5,717
407
1,302
-3,144
27
28 Change in foreign private assets in United States (increase, + ) . .
29
U.S. bank-reported liabilities 3
30
U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net
32
Foreign purchases of other U.S. securities, net
33
Foreign direct investments in United States, net
181,877
70,235
5,626
20,239
26,353
59,424
207,925
63,382
5,454
29,618
38,920
70,551
53,879
9,975
3,779
1,131
1,781
37,213
35,754
26,968
4,260
24
-2,558
7,060
18,732
17,261
-1,840
-2,029
802
4,538
-7,360
-18,795
-1,616
3,409
5,306
4,336
6,608
-28,687
-760
13,434
15,073
7,548
18,507
8,840
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )
34 Allocation of special drawing rights
35 Discrepancy
36
Due to seasonal adjustments
37
Statistical discrepancy in recorded data before seasonal
adjustment
0
0
0
0
-9,240
18,366
-9,240
18,366
-3,912
-25,293
40,225
8,343
-2,996
10,738
0
0
0
0
-1,201
0
0
0
0
0
0
0
- i 2,511
-5,875
- i ,389
9,653
1,403
0
1,475
-6,473
19,072
2,007
-8,849
3,995
8,451
166
-386
-6,059
7,948
17,066
-12,844
8,285
5,673
-2,158
1,739
-1,092
-353
1,014
3,878
30,722
13,589
19,199
5,619
-3,475
3,007
2,163
-1,699
575
-3,162
-4,298
63,526
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in United States excluding line 25
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22)
38
39
1. Seasonal factors not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-40.
2. Data are on an international accounts (IA) basis. The data differ from the
Census basis data, shown in table 3.11, for reasons of coverage and timing.
Military exports are excluded from merchandise trade data and are included in
line 6.
3. Reporting banks include all kinds of depository institutions besides commer-
cial banks, as well as some brokers and dealers.
4. Associated primarily with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
SOURCE. Survey of Current Business (U.S. Department of Commerce).
A54
3.11
International Statistics • March 1992
U . S . FOREIGN TRADE 1
Millions of dollars; exports, F.A.S. value; imports, Customs value; monthly data seasonally adjusted
1991
Item
1988
1989
1990
May
June
July
Aug.
Sept.
Oct. r
Nov.?
393,592
35,271
34,975
35,227
34,380
35,348
37,114
37,462
40,062
38,764
41,176
40,910
42,282
43,434
41,032
-4,790
-3,789
-5,949
-6,530
-6,934
-6,320
-3,570
1 Exports of domestic and foreign
merchandise, excluding grant-aid
shipments
322,426
363,812
2 General imports, including merchandise
for immediate consumption plus
entries into bonded warehouses . . . .
440,952
473,211
495,311
-109,399
-101,718
3 Trade balance
-118,526
1. The Census basis data differ from merchandise trade data shown in table
3.10, U.S. International Transactions Summary, because of coverage and timing.
On the export side, the largest difference is the exclusion of military sales (which
are combined with other military transactions and reported separately in the
"service account" in table 3.10, line 6). On the import side, this table includes
imports of gold, ship purchases, imports of electricity from Canada, and other
transactions; military payments are excluded and shown separately in table 3.10,
3.12
as indicated above. Since Jan. 1, 1987 census data have been released forty-five
days after the end of the month; the previous month is revised to reflect late
documents. Total exports and the trade balance reflect adjustments for undocumented exports to Canada. Components may not sum to totals because of
rounding.
SOURCE. FT900, Summary of U.S. Export and Import Merchandise
Trade
(U.S. Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1991
Type
1 Total
2 Gold stock, including Exchange
Stabilization Fund 1
3 Special drawing rights 2,3
4 Reserve position in International
Monetary Fund 2
5 Foreign currencies 4
1988
1989
1990
July
Aug.
Sept.
Oct.
Nov.
Dec. p
47,802
74,609
83,316
74,940
74,816
73,514
74,731
74,508
74,651
77,719
11,057
9,637
11,059
9,951
11,058
10,989
11,062
10,309
11,062
10,360
11,062
10,479
11,062
10,722
11,059
10,710
11,058
10,942
11,057
11,240
9,745
17,363
9,048
44,551
9,076
52,193
8,629
44,940
8,730
44,664
8,726
43,247
9,094
43,853
9,065
43,674
8,943
43,708
9,488
45,934
1. Gold held "under earmark" at Federal Reserve Banks for foreign and
international accounts is not included in the gold stock of the United States; see
table 3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights are valued according to a techique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted
average of exchange rates for the currencies of member countries. From July 1974
through December 1980. 16 currencies were used; since January 1981, 5 curren-
3.13
June
cies have been used. U.S. SDR holdings and reserve positions in the I M F also
have been valued on this basis since July 1974.
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus net transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL A S S E T S H E L D AT F E D E R A L R E S E R V E B A N K S 1
Millions of dollars, end of period
1991
Assets
1988
1989
1990
June
1 Deposits
Assets held in custody
2 U.S. Treasury securities
3 Earmarked gold 3
Aug.
Sept.
Oct.
Nov.
Dec. p
347
589
369
223
314
256
384
223
346
968
232,547
13,636
224,911
13,456
278,499
13,387
273,893
13,354
274,514
13,330
279,394
13,330
279,013
13,330
280,249
13,326
285,905
13,307
281,107
13,303
1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies at face value.
July
3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce,
Earmarked gold is gold held for foreign and international accounts; it is not
included in the gold stock of the United States.
Summary Statistics
3.14
F O R E I G N B R A N C H E S OF U . S . B A N K S
A55
Balance Sheet Data 1
Millions of dollars, end of period
1991
Assets
1988
1989
1990
May
June
July
Aug.
Sept.
Oct.
Nov.
All foreign countries
1 Total, all currencies
7
4
5
6
7
8
9
10
11
Claims on United States
Parent bank
Other banks in United States
Nonbanks
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers
Nonbank foreigners
Other assets
12 Total payable in U.S. dollars
N
14
15
16
17
18
19
?0
71
22
Claims on United States
Parent bank
Other banks in United States
Nonbanks
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers
Nonbank foreigners
Other assets
505,595
545,366
556,925
531,269 R
533,017*
529,313*
528,077*
547,359*
546,570*
550,777
169,111
129,856
14,918
24,337
299,728
107,179
96,932
17,163
78,454
36,756
198,835
157,092
17,042
24,701
300,575
113,810
90,703
16,456
79,606
45,956
188,496
148,837
13,296
26,363
312,449
135,003
72,602
17,555
87,289
55,980
173,144r
135,278r
10,619*
27,247
298,979r
118,311'
75,834r
17,425r
87,409*
59,146r
181,135*
142,222*
12,011
26,902
294,421
115,420*
75,196*
17,223*
86,582*
57,461
174,802*
137,159*
11,100
26,543
294,826
112,205*
77,711*
18,416*
86,494*
59,685
169,061*
130,169*
12,447*
26,445
296,855*
112,916*
76,393*
19,110*
88,436*
62,161*
177,572*
137,036*
13,692
26,844
300,229*
114,845*
77,293*
18,930*
89,161*
69,558*
176,959*
136,570*
13,432*
26,957
299,915*
108,269*
80,060*
18,685*
92,901*
69,696*
177,828
137,165
13,543
27,120
304,049
107,180
84,980
18,940
92,949
68,900
357,573
382,498
379,479
364,030*
373,441*
365,008*
359,316*
368,149*
365,223*
365,143
163,456
126,929
14,167
22,360
177,685
80,736
54,884
12,131
29,934
16,432
191,184
152,294
16,386
22,504
169,690
82,949
48,396
10,961
27,384
21,624
180,174
142,962
12,513
24,699
174,451
95,298
36,440
12,298
30,415
24,854
167,067*
131,104*
10,227*
25,736
172,816*
85,464*
43,632*
12,544*
31,176*
24,147*
174,775*
138,262*
11,502
25,011
171,752
84,318*
43,578*
12,479*
31,377*
26,914
168,353*
132,883*
10,605
24,865
169,494
79,112*
45,589*
13,565*
31,228*
27,161
163,593*
126,746*
11,973*
24,874
167,039*
79,317*
41,761*
14,160*
31,801*
28,684*
171,393*
133,450*
13,109
24,834
166,996*
80,179*
40,656*
13,609*
32,552*
29,760*
170,615*
132,929*
12,904*
24,782
164,543*
75,649
41,132*
13,889*
33,873
30,065*
171,701
133,984
12,668
25,049
165,490
75,823
42,808
13,671
33,188
27,952
United Kingdom
23 Total, all currencies
156,835
161,947
184,818
169,192
165,534
161,869
162,879
172,113
172,795
174,648
74 Claims on United States
75
Parent bank
76
Other banks in United States
77
Nonbanks
78 Claims on foreigners
79
Other branches of parent bank
Banks
30
31
Public borrowers
37
Nonbank foreigners
33 Other assets
40,089
34,243
1,123
4,723
106,388
35,625
36,765
4,019
29,979
10,358
39,212
35,847
1,058
2,307
107,657
37,728
36,159
3,293
30,477
15,078
45,560
42,413
792
2,355
115,536
46,367
31,604
3,860
33,705
23,722
38,338
34,830
1,104
2,404
106,053
39,060
32,048
3,657
31,288
24,801
37,574
34,534
711
2,329
103,608
38,333
31,019
3,584
30,672
24,352
32,475
29,241
860
2,374
103,067
36,588
31,866
3,676
30,937
26,327
31,315
28,189
816
2,310
103,935
38,382
30,168
3,717
31,668
27,629
34,409
31,205
997
2,207
105,699
39,077
31,658
3,502
31,462
32,005
32,615
29,021
1,502
2,092
108,397
36,757
33,375
3,492
34,773
31,783
32,531
28,901
1,259
2,371
111,160
36,474
36,709
3,512
34,465
30,957
34 Total payable in U.S. dollars
103,503
103,208
116,762
105,588
106,536
101,040
100,966
105,243
103,439
103,591
38,012
33,252
964
3,796
60,472
28,474
18,494
2,840
10,664
5,019
36,404
34,329
843
1,232
59,062
29,872
16,579
2,371
10,240
7,742
41,259
39,609
334
1,316
63,701
37,142
13,135
3,143
10,281
11,802
35,274
32,771
970
1,533
60,125
31,297
16,118
3,152
9,558
10,691
34,726
32,790
555
1,381
58,565
30,108
14,983
3,082
10,392
13,245
29,352
27,085
759
1,508
57,861
29,111
15,723
3,032
9,995
13,827
28,870
26,608
680
1,582
56,127
30,279
12,534
3,083
10,231
15,969
31,772
29,673
727
1,372
56,354
30,840
12,485
2,899
10,130
17,117
29,995
27,404
1,378
1,213
57,155
28,655
13,269
2,969
12,262
16,289
30,054
27,689
894
1,471
59,037
29,047
15,480
2,848
11,662
14,500
35 Claims on United States
Parent bank
36
Other banks in United States
37
Nonbanks
38
39 Claims on foreigners
Other
branches of parent bank
40
Banks
41
Public
borrowers
47
43
Nonbank foreigners
44 Other assets
Bahamas and Caymans
45 Total, all currencies
170,639
176,006
162,316
159,991*
169,194*
170,044*
166,333*
170,219*
170,529*
170,846
46 Claims on United States
Parent bank
47
Other banks in United States
48
49
Nonbanks
50 Claims on foreigners
51
Other branches of parent bank
57
Banks
53 Public borrowers
54
Nonbank foreigners
55 Other assets
105,320
73,409
13,145
18,766
58,393
17,954
28,268
5,830
6,341
6,926
124,205
87,882
15,071
21,252
44,168
11,309
22,611
5,217
5,031
7,633
112,989
77,873
11,869
23,247
41,356
13,416
16,310
5,807
5,823
7,971
108,239*
75,266*
8,955*
24,018
42,955*
12,490*
18,578*
5,965*
5,922*
8,797*
115,128*
80,963*
10,718
23,447
45,346
12,886
20,917
5,916
5,627
8,720
114,870*
81,974*
9,683
23,213
46,696
10,880
21,836
7,136
6,844
8,478
111,787*
77,566*
11,119*
23,102
46,318*
10,774
21,113*
7,394*
7,037
8,228*
116,263*
80,890*
12,063
23,310
45,640*
10,645
20,535*
7,149*
7,311*
8,316*
117,782*
83,286*
11,028*
23,468
43,662*
9,086
20,300*
7,435*
6,841
9,085*
118,164
83,348
11,457
23,359
44,177
10,268
19,865
7,363
6,681
8,505
56 Total payable in U.S. dollars
163,518
170,780
158,390
156,205*
165,290*
166,115*
162,260*
166,287*
166,598*
166,582
1. Since June 1984, reported claims held by foreign branches have been
reduced by an increase in the reporting threshold for "shell" branches from $50
million to $150 million equivalent in total assets, the threshold now applicable to
all reporting branches.
A56
International Statistics • March 1992
3.14—Continued
1991
Liabilities
1988
1989
1990
May
June
July
Aug.
Sept.
Oct.
Nov.
All foreign countries
57 Total, all currencies
505,595
545,366
556,925
531,269'
533,017r
529,313r
528,077r
547,359r
546,570r
550,777
58 Negotiable certificates of deposit (CDs) ..
59 To United States
Parent bank
60
61
Other banks in United States
62
Nonbanks
28,511
185,577
114,720
14,737
56,120
23,500
197,239
138,412
11,704
47,123
18,060
189,412
138,748
7,463
43,201
17,753
173,664r
118,864r
9,034r
45,766r
16,503
188,025r
128,352r
11,789
47,884
19,692
182,270r
127,284r
10,090
44,896
18,796
178,249r
122,179r
10,085
45,985r
17,579
188,448r
131,998r
11,843
44,607r
18,928
186,246r
130,092r
10,356
45,798r
18,334
188,686
131,235
13,040
44,411
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
270,923
111,267
72,842
15,183
71,631
20,584
296,850
119,591
76,452
16,750
84,057
27,777
311,668
139,113
58,986
14,791
98,778
37,785
301,433
119,765
66,207
19,803
95,658
38,419
290,277
116,253
57,236
20,394
96,394
38,212
287,887
112,521
59,975
17,245
98,146
39,464
290,257
112,845
62,329
18,030
97,053
40,775
295,645
114,101
62,700
19,420
99,424
45,687
295,282r
108,534r
68,502r
17,247
100,999r
46,114r
298,152
109,085
68,231
19,394
101,442
45,605
69 Total payable in U.S. dollars
367,483
396,613
383,522
360,925r
372,871r
363,869r
360,397r
367,771r
366,449r
369,742
70 Negotiable CDs
71 To United States
72
Parent bank
Other banks in United States
73
74
Nonbanks
24,045
173,190
107,150
13,468
52,572
19,619
187,286
132,563
10,519
44,204
14,094
175,654
130,510
6,052
39,092
13,258
161,340r
lll,630 r
7,704r
42,006r
12,620
175,882r
121,118r
10,647
44,117
14,538
no^ic
120,558r
8,815
41,237
14,183
167,207r
115,999r
8,449
42,759r
13,180
176,709r
125,496r
10,368
40,845r
14,157
174,274r
123,399r
9,011
41,864r
13,813
176,254
124,477
11,584
40,193
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
160,766
84,021
28,493
8,224
40,028
9,482
176,460
87,636
30,537
9,873
48,414
13,248
179,002
98,128
20,251
7,921
52,702
14,772
171,227
85,857
21,706
12,339
51,325
15,100
170,334
84,952
21,142
13,972
50,268
14,035
163,451
79,909
21,470
11,563
50,509
15,270
164,188
79,277
23,330
11,496
50,085
14,819
163,551
79,679
21,246
12,591
50,035
14,331
161,850
75,243
25,657
10,565
50,385
16,168
164,275
76,224
24,507
13,375
50,169
15,400
United Kingdom
156,835
161,947
184,818
169,192
165,534
161,869
162,879
172,113
172,795
174,648
82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks
24,528
36,784
27,849
2,037
6,898
20,056
36,036
29,726
1,256
5,054
14,256
39,928
31,806
1,505
6,617
13,486
28,618
19,951
1,413
7,254
12,196
31,084
23,238
1,092
6,754
14,889
26,599
19,545
1,490
5,564
14,148
27,915
20,367
1,662
5,886
12,941
31,534
23,707
1,724
6,103
14,145
29,137
21,080
2,053
6,004
13,506
30,560
22,629
1,934
5,997
87 To foreigners
88
Other branches of parent bank
Banks
89
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
86,026
26,812
30,609
7,873
20,732
9,497
92,307
27,397
29,780
8,551
26,579
13,548
108,531
36,709
25,126
8,361
38,335
22,103
104,322
30,155
28,459
12,342
33,366
22,766
99,756
29,371
22,994
13,062
34,329
22,498
97,263
28,591
24,310
10,010
34,352
23,118
96,773
27,457
25,131
10,722
33,463
24,043
98,572
29,898
23,560
12,071
33,043
29,066
100,267
26,879
28,470
10,045
34,873
29,246
102,299
26,977
28,245
12,628
34,449
28,283
81 Total, all currencies
105,907
108,178
116,094
104,077
104,523
99,756
100,131
104,303
103,238
104,433
94 Negotiable CDs
95 To United States
%
Parent bank
97
Other banks in United States
98
Nonbanks
22,063
32,588
26,404
1,752
4,432
18,143
33,056
28,812
1,065
3,179
12,710
34,697
29,955
1,156
3,586
11,610
24,245
18,457
1,002
4,786
10,833
27,106
21,848
892
4,366
12,758
22,355
17,924
1,233
3,198
12,337
23,788
18,949
1,216
3,623
11,249
27,272
22,228
1,259
3,785
12,397
24,394
19,391
1,704
3,299
12,042
25,517
20,923
1,481
3,113
99 To foreigners
100
Other branches of parent bank
101
Banks
102
Official institutions
103 Nonbank foreigners
104 Other liabilities
47,083
18,561
13,407
4,348
10,767
4,173
50,517
18,384
12,244
5,454
14,435
6,462
60,014
25,957
9,488
4,692
19,877
8,673
58,849
21,671
9,654
8,914
18,610
9,373
58,068
20,452
8,758
10,032
18,826
8,516
55,433
19,509
9,678
7,519
18,727
9,210
54,848
18,480
9,731
7,929
18,708
9,158
56,829
20,878
8,408
9,149
18,394
8,953
56,639
18,319
12,044
7,050
19,226
9,808
57,527
18,678
10,548
9,995
18,306
9,347
93 Total payable in U.S. dollars
Bahamas and Caymans
105 Total, all currencies
170,639
176,006
162,316
159,991r
169,194r
170,044r
166,333r
170,219r
170,529r
170,846
106 Negotiable CDs
107 To United States
108
Parent bank
109 Other banks in United States
110
Nonbanks
953
122,332
62,894
11,494
47,944
678
124,859
75,188
8,883
40,788
646
114,738
74,941
4,526
35,271
694
116,304r
72,566r
6,446r
37,292r
696
126,182r
76,980r
9,449
39,753
904
127,083r
81,541r
7,484
38,058
963
123,117r
77,159r
7,036
38,922r
1,055
128,217r
82,142r
8,841
37,234r
981
130,223r
84,853r
7,070
s s ^
1,034
129,781
82,909
9,876
36,996
111 To foreigners
112 Other branches of parent bank
113
Banks
114 Official institutions
115
Nonbank foreigners
116 Other liabilities
45,161
23,686
8,336
1,074
12,065
2,193
47,382
23,414
8,823
1,097
14,048
3,087
44,444
24,715
5,588
622
13,519
2,488
40,696
22,017
5,832
736
12,111
2,297
40,180
21,701
5,734
931
11,814
2,136
39,624
21,765
4,877
661
12,321
2,433
39,994
21,846
5,558
655
11,935
2,259
38,868
20,767
5,431
647
12,023
2,079
36,861
19,675
5,218
666
11,302
2,464
37,857
19,555
5,984
646
11,672
2,174
162,950
171,250
157,132
155,766r
164,906r
165,708r
162,040r
165,556r
166,226r
166,157
117 Total payable in U.S. dollars
Summary Statistics
3.15
A57
S E L E C T E D U . S . LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1991 R
Item
1 Total 1
2
3
4
5
6
7
8
9
10
11
12
1989
1990
May
June
July
Aug.
Sept.
Oct.
NOV.p
312,477
344,529r
352,233
347,118
350,476
356,885
350,518
357,230
364,352
R
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable
U.S. securities other than U.S. Treasury securities
36,4%
76,985
39,880
79,424
42,576
82,421
41,232
84,526
43,417
86,071
47,374
88,5%
38,402
90,394
40,731
94,428
41,176
92,705
179,269
568
19,159
202,487
4,491
18,247
203,640
4,642
18,954
197,808
4,672
18,880
197,104
4,704
19,180
196,815
4,734
19,366
197,645
4,765
19,312
198,157
4,7%
19,118
205,372
4,827
20,272
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
132,849
9,482
9,313
153,338
1,030
6,469
167,191
8,671
167,655
9,507
27,732
137,035
1,189
9,114
164,009
9,229
29,415
134,310
1,259
8,892
166,349
9,260
30,064
134,806
1,183
8,812
170,467
10,001
31,377
134,826
1,202
9,010
165,061
9,608
31,911
133,082
1,558
9,2%
170,427
9,121
32,507
172,659
9,428
33,821
137,078
1,383
9,981
21,184r
138,0%
1,434
7,955
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
3.16
133,965
1,519
9,689
bonds and notes payable in foreign currencies; zero coupon bonds are included at
current value.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
SOURCE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States and on the 1984 benchmark survey of foreign portfolio
investment in the United States.
LIABILITIES TO A N D CLAIMS O N FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies 1
Millions of dollars, end of period
1990r
Item
1 Banks' own liabilities
2 Banks' own claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers
1987
55,438
51,271
18,861
32,410
551
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
1988
74,980
68,983
25,100
43,884
364
1991r
1989
67,835
65,127
20,491
44,636
3,507
Dec.
Mar.
June
Sept.
70,477
66,7%
29,672
37,124
6,309
64,929
66,919
27,586
39,333
5,569
59,487
61,619
27,792
33,827
1,646
63,183
65,038
30,5%
34,442
2,348
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.
A58
3.17
International Statistics • March 1992
LIABILITIES TO FOREIGNERS
Payable in U . S . dollars
Reported by Banks in the United States 1
Millions of dollars, end of period
1991
Holder and type of liability
1988
1989
1990
May r
June r
July r
Aug.
Sept.
Oct."
NOV.P
1
All foreigners
685,339
736,878
759,634 R
733,101
729,866
726,807
733,321 R
735,950"
745,925
754,638
2
3
4
5
6
Banks' own liabilities
Demand deposits
Time deposits
Other.
Own foreign offices
514,532
21,863
152,164
51,366
289,138
577,498
22,032
168,780
67,823
318,864
577,229 R
21,723
168,017 R
65,822 R
321,667 R
556,826
18,864
151,937
72,605
313,421
550,103
18,797
148,572
65,396
317,338
548,063
17,929
148,667
66,823
314,644
552,670"
18,423
146,395"
72,595"
315,257
554,557"
19,841
149,708"
67,646"
317,362
561,071
17,593
153,952
73,037
316,489
571,844
21,616
154,060
75,524
320,644
170,807
115,056
159,380
91,100
182,405 R
96,796
176,275
98,019
179,763
100,876
178,744
101,809
180,651"
105,325"
181,393
107,019
184,854
112,267
182,794
110,938
16,426
39,325
19,526
48,754
17,578
68,03L R
17,013
61,243
18,040
60,848
17,351
59,584
16,508
58,818
16,820
57,554
17,089
55,498
17,235
54,621
Nonmonetary international and regional
organizations
3,224
4,894
5,918
5,557
5,932
6,236
6,945 R
6,915"
7,626
9,001
Banks' own liabilities
Demand deposits
Time deposits 2
Other 3
2,527
71
1,183
1,272
3,279
96
927
2,255
4,540
36
1,050
3,455
4,175
24
2,151
2,001
3,878
26
2,025
1,827
4,127
44
1,742
2,341
4,971"
28
1,550"
3,393
5,410"
36
2,307"
3,067
5,925
28
2,414
3,473
7,108
24
2,263
4,809
698
57
1,616
197
1,378
364
1,381
662
2,054
1,287
2,109
1,404
1,974
1,269
1,505
1,032
1,701
1,246
1,893
1,530
641
0
1,417
2
1,014
0
719
0
767
0
705
0
705
0
473
0
455
0
363
0
135,241
113,481
119,303 R
124,997
125,758
129,488
135,970"
128,796"
135,159
133,881
27,109
1,917
9,767
15,425
31,108
2,196
10,495
18,417
R
34,910
1,924
14,359"
18,628
39,231
1,448
14,529
23,254
36,864
1,542
14,671
20,651
38,886
1,396
14,970
22,520
43,156"
1,683
14,747"
26,726"
33,854"
1,645
13,237"
18,972"
36,764
1,307
13,735
21,722
37,335
1,619
12,687
23,029
108,132
103,722
82,373
76,985
84,393
79,424
85,766
82,421
88,894
84,526
90,602
86,071
92,814
88,596
94,942
90,394
98,395
94,428
96,546
92,705
4,130
280
5,028
361
4,766
203
3,194
152
4,101
267
4,324
207
4,047
171
4,128
420
3,832
135
3,627
214
Banks' custody liabilities5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments
10
Other
7
8
9
11
12
13
14
15
Banks' custody liabilities5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments
19
Other
16
17
18
20
21
22
23
24
Official institutions9
Banks' own liabilities
Demand deposits
Time deposits
Other 3
Banks' custody liabilities5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
28
Other
25
26
27
29
Banks 10
459,523
515,275
540,805'
506,543
506,023
498,681
500,544"
509,557
512,386
519,105
30
31
32
33
34
35
Banks' own liabilities
Unaffiliated foreign banks
Demand deposits
Time deposits
Other 3
Own foreign offices 4
409,501
120,362
9,948
80,189
30,226
289,138
454,273
135,409
10,279
90,557
34,573
318,864
458,470 R
136,802
10,053
88,541 R
38,208 R
321,667 R
432,451
119,030
8,675
72,343
38,013
313,421
432,258
114,920
8,584
69,941
36,395
317,338
427,648
113,004
8,423
70,185
34,396
314,644
429,732"
114,475"
8,252
70,608"
35,615"
315,257
439,924
122,562
8,959
74,861"
38,742"
317,362
444,183
127,704
8,124
78,253
41,327
316,479
453,318
132,686
11,392
80,449
40,845
320,632
50,022
7,602
61,002
9,367
82,335 R
10,669
74,092
8,712
73,765
8,664
71,033
7,970
70,812
8,242
69,633
8,161
68,203
8,363
65,787
8,005
5,725
36,694
5,124
46,510
5,341
66,325 R
5,930
59,450
5,928
59,173
5,472
57,591
5,316
57,254
5,819
55,653
6,024
53,816
5,840
51,942
Banks' custody liabilities5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments
39
Other
36
37
38
40
Other foreigners
87,351
103,228
93,608 R
96,004
92,153
92,402
89,862"
90,682"
90,754
92,651
41
42
43
44
Banks' own liabilities
Demand deposits
Time deposits
Other 3 .
75,396
9,928
61,025
4,443
88,839
9,460
66,801
12,577
79,309"
9,711
64,067 R
5,530"
80,969
8,718
62,914
9,337
77,103
8,645
61,935
6,523
77,402
8,066
61,770
7,566
74,811"
8,460
59,490"
6,861
75,369"
9,201
59,303"
6,865"
74,199
8,134
59,550
6,515
74,083
8,581
58,661
6,841
11,956
3,675
14,389
4,551
14,299
6,339
15,035
6,224
15,050
6,399
15,000
6,364
15,051"
7,218"
15,313
7,432
16,555
8,230
18,568
8,698
5,929
2,351
7,958
1,880
6,457
1,503
7,170
1,642
7,244
1,408
6,850
1,786
6,440
1,393
6,400
1,481
6,778
1,547
7,405
2,465
6,425
7,203
7,073
7,728
8,186
7,073
7,062
7,542
7,596
7,137
Banks' custody liabilities5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments
48
Other
45
46
47
49
MEMO: Negotiable time certificates of deposit in
custody for foreigners
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of
foreign banks, consists principally of amounts due to head office or parent foreign
bank, and foreign branches, agencies, or wholly owned subsidiaries of head office
or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development and
the Inter-American and Asian Development Banks. Data exclude "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."
Nonbank-Reported
Data
3.17—Continued
1991
Area and country
1988
1989
1990
1 Total
2 Foreign countries
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7
Finland
8
France
9 Germany
10 Greece
11 Italy
1?
Netherlands
Norway
n
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
70 Yugoslavia
Other Western Europe"
71
U.S.S.R
7?
Other Eastern Europe 12
23
July
June
May
Sept.
Aug.
Oct.
Nov. p
736,878
759,634r
733,101r
729,866r
726,807r
733,321r
735,950r
745,925'
754,638
682,115
731,984
753,716
r
r
r
r
r
729,035r
738,299"'
745,637
231,912
1,155
10,022
2,200
285
24,777
6,772
672
14,599
5,316
1,559
903
5,494
1,284
34,199
1,012
111,811
529
8,598
138
591
237,501
1,233
10,648
1,415
570
26,903
7,578
1,028
16,169
6,613
2,401
2,418
4,364
1,491
34,496
1,818
102,362
1,474
13,563
350
608
254,452
1,229
12,382
1,399
602
30,946
7,485
934
17,735
5,350
2,357
2,958
7,544
1,837
36,690
1,169
109,555
928
11,689
119
1,545
235,018r
961
11,168
1,065
1,170
26,580
7,037
851
12,507
5,651
1,279
2,313
10,396
1,424
35,967r
1,780
95,359
955
15,176r
136
3,243
237,OOOr
1,109
13,912
1,038
618
27,476r
7,500
944
12,507
6,310
1,444
2,391
10,834
l,435 r
38,341r
1,538
95,628
854
9,640
117
3,364
246,801r
l,232 r
13,495r
912
938
30,450
7,940r
840
12,274
6,546
1,192
2,431
12,282r
l,215 r
36,733r
1,493
99,47l r
807
12,961r
178
3,411
250,676
1,273
14,466
1,143
1,080
31,102
8,029
894
13,288
6,125
1,489
2,223
11,147
1,105
36,809
1,845
99,905
544
14,506
236
3,467
685,339
727,544
238,745r
1,100
11,593
988
453
26,270
8,488
785
14,726r
6,686
1,167
2,410
10,095
525
34,757r
1,535
99,948r
953
13,424r
129
2,713
723,934
236,543r
1,067
11
^
1,370
732
26,382
7,822
791
14,347r
6,100
1,926
2,392
9,392
745
36,089"
1,806
98,31l r
925
11,393r
178
2,925
720,571
228,782r
1,234
12,292
1,197
1,222
26,747
7,056
817
13,883
6,069
1,653
2,279
10,496
858
34,808r
1,720
90,059r
1,016
12,423
75
2,878
726,376
21,062
18,865
20,349
22,812r
23,90c
22,519
23,919
24,038
24,685
23,147
75 Latin America and Caribbean
76 Argentina
77
Bahamas
78
Bermuda
79 Brazil
30 British West Indies
31
Chile
3?
Colombia
33 Cuba
34 Ecuador
35 Guatemala
36
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
Uruguay
41
4?
Venezuela
43 Other
271,146
7,804
86,863
2,621
5,314
113,840
2,936
4,374
10
1,379
1,195
269
15,185
6,420
4,353
1,671
1,898
9,147
5,868
311,028
7,304
99,341
2,884
6,351
138,309
3,212
4,653
10
1,391
1,312
209
15,423
6,310
4,362
1,984
2,284
9,482
6,206
332,997r
7,365
107,386
2,822
5,834
147,321r
3,145
4,492
11
1,379
1,541
257
16,650"^
7,357
4,574
1,294
2,520
12,271
6,779
334,298r
7,583r
97,518r
3,054
5,754r
157,068r
3,239"
4,408
8
1,293
1,595
237
18,657
5,962
4,549
1,41 l r
2,487r
12,664r
6,811r
334,668r
7,504r
96,900r
2,919
5,747r
157,229r
3,229r
4,446r
7
1,286r
l,663r
273
19,552
5,934r
4,670r
l,340r
2,571r
12,581r
6,816r
339,202r
7,097r
98,01 l r
3,087
5,837r
161,253r
3,305r
4,419r
2
l,267 r
1,641
219
20,008
5,828r
4,435r
l,333 r
2,450r
12,170r
6,84c
337,129
6,978
93,977
3,520
6,074r
162,590
3,162
4,735
9
1,236
1,613
235
20,357
5,732
4,748
1,287
2,439
12,249
6,788
340,519r
6,858
96,577
3,120
6,068r
163,040
3,092
4,641
8
1,226
1,585
213
20,937
5,565
4,374
1,305
2,507
12,348r
7,055r
337,166r
7,190
99,099
3,191
6,024r
157,921r
3,348
4,823
4
1,237
1,541
202
19,979
5,478
4,450r
1,233
2,410
12,237
6,799r
341,972
7,481
99,631
3,295
5,810
160,991
3,385
4,797
12
1,236
1,589
201
20,534
5,886
4,563
1,240
2,511
12,002
6,808
44
147,838
156,201
136,844r
123,027r
120,75C
122,194r
121,689r
118,830
119,626r
119,959
1,895
26,058
12,248
699
1,180
1,461
74,015
2,541
1,163
1,236
12,083
13,260
1,773
19,588
12,416
780
1,281
1,243
81,184
3,215
1,766
2,093
13,370
17,491
2,421
11,246
12,754
1,233
1,238
2,767
67,076r
2,287
1,585
1,443
15,829
16,965
2,446
10,688r
15,034r
1,968
l,343 r
2,564
52,031 r
2,233
1,521
2,502
14,137r
16,560
2,412
9,878r
14,581r
1,959
1,612
2,355
51.4491
2,21 l r
1,587
2,386
13,371r
16,949
2,408
ll,220 r
14,7^
2,122
1,191
2,376
50,144r
2,444r
1,537
2,368
15,750rr
15,915
2,247
11,579
14,206
2,373
1,232
2,697
48,875r
2,272
1,465
2,650
14,835
17,258
2,198
9,425
14,468
2,474
1,065
2,848
48,089
2,107
1,647
3,348
15,310
15,851
2,494r
11,753
13,931
2,503
1,230
2,115
46,989
2,134
1,926
3,114
15,533r
15,904
2,783
11,494
13,796
2,614
1,414
2,108
46,071
2,562
2,139
3,583
16,302
15,093
3,991
911
68
437
85
1,017
1,474
3,824
686
78
206
86
1,121
1,648
4,630
1,425
104
228
53
1,110
1,710
4,695
1,364
97
202
52
1,140
1,840
4,188
1,017
122
241
45
1,105
1,658
3,929
999
81
221
24
960
1,644
4,017
957
91
137
58
992
1,782
4,483
1,125
82
242
37
1,145
1,852
4,558
1,241
78
207
42
1,182
1,808
4,465
1,060
93
173
32
1,280
1,827
6,165
5,293
872
4,564
3,867
697
4,444
3,807
637
3,969r
3,239r
730
3,885r
3,103r
781
3,945
3,173
772
4,004
3,149
855
4,165
3,231
934
5,463r
4,445r
1,018
5,418
4,288
1,130
3,224
2,503
589
133
4,894
3,947
684
263
5,918
4,390
1,048
479
5,557r
4,141r
802
614
5,932r
4,040r
1,410
482
6,236r
4,356r
1,273
607
6,945r
4,371r
1,531
1,043
6,915r
4,877r
1,094
944
7,626r
5,387r
1,227
l,012 r
9,001
6,460
1,366
1,175
24 Canada
China
Mainland
45
46
47
48
49
50
51
5?
53
54
55
56
Philippines
Thailand
Middle-East oil-exporting countries
Other
57
58
59
60
61
6?
63
Egypt
Morocco
South Africa
Zaire
Oil-exporting countries 1
Other
Hong Kong
India
Indonesia
Israel
Japan
64 Other countries
65 Australia
66 All other
67 Nonmonetary international and regional
68
69
70
International
Latin American regional
Other regional
11. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23.
12. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
14. Comprises Algeria, Gabon, Libya, and Nigeria.
15. Excludes "holdings of dollars" of the International Monetary Fund.
16. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A59
A60
International Statistics • March 1992
B A N K S ' O W N CLAIMS O N FOREIGNERS Reported by Banks in the United States 1
Payable in U . S . Dollars
3.18
Millions of dollars, end of period
1991
Area and country
1988
1989
1990
May
June
July*
Aug.*
Sept.*
Oct.*
NOV.p
1 Total
491,165
534,492
511,543
503,648r
505,424
497,814
502,559
498,985
510,532
510,730
2 Foreign countries
489,094
530,630
506,750
500,677r
501,195
495,415
500,079
496,416
508,751
507,440
116,928
483
8,515
483
1,065
13,243
2,329
433
7,936
2,541
455
261
1,823
1,977
3,895
1,233
65,706
1,390
1,152
1,255
754
119,025
415
6,478
582
1,027
16,146
2,865
788
6,662
1,904
609
376
1,930
1,773
6,141
1,071
65,527
1,329
1,302
1,179
921
113,093
362
5,473
497
1,047
14,468
3,343
727
6,052
1,761
782
292
2,668
2,094
4,202
1,405
65,151
1,142
597
530
499
99,382r
220
7,851r
909
862
13,589*
2,631
762
5,857r
1,960
695
322
3,082
1,962*
3,487
1,445
50,244*
965
999
956
585
99,037
303
6,736
896
668
14,302
2,751
654
6,339
2,132
701
378
2,056
1,993
2,969
1,593
51,369
932
734
911
617
97,767
269
5,924
898
642
14,300
2,682
619
5,911
2,234
661
260
2,582
1,858
3,627
1,458
50,775
877
832
772
586
98,575
185
6,534
945
771
13,827
3,106
495
5,931
2,101
599
308
1,995
1,633
3,609
1,407
51,625
820
1,024
1,015
645
103,395
297
7,175
670
908
14,504
2,672
473
6,541
1,955
679
266
2,333
1,896
4,048
1,382
54,305
802
773
1,157
559
103,765
374
7,678
611
1,196
13,080
2,071
487
6,370
2,175
682
301
2,405
1,842
4,196
1,192
55,499
803
714
1,358
731
107,907
325
6,962
656
1,378
14,814
2,832
555
6,362
2,226
776
358
2,477
2,372
4,489
1,147
56,052
848
1,001
1,669
608
3 Europe
4
Austria
5
Belgium-Luxembourg
6
Denmark
7 Finland
8
France
9 Germany
10 Greece
11 Italy
12
Netherlands
13 Norway
14 Portugal
15
Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20
Yugoslavia
21
Other Western Europe 2
22
U.S.S.R
23 Other Eastern Europe 3
18,889
15,451
16,091
17,713
17,446
16,719
14,495
14,734
16,065
15,785
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32 Colombia
33
Cuba
34
Ecuador
35 Guatemala
36 Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other
24 Canada
214,264
11,826
66,954
483
25,735
55,888
5,217
2,944
1
2,075
198
212
24,637
1,306
2,521
1,013
910
10,733
1,612
230,438
9,270
77,921
1,315
23,749
68,749
4,353
2,784
1
1,688
197
297
23,376
1,921
1,740
771
929
9,652
1,726
231,506
6,967
76,525
4,056
17,995
88,565
3,271
2,587
0
1,387
191
238
14,851
7,998
1,471
663
786
2,571
1,384
244,564*
6,362*
79,428*
7,182
15,593*
105,943*
3,031*
2,281
0
1,339
220
181
15,174*
1,589
1,410
722
615
2,223
1,271
248,841
6,127
78,023
3,893
15,248
115,284
2,917
2,349
0
1,344
203
187
15,408
1,639
1,429
726
590
2,222
1,252
246,051
5,944
81,294
5,804
12,350
110,628
2,832
2,202
0
1,263
190
144
15,447
1,563
1,501
712
577
2,405
1,195
249,305
5,749
78,414
11,773
12,332
111,119
2,779
2,368
0
1,238
182
150
15,279
1,540
1,490
728
571
2,394
1,199
250,313
5,749
80,217
6,847
11,880
112,589
2,732
2,431
0
1,115
185
150
16,427
3,606
1,489
712
577
2,443
1,164
254,546
5,703
85,498
4,292
11,769
116,100
2,721
2,541
0
1,095
191
162
16,861
1,234
1,558
722
555
2,386
1,158
248,842
5,773
84,345
4,095
11,897
110,662
2,828
2,571
0
1,090
191
161
17,391
1,109
1,652
724
550
2,634
1,169
44
130,881
157,474
138,722
131,597*
128,210
127,560
130,220
120,353
126,997
127,064
762
4,184
10,143
560
674
1,136
90,149
5,213
1,876
848
6,213
9,122
634
2,776
11,128
621
651
813
111,300
5,323
1,344
1,140
10,149
11,594
620
1,952
10,648
655
933
774
90,699
5,766
1,247
1,573
10,749
13,106
567
1,390
9,965*
478
982
829
88,822*
5,584
1,452
1,747
9,636
10,145*
992
2,019
9,312
432
891
851
85,708
5,924
1,506
1,977
10,468
8,131
659
1,696
9,051
409
874
818
88,183
5,597
1,647
1,975
9,771
6,880
575
1,522
9,154
425
858
919
90,604
5,383
1,682
1,870
9,741
7,487
621
1,460
9,467
449
852
945
80,498
5,140
1,633
1,934
10,439
6,915
597
1,577
10,203
481
824
993
84,836
5,339
1,916
1,826
9,973
8,432
692
1,589
10,173
449
856
902
85,558
5,773
1,971
1,798
9,957
7,346
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 5
63
Other
5,718
507
511
1,681
17
1,523
1,479
5,890
502
559
1,628
16
1,648
1,537
5,445
380
513
1,525
16
1,486
1,525
5,464
305
603
1,641
18
1,365
1,533
5,429
315
590
1,626
12
1,336
1,550
5,417
324
597
1,627
9
1,285
1,575
5,344
315
576
1,610
9
1,273
1,561
5,272
312
579
1,498
8
1,270
1,605
5,264
294
589
1,494
9
1,260
1,618
5,364
343
583
1,493
7
1,320
1,618
64 Other countries
65
Australia
66
All other
2,413
1,520
894
2,354
1,781
573
1,892
1,413
479
1,957
1,470
487
2,233
1,621
611
1,901
1,384
517
2,140
1,464
676
2,349
1,526
823
2,114
1,503
611
2,478
1,719
759
67 Nonmonetary international and regional
organizations 6
2,071
3,862
4,793
2,971*
4,229
2,399
2,480
2,569
1,781
3,290
45
46
47
48
49
50
51
52
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries
Other
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23.
3. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
Nonbank-Reported
3.19
Data
B A N K S ' O W N A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States 1
Payable in U . S . Dollars
Millions of dollars, end of period
1991 R
Type of claim
1988
1990 R
1989
May
June
July
Aug.
Sept.
497,814
35,174
305,470
115,041
69,302
45,739
42,129
502,559
35,423
301,649
116,553
70,730
45,823
48,934
498,985
35,076
303,948
113,853
68,369
45,484
46,108
538,689
593,087
577,559
491,165
62,658
257,436
129,425
65,898
63,527
41,646
534,492
60,511
296,011
134,885
78,185
56,700
43,085
511,543
41,900
304,315
117,272
65,253
52,019
48,056
47,524
8,289
58,594
13,019
66,016
14,375
67,296
19,390
67,339
19,512
25,700
30,983
41,333
35,147
35,054
13,535
14,592
10,307
12,758
12,773
19,596
12,899
13,628
10,420
8,665
45,360
45,744
44,554
9 Claims of banks' domestic customers 3 ...
11
Negotiable and readily transferable
12
Outstanding collections and other
572,720
505,424
39,460
306,089
115,018
69,130
45,889
44,857
Nov.P
510,532
34,862
312,484
119,960
72,385
47,575
43,226
510,730
35,917
312,659
117,524
68,880
48,644
44,630
39,761
40,509
566,324
1 Total
2 Banks' own claims on foreigners
3
Foreign public borrowers
Own foreign offices
4
5
Unaffiliated foreign banks
6
Deposits
Other
7
All other foreigners
8
503,648
38,966
298,547
117,208
69,384
47,824
48,927
Oct.
13 MEMO: C u s t o m e r liability o n
14 Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States 5 —
40,036
40,425
41,717
37,856
subsidiaries of head office or parent foreign bank.
3. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 Bulletin,
p. 550.
1. Data for banks' own claims are given on a monthly basis, but the data for
claims of banks' own domestic customers are available on a quarterly basis only.
Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.
2. For U.S. banks, includes amounts due from own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition" filed
with bank regulatory agencies. For agencies, branches, and majority-owned
subsidiaries of foreign banks, consists principally of amounts due from head office
or parent foreign bank, and foreign branches, agencies, or wholly owned
3.20
36,026
B A N K S ' O W N CLAIMS ON U N A F F I L I A T E D FOREIGNERS Reported by Banks in the United States 1
Payable in U . S . Dollars
Millions of dollars, end of period
1990r
1987
Maturity, by borrower and area
1
2
3
4
5
6
7
8
9
10
11
17
13
By borrower
Maturity of one year or less
Foreign public borrowers
All other foreigners
Maturity of more than one y e a r
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Africa
All other 3
Maturity of more than one y e a r
14 Europe
15 Canada
16 Latin America and Caribbean
17
18 Africa
19 All other 3
•
1991r
1989
Dec.
Mar.
June
Sept.
235,130
233,184
238,123
206,903
199,254
199,085
194,788
163,997
25,889
138,108
71,133
38,625
32,507
172,634
26,562
146,071
60,550
35,291
25,259
178,346
23,916
154,430
59,776
36,014
23,762
165,985
19,305
146,680
40,918
22,269
18,649
158,220
21,216
137,004
41,034
22,498
18,536
159,465
18,596
140,869
39,620
20,624
18,996
159,313
16,990
142,323
35,475
17,792
17,683
59,027
5,680
56,535
35,919
2,833
4,003
55,909
6,282
57,991
46,224
3,337
2,891
53,913
5,910
53,003
57,755
3,225
4,541
49,184
5,450
49,782
53,258
3,040
5,272
49,641
5,938
42,660
54,042
3,008
2,931
49,917
7,290
41,121
53,177
2,945
5,016
51,104
5,671
47,187
49,293
2,815
3,243
6,696
2,661
53,817
3,830
1,747
2,381
4,666
1,922
47,547
3,613
2,301
501
4,121
2,353
45,816
4,172
2,630
684
3,859
3,290
25,774
5,165
2,374
456
4,329
3,387
24,961
5,414
2,426
517
4,285
3,820
23,219
5,645
2,456
195
3,815
3,671
19,287
6,095
2,385
222
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
1988
2. Remaining time to maturity,
3. Includes nonmonetary international and regional organizations.
A61
A62
3.21
International Statistics • March 1992
CLAIMS ON FOREIGN COUNTRIES Held by U . S . Offices and Foreign Branches of U.S.-Chartered Banks 1
Billions of dollars, end of period
1989
Area or country
1 Total
1987
382.4
1991
1990
1988
346.3
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
346.5
338.8
333.9
321.7
331.5 r
317.8
324.4r
320.2
r
Sept.
335.7 r
159.7
10.0
13.7
12.6
7.5
4.1
2.1
5.6
68.8
5.5
29.8
152.7
9.0
10.5
10.3
6.8
2.7
1.8
5.4
66.2
5.0
34.9
146.4
6.9
11.1
10.4
6.8
2.4
2.0
6.1
63.7
5.9
31.0
152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.2
146.6
6.7
10.4
11.2
5.9
3.1
2.1
6.2
64.0
4.8
32.2
139.3
6.2
10.2
11.2
5.4
2.7
2.3
6.3
59.9
5.1
30.1
143.6
6.5
11.1
11.1
4.4
3.8
2.3
5.6
62.6 r
5.0r
31.3r
132.1
5.9
10.4
10.6
5.0
3.0
2.2
4.4
60.8
5.9
23.9
129.6
6.2
9.7
8.8
4.0
3.3
2.0
3.7
62. V
6.8 r
23.2
130.1
6.1
10.5
8.3
3.6
3.3
2.5r
3.3
59.8 r
8.2
24.6
134.7r
5.8
11.1
9.7
4.5
3.0
2.1
3.9
65.6
5.8
23.2r
13 Other developed countries
14
Austria
15
Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia
26.4
1.9
1.7
1.2
2.0
2.2
.6
8.0
2.0
1.6
2.9
2.4
21.0
1.5
1.1
1.1
1.8
1.8
.4
6.2
1.5
1.3
2.4
1.8
21.0
1.5
1.1
1.1
2.4
1.4
.4
6.9
1.2
1.0
2.1
2.1
20.7
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
.7
2.0
1.6
23.0
1.5
1.2
1.1
2.6
1.7
.4
8.2
1.3
1.0
2.0
2.1
22.4
1.5
1.1
.9
2.7
1.4
.8
7.8
1.4
1.1
1.9
1.8
23.(f
1.6
1.1
.8
2.8
1.6
.6
8.4
1.6
.7
1.9
2.0
22.6
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
.9
1.8
1.8
23.1
1.4
.9
1.0
2.5
1.5
.6
9.0
1.7
.8
1.8
1.9
21.1
1.1
1.2
.8
2.4
1.5
.6
7.0
1.9
.9
1.8
2.0
21.7
1.0
.9
.7
2.3
1.4
.5
8.3
1.6
1.0
1.6
2.4
25 OPEC countries 2
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
17.4
1.9
8.1
1.9
3.6
1.9
16.6
1.7
7.9
1.7
3.4
1.9
16.2
1.5
7.4
2.0
3.5
1.9
17.1
1.3
7.0
2.0
5.0
1.7
15.5
1.2
6.1
2.1
4.3
1.8
15.3
1.1
6.0
2.0
4.4
1.8
14.2r
1.1
6.0
2.3
3.r
1.7
12.8
1.0
5.0
2.7
2.5
1.7
17.1
.9
5.1
2.8
6.6
1.6
14.0
.9
5.3
2.6
3.7
1.5
15.6
.8
5.6
2.8
5.0
1.5
31 Non-OPEC developing countries
97.8
85.3
81.2
77.5
68.8
66.7
67.1
65.4
66.3
65.0
65.2r
9.5
24.7
6.9
2.0
23.5
1.1
2.8
9.0
22.4
5.6
2.1
18.8
.8
2.6
7.6
20.9
4.9
1.6
17.2
.6
2.9
6.3
19.0
4.6
1.8
17.7
.6
2.8
5.6
17.5
4.3
1.8
12.8
.5
2.8
5.2
16.7
3.7
1.7
12.6
.5
2.3
5.0
15.4
3.6
1.8
12.8
.5
2.4
5.0
14.4
3.5
1.8
13.0
.5
2.3
4.7
13.9
3.6
1.7
13.7
.5
2.2
4.6
11.6
3.6
1.6
14.3
.5
2.0
4.7
10.5r
3.7
1.6
16.1
.4
1.9
2 G-10 countries and Switzerland
3
Belgium-Luxembourg
France
4
Germany
5
6
Italy
Netherlands
7
8
Sweden
9
Switzerland
10
United Kingdom
11
Canada
12 Japan
r
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia 3
.3
8.2
1.9
1.0
5.0
1.5
5.2
.7
.7
.3
3.7
2.1
1.2
6.1
1.6
4.5
1.1
.9
.3
5.0
2.7
.7
6.5
1.7
4.0
1.3
1.0
.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0
.3
3.8
3.5
.6
5.3
1.8
3.7
1.1
1.2
.2
3.6
3.6
.7
5.6
1.8
3.9
1.3
1.1
.2
4.0
3.6
.6
6.2
1.8
3.9
1.5
1.6
.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7
.4
3.6
3.5
.5
6.8
2.0
3.7
1.6
2.1
.6
4.1
3.0
.5
6.9
2.1
3.7
1.7
2.3
.4
4.1
2.8
.5
6.0
2.3
3.6
1.9
2.8
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 3
.6
.9
.0
1.3
.4
.9
.0
1.1
.5
.8
.0
1.0
.4
.9
.0
1.0
.4
.9
.0
.9
.5
.9
.0
.8
.4
.9
.0
.8
.4
.8
.0
1.0
.4
.8
.0
.8
.4
.7
.0
.8
.4
.7
.0
.8
52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other
3.2
.3
1.8
1.1
3.6
.7
1.8
1.1
3.5
.8
1.7
1.1
3.5
.7
1.6
1.3
3.3
.8
1.4
1.2
2.9
.4
1.4
1.1
2.7
.4
1.3
1.1
2.3
.2
1.2
.9
2.1
.3
1.0
.8
2.1
.4
1.0
.7
1.8
.4
.8
.7
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama 4
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 5
54.5
17.3
.6
13.5
1.2
3.7
.1
11.2
7.0
.0
44.2
11.0
.9
12.9
1.0
2.5
.1
9.6
6.1
.0
49.2
11.4
1.3
15.3
1.1
1.5
.1
10.7
7.8
.0
36.6
5.5
1.7
9.0
2.3
1.4
.1
9.7
7.0
.0
43.1
9.2
1.2
10.9
2.6
1.3
.1
9.8
8.0
.0
40.3
8.5
2.5
8.5
2.3
1.4
.1
10.0
7.0
.0
42.6 r
8.9
4.5
9.3 r
2.2
1.5
.1
8.7
7.5
.0
42.5
2.8
4.4
11.5
7.9
1.4
.1
7.7
6.6
.0
49.4r
8.1r
4.4
13.7
1.1
1.4
.1
11.5
8.9
.0
48.2r
6.5 r
4.2
is. r
1.4
1.3
.1
12.4
7.2
.0
51.9"^
6.1 r
7.1
H.Of
3.5
1.3
.1
12.0
7.7
.0
66 Miscellaneous and unallocated 6
23.2
22.6
28.7
30.3
33.3
34.5
38.1
39.8
36.6
39.6r
44.6
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
Since June 1984, reported claims held by foreign branches have been reduced
by an increase in the reporting threshold for "shell" branches from $50 million to
$150 million equivalent in total assets, the threshold now applicable to all
reporting branches.
2. This group comprises the Organization of Petroleum Exporting Countries
shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and
Oman (not formally members of OPEC).
3. Excludes Liberia.
4. Includes Canal Zone beginning December 1979.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
3.22
Data
A63
LIABILITIES TO U N A F F I L I A T E D FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States 1
Millions of dollars, end of period
1991
1990
1987
Type and area or country
1988
19897
28,302
1
32,952
Dec.
Sept.
June
Mar. r
June
Sept. p
38,776
39,831r
45,165r
42,928r
40,753
39,31 l r
40,459
r
r
r
? Payable in dollars
3 Payable in foreign currencies
22,785
5,517
27,335
5,617
33,985
4,791
35,351
4,480r
40,034
5,131r
38,529
4,399r
36,635
4,119
35,291r
4,019
36,057
4,402
By type
4 Financial liabilities
5
Payable in foreign currencies
6
12,424
8,643
3,781
14,507
10,608
3,900
17,891
14,047
3,844
19,025
15,663
3,363
19,898
16,059
3,839
17,979
14,731
3,247
17,104
14,182
2,922
16,767
13,872
2,895
17,603
14,673
2,930
15,878
7,305
8,573
14,142
1,737
18,445
6,505
11,940
16,727
1,717
20,885
8,070
12,815
19,938
947
20,806r
7,256r
tf.SSff
19,688r
1,117
25,267r
10,96^
14,306r
23,974r
l,292 r
24,949r
10,494r
14,456r
23,798r
l,152 r
23,650
8,865
14,784
22,453
1,197
22,544r
8,697r
13,846
21,420r
1,124
22,856
9,067
13,789
21,384
1,472
8,320
213
382
551
866
558
5,557
9,962
289
359
699
880
1,033
6,533
11,672
340
258
464
941
541
8,830
11,802
332
165
547
928
552
8,832
11,251
350
463
606
942
628
7,632
9,813
344
695
622
990
576
5,976
9,187
285
627
561
945
577
5,551
9,244
297
535
664
917
535
5,706
9,739
347
354
654
943
510
6,370
360
388
610
306
309
223
272
287
305
7 Commercial liabilities
8
9
Advance receipts and other liabilities
10 Payable in dollars
11 Payable in foreign currencies
1?
13
14
15
16
17
18
19
70
71
77
73
74
75
26
77
78
29
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
Germany
Netherlands
Switzerland
United Kingdom
Canada
British West Indies
Mexico
Venezuela
1,189
318
0
25
778
13
0
839
184
0
0
645
1
0
1,357
157
17
0
724
6
0
2,774
312
0
0
1,920
4
0
3,560
395
0
0
2,548
4
0
3,400
371
0
0
2,407
5
4
3,636
392
0
0
2,674
6
4
3,308
375
12
0
2,319
6
4
3,518
337
0
1
2,578
6
4
Japan
Middle East oil-exporting countries 2
2,451
2,042
8
3,312
2,563
3
4,151
3,299
2
4,085
2,883
5
4,2%
3,161
4
4,132
2,930
5
4,005
2,932
1
3,918
2,865
4
4,037
2,802
226
4
1
2
0
2
0
3
1
2
0
2
0
2
0
9
7
3
2
100
4
100
55
479
409
2
2
1
5,516
132
426
909
423
559
1,599
7,319
158
455
1,699
587
417
2,079
9,071
175
877
1,392
710
693
2,620
8,652r
291
1,049
990
606
665r
2,450r
10,039r
245
1,270*"
1,051
699
746r
2,839r
HUlC
275
l,218 r
i
844r
775r
2,792
9,877
263
1,216
1,389
731
661
2,852
8,848r
254
l,246 r
1,044
750
586
2,336r
9,280
1%
999
913
792
560
3,2%
1,301
1,217
1,124
l,179 r
1,263
l,251 r
1,231
1,186
1,018
r
r
r
1,512
14
450
209
46
290
101
Latin America and Caribbean
Bahamas
Bermuda
30
31
Africa
Oil-exporting countries 3
32
All other 4
Commercial liabilities
33
Europe
Belgium-Luxembourg
34
35
36
Netherlands
37
38
United Kingdom
39
40
41
47
43
44
45
46
47
Canada
Latin America and Caribbean
British West Indies
Venezuela
48
49
50
Middle East oil-exporting countries
51
52
Oil-exporting countries 3
53
All other 4
2,3
864
18
168
46
19
189
162
1,090
49
286
95
34
217
114
1,224
41
308
100
27
323
164
l,321
22
412
109
29
315r
129*"
l,690
18
371
129
42
592r
165r
l,671
12
538
145
30
475r
130r
1,621
14
495
218
36
346
126
1,631
6r
505
180
501"
364
121
6,565
2,578
1,964
6,915
3,094
1,385
7,550
2,914
1,632
7,365r
3,197r
l,285 r
9,533r
3,356r
2,728r
9,471r
3,639r
2,016r
8,669
3,413
1,569
8,847
3,383
1,699
8,943
3,359
1,812
574
135
576
202
886
339
900r
287r
l,334 r
610"^
841
422
655
225
594
224
835
356
1,057
1,328
1,030
1,390
1,408
l,406 r
1,5%
1,436
1,268
1. For a description of the changes in the International Statistics tables, see
July 1979 Bulletin, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A64
3.23
International Statistics • March 1992
CLAIMS O N U N A F F I L I A T E D FOREIGNERS
United States 1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1990
Type, and area or country
1987
1988
1991
1989r
Sept.
Dec.
Mar.*
June
Sept."
r
June
1 Total
30,964
33,805
33,080
33,098
32,239*
34,780*
35,272
36,946*
38,361
2 Payable in dollars
3 Payable in foreign currencies
28,502
2,462
31,425
2,381
30,742
2,338
30,765r
2,333r
29,836*
2,402*
32,354*
2,426*
33,068
2,204
34,948*
1,997
36,154
2,207
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
20,363
14,894
13,765
1,128
5,470
4,656
814
21,640
15,643
14,544
1,099
5,997
5,220
777
19,235
12,336
11,409
927
6,899
6,145
754
19,438r
ll,615 r
10,533r
1,082
7,823
7,090
733
17,758*
11,810*
10,616*
1,193
5,949
5,296
652
19,444*
13,331*
12,318*
1,012
6,114
5,247
866
19,392
12,835
11,893
942
6,557
5,861
696
20,687*
12,300*
11,595*
705
8,387
7,699
688
22,392
15,522
14,712
810
6,870
6,260
610
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
14 Payable in dollars
15 Payable in foreign currencies
10,600
9,535
1,065
10,081
519
12,166
11,091
1,075
11,660
505
13,845
12,221
1,624
13,188
657
13,660r
11,95 l r
1,708r
13,142r
518r
14,480*
12,702*
1,778*
13,924*
556*
15,336*
13,458*
1,878*
14,788*
548*
15,879
13,691
2,189
15,314
565
16,259*
13,963*
2,2%
15,654*
605
15,969
13,345
2,624
15,182
787
9,531
7
332
102
350
65
8,467
10,278
18
203
120
348
217
9,039
8,401
28
153
87
303
91
7,496
10,780*
126
126
76
339
131
9,757*
8,924*
27
145
79
327
163
7,956*
9,363*
76
358
302
330
293
7,760*
10,524
85
193
249
443
358
8,981
11,756*
74
255
233
494
367
10,184*
12,928
75
257
438
492
527
10,886
16
17
18
19
20
21
22
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
2,844
2,325
1,904
2,036
1,989
2,887
1,850
1,986
2,066
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7,012
1,994
7
63
4,433
172
19
8,160
1,846
19
47
5,763
151
21
8,020
1,890
7
224
5,486
94
20
5,998r
1,499*
3
84
4,003
164
20
6,107*
1,443*
4
70
4,191
158
23
6,091*
1,594*
3
68
4,021
177
25
6,119
1,847
6
68
3,769
179
28
5,849*
1,031
4
127
4,307*
161
29
5,969
1,356
19
124
4,100
173
32
31
32
33
Asia
Japan
Middle East oil-exporting countries
879
605
8
623
354
5
590
213
8
534
185
6
531
207
9
860
523
8
568
246
11
757
409
4*
1,069
721
3
34
35
Africa
Oil-exporting countries 3
65
7
106
10
140
12
62
8
49
7
37
0
62
3
64
1
61
1
36
Ail other 4
33
148
180
28
158
206
268
275
299
37
38
39
40
41
42.
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
4,180
178
650
562
133
185
1,073
5,181
189
672
669
212
344
1,324
6,207
242
963
696
479
313
1,575
r
6,076
209
924
670
480*
234
1,582
6,495*
188
1,206
641*
491
300
1,673
7,032*
212*
1,240
805*
552*
301*
1,774*
7,181
226
1,292
873
604
392
1,669
7,545*
220
1,408
957
756
2%*
1,822*
6,973
186
1,328
855
651
259
1,867
44
Canada
936
983
1,087
1,150*
1,148*
1,070*
1,212
1,240*
1,232
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,930
19
170
226
26
368
283
2,241
36
230
299
22
461
227
2,176
58
323
293
36
507
147
2,207*
17
284
233*
47
576*
223
2,402*
25
340
251
35
650*
224
2,333*
14
246
320
40
656*
189
2,314
15
231
309
49
653
181
2,433
16
245
297
43
711
195
2,575
8
338
391
37
739
196
52
53
54
Asia
Japan
Middle East oil-exporting countries
2,915
1,158
450
2,993
946
453
3,561
1,197
518
3,473*
1,097*
418
3,631*
1,221
407
4,049*
1,396
459
4,306
1,778
507
4,159
1,604
510
4,216
1,752
497
55
56
Africa
Oil-exporting countries
401
144
435
122
422
108
387
97
371
72
488*
67
394
68
428
59
518
79
57
All other 4
238
333
392
366*
433*
364*
471
453
455
1. For a description of the changes in the International Statistics tables, see
July 1979 Bulletin, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
3.24
A65
FOREIGN T R A N S A C T I O N S IN SECURITIES
Millions of dollars
1991r
1991
Transaction and area or country
1989
1990
Jan.Nov.
May
June
July
Aug.
Sept.
Oct.
Nov.P
17,934
16,192
12,919
13,659
17,201
16,791
20,515
19,592
U.S. corporate securities
STOCKS
1
2
Foreign purchases
Foreign sales
214,071
204,129
3
Net purchases, or- sales ( - )
4
Foreign countries
5
6
7
8
9
10
11
17
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries
18
Nonmonetary international and
regional organizations
173,293
188,419
195,981
182,150
19,230
15,900
17,356
16,122
16,462
15,304
9,941
-15,126
13,830
3,330
1,234
1,158
1,742
-740
410
923
10,175
-15,197
13,245
3,276
1,190
1,135
1,606
-850
365
886
476
-708
-830
79
-3,277
3,683
-881
3,042
3,531
3,577
3,330
131
299
-8,479
-1,234
-367
-397
-2,866
-2,980
886
-1,330
-2,435
-3,477
-2,891
-63
-298
1,993
143
-107
-176
-132
1,343
3,678
2,456
-91
4,931
1,610
146
133
1,214
83
24
20
290
585
712
242
207
829
669
21
51
710
170
45
60
346
-148
383
287
-460
96
74
9
165
5
-41
-8
47
42
-130
159
160
272
110
-15
6
423
753
39
21
-209
96
831
439
315
67
-33
-96
4
61
-567
-95
62
38
-48
-501
16
25
-402
210
135
-7
-125
-452
-21
12
6
-93
-216
385
366
-6
267
156
20
-215
-310
-50
22
-42
-508
182
694
-198
39
738
158
14
-91
-234
71
585
55
44
23
136
110
45
37
120,550
87,533
118,764
102,047 R
137,396
112,562
14,434
11,651
12,427
8,754
9,994
7,681
14,989
10,812
14,492
12,315
12,844
10,558
15,708
12,971
BONDS 2
19
20
Foreign purchases
Foreign sales
21
Net purchases, or sales (—)
33,017
16,717r
24,834
2,783
3,673
2,313
4,177
2,177
2,286
2,737
22
Foreign countries
32,664
17,187r
25,016
2,842
3,735
2,340
4,274
2,216
2,349
2,644
73
74
25
76
77
78
79
30
31
37
33
34
35
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries
18,907
372
-238
850
-511
17,965
1,116
3,686
-182
9,025
6,292
56
57
10,079
373
-377
172
284
10,383
1,906
4,291
76
1,083 R
727 R
96
-344
12,489
779
1,464
469
560
9,091
1,226
1,822
1,932
7,697
5,581
45
-195
1,749
86
400
23
206
932
374
-118
20
831
544
10
-23
2,167
2
-120
130
327
1,744
68
538
160
898
685
-1
-96
921
15
-1
-1
9
629
34
378
430
558
285
-1
20
1,727
-26
106
47
116
1,405
-40
172
449
2,015
1,818
4
-53
-111
93
156
-18
-52
384
-155
130
350
2,027
1,149
-2
-23
1,873
-25
213
44
-64
2,029
86
-365
182
526
237
12
35
1,050
110
274
91
-388
594
51
110
313
1,167
874
13
-60
36
Nonmonetary international and
regional organizations
-182
-58
-62
-27
-97
-39
-63
93
-2,369
11,292
13,661
-4,210
33,201
37,411
-1,612
13,114
14,726
768
29,925
29,157
353
-471
Foreign securities
37
38
39
40
41
42
Stocks, net purchases, or sales ( - ) 3
Foreign purchases
Foreign sales
Bonds, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-13,062
109,850
122,912
-5,493
234,770
240,263
-9,205
122,641
131,846
-22,412R
314,645 R
337,057 R
43
Net purchases, or sales (—), of stocks and bonds . . . .
-18,556
44
Foreign countries
-18,594
45
46
47
48
49
50
Europe
Canada
Latin America and Caribbean
51
Nonmonetary international and
regional organizations
Africa
Other countries
-29,299
108,698
137,997
-13,552
298,346
311,898
-3,292
8,627
11,919
-484R
22,135 R
22,619"^
-3,590
10,053
13,643
-1,945
19,918
21,863
-3,155
10,174
13,329
-807
22,041
22,848
-3,521
9,586
13,107
-2,168
22,186
24,354
-2,159
9,913
12,072
-1,138
23,442
24,580
—31,617r
-42,851
—3,776r
-5,536
-3,962
-5,689
-3,297
-6,579
-844
-28,943 r
-42,193
—3,247r
-5,816
-4,476
-5,794
-3,477
-6,212
-1,279
-17,663
-3,730
426
2,532
93
-251
-8,443R
-7,502
-8,854R
-3,828
-137
-180
-29,168
-7,644
1,454
-7,534
-167
867
-415R
-943
-1,633
-159
4
-101
-3,428
-1,011
-26
-1,172
-198
19
-5,035
278
130
105
8
38
-4,769
-1,009
108
-305
-7
188
-2,666
-352
454
-1,153
2
238
-5,150
-1,619
549
-197
1
204
-4,525
675
1,127
1,399
-41
86
38
-2,673
-658
280
514
105
180
-367
435
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
-529
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
3. As a result of the merger of a U.S. and U.K. company in July 1989, the
former stockholders of the U.S. company received $5,453 million in shares of the
new combined U.K. company. This transaction is not reflected in the data.
A66
3.25
International Statistics • March 1992
M A R K E T A B L E U . S . T R E A S U R Y B O N D S A N D NOTES
Foreign Transactions
Millions of dollars
1991r
1991
Country or area
1989
1990
Jan.Nov.
May
June
July
Aug.
Sept.
Oct.
NOV.p
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total 2
2 Foreign countries
2
3 Europe 2
4
Belgium-Luxembourg
5 Germany
6
Netherlands
7
Sweden
8
Switzerland
9
United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
13
14
15
16
17
18
19
20
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
International
22
23
Latin American regional
54,203
18,927r
17,897
15,046r
-5,740
725
1,356
-3,862
414
5,471
52,301
r
18,764
18,406
15,028r
-5,271
407
722
-2,804
-171
5,355
36,286
1,048
7,904
-1,141
693
1,098
20,198
6,508
-21
698
18,455r
10
5,880
1,077
1,152
112
-1,2(0
11,463r
13
-4,627 r
6,754
526
-4,586
-2,847
-1,244
1,809
3,298
9,794
3
-905
4,144r
113
1,433
-165
560
230
1,434r
540
-3
342
-4,184
-104
-1,458
-727
31
207
-1,249
-886
3
-114
-1,082
-109
684
-997
-299
-218
-398
258
-3
395
1,554
71
-360
-372
-239
292
388
1,774
0
-118
464
-190
195
-426
3
-184
-32
1,090
8
78
228
1
326
549
46
195
-311
-578
0
-838
5,033
183
707
-25
-74
1,131
212
2,912
-13
-441
464
14,734r
311
33
-322
3,943r
475
10,757
13,297 - 10,952r
1,681 -14,785 r
116
313
1,439
842
10,466
-112
6,383
4,195
2,598
-2,702
371
-878
10,481
2
5,687
4,793
12
711
1
48
161
20
-233
374
-879
1,422
104
-358
1,669
7
242
1,420
-491
45
7
-91
1,436
-20
-2,010
3,466
-2,115
-364
27
-62
-1,076
-2
-1,883
809
-2,067
-3,625
10
-213
-2,086
20
-14
-2,092
3,467
4,111
39
-981
-3,840
7
-523
-3,324
3,700
503
-26
929
1,902
1,473
231
163
287
-2
-509
-1,122
84
18
43
-186
-469
3
-9
318
168
150
634
654
-146
-1,058
-1,211
152
585
287
72
116
117
-133
52,301
26,840
25,461
18,764r
23,218
-4,453 r
18,406
2,885
15,521
15,028r
2,020
13,008r
-5,271
-5,832
560
407
-704
1,111
722
-289
1,011
-2,804
830
-3,634
-171
512
-683
5,355
7,215
-1,860
8,148
-1
-387
0
-6,659
20
-562
0
-505
0
-643
0
-3,731
0
-795
0
313
0
96
0
MEMO
24 Foreign countries
25
Official institutions
26
Other foreign
Oil-exporting countries
27 Middle East 3
28 Africa 4
1. Estimated official and private transactions in marketable U.S. Treasury
securities having an original maturity of more than one year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes, denominated in foreign currencies, publicly
issued to private foreign residents.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
Interest and Exchange Rates
3.26
A67
D I S C O U N T R A T E S OF FOREIGN C E N T R A L B A N K S
Percent per year
Country
Country
Percent
8.0
Austria..
Belgium .
Canada..
Denmark
France ..
8.5
7.29
9.5
9.6
Month
effective
Dec. 1991
Dec. 1991
Jan. 1992
Dec. 1991
Dec. 1991
Percent
Germany, Fed. Rep. of,
Italy
Japan
Netherlands
1. Since Feb. 1981, the rate has been that at which the Bank of France
discounts Treasury bills for seven to ten days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
3.27
Rate on Jan. 31, 1992
Rate on Jan. 31, 1992
Rate on Jan. 31, 1992
Country
8.0
12.0
4.5
8.5
Month
effective
Month
effective
Dec.
Nov.
Dec.
Dec.
1991
1991
1991
1991
10.50
7.0
Norway
Switzerland
United Kingdom2
July 1990
Aug. 1991
or makes advances against eligible commercial paper or government securities for
commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
Averages of daily figures, percent per year
1992
1991
Type or country
1989
1990
1991
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
3
4
5
9.16
13.87
12.20
7.04
6.83
8.16
14.73
13.00
8.41
8.71
5.86
11.47
9.07
9.15
8.01
6.01
11.04
8.78
9.06
7.74
5.65
10.85
8.73
9.23
7.80
5.50
10.24
8.59
9.16
7.90
5.34
10.38
8.29
9.28
8.09
4.96
10.44
7.75
9.33
7.89
4.48
10.73
7.50
9.48
7.99
4.06
10.60
7.23
9.45
7.55
6
7
8
9
10
7.28
9.27
12.44
8.65
5.39
8.57
10.20
12.11
9.70
7.75
9.19
9.49
12.04
9.30
7.33
9.09
11.74
9.12
7.56
9.27
9.46
11.86
9.25
7.31
9.21
9.30
11.63
9.01
6.70
9.27
9.20
11.44
9.22
6.41
9.32
9.41
11.66
9.39
6.22
9.59
9.97
12.46
9.61
6.02
9.45
9.86
12.00
9.41
5.18
1
i
NOTE. Rates are for three-month interbank loans, with the following exceptions: Canada, finance company paper; Belgium, three-month Treasury bills; and
Japan, CD rate.
9.46
A68
3.28
International Statistics • March 1992
FOREIGN E X C H A N G E RATES 1
Currency units per dollar
1991
Country/currency
1989
1990
Aug.
1
2
3
4
5
6
7
8
9
10
Australia/dollar 2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
11
12
13
14
15
16
17
18
19
20
Hong Kong/dollar
India/rupee
Ireland/pound 2
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar 2
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/pound
1992
1991
Sept.
Oct.
Nov.
Dec.
79.186
13.236
39.409
1.1842
3.7673
7.3210
4.2963
6.3802
1.8808
162.60
78.069
11.331
33.424
1.1668
4.7921
6.1899
3.8300
5.4467
1.6166
158.59
77.872
11.686
34.195
1.1460
5.3337
6.4038
4.0521
5.6468
1.6610
182.63
78.235
12.267
35.890
1.1452
5.3725
6.7396
4.2325
5.9244
1.7435
192.69
79.369
11.910
34.878
1.1370
5.3869
6.5367
4.1241
5.7621
1.6933
188.07
79.251
11.887
34.787
1.1279
5.3917
6.5246
4.1155
5.7583
1.6893
188.50
78.660
11.408
33.391
1.1302
5.3994
6.2947
4.1953
5.5391
1.6208
183.68
77.122
11.003
32.198
1.1467
5.4232
6.0831
4.2447
5.3406
1.5630
179.52
7.8008
16.213
141.80
1,372.28
138.07
2.7079
2.1219
59.561
6.9131
157.53
7.7899
17.492
165.76
1,198.27
145.00
2.7057
1.8215
59.619
6.2541
142.70
7.7712
22.712
158.26
1,241.28
134.59
2.7503
1.8720
57.832
6.4912
144.77
7.7646
25.846
153.38
1,303.31
136.82
2.7806
1.9650
57.353
6.8118
149.72
7.7524
25.834
157.87
1,266.25
134.30
2.7577
1.9084
57.989
6.6266
145.64
7.7542
25.797
158.21
1,263.20
130.77
2.7469
1.9039
56.306
6.6136
145.41
7.7591
25.802
164.75
1,221.04
129.63
2.7412
1.8269
56.352
6.3643
141.43
7.7738
25.818
170.46
1.9511
2.6214
674.29
118.44
35.947
6.4559
1.6369
26.407
25.725
163.82
1.8134
2.5885
710.64
101.96
40.078
5.9231
1.3901
26.918
25.609
178.41
1.7283
2.7633
736.73
104.01
41.200
6.0521
1.4356
26.759
25.528
176.74
1.7269
2.8704
733.90
108.92
41.723
6.3311
1.5201
26.730
25.720
168.41
1.7002
2.8316
744.18
106.28
41.935
6.1652
1.4803
26.559
25.617
172.65
1.6940
2.8314
753.54
106.54
42.179
6.1552
1.4781
26.406
25.397
172.31
89.84
93.47
90.69
Jan.
74.756
11.108
32.501
1.1571
5.4618
6.1257
4.2971
5.3858
1.5788
182.42
128.04
2.7417
1.7618
55.256
6.1558
138.90
7.7612
25.863
168.73
1,189.76
125.46
2.6891
1.7780
54.194
6.2044
136.92
1.6709
2.7916
757.44
102.56
42.374
5.9246
1.4348
25.975
25.497
177.96
1.6453
2.7665
761.68
99.70
42.523
5.7158
1.3855
25.759
25.431
182.72
1.6337
2.7831
767.09
100.05
42.665
5.7461
1.4039
25.150
25.328
180.90
87.98
85.65
86.09
1,182.21
MEMO
31 United States/dollar 3 . . .
98.60
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 world trade of that country divided by the average world
trade of all ten countries combined. Series revised as of August 1978 (see Federal
Reserve Bulletin, vol. 64 (August 1978), p. 700).
A69
Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List Published Semiannually, with Latest
BULLETIN
Reference
Issue
December 1991
Anticipated schedule of release dates for periodic releases
SPECIAL TABLES—Quarterly Data Published Irregularly, with Latest
BULLETIN
Reference
Title and Date
Issue
Assets and liabilities of commercial
December 31, 1990
March 31, 1991
June 30, 1991
September 30, 1991
Terms of lending at commercial
February 1991
May 1991
August 1991
November 1991
May
August
November
February
1991
1991
1991
1992
A72
A72
A70
A70
August
October
December
March
1991
1991
1991
1992
A78
A72
A70
A70
June
November
December
February
1991
1991
1991
1992
A72
A76
A74
A80
October
August
November
January
1990
1991
1991
1992
A72
A82
A80
A70
December 1991
A79
banks
banks
Pro forma balance sheet and income statements for priced service
June 30, 1990
March 31, 1991
June 30, 1991
September 30, 1991
Assets and liabilities of life insurance
June 30, 1991
Page
banks
Assets and liabilities of U.S. branches and agencies of foreign
December 31, 1990
March 31, 1991
June 30, 1991
September 30, 1991
Special table follows.
Page
A86
operations
companies
A70
4.23
Special Tables • March 1992
T E R M S OF L E N D I N G AT COMMERCIAL B A N K S Survey of Loans Made, November 4 - 8 , 19911
A. Commercial and Industrial Loans
Characteristic
Amount of
loans
($1,000)
Average
size
($1,000)
Weighted
average
maturity 2
Days
Loan rate (percent)
Loans
secured
by
collateral
(percent)
Loans
made
under
commitment
(percent)
6.34
6.15
7.05
30.8
28.2
40.8
84.5
82.3
92.6
7.2
6.98
47.0
30.8
58.1
85.1
80.8
88.0
12.8
7.48
7.39
5.99
7.71
61.8
23.1
70.5
71.2
83.0
68.6
6.73
40.3
74.1
9.5
17.9
64.1
50.7
35.8
31.2
17.6
12.6
73.4
50.0
75.9
79.2
11.4
1.3
72.5
71.1
11.3
9.8
9.3
12.7
7.4
1.9
4.3
7.7
10.0
9.8
6.7
Weighted
average
effective
Standard
error
Participation
loans
(percent)
A L L BANKS
1 Overnight 6
7,486,720
6,538
2 One month and under (excluding
overnight)
3
Fixed rate
4
Floating rate
4,837,735
3,826,970
1,010,765
1,952
3,685
702
18
5 Over one month and under a year
6
Fixed rate
7
Floating rate
6,511,228
2,661,556
3,849,671
472
1,076
340
141
109
163
8 Demand 7
9
Fixed rate
10
Floating rate
11,976,360
2,193,495
9,782,863
346
1,375
296
11 Total short term
30,812,030
592
12 Fixed rate (thousands of dollars)
13 1-99
14 100-499
15 500-999
16 1,000-4,999
17 5,000-9,999
18 10,000 and over
16,018,350
54,683
195,485
274,904
2,841,805
3,194,643
9,456,835
2,567
20
237
682
2,294
6,593
18,245
27
126
76
48
35
25
5.95
9.18
7.39
6.53
6.31
6.07
5.73
19 Floating rate (thousands of d o l l a r s ) . . .
20 1-99
21 100-499
22 500-999
23 1,000-4,999
24 5,000-9,999
25 10,000 and over
14,793,680
918,329
1,939,772
1,101,852
3,401,497
1,961,525
5,470,709
323
28
203
678
2,074
6,706
22,807
129
166
160
151
127
103
123
7.58
8.93
8.64
8.34
7.86
7.35
6.73
64.6
80.9
76.9
67.5
61.3
61.0
60.3
74.9
79.9
84.9
85.5
85.8
85.3
57.9
26 Total long term
19
17
21
6.26
81.8
8.3
8.6
10.1
14.6
9.2
30.0
4.6
6.6
3,770,332
537
7.76
71.1
77.2
27 Fixed rate (thousands of dollars) . .
28 1-99
29 100-499
30 500-999
31 1,000 and over
575,631
16,982
41,721
25,966
490,961
540
22
235
719
5,010
6.81
9.85
8.44
6.47
54.6
86.4
72.2
73.6
51.0
87.4
35.4
56.6
62.1
93.2
3.5
.0
6.6
4.3
3.3
32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1,000 and over
3,194,701
96,274
414,979
350,324
2,333,125
536
32
230
693
3,693
7.93
8.88
8.52
8.30
7.73
74.1
83.9
80.5
76.3
72.2
75.4
6.4
2.5
26.8
35.1
45.2
83.4
86.5
58.9
8.61
49.5
58.4
63.3
81.3
8.0
9.5
5.8
Loan rate (percent)
Days
Effective
Nominal
LOANS M A D E B E L O W PRIME
37 Overnight 6
38 One month and under (excluding
overnight)
39 Over one month and under a y e a r . .
40 Demand 7
7,291,473
5.60
18
115
6.00
5.92
5.81
4,282,980
4,081,364
5,692,173
4,292
2,724
3,131
41 Total short term
21,347,980
4,024
5.85
42 Fixed rate
43 Floating rate
15,219,460
6,128,526
4,753
2,914
5.82
5.93
5.78
5.84
15.8
50.9
6.08
6.03
6.31
6.20
48.9
56.1
6.05
5.97
5.89
7.6
12.7
12.7
10.0
25.9
72.9
62.8
11.5
6.4
Months
44 Total long term
1,472,962
1,961
45 Fixed rate . . . .
46 Floating rate . .
439,330
1,033,632
2,335
1,836
For notes see end of table.
80.2
94.9
73.9
3.5
6.8
Financial Markets
4.23—Continued
A.—Continued
Characteristic
Amount of
loans
($1,000)
Average
size
($1,000)
Weighted
average
maturity
Days
Loan rate (percent)
Weighted
average
effective
Standard
error
Loans
secured
by
collateral
(percent)
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
LARGE BANKS
8.5
1 Overnight 6
6,528,170
6,982
2 One month and under (excluding
overnight)
3
Fixed rate
4
Floating rate
4,160,260
3,269,437
890,823
2,838
4,585
1,183
18
19
16
6.30
6.13
6.91
30.3
28.2
37.9
5 Over one month and under a year .
6
Fixed rate
7
Floating rate
5,055,846
2,000,993
3,054,852
865
2,418
134
108
150
6.87
6.16
7.33
48.1
33.1
57.9
87.4
83.8
89.8
14.5
10.3
17.2
,9436,314
1,793,910
7,642,404
427
2,038
360
7.29
5.97
7.60
63.1
23.0
72.5
65.9
80.8
62.4
34.4
4.3
8 Demand 7
9
Fixed rate
10
Floating rate
11 Total short term
25,180,589
830
12 Fixed rate (thousands of dollars) . .
13 1-99
14 100-499
15 500-999
16 1,000-4,999
17 5,000-9,999
18 10,000 and over
13,445,509
116,945
203,155
2,229,267
2,529,969
8,348,064
4,019
24
235
687
2,273
6,579
18,633
19 Floating rate (thousands of dollars)
20 1-99
21 100-499
22 500-999
23 1,000-4,999
24 5,000-9,999
25 10,000 and over
11,735,080
518,822
1,168,412
726,840
2,613,260
1,708,801
4,998,945
434
28
205
678
2,151
6,737
23,558
18,110
5.70
6.2
6.1
6.7
10.0
6.63
39.8
71.8
9.9
25
5.91
122
8.82
57
41
33
20
23
7.42
6.58
6.33
6.05
5.72
17.5
57.9
46.8
38.3
30.4
17.8
13.0
72.2
51.9
78.4
78.6
83.0
71.7
69.2
11.7
1.7
4.5
7.8
8.5
9.4
13.5
116
7.45
8.85
8.59
8.26
7.77
7.38
6.77
65.3
80.4
75.0
66.4
61.0
64.3
63.8
71.4
72.8
7.8
1.8
3.5
8.1
9.9
10.5
7.4
164
148
138
126
93
108
81.1
83.4
83.8
85.2
56.1
Months
3,344,901
685
7.73
72.3
77.8
27 Fixed rate (thousands of dollars) . .
28 1-99
29 100-499
30 500-999
31 1,000 and over
466,522
6,234
20,337
13,415
426,535
1,176
28
253
700
5,975
6.53
9.59
8.46
8.33
6.33
51.2
84.5
77.9
63.1
49.1
94.3
31.1
60.9
60.1
97.9
32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1,000 and over
2,878,379
68,741
337,152
308,425
2,164,061
641
34
235
694
3,702
7.92
8.78
8.47
8.28
7.76
75.7
85.8
79.1
74.0
75.2
44.9
55.7
63.6
80.8
9.2
8.4
5.6
6.00
5.92
5.79
27.4
38.1
50.6
82.2
87.1
51.8
5.2
13.6
13.6
26 Total long term
81.2
2.1
.0
5.5
8.4
1.7
6.3
2.1
Loan rate (percent)
Days
Effective 3
Nominal 8
LOANS MADE BELOW PRIME 1 0
37 Overnight 6
38 One month and under (excluding
overnight)
39 Over one month and under a year
40 Demand 7
41 Total short term
42 Fixed rate
43 Floating rate
6,368,472
18
109
6.05
5.97
5.88
3,753,599
3,362,187
4,829,994
4,646
3,621
4,137
18,314,252
4,911
5.85
5,575
3,822
5.82
5.92
5.78
5.84
15.4
56.0
71.3
58.1
11.6
6.7
6.01
6.30
5.97
6.19
49.2
57.9
97.3
71.6
7.5
12,915,661
5,398,591
10.2
Months
44 Total long term
1,322,293
2,215
45 Fixed rate
46 Floating rate . .
385,809
936,485
3,804
1,890
For notes see end of table.
45
1.6
A71
A72
4.23
Special Tables • March 1992
TERMS OF L E N D I N G AT COMMERCIAL B A N K S Survey of Loans Made, November 4 - 8 , 1991'—Continued
A. Commercial and Industrial Loans—Continued
Characteristic
Amount of
loans
($1,000)
Average
size
($1,000)
Weighted
average
maturity
Days
Loan rate (percent)
Weighted
average
effective
Standard
error
Loans
secured
by
collateral
(percent)
Loans
made
under
commitment
(percent)
11.0
74.2
Participation
loans
(percent)
OTHER B *NKS
1 Overnight 6
958,550
2 One month and under (excluding
overnight)
3
Fixed rate
4
Floating rate
677,475
557,533
119,941
670
,713
175
1,455,382
660,563
794,819
183
401
166
126
212
8 Demand 7
9
Fixed rate
10
Floating rate
2,540,044
399,585
2,140,459
203
559
11 Total short term
5,631,451
12 Fixed rate (thousands of dollars) . .
13 1-99
14 100-499
15 500-999
16 1,000-4,999
17 5,000-9,999
18 10,000 and over
2,572,845
36,573
78,541
71,749
612,538
664,674
1,108,771
18
239
667
2,374
6,647
15,771
104
68
45
26
36
19 Floating rate (thousands of dollars)
20 1-99
21 100-499
22 500-999
23 1,000-4,999
24 5,000-9,999
25 10,000 and over
3,058,605
399,507
771,360
375,013
788,238
252,723
471,764
163
29
200
676
1,853
6,502
17,047
186
167
173
181
136
201
285
5 Over one month am' under a year .
6
Fixed rate
7
Floating rate
18
6.62
34.3
17
6.30
8.07
28.2
62.4
91.0
91.4
89.0
21.0
23.1
10.8
7.37
6.57
8.03
43.0
23.8
59.0
76.9
71.5
81.3
6.7
9.4
4.5
7.79
6.10
8.10
56.9
23.7
63.1
91.2
92.9
90.9
6.4
10.3
5.6
83
7.18
42.8
84.6
7.4
39
6.10
9.36
7.34
6.41
6.24
6.14
5.79
20.0
67.2
56.5
80.1
49.1
72.1
9.6
1.2
9.7
28.8
81.1
21.2
34.3
16.8
9.3
77.6
75.8
85.6
14.5
8.9
62.0
88.3
89.1
90.8
89.6
92.4
85.8
77.2
5.6
22
111
182
128
26 Total long term
425,432
199
27 Fixed rate (thousands of dollars) . .
28 1-99
29 100-499
30 500-999
31 1,000 and over
109,109
10,748
21,384
12,551
64,427
163
20
221
740
2,421
80
41
40
55
104
32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1,000 and over
316,323
27,534
77,827
41,898
169,063
216
37
35
42
36
34
28
209
687
3,578
9.03
8.71
8.49
8.16
7.16
81.6
79.8
69.5
6.28
22.8
62.0
38.1
6.8
2.1
5.6
7.0
10.3
5.3
.0
8.00
72.4
7.9
8.05
58.0
37.9
52.6
64.3
61.9
9.7
10.00
87.5
8.74
8.56
7.40
66.8
7.98
9.12
8.76
8.44
7.33
59.3
78.9
77.9
55.4
48.6
84.9
63.2
77.3
.0
7.5
.0
13.9
70.1
61.4
87.3
7.3
3.6
2.7
17.6
7.5
24.7
8.9
7.8
60.8
Loan rate (percent)
Days
Effective
Nominal'
LOANS M A D E BEI OW PRIME
37 Overnight 6
38 One month and under (excluding
overnight)
39 Over one month and under a year
40 Demand"
923,001
5.57
5.51
11.3
529,381
719,177
862,179
2,786
1,263
1,325
16
143
6.06
5.96
5.94
6.00
5.88
5.87
22.5
21.1
14.9
91.6
83.7
98.4
41 Total short term
3,033,738
1,925
52
5.86
5.78
16.6
86.1
9.2
42 Fixed rate
43 Floating rate
2,303,803
729,934
2,602
1,056
31
223
5.81
6.01
5.74
5.92
17.5
13.7
82.4
97.9
10.6
4.6
617
1,438
117
30
6.53
6.36
6.43
46.6
39.3
44 Total long term
150,669
45 Fixed rate
46 Floating rate . .
53,521
97,148
For notes see following page.
6.26
1.9
89.8
6.0
77.7
96.4
16.7
Financial Markets
A73
NOTES TO TABLE 4.23
1. As of Sept. 30, 1990, assets of most of the large banks were at least $7.0
billion. For all insured banks, total assets averaged $275 million.
2. Average maturities are weighted by loan size and exclude demand loans.
3. Effective (compounded) annual interest rates are calculated from the stated
rate and other terms of the loans and weighted by loan size.
4. The chances are about two out of three that the average rate shown would
differ by less than this amount from the average rate that would be found by a
complete survey of lending at all banks.
5. The most common base rate is that used to price the largest dollar volume of
loans. Base pricing rates include the prime rate (sometimes referred to as a bank's
"basic" or "reference" rate); the federal funds rate; domestic money market
rates other than the federal funds rate; foreign money market rates; and other base
rates not included in the foregoing classifications.
6. Overnight loans mature on the following business day.
7. Demand loans have no stated date of maturity.
8. Nominal (not compounded) annual interest rates are calculated from the
stated rate and other terms of the loans and weighted by loan size.
9. The prime rate reported by each bank is weighted by the volume of loans
extended and then averaged.
10. The proportion of loans made at rates below the prime may vary substantially from the proportion of such loans outstanding in banks' portfolios.
A74
Index to Statistical Tables
References are to pages A3-A73 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 20, 21
Assets and liabilities (See also Foreigners)
Banks, by classes, 19—21
Domestic finance companies, 34
Federal Reserve Banks, 11
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 22
Automobiles
Consumer installment credit, 37, 38
Production, 47, 48
BANKERS acceptances, 10, 23, 24
Bankers balances, 19-21 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 33
Rates, 24
Branch banks, 22, 55
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 33
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 19
Federal Reserve Banks, 11
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 17, 20, 70-73
Weekly reporting banks, 20-22
Commercial banks
Assets and liabilities, 19-21, 70-73
Commercial and industrial loans, 17, 19, 20, 21, 22
Consumer loans held, by type and terms, 37, 38
Loans sold outright, 20
Nondeposit funds, 18
Real estate mortgages held, by holder and property, 36
Terms of lending, 70-73
Time and savings deposits, 4
Commercial paper, 23, 24, 34
Condition statements (See Assets and liabilities)
Construction, 44, 49
Consumer installment credit, 37, 38
Consumer prices, 44, 46
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 33
Profits and their distribution, 33
Security issues, 32, 65
Cost of living (See Consumer prices)
Credit unions, 37
Currency and coin, 19
Currency in circulation, 5, 14
Customer credit, stock market, 25
DEBITS to deposit accounts, 16
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 19-22
Demand deposits—Ccontinued
Ownership by individuals, partnerships, and corporations,
22
Turnover, 16
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5, 6, 13
Deposits (See also specific types)
Banks, by classes, 4, 19-21, 22
Federal Reserve Banks, 5,11
Turnover, 16
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 33
EMPLOYMENT, 45
Eurodollars, 24
FARM mortgage loans, 36
Federal agency obligations, 5, 10, 11, 12, 29, 30
Federal credit agencies, 31
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 28
Receipts and outlays, 26, 27
Treasury financing of surplus, or deficit, 26
Treasury operating balance, 26
Federal Financing Bank, 26, 31
Federal funds, 7, 18, 20, 21, 22, 24, 26
Federal Home Loan Banks, 31
Federal Home Loan Mortgage Corporation, 31, 35, 36
Federal Housing Administration, 31, 35, 36
Federal Land Banks, 36
Federal National Mortgage Association, 31, 35, 36
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 5, 11, 12, 28
Federal Reserve credit, 5, 6, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 31
Finance companies
Assets and liabilities, 34
Business credit, 34
Loans, 37, 38
Paper, 23, 24
Financial institutions
Loans to, 20, 21, 22
Selected assets and liabilities, 26
Float, 51
Flow of funds, 39, 41, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 22
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 11, 20, 21
Foreign exchange rates, 68
Foreign trade, 54
A75
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 21, 54, 55, 57, 58, 63, 65, 66
GOLD
Certificate account, 11
Stock, 5, 54
Government National Mortgage Association, 31, 35, 36
Gross national product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51, 52
Industrial production, 44, 47
Installment loans, 37, 38
Insurance companies, 28, 36
Interest rates
Bonds, 24
Commercial banks, 70-73
Consumer installment credit, 38
Federal Reserve Banks, 8
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 35
Prime rate, 23
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 33
Investments (See also specific types)
Banks, by classes, 19, 20, 21, 22, 26
Commercial banks, 4, 17, 19-21
Federal Reserve Banks, 11, 12
Financial institutions, 36
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 19—21
Commercial banks, 4, 17, 19-21
Federal Reserve Banks, 5, 6, 8, 11, 12
Financial institutions, 26, 36
Insured or guaranteed by United States, 35, 36
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 7
Reserve requirements, 9
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 4, 13
Money and capital market rates, 24
Money stock measures and components, 4, 14
Mortgages (See Real estate loans)
Mutual funds, 33
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 27
National income, 51
OPEN market transactions, 10
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, 23
Producer prices, 44, 50
Production, 44, 47
Profits, corporate, 33
REAL estate loans
Banks, by classes, 17, 20, 21, 36
Financial institutions, 26
Terms, yields, and activity, 35
Type of holder and property mortgaged, 36
Repurchase agreements, 7, 18, 20, 21, 22
Reserve requirements, 9
Reserves
Commercial banks, 19
Depository institutions, 4, 5, 6, 13
Federal Reserve Banks, 11
U.S. reserve assets, 54
Residential mortgage loans, 35
Retail credit and retail sales, 37, 38, 44
SAVING
Flow of funds, 39,41,42, 43
National income accounts, 51
Savings and loan associations, 36, 37, 39. (See also SAIF-insured
institutions)
Savings Association Insurance Funds (SAIF) insured institutions, 26
Savings banks, 26, 36, 37
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 31
Foreign transactions, 65
New issues, 32
Prices, 25
Special drawing rights, 5, 11, 53, 54
State and local governments
Deposits, 20, 21
Holdings of U.S. government securities, 28
New security issues, 32
Ownership of securities issued by, 20, 21
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 32
Prices, 25
Student Loan Marketing Association, 31
TAX receipts,
federal,
27 also Credit unions and Savings and
Thrift
institutions,
4. (See
loan associations)
Time and savings deposits, 4, 14, 18, 19, 20, 21, 22
Trade, foreign, 54
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 11, 26
Treasury operating balance, 26
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 19, 20, 21
Treasury deposits at Reserve Banks, 5, 11, 26
U.S. government securities
Bank holdings, 19-21, 22, 28
Dealer transactions, positions, and financing, 30
Federal Reserve Bank holdings, 5, 11, 12, 28
Foreign and international holdings and transactions, 11, 28,
66
Open market transactions, 10
Outstanding, by type and holder, 26, 28
Rates, 23
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 35, 36
WEEKLY reporting banks, 20-22
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)
A76
Federal Reserve Board of Governors
and Official Staff
Chairman
Vice Chairman
A L A N GREENSPAN,
D A V I D W . MULLINS, JR.,
OFFICE
OF BOARD
W A Y N E D . ANGELL
EDWARD W . KELLEY, JR.
DIVISION
MEMBERS
JOSEPH R . COYNE, Assistant
to the
Board
DONALD J. WINN, Assistant
to the
Board
OF INTERNATIONAL
EDWIN M . TRUMAN, Staff
THEODORE E. ALLISON, Assistant to the Board for Federal
Reserve System Affairs
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
LARRY J. PROMISEL, Senior Associate
Director
CHARLES J. SIEGMAN, Senior Associate
Director
DALE W. HENDERSON, Associate
Director
DAVID H . HOWARD, Senior
Adviser
DONALD B . ADAMS, Assistant
Director
PETER HOOPER III, Assistant
LEGAL
Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RLCKL R. TIGERT, Associate General Counsel
KATHLEEN M. O'DAY, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
OFFICE
OF THE
Director
KAREN H. JOHNSON, Assistant
DIVISION
J. VIRGIL MATTINGLY, JR., General
Secretary
JENNIFER J. JOHNSON, Associate
Secretary
BARBARA R . LOWREY, Associate
Secretary
1
RICHARD C . STEVENS, Assistant
Secretary
OF RESEARCH
MICHAEL J. PRELL,
STATISTICS
Director
WILLIAM R . JONES, Associate
Director
THOMAS D . SIMPSON, Associate
Director
MYRON L . KWAST, Assistant
Director
PATRICK M . PARKINSON, Assistant
MARTHA S . SCANLON, Assistant
Director
Director
Director
Adviser
LEVON H . GARABEDIAN, Assistant
Director
(Administration )
Director
DOLORES S . SMITH, Assistant
DIVISION
OF MONETARY
AFFAIRS
Director
DONALD L . KOHN,
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
HERBERT A . BIERN, Assistc
Director
Director
L
JAMES I. GARNER, Assistant
rector
Director
JAMES D . GOETZINGER, Assistant
Director
MICHAEL G . MARTINSON, Assistant
ROBERT S . PLOTKIN, Assistant
SIDNEY M . SUSSAN, Assistant
LAURA M. HOMER, Securities
Director
Director
Director
Credit
Officer
1. On loan from the Division of Information Resources Management.
AND
Director
ELLEN MALAND, Assistant
ROGER T . COLE, Assistant
Director
Director
EDWARD C . ETTIN, Deputy
JOHN J. MINGO,
Director
GLENN E . LONEY, Assistant
DIVISION
JOYCE K. ZICKLER, Assistant
DIVISION OF
CONSUMER
AND COMMUNITY
AFFAIRS
GRIFFITH L . GARWOOD,
Director
RALPH W . SMITH, JR., Assistant
LAWRENCE SLIFMAN, Associate
Director
DAVID J. STOCKTON, Associate
Director
MARTHA BETHEA, Deputy Associate
Director
PETER A. TINSLEY, Deputy Associate
Director
SECRETARY
WILLIAM W . WILES,
FINANCE
Director
Director
DAVID E. LINDSEY, Deputy
Director
BRIAN F. MADIGAN, Assistant
Director
RICHARD D . PORTER, Assistant
Director
NORMAND R.V. BERNARD, Special Assistant to the Board
OFFICE
OF THE INSPECTOR
BRENT L . BOWEN, Inspector
GENERAL
General
BARRY R. SNYDER, Assistant Inspector
General
All
JOHN P . LAWARE
LAWRENCE B . LINDSEY
OFFICE OF
STAFF DIRECTOR
SUSAN M . PHILLIPS
FOR
MANAGEMENT
S. DAVID FROST, Staff
Director
WILLIAM SCHNEIDER, Special
Assignment:
Project Director, National Information Center
PORTIA W. THOMPSON, Equal Employment Opportunity
Programs Officer
DIVISION OF HUMAN
MANAGEMENT
DAVID L . SHANNON,
RESOURCES
FRED HOROWITZ, Assistant
OF THE
Director
Director
Director
CONTROLLER
GEORGE E . LIVINGSTON,
Controller
STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
DIVISION
OF SUPPORT
ROBERT E . FRAZIER,
SERVICES
Director
GEORGE M. LOPEZ, Assistant
Director
DAVID L. WILLIAMS, Assistant
Director
DIVISION OF INFORMATION
MANAGEMENT
STEPHEN R . MALPHRUS,
RESOURCES
Director
BRUCE M. BEARDSLEY, Deputy
ROBERT J. ZEMEL, Senior
Director
Adviser
MARIANNE M. EMERSON, Assistant Director
Po KYUNG KIM, Assistant Director
RAYMOND H. MASSEY, Assistant
EDWARD T. MULRENIN, Assistant
Director
Director
DAY W. RADEBAUGH, JR., Assistant
ELIZABETH B. RIGGS, Assistant
Director
CHARLES W. BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director
JOHN H. PARRISH, Assistant
Director
Director
Director
OPERATIONS
DAVID L. ROBINSON, Deputy Director (Finance and
Control)
BRUCE J. SUMMERS, Deputy Director (Payments and
Automation)
EARL G. HAMILTON, Assistant
ANTHONY V. DIGIOIA, Assistant
JOSEPH H. HAYES, JR., Assistant
OFFICE
CLYDE H . FARNSWORTH, JR.,
Director
JEFFREY C. MARQUARDT, Assistant
Director
JOHN R. WEIS, Associate
DIVISION OF RESERVE BANK
AND PAYMENT
SYSTEMS
Director
Director
LOUISE L. ROSEMAN, Assistant
FLORENCE M. YOUNG, Assistant
Director
Director
A78
Federal Reserve Bulletin • March 1992
Federal Open Market Committee
and Advisory Councils
FEDERAL
OPEN MARKET
COMMITTEE
MEMBERS
ALAN GREENSPAN,
E. GERALD CORRIGAN, Vice Chairman
Chairman
WAYNE D . ANGELL
JOHN P. LAWARE
WILLIAM H . HENDRICKS
LAWRENCE B . LINDSEY
SUSAN M . PHILLIPS
THOMAS H . HOENIG
THOMAS C . MELZER
RICHARD F. SYRON
DAVID W . MULLINS, JR.
EDWARD W . KELLEY, JR.
ALTERNATE
MEMBERS
ROBERT D . MCTEER, JR.
EDWARD G . BOEHNE
JAMES H . OLTMAN
GARY H . STERN
SILAS KEEHN
STAFF
DONALD L. KOHN, Secretary and
Economist
NORMAND R.V. BERNARD, Deputy
Secretary
JOSEPH R. COYNE, Assistant
Secretary
GARY P. GILLUM, Assistant
Secretary
J. VIRGIL MATTINGLY, JR., General
Counsel
ERNEST T. PATRIKIS, Deputy General Counsel
MICHAEL J. PRELL,
Economist
EDWIN M . TRUMAN,
Economist
ANATOL B. BALBACH, Associate
Economist
JOHN M. DAVIS, Associate
Economist
RICHARD G. DAVIS, Associate
Economist
THOMAS E. DAVIS, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
ALICIA H. MUNNELL, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
DAVID J. STOCKTON, Associate
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
WILLIAM J. MCDONOUGH, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY
COUNCIL
IRA STEPANIAN, First District
CHARLES S. SANFORD, JR., Second District
TERRENCE A. LARSEN, Third District
JOHN B. MCCOY, Fourth District
EDWARD E. CRUTCHFIELD, Fifth District
E.B. ROBINSON, JR., Sixth District
EUGENE A. MILLER, Seventh District
DAN W. MITCHELL, Eighth District
JOHN F. GRUNDHOFER, Ninth District
DAVID A. RISMILLER, Tenth District
RONALD G. STEINHART, Eleventh District
RICHARD M. ROSENBERG, Twelfth District
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
Secretary
Secretary
A79
CONSUMER
ADVISORY
COUNCIL
COLLEEN D. HERNANDEZ, Kansas City, Missouri, Chairman
DENNY D. DUMLER, Denver, Colorado, Vice Chairman
BARRY A . ABBOTT, S a n F r a n c i s c o , C a l i f o r n i a
JOYCE HARRIS, M a d i s o n , W i s c o n s i n
JOHN R . ADAMS, P h i l a d e l p h i a , P e n n s y l v a n i a
GARY S . HATTEM, N e w Y o r k , N e w Y o r k
JOHN A . BAKER, A t l a n t a , G e o r g i a
JULIA E . HILER, M a r i e t t a , G e o r g i a
VERONICA E . BARELA, D e n v e r , C o l o r a d o
HENRY JARAMILLO, B e l e n , N e w M e x i c o
MULGUGETTA BIRRU, P i t t s b u r g h , P e n n s y l v a n i a
KATHLEEN E . KEEST, B o s t o n , M a s s a c h u s e t t s
GENEVIEVE BROOKS, B r o n x , N e w Y o r k
EDMUND MIERZWINSKI, W a s h i n g t o n , D . C .
TOYE L . BROWN, B o s t o n , M a s s a c h u s e t t s
BERNARD F . PARKER, JR., D e t r o i t , M i c h i g a n
CATHY CLOUD, W a s h i n g t o n , D . C .
O n s PITTS, JR., Miami, Florida
MICHAEL D . EDWARDS, Y e l m , W a s h i n g t o n
JEAN POGGE, C h i c a g o , I l l i n o i s
GEORGE C . GALSTER, W o o s t e r , O h i o
JOHN V . SKINNER, I r v i n g , T e x a s
E . THOMAS GARMAN, B l a c k s b u r g , V i r g i n i a
NANCY HARVEY STEORTS, D a l l a s , T e x a s
DONALD A . GLAS, H u t c h i n s o n , M i n n e s o t a
LOWELL N . SWANSON, P o r t l a n d , O r e g a o n
DEBORAH B . GOLDBERG, W a s h i n g t o n , D . C .
MICHAEL W . TIERNEY, P h i l a d e l p h i a , P e n n s y l v a n i a
MICHAEL M . GREENFIELD, St. L o u i s , M i s s o u r i
SANDRA L . WILLETT, B o s t o n , M a s s a c h u s e t t s
THRIFT INSTITUTIONS
ADVISORY
COUNCIL
LYNN W. HODGE, Greenwood, South Carolina, President
DANIEL C. ARNOLD, Houston, Texas, Vice President
JAMES L . BRYAN, R i c h a r d s o n , T e x a s
PRESTON MARTIN, S a n F r a n c i s c o , C a l i f o r n i a
VANCE W. CHEEK, Johnson City, Tennessee
RICHARD D . PARSONS, N e w Y o r k , N e w Y o r k
BEATRICE D'AGOSTINO, S o m e r v i l l e , N e w J e r s e y
THOMAS R . RICKETTS, T r o y , M i c h i g a n
THOMAS J. HUGHES, M e r r i f i e l d , V i r g i n i a
EDMOND M . SHANAHAN, C h i c a g o , I l l i n o i s
RICHARD A. LARSON, West Bend, Wisconsin
WOODBURY C . TITCOMB, W o r c e s t e r , M a s s a c h u s e t t s
A80
Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
MS-138, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551 or telephone (202) 452-3244 or FAX
(202) 728-5886. When a charge is indicated, payment should
accompany request and be made payable to the Board of Governors of the Federal Reserve System. Payment from foreign residents should be drawn on a U.S. bank.
THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.
1984. 120 pp.
ANNUAL REPORT.
ANNUAL REPORT: BUDGET REVIEW, 1 9 9 0 - 9 1 .
FEDERAL RESERVE BULLETIN. M o n t h l y . $ 2 5 . 0 0 p e r y e a r o r $ 2 . 5 0
each in the United States, its possessions, Canada, and
Mexico. Elsewhere, $35.00 per year or $3.00 each.
ANNUAL STATISTICAL DIGEST
1974—78.
1981.
1982.
1983.
1984.
1985.
1986.
1987.
1988.
1980-89.
1990.
1980.
1982.
1983.
1984.
1985.
1986.
1987.
1988.
1989.
1991.
1991.
305
239
266
264
254
231
288
272
256
712
196
pp.
pp.
pp.
pp.
pp.
pp.
pp.
pp.
pp.
pp.
pp.
$10.00 per
$ 6.50 per
$ 7.50 per
$11.50 per
$12.50 per
$15.00 per
$15.00 per
$15.00 per
$25.00 per
$25.00 per
$25.00 per
copy.
copy.
copy.
copy.
copy.
copy.
copy.
copy.
copy.
copy.
copy.
Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
The Payment System Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all four
Handbooks plus substantial additional material.) $200.00
per year.
Rates for subscribers outside the United States are as follows and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI-
COUNTRY MODEL, May 1984. 590 pp. $14.50 each.
WELCOME TO THE FEDERAL RESERVE. M a r c h 1 9 8 9 . 1 4 p p .
INDUSTRIAL P R O D U C T I O N — 1 9 8 6 EDITION. D e c e m b e r 1 9 8 6 .
440 pp. $9.00 each.
FINANCIAL FUTURES AND OPTIONS IN THE U . S .
ECONOMY.
December 1986. 264 pp. $10.00 each.
FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY-
SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each.
CONSUMER EDUCATION PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies are
available without charge.
SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES
OF CHARTS. Weekly. $30.00 per year or $.70 each in the
United States, its possessions, Canada, and Mexico. Elsewhere, $35.00 per year or $.80 each.
THE FEDERAL RESERVE ACT and other statutory provisions
affecting the Federal Reserve System, as amended through
August 1990. 646 pp. $10.00.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
A N N U A L PERCENTAGE RATE TABLES ( T r u t h i n L e n d i n g —
Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp.
Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address,
$2.00 each.
Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or
more to one address, $1.25 each.
Federal Reserve Regulatory Service. Looseleaf; updated at least
monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
Businesses
How to File A Consumer Credit Complaint
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancing
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
Making Deposits: When Will Your Money Be Available?
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit
A81
STAFF STUDIES: Summaries Only Printed in the
Bulletin
1 6 0 . BANKING MARKETS AND THE U S E OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, b y G r e -
Studies and papers on economic and financial subjects that are
of general interest. Requests to obtain single copies of the full
text or to be added to the mailing list for the series may be sent
to Publications Services.
1 6 1 . A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY,
Staff Studies 1-145 are out of print.
1 6 2 . EVIDENCE ON THE SIZE OF BANKING MARKETS FROM
MORTGAGE LOAN RATES IN TWENTY CITIES, b y S t e p h e n
gory E. Elliehausen and John D. Wolken. September 1990.
35 pp.
1980-90, by Margaret Hastings Pickering. May 1991.
21pp.
A. Rhoades. February 1992. 11 pp.
1 4 6 . THE ROLE OF THE PRIME RATE IN THE PRICING OF BUSINESS LOANS BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 , b y T h o -
mas F. Brady. November 1985. 25 pp.
1 4 7 . REVISIONS IN THE MONETARY SERVICES (DIVISIA) INDEXES OF THE MONETARY AGGREGATES, b y H e l e n T . Farr
and Deborah Johnson. December 1985. 42 pp.
1 4 8 . THE MACROECONOMIC AND SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY T A X ACT: SOME SIMULATION
RESULTS, by Flint Bray ton and Peter B. Clark. December
1985. 17 pp.
1 4 9 . THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE AND AFTER ACQUISITION, b y S t e p h e n
A. Rhoades. April 1986. 32 pp.
1 5 0 . STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION AND AN APPLICATION, by John T. Rose
and John D. Wolken. May 1986. 13 pp.
1 5 1 . RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING
FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice
P. White, Paul F. O'Brien, and Mary M. McLaughlin. January 1987. 30 pp.
1 5 2 . DETERMINANTS OF CORPORATE MERGER ACTIVITY:
A
REVIEW OF THE LITERATURE, by Mark J. Warshawsky.
April 1987. 18 pp.
1 5 3 . STOCK MARKET VOLATILITY, b y C a r o l y n D . D a v i s a n d
Alice P. White. September 1987. 14 pp.
154.
T H E EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES,
by Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
1 5 5 . THE FUNDING OF PRIVATE PENSION PLANS, b y M a r k J.
Warshawsky. November 1987. 25 pp.
1 5 6 . INTERNATIONAL TRENDS FOR U . S . BANKS AND BANKING
MARKETS, by James V. Houpt. May 1988. 47 pp.
1 5 7 . M 2 PER UNIT OF POTENTIAL G N P AS AN ANCHOR FOR
THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. Porter, and David H. Small. April 1989. 28 pp.
1 5 8 . THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE
PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
1 5 9 . NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, b y N e l l i e L i a n g a n d
Donald Savage. February 1990. 12 pp.
REPRINTS OF SELECTED Bulletin ARTICLES
Some Bulletin articles are reprinted. The articles listed below
are those for which reprints are available. Most of the articles
reprinted do not exceed twelve pages.
Limit of ten copies
Recent Developments in the Bankers Acceptance Market. 1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and U.S.
Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the
1983 and 1986 Surveys of Consumer Finances. 10/87.
Home Equity Lines of Credit. 6/88.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89.
The Activities of Japanese Banks in the United Kingdom and in
the United States, 1980-88. 2/90.
Industrial Production: 1989 Developments and Historical
Revision. 4/90.
Recent Developments in Industrial Capacity and Utilization.
6/90.
Developments Affecting the Profitability of Commercial Banks.
7/90.
Recent Developments in Corporate Finance. 8/90.
U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90.
The Transmission Channels of Monetary Policy: How Have
They Changed? 12/90.
U.S. International Transactions in 1990. 5/91.
Changes in Family Finances from 1983 to 1989: Evidence from
the Survey of Consumer Finances. 1/92.
A82
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Richard N. Cooper
Jerome H. Grossman
Richard F. Syron
Cathy E. Minehan
NEW YORK*
10045
Ellen V. Futter
Maurice R. Greenberg
Herbert L. Washington
E. Gerald Corrigan
James H. Oltman
Buffalo
14240
James O. Aston
PHILADELPHIA
19105
Peter A. Benoliel
Jane G. Pepper
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Vacancy
William H. Hendricks
Cincinnati
Pittsburgh
45201
15230
John R. Miller
A. William Reynolds
Marvin Rosenberg
Robert P. Bozzone
RICHMOND*
23219
Anne Marie Whittemore
Henty J. Faison
John R. Hardesty, Jr.
Anne M. Allen
Robert P. Black
Jimmie R. Monhollon
Edwin A. Huston
Leo Benatar
Nelda P. Stephenson
Lana Jane Lewis-Brent
Michael T. Wilson
Harold A. Black
Victor Bussie
Robert P. Forrestal
Jack Guynn
Richard G. Cline
Robert M. Healey
J. Michael Moore
Silas Keehn
Daniel M. Doyle
H. Edwin Trusheim
Robert H. Quenon
James R. Rodgers
Daniel L. Ash
Seymour B. Johnson
Thomas C. Melzer
James R. Bowen
Delbert W. Johnson
Gerald A. Rauenhorst
J. Frank Gardner
Gary H. Stern
Thomas E. Gainor
Burton A. Dole, Jr.
Herman Cain
Barbara B. Grogan
Ernest L. Holloway
Sheila Griffin
Thomas M. Hoenig
Henry R. Czerwinski
Leo E. Linbeck, Jr.
Henry G. Cisneros
Alvin T. Johnson
Judy Ley Allen
Roger R. Hemminghaus
Robert D. McTeer, Jr.
Tony J. Salvaggio
James A. Vohs
Robert F. Erburu
Walfred J. Fassler
William A. Hilliard
Gary G. Michael
George F. Russell, Jr.
Robert T. Parry
Patrick K. Barron
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino 1
Harold J. Swart1
Ronald B. Duncan 1
Albert D. Tinkelenberg1
John G. Stoides 1
Donald E. Nelson 1
Fred R. Herr1
James D. Hawkins 1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso
Roby L. Sloan 1
Karl W. Ashman
Howard Wells
Ray Laurence
John D. Johnson
Kent M. Scott
David J. France
Harold L. Shewmaker
Sammie C.Clay
Robert Smith, III1
Thomas H. Robertson
John F. Moore 1
Leslie R. Watters
Andrea P. Wolcott
Gerald R. Kelly 1
•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New
York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines,
Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
A83
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
>
/
I
/
i
ALASKA
/
i
1
riSWoBJliSiSfii^jil^Bili
/
©
- ^ r v
As?
.0
LEGEND
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
W
Publications of Interest
FEDERAL
RESERVE
REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are
published separately as handbooks pertaining to
monetary policy, securities credit, consumer affairs,
and the payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory
materials. They are updated at least monthly, and each
contains citation indexes and a subject index.
The Monetary Policy and Reserve Requirements
Handbook contains Regulations A, D, and Q, plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions
Deregulation Committee.
The Securities Credit Transactions Handbook
contains Regulations G, T, U, and X, dealing with
extensions of credit for the purchases of securities,
together with all related statutes, Board interpreta-
U.S.
MONETARY
POLICY
AND
FINANCIAL
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, and BB, and
associated materials.
The Payment System Handbook deals with expedited
funds availability, check collection, wire transfers,
and risk-reduction policy. It includes Regulation CC,
Regulation J, the Expedited Funds Availability Act
and related statutes, official Board commentary on
Regulation CC, and policy statements on risk reduction
in the payment systems.
For domestic subscribers, the annual rate is $200
for the Federal Reserve Regulatory Service and $75
for each Handbook. For subscribers outside the United
States, the price including additional air mail costs is
$250 for the Service and $90 for each Handbook. All
subscription requests must be accompanied by a
check or money order payable to the Board of
Governors of the Federal Reserve System. Orders
should be addressed to Publications Services, mail
stop 138, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
MARKETS
U.S. Monetary Policy and Financial Markets by
Ann-Marie Meulendyke offers an in-depth description
of the way monetary policy is developed by the
Federal Open Market Committee and the techniques
employed to implement policy at the Open Market
Trading Desk. Written from her perspective as a
senior economist in the Open Market Function at the
Federal Reserve Bank of New York, Ann-Marie
Meulendyke describes the tools and the setting of
policy, including many of the complexities that
differentiate the process from simpler textbook
models. Included is an account of a day at the Trading
Desk, from morning information-gathering through
daily decisionmaking and the execution of an open
market operation.
The book also places monetary policy in a broader
tions, rulings, and staff opinions. Also included is the
Board's list of OTC margin stocks.
context, examining first the evolution of Federal
Reserve monetary policy procedures from their
beginnings in 1914 to the end of the 1980s. It
indicates how policy operates most directly through
the banking system and the financial markets and
describes key features of both. Finally, the book turns
its attention to the transmittal of monetary policy
actions to the U.S. economy and throughout the
world.
The book is $5.00 a copy for U.S. purchases and
$10.00 for purchasers outside the United States.
Copies are available from the Public Information
Department, Federal Reserve Bank of New York, 33
Liberty Street, New York, N.Y. 10045. Checks must
accompany orders and should be payable to the
Federal Reserve Bank of New York in U.S. dollars.
Federal Reserve Statistical Releases
Available on the Commerce Department's
Electronic Bulletin Board
The Board of Governors of the Federal Reserve
System makes some of its statistical releases available to the public through the U.S. Department of
Commerce's electronic bulletin board. Computer
access to the releases can be obtained by sub-
scription. For further information regarding a
subscription to the electronic bulletin board,
please call 202-377-1986. The releases transmitted
to the electronic bulletin board, on a regular basis,
are the following:
Reference
Number
Statistical release
Frequency of release
H.3
Aggregate Reserves
Weekly/Thursday
H.4.1
Factors Affecting Reserve Balances
Weekly/Thursday
H.6
Money Stock
Weekly/Thursday
H.8
Assets and Liabilities of Insured Domestically Chartered
and Foreign Related Banking Institutions
Weekly/Monday
H.10
Foreign Exchange Rates
Weekly/Monday
H.15
Selected Interest Rates
Weekly/Monday
G.5
Foreign Exchange Rates
Monthly/end of month
G.17
Industrial Production and Capacity Utilization
Monthly/midmonth
G.19
Consumer Installment Credit
Monthly/fifth business day
Z.7
Flow of Funds
Quarterly
@FedFRASER