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Volume 87 □ Number 3 □ March 2001

Federal Reserve

BULLETIN

Board of Governors of the Federal Reserve System, Washington, D.C.



Table of Contents
103 M ONETARY PO LICY REPORT TO THE
CONGRESS

When the Federal Reserve submitted its previ­
ous Monetary Policy Report to the Congress, in
July 2000, tentative signs of a moderation in the
growth of economic activity were emerging after
several quarters of extraordinarily rapid expan­
sion. Indications that the expansion had moder­
ated from its earlier rapid pace gradually accu­
mulated during the summer and into the autumn.
For a time, this downshifting of growth seemed
to have left the economy expanding at a pace
roughly in line with that of its potential.
Over the last few months of the year, how­
ever, growth slowed even more, although the
dimensions of the slowdown were obscured for
a time by the usual lags in the receipt of eco­
nomic data. Spending on business capital, which
had been rising rapidly for several years, flat­
tened abruptly in the fourth quarter. Consumers
clamped down on their outlays for motor vehi­
cles and other durables, the stocks of which
also had climbed to high levels. Manufac­
turers adjusted production quickly to counter a
buildup in inventories. Rising concern about
slower growth and worker layoffs contributed
to a sharp deterioration of consumer confidence.
In response to the accumulating weakness, the
Federal Open Market Committee (FOMC) low­
ered the intended interest rate on federal funds
Vi percentage point on January 3 of this year.
The FOMC lowered the rate again, by the same
amount, at its meeting on January 31.
The less restrictive conditions in financial
markets, and the underlying strengths of the
economy, should lead to a rebound in economic
growth. The most notable of the underlying
strengths is the remarkable step-up in the growth
of structural productivity since the mid-1990s,
which seems to be closely related to the spread
of new technologies. The impressive perfor­
mance of productivity and the accompanying
environment of low and stable underlying infla­
tion suggest that the longer-run outlook for the
economy is still quite favorable, even though




downside risks may remain prominent in the
period immediately ahead.
132 INDUSTRIAL PRODUCTION AND CAPACITY
UTILIZATION: THE 2000 ANNUAL REVISION
In late 2000, the Federal Reserve Board pub­
lished the annual revision of its index of indus­
trial production and related measures of capacity
and utilization for the period January 1992
through October 2000. The updated measures
reflect the incorporation of newly available,
more comprehensive source data, the introduc­
tion of new production series, and changes in
methods. For this revision, two new years of
comprehensive data on manufacturing output
became available; otherwise, the updating of the
data was typical of annual revisions.
Total industrial output has increased, on aver­
age, 5.1 percent per year since 1995, and indus­
trial capacity has expanded 5.4 percent per year;
these revised rates of increase are more rapid
than those previously reported. The rate of
industrial capacity utilization was little changed
by the revision for the third quarter of 2000 but
was revised up 0.6 percentage point, to 81.6 per­
cent, for the fourth quarter of 1999.
149 TREASURY AND FEDERAL RESERVE
FOREIGN EXCHANGE OPERATIONS

During the fourth quarter of 2000, the dollar
appreciated 5.7 percent against the yen and
depreciated 6.4 percent against the euro. On a
trade-weighted basis, the dollar ended the quar­
ter 1.0 percent weaker against an index of major
currencies. U.S. monetary authorities did not
intervene in the foreign exchange markets dur­
ing the quarter.
154 INDUSTRIAL PRODUCTION AND CAPACITY
UTILIZATION FOR JANUARY 2001
Industrial production fell 0.3 percent in January,
to 147.0 percent of its 1992 average; industrial

production was 2.4 percent higher than in Janu­
ary 2000. The rate of capacity utilization for
total industry fell to 80.2 percent in January,
a level almost 2 percentage points below its
1967-2000 average.
157 Te s t im o n y
O f f ic ia l s

of federal

Report on the feasibility of mandatory subordi­
nated debt.
Recommendations of the Working Group on
Public Disclosure.
Request for comments on the Basel Committee
proposal to amend the capital adequacy frame­
work and publication of an interagency sum­
mary of the proposal.

Re se r v e

Alan Greenspan presents his views on some of
the important issues surrounding the outlook for
the federal budget and the attendant implications
for the formulation of fiscal policy and testifies
that the most recent projections, granted their
tentativeness, nonetheless make clear that the
highly desirable goal of paying off the federal
debt is in reach before the end of the decade. He
states further that the emerging key fiscal policy
need is to address the implications of maintain­
ing surpluses beyond the point at which publicly
held debt is effectively eliminated (Testimony
before the Senate Committee on the Budget,
January 25, 2001).

Revised capital proposal for nonfinancial equity
investments.
Enforcement actions.
169 L e g a l

d evelopm ents

Various bank holding company, bank service
corporation, and bank merger orders; and pend­
ing cases.
A1 FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as o f
January 29, 2001.

161 A n n o u n c e m e n t s
Federal Open Market Committee actions and
changes in the discount rate.
Appointments of new members to the Consumer
Advisory Council and designation of a new chair
and vice chair.
Interim rule defining three categories of finan­
cial activities.
Guidance on anti-money-laundering programs
of financial institutions.
Preliminary figures on net income of the Federal
Reserve Banks for 2000.

A3 G u id e

to

Ta b u l a r P r e s e n t a t io n

A4 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A50 International Statistics
A63 G u id e to S t a t is t ic a l
S p e c ia l Ta b l e s

releases and

A64 In d e x

tables

S t a t is t ic a l

to

A66 B o ar d

of

Go verno rs

and

Staff

A68 FEDERAL OPEN M ARKET COMMITTEE AND

Final rule on merchant banking activities.

STAFF; AD VISORY COUNCILS

Final rule on an alternative to the rated debt
requirement for financial subsidiaries.

A70 FEDERAL RESERVE BOARD PUBLICATIONS

Issuance of guidance on supervision of subprime
lending.

A72 M a p s

Adoption of guidelines for customer informa­
tion security.

A74




o f the

federal
and

Fed eral

Reserve

O f f ic e s

reserve

S ystem

b an k s, bran c h es,

P u b l ic a tio n s C o m m it t e e
Lynn S. Fox, Chair □ Jennifer J. Johnson □ Karen H. Johnson □ Donald L. Kohn □ Stephen R. Malphrus
□ J. Virgil Mattingly, Jr. □ Dolores S. Smith □ Richard Spillenkothen □ Richard C. Stevens □ David J. Stockton

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 Christine S. Griffith, and Publications Services supervised by Linda C. Kyles.




Monetary Policy Report to the Congress
Report submitted to the Congress on February 13,
2001, pursuant to section 2B o f the Federal Reserve
Act

M ONETARY PO LICY AND THE
E c o n o m ic O u t l o o k

When the Federal Reserve submitted its previous
Monetary Policy Report to the Congress, in July of
2000, tentative signs of a moderation in the growth of
economic activity were emerging following several
quarters of extraordinarily rapid expansion. After
having increased the interest rate on federal funds
through the spring to bring the growth of aggregate
demand and potential supply into better alignment
and thus contain inflationary pressures, the Federal
Reserve had stopped tightening as evidence of an
easing of economic growth began to appear.
Indications that the expansion had moderated from
its earlier rapid pace gradually accumulated during
the summer and into the autumn. For a time, this
downshifting of growth seemed likely to leave the
economy expanding at a pace roughly in line with
that of its potential. Over the last few months of
the year, however, elements of economic restraint
emerged from several directions to slow growth even
more. Energy prices, rather than turning down as had
been anticipated, kept climbing, raising costs
throughout the economy, squeezing business profits,
and eroding the income available for discretionary
expenditures. Equity prices, after coming off their
highs earlier in the year, slumped sharply starting in
September, slicing away a portion of household net
worth and discouraging the initial offering of new
shares by firms. Many businesses encountered tight­
ening credit conditions, including a widening of risk
spreads on corporate debt issuance and bank loans.
Foreign economic activity decelerated noticeably in
the latter part of the year, contributing to a weakening
of the demand for U.S. exports, which also was being
restrained by an earlier appreciation in the exchange
value of the U.S. dollar.
The dimensions of the economic slowdown were
obscured for a time by the usual lags in the receipt of
economic data, but the situation began to come into
sharper focus late in the year as the deceleration



steepened. Spending on business capital, which had
been rising rapidly for several years, elevating stocks
of these assets, flattened abruptly in the fourth quar­
ter. Consumers clamped down on their outlays for
motor vehicles and other durables, the stocks of
which also had climbed to high levels. As the demand
for goods softened, manufacturers adjusted produc­
tion quickly to counter a buildup in inventories. Ris­
ing concern about slower growth and worker layoffs
contributed to a sharp deterioration of consumer con­
fidence. In response to the accumulating weakness,
the Federal Open Market Committee (FOMC) low­
ered the intended interest rate on federal funds Vi per­
centage point on January 3 of this year. Another rate
reduction of that same size was implemented at the
close of the most recent meeting of the FOMC at the
end of last month.
As weak economic data induced investors to revise
down their expectations of future short-term interest
rates in recent months and as the Federal Reserve
eased policy, financial market conditions became
more accommodative. Since the November FOMC
meeting, yields on many long-term corporate bonds
have dropped on the order of a full percentage point,
with the largest declines taking place on riskier bonds
as the yield spreads on those securities narrowed
considerably from their elevated levels. In response,
borrowing in long-term credit markets has strength­
ened appreciably so far in 2001. The less restrictive
conditions in financial markets should help lay the
groundwork for a rebound in economic growth.
That rebound should also be encouraged by under­
lying strengths of the economy that still appear to be
present despite the sluggishness encountered of late.
The most notable of these strengths is the remarkable
step-up in structural productivity growth since the
mid-1990s, which seems to be closely related to the
spread of new technologies. Even as the economy
slowed in 2000, evidence of ongoing efficiency gains
were apparent in the form of another year of rapid
advance in output per worker hour in the nonfarm
business sector. With households and businesses still
in the process of putting recent innovations in
place and with technological breakthroughs still
occurring, an end to profitable investment opportuni­
ties in the technology area does not yet seem to be in
sight. Should investors continue to seek out emerging

104

Federal Reserve Bulletin □ March 2001

opportunities, the ongoing transformation and expan­
sion of the capital stock will be maintained, thereby
laying the groundwork for further gains in productiv­
ity and ongoing advances in real income and spend­
ing. The impressive performance of productivity and
the accompanying environment of low and stable
underlying inflation suggest that the longer-run out­
look for the economy is still quite favorable, even
though downside risks may remain prominent in the
period immediately ahead.
M onetary Policy, Financial Markets,
and the Economy over the
Second H a lf o f 2000 and Early 2001
As described in the preceding Monetary Policy
Report to the Congress, the very rapid pace of eco­
nomic growth over the first half of 2000 was threat­
ening to place additional strains on the economy’s
resources, which already appeared to be stretched
thin. Private long-term interest rates had risen con­
siderably in response to the strong economy, and, in
an effort to slow the growth of aggregate demand and
thereby prevent a buildup of inflationary pressures,
the Federal Reserve had tightened its policy settings
substantially through its meeting in May 2000. Over
subsequent weeks, preliminary signs began to emerge
suggesting that growth in aggregate demand might be
slowing, and at its June meeting the FOMC left the
federal funds rate unchanged.
Further evidence accumulated over the summer to
indicate that demand growth was moderating. The
rise in mortgage interest rates over the previous year
seemed to be damping activity in the housing sector.
Moreover, the growth of consumer spending had
slowed from the exceptional pace of earlier in the
year; the impetus to spending from outsized equity
price gains in 1999 and early 2000 appeared to be
partly wearing off, and rising energy prices were
continuing to erode the purchasing power of house­
holds. By contrast, business fixed investment still
was increasing very rapidly, and strong growth of
foreign economies was fostering greater demand for
U.S. exports. Weighing this evidence and recognizing
that the effects of previous tightenings had not yet
been fully felt, the FOMC decided at its meeting in
August to hold the federal funds rate unchanged. The
Committee remained concerned that demand could
continue to grow faster than potential supply at a time
when the labor market was already taut, and it saw
the balance of risks still tilted toward heightened
inflation pressures.
The FOMC faced fairly similar circumstances at its
October meeting. By then, it had become more appar­



ent that the growth in demand had fallen to a pace
around that of potential supply. Although consumer
spending had picked up again for a time, it did not
regain the vigor it had displayed earlier in the year,
and capital spending, while still growing briskly, had
decelerated from its first-half pace. With increases
in demand moderating, private employment gains
slowed from the rates seen earlier in the year. How­
ever, labor markets remained exceptionally tight, and
the hourly compensation of workers had accelerated
to a point at which unit labor costs were edging up
despite strong gains in productivity. In addition, siz­
able increases in energy prices were pushing broad
inflation measures above the levels of recent years.
Although core inflation measures were at most only
creeping up, the Committee felt that there was some
risk that the increase in energy prices, which was
lasting longer than had seemed likely earlier in the
year, would start to leave an imprint on business costs
and longer-run inflation expectations, posing the risk
that core inflation rates could rise more substantially.
Weighing these considerations, the FOMC decided to
hold the federal funds rate unchanged at its October
meeting. While recognizing that the risks in the out­
look were shifting, the FOMC believed that the taut­
ness of labor markets and the rise in energy prices
meant that the balance of those risks still was
weighted towards heightened inflation pressures, and
this assessment was noted in the balance-of-risks
statement.
By the time of the November FOMC meeting,
conditions in the financial markets were becoming
less accommodative in some ways, even as the
Federal Reserve held the federal funds rate steady.
Equity prices had declined considerably over the
previous several months, resulting in an erosion of
household wealth that seemed likely to restrain con­
sumer spending going forward. Those price declines,
along with the elevated volatility of equity prices,
also hampered the ability of firms to raise funds in
equity markets and were likely discouraging business
investment. Some firms faced more restrictive condi­
tions in credit markets as well, as risk spreads in the
corporate bond market widened significantly for firms
with lower credit ratings and as banks tightened the
standards and terms on their business loans. Mean­
while, incoming data indicated that the pace of eco­
nomic activity had softened a bit further. Still, the
growth of aggregate demand apparently had moved
only modestly below that of potential supply. More­
over, while crude oil prices appeared to be topping
out, additional inflationary pressures were arising in
the energy sector in the form of surging prices for
natural gas, and there had been no easing of the

Monetary Policy Report to the Congress

105

Selected interest rates
Percent

—

7.0

—

6.5

—

6.0

—

5.0

Intended federal funds rate
Thirty-year Treasury
Two-year Treasury

Discount rate

Three-month Treasury
8/24

10/5

11/16

11/15 12/ 191/3

12/21

1/31

2001
N o t e . The data are daily and extend through February 8, 2001. The dates on the horizontal axis

are those of scheduled FOMC meetings and of any intermeeting policy actions.

tightness in the labor market. In assessing the evi­
dence, the members of the Committee felt that the
risks to the outlook were coming into closer balance
but had not yet shifted decisively. At the close of the
meeting, the FOMC left the funds rate unchanged
once again, and it stated that the balance of risks
continued to point toward increased inflation. How­
ever, in the statement released after the meeting, the
FOMC noted the possibility of subpar growth in the
economy in the period ahead.
Toward the end of the year, the moderation of
economic growth gave way, fairly abruptly, to more
sluggish conditions. By the time of the December
FOMC meeting, manufacturing activity had softened
considerably, especially in motor vehicles and related
industries, and a number of industries had accu­
mulated excessive stocks of inventories. Across a
broader set of firms, forecasts for corporate sales and
profits in the fourth quarter and in 2001 were being
slashed, contributing to a continued decline in equity
prices and a further widening of risk spreads on
lower-rated corporate bonds. In this environment,
growth in business fixed investment appeared to be
slowing appreciably. Consumer spending showed
signs of decelerating further, as falling stock prices
eroded household wealth and consumer confidence
weakened. Moreover, growth in foreign economies
seemed to be slowing, on balance, and U.S. export
performance began to deteriorate. Market interest
rates had declined sharply in response to these devel­
opments. Against this backdrop, the FOMC at its
December meeting decided that the risks to the out­
look had swung considerably and now were weighted
toward economic weakness, although it decided to
wait for additional evidence on the extent and persis­
tence of the slowdown before moving to an easier



policy stance. Recognizing that the current position
of the economy was difficult to discern because of
lags in the data and that prospects for the near term
were particularly uncertain, the Committee agreed at
the meeting that it would be especially attentive over
coming weeks to signs that an intermeeting policy
action was called for.
Additional evidence that economic activity was
slowing significantly emerged not long after the
December meeting. New data indicated a marked
weakening in business investment, and retail sales
over the holiday season were appreciably lower than
businesses had expected. To contain the resulting
buildup in inventories, activity in the manufacturing
sector continued to drop. In addition, forecasts of
near-term corporate profits were being marked down
further, resulting in additional declines in equity
prices and in business confidence. Market interest
rates continued to fall, as investors became more
pessimistic about the economic outlook. Based on
these developments, the Committee held a telephone
conference call on January 3, 2001, and decided to
cut the intended federal funds rate V2 percentage
point. Equity prices surged on the announcement, and
the Treasury yield curve steepened considerably, ap­
parently because market participants became more
confident that a prolonged downturn in economic
growth would likely be forestalled. Following the
policy easing, the Board of Governors approved a
decrease in the discount rate of a total of Vi percent­
age point.
The Committee’s action improved financial con­
ditions to a degree. Over the next few weeks, equity
prices rose, on net. Investors seemed to become less
wary of credit risk, and yield spreads narrowed across
most corporate bonds even as the issuance of these

106

Federal Reserve Bulletin □ March 2001

securities picked up sharply. But in some other
respects, investors remained cautious, as evidenced
by widening spreads in commercial paper markets.
Incoming data pointed to further weakness in the
manufacturing sector and a sharp decline in con­
sumer confidence. Moreover, slower U.S. growth
appeared to be spilling over to several important
trading partners. In late January, the FOMC cut the
intended federal funds rate Vi percentage point while
the Board of Governors approved a decrease in the
discount rate of an equal amount. Because of the
significant erosion of consumer and business con­
fidence and the need for additional adjustments to
production to work off elevated inventory levels, the
FOMC indicated that the risks to the outlook contin­
ued to be weighted toward economic weakness.

Economic Projections fo r 2001
Although the economy appears likely to be sluggish
over the near term, the members of the Board of
Governors and the Reserve Bank presidents expect
stronger conditions to emerge as the year progresses.
For 2001 overall, the central tendency of their fore­
casts of real GDP growth is 2 percent to 2l i percent,
/
measured as the change from the fourth quarter of
2000 to the fourth quarter of 2001. With growth
falling short of its potential rate, especially in the first
half of this year, unemployment is expected to move
up a little further. Most of the governors and Reserve
Bank presidents are forecasting that the average
unemployment rate in the fourth quarter of this year
will be about 4Vi percent, still quite low by historical
standards.
The rate of economic expansion over the near term
will depend importantly on the speed at which inven­
tory overhangs that developed over the latter part

Economic projections for 2001
Percent

ffXii jp
,,
Change, fourth quarter
to fourth quarter1 jijjjj
I Nominal GDP
! Real GDP2 .......... j
PCE chain-type price index __
1

Average level, fourth quarter
Civilian unemployment rate_
_

___________________

.....
A

1. Change from average for fourth quarter of 2000 to average for fourth
quarter of 2001.
2. Chain-weighted.




of 2000 are worked off. Gains in information tech­
nology have no doubt enabled businesses to respond
more quickly to a softening of sales, which has
steepened the recent production cuts but should also
damp the buildup in inventories and facilitate a
turnaround. The motor vehicle industry made some
progress toward reducing excess stocks in January
owing to a combination of stronger sales and a fur­
ther sharp cutback in assemblies. In other parts of
manufacturing, the sizable reductions in production
late last year suggest that producers in general were
moving quickly to get output into better alignment
with sales. Nevertheless, stocks at year-end were
above desired levels in a number of industries.
Once inventory imbalances are worked off, produc­
tion should become more closely linked to the pros­
pects for sales. Household and business expenditures
have decelerated markedly in recent months, and
uncertainties about how events might unfold are con­
siderable. But, responding in part to the easing of
monetary policy, financial markets are shifting away
from restraint, and this shift should create a more
favorable underpinning to the expected pickup in the
economy as the year progresses. The sharp drop in
mortgage interest rates since May of last year appears
to have stemmed the decline in housing activity;
it also has enabled many households to refinance
existing mortgages at lower rates, an action that
should free up cash for added spending. Conditions
of business finance also have eased to some degree.
Interest rates on investment-grade corporate bonds
have recently fallen to their lowest levels in about
1 V years. Moreover, the premiums required of bond
2
issuers that are perceived to be at greater risk have
dropped back in recent weeks from the elevated
levels of late 2000. As credit conditions have eased,
firms have issued large amounts of corporate bonds
so far in 2001. However, considerable caution is
evident in the commercial paper market and among
banks, whose loan officers have reported a further
tightening of lending conditions since last fall. In
equity markets, prices have recently dropped in
response to negative reports on corporate earnings,
reversing the gains that took place in January.
The restraint on domestic demand from high
energy prices is expected to ease in coming quarters.
Natural gas prices have dropped back somewhat in
recent weeks as the weather has turned milder, and
crude oil prices also are down from their peaks.
Although these prices could run up again in conjunc­
tion with either a renewed surge in demand or disrup­
tions in supply, participants in futures markets are
anticipating that prices will be trending gradually
lower over time. A fall in energy prices would relieve

Monetary Policy Report to the Congress

cost pressures on businesses to some degree and
would leave more discretionary income in the hands
of households.
How quickly investment spending starts to pick up
again will depend not only on the cost of finance but
also on the prospective rates of return to capital. This
past year, expectations regarding the prospects of
some high-tech companies clearly declined, and capi­
tal spending seems unlikely to soon regain the excep­
tional strength that was evident in the latter part of
the 1990s and for a portion of last year. From all
indications, however, technological advance still is
going forward at a rapid pace, and investment will
likely pick up again if, as expected, the expansion of
the economy gets back on more solid footing. Private
analysts are still anticipating high rates of growth
in corporate earnings over the long-run, suggesting
that the current sluggishness of the economy has
not undermined perceptions of favorable long-run
fundamentals.
The degree to which increases in exports might
help to support the U.S. economy through a stretch of
sluggishness has become subject to greater uncer­
tainty recently because foreign economies also seem
to have decelerated toward the end of last year.
However, the expansion of imports has slowed
sharply, responding in part to the softening of domes­
tic demand growth. In effect, some of the slowdown
in demand in this country is being shifted to foreign
suppliers, implying that the adjustments required of
domestic producers are not as great as they otherwise
would have been.
In adjusting labor input to the slowing of the
economy, businesses are facing conflicting pressures.
Speedy adjustment of production and ongoing gains
in efficiency argue for cutbacks in labor input, but
companies are also reluctant to lay off workers that
have been difficult to attract and retain in the tight
labor market conditions of the past few years. In the
aggregate, the balance that has been struck in recent
months has led, on net, to slower growth of employ­
ment, cutbacks in the length of the average work­
week, and, in January of this year, a small increase in
the unemployment rate.
Inflation is not expected to be a pressing concern
over the coming year. Most of the governors and
Reserve Bank presidents are forecasting that the rise
in the chain-type price index for personal consump­
tion expenditures will be smaller than the price rise in
2000. The central tendency of the range of forecasts
is l 3 percent to 2Va percent. Inflation should be
/4
restrained this coming year by an expected downturn
in energy prices. In addition, the reduced pressure on
resources that is associated with the slowing of the



107

economy should help damp increases in labor costs
and prices.

ECONOMIC AND FINANCIAL DEVELOPMENTS
IN 2000 AND EARLY 2001
The combination of exceptionally strong growth in
the first half of 2000 and subdued growth in the
second half resulted in a rise in real GDP of about
3V2 percent for the year overall. Domestic demand
started out the year with incredible vigor but deceler­
ated thereafter and was sluggish by year-end. Exports
surged for three quarters and then faltered. In the
labor market, growth of employment slowed over the
year but was sufficient to keep the unemployment
rate around the lowest sustained level in more than
thirty years.
Core inflation remained low in 2000 in the face of
sharp increases in energy prices. Although the chaintype price index for personal consumption expendi­
tures (PCE) moved up faster than in 1999, it showed
only a slight step-up in the rate of increase after
excluding the prices of food and energy. Unit labor
costs picked up moderately, adding to the cost pres­
sures from energy, but the ability of businesses to
raise prices was restrained by the slowing of the
economy and the persistence of competitive pricing
conditions.

The H ousehold Sector
Personal consumption expenditures increased 4x per­
h
cent in real terms in 2000 after having advanced
Change in real GDP

N o t e . Here and in subsequent charts, except as noted, annual changes are
measured from Q4 to Q4, and change for a half-year is measured between its
final quarter and the final quarter of the preceding period.

108

Federal Reserve Bulletin □ March 2001

Change in PCE chain-type price index

1994

1996

1998

2000

Note . Data are for personal consumption expenditures (PCE).

5 percent in 1998 and 5 V2 percent in 1999. A large
portion of last year’s gain came in the first quarter,
when consumption moved ahead at an unusually
rapid pace. The increase in consumer spending over
the remainder of the year was moderate, averaging
about 3Vi percent at an annual rate. Consumer out­
lays for motor vehicles and parts surged to a record
high early in 2000 but reversed that gain over the
remainder of the year; sales of vehicles tailed off
especially sharply as the year drew to a close. Real
consumer purchases of gasoline fell during the year
in response to the steep run-up in gasoline prices.
Most other broad categories of goods and services
posted sizable gains over the year as a whole, but
results late in the year were mixed: Real outlays for
goods other than motor vehicles eked out only a
small gain in the fourth quarter, while real outlays
for consumer services rose very rapidly, not only
because of higher outlays for home heating fuels
during a spell of colder-than-usual weather but also

because of continued strength in real outlays for other
types of services.
Changes in income and wealth provided less sup­
port to consumption in 2000 than in other recent
years. Real disposable personal income rose about
2 i/4 percent last year after a gain of slightly more than
3 percent in 1999. Disposable income did not rise
quite as much in nominal terms as it had in 1999, and
rising prices eroded a larger portion of the nominal
gain. Meanwhile, the net worth of households turned
down in 2000 after having climbed rapidly for sev­
eral years, as the effect of a decline in the stock
market was only partially offset by a sizable increase
in the value of residential real estate. With the peak in
stock prices not coming until the year was well under
way, and with valuations having previously been on a
sharp upward course for an extended period, stock
market wealth may well have continued to exert a
strong positive effect on consumer spending for sev­
eral months after share values had topped out. As
time passed, however, the impetus to consumption
from this source most likely diminished. The per­
sonal saving rate, which had dropped sharply during
Wealth and saving
Ratio

Wealth-to-income ratio

Percent

Change in real income and consumption
Personal saving rate
Percent, annual rate

I | Disposable personal income
■ Personal consumption expenditures




14
12

_
_

„

— 6

10

8

6
4
2

+
0

N ote . The wealth-to-income ratio is the ratio of household net worth to
disposable personal income and extends through 2000:Q3; the personal saving
rate extends through 2000:Q4.

Monetary Policy Report to the Congress

the stock market surge of previous years, fell further
in 2000, but the rate of decline slowed, on average,
after the first quarter.
Even with real income growth slowing and the
stock market turning down, consumers maintained
a high degree of optimism through most of 2000
regarding the state of the economy and the economic
outlook. Indexes of sentiment from both the Univer­
sity of Michigan Survey Research Center and the
Conference Board rose to new peaks in the first
quarter of the year, and the indexes remained close to
those levels for several more months. Survey read­
ings on personal finances, general business condi­
tions, and the state of the labor market remained
generally favorable through most of the year. As of
late autumn, only mild softness could be detected.
Toward year-end, however, confidence in the econ­
omy dropped sharply. Both of the indexes of confi­
dence showed huge declines over the two months
ended in January. The marked shift in attitudes
toward year-end probably was brought on by a com­
bination of developments, including the weakness in
the stock market over the latter part of the year and
more frequent reports of layoffs.
Real outlays for residential investment declined
about 2lA percent, on net, over the course of 2000,
as construction of new housing dropped back from
the elevated level of the previous year. Investment
in housing was influenced by a sizable swing in
mortgage interest rates as well as by slower growth
of employment and income and the downturn in
the stock market. After having moved up appre­
ciably in 1999, mortgage rates continued to advance
through the first few months of 2000. By mid-May,
the average commitment rate on conventional fixedrate mortgages was above
percent, up roughly
1Vi percentage points from the level of a year earlier.

109

New construction held up even as rates were rising in
1999 and early 2000, but it softened in the spring of
last year. Starts and permits for single-family houses
declined from the first quarter to the third quarter.
But even as homebuilding activity was turning
down, conditions in mortgage markets were moving
back in a direction more favorable to housing. From
the peak in May, mortgage interest rates fell substan­
tially over the remainder of the year and into the
early part of 2001, reversing the earlier increases.
Sales of new homes firmed as rates turned down, and
prices of new houses continued to trend up faster than
the general rate of inflation. Inventories of unsold
new homes held fairly steady over the year and were
up only moderately from the lows of 1997 and 1998.
With demand well-maintained and inventories under
control, activity stabilized. Starts and permits for
single-family houses in the fourth quarter of 2000
were up from the average for the third quarter.
Households continued to borrow at a brisk pace
last year, with household debt expanding an esti­
mated 83 percent, well above the growth rate of
/4
disposable personal income. Consumer credit
increased rapidly early in the year, boosted by strong
outlays on durable goods; but as consumer spending
cooled later in the year, the expansion of consumer
credit slowed. For the year as a whole, consumer
credit is estimated to have advanced more than
8 V2 percent, up from the 7 percent pace of 1999.
Households also took on large amounts of mortgage
debt, which grew an estimated 9 percent last year,
reflecting the solid pace of home sales.
With the rapid expansion of household debt in
recent years, the household debt service burden has

Delinquency rates on household loans

Change in real residential investment




Credit card accounts
at banks
’

Auto loans at domestic
auto finance companies

Mortgages

N ote . The data are quarterly and extend through 2000:Q3. Data on creditcard delinquencies are from bank Call Reports; data on auto loan delinquencies
are from the Big Three automakers; data on mortgage delinquencies are from
the Mortgage Bankers Association.

110

Federal Reserve Bulletin □ March 2001

increased to levels not seen since the late 1980s.
Even so, with unemployment low and household net
worth high, the credit quality of the household sector
appears to have deteriorated little last year. Personal
bankruptcy filings held relatively steady and remain
well below their peak from several years ago. Delin­
quency rates on home mortgages, credit cards, and
auto loans have edged up in recent quarters but are at
most only slightly above their levels of the fourth
quarter of 1999. Lenders did not appear to be signifi­
cantly concerned about the credit quality of the
household sector for most of last year, although some
lenders have become more cautious of late. Accord­
ing to surveys of banks conducted by the Federal
Reserve, few commercial banks tightened lending
conditions on consumer installment loans and mort­
gage loans to households over the first three quarters
of 2000. However, the most recent survey indicates
that a number of banks tightened standards and terms
on consumer loans, particularly non-credit-card loans,
over the past several months, perhaps because of
some uneasiness about how the financial position of
households will hold up as the pace of economic
activity slows.
The Business Sector
Real business fixed investment rose 10 percent in
2000 according to the advance estimate from the
Commerce Department. Investment spending shot
ahead at an annual rate of 21 percent in the first
quarter of the year; its strength in that period came, in
part, from high-tech purchases that had been delayed
from 1999 by companies that did not want their
operating systems to be in a state of change at the
onset of the new millennium. Expansion of invest­
ment was slower but still relatively brisk in the
Change in real business fixed investment




second and third quarters, at annual rates of about
15 percent and 8 percent respectively. In the fourth
quarter, however, capital spending downshifted
abruptly in response to the slowing economy, tighten­
ing financial conditions, and rising concern about the
prospects for profits; the current estimate shows real
investment outlays having fallen at an annual rate of
1J/2 percent in that period.
Fixed investment in equipment and software was
up 9 V2 percent in 2000, with the bulk of the gain
coming in the first half of the year. Spending slowed
to a rate of growth of about 5lA percent in the third
quarter and then declined in the fourth quarter. Busi­
ness investment in motor vehicles fell roughly 15 per­
cent, on net, during 2000, with the largest portion of
the drop coming in the fourth quarter; the declines
in real outlays on larger types of trucks were particu­
larly sizable. Investment in industrial equipment,
tracking the changing conditions in manufacturing,
also fell in the fourth quarter but was up appreciably
for the year overall. Investment in high-tech equip­
ment decelerated over the year but was still expand­
ing in the fourth quarter: Real outlays for telecommu­
nications equipment posted exceptionally large gains
in the first half of the year, flattened out temporarily
in the third quarter, and expanded again in the fourth.
Spending on computers and peripherals increased, in
real terms, at an average rate of about 45 percent over
the first three quarters of the year but slowed abruptly
to a 6 percent rate of expansion in the year’s final
quarter, the smallest quarterly advance in several
years.
Investment in nonresidential structures rose sub­
stantially in 2000, about 1 2 V percent in all, after
2
having declined P /4 percent in 1999. Investment in
factory buildings, which had fallen more than 20 per­
cent in 1999 in an apparent reaction to the economic
disruptions abroad and the associated softness in
demand for U.S. exports, more than recouped that
decline over the course of 2000. Real outlays for
office construction, which had edged down in 1999
after several years of strong advance, got back on
track in 2000, posting a gain of about 13 V2 percent.
Real investment in commercial buildings other than
offices was little changed after moderate gains in the
two previous years. Spending on structures used in
drilling for energy strengthened in response to the
surge in energy prices.
Business inventory investment was subdued early
in the year when final sales were surging; aggregate
inventory-sales ratios, which have trended lower in
recent years as companies became more efficient at
managing stocks, edged down further. As sales mod­
erated in subsequent months, production growth did

Monetary Policy Report to the Congress

Change in real nonfarm business inventories

Before-tax profits
Percent, annual rate

1994

1996

1998

111

Percent o f nominal GDP

2000
N ote . Profits from domestic operations of nonfinancial corporations, with
inventory valuation and capital consumption adjustments, divided by gross
domestic product of nonfinancial corporate sector. The data extend through
2000:Q3.

not decelerate quite as quickly, and inventories began
to rise more rapidly. Incoming information through
the summer suggested that some firms might be
encountering a bit of backup in stocks but that the
problems were not severe overall. In the latter part of
the year, however, inventory-sales ratios turned up,
indicating that more serious overhangs were develop­
ing. Responding to the slowing of demand and the
increases in stocks, manufacturers reduced output
in each of the last three months of the year by suc­
cessively larger amounts. Businesses also began to
clamp down on the flow of imports. Despite those
adjustments, stocks in a number of domestic indus­
tries were likely well above desired levels as the year
drew to a close.
The Commerce Department’s compilation of busi­
ness profits currently extends only through the third
quarter of 2000, but these data show an evolving
pattern much like that of other economic data. After
having risen at an annual rate of more than 16 percent
in the first half of the year, U.S. corporations’ eco­
nomic profits—that is, book profits with inventory
and capital consumption adjustments—slowed to less
than a 3 percent rate of growth in the third quarter.
Profits from operations outside the United States
continued to increase rapidly in the third quarter.
However, economic profits from domestic operations
edged down in that period, as solid gains for financial
corporations were more than offset by a 4 percent rate
of decline in the profits of nonfinancial corporations.
Profits of nonfinancial corporations as a share of their
gross nominal output rose about Vi percentage point
in the first half of 2000 but reversed part of that gain
in the third quarter. Earnings reports for the fourth
quarter indicate that corporate profits fell sharply in
that period.



Business debt expanded strongly over the first half
of 2000, propelled by robust capital spending as well
as by share repurchases and cash-financed merger
activity. The high level of capital expenditures out­
stripped internally generated funds by a considerable
margin despite continued impressive profits. To meet
their borrowing needs, firms tapped commercial
paper, bank loans, and corporate bonds in volume in
the first quarter. The rapid pace of borrowing contin­
ued in the second quarter, although borrowers relied
more heavily on bank loans and commercial paper to
meet their financing needs in response to a rise in
longer-term interest rates.
Business borrowing slowed appreciably in the sec­
ond half of the year. As economic growth moderated
and profits weakened, capital spending decelerated
Default rate on outstanding junk bonds

average.

112

Federal Reserve Bulletin □ March 2001

Net interest payments of nonfinancial corporations
relative to cash flow

Spreads of corporate bond yields
over the ten-year swap rate

----------1
1980

1984

1988

1992

1996

2000

N ote . The data are quarterly and extend through 2000:Q3.

sharply. In addition, firms held down their borrowing
needs by curbing their buildup of liquid assets, which
had been accumulating quite rapidly in previous quar­
ters. Borrowing may have been deterred by a tighten­
ing of financial conditions for firms with lower credit
ratings, as investors and lenders apparently became
more concerned about credit risk. Those concerns
likely were exacerbated by indications that credit
quality had deteriorated at some businesses. The
default rate on high-yield bonds continued to climb
last year, reaching its highest level since 1991. Some
broader measures of credit quality also slipped. The
amount of nonfinancial debt downgraded by Moody’s
Investor Services in 2000 was more than twice as
large as the amount upgraded, and the delinquency
rate on business loans at commercial banks continued
to rise over the year. But while some firms were
clearly having financial difficulties, many other firms
remained soundly positioned to service their debt.
Indeed, the ratio of net interest payments to cash flow
for all nonfinancial firms moved only modestly above
the relatively low levels of recent years.
As concerns about risk mounted, lenders became
more cautious about extending credit to some bor­
rowers. An increasingly large proportion of banks
reported firming terms and standards on business
loans over the course of the year. In the corporate
bond market, yield spreads on high-yield and lower­
rated investment-grade bonds, measured relative to
the ten-year swap rate, began climbing sharply in
September and by year-end were at levels well above
those seen in the fall of 1998. Lower-rated com­
mercial paper issuers also had to pay unusually
large premiums late in the year, particularly on paper
spanning the year-end. As financial conditions



1

t
1998

1

1

t

AA
i
l
l
1999

i

i
2000

i

U

1 1
2001

Note . The data are daily and extend through February 8, 2001. The spreads
compare the yields on the Merrill Lynch AA, BBB, and 175 indexes with the
ten-year swap rate.

became more stingent, issuance of high-yield debt
was cut back sharply in the fourth quarter, although
investment-grade bond issuance remained strong.
Bank lending to businesses was also light at that
time, and net issuance of commercial paper came to a
standstill. In total, the debt of nonfinancial businesses
expanded at an estimated 5Vi percent rate in the
fourth quarter, less than half the pace of the first half
of the year. The slowdown in borrowing in the latter
part of the year damped the growth of nonfinancial
business debt over 2000, although it still expanded an
estimated 8 3 percent.
A
In early 2001, borrowing appears to have picked
up from its sluggish fourth-quarter pace. Following
the easing of monetary policy in early January, yield
spreads on corporate bonds reversed a considerable
portion of their rise over the latter part of 2000, with
spreads on high-yield bonds narrowing more than a
percentage point. As yields declined, corporate bond
issuance picked up, and even some below-investment
grade issues were brought to the market. In contrast,
investors in the commercial paper market apparently
became more concerned about credit risk, partly in
response to the defaults of two California utilities on
some bonds and commercial paper in mid-January
related to the difficulties in the electricity market in
that state. After those defaults, spreads between toptier and second-tier commercial paper widened fur­
ther, and investors became more discriminating even
within the top rating tier. Some businesses facing
resistance in the commercial paper market reportedly
met their financing needs by tapping backup credit
lines at banks.

Monetary Policy Report to the Congress

113

Change in real government expenditures
on consumption and investment

Major components of net business financing
Billions of dollars

I I Commercial paper
I

f~] Federal
■ State and local

Bonds

1999

—

6

2000

N ote . Seasonally adjusted annual rate for nonfarm nonfinancial corporate
businesses. Components for 2000:Q4 are estimated.

Growth in commercial mortgage debt slowed last
year to an estimated rate of 9 lA percent, and issuance
of commercial-mortgage-backed securities in 2000
fell back from its 1999 pace. Spreads on lower-rated
commercial-mortgage-backed securities over swap
rates widened by a small amount late in the year, and
banks on net reported tightening their standards on
commercial real estate credit over the year. Neverthe­
less, fundamentals in the commercial real estate mar­
ket remain solid, and delinquency rates on commer­
cial mortgages stayed around their historic lows.
The Government Sector
Real consumption and investment expenditures of
federal, state, and local governments, the part of
government spending that is included in GDP, rose
only \ lA percent in the aggregate during 2000. The
increase was small partly because the consumption
and investment expenditures of the federal gov­
ernment had closed out 1999 with a large increase
in advance of the century date change. Federal pur­
chases in the fourth quarter of 2000 were about
1 percent below the elevated level at year-end 1999.
Abstracting from the bumps in the spending data, the
underlying trend in real federal consumption and
investment outlays appears to have been mildly posi­
tive over the past couple of years. The consumption
and investment expenditures of state and local gov­
ernments rose about 2 Vi percent in 2000 after an
unusually large increase of 4 lA percent in 1999. The
slowdown in spending was mainly a reflection of a
downshift in government investment in structures,
which can be volatile from year to year and had
posted a large gain in 1999.



Total federal spending, as reported in the unified
budget, rose 5 percent in fiscal year 2000, the larg­
est increase in several years. A portion of the rise
stemmed from shifts in the timing of some outlays in
a way that tended to boost the tally for fiscal 2000.
But even allowing for those shifts, the rise in spend­
ing would have exceeded the increases of other recent
years. Outlays accelerated for most major functions,
including defense, health, social security, and income
security. Of these, spending on health—about threefourths of which consists of outlays for Medicaid—
recorded the biggest increase. Medicaid grants to the
states were affected last fiscal year by increased fund­
ing for the child health insurance initiative that was
passed in 1997 and by a rise in the portion of Medi­
caid expenses picked up by the federal government.
Spending on agriculture rose very sharply for a third
year but not as rapidly as in fiscal 1999. The ongoing
paydown of debt by the federal government led to a
Federal receipts and expenditures
Percent o f nominal GDP

---- 24

1982

1985

1988

1991

1994

1997

2000

N ote . The data are from the unified budget and are for fiscal years.

114

Federal Reserve Bulletin □ March 2001

decline of nearly 3 percent in net interest payments
in fiscal 2000 after a somewhat larger drop in these
payments in fiscal 1999.
Federal receipts increased 103 percent in fiscal
/4
year 2000, the largest advance in more than a decade.
The increase in receipts from taxes on the income
of individuals amounted to more than 14 percent. In
most recent years, these receipts have grown much
faster than nominal personal income as measured
in the national income and product accounts. One
important factor in the difference is that rising levels
of income and a changing distribution have shifted
more taxpayers into higher tax brackets; another is an
increase in revenues from taxes on capital gains and
other items that are not included in personal income.
Receipts from the taxation of corporate profits also
moved up sharply in fiscal 2000, rebounding from
a small decline the previous fiscal year. With fed­
eral receipts rising much faster than spending, the
surplus in the unified budget rose to $236 billion
in fiscal 2000, nearly double that of fiscal 1999. The
on-budget surplus, which excludes surpluses accumu­
lating in the social security trust fund, rose from
essentially zero in fiscal 1999 to $86 billion in fiscal
2000. Excluding net interest payments, a charge
resulting from past deficits, the surplus in fiscal 2000
was about $460 billion.
Federal saving, which is basically the federal bud­
get surplus adjusted to conform to the accounting
practices followed in the national income and product
accounts, amounted to about 3l 2 percent of nominal
/
GDP over the first three quarters of 2000. This figure
has been rising roughly 1 percentage point a year
over the past several years. Mainly because of that

rise in federal saving, the national saving rate has
been running at a higher level in recent years than
was observed through most of the 1980s and first half
of the 1990s, even as the personal saving rate has
plunged. The rise in federal saving has kept interest
rates lower than they otherwise would have been and
has contributed, in turn, to the rapid growth of capital
investment and the faster growth of the economy’s
productive potential.
The burgeoning federal budget surplus allowed
the Treasury to pay down its debt last year at an even
faster pace than in recent years. As of the end of
fiscal 2000, the stock of marketable Treasury debt
outstanding had fallen about $500 billion from its
peak in 1997. The existing fiscal situation and the
anticipation that budget surpluses would continue led
the Treasury to implement a number of debt man­
agement changes during 2000, many designed to
preserve the liquidity of its securities. In particular,
the Treasury sought to maintain large and regular
offerings of new securities at some key maturities,
because such attributes are thought to importantly
contribute to market liquidity. In part to make room
for continued sizable auctions of new securities, the
Treasury initiated a debt buyback program through
which it can purchase debt that it previously issued.
In total, the Treasury conducted twenty buyback
operations in 2000, repurchasing a total of $30 billion
par value of securities with maturities ranging from
twelve to twenty-seven years. Those operations were
generally well received and caused little disruption
to the market. Going forward, the Treasury intends
to conduct two buyback operations per month and
expects to repurchase about $9 billion par value of

National saving

Federal government debt held by the public

Note . National saving comprises the gross saving of households, businesses,
and governments. The data extend through 2000:Q3.

N ote . The data are as of the end of the fiscal year. Excludes debt held in
federal government accounts and by the Federal Reserve System.




Monetary Policy Report to the Congress

outstanding securities in each of the first two quarters
of 2001.
Despite conducting buybacks on that scale, the
Treasury had to cut back considerably its issuance of
new securities. To still achieve large sizes of indi­
vidual issues at some maturities, the Treasury imple­
mented a schedule of regular reopenings—in which
it auctions additional amounts of a previously issued
security instead of issuing a new one—for its five-,
ten-, and thirty-year instruments. Under that sched­
ule, every other auction of each of those securities is
a smaller reopening of the previously auctioned secu­
rity. At other maturities, the Treasury reduced the
sizes of its two-year notes and inflation-indexed secu­
rities and eliminated the April auction of the thirtyyear inflation-indexed bond. In addition, the Treasury
recently announced that it would stop issuing oneyear bills following the February auction, after hav­
ing cut back the frequency of new offerings of that
security last year.
These reductions in the issuance of Treasury secu­
rities have caused the Federal Reserve to modify
some of its procedures for obtaining securities at
Treasury auctions, as described in detail below. In
addition, the Treasury made changes in the rules for
auction participation by foreign and international
monetary authority (FIMA) accounts, which prima­
rily include foreign central banks and governmental
monetary entities. The new rules, which went into
effect on February 1, 2001, impose limits on the size
of non-competitive bids from individual FIMA
accounts and on the total amount of such bids that
will be awarded at each auction. These limits will
leave a larger pool of securities available for com­
petitive bidding at the auctions, helping to maintain
the liquidity and efficiency of the market. More­
over, FIMA purchases will be subtracted from the
total amount of securities offered, rather than being
added on as they were in some previous instances,
making the amount of funds raised at the auction
more predictable.
State and local government debt increased little in
2000. Gross issuance of long-term municipal bonds
was well below the robust pace of the past two years.
Refunding offerings were held down by higher inter­
est rates through much of the year, and the need to
raise new capital was diminished by strong tax reve­
nues. Net issuance was also damped by an increase
in the retirement of bonds from previous refunding
activity. Credit quality in the municipal market
improved considerably last year, with credit upgrades
outnumbering downgrades by a substantial margin.
The only notable exception was in the not-for-profit
health care sector, where downgrades predominated.



115

The External Sector
Trade and Current Account
The current account deficit reached $452 billion
(annual rate) in the third quarter of 2000, or 4.5 per­
cent of GDP, compared with $331 billion and 3.6 per­
cent for 1999. Most of the expansion in the current
account deficit occurred in the balance of trade in
goods and services. The deficit on trade in goods and
services widened to $383 billion (annual rate) in the
third quarter from $347 billion in the first half of the
year. Data for trade in October and November sug­
gest that the deficit may have increased further in the
fourth quarter. Net payments on investments were a
bit less during the first three quarters of 2000 than in
the second half of 1999 owing to a sizable increase in
income receipts from direct investment abroad.
U.S. exports of goods and services rose an esti­
mated 7 percent in real terms during 2000. Exports
surged during the first three quarters, supported by
a pickup in economic activity abroad that began
in 1999. By market destination, U.S. exports were
strongest to Mexico and countries in Asia. About
45 percent of U.S. goods exports were capital equip­
ment, 20 percent were industrial supplies, and
roughly 10 percent each were agricultural, automo­
tive, consumer, and other goods. Based on data for
October and November, real exports are estimated to
have declined in the fourth quarter, reflecting in part a
slowing of economic growth abroad. This decrease
was particularly evident in exports of capital goods,
automotive products, consumer goods, and agricul­
tural products.
The quantity of imported goods and services
expanded rapidly during the first three quarters of

U.S. current account

1980
1984
1988
1992
1996
2000
_________________________________________
N ote . The observation for 2000 is the average of the first three quarters.

116

Federal Reserve Bulletin □ March 2001

Change in real imports and exports of goods and services

and a high above $37 per barrel in September. Strong
demand—driven by robust world economic growth—
kept upward pressure on oil prices even as world
supply increased considerably. Over the course of
2000, OPEC raised its official production targets by
3.7 million barrels per day, reversing the production
cuts made in the previous two years. Oil production
from non-OPEC sources rebounded as well. During
the last several weeks of 2000, oil prices fell sharply
as market participants became convinced that the
U.S. economy was slowing. In early 2001, however,
oil prices moved back up when OPEC announced a
planned production cut of 1.5 million barrels per day.

Financial Account
2000, reflecting the continuing strength of U.S.
domestic demand and the effects of past dollar appre­
ciation on price competitiveness. Increases were
widespread among trade categories. Based on data
for October and November, real imports of goods and
services are estimated to have risen only slightly in
the fourth quarter. Moderate increases in imported
consumer and capital goods were partly offset by
declines in other categories of imports, particularly
industrial supplies and automotive products, for
which domestic demand had softened. The price of
non-oil imports is estimated to have increased by less
than 1 percent during 2000.
The price of imported oil rose nearly $7 per barrel
over the four quarters of 2000. During the year, oil
prices generally remained high and volatile, with the
spot price of West Texas intermediate (WTI) crude
fluctuating between a low of $24 per barrel in April
Prices of oil and other commodities

N ote . The data are monthly; the last observation for oil is the average of
trading days through February 8, 2001; the last observation for other commodi­
ties is November 2000. The oil price is the spot price of West Texas intermediate
crude oil. The price of other commodities is a weighted average of thirty-nine
nonfuel primary-commodity prices from the International Monetary Fund.




The counterpart to the increased U.S. current account
deficit in 2000 was an increase in net capital inflows.
As in 1999, U.S. capital flows in 2000 reflected the
relatively strong cyclical position of the U.S. econ­
omy for most of the year and the global wave of
corporate mergers. Foreign private purchases of U.S.
securities were exceptionally robust—well in excess
of the record set in 1999. The composition of U.S.
securities purchased by foreigners continued the shift
away from Treasuries as the U.S. budget surplus, and
the attendant decline in the supply of Treasuries,
lowered their yield relative to other debt. Last year
private foreigners sold, on net, about $50 billion
in Treasury securities, compared with net sales of
$20 billion in 1999. Although sizable, these sales
were slightly less than what would have occurred had
foreigners reduced their holdings in proportion to the
reduction in Treasuries outstanding. The increased
sale of Treasuries was fully offset by larger foreign
purchases of U.S. securities issued by governmentsponsored agencies. Net purchases of agency securi­
ties topped $110 billion, compared with the pre­
vious record of $72 billion set in 1999. In contrast
to the shrinking supply of Treasury securities, U.S.
government-sponsored agencies accelerated the pace
of their debt issuance. Private foreign purchases of
U.S. corporate debt grew to $180 billion, while net
purchases of U.S. equities ballooned to $170 billion
compared with $108 billion in 1999.
The pace of foreign direct investment inflows in
the first three quarters of 2000 also accelerated from
the record pace of 1999. As in the previous two
years, direct investment inflows were driven by for­
eign acquisition of U.S. firms, reflecting the global
strength in merger and acquisition activity. Of the
roughly $200 billion in direct investment inflows
in the first three quarters, about $100 billion was

Monetary Policy Report to the Congress

directly attributable to merger activity. Many of these
mergers were financed, at least in part, by an
exchange of equity, in which shares in the U.S. firm
were swapped for equity in the acquiring firm.
Although U.S. residents generally appear to have sold
a portion of the equity acquired through these swaps,
the swaps likely contributed significantly to the
$97 billion capital outflow attributed to U.S. acqui­
sition of foreign securities. U.S. direct investment
abroad was also boosted by merger activity and
totaled $117 billion in the first three quarters of 2000,
a slightly faster pace than that of 1999.
Capital inflows from foreign official sources totaled
$38 billion in 2000—a slight increase from 1999.
Nearly all of the official inflows were attributable to
reinvested interest earnings. Modest official sales of
dollar assets associated with foreign exchange inter­
vention were offset by larger inflows from some
non-OPEC oil exporting countries, which benefited
from the elevated price of oil.
The Labor M arket
Nonfarm payroll employment increased about
IV2 percent in 2000, measured on a December-toDecember basis. The job count had risen slightly
more than 2 percent in 1999 and roughly 2Vi percent
a year over the 1996-98 period. Over the first few
months of 2000, the expansion of jobs proceeded at a
faster pace than in 1999, boosted both by the federal
government’s hiring for the decennial Census and by
a somewhat faster rate of job creation in the private
sector. Indications of a moderation in private hiring
started to emerge toward mid-year, but because of
volatility of the incoming data a slowdown could not
be identified with some confidence until late summer.
Net change in payroll employment
Thousands o f jobs, m onthly average

1991

1993

N o t e . Private nonfarm.




1995

1997

1999

2001

117

Measures of labor utilization

— 6
I

Civilian unem ploym ent rate

—

—

3

I I I 1 1 I I I I I I 11 I I I I I 1 I I I I I I I I 1 I 11 I 1
1971

1981

1991

2001

N o t e . The augented unemployment rate is the number of unemployed plus
those who are not in the labor force and want a job, divided by the civilian labor
force plus those who are not in the labor force and want a job. The break in data
at January 1994 marks the introduction of a redesigned survey; data after that
point are not directly comparable with those of earlier periods. The data extend
through January 2001.

Over the remainder of the year monthly increases
in private employment stepped down further. Job
growth came almost to a stop in December, when
severe weather added to the restraint from a slowing
economy. In January of this year, employment picked
up, but the return of milder weather apparently
accounted for a sizable portion of the gain.
Employment rose moderately in the private
service-producing sector of the economy in 2000,
about 2 percent overall after an increase of about
3 percent in 1999. In the fourth quarter, however,
hiring in the services-producing sector was relatively
slow, in large part because of a sizable decline in the
number of jobs in personnel supply—a category that
includes temporary help agencies. Employment in
construction increased about V h percent in 2000
after several years of gains that were considerably
larger. The number of jobs in manufacturing was
down for a third year, owing to reductions in factory
employment in the second half of the year, when
manufacturers were adjusting to the slowing of
demand. Those adjustments in manufacturing may
also have involved some cutbacks in the employment
of temporary hires, which would help to account for
the sharp job losses in personnel supply. The average
length of the workweek in manufacturing was scaled
back as well over the second half of the year.
The slowing of the economy did not lead to any
meaningful easing in the tightness of the labor market
in 2000. The household survey’s measure of the
number of persons employed rose 1 percent, about in
line with the expansion of labor supply. On net, the
unemployment rate changed little; its fourth-quarter

118

Federal Reserve Bulletin □ March 2001

Change in output per hour

- 0
1 I

1
1990

1
1
1992

1
1
1994

1
1
1996

1
1
1998

1
1 1
2000

N ote . Nonfarm business sector.

average of 4.0 percent was down just a tenth of a
percentage point from the average unemployment
rate in the fourth quarter of 1999. The flatness of the
rate through the latter half of 2000, when the econ­
omy was slowing, may have partly reflected a desire
of companies to hold on to labor resources that had
been difficult to attract and retain in the tight labor
market of recent years. January of this year brought a
small increase in the rate, to 4.2 percent.
Productivity continued to rise rapidly in 2000. Out­
put per hour in the nonfarm business sector was up
about 3!/2 percent over the year as a whole. Sizable
gains in efficiency continued to be evident even as
the economy was slowing in the second half of the
year. Except for 1999, when output per hour rose
about 33 percent, the past year’s increase was the
/4
largest since 1992, a year in which the economy was
Measures of the change in hourly compensation

in cyclical recovery from the 1990-91 recession.
Cutting through the year-to-year variations in mea­
sured productivity, the underlying trend still appears
to have traced out a pattern of strong acceleration
since the middle part of the 1990s. Support for a
step-up in the trend has come from increases in the
amount of capital per worker—especially high-tech
capital—and from organizational efficiencies that
have resulted in output rising faster than the com­
bined inputs of labor and capital.
Alternative measures of the hourly compensation
of workers, while differing in their coverage and
methods of construction, were consistent in showing
some acceleration this past year. The employment
cost index for private industry (ECI), which attempts
to measure changes in the labor costs of nonfarm
businesses in a way that is free from the effects of
employment shifts among occupations and industries,
rose nearly AVi percent during 2000 after having
increased about 3 V2 percent in 1999. Compensation
per hour in the nonfarm business sector, a measure
that picks up some forms of employee compensation
that the ECI omits but that also is more subject to
eventual revision than the ECI, showed hourly com­
pensation advancing 53 percent this past year, up
A
from a 1999 increase of about 4 lA percent. Tightness
of the labor market was likely one factor underlying
the acceleration of hourly compensation in 2000,
with employers relying both on larger wage increases
and more attractive benefit packages to attract and
retain workers. Compensation gains may also have
been influenced to some degree by the pickup of
consumer price inflation since 1998. Rapid increases
in the cost of health insurance contributed impor­
tantly to a sharp step-up in benefit costs.
Unit labor costs, the ratio of hourly compensation
to output per hour, increased about 2 l percent in the
A
Change in unit labor costs

P I Employment cost index
■ Nonfarm compensation per hour

N ote. For the employment cost index (ECI), change is from December to
December; for nonfarm compensation, Q4 to Q4. The ECI is for private industry
excluding farm and household workers. Nonfarm compensation per hour is for
the nonfarm business sector.




Percent

N ote. Nonfarm business sector.

Monetary Policy Report to the Congress

nonfarm business sector in 2000 after having risen
slightly more than Vi percent in 1999. Roughly threefourths of the acceleration was attributable to the
faster rate of increase in compensation per hour noted
above. The remainder stemmed from the small decel­
eration of measured productivity. The labor cost rise
for the latest year was toward the high end of the
range of the small to moderate increases that have
prevailed over the past decade.

119

Change in consumer prices

Prices
Led by the surge in energy prices, the aggregate price
indexes showed some acceleration in 2000. The
chain-type price index for real GDP, the broadest
measure of goods and services produced domesti­
cally, rose 2 lA percent in 2000, roughly 3 percentage
A
point more than in 1999. The price index for gross
domestic purchases, the broadest measure of prices
for goods and services purchased by domestic buy­
ers, posted a rise of almost 2 Vi percent in 2000 after
having increased slightly less than 2 percent the
previous year. Prices paid by consumers, as measured
by the chain-type price index for personal consump­
tion expenditures, picked up as well, about as much
as the gross purchases index. The consumer price
index (CPI) continued to move up at a faster pace
than the PCE index this past year, and it exhibited
slightly more acceleration—an increase of nearly
3V2 percent in 2000 was 3 percentage point larger
A
than the 1999 rise. Price indexes for fixed investment
and government purchases also accelerated this past
year.
The prices of energy products purchased directly
by consumers increased about 15 percent in 2000, a
few percentage points more than in 1999. In response
to the rise in world oil prices, consumer prices of
motor fuels rose nearly 20 percent in 2000, bringing
the cumulative price hike for those products over
the past two years to roughly 45 percent. Prices also
rose rapidly for home heating oil. Natural gas prices
Alternative measures of price change
Percent
Price measure
Chain-type
Gross domestic product
Gross domestic purchases
Personal consumption expenditures
Excluding food and energy
Fixed-xveight
Consumer price in d ex ...........
Excluding food and energy
N ote . Changes are based on quarterly averages and are measured to the
fourth quarter of the year indicated from the fourth quarter of the preceding year.




increased 30 percent, as demand for that fuel out­
paced the growth of supply, pulling stocks down to
low levels. Prices of natural gas this winter have been
exceptionally high because of the added demand for
heating that resulted from unusually cold weather
in November and December. Electricity costs jumped
for some users, and prices nationally rose faster than
in other recent years, about 2X percent at the con­
A
sumer level.
Businesses had to cope with rising costs of energy
in production, transportation, and temperature con­
trol. In some industries that depend particularly
heavily on energy inputs, the rise in costs had a large
effect on product prices. Producer prices of goods
such as industrial chemicals posted increases that
were well above the average rates of inflation last
year, and rising prices for natural gas sparked espe­
cially steep price advances for nitrogen fertilizers
used in fanning. Prices of some services also exhib­
ited apparent energy impacts: Producers paid sharply
higher prices for transportation services via air and
water, and consumer airfares moved up rapidly for a
second year, although not nearly as much as in 1999.
Late in 2000 and early this year, high prices for
energy inputs prompted shutdowns in production at
some companies, including those producing fertiliz­
ers and aluminum.
Despite the spillover of energy effects into other
markets, inflation outside the energy sector remained
moderate overall. The ongoing rise in labor produc­
tivity helped to contain the step-up in labor costs, and
the slow rate of rise in the prices of non-oil imports
meant that domestic businesses had to remain cau­
tious about raising their prices because of the poten­
tial loss of market share. Rapid expansion of capacity
in manufacturing prevented bottlenecks from devel­
oping in the goods-producing sector of the economy

120

Federal Reserve Bulletin □ March 2001

Change in consumer prices excluding food and energy

when domestic demand was surging early in the year;
later on, an easing of capacity utilization was accom­
panied by a softening of prices in a number of indus­
tries. Inflation expectations, which at times in the
past have added to the momentum of rising inflation,
remained fairly quiescent in 2000.
Against this backdrop, core inflation remained low
in 2000. Producer prices of intermediate materials
excluding food and energy, after having accelerated
through the first few months of 2000, slowed there­
after, and their four-quarter rise of \ 3 percent was
A
only a bit larger than the increase during 1999. Prices
of crude materials excluding food and energy fell
moderately this past year after having risen about
10 percent a year earlier. At the consumer level, the
CPI excluding food and energy moved up 2!/2 percent
in 2000, an acceleration of slightly less than x per­
h
centage point from 1999 when put on a basis that
maintains consistency of measurement. The rise in
the chain-type price index for personal consumption
A
expenditures excluding food and energy was 13 per­
cent, just a bit above the increases recorded in each of
the two previous years.
Consumer food prices rose 2Vi percent in 2000
after an increase of about 2 percent in 1999. In large
part, the moderate step-up in these prices probably
reflected cost and price considerations similar to
those at work elsewhere in the economy. Also, farm
commodity prices moved up, on net, during 2000,
after three years of sharp declines, and this turnabout
likely showed through to the retail level to some
extent. Meat prices, which are linked more closely to
farm prices than is the case with many other foods,
recorded increases that were appreciably larger than
the increases for food prices overall.
The chain-type price index for private fixed invest­
ment rose about \ 3 percent in 2000, but that small
A



increase amounted to a fairly sharp acceleration from
the pace of the preceding few years, several of which
had brought small declines in investment prices.
Although the price index for investment in residential
structures slowed a little, to about a 2> percent rise,
X
A
the index for nonresidential structures sped up from
a 23 percent increase in 1999 to one of 4 xz percent
/4
/
in 2000. Moreover, the price index for equipment
and software ticked up slightly, after having declined
2 percent or more in each of the four preceding years.
To a large extent, that turnabout was a reflection of a
smaller rate of price decline for computers; they had
dropped at an average rate of more than 20 percent
through the second half of the 1990s but fell at
roughly half that rate in 2000. Excluding computers,
equipment prices increased slightly in 2000 after
having declined a touch in 1999.

U.S. Financial M arkets
Financial markets in 2000 were influenced by the
changing outlook for the U.S. economy and monetary
policy and by shifts in investors’ perceptions of and
attitudes toward risk. Private longer-term interest
rates generally firmed in the early part of the year as
growth remained unsustainably strong and as market
participants anticipated a further tightening of mone­
tary policy by the Federal Reserve. Later in the year,
as it became apparent that the pace of economic
growth was slowing, market participants began to
incorporate expectations of significant policy easing
into asset prices, and most longer-term interest rates
fell sharply over the last several months of 2000 and
into 2001. Over the course of the year, investors
became more concerned about credit risk and
demanded larger yield spreads to hold lower-rated
corporate bonds, especially once the growth of the
economy slowed in the second half. Banks, appar­
ently having similar concerns, reported widening
credit spreads on business loans and tightening stan­
dards for lending to businesses. Weakening economic
growth and tighter financial conditions in some sec­
tors led to a slowing in the pace of debt growth over
the course of the year.
Stock markets had another volatile year in 2000.
After touching record highs in March, stock prices
turned lower, declining considerably over the last
four months of the year. Valuations in some sectors
fell precipitously from high levels, and near-term
earnings forecasts were revised down sharply late in
the year. On balance, the broadest stock indexes fell
more than 10 percent last year, and the tech-heavy
Nasdaq was down nearly 40 percent.

Monetary Policy Report to the Congress

Rates on selected Treasury securities

N ote . The data are daily and extend through February 8, 2001.

Interest Rates
The economy continued to expand at an exception­
ally strong and unsustainable pace in the early part
of 2000, prompting the Federal Reserve to tighten
its policy stance in several steps ending at its May
meeting. Private interest rates and shorter-term Trea­
sury yields rose considerably over that period, reach­
ing a peak just after the May FOMC meeting. Inves­
tors apparently became more concerned about credit
risk as well; spreads between rates on lower-rated
corporate bonds and swaps widened in the spring,
adding to the upward pressure on private interest
rates. Long-term Treasury yields, in contrast,
remained below their levels from earlier in the year,
as market participants became increasingly convinced
that the supply of those securities would shrink con­
siderably in coming years and incorporated a “ scar­
city premium” into their prices. By mid-May, with
the rapid expansion of economic activity showing
few signs of letting up, rates on federal funds and
eurodollar futures, which can be used as a rough
gauge of policy expectations, were indicating that
market participants expected additional policy tight­
ening going forward.
Signs of a slowdown in the growth of aggregate
demand began to appear in the incoming data soon
after the May FOMC meeting and continued to
gradually accumulate over subsequent months. In
response, market participants became increasingly
convinced that the FOMC would not have to tighten
its policy stance further, which was reflected in a
flattening of the term structure of rates on federal
funds and eurodollar futures. Interest rates on most
corporate bonds declined gradually on the shifting



121

outlook for the economy, and by the end of August
had fallen more than V2 percentage point from their
peaks in May.
Most market interest rates continued to edge lower
into the fall, as the growth of the economy seemed to
moderate further. Over the last couple months of
2000 and into early 2001, as it became apparent that
economic growth was slowing more abruptly, market
participants sharply revised down their expectations
for future short-term interest rates. Treasury yields
plummeted over that period, particularly at shorter
maturities: The two-year Treasury yield dropped
more than a full percentage point from midNovember to early January, moving below the thirtyyear yield for the first time since early 2000. Yields
on inflation-indexed securities also fell considerably,
but by less than their nominal counterparts, suggest­
ing that the weakening of economic growth lowered
expectations of both real interest rates and inflation.
Although market participants had come to expect
considerable policy easing over the first part of this
year, the timing and magnitude of the intermeeting
cut in the federal funds rate in early January was a
surprise. In response, investors built into asset prices
anticipations of a more rapid policy easing over the
near-term. Indeed, the further substantial reduction in
the federal funds rate implemented at the FOMC
meeting later that month was largely expected and
elicited little response in financial markets. Even with
a full percentage point reduction in the federal funds
rate in place, futures rates have recently pointed to
expectations of additional policy easing over coming
months. Investors appear to be uncertain about this
outlook, however, judging from the recent rise in the

Federal funds futures rates and the intended federal funds rate
Percent

2000

2001

N o t e . The thick line segments show the rates on federal funds futures
contracts on the day after the scheduled FOMC meetings in February, May,
August, and November 2000 and in January 2001.

122

Federal Reserve Bulletin □ March 2001

Implied volatility of short-term interest rates

I

i

i

i

I
___ i

1998

i
1999

i

1 __ i___ i___ i___ I _ I
_
_
2000

2001

N ote . The data are daily and extend through February 8, 2001. The series
shown is the implied volatility of the three-month eurodollar rate over the
coming four months, as calculated from option prices.

implied volatilities of interest rates derived from
option prices. On balance since the beginning of
2000, the progressive easing in the economic out­
look, in combination with the effects of actual and
prospective reductions in the supply of Treasury
securities, has resulted in a sizable downward shift in
the Treasury yield curve.
The prospect of a weakening in economic growth,
along with sizable declines in equity prices and
downward revisions to profit forecasts, apparently
caused investors to reassess credit risks in the latter
part of last year. Spreads between rates on high-yield
corporate bonds and swaps soared beginning in Sep­
tember, pushing the yields on those bonds substan­
tially higher. Concerns about credit risk also spilled
over into the investment-grade sector, where yield
Treasury yield curve

N ote . The yield curves shown are estimated from off-the-run Treasury
coupon securities and represent yields on notional par Treasury securities with
semiannual coupons.




spreads widened considerably for lower-rated securi­
ties. For most investment-grade issuers, though, the
effects of the revised policy outlook more than offset
any widening in risk spreads, resulting in a decline in
private interest rates in the fourth quarter. Since the
first policy easing in early January, yield spreads on
corporate bonds have narrowed considerably, includ­
ing a particularly large drop in the spread on highyield bonds. Overall, yields on most investmentgrade corporate bonds have reached their lowest
levels since the first half of 1999, while rates on most
high-yield bonds have fallen about 2 percentage
points from their peaks and have reached levels simi­
lar to those of mid-2000.
Although investors at times in recent months
appeared more concerned about credit risk than they
were in the fall of 1998, the recent financial environ­
ment, by most accounts, did not resemble the market
turbulence and disruption of that time. The Trea­
sury and investment-grade corporate bond markets
remained relatively liquid, and the investment-grade
market easily absorbed the high volume of bond
issuance over 2000. Investors continued to show a
heightened preference for larger, more liquid corpo­
rate issues, but they did not exhibit the extreme desire
for liquidity that was apparent in the fall of 1998. For
example, the liquidity premium for the on-the-run
ten-year Treasury note this year remained well below
the level of that fall.
Nonetheless, the Treasury market has become
somewhat less liquid than it was several years ago.
Moreover, in 2000, particular segments of the Trea­
sury market occasionally experienced bouts of unusu­
ally low liquidity that appeared related to actual or
potential reductions in the supply of individual secu­
rities. Given the possibility that liquidity could dete­
riorate further as the Treasury continues to pay down
its debt, market participants reportedly increased
their reliance on alternative instruments—including
interest rate swaps and debt securities issued by
government-sponsored housing agencies and other
corporations—for some of the hedging and pricing
functions historically provided by Treasury securi­
ties. Fannie Mae and Freddie Mac continued to issue
large amounts of debt under their Benchmark and
Reference debt programs, which are designed to
mimic characteristics of Treasury securities—such as
large issue sizes and a regular calendar of issuance—
that are believed to contribute to their liquidity. By
the end of 2000, the two firms together had more than
$300 billion of notes and bonds and more than
$200 billion of bills outstanding under those pro­
grams. Trading volume and dealer positions in
agency securities have risen considerably since 1998,

Monetary Policy Report to the Congress

and the market for repurchase agreements in those
securities has reportedly become more active. Also,
several exchanges listed options and futures on
agency debt securities. Open interest on some of
those futures contracts has picked up significantly,
although it remains small compared to that on futures
contracts on Treasury securities.
The shrinking supply of Treasury securities and the
possibility of a consequent decline in market liquidity
also pose challenges for the Federal Reserve. For
many years, Treasury securities have provided the
Federal Reserve with an effective asset for System
portfolio holdings and the conduct of monetary pol­
icy. The remarkable liquidity of Treasury securities
has allowed the System to conduct sizable policy
operations quickly and with little disruption to mar­
kets, while the safety of Treasury securities has
allowed the System to avoid credit risk in its port­
folio. However, if Treasury debt continues to be paid
down, at some point the amount outstanding will be
insufficient to meet the Federal Reserve’s portfolio
needs. Well before that time, the proportion of Trea­
sury securities held by the System could reach levels
that would significantly disrupt the Treasury market
and make monetary policy operations increasingly
difficult or costly. Recognizing this possibility, last
year the FOMC initiated a study to consider alterna­
tive approaches to managing the Federal Reserve’s
portfolio, including expanding the use of the discount
window and broadening the types of assets acquired
in the open market. As it continues to study various
alternatives, the FOMC will take into consideration
the effect that such approaches might have on the
liquidity and safety of its portfolio and the poten­
tial for distorting the allocation of credit to private
entities.
Meanwhile, some measures have been taken to
prevent the System’s holdings of individual Treasury
securities from reaching possibly disruptive levels
and to help curtail any further lengthening of the
average maturity of the System’s holdings. On July 5,
2000, the Federal Reserve Bank of New York
announced guidelines limiting the System’s holdings
of individual Treasury securities to specified percent­
ages of their outstanding amounts, depending on the
remaining maturity of the issue. Those limits range
from 35 percent for Treasury bills to 15 percent
for longer-term bonds. As a result, the System has
redeemed some of its holdings of Treasury securities
on occasions when the amount of maturing holdings
has exceeded the amount that could be rolled over
into newly issued Treasury securities under these
limits. Redemptions of Treasury holdings in 2000
exceeded $28 billion, with more than $24 billion



123

of the redemptions in Treasury bills. In addition, the
Federal Reserve accommodated a portion of the
demand for reserves last year by increasing its use of
longer-term repurchase agreements rather than by
purchasing Treasury securities outright. The System
maintained an average of more than $15 billion of
longer-term repurchase agreements over 2000, typi­
cally with maturities of twenty-eight days.
Equity Prices
After having moved higher in the first quarter of
2000, equity prices reversed course and finished the
year with considerable declines. Early in the year,
the rapid pace of economic activity lifted corporate
profits, and stock analysts became even more opti­
mistic about future earnings growth. In response,
most major equity indexes reached record highs in
March, with the Wilshire 5000 rising 6 3 percent
A
above its 1999 year-end level and the Nasdaq soaring
24 percent, continuing its rapid run-up from the sec­
ond half of 1999. Equity prices fell from these highs
during the spring, with a particularly steep drop in the
Nasdaq, as investors grew more concerned about the
lofty valuations of some sectors and the prospect of
higher interest rates.
Broader equity indexes recovered much of those
losses through August, supported by the decline in
market interest rates and the continued strength of
earnings growth in the second quarter. But from early
September through the end of the year, stock prices
fell considerably in response to the downshift in
economic growth, a reassessment of the prospects for
some high-tech industries, and disappointments in
corporate earnings. In December and January, equity
Major stock price indexes

JFMAMJ J A S O N D J
1999

FMAMJ J A S O N D J F
2000
2001

Note . The data are daily and extend through February 8, 2001.

124

Federal Reserve Bulletin □ March 2001

analysts significantly reduced their forecasts for yearahead earnings for the S&P 500. However, analysts
apparently view the slowdown in earnings as short­
lived, as long-run earnings forecasts did not fall
much and remain at very high levels, particularly for
the technology sector.
On balance, the Wilshire 5000 index fell 12 per­
cent over 2000—its first annual decline since 1994.
The Nasdaq composite plunged 39 percent, leaving it
at year-end more than 50 percent below its record
high and erasing nearly all of its gains since the
beginning of 1999. The broad decline in equity prices
last year is estimated to have lopped more than
SPA trillion from household wealth, or more than
4 percent of the total net worth of households. Never­
theless, the level of household net worth is still quite
high—about 50 percent above its level at the end of
1995. Investors continued to accumulate considerable
amounts of equity mutual funds over 2000, although
they may have become increasingly discouraged by
losses on their equity holdings toward the end of the
year, when flows into equity funds slumped. At that
time, money market mutual funds expanded sharply,
as investors apparently sought a refuge for financial
assets amid the heightened volatility and significant
drops in equity prices. So far in 2001, major equity
indexes are little changed, on balance, as the boost
from lower interest rates has been countered by con­
tinued disappointments over corporate earnings.
Some of the most dramatic plunges in share prices
in 2000 took place among technology, telecommu­
nications, and Internet shares. While these declines
partly stemmed from downward revisions to nearterm earnings estimates, which were particularly

Price-earnings ratios for the S&P 500
and selected components
Ratio

1983

1986

1989

1992

1995

1998

2001

N o t e . The data are monthly and extend through January 2001. The ratios are

based on I/B/E/S consensus estimates of earnings over the coming twelve
months.




Wilshire 5000 volatility
Percent

---- 30

N o t e . The data, which are daily and extend through February 8, 2001, are
the standard deviations of daily percent changes in the Wilshire 5000 index over
the previous six months, with the standard deviations expressed on an annual
basis.

severe in some cases, they were also driven by a
reassessment of the elevated valuations of many
companies in these sectors. The price-earnings ratio
(calculated using operating earnings expected over
the next year) for the technology component of the
S&P 500 index fell substantially from its peak in
early 2000, although it remains well above the ratio
for the S&P 500 index as a whole. For the entire
S&P 500 index, share prices fell a bit more in per­
centage terms than the downward revisions to yearahead earnings forecasts, leaving the price-earnings
ratio modestly below its historical high.
The volatility of equity price movements during
2000 was at the high end of the elevated levels
observed in recent years. In the technology sector,
the magnitudes of daily share price changes were
at times remarkable. There were twenty-seven days
during 2000 in which the Nasdaq composite index
moved up or down by at least 5 percent; by compari­
son, such outsized movements were observed on a
total of only seven days from 1990 to 1999.
Despite the volatility of share price movements
and the large declines on balance over 2000, equity
market conditions were fairly orderly, with few
reports of difficulties meeting margin requirements
or of large losses creating problems that might pose
broader systemic concerns. The fall in share prices
reined in some of the margin debt of equity investors.
After having run up sharply through March, the
amount of outstanding margin debt fell by about
30 percent over the remainder of the year. At yearend, the ratio of margin debt to total equity market
capitalization was slightly below its level a year
earlier.

Monetary Policy Report to the Congress

The considerable drop in valuations in some sec­
tors and the elevated volatility of equity price move­
ments caused the pace of initial public offerings to
slow markedly over the year, despite a large number
of companies waiting to go public. The slowdown
was particularly pronounced for technology compa­
nies, which had been issuing new shares at a frantic
pace early in the year. In total, the dollar amount of
initial public offerings by domestic nonfinancial com­
panies tapered off in the fourth quarter to its lowest
level in two years and has remained subdued so far in

2001

125

Regulatory capital ratios of commercial banks
Percent

Total (tier 1 + tier 2) ratio

.

D ebt and the M onetary Aggregates
Debt and Depository Intermediation
Aggregate debt of domestic nonfinancial sectors
increased an estimated 5lA percent over 2000, a con­
siderable slowdown from the gains of almost 7 per­
cent posted in 1998 and 1999. The expansion of
nonfederal debt moderated to 8 V2 percent in 2000
from 91/2 percent in 1999; the slowing owed prima­
rily to a weakening of consumer and business bor­
rowing in the second half of the year, as the growth of
durables consumption and capital expenditures fell
off and financial conditions tightened for some firms.
Some of the slowdown in total nonfinancial debt was
also attributable to the federal government, which
paid down 63 percent of its debt last year, compared
/4
with 2Vi percent in 1999. In 1998 and 1999, domestic
nonfinancial debt increased faster than nominal GDP,
despite the reduction in federal debt over those years.
The ratio of nonfinancial debt to GDP edged down in
2000, however, as the federal debt paydown acceler­
ated and nonfederal borrowing slowed.
Domestic nonfinancial debt

N ote. The data are annual.




Note. The data, which are quarterly and extend through 2000:Q3, are ratios
of capital to risk-weighted assets. Tier 1 capital consists primarily of common
equity and certain perpetual preferred stock. Tier 2 capital consists primarily of
subordinated debt, preferred stock not included in tier 1 capital, and a limited
amount of loan-loss reserves.

Depository institutions continued to play an impor­
tant role in meeting the demand for credit by busi­
nesses and households. Credit extended by com­
mercial banks, after adjustment for mark-to-market
accounting rules, increased 10 percent over 2000,
well above the pace for total nonfinancial debt. Bank
credit expanded at a particularly brisk rate through
late summer, when banks, given their ample capital
base and solid profits, were willing to meet strong
loan demand by households and businesses. Over the
remainder of the year, the growth of bank credit
declined appreciably, as banks became more cautious
lenders and as several banks shed large amounts of
government securities.
Banks reported a deterioration of the quality of
their business loan portfolios last year. Delinquency
and charge-off rates on C&I loans, while low by
historical standards, rose steadily, partly reflecting
some repayment difficulties in banks’ syndicated loan
portfolios. Several large banks have stated that the
uptrend in delinquencies is expected to continue in
2001. Higher levels of provisioning for loan losses
and some narrowing of net interest margins contrib­
uted to a fallback of bank profits from the record
levels of 1999. In addition, capitalization measures
slipped a bit last year. Nevertheless, by historical
standards banks remained quite profitable overall and
appeared to have ample capital. In the aggregate,
total capital (the sum of tier 1 and tier 2 capital)
remained above 12 percent of risk-weighted assets
over the first three quarters of last year, more than
two percentage points above the minimum level
required to be considered well-capitalized.

126

Federal Reserve Bulletin □ March 2001

Net percentage of domestic banks tightening standards
for commercial and industrial loans, by size of firm
Percent

—

50

years. With delinquency rates for consumer and real
estate loans having changed little, on net, last year,
banks did not tighten credit conditions significantly
for loans to households over the first three quarters of
2000. More recently, however, an increasing portion
of banks increased standards and terms for consumer
loans other than credit cards, and some of the banks
surveyed anticipated a further tightening of condi­
tions on consumer loans during 2001.
The Monetary Aggregates

N ote . The data are based on the Federal Reserve’s Senior Loan Officer
Opinion Survey on Bank Lending Practices, which is generally conducted four
times per year. The data extend through January 2001. Small firms are those
with annual sales of less than $50 million.

In response to greater uncertainty about the eco­
nomic outlook and a reduced tolerance for risk,
increasing proportions of banks reported tightening
standards and terms on business loans during 2000
and into 2001, with the share recently reaching
the highest level since 1990. The tightening became
widespread for loans to large and middle-market
firms. A considerable portion of banks reported firm­
ing standards and terms on loans to small businesses
as well, consistent with surveys of small businesses
indicating that a larger share of those firms had
difficulty obtaining credit in 2000 than in previous

The monetary aggregates grew rather briskly last
year. The expansion of the broadest monetary aggre­
gate, M3, was particularly strong over the first three
quarters of 2000, as the robust growth in depository
credit was partly funded through issuance of the
managed liabilities included in this aggregate, such
as large time deposits. M3 growth eased somewhat
in the fourth quarter because the slowing of bank
credit led depository institutions to reduce their reli­
ance on managed liabilities. Institutional money
funds increased rapidly throughout 2000, despite the
tightening of policy early in the year, in part owing to
continued growth in their provision of cash manage­
ment services for businesses. For the year as a whole,
M3 expanded 9lA percent, well above the I 3 percent
A
pace in 1999. This advance again outpaced that of
nominal income, and M3 velocity—the ratio of nomi­
nal income to M3—declined for the sixth year in a
row.

Growth of money and debt
Percent
Period

Domestic
nonfinancial debt

M2

Ml

M3

4.2
3.1
1.8
1.3
.6

1.9
1.2
.6
1.0
1.7

6.7
4.5
4.5
4.9
4.8

Annual1
1990 .....................
1 9 9 1 .....................
1992 ....................
1993 .....................
1994 ....................

4.2
7.9
14.4
10.6
2.5

1995
1996
1997
1998
1999

.....................
.....................
.....................
....................
....................

-1.5
-4.5
-1 .2
2.2
1.8

3.8
4.5
5.6
8.4
6.2

6.1
6.8
8.9
10.9
7.7

5.4
5.3
5.4
6.9
6.8

2000 ....................

-1.5

6.3

9.2

5.3

Quarterly (annual rate)2
2000:1 .................
2 .................
3 .................
4 .................

2.0
-1 .8
-3.7
-2.7

5.8
6.4
5.8
6.6

10.6
9.0
8.9
7.1

5.6
6.2
4.7
4.1

N ote . M l consists of currency, travelers checks, demand deposits, and other
checkable deposits. M2 consists of M l plus savings deposits (including money
market deposit accounts), small-denomination time deposits, and balances in
retail money market funds. M3 consists of M2 plus large-denomination time
deposits, balances in institutional money market funds, RP liabilities (overnight
and term), and eurodollars (overnight and term). Debt consists of the out­




Ip

standing credit market debt of the U.S. government, state and local govern­
ments, households and nonprofit organizations, nonfinancial businesses, and
farms.
1. From average for fourth quarter of preceding year to average for fourth
quarter of year indicated.
2. From average for preceding quarter to average for quarter indicated.

Monetary Policy Report to the Congress

M2 velocity and opportunity cost

Note. The data are quarterly. The velocity of M2 is the ratio of nominal
gross domestic product to the stock of M2. The opportunity cost of holding M2
is a two-quarter moving average of the difference between the three-month
Treasury bill rate and the weighted average return on assets included in M2.

M2 increased 6 lA percent in 2000, about un­
changed from its pace in 1999. Some slowing in M2
growth would have been expected based on the rise
in short-term interest rates over the early part of
the year, which pushed up the “opportunity cost” of
holding M2, given that the interest rates on many
components of M2 do not increase by the same
amount or as quickly as market rates. However, with
the level of long-term rates close to that of short­
term rates, investors had much less incentive to shift
funds out of M2 assets and into assets with longer
maturities, which helped support M2 growth. M2 was
also boosted at times by households’ increased pref­
erence for safe and liquid assets during periods of
heightened volatility in equity markets. On balance
over the year, the growth of M2 slightly exceeded
that of nominal income, and M2 velocity edged
down.
The behavior of the components of M2 was influ­
enced importantly by interest rate spreads. The
depressing effect of higher short-term market interest
rates was most apparent in the liquid deposit com­
ponents, including checkable deposits and savings
accounts, whose rates respond very sluggishly to
movements in market rates. Small time deposits and
retail money market mutual funds, whose rates do not
lag market rates as much, expanded considerably
faster than liquid deposits. Currency growth was held
down early in the year by a runoff of the stockpile
accumulated in advance of the century date change.
In addition, it was surprisingly sluggish over the
balance of the year given the rapid pace of income
growth, with weakness apparently in both domestic
and foreign demands.



127

International D evelopm ents
In 2000, overall economic activity in foreign econo­
mies continued its strong performance of the previ­
ous year. However, in both industrial and developing
countries, growth was strongest early, and clear signs
of a general slowing emerged later in the year.
Among industrial countries, growth in Japan last year
moved up to an estimated 2 percent, and growth in
the euro area slowed slightly to 3 percent. Emerging
market economies in both Asia and Latin America
grew about 6 percent on average in 2000. For Asian
developing economies, this represented a slowing
from the torrid pace of the previous year, while
growth in Latin America, especially Mexico, picked
up from 1999. Average foreign inflation edged up
slightly to 3 percent, mainly reflecting higher oil
prices. Over the first part of the year, monetary
authorities moved to tighten conditions in many
industrial countries, in reaction to continued strong
growth in economic activity that was starting to
impinge on capacity constraints, as well as some
upward pressures on prices. Interest rates on long­
term government securities declined on balance in
most industrial countries, especially toward year-end
when evidence of a slowdown in global economic
growth started to emerge.
Conditions in foreign financial markets were some­
what more unsettled than in the previous year. Over­
all stock indexes in the foreign industrial countries
generally declined, most notably in Japan. As in the
United States, technology-oriented stock indexes
were extremely volatile during the year. After reach­
ing peaks in the first quarter, they started down while
experiencing great swings toward mid-year, then fell
sharply in the final quarter, resulting in net declines
Foreign equity indexes

N ote . The data are monthly. The last observations are the average of trading
days through February 8, 2001.

128

Federal Reserve Bulletin □ March 2001

Nominal U.S. dollar exchange rate indexes
January 1998 = 100

________ 1998_______________ 1999______________ 2000_______ 2001
N ote . The data are monthly. Indexes are trade-weighted averages of the
exchange value of the dollar against major currencies and against the currencies
of a broader group of important U.S. trading partners. Last observations are the
average of trading days through February 8, 2001.

for the year of one-third or more. Stock prices in
emerging market economies were generally quite
weak, especially in developing Asia, where growth
in recent years has depended heavily on exports of
high-tech goods. Although there was no major default
or devaluation among emerging market economies,
average risk spreads on developing country debt still
moved higher on balance over the course of the year,
as the threat of potential crises in several countries,
most notably Argentina and Turkey, heightened
investor concerns.
The dollar’s average foreign exchange value
increased over most of the year, supported by con­
tinued robust growth of U.S. activity, rising interest
rates on dollar assets, and market perceptions that
longer-term prospects for U.S. growth and rates of
return were more favorable than in other industrial
countries. Part of the rise in the dollar’s average
value was reversed late in the year when evidence
emerged that the pace of U.S. activity was slowing
much more sharply than had been expected. Despite
this decline, the dollar’s average foreign exchange
value against the currencies of other major foreign
industrial countries recorded a net increase of over
7 percent for the year as a whole. The dollar also
strengthened nearly as much on balance against the
currencies of the most important developing country
trading partners of the United States. So far this year,
the dollar’s average value has remained fairly stable.

Europe. During the first three quarters of the year, the
euro continued to weaken, and by late October had
fallen to a low of just above 82 cents, nearly onethird below its value when it was introduced in
January 1999. The euro’s decline against the dollar
through most of last year appeared to be due mainly
to the vigorous growth of real GDP and productiv­
ity in the United States contrasted with steady but
less impressive improvements in Europe. In addition,
investors may have perceived that Europe was slower
to adopt “new economy” technologies, making it a
relatively less attractive investment climate. In Sep­
tember, a concerted intervention operation by the
monetary authorities of G-7 countries, including the
United States, was undertaken at the request of Euro­
pean authorities to provide support for the euro. The
European Central Bank also made intervention pur­
chases of euros on several occasions acting on its
own. Late in the year, the euro abruptly changed
course and started to move up strongly, reversing
over half of its decline of earlier in the year. This
recovery of the euro against the dollar appeared to
reflect mainly a market perception that, while growth
was slowing in both Europe and the United States,
the slowdown was much sharper for the United
States. For the year as a whole, the dollar appreci­
ated, on net, about 7 percent against the euro.
The European Central Bank raised its policy inter­
est rate target six times by a total of 175 basis points
over the first ten months of the year. These increases
reflected concerns that the euro’s depreciation,
tightening capacity constraints and higher oil prices
would put upward pressure on inflation. While core
inflation—inflation excluding food and energy—
U.S. dollar exchange rate against the euro
and the Japanese yen

_ _
I_i _i

i

I

i _ i _ i _ 1_ i _ i _ i _ 1_ I
_ _ _ _ _ _ _ _

Industrial Economies

________ 1998_______________ 1999______________ 2000_______ 2001

The dollar showed particular strength last year
against the euro, the common currency of much of

N ote . Foreign currency units per dollar. Restated German mark is the
mark-dollar exchange rate rescaled by the official conversion factor between the
mark and the euro. Last observations are the average of trading days through
February 8, 2001.




Monetary Policy Report to the Congress

remained well below the 2 percent inflation target
ceiling, higher oil prices pushed the headline rate
above the ceiling for most of the year. Real GDP in
the euro area is estimated to have increased about
3 percent for 2000 as a whole, only slightly below
the rate of the previous year, although activity slowed
toward the end of the year. Growth was supported by
continued strong increases in investment spending.
Net exports made only a modest contribution to
growth, as rapid increases in exports were nearly
matched by robust imports. Overall activity was
sufficiently strong to lead to a further decline in the
average euro-area unemployment rate to below 9 per­
cent, a nearly 1 percentage point reduction for the
year.
The dollar rose about 12 percent against the Japa­
nese yen over the course of 2000, roughly reversing
the decline of the previous year. Early in the year, the
yen experienced periods of upward pressure on evi­
dence of a revival of activity in Japan. On several of
these occasions, the Bank of Japan made substantial
intervention sales of yen. By August, signs of recov­
ery were strong enough to convince the Bank of
Japan to end the zero interest rate policy that it had
maintained for nearly a year and a half, and its target
for the overnight rate was raised to 25 basis points.
Later in the year, evidence emerged suggesting that
the nascent recovery in economic activity was losing
steam, and in response the yen started to depreciate
sharply against the dollar.
For the year as a whole, Japanese real GDP is
estimated to have increased about 2 percent, a sub­
stantial improvement from the very small increase of
the previous year and the decline recorded in 1998.
Growth, which was concentrated in the first part of
the year, was led by private nonresidential invest­
ment. In contrast, residential investment slackened
as the effect of tax incentives waned. Consumption
rebounded early in the year from a sharp decline at
the end of 1999 but then stagnated, depressed in part
by record-high unemployment and concerns that on­
going corporate restructuring could lead to further
job losses. Public investment, which gave a major
boost to the economy in 1999, remained strong
through the first half of last year but then fell off
sharply, and for the year as a whole the fiscal stance
is estimated to have been somewhat contractionary.
Inflation was negative for the second consecutive
year, with the prices of both consumer goods and real
estate continuing to move lower.
The dollar appreciated 4 percent relative to the
Canadian dollar last year. Among the factors that
apparently contributed to the Canadian currency’s
weakness were declines in the prices of commodities



129

that Canada exports, such as metals and lumber, and
a perception by market participants of unfavorable
differentials in rates of return and economic growth
prospects in Canada relative to the United States. For
the year as a whole, real GDP growth in Canada is
estimated to have been only slightly below the strong
5 percent rate of 1999, although, as in most industrial
countries, there were signs that the pace of growth
was tailing off toward the end of the year. Domestic
demand continued to be robust, led by surging busi­
ness investment and solid personal consumption
increases. In the first part of the year, the sustained
rapid growth of the economy led Canadian monetary
authorities to become increasingly concerned with a
buildup of inflationary pressures, and the Bank of
Canada matched all of the Federal Reserve’s interest
rate increases in 2000, raising its policy rate by a total
of 100 basis points. By the end of the year, the core
inflation rate had risen to near the middle of the Bank
of Canada’s 1 percent to 3 percent target range, while
higher oil prices pushed the overall rate above the top
of the range. So far this year, the Bank of Canada has
only partially followed the Federal Reserve in lower­
ing interest rates, and the Canadian dollar has
remained little changed.
Emerging Market Economies
In emerging market economies, the average growth
rate of economic activity in 2000 remained near the
very strong 6 percent rate of the previous year. How­
ever, there was a notable and widespread slowing
near the end of the year, and results in a few indi­
vidual countries were much less favorable. Growth in
developing Asian economies slowed on average from
the torrid pace of the previous year, while average
growth in Latin America picked up somewhat.
No major developing country experienced default or
devaluation in 2000, but nonetheless, financial mar­
kets did undergo several periods of heightened
unrest during the year. In the spring, exchange rates
and equity prices weakened and risk spreads widened
in many emerging market economies at a time of a
general heightening of financial market volatility and
rising interest rates in industrial countries, as well as
increased political uncertainty in several developing
countries. After narrowing at mid-year, risk spreads
on emerging market economy debt again widened
later in the year, reflecting a general movement on
financial markets away from riskier assets, as well as
concerns that Argentina and Turkey might be facing
financial crises that could spread to other emerging
market economies. Risk spreads generally narrowed
in the early part of 2001.

130

Federal Reserve Bulletin □ March 2001

Among Latin American countries, Mexico’s per­
formance was noteworthy. Real GDP rose an esti­
mated 7 percent, an acceleration from the already
strong result of the previous year. Growth was
boosted by booming exports, especially to the United
States, favorable world oil prices, and a rebound in
domestic demand. In order to keep inflation on a
downward path in the face of surging domestic
demand, the Bank of Mexico tightened monetary
conditions six times last year, pushing up short-term
interest rates, and by the end of the year the rate of
consumer price inflation had moved below the 10 per­
cent inflation target. The run-up to the July presiden­
tial election generated some sporadic financial mar­
ket pressures, but these subsided in reaction to the
smooth transition to the new administration. Over the
course of the year, the risk spread on Mexican debt
declined on balance, probably reflecting a favorable
assessment by market participants of macroeconomic
developments and government policies, reinforced
by rating upgrades of Mexican debt. During 2000, the
peso depreciated slightly against the dollar, but by
less than the excess of Mexican over U.S. inflation.
Selected emerging markets
January 1998 = 100

---------------------Dollar exchange rates

Brazilian real

Argentine peso

Korean won

Bond spreads

Brazil

Argentina
Korea

N ote. The data are monthly. Bond spreads are the J.P. Morgan Emerging
Market Bond Index (stripped Brady-bond) spreads over U.S. Treasuries. Last
observations are the average of trading days through February 8, 2001.




Argentina encountered considerable financial dis­
tress last year. Low tax revenues due to continued
weak activity along with elevated political uncer­
tainty greatly heightened market concerns about the
ability of the country to fund its debt. Starting in
October, domestic interest rates and debt risk spreads
soared amid market speculation that the government
might lose access to credit markets and be forced to
abandon the exchange rate peg to the dollar. Finan­
cial markets began to recover after an announce­
ment in mid-November that an IMF-led international
financial support package was to be put in place.
Further improvement came in the wake of an official
announcement in December of a $40 billion support
package. The fall in U.S. short-term interest rates in
January eased pressure on Argentina’s dollar-linked
economy as well.
Late in the year, Brazilian financial markets
received some negative spillover from the financial
unrest in Argentina, but conditions did not approach
those prevailing during Brazil’s financial crisis of
early 1999. For 2000 as a whole, the Brazilian econ­
omy showed several favorable economic trends. Real
GDP growth increased to an estimated 4 percent after
being less than 1 percent the previous two years,
inflation continued to move lower, and short-term
interest rates declined.
Growth in Asian developing countries in 2000
slowed from the previous year, when they had still
been experiencing an exceptionally rapid bounceback
from the 1997-1998 financial crises experienced by
several countries in the region. In Korea, real GDP
growth last year is estimated to have been less than
half of the blistering 14 percent rate of 1999. Korean
exports, especially of high-tech products, started to
fade toward the end of 2000. Rapid export growth
had been a prominent feature of the recovery of
Korea and other Asian developing economies follow­
ing their financial crises. In addition, a sharp fall in
Korean equity prices over the course of the year, as
well as continued difficulties with the process of
financial and corporate sector restructuring, tended to
depress consumer and business confidence. These
developments contributed to the downward pressure
on the won seen near the end of the year. Elsewhere
in Asia, market concerns over heightened political
instability were a major factor behind financial pres­
sures last year in Indonesia, Thailand, and the Philip­
pines. In China, output continued to expand rapidly
in 2000, driven by a combination of surging exports
early in the year, sustained fiscal stimulus, and some
recovery in private consumption. In contrast, growth
in both Hong Kong and Taiwan slowed, especially in
the latter part of the year. In Taiwan, the exchange

Monetary Policy Report to the Congress

rate and stock prices both came under downward
pressure as a result of the slowdown in global elec­
tronics demand and apparent market concerns over
revelations of possible weaknesses in the banking
and corporate sectors.
Turkey’s financial markets came under severe
strain in late November as international investors
withdrew capital amid market worries about the
health of Turkey’s banks, the viability of the gov­
ernment’s reform program and its crawling peg




131

exchange rate regime, and the widening current
account deficit. The resulting liquidity shortage
caused short-term interest rates to spike up and led to
a substantial decline in foreign exchange reserves
held by the central bank. Markets stabilized some­
what after it was announced in December that Turkey
had been able to reach loan agreements with the IMF,
major international banks, and the World Bank in an
effort to provide liquidity and restore confidence in
the banking system.
□

132

Industrial Production and Capacity Utilization:
The 2000 Annual Revision
Carol Corrado, o f the Board’s Division o f Research
and Statistics, prepared this article. Matt Wilson pro­
vided research assistance.
In late 2000, the Board of Governors of the Federal
Reserve System published the annual revision of
its index of industrial production (IP) and related
measures of capacity and utilization for the period
January 1992 through October 2000 (chart 1). The
updated measures reflect the incorporation of newly
available, more comprehensive source data, the intro­
duction of new production series, and changes in
methods. For this revision, two new years (1997 and
1998) of comprehensive data on manufacturing out­
put became available; otherwise, the updating of the
data was typical of annual revisions.
According to the revised data, total industrial out­
put has increased, on average, 5.1 percent per year
since 1995, and industrial capacity has expanded
5.4 percent per year. These revised rates of increase
are more rapid than previously reported (table 1). The
rate of industrial capacity utilization—the ratio of
production to capacity—was little changed by the

revision for the third quarter of 2000 but was revised
up 0.6 percentage point, to 81.6 percent, for the
fourth quarter of 1999.
The overall picture of the industrial sector in recent
years is unchanged by the revision. An exceptionally
strong expansion of output in 1997 was followed
by a notably weaker performance in 1998: The
aftershocks stemming from economic turmoil in
Asia—weak export demand and heightened import
competition—sharply slowed the rise in manufactur­
ing IP excluding selected high-technology indus­
tries.1 Manufacturing IP picked up broadly in 1999,
and production in the high-tech sector accelerated
further in the first half of 2000. But output outside the
high-tech industries stagnated in 2000, a reflection of
renewed competition from abroad and some slacken­
ing in domestic demand; in the fourth quarter, total
industrial production fell at an annual rate of about
1 percent. (Summary data as of January 17, 2001, for
total industry and manufacturing are shown in appen­
dix tables A.l and A.2.)
Capacity utilization in manufacturing rose during
1997 and reached 83 percent in the fourth quarter of

N o t e . Charles Gilbert directed the 2000 annual revision and pre­
pared the revised estimates of industrial production; Norman Morin
prepared the revised measures of capacity and capacity utilization.
Other contributors to the revision and this article are Ana Aizcorbe,
William Cleveland, Mark Doms, Cynthia Bansak, and Susan Polatz.

1.
High-tech industries include the manufacturers of semiconduc­
tors and related electronic components (Standard Industrial Classifica­
tion [SIC] 3672-9), computers (SIC 357), and communications equip­
ment (SIC 366).

1.

Industrial production, capacity, and utilization
Ratio scale, 1992 output = 1 0 0

Percent o f capacity

Revised
Earlier
Capacity

Utilization

Production

N ote . The production indexes and utilization rates are seasonally adjusted.
All the revised measures extend through December 2000; the earlier measures
extend through October 2000.




133

1.

Revised growth rates of industrial production and capacity and the revised rate of capacity utilization, 1996-2000
Revised growth rate
(percent)
Item
■m a m m a
*

Production
Total industry ..................................
Manufacturing ............................
Excluding selected hightech industries ...............
Selected high-tech industries ...
Mining and utilities.....................
Capacity
Total industry ..................................
Manufacturing ............................
Excluding selected hightech industries ...............
Selected high-tech industries ...
Mining and utilities.....................
Capacity utilization
(percent, end o f period)
Total industry ..................................
Manufacturing ............................
Excluding selected hightech industries ...............
Selected high-tech industries . ..
Mining and utilities....................

Difference between revised and previous
(percentage points)

1999
pro­
portion

19962000
avg.

1996

1997

1998

1999

2000

19962000
avg.

100.0
88.4

5.1
5.6

5.6
6.3

7.2
8.0

3.2
4.0

5.1
5.6

4.2
4.1

80.6
7.8
11.6

2.3
42.0
1.2

3.2
41.0
1.4

5.4
35.7
1.9

1.2
37.2
-3.2

2.3
40.6
1.1
'SM S

100.0
90.0

5.4
6.0

5.4
6.1

5.9
6.5

6.5
7.2

81.1
8.9
10.0

2.8
42.0
.9

2.7
44.2
.8

3.6
40.3
1.3

100.0
90.0

82.1
81.3

82.8
81.9

81.1
8.9
10.0

81.2
81.7
88.7

81.8
83.2
89.5

1996

1997

1998

.4
.4

.3
.3

.5
.5

-.7
55.6
4.5

.6
-.5
.2

•2
1.9
.0

4.6
5.1

4.6
5.0

.4
.4

4.4
39.5
.5

2.1
37.8
.7

1.3
48.0
1.2

83.8
83.0

81.2
80.5

81.6
80.9

83.3
80.5
90.1

80.7
79.2
86.8

80.9
80.8
87.1

1999

2000

.3
.3

.9
.8

-.1
.0

.8
-.9
-.1

1.2
-6.7
.0

1.0
3.2
1.3

.5
3.4
-.6

-.1
-.1

.5
.5

.3
.2

.4
.4

.8
.8

.7
.7
.2

.1
-1.4
-.5

.5
2.4
.5

1.4
-8.7
-.2

.8
2.1
.2

.8
9.0
1.0

81.3
80.2

.2
.3

.2
.2

.2
.3

.2
.3

.6
.6

79.3
85.0
89.9

.2
-.2
.4

.1
.6
.7

.3.
-1.4
.1

.2
-.3
.3

.3
.3
1.2

\

.1 1
.2
.2
-1.0
.0

N ote. The 1996-2000 average growth rates are calculated as the average
annual percentage change in the seasonally adjusted index from the fourth
quarter of 1995 to the fourth quarter of 2000. Growth rates for years are
calculated from the fourth quarter of the previous year to the fourth quarter of
the year specified. The capacity utilization rates for years are for the last quarter
of the year.

The difference between revised and previous growth rates for 1996-2000 and
for the year 2000 are calculated from annualized growth rates through the third
quarter of 2000. The difference between revised and previous utilization rates
for 2000 use the third quarter of the year.
For the definition of high-tech industries, see text note 1.

the year. After that, the rate fell, on balance, and was
at 80.2 percent during the fourth quarter of 2000.
Within manufacturing, utilization in the advancedprocessing industries (which the revision modified to
exclude semiconductors, related electronic compo­
nents, and motor vehicle parts) declined, for the most
part, over that period. By contrast, the operating rate
for primary processors, after having fallen in 1998,
increased noticeably throughout 1999 and into 2000;
the rate rose above 86 percent in the second quarter
of 2000 for the first time since 1995 (chart 2). Since
mid-2000, however, the primary-processing utiliza-

tion rate has declined more than 5 percentage points;
the drop reflects cutbacks in the output of the metals,
textile, paper, and lumber industries, as well as an
easing in the pace of production of semiconductors
and related components.
After having fallen sharply between the fourth
quarters of 1997 and 1998, utilization rates in mining
and utilities reached 89.9 percent in the fourth quarter
of 2000, a rise of more than 3 percentage points.
Operating rates for energy producers were at elevated
levels at the end of last year: Capacity at utilities
expanded at a faster pace in 1999 and 2000 than it
did earlier in the 1990s, but on balance, production
advanced more rapidly than capacity during the
1990s and surged with an increase in demand begin­
ning in the middle of 2000.

2.

Primary-processing and advanced-processing utilization
rates, 1976-2000
Percent

Primary processing

Advanced processing




S u m m a r y o f t h e R e v is io n

The statistical revisions to the IP index are princi­
pally derived from the inclusion of information con­
tained in annual reports issued by the U.S. Census
Bureau: the 1997 Census of Manufactures, the 1998
Annual Survey of Manufactures, and selected 1999
Current Industrial Reports. Revised annual data
from the U.S. Geological Survey (USGS) on minerals

134

Federal Reserve Bulletin □ March 2001

(except fuels) for 1998 and new data for 1999 were
also introduced.
The capacity indexes and capacity utilization rates
now incorporate the preliminary results from the
Census Bureau’s 1999 Survey of Plant Capacity,
which covers manufacturing; the survey provided
data for the fourth quarter of the year. The revised
measures also include newly available 1999 data on
industrial capacity, expressed in physical units, from
the USGS, the Department of Energy (DOE), and
other organizations.
New production measures were introduced for
individual series in four industries: communications
equipment, computer and office equipment, drugs
and medicines, and bearings. Production for the
new series was measured using detailed infor­
mation on the major products of these industries.
The revision also incorporated improved source
data for three existing production series: elec­
tricity generation, electrical housewares, and truck
trailers.
Beginning with this revision, the weights used
to calculate the production and capacity aggregates
change every month rather than once a year. The
introduction of the refined aggregation method, which
began with data for 1992, had a small effect on the
intra-yearly changes in monthly IP.
Tables A.3 and A.4 show the revised rates of
growth of industrial production by market group and
by industry group for 1996 through 2000; tables A.5
and A.6 show the revised figures for capacity and
capacity utilization. For production and capacity, the
tables also show the difference between the revised
and earlier growth rates; for capacity utilization, the
difference between revised and previous rates for the
final quarter of the year are shown.
For most manufacturing industries, the annual
reports from the Census Bureau implied faster
increases in output in 1997 and 1998 than had pre­
viously been reported. Output also rose more rapidly
in 1999 because of upwardly revised monthly source
data. The textile mill products industry and the
industrial machinery and equipment industry, which
includes computers, are the only major industry
groups whose production in the third quarter of 2000
was lower than shown previously. Within the indus­
trial machinery and equipment group, the output of
the computer industry was lowered noticeably in
1998 because the new Census data were included.
The introduction of a new series that measures the
production of pharmaceuticals boosted the produc­
tion estimates for the chemical industry during 1999.
The output of the electrical machinery group, which
includes the communications equipment industry,



was revised upward for most years, in part because
of the introduction of a new series that explicitly
measures the equipment used for local-area computer
networks.
According to indicators from the Survey of Plant
Capacity, the factory operating rate was higher in the
fourth quarter of 1999 than previously estimated.
Using the revised production indexes and new infor­
mation on manufacturing capital spending, we esti­
mate that manufacturing capacity increased 5.1 per­
cent in 1999 and 5 percent in 2000. The previous
estimates had reported that it had slowed in 2000, to a
rate Vi percentage point less than its rate in 1999.
The revision modified the definitions of advancedprocessing and primary-processing industries to
reflect more accurately the distinction between indus­
tries that produce final products and those that pro­
duce goods for further processing. Specifically, the
measures for production, capacity, and capacity
utilization in primary processing now include the
series for semiconductors and related electronic com­
ponents (Standard Industrial Classification [SIC]
3672-9) and for motor vehicle parts (SIC 3714);
previously, these industries were included in the mea­
sures for advanced-processing industries.2 The new
utilization rate for primary-processing industries
averaged 82.2 percent between 1967 and 2000, and
the rate for advanced-processing industries averaged
80.6 percent. These long-term averages are about the
same as those for the previously published measures.
In more recent years, however, capacity utilization
rates for the modified aggregates differ noticeably
from the previously reported measures: The operat­
ing rate for advanced-processing industries in the
third quarter of 2000 was 80.1 percent, a level below
the long-term average and lower than the previ­
ously published rate based on the old definition.
For the same period, the operating rate for primaryprocessing industries was 85.4 percent, a level above
the long-term average and higher than previously
reported.

TECHNICAL ASPECTS OF THE REVISION

As discussed earlier, the annual revision incorporated
more-up-to-date results from the 1997 Census of
Manufactures, the 1998 Annual Survey of Manu­
factures, the 1999 Survey of Plant Capacity, and
2. The modified utilization rates for primary-processing and
advanced-processing industries were recomputed from January 1967
on; the results were spliced to the earlier aggregates from January
1948 to December 1966. The modified production and capacity
indexes for these groups begin with data for January 1967.

Industrial Production and Capacity Utilization: The 2000 Annual Revision

------------------------------------------------------------------

Data Availability and Publication Changes

Files containing the revised data and the text and tables
from the G.17 statistical release “Industrial Production
and Capacity Utilization” are available on the Board’s
web site (www.federalreserve.gov/releases/gl7) and on
diskettes from Publications Services (telephone 202-4523245). Further information on these revisions is available
from the Board’s Industrial Output Section (telephone
202-452-3197).
A document with printed tables of the revised esti­
mates of series shown in the G.17 release is available
upon request to the Industrial Output Section, Mail
Stop 82, Division of Research and Statistics, Board of
Governors of the Federal Reserve System, Washing­
ton, DC 20551.
Beginning with data for January 2001, the tables in the
monthly statistical release on industrial production and
capacity utilization have been redesigned. The data as
previously shown are still available on the Board’s web
site. For further information, or comments, contact the
Board’s Industrial Output Section (telephone 202-4523197) or e-mail Charles Gilbert (cgilbert@frb.gov).

other annual industry reports on production in 1999
and on capacity in 1999 and 2000. The value-added
weights used in aggregating the production and
capacity indexes to total industry or other groups
were also updated, along with the seasonal factors
and source data used to compile the monthly produc­
tion indexes (see box “Data Availability and Publica­
tion Changes” ).
The Census Bureau reported its 1998 data on
industry output according to the new North American
Industrial Classification System, or NAICS. The Cen­
sus reported data for 1997 both on the new NAICS
and on the old, 1987 SIC system. Before being
included in the IP index, the manufacturing data for
1998 were recategorized by the Federal Reserve
according to the SIC system. The Census Bureau
provided the Federal Reserve with industry utiliza­
tion rates on the SIC system from the Survey of Plant
Capacity.3

M easu rem en t

o f p r o d u c t io n

Individual IP series are derived from (1) annual
indexes of industry output that are calculated using

3.
The current and historical industrial production and capacity
utilization statistics will be categorized according to the NAICS for
the 2001 revision.




135

comprehensive information sources and (2) produc­
tion indicators that are available for inclusion in the
monthly index within the regular four-month report­
ing window. The annual index determines the trend
for a series from one year to the next, and the
production indicator determines the monthly changes
for a series within each year. Each series is seasonally
adjusted, and the contribution of the change in an IP
series for an industry to the monthly change in the
overall IP index is based on the value added by that
industry.
The annual indexes for individual IP series are
derived from detailed industry data. For each four­
digit SIC industry in manufacturing, an annual chaintype measure of the real gross output of an industry is
compiled. The value of the production is represented
by Census data on the industry’s value added plus its
cost of materials; the real output measure is obtained
by deflating the value of production by an annually
weighted chain-type price index compiled from
detailed information on the composition of the indus­
try’s products. Most of these price indexes are
obtained from the Bureau of Economic Analysis
(BEA). Because an individual IP series may represent
a combination of several four-digit SIC industries,
the annual indexes for many manufacturing IP series
are constructed from a number of industry gross out­
put measures; for these indexes, the contribution of
each component industry to the annual index is based
on the value added by that industry.
For many IP series, the production indicators are
compiled from monthly (or quarterly) product data.
The indicator may measure the output of a product in
physical terms (for example, tons of portland cement
or barrels of distillate fuel oil); or the indicator may
be data on the output of several types of a product
(for example, unit counts of assemblies of crawlers,
wheel loaders, skid steer loaders, and the like), com­
bined with fixed weights. Alternatively, for selected
series, the indicator is a chain-type quantity index
that is compiled each month (or quarter) using very
detailed data on the prices and quantities of specific
products produced by an industry. This method is
used for the monthly IP indexes for semiconductors,
computers, autos, light trucks, and with this revision,
pharmaceuticals and a component of communica­
tions equipment.4
4.
The method was introduced for the monthly measurement of
semiconductors in the 1998 annual revision and for computers and
motor vehicles in the 1999 annual revision. For semiconductors and
computers, the method consists o f (1) estimating the value o f U.S.
production for the industry from monthly and quarterly data that
contain highly detailed unit counts and values of individual products
produced by industry and (2) deflating the value of production by a

136

Federal Reserve Bulletin □ March 2001

For non-energy mining, most annual and monthly
indexes are developed from product data issued by
the USGS; the IP series on fuels and electric and gas
utilities are developed from comprehensive monthly
and annual data from the DOE. For most IP series
in these groups, the monthly data are measures of a
product in physical terms, such as barrels of motor
gasoline; for other series, the indicator is more com­
plex. For example, coal production is measured using
the tonnage output of four geographic regions,
weighted by the Btu content of the variety mined in
each region.5
When high-frequency data on the physical quantity
of production are not available, the Federal Reserve
uses monthly data on the inputs to production, either
the Bureau of Labor Statistics (BLS) monthly data on
production-worker hours or the Federal Reserve’s
monthly data on electric power use, as the production
indicator. The production indicator is combined with
a productivity trend calculated from the annual out­
put index to obtain the monthly IP index.
With the changes introduced in this revision, the
proportion of the IP index that is measured using
product data that are available for inclusion in the
monthly index within the regular four-month report­
ing window has increased by 3 percentage points, to
46 percent in value-added terms in 1999.6 Complete
information on the sources used to compile the pro­
duction indicator for each individual IP index can be
found on the Board’s web site.7

CHANGES TO INDIVIDUAL PRODUCTION SERIES

The revision introduced improved production indica­
tors for several industries. The production measure
for telephone and telegraph apparatus (SIC 3661)
was revised as an aggregate of two components: a
series for routers, switches, and hubs—equipment
chain-type matched-model price index constructed, for the most part,
from the same data.
For motor vehicles, detailed monthly data on the production of each
vehicle model are aggregated using annual prices as weights. For a
few other series in the IP index, the production indicator is obtained
by deflating detailed data on the value of production or shipments
from a trade source by a corresponding BLS producer price index.
5. This method was introduced in the 1998 annual revision.
6. For a review and documentation of the timing of the receipt of
the source data for monthly IP over the course of the regular fourmonth reporting period, see Charles Gilbert, Norman Morin, and
Richard Raddock, “Industrial Production and Capacity Utilization:
A Revision and Recent Developments,” Federal Reserve Bulletin,
vol. 86 (March 2000), p. 193.
7. See table 1, “Industry structure o f industrial production: classi­
fication, value-added weights, and description of series,” on
the “About” page o f the Board’s web site for the G.17 release:
www.federalreserve.gov/releases/gl7/About.htm.




used for local-area computer networks (LANs)—and
a series for all other telephone and telegraph appara­
tus. Production of LAN equipment is measured as a
chain-type index calculated from detailed quarterly
data; see box “Technical Note on the Measurement
of LAN Equipment” for an explanation of how the
series was derived. The monthly production indicator
for the other component of telephone and telegraph
apparatus is production-worker hours.
The revised index for the production of computer
and office equipment (SIC 357) is an aggregate of
three components: computers, computer printers, and
other computer and office equipment. The index for
the output of computers is based on the data that were
previously used to measure the production of com­
puter and office equipment as a whole; these data are
highly detailed quarterly estimates from Dataquest on
the revenue and unit count of sales of PCs, notebook
computers, and workstations/servers.
The revision introduced a new index for computer
printers based on similar data—that is, highly detailed
quarterly figures on the revenue and unit count of
sales of computer printers, also from Dataquest. The
index for the output of other computer and office
equipment is represented by a combination of the
data on computers and computer printers.
This revision included a new method for estimat­
ing the production of pharmaceutical preparations.
Accordingly, the previous production measure for
drugs and medicines (SIC 283) was revised and is
now an aggregate of two components: pharmaceuti­
cal preparations (SIC 2834) and other drugs and
medicines (SIC 2833,5,6,9). The series for other
drugs and medicines uses production-worker hours as
the production indicator.
The new production index for pharmaceutical
preparations is a monthly real output measure devel­
oped from detailed data on the prices and quantities
of shipments to dispensers of prescription drugs in
the United States from IMS-Health. These data
include monthly dollar shipments and chain-type
price indexes for about 500 product classes that IMSHealth constructed using its proprietary, highly
detailed, comprehensive database on pharmaceutical
products. The Federal Reserve used the measures
developed by IMS-Health, information from the Cen­
sus Bureau’s Current Industrial Reports, and other
sources to create a chain-type quantity index for the
production of the pharmaceutical preparations indus­
try as a whole.
The production estimates for two other industries
were improved by obtaining and incorporating new
source data. The production of ball and roller bear­
ings (SIC 3562) is measured as a weighted combina­

Industrial Production and Capacity Utilization: The 2000 Annual Revision

tion of the unit count of four classes of bearings (ball,
mounted, tapered, and other roller bearings); the mea­
sure was developed from data provided by the Ameri­
can Bearing Manufacturers Association. The produc­
tion of electrical housewares (SIC 3634) is measured
using data provided by the Association of Home
Appliance Manufacturers. Previously, these series
were derived from monthly input data.
The production index for electric power generation
(SIC 491) has been expanded to include electricity
generation by plants owned by nonregulated busi­
nesses that supply electric power to the public. Pre­
viously, the monthly IP series for electricity gener­
ation was measured using monthly DOE data on
electric power generation by utilities, which the DOE
defines as the output of regulated entities. These data
are still used, but the revised series combines them
with estimates of the power generated by nonindus­
trial nonregulated businesses. The principal source
data for these estimates are new monthly measures of
electric power generation issued by the DOE begin­
ning in January 2000.8 Estimates for earlier years
were developed principally from annual data, also
from the DOE.
Last, the source data for three other physical prod­
uct series have changed. For two series—fabric fin­
ishing (SIC 226) and metal cans (SIC 341)—the
sources switched to reporting data quarterly rather
than monthly. The source for the production of truck
trailers (SIC 3715) from 1998 on is America’s Com­
mercial Transportation Research.

AGGREGATION AND WEIGHTS

This revision introduced a refinement to the method
used for aggregating the individual IP indexes. Previ­
ously, the monthly industrial production aggregates
from 1977 on were annually weighted chain-type
indexes, and the weights were updated in the middle
of the year. With this revision, the weights change
monthly rather than at midyear for the period since

8.
Beginning with data for January 2000, the DOE has provided
monthly measures o f electric power generation by “non-utility” pro­
ducers; these producers are composed of industrial plants generating
power for their own use (co-generation) and nonindustrial nonregu­
lated plants generating power for distribution to the public. The
Federal Reserve uses the new DOE series after deducting an estimate
o f industrial co-generation.
Because the power generation by nonregulated firms is distributed
by utilities that are regulated entities, the source data for the IP series
on electric utility sales, also from the DOE, accurately represents the
provision o f electric services to households and businesses. The IP
series that measures the generation and distribution o f electric power
to the public is still called “the output of utilities.”




137

July 1992. This change affects industry weights only
within each year, as well as the monthly capacity
and capacity utilization rate aggregates; the proce­
dure used to derive capacity and utilization aggre­
gates, given an industrial production aggregate, is
unchanged.9
The weights for the aggregation of IP and capacity
utilization are expressed as unit value added (a
“price” ), and are derived from annual estimates of
industry value added. New information on industry
value added was used to update and extrapolate the
annual estimates of unit value added. Reports from
the 1997 Census of Manufactures and the 1998
Annual Survey of Manufactures, as well as revenue
and expense data reported by the DOE and the
American Gas Association, provided industry valueadded data for manufacturing and utilities through
1998. The latest value-added data for mining came
from the Census of Mineral Industries reports for
1997. Generally, the unit value-added measures track
broad changes in related producer price indexes. The
weights required for aggregating IP in the most recent
period are estimated from available data on producer
prices through October 2000. Table A.7 reports the
annual value-added proportions incorporated in the
IP index from 1992 on.
With this revision, the annual unit value-added
measures are linearly interpolated to the monthly
frequency, and the IP index becomes a chain-type
index with monthly weights.10 As with the earlier
formulation, the percentage change in IP can be
considered as the value-added weighted sum of the
percentage changes in its components; consequently,
in the monthly statistical release, the value-added
proportion for each series for the most recent full
year of data is shown along with the series. To assist
users with calculations, the Federal Reserve’s web
site provides supplemental monthly statistics that
represent the exact proportionate contribution of a
monthly change in a component index to the monthly
change in the total index.1
1
9. See Carol Corrado, Charles Gilbert, and Richard Raddock,
“Industrial Production and Capacity Utilization: Historical Revision
and Recent Developments,” Federal Reserve Bulletin, vol. 83 (Febru­
ary 1997), pp. 67-92.
10. Specifically, the change in IP for a month is the geometric
mean of the change in the aggregate industrial output computed using
current month weights and the change computed using weights for the
previous month; the formula for a monthly IP aggregate is given by

^ ^mPm- 1
H*m-

1

^ ^m P m
m-lPm

where pm denotes the monthly unit value added for month m.
11. For the relative weights, see the Board’s web site for the G.17
release: www.federalreserve.gov/releases/gl7/ipdisk/ipweights.sa/.

138

Federal Reserve Bulletin □ March 2001

Technical Note on the Measurement of LAN Equipment
Equipment for local-area computer networks (LANs) con­
sists of routers, switches, and hubs. These devices direct
traffic among computers and make possible e-mail transmis­
sion, Internet browsing, and file sharing. Like many hightechnology products, LAN devices have become faster and
more sophisticated in recent years. For instance, in 1995,
Ethernet switches operating at 10 megabits per second
dominated the market; last year, the two most popular
switches operated at rates of 100 megabits and 1,000 mega­
bits per second.
Statistical information on LAN equipment is available
from the Census Bureau’s Current Industrial Reports and
from reports issued by Dataquest, a private company. The
new IP index for LAN equipment production is compiled
from these sources and from research conducted at the
Federal Reserve by Mark Doms and Christopher Forman,
who developed annual quality-adjusted price indexes for
routers and switches using hedonic techniques.1

Price Indexes fo r Routers, Switches,
and Total LAN Equipment
Hedonic methods are a tool used to develop price indexes
for goods whose characteristics change rapidly.2 Traditional
methods (the calculation of matched-model price indexes)
may be used to measure price change for a high-technology
good, but highly detailed information on distinct varieties
of the good are needed to capture quality change.3 For
routers and switches, such data are not available; there­
fore, price indexes have been produced using hedonic
techniques.
Because Cisco is the dominant firm in the router market,
the data used in the hedonic regressions for routers came
from Cisco product catalogs from 1995 to 1999. More than
400 observations were used, and the regressions controlled
for about twenty characteristics. Separate models for four
classes of routers were estimated; the four price indexes
were aggregated using annual revenue data to obtain an
annually weighted chain-type price index for all routers.
Router prices are estimated to have fallen at an average
annual rate of almost 14 percent since 1995 (table A).
However, the price changes for each router class exhibited
N ote . Mark Doms constructed the new series and developed the material
reported in this note.
1. Mark Doms and Christopher Forman, “Prices for Local Area Network
Equipment” (paper presented at the Brookings Workshop on Communica­
tions Output and Productivity, Washington, D.C., February 23, 2001).
2. See J. Steven Landefeld and Bruce T. Grimm, “A Note on the Impact of
Hedonics and Computers on Real GDP,” Survey o f Current Business, vol. 80
(December 2000), pp. 17-22, and the references contained therein.
3. Ana Aizcorbe, Carol Corrado, and Mark Doms, “Constructing Price
and Quantity Indexes for High-Technology Goods” (paper presented at the
CRIW-NBER Summer Institute 2000 Workshop on Price, Output, and Pro­
ductivity Measurement, Cambridge, Mass., July 31, 2000).




A.

Average annual price change, by router type, 1995-99
Router type

Branch................................................................................
Midrange ...........................................................................

Price change
-13.6
-24.7
-19.4
3.2
-16.1

Source . See note 1.

substantial variation that reflected, in part, the degree of
actual or potential competition in the four markets.4
A similar exercise was conducted for switches. The data
for the hedonic regressions came from Datapro, a private
source that produces regular reports evaluating the perfor­
mance of different varieties of these devices. More than
370 observations from 1996 to 2000 were used. The results
show that prices for switches have fallen at an average
annual rate of nearly 21 percent during this period. The
Doms-Forman price indexes for routers and switches were
combined with price measures for hubs developed from
Dataquest data to obtain an annually weighted chain-type
price index for total LAN equipment. The index shows that,
between 1995 and 1999, prices for LAN equipment have
fallen an average of 18 percent per year.

Production o f LAN Equipment
Estimates of the annual value of U.S.-produced routers,
switches, and hubs were developed from 1992 on. The
estimates for the total value of LAN equipment were
obtained principally from the Census data, which are annual
and cover activity in the United States. The Dataquest data,
which are available annually from 1993 and cover activity
in world markets, contain statistics on the three types of
LAN equipment. These data were used in conjunction with
the aggregate Census data to develop separate annual fig­
ures from 1992 on for routers, switches, and hubs.
The value of the production of LAN equipment increased
rapidly in the 1990s, although the pace has moderated in
recent years (chart A). The value of U.S.-produced LAN
equipment rose at an annual rate of 37 percent between
1992 and 1999, with especially striking increases for routers
and switches (chart B). Though switches did not enter the
market until 1993, by 1999 they made up the largest propor­
tion of total domestic production of LAN equipment. When
the LAN equipment price index is combined with these
estimates of the value of LAN equipment production, the
results show that real output increased at an average annual
rate of more than 50 percent for 1995-99.
4. See Doms and Forman, “Prices for Local Area Network Equipment.”

Industrial Production and Capacity Utilization: The 2000 Annual Revision

139

Technical Note on the Measurement of LAN Equipment—Continued
A. Production of LAN equipment, 1992-2000

B. U.S. production of LAN equipment, 1992 and 1999
Billions of dollars

□
■

Rest o f world
United States

Billions of dollars

25
—

□ Switches
H Routers
■ Hubs

-----------------------

—

15

20

1
5

—

— 10
-

10

5

1992

1994

1996

1998

2000

1992__________________________ 1999

e. Estimated.

Table B shows the annual index of LAN equipment pro­
duction, as well as the annual LAN price index and the
annual value of LAN output. The annual price measures
for 1992-94 were obtained by an extension of the DomsForman price indexes back to 1992 based on their relation­
ship to price measures reported in the Dataquest data and on
estimated trends.
The new IP index for LAN equipment is derived from
the annual production index and quarterly data from the
Dataquest reports. The Dataquest reports provide figures
for the world revenue and unit sales count of twenty-five
classes of routers, switches, and hubs beginning in the first
quarter of 1996 on. The Dataquest data are converted to
quarterly estimates of U.S. real output in three steps. First,
the annual estimates of nominal U.S. production are interpo­
lated and extrapolated using the Dataquest quarterly reve­
nue data. Second, the Doms-Forman annual price indexes
are interpolated and extrapolated using the quarterly price
information reported by Dataquest. For each class of router,
an average selling price is used; for switches, the average
price per port is used; and for hubs, a price measure is
developed from the five types of these devices reported in
the Dataquest data. Third, each estimated nominal value of
US. production of routers, switches, and hubs is deflated
by its price indexes, and the three real output measures are
aggregated to obtain a quarterly chain-type real output
index for LAN equipment.
The new quarterly IP index for LAN equipment is shown
in table B. The new series is not published in the monthly
statistical release, but the index is updated on an ongoing
basis and included in the broader aggregate, the IP index for
communications equipment (SIC 366). LAN equipment
accounted for 18 percent of the value of the output of the
communications equipment industry in 1999. Had the pre­
vious methods for measuring LAN equipment been used,




the IP index for communications equipment would have
increased at an average annual rate of about 13 percent for
1995-99, rather than at the nearly 19 percent now reported.

B.

U.S. LAN equipment, 1992-2000
Price
index

Value of
production1

100.000
190.706
298.751
603.748

100.000
83.547
74.236
62.189

1,684.8
2,684.4
3,736.5
6,325.8

................................
................................
................................
................................

951.649
1,605.151
2,478.863
3,192.484

57.190
47.628
34.352
28.131

9,169.4
12,880.1
14,346.5
15,130.7

Quarterly estimates3
96:1 .................................
9 6 :2 .................................
9 6 :3 ..................................
9 6 :4 ..................................

100.000
114.483
129.172
149.434

100.000
98.989
93.771
86.422

7,911.2
8,966.1
9,583.2
10,217.1

9 7 :1 .................................
9 7 :2 .................................
9 7 :3 .................................
9 7 :4 .................................

162.075
184.893
225.762
259.174

84.049
79.754
77.645
74.184

10,776.9
11,665.6
13,867.6
15,210.3

9 8 :1 .................................
9 8 :2 .................................
9 8 :3 .................................
9 8 :4 .................................

291.332
328.857
332.261
324.278

62.847
59.134
53.620
52.323

14,485.4
15,384.2
14,093.5
13,422.9

9 9 :1 .................................
9 9 :2 .................................
9 9 :3 .................................
9 9 :4 .................................

419.177
423.775
400.055
394.040

48.654
47.116
47.017
43.964

16,137.0
15,797.3
14,882.2
13,706.2

0 0 :1 .................................
0 0 :2 .................................
0 0 :3 .................................

451.754
500.061
608.214

43.502
41.755
39.679

15,547.4
16,517.5
19,094.6

Period
Annual estimates2
1992 ................................
1993 ................................
1994 ................................
1995 ................................
1996
1997
1998
1999

Production
index

1. Billions of dollars.
2. Indexes are 1992 = 100.
3. Indexes are 1996:Q1 = 100.

140

Federal Reserve Bulletin □ March 2001

REVISED MONTHLY DATA
The product data that are used to measure the
monthly movements of many IP indexes have been
updated to capture data that became available after
the closing of the regular four-month reporting win­
dow. The input measures were also updated to incor­
porate revised data on monthly production-worker
hours, based on the BLS benchmark of employment
to March 1999 comprehensive measures, and revised
data on monthly electric power use since 1996. Late
reports of electric power data for 1999 resulted in a
large upward revision for that year; revisions to data
for earlier years were small (table A.8).
Seasonal factors for all series were re-estimated
using data that extended into 2000. Factors for
production-worker hours, which adjust for timing,
holiday, and monthly seasonal patterns, were updated
with data through October 2000. Factors for the
electric power series, which are developed using
multivariate methods, were re-estimated with data
through May 2000. The updated factors for the
monthly (and quarterly) physical product series,
which include adjustments for holiday and workday
patterns, used data through at least June 2000.1
2

M easu rem e nt

of

Ca p a c it y

The individual capacity indexes for a year are derived
from (1) preliminary, implied end-of-year indexes
of capacity obtained by dividing a production index
for an industry by a corresponding utilization rate
obtained from a survey and (2) additional measures
that, for most industries, are economic determinants
of an industry’s annual capacity growth. The capacity
indexes, like the IP indexes, are expressed as percent­
ages of production in 1992.
Once the preliminary, implied capacity indexes
are calculated, they are related to the additional mea­
sures in a regression model. The final capacity
indexes for a year are derived from the fitted values
of these regressions. The preliminary, implied capac­
ity indexes thus give the general level and trend of
12.
Seasonal factors for motor vehicle assemblies are updated
twice each year and reported on the Board’s web site:
www.federalreserve.gov/releases/gl7/mvsf.htm




the individual capacity estimates over a period of
years, and the additional measures determine the
annual changes from one year to the next. For most
manufacturing industries, estimates of industry capi­
tal input and a variable related to the average age of
the industry’s capital stock are used as the additional
measures.13 For mining, utilities, and selected manu­
facturing industries, measures of physical capacity
are available and are used to determine the final
capacity indexes.14
The capital input figures are estimates of the flow
of services derived from an industry’s net stocks of
physical assets; the net stocks are developed princi­
pally from investment data reported in the Annual
Surveys of Manufactures and Censuses of Manu­
factures. Also used are estimates of business invest­
ment and price deflators by asset type, as well as the
composition of an industry’s capital spending by
asset type, all from the BEA.
The information on capital spending by manufac­
turing industries in the 1997 and 1998 Census reports
indicated a higher level of investment than previously
estimated by the Federal Reserve. The higher level of
spending, in conjunction with indicators of the rate
of change in manufacturing capital spending in 1999
and 2000, suggested that capital input rose at a mod­
erately stronger rate after 1996 than previously esti­
mated. These results were generally consistent with
the trends in capacity implied by the upwardly
revised estimates of production and the new survey
data on utilization rates.
Measures of capacity in physical terms for mining,
utilities, and selected manufacturing industries were
updated with revised data for 1999 and with data for
2000 newly available since the midyear capacity
update issued in June 2000. On balance, the capacity
indexes and capacity utilization rates for these indus­
tries were changed little by the revision.
□

13. A fuller description o f the models that are used to develop the
Federal Reserve’s capacity estimates was reported in “Industrial
Production and Capacity Utilization: A Revision and Recent D evelop­
ments,” pp. 194-97.
14. The industry structure and documentation of the sources used
to compile each individual capacity index can be found in table 3,
“Industry structure o f capacity and capacity utilization: classification,
value-added weights, and description of series,” on the “About” page
of the Board’s web site for the G.17 release: www.federalreserve.gov/
releases/g 17/About.htm.

Appendix tables begin on page 141.

Industrial Production and Capacity Utilization: The 2000 Annual Revision

A p p e n d ix A: S u m m a r y Ta b l e s B a s e d
A .I .

o n th e

141

G. 17 R e l e a s e , Ja n u a r y 17, 2001

R ev ised data for industrial production, capacity, and u tilization for total industry, 1 9 8 7 -2 0 0 0
Seasonally adjusted data except as noted
Quarter
Year

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.
1

2

3

4

Annual
avg.1

Industrial production (percentage change)
1987 .............
1988 .............
1989 .............
1990 .............
1 9 9 1 .............
1992 .............
1993 .............
1994 .............
1995 .............
1996 .............
1997 .............
1998 .............
1999 .............
2000 .............

-.6
.1
.6
-.5
-.5
.1
.4
.2
.6
-.2
.5
.4
.6
.5

1.2
.3
-.8
.5
-.8
.5
.5
.3
-.1
1.1
1.0
.0
.3
.5

.4
.0
.9
.5
-.9
.9
.2
.8
.2
-.1
.2
.3
.7
.7

.4
.6
.2
-.6
.3
.7
.3
.5
-.2
1.1
.6
.5
.1
.7

.4
.1
-.6
.4
.8
.3
-.5
.8
.4
.8
.3
.4
.7
.7

.9
.1
- .2
.0
1.2
-.2
.3
.4
.4
.8
.6
-.7
.2
.5

.6
.7
-1 .0
.0
.1
.7
.2
.6
-.4
.0
.7
-.1
.8
-.2

.1
.5
.4
.2
.1
-.3
-.2
.3
1.3
.6
.9
2.1
.4
.7

-.1
-.4
-.2
.1
1.0
.4
1.1
.1
.6
.5
.6
-.3
.1
.2

1.4
.3
-.5
-.6
-.1
.7
.3
.5
-.4
.0
.6
.5
.8
-.3

.3
.8
.4
-1.3
-.1
.5
.4
.7
.3
1.0
.6
-.4
.3
-.3

.6
.5
.5
-.6
-.6
.0
.8
1.0
.1
.4
.3
.1
.7
-.6

4.2
3.2
3.8
2.0
-8.3
1.0
3.8
5.5
6.0
2.8
7.6
3.6
3.9
6.7

6.7
3.1
.5
.6
1.5
6.5
1.5
7.7
1.1
9.2
6.1
3.0
4.9
7.9

5.6
3.9
-4 .4
1.0
6.2
2.4
1.9
5.8
4.4
5.4
7.9
3.4
5.8
3.5

7.1
3.6
-.1
-5.8
1.1
5.0
6.2
6.3
2.9
5.3
7.3
2.9
5.7
-1.1

4.6
4.5
1.8
-.2
-2 .0
3.1
3.5
5.4
4.8
4.6
6.8
4.9
4.2
5.7

95.3
98.8
98.6
97.7
98.1
101.8
104.9
111.5
115.7
122.4
131.1
135.0
141.9
148.1

95.9
99.3
99.0
97.2
97.5
101.8
105.7
112.6
115.9
122.9
131.5
135.1
142.8
147.3

91.0
96.1
99.6
99.1
95.9
98.2
102.6
106.4
113.3
116.4
124.4
132.1
136.5
144.4

92.5
96.9
99.7
99.2
96.2
99.8
102.9
108.4
113.6
119.0
126.3
133.1
138.1
147.1

93.8
97.8
98.6
99.5
97.7
100.4
103.4
109.9
114.8
120.6
128.7
134.2
140.1
148.4

95.4
98.7
98.6
98.0
98.0
101.6
105.0
111.6
115.6
122.2
131.0
135.2
142.1
148.0

93.2
97.4
99.1
98.9
97.0
100.0
103.5
109.1
114.3
119.6
127.7
134.0 I
139.6
147.5

115.1
116.5
118.8
121.0
123.0
125.6
128.5
133.2
140.0
147.5
156.2
166.5
174.1
182.1

115.2
116.7
119.0
121.2
123.2
125.8
128.8
133.7
140.6
148.1
157.1
167.2
174.8
182.8

114.1
115.5
117.0
119.3
121.6
123.6
126.3
129.4
134.7
141.9
149.4
158.9
168.6
176.1

114.4
115.8
117.6
119.9
122.1
124.3
126.9
130.5
136.4
143.8
151.5
161.6
170.5
178.1

114.7
116.2
118.2
120.4
122.6
124.9
127.7
131.8
138.2
145.6
153.8
164.2
172.3
180.1

115.1
116.5
118.8
121.0
123.0
125.6
128.5
133.2
140.0
147.5
156.2
166.5
174.1
182.1

114.6
116.0
117.9
120.2
122.3
124.6 1
127.3
131.2
137.3
144.7
152.7
162.8
171.4
179.1

82.8
84.8
83.0
80.8
79.8
81.0
81.6
83.7
82.7
83.0
83.9
81.1
81.5
81.4

83.2
85.1
83.2
80.2
79.2
80.9
82.1
84.3
82.4
83.0
83.7
80.8
81.7
80.6

79.8
83.3
85.1
83.0
78.9
79.5
81.2
82.2
84.1
82.1
83.3
83.2
81.0
82.0

80.8
83.7
84.8
82.8
78.8
80.3
81.1
83.1
83.3
82.8
83.3
82.4
81.0
82.6

81.7
84.2
83.4
82.6
79.7
80.3
81.0
83.4
83.1
82.8
83.7
81.8
81.3
82.4

82.9
84.7
83.0
81.0
79.6
80.9
81.7
83.8
82.6
82.8
83.8
81.2
81.6
81.3

81.3
84.0
84.1
82.3
79.3
80.2
81.3
83.1
83.3
82.6
83.5
82.1
81.2
82.1

Industrial production (index)
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000

.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............

90.2
95.9
99.8
98.6
96.7
97.6
102.2
105.9
113.3
115.6
123.5
132.0
135.9
143.6

91.2
96.2
99.0
99.1
95.9
98.1
102.7
106.2
113.2
116.9
124.8
132.0
136.3
144.3

91.6
96.3
100.0
99.6
95.0
99.0
102.9
107.1
113.4
116.8
125.0
132.4
137.3
145.2

92.0
96.8
100.2
99.0
95.4
99.7
103.2
107.6
113.1
118.1
125.8
133.1
137.4
146.3

92.4
96.9
99.6
99.4
96.1
100.0
102.7
108.5
113.6
119.0
126.2
133.6
138.4
147.2

93.2
97.0
99.4
99.3
97.2
99.7
102.9
109.0
114.0
120.0
126.9
132.7
138.6
147.9

93.7
97.6
98.4
99.3
97.3
100.4
103.2
109.6
113.6
119.9
127.7
132.5
139.7
147.6

93.8
98.1
98.8
99.5
97.4
100.2
103.0
110.0
115.1
120.6
128.8
135.3
140.3
148.6

93.7
97.8
98.6
99.6
98.4
100.5
104.1
110.2
115.7
121.2
129.5
134.9
140.4
149.0

95.0
98.0
98.2
99.1
98.3
101.3
104.4
110.7
115.3
121.2
130.3
135.5
141.5
148.5

Capacity (index)
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000

.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............
.............

114.0
115.3
116.8
119.2
121.4
123.4
126.0
129.1
134.2
141.2
148.8
158.0
167.9
175.4

114.1
115.5
117.0
119.3
121.6
123.6
126.3
129.4
134.7
141.9
149.4
158.9
168.6
176.1

114.2
115.6
117.2
119.5
121.7
123.8
126.5
129.7
135.3
142.5
150.1
159.8
169.2
176.7

114.3
115.7
117.4
119.7
121.9
124.1
126.7
130.1
135.8
143.1
150.8
160.7
169.9
177.4

114.4
115.8
117.6
119.9
122.1
124.3
126.9
130.5
136.4
143.8
151.5
161.6
170.5
178.1

114.5
115.9
117.8
120.1
122.2
124.5
127.2
130.9
137.0
144.4
152.3
162.5
171.1
178.7

114.6
116.0
118.0
120.2
122.4
124.7
127.4
131.3
137.6
145.0
153.0
163.4
171.7
179.4

114.7
116.2
118.2
120.4
122.6
124.9
127.7
131.8
138.2
145.6
153.8
164.2
172.3
180.1

114.9
116.3
118.4
120.6
122.7
125.2
127.9
132.2
138.8
146.2
154.6
165.0
172.9
180.7

115.0
116.4
118.6
120.8
122.9
125.4
128.2
132.7
139.4
146.9
155.4
165.7
173.5
181.4

Utilization (level, percent)
1987 .............
1988 .............
1989 .............
1990 .............
1 9 9 1 .............
1992 .............
1993 .............
1994 .............
1995 .............
1996 .............
1997 .............
1998 .............
1999 .............
2000 .............

79.1
83.2
85.4
82.7
79.6
79.1
81.0
82.1
84.4
81.9
83.0
83.5
81.0
81.9

80.0
83.4
84.6
83.0
78.9
79.4
81.3
82.1
84.0
82.4
83.5
83.1
80.9
82.0

80.2
83.3
85.3
83.3
78.1
79.9
81.3
82.5
83.8
82.0
83.3
82.9
81.1
82.2

80.5
83.7
85.3
82.7
78.2
80.4
81.4
82.7
83.3
82.5
83.4
82.8
80.9
82.5

80.7
83.7
84.7
82.9
78.7
80.4
80.9
83.2
83.3
82.8
83.3
82.7
81.2
82.7

81.4
83.6
84.4
82.7
79.6
80.1
80.9
83.3
83.2
83.1
83.3
81.6
81.0
82.7

81.8
84.1
83.4
82.6
79.5
80.5
81.0
83.5
82.5
82.7
83.5
81.1
81.3
82.3

Note . Monthly percentage change figures show change from the previous
month; quarterly figures show the change from the previous quarter at a
compound annual rate of growth. Production and capacity indexes are expressed
as percentages of output in 1992.




81.8
84.5
83.6
82.6
79.5
80.2
80.7
83.5
83.3
82.8
83.8
82.4
81.4
82.6

81.6
84.1
83.3
82.6
80.2
80.3
81.4
83.3
83.4
82.9
83.8
81.8
81.2
82.4

82.6
84.2
82.8
82.0
80.0
80.8
81.5
83.5
82.8
82.5
83.9
81.8
81.5
81.9

Estimates from October 2000 through December 2000 are subject to further
revision in the upcoming monthly releases.
1. Annual averages of industrial production are calculated from indexes that
are not seasonally adjusted.

142

A.2.

Federal Reserve Bulletin □ March 2001

Revised data for industrial production, capacity, and utilization for manufacturing industries, 1987-2000
Seasonally adjusted data except as noted
Quarter
Year

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.
1

2

3

4

Annual
avg.1

Industrial production (percentage change)
1987 .............
1988 .............
1989 .............
1990 .............
1 9 9 1 .............
1992 .............
1993 .............
1994 .............
1995 .............
1996 .............
1997 .............
1998 .............
1999 .............
2000 .............

-.8
-.2
.9
-.2
-.9
.3
.7
.0
.6
-.2
.5
.6
.5
.6

1.6
.4
-1 .2
.9
-.7
.6
.3
.4
- .2
1.0
1.2
.0
.5
.4

.2
-.1
.8
.3
-1.1
1.0
.2
1.0
.3
-.2
.4
.2
.5
.9

.5
1.0
.1
-.8
.3
.6
.5
.8
-.3
1.3
.5
.6
.2
.6

.3
-.1
-.7
.4
.7
.4
-.4
.9
.2
.9
.3
.3
.8
.6

1.0
.0
.0
-.1
1.4
-.1
.0
.2
.5
.9
.8
-.8
.2
.4

.7
.7
-1.1
.0
.2
.7
.2
.8
-.6
.2
.6
-.1
.6
-.1

-.2
.3
.3
.3
.2
-.2
-.2
.5
1.3
.6
1.1
2.3
.6
.6

.1
.2
-.3
-.1
1.1
.3
1.3
.2
.9
.6
.5
-.2
.1
.3

1.3
.2
-.6
-.6
-.1
.7
.2
.6
-.3
.0
.6
.7
.9
-.2

.5
.9
.4
-1.3
-.2
.5
.5
.9
.2
1.0
.7
-.2
.5
-.6

.6
.6
.1
-.6
-.5
-.1
.9
1.0
.1
.6
.4
.2
.6
-1.1

5.0
2.3
4.3
2.9
-9.7
2.4
4.4
5.6
6.5
2.3
8.5
4.8
4.1
7.1

7.0
4.1
-.7
-.1
1.2
7.3
2.0
9.4
.7
10.1
6.7
2.8
5.4
8.0

5.5
3.7
-4.5
.8
7.8
3.0
1.5
6.6
3.9
7.1
9.0
3.9
6.0
3.7

7.6
5.2
-1.4
-6.3
1.7
4.5
6.6
7.6
3.6
5.7
7.7
4.7
6.8
-2.1

5.3
4.7
1.9
-.5
-2.4
4.0
3.7
6.0
5.3
4.9
7.8
5.6
4.8
6.1

95.1
98.9
98.2
97.2
97.6
101.9
105.1
112.9
117.1
124.6
134.5
139.6
147.5
153.9

95.6
99.4
98.3
96.6
97.1
101.7
106.1
114.1
117.3
125.3
135.0
139.8
148.4
152.2

90.6
95.6
99.8
98.8
95.0
98.1
102.7
106.7
114.8
117.8
127.0
135.9
141.2
150.1

92.1
96.6
99.6
98.8
95.2
99.8
103.2
109.2
115.0
120.6
129.1
136.9
143.1
153.0

93.4
97.5
98.5
99.0
97.0
100.5
103.6
110.9
116.1
122.7
131.9
138.2
145.1
154.4

95.1
98.7
98.1
97.4
97.5
101.6
105.3
113.0
117.1
124.4
134.4
139.8
147.6
153.6

92.8
97.1
99.0
98.5
96.2
100.0
103.7
109.9
115.7
121.4
130.8
138.2
144.8
153.6

114.9
116.6
119.5
122.0
124.2
127.0
130.2
135.5
143.3
151.9
161.9
173.6
182.4
191.5

115.0
116.8
119.7
122.2
124.3
127.2
130.5
136.1
144.0
152.7
162.9
174.5
183.1
192.3

113.4
115.3
117.3
120.1
122.6
124.8
127.7
131.3
137.3
145.4
154.2
164.9
176.0
184.6

113.9
115.7
118.0
120.7
123.1
125.5
128.5
132.5
139.2
147.7
156.5
168.0
178.3
186.9

114.4
116.1
118.7
121.3
123.7
126.3
129.3
133.9
141.2
149.8
159.1
171.0
180.3
189.2

114.9
116.6
119.5
122.0
124.2
127.0
130.2
135.5
143.3
151.9
161.9
173.6
182.4
191.5

114.1
115.9
118.4
121.0
123.4
125.9
128.9
133.3
140.2
148.7
157.9
169.4
179.3
188.0

82.8
84.8
82.2
79.7
78.6
80.2
80.7
83.3
81.7
82.0
83.1
80.4
80.9
80.4

83.1
85.1
82.1
79.0
78.1
79.9
81.3
83.8
81.4
82.1
82.9
80.2
81.0
79.1

79.9
83.0
85.1
82.3
77.5
78.6
80.4
81.3
83.6
81.0
82.4
82.4
80.2
81.3

80.9
83.5
84.4
81.9
77.3
79.5
80.3
82.4
82.6
81.7
82.5
81.5
80.3
81.9

81.6
83.9
82.9
81.6
78.5
79.6
80.1
82.8
82.2
81.9
82.9
80.8
80.5
81.7

82.8
84.7
82.1
79.9
78.5
80.0
80.9
83.4
81.7
81.9
83.0
80.5
80.9
80.2

81.3
83.8
83.6
81.4
77.9
79.4
80.4
82.5
82.5
81.6
82.7
81.3
80.5
81.3

Industrial production (index)
1987 .............
1988 .............
1989 .............
1990 .............
1 9 9 1 .............
1992 .............
1993 .............
1994 .............
1995 .............
1996 .............
1997 .............
1998 .............
1999 .............
2000 .............

89.6
95.4
100.3
98.1
95.8
97.3
102.5
106.1
114.8
117.1
125.9
135.8
140.5
149.2

91.0
95.8
99.1
99.0
95.1
97.9
102.8
106.5
114.6
118.3
127.3
135.9
141.2
149.9

91.2
95.7
99.9
99.3
94.1
98.9
103.0
107.6
114.9
118.0
127.8
136.1
141.9
151.3

91.6
96.7
100.0
98.6
94.4
99.5
103.5
108.4
114.6
119.5
128.4
136.9
142.2
152.2

91.9
96.6
99.4
99.0
95.0
99.9
103.1
109.4
114.9
120.6
128.9
137.4
143.4
153.1

92.8
96.6
99.4
98.9
96.3
99.9
103.1
109.6
115.4
121.7
129.9
136.3
143.6
153.8

93.4
97.3
98.3
98.8
96.6
100.6
103.4
110.5
114.8
122.0
130.7
136.2
144.5
153.7

93.3
97.5
98.7
99.1
96.8
100.4
103.1
111.0
116.2
122.7
132.1
139.4
145.3
154.6

93.4
97.7
98.4
99.0
97.8
100.6
104.4
111.3
117.3
123.4
132.8
139.0
145.6
155.1

94.6
97.9
97.8
98.4
97.8
101.3
104.6
111.9
116.9
123.4
133.6
139.9
146.8
154.8

Capacity (index)
1987 .............
1988 .............
1989 .............
1990 .............
1 9 9 1 .............
1992 .............
1993 .............
1994 .............
1995 .............
1996 .............
1997 .............
1998 .............
1999 .............
2000 .............

113.2
115.2
117.0
119.9
122.4
124.6
127.5
130.9
136.6
144.7
153.4
163.9
175.3
183.8

113.4
115.3
117.3
120.1
122.6
124.8
127.7
131.3
137.3
145.4
154.2
164.9
176.0
184.6

113.6
115.4
117.5
120.3
122.8
125.0
128.0
131.6
137.9
146.2
154.9
165.9
176.8
185.3

113.8
115.6
117.8
120.5
123.0
125.3
128.2
132.1
138.5
146.9
155.7
167.0
177.5
186.1

113.9
115.7
118.0
120.7
123.1
125.5
128.5
132.5
139.2
147.7
156.5
168.0
178.3
186.9

114.1
115.8
118.3
120.9
123.3
125.8
128.8
132.9
139.8
148.4
157.4
169.0
179.0
187.6

114.2
116.0
118.5
121.1
123.5
126.0
129.0
133.4
140.5
149.1
158.2
170.0
179.7
188.4

114.4
116.1
118.7
121.3
123.7
126.3
129.3
133.9
141.2
149.8
159.1
171.0
180.3
189.1

114.6
116.3
119.0
121.5
123.8
126.5
129.6
134.4
141.9
150.5
160.0
171.9
181.0
189.9

114.7
116.5
119.2
121.7
124.0
126.7
129.9
134.9
142.6
151.2
160.9
172.8
181.7
190.7

Utilization (level, percent)
1987 .............
1988 .............
1989 .............
1990 .............
1 9 9 1 .............
1992 .............
1993 .............
1994 .............
1995 .............
1996 .............
1997 .............
1998 .............
1999 .............
2000 .............

79.1
82.9
85.7
81.8
78.2
78.1
80.4
81.1
84.0
80.9
82.1
82.9
80.2
81.2

80.2
83.1
84.5
82.5
77.5
78.5
80.4
81.1
83.5
81.3
82.6
82.4
80.2
81.2

80.3
82.9
85.0
82.6
76.6
79.1
80.4
81.7
83.3
80.7
82.5
82.0
80.3
81.6

N ote . See general note to table A.I.




80.6
83.7
85.0
81.8
76.8
79.5
80.7
82.1
82.7
81.4
82.5
82.0
80.1
81.8

80.7
83.5
84.2
82.0
77.1
79.6
80.2
82.6
82.5
81.7
82.3
81.8
80.4
81.9

81.4
83.4
84.1
81.8
78.1
79.4
80.1
82.5
82.6
82.0
82.5
80.6
80.2
82.0

81.8
83.8
83.0
81.6
78.2
79.8
80.1
82.8
81.7
81.8
82.6
80.1
80.4
81.6

81.5
84.0
83.1
81.7
78.2
79.5
79.7
82.9
82.3
81.9
83.1
81.5
80.6
81.7

81.5
84.0
82.7
81.5
79.0
79.6
80.6
82.8
82.7
82.0
83.0
80.9
80.4
81.7

82.5
84.1
82.1
80.9
78.9
79.9
80.6
83.0
82.0
81.6
83.0
81.0
80.8
81.2

1. Annual averages of industrial production are calculated from indexes that
are not seasonally adjusted.

Industrial Production and Capacity Utilization: The 2000 Annual Revision

A .3.

143

R ates o f grow th in industrial production, by m ajor m arket group, 1 9 9 6 -2 0 0 0
Difference between growth rates:
revised less earlier
(percentage points)

Revised growth rate
(percent)

Market group
1996

1997

1998

1999

2000

1996

1997

1998

1999

2000

Total index ..........................................................

5.6

7.2

3.2

5.1

4.2

.3

.5

.3

.9

-.1

Products, total ............................................................
Final products........................................................
Consumer goods ...............................................
Durable..........................................................
Automotive products ..............................
Autos and trucks..................................
A u to s.................................................
Trucks ...............................................
Auto parts and allied g o o d s...............
Other durable goods ................................
Appliances and electronics ...............
Appliances and air conditioning ..
Home electronics ............................
Carpeting and furniture......................
Miscellaneous .....................................
Nondurable ..................................................
Non-energy ...............................................
Foods and tobacco ..............................
Clothing................................................
Chemical products ..............................
Paper products.....................................
Energy products.......................................
F u els......................................................
Utilities ................................................

4.7
4.9
2.2
2.7
3.0
4.1
-4.7
10.8
1.0
2.5
5.8
.9
10.9
3.0
.4
2.1
2.0
.6
-.4
5.2
3.5
2.6
3.6
2.1

6.0
6.5
4.0
8.4
10.6
15.0
5.1
21.1
2.5
6.6
12.1
4.2
19.8
4.2
4.5
2.7
2.9
2.2
-3.1
5.5
5.2
1.8
1.8
1.6

3.2
2.9
.2
4.3
5.4
5.5
4.1
6.3
6.1
3.4
10.2
8.2
11.7
6.2
-2.5
-1.0
-.5
.6
-8.1
3.3
-5 .4
-4.1
-.4
-5.5

3.4
3.4
3.1
8.2
3.3
2.5
-5.5
6.7
4.4
12.4
32.5
11.5
53.3
2.8
4.6
1.6
1.5
.2
-4.9
5.8
2.6
2.5
1.9
2.5

3.0
3.7
.7
-4.3
-6.8
-9 .9
-11.3
-9.3
-1.3
-2.1
-.5
-5 .2
5.1
.4
-4 .4
2.1
1.2
.8
-4.6
2.5
3.3
7.1
.0
11.8

.4
.5
.2
.9
.6
1.6
1.5
1.6
-1.1
1.2
1.7
1.8
1.5
-.1
1.6
.1
.1
-.6
.0
.4
2.1
.1
.0
.2

.8
.8
1.2
2.9
.3
2.0
1.5
2.0
-3 .4
4.8
10.7
6.3
14.2
1.2
2.7
.7
.8
.0
-.7
3.1
.7
-.1
.0
.0

.7
.6
1.1
-.8
.7
1.2
1.4
1.3
.1
-1.7
-13.6
-1 .6
-27.7
3.7
.8
1.5
1.8
1.9
-.1
3.4
.0
-.2
.2
-.4

.9
.8
1.1
1.4
.6
.6
.6
.6
.7
1.8
3.0
3.5
-7 .0
-.5
.2
.9
.9
.9
-2.7
1.8
1.4
1.2
.0
1.7

.3
.2
.2
-.1
1.1
2.5
.1
3.3
-.5
-1.2
-3.4
5.4
-14.0
1.5
-.4
.4
.7
.6
3.5
-.1
.3
-2.2
.8
-3.5

Equipment, total ...............................................
Business equipment.....................................
Information processing and related —
Computer and office............................
Industrial ..................................................
Transit ......................................................
Autos and trucks..................................
Other..........................................................
Defense and space equipment ...................
Oil and gas well drilling..............................
Manufactured hom es...................................

9.3
11.6
20.7
57.6
1.7
15.4
-2 .0
4.3
-1.8
7.9
3.5

10.4
13.2
16.5
24.1
5.5
23.5
13.2
7.9
-5 .0
8.6
9.5

7.3
9.1
16.8
56.0
-1.0
12.9
9.0
2.9
8.2
-26.3
9.2

3.9
5.7
21.0
55.3
-.9
-8.9
1.6
-3.5
-3.1
5.6
-17.4

8.9
11.0
23.8
46.5
6.8
-9.2
-15.7
11.8
-3 .6
18.6
-35.4

.7
.8
2.2
4.1
.5
-.4
1.7
-1.7
.7
.0
-.3

.1
.4
.5
-8.1
.7
1.7
1.5
-2.8
-1.0
-1 .0
.6

.1
-.9
-3.2
-21.6
-1.7
2.2
2.6
4.5
7.6
-1.1
2.5

.4
1.0
-.5
4.7
2.0
3.0
2.6
4.6
.6
-.5
.5

.7
1.4
2.4
5.0
1.8
1.2
-.8
4.5
-.2
-1 .2
.5

Intermediate products...........................................
Construction supplies .....................................
Business supplies .............................................

4.1
6.1
2.8

4.5
4.0
4.8

4.1
7.6
1.8

3.2
4.5
2.3

1.0
-.6
2.1

.3
.2
.4

.9
1.2
.7

1.0
2.0
.4

1.2
1.3
1.2

.7
.2
1.0

Materials.....................................................................
Durable...................................................................
Consumer parts .................................................
Equipment parts ...............................................
Semiconductors, printed circuit boards,
and other electrical components........
Other .................................................................
Basic metals .................................................
Nondurable ............................................................
Textile ................................................................
Paper .................................................................
Chem ical............................................................
Other .................................................................
Energy ...................................................................
Primary ..............................................................
Converted f u e l..................................................

7.0
10.6
1.5
23.8

9.4
14.1
10.3
26.1

3.7
7.2
.1
20.5

8.0
10.9
7.1
22.0

6.0
11.3
-2.8
35.8

.1
.1
-.3
.4

.2
-.3
.7
-.4

.2
-.1
2.9
-1 .6

.9
1.2
1.7
1.0

-.6
-.3
1.9
.2

53.4
3.9
4.1
3.5
1.4
4.4
4.7
1.3
.7
-1 .0
4.0

55.1
5.4
5.5
5.3
3.4
4.5
6.3
4.8
.1
-.1
.4

53.7
-.6
-3.0
-2.8
-8.5
-2.9
^ .0
2.8
-.7
-1 .0
-.2

54.6
3.4
6.5
5.6
-1.2
4.2
9.4
2.0
.5
-.7
2.8

81.4
-1.8
-5.4
-4.5
-10.3
-3.8
-4.5
-2.7
1.7
.0
5.8

1.2
-.1
-.6
.1
-.9
.1
.1
.7
.0
-.2
.2

.9
-.6
.0
1.0
.3
.0
1.9
.5
.0
.0
.0

-2 .9
.1
2.6
.1
1.1
-.3
-.4
1.2
.3
-.6
2.0

2.7
1.3
1.5
-.4
-1.7
.2
-1.3
.5
1.3
.1
3.8

-1.1
-.1
-.2
.4
2.2
-.5
-.5
2.2
-.1
-.8
1.6

5.8
6.0
4.8
3.2

7.0
6.8
7.0
5.4

3.1
3.2
2.3
.9

5.2
5.0
4.0
2.4

4.7
5.0
3.3
.6

.3
.3
.2
.2

.4
.4
.6
.7

.3
.2
.8
1.0

.9
.8
1.0
.9

-.1
-.1
.2
.3

3.0

5.0

.7

2.2

.0

.2

.6

1.1

1.0

.5

Consumer goods excluding:
Autos and trucks ..................................................
Energy ...................................................................

2.1
2.2

3.2
4.3

-.1
.6

3.1
3.2

1.4
-.2

.2
.3

1.1
1.3

1.1
1.2

1.1
1.1

.1
.4

Business equipment excluding:
Autos and trucks ..................................................
Computers and office equipment........................

13.1
7.6

13.3
12.2

9.1
4.8

6.1
.5

13.9
6.7

.7
.5

.3
1.2

-1.2
.8

.8
1.3

1.8
2.1

Materials excluding:
Energy ...................................................................

8.7

11.7

4.5

9.5

6.9

.2

.3

.0

.7

-.7

Special aggregates
Total excluding:
Autos and trucks ..................................................
Motor vehicles and parts.....................................
Computers..............................................................
Computers and semiconductors'........................
Computers, communications equipment,
and semiconductors.....................................

N ote . Growth rates are calculated as the percentage change in the seasonally
adjusted index from the fourth quarter of the previous year to the fourth quarter
of the year specified. For 2000, the differences between growth rates are




calculated from annualized growth rates between the fourth quarter of 1999 and
the third quarter of 2000.
1. Semiconductors include related electronic components.

144

Federal Reserve Bulletin □ March 2001

A.4.

Rates of growth in industrial production, by industry group, 1996-2000

Series

Difference between growth rates:
revised less earlier
(percentage points)

Revised growth rate
(percent)

SIC
code1
1996

1997

1998

1999

2000

1996

1997

1998

1999

2000

Total index ................................................

5.6

7.2

3.2

5.1

4.2

.3

.4

.3

.9

-.1

Manufacturing.................................................

6.3

8.0

4.0

5.6

4.1

.4

.6

.3

.8

.0

Primary processing ....................................
Advanced processing ................................

8.3
5.0

10.4
6.4

4.3
3.9

8.8
3.7

5.0
3.5

.1
.5

.4
.6

.2
.5

.4
1.0

-.2
.0

Durable manufacturing ............................
Lumber and products............................ 24
Furniture and fixtures .......................... 25
Stone, clay, and glass products........... 32

9.2
1.8
5.2
5.6

11.5
3.7
7.8
3.4

8.0
5.4
6.2
5.6

8.2
.5
3.1
2.3

7.9
-7.6
5.3
.5

.3
.0
.6
-.2

.1
-.8
4.1
.1

.3
1.2
2.9
.6

1.2
.6
.5
1.1

.0
.5
3.8
.8

Primary metals .....................................
Iron and s te e l.....................................
Raw steel .......................................
Nonferrous metals ............................
Fabricated metal products ...................
Industrial machinery and equipment ..
Computer and office equipment___
Electrical machinery ............................
Semiconductors and related
electronic components.............

33
331,2
33 lpt
333-6,9
34
35
357
36

5.0
4.4
-1.1
5.8
4.2
10.9
51.5
24.3

6.1
5.8
7.5
6.4
6.2
7.3
21.5
28.4

-3 .4
-8.4
-9.4
2.6
1.5
11.6
54.0
20.4

8.0
12.6
16.6
3.0
1.6
13.6
54.3
25.2

-7.1
-10.6
-15.7
-3.2
.5
14.3
43.6
38.9

-.6
-.8
-1 .0
-.4
.0
.4
5.0
.9

.1
-.3
.3
.4
.3
-3.8
-6.3
2.2

3.0
3.2
3.4
2.6
1.5
-4.5
-24.9
-1.1

.5
.3
-1.1
.8
1.4
2.3
3.2
2.5

.2
.6
1.4
-.2
1.1
-.5
2.4
.6

3672-9

47.7

49.0

45.7

47.8

72.8

.8

-.9

-2.8

3.5

-.8

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

37
371

4.7
-.5
3.2

14.7
16.0
13.5

5.9
3.3
5.4

-1.4
5.9
1.5

-5.5
-8.4
-10.0

-.1
.9
1.6

1.5
2.2
2.2

3.7
2.3
1.4

1.6
1.9
.9

1.2
1.8
1.6

13.3
3.8
2.7

12.9
2.9
3.1

10.4
3.9
.7

-11.6
4.5
6.6

-.7
2.2
.0

-1 .7
1.4
.1

.6
-.4
.0

6.3
2.0
1.3

.5
-.4
2.3

.5
2.6
2.1

372-6,9
38
39

Nondurable manufacturing......................
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
30
31

2.9
.3
-.3
.7
-.3
3.6
3.0
5.4
4.0
5.1
4.3

4.2
2.2
5.5
1.5
-.2
4.9
5.1
5.3
3.1
7.0
-5.4

-.4
3.7
-15.9
-6.5
-6.3
-.1
-1.8
.2
2.1
1.6
-10.1

2.5
.9
-1.9
-.2
^ .0
3.0
1.8
6.7
.2
3.6
-6 .0

-.5
1.5
-2.7
-8.8
-5.5
-3.2
2.3
-.4
-.3
-1.8
-3.8

.4
-.5
-.9
-1 .2
.9
.6
1.2
.7
-.1
1.1
2.3

1.3
.3
.2
-2.3
2.3
.8
1.2
2.7
.4
2.4
1.7

.7
1.9
2.5
-.1
1.0
1.1
-.2
.9
.0
-1.5
-1.9

.6
1.0
.9
-4.6
1.0
.0
1.3
.9
.2
-.2
3.8

.4
.9
-.2
4.1
.3
-.1
1.1
-.5
-.3
-.1
4.4

M ining..............................................................
Metal mining .............................................
Coal mining ...............................................
Oil and gas extraction ..............................
Stone and earth m inerals..........................

10
12
13
14

1.6
3.2
2.4
1.0
5.1

1.5
3.2
1.7
1.3
2.4

-5.3
-2.3
2.4
-8.7
4.3

-.5
-8.8
-1.3
.3
.6

1.5
-2.1
.6
2.2
-3 .2

-.3
-.8
-.2
-.1
.3

-.4
.3
-.2
-.4
-.7

-.3
-.2
-.4
-.3
.5

.4
3.1
-.1
.1
1.1

-1.7
-3.3
.7
-2.9
-.4

1.4
1.1
2.5

2.2
3.2
-1.5

-1.4
1.6
-11.9

2.3
1.7
4.6

7.7
5.5
15.1

.2
.1
.3

.1
.3
.3

.0
.8
.3

2.1
1.7
3.5

.2
.2
-2.8

41.0

35.7

37.2

40.6

55.6

1.9

-.9

-6.7

3.2

5.2

6.7
5.3
3.5

7.5
7.7
5.9

4.1
3.0
1.4

5.5
4.4
2.6

5.0
3.1
.1

.3
.2
.2

.4
.7
.8

.2
.8
1.1

.7
1.0
.9

-.1
.3
.5

3.2

5.4

1.2

2.3

-.7

.2

.7

1.2

1.0

.7

U tilities............................................................
Electric........................................................ 491,3pt
Gas .............................................................. 492,3pt
Special aggregates
Computers, communications equipment,
and semiconductors 2 ............................
Manufacturing excluding:
Motor vehicles and parts ........................
Computers and office equipment.............
Computers and semiconductors2 ...........
Computers, communications equipment,
and semiconductors2 ........................

N ote . Growth rates are calculated as the percentage change in the seasonally
adjusted index from the fourth quarter of the previous year to the fourth quarter
of the year specified. For 2000, the differences between growth rates are
calculated from annualized growth rates between the fourth quarter of 1999 and
the third quarter of 2000.
Primary-processing manufacturing includes textile mill products; paper and
products; industrial chemicals, synthetic materials, and fertilizers; petroleum
products; rubber and plastics products; lumber and products; primary metals;
fabricated metals; and stone, clay, and glass products. Advanced-processing
manufacturing includes foods, tobacco products, apparel products, printing and




publishing, chemical products and other agricultural chemicals, leather and
products, furniture and fixtures, industrial and commercial machinery and
computer equipment, electrical machinery, transportation equipment, instru­
ments, and miscellaneous manufactures.
1. Standard Industrial Classification; see Executive Office of the President,
Office of Management and Budget, Standard Industrial Classification Manual,
1987 (U.S. Government Printing Office, 1987).
2. Semiconductors include related electronic components.
pt. Part of classification.

Industrial Production and Capacity Utilization: The 2000 Annual Revision

A.5.

145

Rates of growth in capacity, by industry group, 1996-2000

Industry group

Difference between growth rates:
revised less earlier
(percentage points)

Revised growth rate
(percent)

SIC
code1
1996

1997

1998

1999

2000

1996

1997

1998

1999

20002

Total index .......................................................

5.4

5.9

6.5

4.6

4.6

-.1

.5

.3

.4

.8

Manufacturing........................................................

6.1

6.5

7.2

5.1

5.0

-.1

.5

.2

.4

.8

Primary processing ...........................................
Advanced processing .......................................

9.2
4.0

8.5
4.9

9.4
5.7

4.9
5.2

8.0
3.0

-.7
.3

.1
.2

-.5
.5

-.8
1.3

1.5
-.4

Durable manufacturing ...................................
Lumber and products.................................... 24
Furniture and fixtures .................................. 25
Stone, clay, and glass products................... 32

9.3
3.4
4.3
3.0

9.3
3.3
5.4
3.5

10.2
3.7
10.0
3.9

8.4
1.6
2.9
2.1

8.8
1.2
3.9
2.4

.0
-.3
.0
-.4

.5
.0
1.6
.4

-.5
.6
6.8
1.1

1.1
-1.3
.9
-1 .4

1.3
1.0
3.3
.2

Primary metals .............................................
Iron and s te el.............................................
Raw s te e l...............................................
Nonferrous metals ...................................
Primary copper.....................................
Primary aluminum ..............................
Fabricated metal products ..........................
Industrial machinery and equipment.........
Computer and office equipment.............
Electrical machinery ....................................
Semiconductors and related
electronic components.....................

33
331,2
33 lpt
333-6,9
3331
3334
34
35
357
36

5.3
4.8
2.4
6.0
.6
.3
4.4
12.0
39.3
30.4

3.4
3.9
6.1
2.9
1.0
.1
6.3
11.4
44.3
26.5

5.1
5.8
6.5
4.4
-1.1
.7
6.0
11.8
37.0
28.2

3.3
3.1
2.8
3.4
-3.1
1.5
1.8
18.1
72.7
18.4

.6
.9
1.7
.4
-2.9
1.3
2.5
10.6
39.0
33.2

-.4
-.3
-.4
-.4
5.7
-.1
-.8
-.3
-3.2
-.5

.0
.0
.1
-.2
.3
.0
.2
-2.9
-6.6
3.7

1.6
.6
.4
2.9
-.6
.7
.2
-4 .0
-21.8
-2.3

.8
-.8
1.2
2.6
-.9
1.5
1.5
2.8
10.8
1.2

-1.2
-1.5
-.5
-1 .0
3.0
.9
2.5
-1.7
-3.2
7.8

3672-9

57.6

46.3

55.2

31.8

69.8

-1.5

3.3

-5.8

.2

16.2

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

37
371

1.4
2.8
-2.1

3.6
6.2
5.2

4.1
4.7
4.4

2.2
2.7
.5

1.1
2.1
.9

1.0
1.3
2.4

1.2
2.5
1.0

1.4
2.0
1.8

2.3
2.5
2.1

1.0
.2
-.3

372-6,9
38
39

-.2
1.2
2.4

.6
1.1
1.7

3.1
3.4
2.9

1.6
5.8
2.4

-.4
1.8
1.3

.9
.9
.0

.0
.3
1.2

.3
1.2
1.4

2.3
1.8
1.2

1.6
-.1
1.0

20
22
23
26
261-3
27
28
2821
2823,4
29
30
31

2.2
2.4
.7
.0
2.3
2.6
1.0
3.4
3.3
-3.3
1.1
3.9
-1.8

3.4
2.3
-.2
.8
3.3
1.6
3.0
5.5
6.8
2.0
2.4
5.2
-.6

4.1
2.8
-.2
.8
4.3
.3
3.5
7.0
9.6
2.8
2.4
5.7
-2.0

1.3
2.2
-.5
-.9
.9
.9
.9
1.4
1.3
-1.5
1.9
3.8
-3.5

.9
.4
-1.7
-2.2
.8
.7
-.1
2.5
.5
1.4
.0
3.5
-4.4

.0
.2
-1 .2
-.3
1.0
1.4
.3
.0
.1
-1.3
-.3
-.3
-.3

.8
.0
-2 .4
.2
.0
-.7
1.2
2.7
5.1
1.0
.1
-.2
1.2

1.6
.6
-.5
.1
1.2
-1.1
1.9
4.2
6.0
2.3
-.5
.6
.8

.1
.3
-.8
.0
-1.4
-.3
1.1
.4
-2.4
-3.2
.3
-1.6
1.4

.6
-.1
-1.8
.2
.7
.5
-.8
1.6
-2.7
3.7
-.6
.1
■7 s

.6
3.2
1.1
.1
-.5
3.3

1.9
3.0
.9
1.5
3.5
4.8

-.1
.8
.3
-.8
1.4
2.0

-1.5
-.1
.8
-2.4
-1 .9
.4

-.8
-1.8
.6
-1.1
-.4
.0

.2
1.7
-.7
.4
.7
-.3

.3
-.2
.7
.3
2.5
.5

-1 .0
-.3
-.1
-1.3
-.5
-.9

-1.3
1.4
.4
-1.8
1.2
-1 .2

.7
.7
.4
1.0
-1.2
-.4

.9
1.1
1.1

1.0
.2
1.1

1.1
1.1
.5

2.4
3.2
.1

3.3
4.4
-.1

-1 .0
-.8
-.7

.8
.4
-.4

.4
.4
-.7

1.0
1.8
-.9

2.1
2.7
-1.1

Special aggregates
Computers, communications equipment,
and semiconductors3 ...................................

44.2

40.3

39.5

37.8

48.0

-1.4

2.4

-8.7

2.1

Manufacturing excluding computers,
communications equipment, and
semiconductors3 ...........................................

2.7

3.6

4.4

2.1

1.3

.1

.5

1.4

.8

Nondurable manufacturing..............................
Foods ..............................................................
Textile mill products ....................................
Apparel products...........................................
Paper and products.......................................
Pulp and paper .........................................
Printing and publishing................................
Chemicals and products ..............................
Plastics materials .....................................
Synthetic fibers.........................................
Petroleum products .....................................
Rubber and plastics products......................
Leather and products ....................................
M ining.....................................................................
Metal mining ....................................................
Coal mining ......................................................
Oil and gas extraction .....................................
Oil and gas well drilling ..................................
Stone and earth m inerals..................................

10
12
13
138
14

U tilities...................................................................
Electric................................................................ 491,3pt
Gas ..................................................................... 492,3pt

Note . See general note to table A.4.
1. Standard Industrial Classification; see table A.4, note 1.
2. Through the fourth quarter of 2000.




3. Semiconductors include related electronic components,
pt. Part of classification.

9.0 I

.8

146

Federal Reserve Bulletin □ March 2001

A.6.

Capacity utilization rates, by industry group, 1967-2000

Item

Difference between rates:
revised less earlier
(percentage points)

Revised rate
(percent of capacity, seasonally adjusted)

SIC
code1
1967-99
avg.

1988-89
high

1990-91
low

1998:Q4

1999:Q4

2000:Q4

Total index ......................................................

82.1

85.4

78.1

81.2

81.6

81.3

.2

Manufacturing........................................................

81.1

85.7

76.6

80.5

80.9

80.2

.3

.6

.2

Primary processing ...........................................
Advanced processing .......................................

82.1
80.6

88.3
84.2

76.7
76.6

81.6
80.4

84.6
79.2

82.3
79.7

.9
.5

1.9
.2

1.1
.4

24
25
32

79.6
82.6
81.3
78.7

84.6
93.6
86.6
83.5

73.1
75.5
72.5
69.7

81.0
84.2
78.6
85.1

81.0
83.3
78.8
85.2

80.3
76.1
79.8
83.7

.6
.5
.0
-.4

.7
2.1
-.3
1.7

.0
1.9
.2
2.2

Primary metals .............................................
Iron and ste el.............................................
Raw steel ...............................................
Nonferrous metals ...................................
Primary copper.....................................
Primary aluminum ..............................
Fabricated metal products ..........................
Industrial machinery and equipment.........
Computer and office equipment.............
Electrical machinery ...................................
Semiconductors and related
electronic components....................

33
331,2
331 pt
333-6,9
3331
3334
34
35
357
36

81.5
81.3
80.9
81.9
76.2
88.4
78.0
81.4
81.3
81.2

92.7
95.2
92.7
89.3
86.3
100.4
82.0
85.4
86.9
84.0

73.7
71.8
71.5
74.2
73.5
97.3
71.9
72.3
66.9
75.0

84.8
79.9
76.3
90.8
106.4
88.4
77.0
83.0
85.6
79.0

88.6
87.2
86.6
90.4
77.5
89.7
76.9
79.8
76.5
83.4

81.8
77.3
71.8
87.1
78.3
80.6
75.4
82.5
79.1
87.0

1.6
1.6
2.1
1.5
19.6
-.2
1.5
-1.1
-.1
1.1

1.3
2.6
.5
-.1
2.1
-1.5
1.5
-1.3
-3.5
2.0

2.2
3.8
1.6
.2
11.1
-2.0
.7
-.9
-1 .6
-1.1

3672-9

79.6

81.1

75.6

76.8

86.1

87.7

-1.7

.1

-7.2

Transportation equipment............................
Motor vehicles and parts ........................
Autos and light trucks2 ......................
Aerospace and miscellaneous
transportation equipment ...............
Instruments....................................................
Miscellaneous manufactures ......................

37
371

76.0
76.9

85.8
89.1
92.3

68.5
55.9
53.3

81.7
80.4
86.6

78.8
82.9
87.5

73.7
74.3
78.1

1.0
-.2
-.4

.5
-.7
-1.5

.6
.2
-.2

372-6,9
38
39

75.3
81.7
75.8

87.3
81.4
79.0

79.2
77.2
71.7

83.7
81.4
78.3

72.8
80.4
81.6

72.6
80.7
80.5

2.9
1.0
-.8

1.3
-.7
-.1

.6
.9
.6

20
22
23
26
261-3
27
28
2821
2823,4
29
30
31

83.3
82.8
85.6
80.8
88.9
92.4
85.5
79.3
86.8
85.1
87.1
84.7
80.9

87.3
85.4
90.4
85.1
93.5
98.0
91.7
86.2
97.0
99.7
88.5
89.6
83.3

80.7
82.7
77.7
75.5
85.0
89.9
79.6
79.3
74.8
77.6
85.1
77.4
76.1

80.1
81.2
82.2
74.0
85.0
90.9
80.1
74.5
89.4
79.9
94.7
85.5
71.2

81.0
80.2
82.4
71.7
86.7
94.0
80.8
78.4
94.0
87.6
93.2
85.3
69.3

79.9
81.0
76.4
69.3
83.2
89.2
82.7
76.2
89.5
81.7
92.9
80.9
69.8

-.3
1.1
.9
3.0
-1.1
.1
-1.1
-2.5
-2 .4
2.9
.6
.4
.4

.2
1.6
-2.1
3.6
.0
.5
-.9
-2.3
-.7
5.3
.5
1.5
2.3

.1
2.2
1.7
3.6
-.2
-.6
.1
-3.5
5.0
2.1
.7
1.5
4.2

10
12
13
138
14

87.4
79.4
86.7
88.4
73.9
84.8

88.0
89.4
91.5
88.2
69.3
89.0

87.0
79.9
83.4
88.7
60.0
79.4

83.8
87.1
87.3
82.4
62.0
86.4

84.7
79.6
85.4
84.7
66.8
86.6

86.6
79.4
85.4
87.6
79.5
83.8

.5
-.6
-.5
.9
-1.3
.6

1.9
1.2
-.9
2.5
-2 .6
2.6

.3
-1.3
-.7
.1
-3.1
2.5

U tilities...................................................................
E lectric............................................................... 491,3pt
Gas ..................................................................... 492,3pt

87.5
89.6
82.0

92.6
95.0
85.0

83.4
87.1
67.1

89.3
95.0
72.2

89.2
93.6
75.4

93.0
94.6
86.9

-.1
1.2
1.3

.9
1.2
4.5

-.4
-.5
4.0

Special aggregates
Computers, communications equipment,
and semiconductors3 ...................................

80.2

81.9

72.4

79.2

80.8

85.0

-.3

.3

-1 .0

Manufacturing excluding computers,
communications equipment, and
semiconductors3 ...........................................

81.2

86.1

76.8

80.7

80.9

79.3

.2

.3

.2

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

Nondurable manufacturing..............................
Foods .............................................................
Textile mill products ...................................
Apparel products...........................................
Paper and products.......................................
Pulp and paper .........................................
Printing and publishing................................
Chemicals and products ..............................
Plastics materials .....................................
Synthetic fibers.........................................
Petroleum products .....................................
Rubber and plastics products......................
Leather and products ...................................
M ining.....................................................................
Metal mining ....................................................
Coal mining ......................................................
Oil and gas extraction .....................................
Oil and gas well drilling .................................
Stone and earth minerals.................................

N ote . The “high” column refers to periods in which utilization generally
peaked; the “low” column refers to recession years in which utilization generally bottomed out. The monthly highs and lows are specific to each series, and
all did not occur in the same month.




1998:Q4

1999:Q4

1. Standard Industrial Classification; see table A.4, note 1.
2. Series begins in 1977.
3. Semiconductors include related electronic components,
pt. Part of classification.

.6

2000: Q3

.1

Industrial Production and Capacity Utilization: The 2000 Annual Revision

A.7.

147

Annual proportions in industrial production, by industry group, 1992-99
SIC
code1

Item

1992

1993

1994

1995

1996

1997

1998

1999

Total index .......................................................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Manufacturing........................................................

85.4

85.9

86.7

86.9

87.0

88.2

88.9

88.4

Primary processing ...........................................
Advanced processing .......................................

31.0
54.5

31.8
54.1

33.4
53.3

33.7
53.2

33.5
53.5

34.0
54.1

33.7
55.2

34.1
54.3

Durable manufacturing ....................................
Lumber and products................................... 24
Furniture and fixtures .................................. 25
Stone, clay, and glass products................... 32

44.8
2.1
1.4
2.1

45.6
2.2
1.4
2.1

46.3
2.2
1.4
2.2

46.8
2.1
1.4
2.2

47.6
2.1
1.4
2.3

48.3
2.1
1.5
2.3

48.9
2.1
1.6
2.4

48.4
2.1
1.6
2.4

Primary metals .............................................
Iron and s te e l.............................................
Raw s te e l...............................................
Nonferrous metals ....................................
Fabricated metal products ..........................
Industrial machinery and equipment.........
Computer and office equipment.............
Electrical machinery ...................................
Semiconductors and related
electronic components.....................

33
331,2
33 lpt
333-6,9
34
35
357
36

3.1
1.8
.1
1.4
5.0
7.8
1.6
7.1

3.3
1.9
.1
1.4
5.1
8.1
1.6
7.4

3.6
2.0
.1
1.6
5.2
8.4
1.6
7.8

3.5
1.9
.1
1.6
5.3
8.9
1.7
8.3

3.5
1.9
.1
1.6
5.5
9.1
1.8
8.6

3.6
2.0
.1
1.6
5.7
9.0
1.9
8.8

3.4
1.8
.1
1.6
5.7
9.1
2.0
8.6

3.4
1.8
.1
1.6
5.6
9.0
2.3
8.5

3672-9

2.5

2.6

2.9

3.4

3.6

3.7

3.5

3.6

Transportation equipment............................
Motor vehicles and parts ........................
Autos and light trucks2 ......................
Aerospace and miscellaneous
transportation equipment ...............
Instruments....................................................
Miscellaneous manufactures ......................

37
371

9.4
4.7
2.5

9.5
5.1
2.5

9.3
5.5
2.8

8.9
5.4
2.8

8.9
5.5
2.9

9.3
5.7
3.0

9.9
5.6
2.7

9.7
5.9
2.9

372-6,9
38
39

4.7
5.4
1.3

4.4
5.3
1.3

3.8
4.9
1.3

3.5
4.8
1.3

3.4
4.9
1.4

3.6
4.7
1.3

4.3
4.8
1.3

3.9
4.7
1.3

Nondurable manufacturing..............................
Foods ..............................................................
Tobacco products .........................................
Textile mill products ....................................
Apparel products...........................................
Paper and products.......................................
Printing and publishing................................
Chemicals and products ..............................
Petroleum products .....................................
Rubber and plastics products......................
Leather and products ...................................

20
21
22
23
26
27
28
29
30
31

40.6
9.6
1.6
1.8
2.2
3.5
6.8
10.0
1.4
3.5
.3

40.3
9.6
1.1
1.8
2.1
3.5
6.8
10.0
1.5
3.6
.3

40.4
9.3
1.2
1.8
2.1
3.8
6.6
10.0
1.6
3.8
.2

40.2
9.2
1.3
1.7
2.0
3.9
6.6
9.9
1.5
3.7
.2

39.4
9.1
1.3
1.6
1.9
3.5
6.6
9.8
1.7
3.7
.2

39.9
9.0
1.4
1.6
1.8
3.4
6.9
10.1
1.6
3.8
.2

40.1
9.2
1.7
1.5
1.7
3.4
6.8
10.2
1.5
3.8
.2

40.0
9.0
1.7
1.4
1.5
3.4
6.6
10.4
2.0
3.8
.2

M ining.....................................................................
Metal mining ....................................................
Coal mining ......................................................
Oil and gas extraction .....................................
Stone and earth m inerals.................................

10
12
13
14

6.8
.4
1.0
4.8
.6

6.3
.4
.9
4.4
.6

5.9
.4
.9
4.0
.6

6.0
.4
.8
4.1
.6

6.3
.4
.8
4.5
.6

5.6
.3
.7
3.9
.6

5.0
.3
.7
.6

5.6
.2
.6
4.2
6
.0

7.8
6.2
1.6

7.7
6.1
1.6

7.4
5.8
1.6

7.1
5.6
1.5

6.7
5.3
1.4

6.3
4.9
1.4

6.1
4.8
1.3

5.9
4.6
1.3

U tilities...................................................................
Electric................................................................ 491,3pt
Gas ..................................................................... 492,3pt
Special aggregates
Computers, communications equipment,
and semiconductors 3.....................................
Manufacturing excluding:
Motor vehicles and parts..................................
Computers and office equipment.....................
Computers and semiconductors3 ...................
Computers, communications equipment,
and semiconductors3 ................................

|Jjf§|SI|Jf
5.7

5.8

6.2

6.9

7.3

7.6

7.5

7.8

80.7
83.8
81.3

80.9
84.3
81.7

81.2
85.1
82.2

81.5
85.2
81.8

81.5
85.2
81.6

82.4
86.3
82.6

83.3
86.9
83.4

82.5
86.1
82.5

79.8

80.1

80.5

80.1

79.7

80.5

81.4

80.6

N ote . The IP proportion data are estimates of the industries’ relative contribution to overall IP growth in the following year. For example, a 1 percent
increase in durable goods manufacturing in 2000 would account for a 0.484 percent increase in total IP.




1. Standard Industrial Classification; see table A.4, note 1.
2. Series began in 1977.
3. Semiconductors include related electronic components,
pt. Part of classification.

148

Federal Reserve Bulletin □ March 2001

A .8.

R ates o f grow th in electric p ow er u se, 1 9 9 6 -2 0 0 0

---------

Difference between growth rates:
revised less earlier
(percentage points)

Revised growth rate
(percent)

111 1

1998

1999

2000

1996

1997

1998

1999

2000

Total

1.6

1.0

-1.2

1.0

.6

.1

-.1

-.3

1.3

.2

Manufacturing....................

1.6

1.2

-1 .2

1.1

.7

.2

-.1

-.3

1.4

.3

3.8
1.0
2.7
1.1
5.5
4.1
4.1
2.6
4.2
.3
.4

-1.8
2.1
1.0
2.2
-4.8
-.7
.5
-2 .6
-1 .0
1.5
6.4

1.3
-.1
1.9
-.4
1.9
.9
.1
-.4
3.6
-1.9
11.6

2.7
3.1
5.1
4.0
2.3
3.4
3.3
4.8
-1.0
4.9
7.4

.6
.5
.7
.6
.8
.2
.1
.4
.6
.3
1.3

-.9
-2.5
1.1
-.5
-1.2
-.5
-.1
-.3
-1 .4
-.7
-1.7

-.5
.4
.4
-.3
-1.0
.5
-.5
-.6
-.1
-2.3
-1.8

1.9
.9
.8
1.8
2.4
2.0
2.1
1.8
1.6
-3 .0
7.7

.6
1.1
2.3
.1
-.1
.7
1.2
-.9
1.8
5.6
2.3

-.1
1.7
1.3
-2 .0
1.1
-.5
-.9
-.4
.6
.5
-.7

.5
.4
-.6
-3.4
1.8
-.9
-1 .4
1.8
1.9
-.6
.0

-.1
.7
.1
-.9
1.0
-1.7
-.8
.7
-.9
-.3
-.6

.9
2.6
.8
-.5
9.0
4.5
3.0
.3
-4.3
1.2
5.6

.0
-.4
-.6
.1
.4
1.1
.9
.0
-2.1
1.0
15.2

Durable manufacturing ........................
Lumber and products........................
Furniture and fixtures ......................
Stone, clay, and glass products.......
Primary metals ..................................
Fabricated metal products ...............
Industrial machinery and equipment
Electrical machinery ........................
Transportation equipment.................
Instruments.........................................
Miscellaneous manufactures ...........

24
25
32
33
34
35
36
37
38
39

.3
4.7
4.8
4.1
-3 .0
3.9
1.3
2.9
-.1
-2 .6
8.5

Nondurable manufacturing.......
Foods .......................................
Tobacco products ...................
Textile mill products .............
Apparel products....................
Paper and products.................
Printing and publishing.........
Chemicals and products .......
Petroleum products ...............
Rubber and plastics products ,
Leather and products.............

20
21
22
23
26
27
28
29
30
31

2.7
3.4
1.3
.7
-.7
.6
-.1
5.6
-2 .6
3.8
-2 .2

-.9
3.7
.1
-.2
.1
1.6
1.5
-3.8
-1.5
1.3
-1.4

-.8
3.0
-1.7
-2.3
-2 .4
-2.5
1.5
-1.6
-2.1
3.3
-4.4

1.0
2.2
-6.7
-2 .4
2.7
1.6
.8
.8
L7
-2 4

-.9
2.3
-.8
1.1
-1.6
-1.3
1.5
-4.5
3.6
2.4
6.6

10
12
13
14

1.7
-1.2
.0
3.6
4.2

-.8
.0
-.6
.5
-4.6

-.3
.6
.6
-5.8
8.4

-.6
-1.1
-4 .4
1.7
-.1

-1.2
-.2
3.6
-2.0
-6.0

-1 .4
-3.8
.1
-.8
-.2

-.6
-.4
-.6
-1.0
.2

.3
.8
-.4
.9
-1 .0

.5
.5
.4
-.2
1.4

-.3
-4.3
.2
2.1
.3

1.2
2.1
-5.5

2.3
1.0
.8

-1.5
-1.3
.5

1.1
1.1
-1.1

1.2
1.1
.6

.2
.1
.2

-.1
-.2
.1

-.2
-.5
2.4

1.1
1.4
-2.6

.2
.1
4.3

M ining..................................
Metal mining .................
Coal mining ...................
Oil and gas extraction ..
Stone and earth minerals
Supplementary groups
Total, excluding nuclear nondefense
Utilities sales to industry ...................
Industrial generation ..........................

N ote . Growth rates are calculated as the percentage change in the seasonally
adjusted index from the fourth quarter of the previous year to the fourth quarter
of the year specified. For 2000, the growth rates are calculated from the fourth
quarter of 1999 to the third quarter of 2000 and annualized.




1. Standard Industrial Classification; see table A.4, note 1.

149

Treasury and Federal Reserve
Foreign Exchange Operations
This report, presented by Peter R. Fisher, Executive
Vice President, Federal Reserve Bank o f New York,
and Manager, System Open Market Account, de­
scribes the foreign exchange operations o f the U.S.
Department o f the Treasury and the Federal Reserve
System fo r the period from October 2000 through
December 2000. Ryan Faulkner was primarily
responsible fo r preparing the report.
During the fourth quarter of 2000, the dollar appre­
ciated 5.7 percent against the yen and depreciated
6.4 percent against the euro. On a trade-weighted
basis, the dollar ended the quarter 1.0 percent weaker
against an index of major currencies. Movements in
the major currency pairs were largely influenced by
changes in market expectations for economic growth
in the United States, Europe, and Japan. Questions
about the pace of Japan’s economic recovery pres­
sured the yen against the major currencies, while the
dollar declined against the euro in December amid
signs of slower U.S. growth. U.S. monetary authori­
ties did not intervene in the foreign exchange markets
during the quarter.

M ARKET REACTION TO CHANGING GLOBAL
ECONOMIC GROWTH TRENDS

During the fourth quarter, releases of economic data
in the United States indicated continued low inflation
and a slowdown in the pace of U.S. economic growth.
Earlier in the quarter, market participants had
expected a steady near-term U.S. interest rate policy,
given the price pressures emanating from high energy
prices and tight U.S. labor markets. On November 15,
the Federal Open Market Committee (FOMC) left the
target federal funds rate unchanged at 6.5 percent and
maintained its statement that the balance of risks was
weighted toward inflationary pressures.
By early December, however, there was a sharp
downward shift in U.S. interest rate expectations,
prompted by (1) increasing signs of slower U.S.
growth, (2) comments by Federal Reserve Chair­
man Alan Greenspan that were interpreted as sug­
gesting the possibility of lower rates, and (3) weaker



1.

Trade-weighted G-3 currencies, 2000:Q4

Trade-weighted dollar

Trade-weighted euro
T rade-w eighted yen

N ote . In this and the charts that follow, the data are for business days except
as noted.
Source . Bloomberg L.P. and the Bank of England.

financial market conditions. Among the economic
data released during this period were weaker-thanexpected third-quarter GDP data (advance release),
November consumer confidence and National
Association of Purchasing Managers (NAPM) sur­
veys, October durable goods data, and Novem­
ber retail sales figures. As expectations for more
moderate growth solidified, many market partici­
pants also continued to lower their U.S. earn-

2.

Yield implied by the March federal funds futures contract,
2000:Q4

S o u r c e . Bloomberg L.P.

150

Federal Reserve Bulletin □ March 2001

ings forecasts. During the fourth quarter, the S&P 500
and Nasdaq Composite equity indexes, on balance,
fell 8.1 percent and 32.7 percent, respectively, with
some of their sharpest daily losses occurring in
December.
From November 28 to the end of the quarter, the
implied yield on the March federal funds futures
contract declined 40 basis points to 6.0 percent. Over
the same period, the yields on the two-year Treasury
note and thirty-year Treasury bond fell 76 and
24 basis points, respectively, leading the two- to
thirty-year coupon curve to return to a positive spread
for the first time since January 2000. On Decem­
ber 19, the FOMC left its target for the federal funds
rate unchanged, while moving its assessment of the
balance of risks away from inflationary pressures and
to one “weighted toward conditions that may gener­
ate economic weakness.”
In Europe, expectations for further interest rate
increases moderated over the period, in response to
signs of slower euro-area growth, the recovery of the
euro’s exchange value, and a decline in oil prices. At
the outset of the quarter, on October 5, the European
Central Bank (ECB) raised its minimum bid on its
refinancing operations 25 basis points to 4.75 per­
cent. In the press conference that followed the rate
announcement, ECB President Duisenberg explained
that the rate hike was aimed at containing inflationary
pressures “stemming from oil prices and the foreign
exchange rate of the euro.” After this decision, mar­
ket participants were divided over the possibility of
additional rate hikes by the ECB. German and Italian
business confidence surveys for September and Octo­
ber suggested a modest decline in industrial produc­
tion, but euro-area aggregate inflation and money
supply reports over the same period continued to
show modest upward pressure on prices. In addition,

3.

Yield implied by the March euribor contract, 2000: Q4

S o u r c e . Bloomberg L.P.




4.

Yields on short-term Japanese fixed-income securities,
2000:Q4

Source . Bloomberg L.P.

the euro remained at relatively low levels against
other major currencies, and oil prices continued to
climb.
During the second half of the quarter, the implied
yield on the three-month March euribor futures
contract fell 35 basis points to 4.73 percent, coinci­
dent with the appreciation of the euro against most
major currencies and the decline in oil prices that
began in late November. Market participants also
reduced their expectations for additional ECB tight­
ening as signs of a modest slowdown in euro-area
industrial activity emerged. The November industrial
confidence survey for the euro area declined for the
first time in three months to levels last seen in May
2000.

In Japan, reports on economic activity during the
quarter increased speculation that Japan’s economic
recovery was slowing. A report by the Economic
Planning Agency on November 10 and the release
of Japan’s third-quarter GDP report on December 4
indicated that although investment by large manufac­
turing firms remained strong, consumer spending and
export growth appeared to be stagnating. The yield
on the two-year Japanese government bond (JGB)
fell 13 basis points over the first two months of the
quarter to 0.48 percent. During the first two weeks of
December, short-dated Japanese yields briefly moved
higher in response to funding pressures ahead of the
year-end and amid related concerns about the transi­
tion to the real-time gross settlement system in Janu­
ary 2001. However, yields later declined after the
release of the December Tankan report and the gov­
ernment’s announcement of a smaller-than-expected
2001 fiscal budget. On balance, two-year and tenyear JGB yields ended the quarter 14 and 22 basis
points lower respectively.

Treasury and Federal Reserve Foreign Exchange Operations

6.

DECLINE OF R ISK APPETITE
DURING THE FOURTH QUARTER

In response to the initial shift in growth expecta­
tions for the Group of Three (G-3) economies and an
overall increase in market volatility, investors report­
edly adopted somewhat more neutral currency posi­
tions and were generally more risk averse during the
first half of the quarter. Net speculative positions in
currency futures on the International Monetary Mar­
ket (IMM), as well as flow survey data, suggested
that investors maintained a relatively small net long
position in euros and a substantial net short position
in yen.
Although there was little change in the reported net
speculative euro position, the euro area continued to
register net cross-border investment outflows but in
lower amounts than previous months. According to
the ECB, the net outflow of direct investment and
portfolio investment from the euro area totaled
€15.7 billion and €1.7 billion, respectively, in Octo­
ber, which was less than half the total net outflows
recorded in September.
Against the dollar, the euro fell to $0,825 on Octo­
ber 25, a new low, but then rebounded the following
week, as the ECB entered the market to buy euros on
November 3, 6, and 9, pushing the exchange rate to
close as high as $0,876. Against the yen, the euro
declined 2.4 percent during the first half of the quar­
ter. The dollar-yen exchange rate, meanwhile, did
not exhibit a noticeable trend and traded in a rela­
tively tight range, between ¥109.30 and ¥107.00,
over the first half of the quarter.
Implied volatility for one-month euro-dollar
options, which had increased to as high as 16.9 per­
cent on October 27, also declined after the ECB’s
interventions. Although the euro once again declined

5.

The euro against the dollar and the yen, 2000:Q4
per euro

1.00 —

Euro-yen

Euro-dollar

S o u r c e . Bloomberg L.P.




151

One-month euro-dollar option implied volatility
and risk reversals, 2000:Q4

Implied volatility

Nov.

Source . Bloomberg L.P.

against the dollar in mid-November, to as low as
$0,838 on November 24, market anxiety over further
euro depreciation remained relatively low, with onemonth euro-dollar option implied volatility fluctuat­
ing between 13 percent and 15 percent from midNovember to the end of the quarter. The premium for
one-month euro put options over one-month euro call
options, as measured by risk reversals, also declined
after the ECB interventions. The premium for euro
puts briefly rose as high as 0.6 percent in volatility
terms on October 26 and 27. However, during much
of November and throughout December, there was a
premium for one-month euro call options over onemonth euro put options.
C u r r e n c y M o v e m e n t s D o m in a t e d
b y E u ro S t r e n g t h a n d Ye n We a k n e s s
in t h e S e c o n d H a l f o f t h e Q u a r t e r
The second half of the quarter coincided with a sharp
appreciation of the euro and depreciation of the yen,
with investors taking more aggressive currency posi­
tions as growth and interest expectations for the G-3
economies solidified. According to data from the
IMM, the number of speculative net long euro posi­
tions increased nearly three-fold in mid-December to
reach its highest level since October 1999. The num­
ber of short speculative yen positions rose modestly
in mid-December to its highest level since February
2000. Against the dollar, the euro appreciated 9.9 per­
cent and the yen depreciated 4.8 percent during the
second half of the fourth quarter.
Against the dollar, the euro was largely supported
by reports of a narrowing in U.S.-euro-area growth
and interest rate differentials after the release of

152

7.

Federal Reserve Bulletin □ March 2001

Spread of two-year dollar swap rate over two-year euro
swap rate, 2000:Q4

edly maintained, and in some cases increased, dollar
and euro investments ahead of the year-end. In addi­
tion, foreign investors were net sellers of Japanese
equities for most of the fourth quarter. According to
the Ministry of Finance, Japanese investors bought
¥1.9 trillion in foreign stocks and bonds in the fourth
quarter, more than double the net amount purchased
during the third quarter. Over the same period, for­
eign investors sold ¥20.9 billion in Japanese stocks.

TREASURY AND FEDERAL RESERVE FOREIGN
Ex c h an g e R eserves

Source . Bloomberg L.P.

weaker-than-expected U.S. economic data at the end
of November. After declining just 3 basis points over
the first half of the quarter, from mid-November to
the end of December, the spread of the two-year
dollar swap rate over the two-year euro swap rate
declined 21 basis points to a spread of 110 basis
points.
The yen, meanwhile, weakened sharply against
the major currencies, falling 13.4 percent against the
euro. The yen’s depreciation reflected the growing
speculation surrounding the pace of the country’s
economic recovery, as well as uncertainty about the
future of Prime Minister Mori’s administration.
Although Prime Minister Mori won a no-confidence
vote by the parliament in late November, market
participants commented that Mori’s low popularity
ratings continued to cloud the political outlook.
The yen was also pressured by reported portfolio
reallocations away from Japan by domestic and for­
eign investors. Japanese institutional investors report8.

The dollar against the yen, 2000:Q4

S o u r c e . Bloomberg L.P.




At the end of the quarter, the current values of the
euro and yen reserve holdings totaled $15.7 billion
for the Federal Reserve System and $15.7 billion for
the Treasury’s Exchange Stabilization Fund. The U.S.
monetary authorities invest all of their foreign cur­
rency balances in a variety of instruments that yield
market-related rates of return and have a high degree
of liquidity and credit quality. To the extent practi­
cable, the investments are split evenly between the
Federal Reserve System and the Exchange Stabiliza­
tion Fund.
A portion of the U.S. monetary authorities’ foreign
exchange reserves are presently invested in gov­
ernment securities held outright or under repur­
chase agreement. Foreign currency reserves are also
invested in deposits at the Bank for International
Settlements and in facilities at other official institu­
tions. As of December 29, direct holdings of foreign
government securities totaled $13.9 billion, split
evenly between the two authorities. Foreign govern­
ment securities held under repurchase agreement to­
taled $2.8 billion at the end of the quarter and were
also split evenly between the two authorities.
The U.S. monetary authorities’ investments in mar­
ketable securities have been limited to obligations of
the sovereign issuer of the underlying currency; for
example, the securities previously denominated in
duetsche marks have been obligations of the German
government. Given the introduction of the euro, the
U.S. monetary authorities now expect to diversify
their euro-denominated holdings of government secu­
rities to include the obligations of additional euroarea sovereigns. This diversification will be gradual
and will apply to holdings of securities on an outright
basis and under repurchase agreements. The govern­
ment securities eligible for investment must meet the
highest standards of protection against credit, liquid­
ity, and operational risks. In the assessment of credit
quality within the euro area, the U.S. monetary
authorities take into account the public credit ratings

Treasury and Federal Reserve Foreign Exchange Operations

of each sovereign, as well as other institutional stan­
dards that afford a high level of safety. The assess­
ment of liquidity and operational risks includes the
1.

153

analysis of secondary market factors, such as bid-ask
spreads, average trade size, and the regularity and
size of issuance.
□

Foreign currency holdings of U.S. monetary authorities based on current exchange rates, 2000:Q4
Millions of dollars
Quarterly changes in balances, by source
Balance,

Item

S e p t.

M ).

Net purchases
and sales1

Effect of
sales2

Investment
income

Currency
valuation
adjustments3

0.0
0.0
0.0

2000

0.0
0.0
0.0

69.5
3.7
73.2

434.3
-492.8
-58.5

Federal Reserve System
O pen M arket A ccount
(SOMA)
E u r o .........................................................................
Japanese y e n ..........................................................
Total ...................................................................

6,872.1
8,733.7
15,605.8

Interest receivables (net)5 ...................................
Other cash flow from investments4 ...................

66.8
0.0

Total .................................................................

15,672.6

0.0

0.0

73.2

-58.5

U.S. T reasury E xchange
Stabilization F und (ESF)
E u r o .........................................................................
Japanese yen ..........................................................
Total ...................................................................

6,869.5
8,733.8
15,603.3

0.0
0.0
0.0

0.0
0.0
0.0

69.6
3.7
73.3

434.0
-492.8
-58.8

Interest receivables5 .............................................
Other cash flow from investments4 ...................

57.6
0.0

Total .................................................................

15,660.9

Balance,
Dec. 31, 2000

7,375.9
8,244.6
15,620.5
9.7
0.0

76.5
0.0

9.7

15,697.0

7,373.1
8,244.7
15,617.8
3.6

0.0

0.0

N o t e . Figures may not sum to totals because of rounding.

1. Purchases and sales for the purpose of this table include foreign cur­
rency sales and purchases related to official activity, swap drawings and repay­
ments, and warehousing.
2. This figure is calculated using marked-to-market exchange rates; it
represents the difference between the sale exchange rate and the most recent
revaluation exchange rate. Realized profits and losses on sales of foreign cur­
rencies, computed as the difference between the historical cost-of-acquisition
exchange rate and the sale exchange rate, are reflected in table 2.

2.

Interest
accrual
and other4

Net profits or losses (-) on U.S. Treasury
and Federal Reserve foreign exchange operations,
based on historical cost-of-acquisition exchange rates,
2000:Q4

73.3

-58.8

61.2
0.0

-3.6

15,679.0

3. Foreign currency balances are marked to market monthly at month-end
exchange rates.
4. Values are cash flow differences from payments and collection of funds
between quarters.
5. Interest receivables for the ESF are revalued at month-end exchange rates.
Interest receivables for the Federal Reserve System are carried at average cost
of acquisition and are not marked to market until interest is paid.
. . . Not applicable.

3.

Reciprocal currency arrangements, December 31, 2000
Millions of dollars
Institution

Amount of
facility

Outstanding,
Dec. 31, 2000

Millions of dollars

Period and item

Federal
Reserve
System Open
Market Account

Reciprocal currency
arrangements

U.S. Treasury
Exchange
Stabilization
Fund

2,000
3.000

Total ..................................................

Valuation profits and losses on
outstanding assets and liabilities,
Sept. 30, 2000
E u ro......................................................
Japanese yen .......................................

-1,370.9
1,687.5

-1,587.3
1,899.7

Total ...............................................

316.6

312.4

5.000

0.0

Federal Reserve and U.S. Treasury
Exchange Stabilization Fund
currency arrangements
Bank of M exico...................................

0.0
0.0

0.0
0.0

Total ................................................

0.0

0.0

Valuation profits and losses on
outstanding assets and liabilities,
Dec. 31, 2000
E uro......................................................
Japanese yen .......................................

-936.6
1,194.7

-1,153.3
1,406.9

Total ................................................

258.1

253.6

3.000

0.0

3.000

Realized profits and losses
from foreign currency sales,
Sept. 30, 2000-Dec. 31, 2000
E uro......................................................
Japanese yen .......................................




0.0
0.0

0.0

154

Industrial Production and Capacity Utilization
for January 2001
Released fo r publication February 16
Industrial production fell 0.3 percent in January.
Manufacturing output edged down 0.1 percent after a
1.1 percent drop in December; the December decline
was likely exacerbated by bad weather in certain
Industrial production

areas. Excluding motor vehicles and parts, manu­
facturing output increased 0.3 percent in January
after having fallen 0.8 percent in December. Output
at utilities dropped back 6.0 percent as temperatures
moved closer to seasonal norms after the extreme
cold in December. Production in mining moved up
Ratio ^

1992 = 100

Excluding high-tech industries
85

Capacity utilization

Percent of capacity

85
80
75
70

Percent of capacity

90

85

80

1995

1997

1999

2001

High-tech industries are defined as semiconductors and related electronic
components (SIC 3672-9), computers (SIC 357), and communications equip­
ment (SIC 366).




Shaded areas are periods of business recession as defined by the NBER.

155

Industrial production and capacity utilization, January 2001
Industrial production, index, 1992=100
Percent change
Category

2000

2001
20001

2001'

Jan. 2000
to
Jan. 2001

Oct.r

Dec.r

Jan.f

Oct.'

Nov.r

Dec.r

Jan.?

148.7

148.2

147.4

147.0

-.2

-.3

-.5

-.3

2.4

148.5

148.1

147.3

-.3

-.3

-.6

136.3
122.7
200.0
142.3
171.1

136.4
122.7
200.4
140.9
169.6

135.9
122.4
199.3
139.5
168.4

135.0
121.0
198.9
138.8
168.7

-.3
-.9
.3
-.6
-.1

.0
.0
.2
-.9
-.9

-.4
-.3
-.5
-1.0
-.7

-.6
-1.1
-.2
-.5
.2

1.3
-.9
7.4
-2.6
4.2

154.9
197.6
116.3
100.1
120.0

Total .....................................................

Nov.r

154.0
196.7
115.5
99.9
123.8

152.4
194.9
114.0
100.2
132.6

152.3
194.4
114.2
102.3
124.7

-.1
-.4
.3
-.3
-1 .4

-.6
-.4
-.7
-.2
3.2

-1.1
-.9
-1.3
.3
7.1

-.1
-.3
.2
2.1
-6 .0

2.0
5.0
-1.6
3.7
5.8

2001

Capacity,
percent
change,
to
Jan. 2001

Major market groups
Consumer goods ..................................

Major industry groups

M em o

Capacity utilization, percent

Average,
1967-00

Low,
1982

High,
1988-89

Total

82.1

71.1

Manufacturing...............
Advanced processing
Primary processing ..
M inin g............................
Utilities ..........................

81.1
80.6
82.2
87.4
87.6

69.0
71.0
65.7
80.3
75.9

Jan.

Oct.r

Nov.r

D ec/

Jan.p

85.4

81.9

82.0

81.4

80.7

80.2

4.5

85.7
84.2
88.3
88.0
92.6

81.2
79.4
85.1
84.5
90.0

81.2
79.9
84.5
86.3
89.5

80.4
79.7
82.8
86.2
92.1

79.2
78.8
81.0
86.6
98.3

78.9
78.6
80.5
88.5
92.2

5.0
2.7
8.5
-1.0
3.4

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

2.1 percent. At 147.0 percent of its 1992 average,
industrial production was 2.4 percent higher than
in January 2000. The rate of capacity utilization
for total industry fell to 80.2 percent in January, a
level almost 2 percentage points below its 1967-2000
average.

M ARK ET GROUPS

The index for consumer goods fell 1.1 percent in
January, with decreases of about 5 percent in the
production both of automotive and of energy prod­
ucts. A drop of 2.8 percent in the production of
durable consumer goods reflected the weakness in
automotive products and a sharp decline in home
electronics. The production of nondurable consumer
goods other than energy products rose 0.3 percent
and thereby reversed a third of the decline posted in
December.
The output of business equipment slipped 0.2 per­
cent in January. The index for transit equipment
dropped 3.2 percent (mainly because of another



2000

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

sharp decline in motor vehicles), and the production
of industrial and other equipment fell 0.5 percent
(mainly because of a sharp drop in farm equip­
ment). The output of information processing equip­
ment increased 1.2 percent after having been flat in
December; on balance, production in this group
of industries has slowed noticeably since last
summer.
The production of construction supplies contracted
again in January, falling 0.5 percent, and the index is
now 2.6 percent below its year-ago level. The output
of materials inched up 0.2 percent: The indexes for
durable materials and energy materials were up mod­
erately and the index for nondurable materials was
unchanged. Among durable materials industries, the
output of semiconductors, printed circuit boards, and
other electronic components posted a gain in January
that was similar to those seen in recent months.
However, the consumer parts group was hit by
another decline in the production of original equip­
ment parts for motor vehicles. Within nondurable
materials, a 1.7 percent gain in the production of
paper materials, which had fallen sharply in Novem­

156

Federal Reserve Bulletin □ March 2001

ber and December, was largely offset by further
declines in chemicals and textiles.

In d u s t r y G r o u p s
Manufacturing output declined 0.1 percent in Janu­
ary, with a 0.3 percent decrease in the production
of durable goods and a 0.2 percent increase in non­
durable goods. Among durable goods, the losses
were concentrated in motor vehicles and parts, lum­
ber, furniture and fixtures, and primary metals. The
largest increases in output were in the electrical
machinery, instruments, and miscellaneous manu­
facturing industries. The output of nondurables,
which declined, on balance, over the previous six
months, posted a modest uptick in January, with
small but widespread gains.
The factory operating rate declined further, to
78.9 percent in January, 23 percentage points below
/4




its September level and the lowest level since early
1992. In recent months, capacity utilization has fallen
significantly in the transportation equipment and pri­
mary metals industries. The operating rate at utilities
fell back to 92.2 percent in January after having been
at the abnormally high level of 98.3 percent in
December. The operating rate for mining, 88.5 per­
cent, was lifted by higher-than-average readings in
the coal mining and oil and gas extraction industries.

Ne w Release

form at

Beginning with the February 16 issue, the G.17
statistical release has been redesigned. Special
aggregates have been added. Although some detailed
industry data are no longer listed in the regular
release, these series continue to be available on
the Federal Reserve Board’s public web site
(www.federalreserve.gov/releases/gl7).
□

157

Testimony of Federal Reserve Officials
Statement o f Alan Greenspan, Chairman, before the
Committee on the Budget, U.S. Senate, January 25,
2001
I am pleased to appear here today to discuss some
of the important issues surrounding the outlook for
the federal budget and the attendant implications for
the formulation of fiscal policy. In doing so, I want to
emphasize that I speak for myself and not necessarily
for the Federal Reserve.
The challenges you face both in shaping a budget
for the coming year and in designing a longer-run
strategy for fiscal policy were brought into sharp
focus by the release last week of the Clinton Admin­
istration’s final budget projections, which showed
further upward revisions of on-budget surpluses for
the next decade. The Congressional Budget Office
(CBO) also is expected to again raise its projections
when it issues its report next week.
The key factor driving the cumulative upward revi­
sions in the budget picture in recent years has been
the extraordinary pickup in the growth of labor pro­
ductivity experienced in this country since the mid1990s. Between the early 1970s and 1995, output per
hour in the nonfarm business sector rose about
W 2 percent per year, on average. Since 1995, how­
ever, productivity growth has accelerated markedly,
about doubling the earlier pace, even after taking
account of the impetus from cyclical forces. Though
hardly definitive, the apparent sustained strength in
measured productivity in the face of a pronounced
slowing in the growth of aggregate demand during
the second half of last year was an important test
of the extent of the improvement in structural produc­
tivity. These most recent indications have added to
the accumulating evidence that the apparent increases
in the growth of output per hour are more than
transitory.
It is these observations that appear to be causing
economists, including those who contributed to the
Office of Management and Budget (OMB) and the
CBO budget projections, to raise their forecasts of
the economy’s long-term growth rates and budget
surpluses. This increased optimism receives support
from the forward-looking indicators of technical
innovation and structural productivity growth, which
have shown few signs of weakening despite the



marked curtailment in recent months of capital
investment plans for equipment and software.
To be sure, these impressive upward revisions to
the growth of structural productivity and economic
potential are based on inferences drawn from eco­
nomic relationships that are different from anything
we have considered in recent decades. The resulting
budget projections, therefore, are necessarily subject
to a relatively wide range of error. Reflecting the
uncertainties of forecasting well into the future,
neither the OMB nor the CBO projects productivity
to continue to improve at the stepped-up pace of the
past few years. Both expect productivity growth rates
through the next decade to average roughly 2 'A to
21/2 percent per year—far above the average pace
from the early 1970s to the mid-1990s, but still below
that of the past five years.
Had the innovations of recent decades, especially
in information technologies, not come to fruition,
productivity growth during the past five to seven
years, arguably, would have continued to languish
at the rate of the preceding twenty years. The sharp
increase in prospective long-term rates of return on
high-tech investments would not have emerged as it
did in the early 1990s, and the associated surge in
stock prices would surely have been largely absent.
The accompanying wealth effect, so evidently critical
to the growth of economic activity since the mid1990s, would never have materialized.
In contrast, the experience of the past five to seven
years has been truly without recent precedent. The
doubling of the growth rate of output per hour has
caused individuals’ real taxable income to grow
nearly two and one-half times as fast as it did over
the preceding ten years and resulted in the substantial
surplus of receipts over outlays that we are now
experiencing. Not only did taxable income rise with
the faster growth of gross domestic product, but the
associated large increase in asset prices and capital
gains created additional tax liabilities not directly
related to income from current production.
The most recent projections from the OMB indi­
cate that, if current policies remain in place, the total
unified surplus will reach $800 billion in fiscal year
2011, including an on-budget surplus of $500 billion.
The CBO reportedly will be showing even larger
surpluses. Moreover, the admittedly quite uncertain

158

Federal Reserve Bulletin □ March 2001

long-term budget exercises released by the CBO
last October maintain an implicit on-budget surplus
under baseline assumptions well past 2030 despite
the budgetary pressures from the aging of the babyboom generation, especially on the major health
programs.
The most recent projections, granted their tenta­
tiveness, nonetheless make clear that the highly desir­
able goal of paying off the federal debt is in reach
before the end of the decade. This is in marked
contrast to the perspective of a year ago when the
elimination of the debt did not appear likely until the
next decade.
But continuing to run surpluses beyond the point at
which we reach zero or near-zero federal debt brings
to center stage the critical longer-term fiscal policy
issue of whether the federal government should accu­
mulate large quantities of private (more technically,
nonfederal) assets. At zero debt, the continuing uni­
fied budget surpluses currently projected imply a
major accumulation of private assets by the federal
government. This development should factor mate­
rially into the policies you and the Administration
choose to pursue.
I believe, as I have noted in the past, that the
federal government should eschew private asset accu­
mulation because it would be exceptionally difficult
to insulate the government’s investment decisions
from political pressures. Thus, over time, having the
federal government hold significant amounts of pri­
vate assets would risk sub-optimal performance by
our capital markets, diminished economic efficiency,
and lower overall standards of living than would be
achieved otherwise.
Short of an extraordinarily rapid and highly unde­
sirable short-term dissipation of unified surpluses
or a transferring of assets to individual privatized
accounts, it appears difficult to avoid at least some
accumulation of private assets by the government.
Private asset accumulation may be forced upon us
well short of reaching zero debt. Obviously, savings
bonds and state and local government series bonds
are not readily redeemable before maturity. But the
more important issue is the potentially rising cost
of retiring marketable Treasury debt. While shorterterm marketable securities could be allowed to run
off as they mature, longer-term issues would have to
be retired before maturity through debt buybacks.
The magnitudes are large: As of January 1, for exam­
ple, there was in excess of three quarters of a trillion
dollars in outstanding nonmarketable securities, such
as savings bonds and state and local series issues, and
marketable securities (excluding those held by the
Federal Reserve) that do not mature and could not be



called before 2011. Some holders of long-term Trea­
sury securities may be reluctant to give them up,
especially those who highly value the risk-free status
of those issues. Inducing such holders, including
foreign holders, to willingly offer to sell their securi­
ties prior to maturity could require paying premiums
that far exceed any realistic value of retiring the debt
before maturity.
Decisions about what type of private assets to
acquire and to which federal accounts they should be
directed must be made well before the policy is
actually implemented, which could occur in as little
as five to seven years from now. These choices have
important implications for the balance of saving and,
hence, investment in our economy. For example,
transferring government saving to individual private
accounts as a means of avoiding the accumulation of
private assets in the government accounts could sig­
nificantly affect how social security will be funded in
the future.
Short of some privatization, it would be preferable
in my judgment to allocate the required private assets
to the social security trust funds, rather than to
on-budget accounts. To be sure, such trust fund
investments are subject to the same concerns about
political pressures as on-budget investments would
be. The expectation that the retirement of the babyboom generation will eventually require a drawdown
of these fund balances does, however, provide some
mitigation of these concerns.
Returning to the broader picture, I continue to
believe, as I have testified previously, that all else
being equal, a declining level of federal debt is desir­
able because it holds down long-term real interest
rates, thereby lowering the cost of capital and elevat­
ing private investment. The rapid capital deepening
that has occurred in the U.S. economy in recent years
is a testament to these benefits. But the sequence of
upward revisions to the budget surplus projections
for several years now has reshaped the choices and
opportunities before us. Indeed, in almost any cred­
ible baseline scenario, short of a major and prolonged
economic contraction, the full benefits of debt reduc­
tion are now achieved before the end of this
decade—a prospect that did not seem likely only a
year or even six months ago.
The most recent data significantly raise the prob­
ability that sufficient resources will be available to
undertake both debt reduction and surplus-lowering
policy initiatives. Accordingly, the tradeoff faced
earlier appears no longer an issue. The emerging key
fiscal policy need is to address the implications of
maintaining surpluses beyond the point at which
publicly held debt is effectively eliminated.

Testimony of Federal Reserve Officials

The time has come, in my judgment, to consider a
budgetary strategy that is consistent with a preemp­
tive smoothing of the glide path to zero federal debt
or, more realistically, to the level of federal debt that
is an effective irreducible minimum. Certainly, we
should make sure that social security surpluses are
large enough to meet our long-term needs and seri­
ously consider explicit mechanisms that will help
ensure that outcome. Special care must be taken not
to conclude that wraps on fiscal discipline are no
longer necessary. At the same time, we must avoid a
situation in which we come upon the level of irreduc­
ible debt so abruptly that the only alternative to the
accumulation of private assets would be a sharp
reduction in taxes and/or an increase in expenditures,
because these actions might occur at a time when a
sizable economic stimulus would be inappropriate. In
other words, budget policy should strive to limit
potential disruptions by making the on-budget sur­
plus economically inconsequential when the debt is
effectively paid off.
In general, as I have testified previously, if long­
term fiscal stability is the criterion, it is far better, in
my judgment, that the surpluses be lowered by tax
reductions than by spending increases. The flurry of
increases in outlays that occurred near the conclusion
of last fall’s budget deliberations is troubling because
it makes the previous year’s lack of discipline less
likely to have been an aberration.
To be sure, with the burgeoning federal surpluses,
fiscal policy has not yet been unduly compromised
by such actions. But history illustrates the difficulty
of keeping spending in check, especially in programs
that are open-ended commitments, which too often
have led to much larger outlays than initially envi­
sioned. It is important to recognize that government
expenditures are claims against real resources and
that, while those claims may be unlimited, our capac­
ity to meet them is ultimately constrained by the
growth in productivity. Moreover, the greater the
drain of resources from the private sector, arguably,
the lower the growth potential of the economy. In
contrast to most spending programs, tax reductions
have downside limits. They cannot be open-ended.
Lately there has been much discussion of cutting
taxes to confront the evident pronounced weakening
in recent economic performance. Such tax initiatives,
however, historically have proved difficult to imple­
ment in the time frame in which recessions have
developed and ended. For example, although Presi­
dent Ford proposed in January of 1975 that withhold­
ing rates be reduced, this easiest of tax changes was
not implemented until May, when the recession was
officially over and the recovery was gathering force.



159

Of course, had that recession lingered through the
rest of 1975 and beyond, the tax cuts would certainly
have been helpful. In today’s context, in which tax
reduction appears required in any event over the next
several years to assist in forestalling the accumula­
tion of private assets, starting that process sooner
rather than later likely would help smooth the transi­
tion to longer-term fiscal balance. And should current
economic weakness spread beyond what now appears
likely, having a tax cut in place may, in fact, do
noticeable good.
As for tax policy over the longer run, most econo­
mists believe that it should be directed at setting rates
at the levels required to meet spending commitments,
while doing so in a manner that minimizes distor­
tions, increases efficiency, and enhances incentives
for saving, investment, and work.
In recognition of the uncertainties in the economic
and budget outlook, it is important that any long-term
tax plan, or spending initiative for that matter, be
phased in. Conceivably, it could include provisions
that, in some way, would limit surplus-reducing
actions if specified targets for the budget surplus
and federal debt were not satisfied. Only if the prob­
ability was very low that prospective tax cuts or new
outlay initiatives would send the on-budget accounts
into deficit, would unconditional initiatives appear
prudent.
The reason for caution, of course, rests on the
tentativeness of our projections. What if, for exam­
ple, the forces driving the surge in tax revenues in
recent years begin to dissipate or reverse in ways that
we do not now foresee? Indeed, we still do not have a
full understanding of the exceptional strength in indi­
vidual income tax receipts during the latter 1990s. To
the extent that some of the surprise has been indi­
rectly associated with the surge in asset values in the
1990s, the softness in equity prices over the past year
has highlighted some of the risks going forward.
Indeed, the current economic weakness may reveal
a less favorable relationship between tax receipts,
income, and asset prices than has been assumed in
recent projections. Until we receive full detail on the
distribution by income of individual tax liabilities for
1999, 2000, and perhaps 2001, we are making little
more than informed guesses of certain key relation­
ships between income and tax receipts.
To be sure, unless later sources do reveal major
changes in tax liability determination, receipts should
be reasonably well-maintained in the near term, as
the effects of earlier gains in asset values continue to
feed through with a lag into tax liabilities. But the
longer-run effects of movements in asset values are
much more difficult to assess, and those uncertainties

160

Federal Reserve Bulletin □ March 2001

would intensify should equity prices remain signifi­
cantly off their peaks. Of course, the uncertainties in
the receipts outlook do seem less troubling in view of
the cushion provided by the recent sizable upward
revisions to the ten-year surplus projections. But the
risk of adverse movements in receipts is still real,
and the probability of dropping back into deficit as
a consequence of imprudent fiscal policies is not
negligible.
In the end, the outlook for federal budget surpluses
rests fundamentally on expectations of longer-term
trends in productivity, fashioned by judgments about
the technologies that underlie these trends. Econo­
mists have long noted that the diffusion of technology
starts slowly, accelerates, and then slows with matu­
rity. But knowing where we now stand in that
sequence is difficult—if not impossible—in real time.
As the CBO and the OMB acknowledge, they have
been cautious in their interpretation of recent produc­
tivity developments and in their assumptions going
forward. That seems appropriate given the uncertain­
ties that surround even these relatively moderate
estimates for productivity growth. Faced with these
uncertainties, it is crucial that we develop budgetary
strategies that deal with any disappointments that
could occur.
That said, as I have argued for some time, there is a
distinct possibility that much of the development and




diffusion of new technologies in the current wave of
innovation still lies ahead, and we cannot rule out
productivity growth rates greater than is assumed
in the official budget projections. Obviously, if that
turns out to be the case, the existing level of tax rates
would have to be reduced to remain consistent with
currently projected budget outlays.
The changes in the budget outlook over the past
several years are truly remarkable. Little more than a
decade ago, the Congress established budget controls
that were considered successful because they were
instrumental in squeezing the burgeoning budget
deficit to tolerable dimensions. Nevertheless, despite
the sharp curtailment of defense expenditures under
way during those years, few believed that a surplus
was anywhere on the horizon. And the notion that the
rapidly mounting federal debt could be paid off would
not have been taken seriously.
But let me end on a cautionary note. With today’s
euphoria surrounding the surpluses, it is not difficult
to imagine the hard-earned fiscal restraint developed
in recent years rapidly dissipating. We need to resist
those policies that could readily resurrect the deficits
of the past and the fiscal imbalances that followed in
their wake.
□

161

Announcements
F e d e r a l O p e n M a r k e t c o m m it t e e A c t io n s
Ch a n g e s i n t h e D is c o u n t r a t e

and

The Federal Open Market Committee decided on
January 3, 2001, to lower its target for the federal
funds rate by 50 basis points to 6 percent.
In a related action, the Board of Governors
approved a 25 basis point decrease in the discount
rate to 53 percent, the level requested by seven
A
Reserve Banks. The Board also indicated that it
stands ready to approve a further reduction of
25 basis points in the discount rate to 5V2 percent on
the requests of Federal Reserve Banks.
These actions were taken in light of further weak­
ening of sales and production, and in the context of
lower consumer confidence, tight conditions in some
segments of financial markets, and high energy prices
sapping household and business purchasing power.
Moreover, inflation pressures remain contained.
Nonetheless, to date there is little evidence to suggest
that longer-term advances in technology and associ­
ated gains in productivity are abating.
The Committee continues to believe that, against
the background of its long-run goals of price stability
and sustainable economic growth and of the informa­
tion currently available, the risks are weighted mainly
toward conditions that may generate economic weak­
ness in the foreseeable future.
In taking the discount rate action, the Federal
Reserve Board approved requests submitted by the
boards of directors of the Federal Reserve Banks
of New York, Cleveland, Atlanta, St. Louis, Kansas
City, Dallas, and San Francisco.
Completing action initiated on January 3, 2001, the
Board of Governors on January 4 approved a dis­
count rate of 5x percent, acting on requests submit­
h
ted by the boards of directors of all twelve Reserve
Banks.
On January 3, in conjunction with the Federal
Open Market Committee’s decision to lower the fed­
eral funds rate target by 50 basis points, the Board
approved pending requests from Federal Reserve
Banks to reduce the discount rate by 25 basis points,
to 53 percent, and said that it would approve a
/4
further 25 basis point reduction once the Reserve
Banks submitted requests.




The discount rate is the rate charged depository
institutions when they borrow short-term adjustment
credit from their District Federal Reserve Banks. The
rate change was effective immediately except in the
St. Louis District, where the rate became effective as
of Friday, January 5, 2001.
The Federal Open Market Committee at its meet­
ing on January 31, 2001, decided to lower its target
for the federal funds rate by 50 basis points to
5Vi percent. In a related action, the Board of Gover­
nors approved a 50 basis point reduction in the dis­
count rate to 5 percent.
Consumer and business confidence has eroded
further, exacerbated by rising energy costs that con­
tinue to drain consumer purchasing power and press
on business profit margins. Partly as a consequence,
retail sales and business spending on capital equip­
ment have weakened appreciably. In response, manu­
facturing production has been cut back sharply, with
new technologies appearing to have accelerated the
response of production and demand to potential
excesses in the stock of inventories and capital
equipment.
Taken together, and with inflation contained, these
circumstances have called for a rapid and force­
ful response of monetary policy. The longer-term
advances in technology and accompanying gains in
productivity, however, exhibit few signs of abating,
and these gains, along with the lower interest rates,
should support growth of the economy over time.
Nonetheless, the Committee continues to believe
that against the background of its long-run goals of
price stability and sustainable economic growth and
of the information currently available, the risks are
weighted mainly toward conditions that may generate
economic weakness in the foreseeable future.
In taking the discount rate action, the Federal
Reserve Board approved requests submitted by the
boards of directors of the Federal Reserve Banks
of New York, Philadelphia, Cleveland, Atlanta, Chi­
cago, St. Louis, Minneapolis, Dallas, and San Fran­
cisco. The Board subsequently approved similar
requests submitted by the boards of directors of the
Federal Reserve Banks of Boston and Richmond,
effective January 31, and by the board of directors of

162

Federal Reserve Bulletin □ March 2001

the Federal Reserve Bank of Kansas City, effective
February 1.

A p p o in t m e n t s o f n e w M e m b e r s
TO THE CONSUMER AD VISO RY COUNCIL
AND DESIGNATION OF A
N E W CHAIR AND VICE CHAIR

The Federal Reserve Board named ten new members
to its Consumer Advisory Council for three-year
terms and designated a new Chair and Vice Chair of
the Council for 2001.
The council advises the Board on the exercise of
its responsibilities under the Consumer Credit Protec­
tion Act and on other matters in the area of consumer
financial services. The council meets three times a
year in Washington, D.C.
Lauren Anderson was designated chair; her term
runs through December 2001. Ms. Anderson is
executive director for Neighborhood Housing Ser­
vices of New Orleans, Inc. in New Orleans, Louisi­
ana. Previously, she was a project manager for the
Department of Housing and Economic Development
for Jersey City, New Jersey, and a staff attorney for
the American Civil Liberties Union.
Dorothy Broadman was designated vice chair;
her term on the Council ends in December 2002.
Ms. Broadman is senior vice president of Cal Fed
Bank, FSB, in San Francisco and is manager of the
bank’s Community Development Department. Previ­
ously, she held positions at Citibank and Wells Fargo.
The ten new members are the following:
Anthony S. Abbate
Saddlebrook, N.J.
Mr. Abbate is the president and chief executive officer of
Interchange Bank. The bank has a diverse market and is
currently involved in several affordable housing programs.
He is a frequent speaker and author and has addressed staff
motivation, the merger activity in the banking industry, and
the importance of technology for small financial institu­
tions. He has been active in community and banking orga­
nizations, including the Commerce and Industry Associa­
tion, the Community Bankers Association of New Jersey,
and the Independent Community Bankers of America and
has received many awards and recognition for his years of
community service.

the Comptroller of the Currency. He is active in com ­
munity and professional organizations and serves on the
boards of the Community Development Corporation and
the Brownsville Local Development Council. He is secre­
tary and past chairman of the Greater Brownsville MultiBank CDFI and a regional vice chairman o f the National
Bankers Association.
Constance K. Chamberlin
Richmond, Va.
Ms. Chamberlin is president and chief executive officer of
Housing Opportunities Made Equal of Richmond, Inc. She
was a founding member and served as president o f the
National Fair Housing Alliance. She serves on the Subcom­
mittee on Increasing M inority Homeownership of the Vir­
ginia Housing Study Commission (an arm of the Virginia
General Assembly), and has been active in many other
groups concerned with increasing access to housing,
including the Virginia Homeownership Partnership Execu­
tive Committee and the Fair Housing Working Group of
the U.S. Department of Housing and Urban Development.
She is particularly knowledgeable about redlining, fair
lending, and homeowners’ insurance issues.
Earl Jarolimek
Fargo, N.D.
Since 1989, Mr. Jarolimek has been vice president and
corporate compliance officer for Community First Bankshares. He is responsible for a comprehensive compliance
program for all corporate affiliates. He has been active in
the American Bankers Association, having served as chair
of the Compliance Executive Committee, has been a past
member of the Institute of Certified Bankers Advisory
Board for Compliance Certification, and is a current mem­
ber of the Advisory Board for the ABA National Compli­
ance Schools. He has provided testimony for the Federal
Reserve Board and for the U.S. Department of Housing and
Urban Development related to the Truth in Lending Act
and the Real Estate Settlement Procedures Act.
J. Patrick Liddy
Cincinnati, Ohio
Mr. Liddy is the vice president and director of compliance
for Fifth Third Bancorp. Mr. Liddy is responsible for bank
and trust compliance for the Ohio, Kentucky, Indiana, and
Florida banks and for the Arizona thrift. He reconciles
bank practices with numerous federal and differing state
laws and regulations. Other areas of focus for Mr. Liddy
are compliance training, consumer issues, and regulatory
simplification. He is active in community organizations,
such as the Cincinnati Area United Way and the Fine Arts
Fund of Cincinnati.

M anuel Casanova, Jr.
Brownsville, Tex.

Oscar Marquis
Park Ridge, 111.

Mr. Casanova, a certified public accountant, has been
executive vice president and director of International Bank
of Com merce-Brownsville for six years. He is responsible
for the lending, international, and compliance departments.
Previously, he worked as a bank examiner for the Office of

Mr. Marquis is counsel for the Privacy and D ata Protection
Group of the Hunton and W illiams Law Firm. Previously,
Mr. Marquis was vice president and general counsel of
Trans Union for more than fifteen years. He was respon­
sible for all legal, government, and public affairs matters.




Announcements

He directed and managed all functions of the Law Division
and was involved in all major company strategic and
business decisions and business initiatives. Mr. Marquis is
an expert in privacy, credit, and credit-reporting legislation
and regulations. He has provided testimony before House
and Senate committees and has represented the company
on radio and television programs, including Nightline. He
also speaks frequently to industry and consumer groups.
Nancy Pierce
Kansas City, Mo.
Ms. Pierce is the president and chief executive officer of
the Mazuma Credit Union. She is knowledgeable about
community reinvestment, consumer protection regulations,
and financial services. She has served as chair and member
of the board of the Missouri Credit Union League and as
chairman of the board of the Credit Union National Asso­
ciation. Ms. Pierce has worked with the Kansas City
Neighborhood Alliance, the Concerned Clergy Coalition,
and others to promote and support financial literacy and
greater access to credit for low- to moderate-income bor­
rowers. This year she received the Credit Union’s Herb
Wegner Award for Individual Achievement.

Council members whose terms continue through
2001 are the following:
M alcolm M. Bush
President
The Woodstock Institute
Chicago, Illinois
Mary Ellen Domeier
President
State Bank & Trust
Company of New Ulm
New Ulm, Minnesota
John C. Gamboa
Executive Director
The Greenlining Institute
San Francisco, California
W illie Jones
Deputy Director
The Community Builders,
Inc.
Boston, Massachusetts

Ronald A. Reiter
San Francisco, Calif.
Mr. Reiter is a supervising deputy attorney general in the
California Department of Justice’s Consumer Law Section.
He is knowledgeable about federal and California con­
sumer credit and protection legislation and regulations. He
has drafted legislation protecting consumers, has litigated
consumer protection cases, and has been a leader in devel­
oping procedures for defending foreclosure actions in Cali­
fornia. Mr. Reiter has served as a member and chair of the
State Bar of California’s Consumer Advocacy and Con­
sumer Financial Services Committees.
Elizabeth Renuart
Boston, Mass.
Since 1996, Ms. Renuart has been staff attorney for the
National Consumer Law Center. She represents the inter­
ests of low-income consumers at trial, in the appeals courts,
and before Congress. She has also authored reports and
articles on consumer credit and has taught consumer law to
legal services and private consumer attorneys. Based on
her knowledge and understanding of credit laws and poli­
cies, Ms. Renuart is considered an expert in consumercredit litigation. She has worked for legal service organiza­
tions since 1977.
Frank Torres, Jr.
Washington, D.C.
Mr. Torres is the legislative counsel in the Washington,
D.C., office of Consumers Union. He is responsible for
advocating for consumers before congressional agencies
and the Federal Reserve Board on issues related to finan­
cial services. Mr. Torres’s areas of expertise include access
to financial services, privacy, subprime lending, electronic
commerce, consumer credit, and mortgage lending policy.
Previously, he served as the director of the Governor of
G uam ’s Washington Liaison Office.



163

Anne S. Li
Executive Director
New Jersey Community
Loan Fund
Trenton, New Jersey
Marta Ramos
Vice President & CRA
Officer
Banco Popular de
Puerto Rico
San Juan, Puerto Rico
Gary S. Washington
Senior Vice President
ABN AMRO
Chicago, Illinois
Robert L. W ynn II
Financial Education Officer
Department of Financial
Institutions
Madison, W isconsin

Council members whose terms continue through
2002 are the following:
Teresa Bryce
General Counsel
Nexstar Financial
Corporation
St. Louis, Missouri
Robert Cheadle
Chief Executive Officer
Indian Territory
Development
Ada, Oklahoma
Lester Wm. Firstenberger
Deputy General Counsel
American General Finance
Evansville, Indiana

M. Dean Keyes
Senior Vice President
Firstar
St. Louis, M issouri
Jeremy Nowak
Chief Executive Officer
The Reinvestment Fund
Philadelphia, Pennsylvania
Russell Schrader
Senior Vice President and
Assistant General Counsel
Visa U.S.A.
San Francisco, California

INTERIM RULE ON FINANCIAL ACTIVITIES

The Federal Reserve Board has published an interim
rule defining three categories of activities listed in
section 4(k)(5) of the Bank Holding Company Act as
financial in nature or incidental to a financial activ­
ity. The interim rule also establishes a mechanism
through which financial holding companies or other
interested parties may request that the Board find, by
order, that particular specific activities fall within one
of the three categories.

164

Federal Reserve Bulletin □ March 2001

The Board voted to approve the interim rule at its
meeting on December 21, 2000, and it became effec­
tive on January 2, 2001.

G u id a n c e f o r F in a n c ia l in s t it u t io n s
A n t i -M o n e y -La u n d e r in g P r o g r a m s

on

The Federal Reserve Board on January 16, 2001,
disseminated guidance designed to assist financial
institutions in applying enhanced scrutiny to transac­
tions that may involve the proceeds of foreign official
corruption.
The guidance was developed by a working group
that includes the U.S. Department of the Treasury and
the U.S. Department of State, the Board, and the
other federal banking agencies. It is intended to build
upon financial institutions’ existing anti-moneylaundering and due-diligence programs by providing
suggested procedures for account opening and main­
tenance for persons known to be senior political
figures, their immediate family, and close associates.
It also contains a list of questionable or suspicious
activities that often warrant closer scrutiny.
The guidance, distributed with a letter to Federal
Reserve supervisors and to banking organizations,
should be understood as a set of suggested sound
practices that financial institutions are encouraged
to use as they seek to deter money laundering
and minimize legal risks and potential reputational
damage.
Supervisory letters are the Federal Reserve’s pri­
mary means of communicating key policy directives
to its examiners, supervisory staff, and the bank­
ing industry. Supervisory letters can be viewed on
the Board’s web site at www.federalreserve.gov/
boarddocs/srletters.

P r e l im in a r y F ig u r e s A v a ila b le
o n N e t In c o m e o f t h e F e d e r a l
R e s e r v e b a n k s f o r 2000
Preliminary figures indicate that the Federal Reserve
Banks distributed approximately $25.3 billion of their
$34.0 billion total income to the Treasury during
2000. In addition, $3.75 billion was transferred from
surplus to the Treasury in May 2000, as required by
statute.
Federal Reserve System income is derived prima­
rily from interest earned on U.S. government securi­
ties that the Federal Reserve has acquired through
open market operations. This income amounted
to $32.7 billion. Additionally, revenues from fees for



the provision of priced services to depository institu­
tions totaled $881 million. The remaining income of
$335 million includes earnings on foreign currencies,
earnings from loans, and other income.
The operating expenses of the twelve Reserve
Banks totaled $1.59 billion, including the System’s
pension cost credit. In addition, the cost of earnings
credits granted to depository institutions under the
Monetary Control Act of 1980 amounted to $389 mil­
lion. Assessments against Reserve Banks for Board
expenditures totaled $188 million, and the cost of
currency amounted to $436 million.
Net deductions from income amounted to
$1.49 billion, resulting primarily from unrealized
losses on assets denominated in foreign currencies
that were revalued to reflect current market exchange
rates.
Total net income for the Federal Reserve Banks
amounted to $29.9 billion. Under the Board’s policy,
all net income after the statutory dividend to mem­
ber banks and the amount necessary to equate sur­
plus to paid-in capital is transferred to the Treasury.
The statutory dividends to member banks were
$410 million.

FINAL RULE ON MERCHANT BANKING

A c t iv it ie s
The Board of Governors of the Federal Reserve
System and the Secretary of the Treasury on Jan­
uary 10, 2001, approved a joint final rule governing
the merchant banking activities of financial holding
companies.
The rule, effective February 15, 2001, implements
provisions of the Gramm-Leach-Bliley Act. The
Board and the Secretary believe it permits a “twoway street” between securities firms and banking
organizations, while, at the same time, giving effect
to the statutory limitations and framework adopted by
the Congress to help maintain the separation of bank­
ing and commerce and ensure the safety and sound­
ness of depository institutions.
The final rule incorporates a number of amend­
ments in response to public comments on the interim
rule issued March 17, 2000. These changes include
the following:
• Modifying the provisions defining when a finan­
cial holding company routinely manages or operates
a portfolio company
• Eliminating the dollar-based threshold for the
review of a financial holding company’s merchant

Announcements

banking activities and adopting a sunset provision for
the remaining capital-based investment threshold
• Streamlining the rule’s reporting and recordkeep­
ing requirements
• Broadening the definition of “private equity
funds” and clarifying the rule’s application to such
funds
• Modifying when transactions between insured
depository institutions and portfolio companies are
subject to sections 23A and 23B of the Federal
Reserve Act
• Revising the restrictions that apply to merchant
banking investments held beyond the permissible
holding period
• Expanding the definition of “securities affiliate”
to include a department or division of a bank regis­
tered as a municipal securities dealer.

FINAL RU LE ON ALTERNATIVE TO RATED D E B T
REQUIREMENT FOR FINANCIAL SUBSIDIARIES

The Federal Reserve Board and the Secretary of
the Treasury on January 19, 2001, announced their
approval of a final rule establishing the alternative
criteria that certain large banks may satisfy in order
to control a financial subsidiary under the GrammLeach-Bliley Act.
Under the act, a national or state member bank
ranked among the largest fifty insured banks may
control a financial subsidiary only if the bank meets
certain criteria, including having an issue of highly
rated debt outstanding. The next fifty largest insured
banks may control a financial subsidiary if they sat­
isfy this debt-rating requirement or an alternative
comparable requirement jointly established by the
Treasury and the Federal Reserve Board. Under the
final rule, a bank meets the alternative requirement if
it has a current long-term issuer credit rating from a
nationally recognized statistical rating organization
that is within the three highest investment-grade cate­
gories used by the rating organization.
The final rule will become effective thirty days
after publication in the F ederal R egister. It is substan­
tively identical to an interim rule issued March 14,

2000.

Is s u a n c e o f G u id a n c e o n S u p e r v is io n o f
S u b p r im e L e n d in g

The federal banking regulatory agencies on Jan­
uary 31, 2001, issued expanded guidance intended to



165

strengthen the examination and supervision of institu­
tions with significant subprime lending programs.
The guidance, issued by the Office of the Comp­
troller of the Currency, the Board of Governors of the
Federal Reserve System, the Federal Deposit Insur­
ance Corporation, and the Office of Thrift Super­
vision, supplements previous subprime lending guid­
ance issued on March 1, 1999. It principally applies
to institutions with subprime lending programs that
equal or exceed 25 percent of the institution’s tier 1
regulatory capital.
For purposes of this guidance, “subprime lending”
refers to programs that target borrowers with weak­
ened credit histories typically characterized by pay­
ment delinquencies, previous charge-offs, judgments,
or bankruptcies. Such programs may also target bor­
rowers with questionable repayment capacity evi­
denced by low credit scores or high debt-burden
ratios.
Major issues discussed in the guidance include the
following:
• A llo w a n ce f o r loan a n d lea se lo sses (ALLL).

Analysis and documentation standards for the ALLL
• C a p ita l adequ acy. Factors to consider when
determining the level of capital necessary to support
subprime lending programs
• Loan review a n d classification. Guidelines for
the review and classification of individual loans and
portfolio segments during examinations
• Cure p rogram s. Documentation requirements for
re-aging, renewing, or extending delinquent subprime
accounts
• P red a to ry lending. Identification of potentially
abusive lending practices subject to examiner
criticism.
The agencies recognize that responsible subprime
lending can expand credit access for consumers and
offer institutions the opportunity to earn attractive
returns. However, institutions are expected to recog­
nize both the elevated risk levels posed by participa­
tion in subprime lending programs and the enhanced
risk-management standards needed to successfully
engage in this activity.
Although this guidance is intended primarily to
assist examiners in their evaluation of subprime lend­
ing programs, the agencies are also distributing it to
banks and thrift institutions so that they are fully
aware of supervisory expectations regarding riskmanagement processes, allowance for loan-loss lev­
els, and capital adequacy for institutions engaging in
such programs.

166

Federal Reserve Bulletin □ March 2001

A d o p t i o n o f G u id e l in e s
In f o r m a t i o n S e c u r i t y

for

C u stom er

The federal bank and thrift regulatory agencies have
sent to the F ederal R e g iste r joint guidelines for
safeguarding confidential customer information. The
guidelines implement section 501(b) of the GrammLeach-Bliley Act (GLBA) and will be effective on
July 1,2001.
The GLBA requires the agencies to establish stan­
dards for financial institutions relating to administra­
tive, technical, and physical safeguards for customer
records and information. These safeguards are to
ensure the security and confidentiality of customer
records and information, protect against any antici­
pated threats or hazards to the security or integrity
of these records, and protect against unauthorized
access to or use of these records or information that
would result in substantial harm or inconvenience to
a customer.
The guidelines require financial institutions to
establish an information security program to (1) iden­
tify and assess the risks that may threaten customer
information; (2) develop a written plan containing
policies and procedures to manage and control these
risks; (3) implement and test the plan; and (4) adjust
the plan on a continuing basis to account for changes
in technology, the sensitivity of customer informa­
tion, and internal or external threats to information
security. Each institution may implement a security
program appropriate to its size and complexity and
the nature and scope of its operations.
The guidelines outline specific security measures
that institutions should consider in implementing a
security program. A financial institution must adopt
those security measures determined to be appropriate.
The guidelines also outline responsibilities of
directors of financial institutions in overseeing the
protection of customer information. The board of
directors should oversee an institution’s efforts to
develop, implement, and maintain an effective infor­
mation security program and approve written infor­
mation security policies and programs.
The guidelines require financial institutions to
oversee their service provider arrangements in order
to protect the security of customer information main­
tained or processed by service providers. Each institu­
tion must exercise due diligence in selecting its ser­
vice providers and require its service providers by
contract to implement security measures that safe­
guard customer information. When indicated by an
institution’s risk assessment, the institution must also
monitor its service providers by reviewing audits,
summaries of test results, or other equivalent evalua­



tion of its service providers, to confirm that they have
satisfied their contractual obligations.

F e a s ib il it y
S u b o r d in a t e d D e b t

report on

of

Mandatory

The Board of Governors of the Federal Reserve Sys­
tem and the Secretary of the Treasury found that
subordinated debt issuance by large depository insti­
tution organizations may encourage market discipline
and generate other supervisory benefits. A joint report
released on January 12, 2001, also indicated that the
Board and the Treasury’s Office of the Comptroller
of the Currency and Office of Thrift Supervision
(agencies) will consider ways to enhance their use of
voluntarily issued subordinated debt in supervisory
monitoring. The Board and the Secretary, however,
chose not to recommend that the Congress make
subordinated debt issuance mandatory at this time.
The report to the Congress, required by the
Gramm-Leach-Bliley Act, called for continued
research and, most important, continued evaluation
of financial institution supervisors’ experience in
using information derived from voluntarily issued
subordinated debt. Virtually all of the largest banking
organizations already issue subordinated debt. The
agencies monitor subordinated debt yields and issu­
ance patterns in evaluating the condition of large
depository institution organizations.
The study found that existing evidence supports
the use of subordinated debt to encourage market
discipline. But it said that the net benefits of a man­
datory policy are not clear enough to justify such a
policy. Going forward, if additional evidence sug­
gests that requiring institutions to issue subordinated
debt is appropriate, either the Board or the Secretary
may recommend legislation.
Copies of the report, The F ea sib ility a n d D e sira b il­
ity o f M an datory S u bordin ated D e b t , are available on
the web sites of the Board, www.federalreserve.gov/
boarddocs/RptCongress/, and the Treasury Depart­
ment, www.ustreas.gov.

R e c o m m e n d a t io n s
P u b l ic D is c l o s u r e

o f w o r k in g

Group

on

A private-sector working group on January 11, 2001,
recommended enhanced and more frequent public
disclosure of financial information by banking and
securities organizations.
Market risk information previously disclosed annu­
ally should be disclosed quarterly, and the content of

Announcements

these disclosures should be improved, the group said.
Additional credit risk information on wholesale credit
exposures should also be made available quarterly, it
said.
The Working Group on Public Disclosure, estab­
lished in April 2000 by the Board of Governors of
the Federal Reserve System, was chaired by Walter V.
Shipley, retired chairman of Chase Manhattan
Bank. He delivered the group’s findings in a letter
to Board member Laurence H. Meyer. Copies were
provided to the Comptroller of the Currency John D.
Hawke, Jr., and Securities and Exchange Com­
mission Chairman Arthur Levitt, Jr. The OCC and
SEC participated with the Board in support of the
effort.
In addition to calling for more frequent public
disclosure, the working group said that financial
information should be disclosed based on a firm’s
internal methodologies and exposure categories. It
said that quantitative information on a firm’s risk
exposure should be balanced with qualitative infor­
mation describing its risk-management process. Pub­
lic disclosures should vary among institutions to
reflect legitimate differences in internal management
processes, and disclosure practices should change in
step with innovations in firms’ risk-management and
measurement practices, the group said.
Mr. Shipley, in the letter to Governor Meyer, said
that the outcome of the group’s deliberations “cre­
ates a common platform to move ahead with suitable
steps towards enhanced public disclosure.”
Governor Meyer, Comptroller Hawke, and Chair­
man Levitt, in their reply, said, “We . . . think that
your recommendation for disclosure of credit risk
based on banks’ internal ratings is especially useful.”
“We hope that the working group’s work encour­
ages all large banks and securities firms to adopt
enhanced practices for public disclosure,” they wrote.
“We look forward to continued discussion with
market participants about public disclosure. In par­
ticular, we thank the members of the group for their
offer to participate in future advisory efforts.”
The members of the working group, in addition to
Mr. Shipley, were the following: Clemens Boersig,
Deutsche Bank AG, Frankfurt, Germany; Patrick
de Saint-Aignan, Morgan Stanley Dean Witter,
New York; Dina Dublon, J.P. Morgan Chase & Co.,
New York; Douglas Flint, HSBC Holdings PLC,
London; James Hance, Bank of America Corp., Char­
lotte, N.C.; Ross Kari, Wells Fargo Corp., San Fran­
cisco; Thomas H. Patrick, Merrill Lynch and Co.,
New York; Marcel Rohner, UBS AG, Zurich, Swit­
zerland; Charles W. Scharf, Bank One Corporation,
Chicago; Todd S. Thomson, Citigroup, New York;



167

and Barry L. Zubrow, Goldman Sachs and Co.,
New York.

Ba s e l C o m m it t e e P r o p o s a l t o A m e n d
Ca p it a l A d e q u a c y f r a m e w o r k :
R e q u e st f o r c o m m e n ts a n d R elease
o f a n In t e r a g e n c y S u m m a r y

The federal bank regulatory agencies will accept
public comments on a major proposal by the Basel
Committee on Banking Supervision to amend the
1988 international capital adequacy framework. The
full document is available on the web site of the Bank
for International Settlements at www.bis.org. Com­
ments are requested on the proposal by May 31,
2001, and may be sent to the U.S. banking agencies
and to the Basel Committee.
Although the 1988 Capital Accord was applied to
all banks in the United States, it has not been deter­
mined how broadly the new approach will be applied,
particularly given the many complex elements that
may not be needed for smaller, less complex insti­
tutions. The U.S. banking agencies recently issued
an advance notice of proposed rulemaking for non­
complex institutions (“ Simplified Capital Framework
for Non-Complex Institutions,” published Novem­
ber 3, 2000). Comments received on that proposal
(due by February 1, 2001) will be considered in
determining whether to apply the new approach to all
banks.
The Federal Reserve Board on January 23, 2001,
released an interagency summary of the Basel Com­
mittee on Banking Supervision’s consultative pro­
posal issued to the public on January 16, 2001.
Attached to the summary is a set of discussion issues.
Respondents to the Basel Committee proposal are
encouraged to review and provide comments on the
entire range of topics covered in the proposal and to
take particular notice of the issues highlighted in
the U.S. agencies’ release. The summary and ques­
tions are available on the web sites of the Office
of the Comptroller of the Currency (www.occ.
treas.gov), the Federal Reserve Board of Governors
(www.federalreserve.gov), and the Federal Deposit
Insurance Corporation (www.fdic.gov).

R e v is e d c a p it a l P r o p o s a l f o r
N o n f i n a n c i a l E q u i t y In v e s t m e n t s

The Federal Reserve Board and the Office of the
Comptroller of the Currency on January 18, 2001,
announced proposed new rules governing the regula­

168

Federal Reserve Bulletin □ March 2001

tory capital treatment for equity investments in nonfinancial companies held by banks, bank holding
companies, and financial holding companies.
The new proposed capital treatment, revised in
response to public comment and in consultation with
the Treasury Department and other federal banking
agencies, represents a significant modification of a
proposal made by the Federal Reserve Board in
March 2000. The Federal Deposit Insurance Corpo­
ration has announced that it will consider the new
proposal Friday.
The new proposal would apply symmetrically to
banks and their holding companies and would apply
to equity investments made under the new merchant
banking authority granted by the Gramm-LeachBliley Act and to equity investments in nonfinancial
companies made under other specifically identified
legal authorities.
The new proposal generally would impose a capi­
tal charge that would increase in steps as the banking
organization’s level of concentration in equity invest­
ments increased. An 8 percent tier 1 capital deduc­
tion would apply on covered investments that in the
aggregate represent up to 15 percent of an organiza­
tion’s tier 1 capital. A top marginal charge of 25 per­
cent would be set for covered investments that aggre­
gate more than 25 percent of the organization’s tier 1
capital.
Equity investments through small business invest­
ment companies would be exempt from these new
capital deduction requirements and would continue to
be subject to the same capital requirements that cur­
rently apply, unless the value of those investments
exceeds 15 percent of the bank’s tier 1 capital. Grand­
fathered investments under section 24(f) of the Fed­
eral Deposit Insurance Act would also be exempt
under the new proposal.




Under the new proposal, the agencies also would
heighten their monitoring of banking organizations as
the level of concentration in equity investment
increases.
The agencies intend to request public comment
within sixty days after publication in the Federal
Register.

E n f o r c e m e n t A c t io n s
The Federal Reserve Board on January 12, 2001,
announced the execution of a written agreement by
and between Maryland Permanent Capital Corpo­
ration, Owings Mills, Maryland, and the Federal
Reserve Bank of Richmond.
The Federal Reserve Board on January 18, 2001,
announced the execution of a written agreement
by and among the Bank of Greenville, Greenville,
West Virginia, the Federal Reserve Bank of Rich­
mond, and the West Virginia Division of Banking.
The Federal Reserve Board on January 31, 2001,
announced the execution of a written agreement by
and among the New Century Bank, Southfield,
Michigan, the Federal Reserve Bank of Chicago,
and the Office of Financial and Insurance Services,
Lansing, Michigan.
The Federal Reserve Board on January 31, 2001,
announced the execution of a written agreement by
and between the Valley Independent Bank, El Centro,
California, and the Federal Reserve Bank of
San Francisco.
□

169

Legal Developments
F in a l R u le —A m e n d m e n t

to

R e g u l a t io n A

The Board of Governors is amending 12 C.F.R. Part 201,
its Regulation A (Extensions of Credit by Federal Reserve
Banks; Change in Discount Rate), to reflect its approval of
a decrease in the basic discount rate at each Federal Re­
serve Bank. The Board acted on requests submitted by the
Boards of Directors of the twelve Federal Reserve Banks.
The amendments to Part 201 (Regulation A) were effec­
tive January 4, 2001. The rate changes for adjustment
credit were effective on the dates specified below:

Part 201—Extensions of Credit by Federal Reserve
Banks (Regulation A)
1. The authority citation for Part 201 continues to read as
follows:
Authority: 12 U.S.C. 343 et seq., 347a, 347b, 347c, 347d,
348 et seq., 357, 374, 374a and 461.
2. Section 201.51 is revised to read as follows:

Section 201.51—Adjustment credit fo r depository
institutions.
The rates for adjustment credit provided to depository
institutions under section 201.3(a) are:
Federal Reserve Bank

Rate

Effective1

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

5.5
5.5
5.5
5.5
5.5
5.5
5.5
5.5
5.5
5.5
5.5
5.5

January 4,
January 4,
January 4,
January 4,
January 4,
January 4,
January 4,
January 5,
January 4,
January 4,
January 4,
January 4,

F in a l R u le —A m e n d m e n t

to

2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001

R e g u l a t io n H

tions in the Federal Reserve System). Section 121 of the
Gramm-Leach-Bliley Act (GLBA) permits a national bank
or state member bank that is among the second 50 largest
insured banks to own or control a financial subsidiary only
if the bank meets either the eligible debt requirement set
forth in section 121 of the Act or alternative criteria
established jointly by the Board and Treasury. On
March 14, 2000, the Board and Treasury adopted and
requested public comment on an interim rule establishing
this alternative criteria. The interim rule provided that a
national or state member bank meets the alternative criteria
if the bank has a current long-term issuer credit rating from
a nationally recognized statistical rating organization that
is within the three highest investment grade rating catego­
ries used by the organization. After reviewing public com ­
ments, the Board and Treasury are adopting a final rule that
is substantively identical to the interim rule.
Effective M arch 5, 2001, 12 C.F.R. Part 208 is amended
as follows:

Part 208—Membership of State Banking
Institutions in the Federal Reserve System
(Regulation H)
1. The authority citation for Part 208 continues to read as
follows:
Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321—
338a, 371d, 461, 481-486, 601, 611, 1814, 1816, 1818,
1820(d), 18230), 1828(o), 1831, 1831o, 1831p-l, 1831r-l,
1831w, 1835a, 1882, 2901- 2907, 3105, 3310, 3331-3351,
and 3906-3909; 15 U.S.C. 78b, 781(b), 781(g), 781(i), 78o4(c)(5), 78q, 7 8 q -l, and 78w; 31 U.S.C. 5318; 42 U.S.C.
4012a, 4104a, 4104b, 4106 and 4128.
2. Section 208.71(c) is revised to read as follows:

Section 208.71— What are the requirements to
invest in or control a financial subsidiary?

The Board of Governors is amending 12 C.F.R. Part 208,
its Regulation H (Membership of State Banking Institu-

1. On January 3, 2001, the rate for adjustment credit was
5.75 percent for the following Federal Reserve Banks: New York,
Cleveland, Atlanta, Kansas City, Dallas, and San Francisco. On Janu­
ary 4, the rate for adjustment credit was 5.75 percent for the Federal
Reserve Bank o f St. Louis.




(c) Alternative Requirement. A state member bank satisfies
the alternative criteria referenced in paragraph (b)(l)(ii) of
this section if the bank has a current long-term issuer credit
rating from at least one nationally recognized statistical
rating organization that is within the three highest invest­
ment grade rating categories used by the organization.

170 Federal Reserve Bulletin □ March 2001

3. Section 208.77(e) is revised to read as follows:

Section 225.1—Authority, purpose, and scope.

Section 208.77—Definitions.
(c) * * *
(e) Long-term Issuer Credit Rating. The term “ long-term
issuer credit rating” means a written opinion issued by a
nationally recognized statistical rating organization of the
bank’s overall capacity and willingness to pay on a timely
basis its unsecured, dollar-denominated financial obliga­
tions maturing in not less than one year.

(10) Subpart J governs the conduct of merchant banking
investment activities by financial holding companies as
permitted under section 4(k)(4)(H) of the Bank Holding
Company Act (12 U.S.C. 1843(k)(4)(H)).

3. Subpart J is revised to read as follows:

J o in t F in a l R u le — A m e n d m e n t to R e g u l a t io n Y

Subpart J— Merchant Banking Investments

The Board of Governors of the Federal Reserve System
and the Secretary of the Treasury jointly adopt this final
rule governing merchant banking investments made by
financial holding companies. The rule implements provi­
sions of the Gramm-Leach-Bliley Act that permit financial
holding companies to make investments as part of a bona
fide securities underwriting or merchant or investment
banking activity. The Board and the Secretary have incor­
porated a number of amendments to the final rule to
address issues raised by public commenters, to reduce
potential regulatory burdens, and to clarify the application
of the rule. These changes include expanding the definition
of “ securities affiliate” to include a department or division
o f a bank registered as a municipal securities dealer; modi­
fying the provisions defining prohibited routine manage­
ment and operation of portfolio companies; adopting a
sunset provision for the investment thresholds under the
interim rule and eliminating the dollar-based threshold for
the review of a financial holding com pany’s merchant
banking activities; streamlining the rule’s reporting and
recordkeeping requirements; broadening the definition of
“ private equity” funds and clarifying the rule’s application
to such funds; and adopting several safe-harbors to the
presumptions in the rule governing the definition of affili­
ate for purposes of sections 23A and 23B of the Federal
Reserve Act.
Effective February 15, 2001, 12C.F.R. Part 225 is
amended as follows:

Section 225.170— W hat type of investments are permitted
by this subpart, and under what conditions may they be
made?
Section 225.171— What are the limitations on managing or
operating a portfolio company held as a merchant
banking investment?
Section 225.172— W hat are the holding periods permitted
for merchant banking investments?
Section 225.173— How are investments in private equity
funds treated under this subpart?
Section 225.174— W hat aggregate thresholds apply to mer­
chant banking investments?
Section 225.175— W hat risk management, record keeping
and reporting policies are required to make merchant
banking investments?
Section 225.176— How do the statutory cross marketing
and sections 23A and B limitations apply to merchant
banking investments?
Section 225.177— Definitions.

Part 225—Bank Holding Companies and Change in
Bank Control (Regulation Y)
1. The authority citation for Part 225 continues to read as
follows:

Authority : 12U.S.C. 1817(j)(13), 1818, 1828(o), 1831i,
183 lp -1 , 1843(c)(8), 1843(k), 1844(b), 1972(1), 2903,
2905, 3106, 3108, 3310, 3331-3351, 3907, and 3909.
2. Section 225.1(c)(10) is revised to read as follows:



Subpart J —Merchant Banking Investments
Section 225.170— What type of investments are
permitted by this subpart, and under what
conditions may they be made?
(a) What types o f investments are permitted by this sub­
part? Section 4(k)(4)(H) of the Bank Holding Company
Act (12 U.S.C. 1843(k)(4)(H)) and this subpart authorize a
financial holding company, directly or indirectly and as
principal or on behalf of one or more persons, to acquire or
control any amount of shares, assets or ownership interests
o f a company or other entity that is engaged in any activity
not otherwise authorized for the financial holding company
under section 4 of the Bank Holding Company Act. For
purposes of this subpart, shares, assets or ownership inter­
ests acquired or controlled under section 4(k)(4)(H) and
this subpart are referred to as “ merchant banking invest­
ments.” A financial holding company may not directly or
indirectly acquire or control any merchant banking invest­
ment except in compliance with the requirements of this
subpart.

Legal Developments

(b) Must the investment be a bona fide merchant banking
investment? The acquisition or control of shares, assets or
ownership interests under this subpart is not permitted
unless it is part of a bona fide underwriting or merchant or
investment banking activity.
(c) What types o f ownership interests may be acquired?
Shares, assets or ownership interests of a company or other
entity include any debt or equity security, warrant, option,
partnership interest, trust certificate or other instrument
representing an ownership interest in the company or en­
tity, whether voting or nonvoting.
(d) Where in a financial holding company may merchant
banking investments be made? A financial holding com ­
pany and any subsidiary (other than a depository institution
or subsidiary of a depository institution) may acquire or
control merchant banking investments. A financial holding
company and its subsidiaries may not acquire or control
merchant banking investments on behalf of a depository
institution or subsidiary of a depository institution.
(e) May assets other than shares be held directly? A
financial holding company may not under this subpart
acquire or control assets, other than debt or equity securi­
ties or other ownership interests in a company, unless:
(1) The assets are held by or promptly transferred to a
portfolio company;
(2) The portfolio company maintains policies, books
and records, accounts, and other indicia of corpo­
rate, partnership or limited liability organization
and operation that are separate from the financial
holding company and limit the legal liability of the
financial holding company for obligations of the
portfolio company; and
(3) The portfolio company has management that is
separate from the financial holding company to the
extent required by section 225.171.
(f) What type o f affiliate is required fo r a financial holding
company to make merchant banking investments? A finan­
cial holding company may not acquire or control merchant
banking investments under this subpart unless the financial
holding company qualifies under at least one of the follow­
ing paragraphs:
(1) Securities affiliate. The financial holding company
is or has an affiliate that is registered under the
Securities Exchange Act of 1934 (15 U.S.C. 78c,
78o, 78o-4) as:
(i) A broker or dealer; or
(ii) A municipal securities dealer, including a sep­
arately identifiable department or division of a
bank that is registered as a municipal securi­
ties dealer.
(2) Insurance affiliate with an investment adviser affil­
iate. The financial holding company controls:
(i) An insurance company that is predominantly
engaged in underwriting life, accident and
health, or property and casualty insurance
(other than credit-related insurance), or pro­
viding and issuing annuities; and
(ii) A company that:
(A) Is registered with the Securities and Ex­




171

change Commission as an investment ad­
viser under the Investment Advisers Act
of 1940 (15 U.S.C. 80b-1 et seq.); and
(B) Provides investment advice to an insur­
ance company.

Section 225.171— What are the limitations on
managing or operating a portfolio company held as
a merchant banking investment?
(a) May a financial holding company routinely manage or
operate a portfolio company? Except as permitted in para­
graph (e) of this section, a financial holding company may
not routinely manage or operate any portfolio company.
(b) When does a financial holding company routinely man­
age or operate a company?
(1) Examples o f routine management or operation.(i) Executive officer interlocks at the portfolio
company. A financial holding company rou­
tinely manages or operates a portfolio com­
pany if any director, officer or employee of the
financial holding company serves as or has
the responsibilities o f an executive officer of
the portfolio company.
(ii) Interlocks by executive officers o f the financial
holding company.
(A) Prohibition. A financial holding company
routinely manages or operates a portfolio
company if any executive officer of the
financial holding company serves as or
has the responsibilities of an officer or
employee of the portfolio company.
(B) Definition. For purposes of paragraph
(b)(l)(ii)(A ) of this section, the term “ fi­
nancial holding com pany” includes the
financial holding company and only the
following subsidiaries of the financial
holding company:
(1) A securities broker or dealer registered under the
Securities Exchange Act of 1934;
(2) A depository institution;
(3) An affiliate that engages in merchant banking activ­
ities under this subpart or insurance company
investment activities under section 4(k)(4)(I) of
the Bank Holding Com pany Act (12 U.S.C.
1843(k)(4)(I));
(4) A small business investment company (as defined
in section 302(b) of the Small Business Investment
Act of 1958 (15 U.S.C. 682(b)) controlled by the
financial holding company or by any depository
institution controlled by the financial holding com­
pany; and
(5) Any other affiliate that engages in significant eq­
uity investment activities that are subject to a spe­
cial capital charge under the capital adequacy rules
or guidelines of the Board.
(iii) Covenants regarding ordinary course o f busi­
ness. A financial holding company routinely
manages or operates a portfolio company if

172 Federal Reserve Bulletin □ March 2001

any covenant or other contractual arrangement
exists between the financial holding company
and the portfolio company that would restrict
the portfolio com pany’s ability to make rou­
tine business decisions, such as entering into
transactions in the ordinary course of business
or hiring officers or employees other than ex­
ecutive officers.
(2) Presumptions o f routine management or operation.
A financial holding company is presumed to routinely
manage or operate a portfolio company if:
(i) Any director, officer, or employee of the finan­
cial holding company serves as or has the
responsibilities of an officer (other than an
executive officer) or employee of the portfolio
company; or
(ii) Any officer or employee of the portfolio com ­
pany is supervised by any director, officer, or
employee of the financial holding company
(other than in that individual’s capacity as a
director of the portfolio company).
(c) How may a financial holding company rebut a presump­
tion that it is routinely managing or operating a portfolio
company? A financial holding company may rebut a pre­
sumption that it is routinely managing or operating a
portfolio company under paragraph (b)(2) of this section
by presenting information to the Board demonstrating to
the Board’s satisfaction that the financial holding company
is not routinely managing or operating the portfolio com­
pany.
(d) What arrangements do not involve routinely managing

or operating a portfolio company?
( 1 ) Director representation at portfolio companies. A
financial holding company may select any or all of
the directors of a portfolio company or have one or
more of its directors, officers, or employees serve
as directors of a portfolio company if:
(i) The portfolio company employs officers and
employees responsible for routinely managing
and operating the company; and
(ii) The financial holding company does not rou­
tinely manage or operate the portfolio com ­
pany, except as permitted in paragraph (e) of
this section.
(2) Covenants or other provisions regarding extraordi­
nary events. A financial holding company may, by
virtue of covenants or other written agreements
with a portfolio company, restrict the ability of the
portfolio company, or require the portfolio com ­
pany to consult with or obtain the approval of the
financial holding company, to take actions outside
of the ordinary course of the business of the portfo­
lio company. Examples of the types of actions that
may be subject to these types of covenants or
agreements include, but are not limited to, the
following:
(i) The acquisition of significant assets or con­
trol of another company by the portfolio com­
pany or any of its subsidiaries;




(ii)

(iii)

(iv)
(v)

(vi)

(vii)

Removal or selection of an independent ac­
countant or auditor or investment banker by
the portfolio company;
Significant changes to the business plan or
accounting methods or policies of the portfo­
lio company;
Removal or replacement of any or all of the
executive officers of the portfolio company;
The redemption, authorization or issuance of
any equity or debt securities (including op­
tions, warrants or convertible shares) o f the
portfolio company or any borrowing by the
portfolio company outside of the ordinary
course of business;
The amendment of the articles of incorpora­
tion or by-laws (or similar governing docu­
ments) of the portfolio company; and
The sale, merger, consolidation, spin-off, re­
capitalization, liquidation, dissolution or sale
of substantially all of the assets of the portfo­
lio company or any of its significant subsid­
iaries.

(3) Providing advisory and underwriting services to,

and having consultations with, a portfolio com­
pany. A financial holding company may:
(i)

Provide financial, investment and manage­
ment consulting advice to a portfolio com ­
pany in a manner consistent with and subject
to any restrictions on such activities contained
in sections 225.28(b)(6) or 225.86(b)(1) of this
part (12 C.F.R. 225.28(b)(6) and 225.86(b)(1));
(ii) Provide assistance to a portfolio company in
connection with the underwriting or private
placement of its securities, including acting
as the underwriter or placement agent for
such securities; and
(iii) M eet with the officers or employees of a
portfolio company to monitor or provide ad­
vice with respect to the portfolio com pany’s
performance or activities.
(e) When may a financial holding company routinely man­
age or operate a portfolio company?
(1) Special circumstances required. A financial hold­
ing company may routinely manage or operate a
portfolio company only when intervention by the
financial holding company is necessary or required
to obtain a reasonable return on the financial hold­
ing com pany’s investment in the portfolio com­
pany upon resale or other disposition of the invest­
ment, such as to avoid or address a significant
operating loss or in connection with a loss of
senior management at the portfolio company.
(2) Duration limited. A financial holding company
may routinely manage or operate a portfolio com ­
pany only for the period of time as may be neces­
sary to address the cause of the financial holding
com pany’s involvement, to obtain suitable alterna­
tive management arrangements, to dispose of the
investment, or to otherwise obtain a reasonable

Legal Developments

return upon the resale or disposition of the invest­
ment.
(3) Notice required fo r extended involvement. A finan­
cial holding company may not routinely manage or
operate a portfolio company for a period greater
than nine months without prior written notice to
the Board.
(4) Documentation required. A financial holding com ­
pany must maintain and make available to the
Board upon request a written record describing its
involvement in routinely managing or operating a
portfolio company.
(f) May a depository institution or its subsidiary routinely
manage or operate a portfolio company?
(1) In general. A depository institution and a subsid­
iary of a depository institution may not routinely
manage or operate a portfolio company in which
an affiliated company owns or controls an interest
under this subpart.
(2) Definition applying provisions governing routine
management or operation. For purposes of this
section other than paragraph (e) and for purposes
of section 225.173(d), a financial holding company
includes a depository institution controlled by the
financial holding company and a subsidiary of such
a depository institution.
(3) Exception fo r certain subsidiaries o f depository
institutions. For purposes of paragraph (e) of this
section, a financial holding company includes a
financial subsidiary held in accordance with sec­
tion 5136A of the Revised Statutes (12 U.S.C.
24a) or section 46 of the Federal Deposit Insurance
Act (12 U.S.C. 183 lw ), and a subsidiary that is a
small business investment company and that is
held in accordance with the Small Business Invest­
ment Act (15 U.S.C. 661 et seq.), and such a
subsidiary may, in accordance with the limitations
set forth in this section, routinely manage or oper­
ate a portfolio company in which an affiliated
company owns or controls an interest under this
subpart.

Section 225.172— What are the holding periods
permitted fo r merchant banking investments?
(a) Must investments be made fo r resale? A financial
holding company may own or control shares, assets and
ownership interests pursuant to this subpart only for a
period of time to enable the sale or disposition thereof on a
reasonable basis consistent with the financial viability of
the financial holding com pany’s merchant banking invest­
ment activities.
(b) What period o f time is generally permitted fo r holding

merchant banking investments ?
(1) In general. Except as provided in this section or
section 225.173, a financial holding company may
not, directly or indirectly, own, control or hold any
share, asset or ownership interest pursuant to this
subpart for a period that exceeds ten years.



173

(2) Ownership interests acquired from or transferred
to companies held under this subpart. For purposes
of paragraph (b)(1) of this section, shares, assets or
ownership interests:
(i)
Acquired by a financial holding company
from a company in which the financial hold­
ing company held an interest under this sub­
part will be considered to have been acquired
by the financial holding company on the date
that the share, asset or ownership interest was
acquired by the company; and
(ii) Acquired by a company from a financial
holding company will be considered to have
been acquired by the company on the date
that the share, asset or ownership interest was
acquired by the financial holding company if(A) The financial holding company held the
share, asset, or ownership interest under
this subpart; and
(B) The financial holding company holds an
interest in the acquiring company under
this subpart.
(3) Interests previously held by a financial holding
company under limited authority. For purposes of
paragraph (b)(1) of this section, any shares, assets,
or ownership interests previously owned or con­
trolled, directly or indirectly, by a financial holding
company under any other provision of the Federal
banking laws that imposes a limited holding period
will if acquired under this subpart be considered to
have been acquired by the financial holding com ­
pany under this subpart on the date the financial
holding company first acquired ownership or con­
trol of the shares, assets or ownership interests
under such other provision of law. For purposes of
this paragraph (b)(3), a financial holding company
includes a depository institution controlled by the
financial holding company and any subsidiary of
such a depository institution.
(4) Approval required to hold interests held in excess
o f time limit. A financial holding company may
seek Board approval to own, control or hold shares,
assets or ownership interests of a company under
this subpart for a period that exceeds the period
specified in paragraph (b)(1) of this section. A
request for approval must;
(i)
Be submitted to the Board at least 90 days
prior to the expiration of the applicable time
period;
(ii) Provide the reasons for the request, including
information that addresses the factors in para­
graph (b)(5) of this section; and
(iii) Explain the financial holding com pany’s plan
for divesting the shares, assets or ownership
interests.
(5) Factors governing Board determinations. In review­
ing any proposal under paragraph (b)(4) of this sec­
tion, the Board may consider all the facts and
circumstances related to the investment, including:

174 Federal Reserve Bulletin □ March 2001

(i)

The cost to the financial holding company of
disposing of the investment within the appli­
cable period;
(ii) The total exposure of the financial holding
company to the company and the risks that
disposing of the investment may pose to the
financial holding company;
(iii) Market conditions;
(iv) The nature of the portfolio com pany’s busi­
ness;
(v) The extent and history of involvement by the
financial holding company in the manage­
ment and operations of the company; and
(vi) The average holding period of the financial
holding com pany’s merchant banking invest­
ments.
(6) Restrictions applicable to investments held beyond
time period. A financial holding company that di­
rectly or indirectly owns, controls or holds any
share, asset or ownership interest of a company
under this subpart for a total period that exceeds
the period specified in paragraph (b)(1) of this
section must:
(i) For purposes of determining the financial
holding com pany’s regulatory capital, apply
to the financial holding com pany’s adjusted
carrying value of such shares, assets, or own­
ership interests a capital charge determined
by the Board that must be:
(A) Higher than the maximum marginal Tier
1 capital charge applicable under the
Board’s capital adequacy rules or guide­
lines (see 12 C.F.R. 225 Appendix A) to
merchant banking investments held by
that financial holding company; and
(B) In no event less than 25 percent of the
adjusted carrying value of the invest­
ment; and
(ii) Abide by any other restrictions that the Board
may impose in connection with granting ap­
proval under paragraph (b)(4) of this section.

Section 225.173—How are investments in private
equity funds treated under this subpart?
(a) What is a private equity fund? For purposes of this
subpart, a “ private equity fund” is any company that:
(1) Is formed for the purpose of and is engaged exclu­
sively in the business of investing in shares, assets,
and ownership interests of financial and nonfinancial companies for resale or other disposition;
(2) Is not an operating company;
(3) No more than 25 percent of the total equity of
which is held, owned or controlled, directly or
indirectly, by the financial holding company and
its directors, officers, employees and principal
shareholders;
(4) Has a maximum term of not more than 15 years;
and



(5) Is not formed or operated for the purpose of mak­
ing investments inconsistent with the authority
granted under section 4(k)(4)(H) of the Bank Hold­
ing Company Act (12 U.S.C. 1843(k)(4)(H)) or
evading the limitations governing merchant bank­
ing investments contained in this subpart.
(b) What form may a private equity fund take? A private
equity fund may be a corporation, partnership, limited
liability company or other type of company that issues
ownership interests in any form.
(c) What is the holding period permitted fo r interests in
private equity funds?
(1) In general. A financial holding company may own,
control or hold any interest in a private equity fund
under this subpart and any interest in a portfolio
company that is owned or controlled by a private
equity fund in which the financial holding com ­
pany owns or controls any interest under this sub­
part for the duration of the fund, up to a maximum
of 15 years.
(2) Request to hold interest fo r longer period. A finan­
cial holding company may seek Board approval to
own, control or hold an interest in or held through
a private equity fund for a period longer than the
duration of the fund in accordance with section
225.172(b) of this subpart.
(3) Application o f rules. The rules described in section
225.172(b)(2) and (3) governing holding periods
o f interests acquired, transferred or previously held
by a financial holding company apply to interests
in, held through, or acquired from a private equity
fund.
(d) How do the restrictions on routine management and
operation apply to private equity funds and investments
held through a private equity fund?
(1) Portfolio companies held through a private equity
fund. A financial holding company may not rou­
tinely manage or operate a portfolio company that
is owned or controlled by a private equity fund in
which the financial holding company owns or con­
trols any interest under this subpart, except as
permitted under section 225.171(e).
(2) Private equity funds controlled by a financial hold­
ing company. A private equity fund that is con­
trolled by a financial holding company may not
routinely manage or operate a portfolio company,
except as permitted under section 225.171(e).
(3) Private equity funds that are not controlled by a
financial holding company. A private equity fund
may routinely manage or operate a portfolio com ­
pany so long as no financial holding company
controls the private equity fund or as permitted
under section 225.171(e).
(4) When does a financial holding company control a
private equity fund? A financial holding company
controls a private equity fund for purposes of this
subpart if the financial holding company, including
any director, officer, employee or principal share­
holder of the financial holding company:

Legal Developments

(i)

Serves as a general partner, managing mem­
ber, or trustee of the private equity fund (or
serves in a similar role with respect to the
private equity fund);
(ii) Owns or controls 25 percent or more of any
class of voting shares or similar interests in
the private equity fund;
(iii) In any manner selects, controls or constitutes
a majority of the directors, trustees or man­
agement of the private equity fund; or
(iv) Owns or controls more than 5 percent of any
class of voting shares or similar interests in
the private equity fund and is the investment
adviser to the fund.

Section 225.174— What aggregate thresholds apply
to merchant banking investments?
(a) In general. A financial holding company may not,
without Board approval, directly or indirectly acquire any
additional shares, assets or ownership interests under this
subpart or make any additional capital contribution to any
company the shares, assets or ownership interests of which
are held by the financial holding company under this
subpart if the aggregate carrying value of all merchant
banking investments held by the financial holding com ­
pany under this subpart exceeds:
(1) 30 percent of the Tier 1 capital of the financial
holding company; or
(2) After excluding interests in private equity funds,
20 percent of the Tier 1 capital of the financial
holding company.
(b) How do these thresholds apply to a private equity fund?
Paragraph (a) of this section applies to the interest acquired
or controlled by the financial holding company under this
subpart in a private equity fund. Paragraph (a) of this
section does not apply to any interest in a company held by
a private equity fund or to any interest held by a person that
is not affiliated with the financial holding company.
(c) How long do these thresholds remain in effect? This
section 225.174 shall cease to be effective on the date that a
final rule issued by the Board that specifically addresses
the appropriate regulatory capital treatment of merchant
banking investments becomes effective.

Section 225.175— What risk management, record
keeping and reporting policies are required to make
merchant banking investments?
(a) What internal controls and records are necessary?
(1) General. A financial holding company, including a
private equity fund controlled by a financial hold­
ing company, that makes investments under this
subpart m ust establish and maintain policies, pro­
cedures, records and systems reasonably designed
to conduct, monitor and manage such investment
activities and the risks associated with such invest­
ment activities in a safe and sound manner, includ­




175

ing policies, procedures, records and systems rea­
sonably designed to:
(i)
Monitor and assess the carrying value, mar­
ket value and performance of each invest­
ment and the aggregate portfolio;
(ii) Identify and manage the market, credit, con­
centration and other risks associated with
such investments;
(iii) Identify, monitor and assess the terms,
amounts and risks arising from transactions
and relationships (including contingent fees
or contingent interests) with each company in
which the financial holding company holds
an interest under this subpart;
(iv) Ensure the maintenance of corporate sepa­
rateness between the financial holding com­
pany and each company in which the finan­
cial holding company holds an interest under
this subpart and protect the financial holding
company and its depository institution sub­
sidiaries from legal liability for the opera­
tions conducted and financial obligations of
each such company; and
(v) Ensure compliance with this part and any
other provisions of law governing transac­
tions and relationships with companies in
which the financial holding company holds
an interest under this subpart (e.g., fiduciary
principles or sections 23A and 23B of
the Federal Reserve Act (12 U.S.C. 371c,
371c-l), if applicable).
(2) Availability o f records. A financial holding com ­
pany m ust make the policies, procedures and
records required by paragraph (a)(1) of this section
available to the Board or the appropriate Reserve
Bank upon request.
(b) What periodic reports must be filed? A financial hold­
ing company must provide reports to the appropriate Re­
serve Bank in such format and at such times as the Board
may prescribe.
(c) Is notice required fo r the acquisition o f companies ?
(1) Fulfillment o f statutory notice requirement. Except
as required in paragraph (c)(2) of this section, no
post-acquisition notice under section 4(k)(6) of
the Bank Holding Company Act (12 U.S.C.
1843(k)(6)) is required by a financial holding com­
pany in connection with an investment made under
this subpart if the financial holding company has
previously filed a notice under section 225.87 indi­
cating that it had commenced merchant banking
investment activities under this subpart.
(2) Notice o f large individual investments. A financial
holding company must provide written notice to
the Board on the appropriate form within 30 days
after acquiring more than 5 percent of the voting
shares, assets or ownership interests of any com ­
pany under this subpart, including an interest in a
private equity fund, at a total cost to the financial
holding company that exceeds the lesser o f 5 per­

176 Federal Reserve Bulletin □ March 2001

cent of the Tier 1 capital of the financial holding
company or $200 million.

Section 225.176—How do the statutory cross
marketing and sections 23A and B limitations apply
to merchant banking investments?
(a) Are cross marketing activities prohibited?
(1) In general. A depository institution, including a
subsidiary of a depository institution, controlled by
a financial holding company may not:
(i)
Offer or market, directly or through any ar­
rangement, any product or service of any
company if more than 5 percent of the com ­
pany’s voting shares, assets or ownership in­
terests are owned or controlled by the finan­
cial holding company pursuant to this
subpart; or
(ii) Allow any product or service of the deposi­
tory institution, including any product or ser­
vice of a subsidiary of the depository institu­
tion, to be offered or marketed, directly or
through any arrangement, by or through any
company described in paragraph (a)( 1)(i) of
this section.
(2) How are certain subsidiaries treated? For pur­
poses of paragraph (a)(1) of this section, a subsid­
iary of a depository institution does not include a
financial subsidiary held in accordance with sec­
tion 5136A of the Revised Statutes (12 U.S.C.
24a) or section 46 of the Federal Deposit Insurance
Act. (12 U.S.C.1831w), any company held by a
company owned in accordance with section 25 or
25A of the Federal Reserve Act (12 U.S.C. 601
et seq.', 12 U.S.C. 611 et seq.), or any company
held by a small business investment company
owned in accordance with the Small Business
Investment Act of 1958 (15 U.S.C. 661 et seq.).
(3) How do the cross marketing restrictions apply to
private equity funds? The restriction contained in
paragraph (a)(1) of this section does not apply to:
(i)
Portfolio companies held by a private equity
fund that the financial holding company does
not control; or
(ii) The sale, offer or marketing of any interest in
a private equity fund, whether or not con­
trolled by the financial holding company.
(b) When are companies held under section 4(k)(4)(H)
affiliates under sections 23A and B?
(1) Rebuttable presumption of control. The following
rebuttable presumption of control shall apply for
purposes of sections 23A and 23B of the Federal
Reserve Act (12 U.S.C. 371c, 37lc - 1): if a finan­
cial holding company directly or indirectly owns or
controls more than 15 percent of the total equity of
a company pursuant to this subpart, the company
shall be presumed to be an affiliate of any member
bank that is affiliated with the financial holding
company.




(2) Request to rebut presumption. A financial holding
company may rebut this presumption by providing
information acceptable to the Board demonstrating
that the financial holding company does not control
the company.
(3) Presumptions that control does not exist. Absent
evidence to the contrary, the presumption in para­
graph (b)(1) of this section will be considered to
have been rebutted without Board approval under
paragraph (b)(2) o f this section if any one o f the
following requirements are met:
(i)
No officer, director or employee of the finan­
cial holding company serves as a director,
trustee, or general partner (or individual exer­
cising similar functions) of the company;
(ii) A person that is not affiliated or associated
with the financial holding company owns or
controls a greater percentage of the equity
capital of the portfolio company than the
amount owned or controlled by the financial
holding company, and no more than one offi­
cer or employee of the holding company
serves as a director or trustee (or individual
exercising similar functions) of the company;
or
(iii) A person that is not affiliated or associated
with the financial holding company owns or
controls more than 50 percent o f the voting
shares of the portfolio company, and officers
and employees of the holding company do
not constitute a majority of the directors or
trustees (or individuals exercising similar
functions) of the company.
(4) Convertible instruments. For purposes of para­
graph (b)(1) of this section, equity capital includes
options, warrants and any other instrument con­
vertible into equity capital.
(5) Application o f presumption to private equity funds.
A financial holding company will not be presumed
to own or control the equity capital of a company
for purposes of paragraph (b)(1) of this section
solely by virtue of an investment made by the
financial holding company in a private equity fund
that owns or controls the equity capital of the
company unless the financial holding company
controls the private equity fund as described in
section 225.173(d)(4).
(6) Application o f sections 23A and B to U.S. branches
and agencies o f foreign banks. Sections 23A and
23B o f the Federal Reserve Act (12 U.S.C. 371c,
3 7 lc - 1) shall apply to all covered transactions be­
tween each U.S. branch and agency of a foreign
bank that acquires or controls, or that is affiliated
with a company that acquires or controls, merchant
banking investments and:
(i)
Any portfolio company that the foreign bank
or affiliated company controls or is presumed
to control under paragraph (b)(1) of this sec­
tion; and

Legal Developments

(ii)

Any company that the foreign bank or affili­
ated company controls or is presumed to con­
trol under paragraph (b)(1) of this section if
the company is engaged in acquiring or con­
trolling merchant banking investments and
the proceeds of the covered transaction are
used for the purpose of funding the compa­
ny’s merchant banking investment activities.

Section 225,177—Definitions.
(a) What do references to a financial holding company
include ?
(1) Except as otherwise expressly provided, the term
“ financial holding com pany” as used in this sub­
part means the financial holding company and all
of its subsidiaries, including a private equity fund
or other fund controlled by the financial holding
company.
(2) Except as otherwise expressly provided, the term
“ financial holding com pany” does not include a
depository institution or subsidiary of a depository
institution or any portfolio company controlled di­
rectly or indirectly by the financial holding com ­
pany.
(b) What do references to a depository institution include?
For purposes of this subpart, the term “ depository institu­
tion” includes a U.S. branch or agency of a foreign bank.
(c) What is a portfolio company ? A portfolio company is
any company or entity:
(1) That is engaged in any activity not authorized for
the financial holding company under section 4 of

111

the Bank Holding Company Act (12 U.S.C. 1843);
and
(2) Any shares, assets or ownership interests of which
are held, owned or controlled directly or indirectly
by the financial holding company pursuant to this
subpart, including through a private equity fund
that the financial holding company controls.
(d) Who are the executive officers o f a company?
(1) An executive officer of a company is any person
who participates or has the authority to participate
(other than in the capacity as a director) in major
policymaking functions of the company, whether
or not the officer has an official title, the title
designates the officer as an assistant, or the officer
serves without salary or other compensation.
(2) The term “ executive officer” does not include:
(i)
Any person, including a person with an offi­
cial title, who may exercise a certain measure
of discretion in the performance o f his duties,
including the discretion to make decisions in
the ordinary course of the com pany’s busi­
ness, but who does not participate in the
determination of major policies of the com ­
pany and whose decisions are limited by pol­
icy standards fixed by senior management of
the company; or
(ii) Any person who is excluded from participat­
ing (other than in the capacity of a director)
in major policymaking functions of the com­
pany by resolution of the board of directors
or by the bylaws of the company and who
does not in fact participate in such policy­
making functions.

A pplicatio n s A ppr o v ed Und e r Ba n k H o ld in g C o m pa n y a c t

By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to
the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Section 3
Applicant(s)

Bank(s)

Effective Date

Mountain West Financial Corporation,
Helena, Montana

BankWest Financial, Inc.,
Kalispell, Montana
BankWest, National Association,
Kalispell, Montana

January 8, 2001




178 Federal Reserve Bulletin □ March 2001

A pplications A ppr o v ed Un d er Ba n k H o ld in g C o m pa n y A c t

By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Section 3
Applicant(s)

Bank(s)

Reserve Bank

Effective Date

Arkansas State Bancshares, Inc.,
Siloam Springs, Arkansas
Bedwell Investments, Inc.,
Jackson, Alabama
Bryan-Heritage Limited Partnership,
Bryan, Texas
Bryan Family Management Trust,
Bryan, Texas
Carlson Bancshares, Inc.,
West Memphis, Arkansas

Arkansas State Bank,
Siloam Springs, Arkansas
Merchants Trust, Inc.,
Jackson, Alabama
The First National Bank of Bryan,
Bryan, Texas

St. Louis

January 9, 2001

Atlanta

January 12, 2001

Dallas

January 9, 2001

St. Louis

December 28, 2000

Dallas

December 28, 2000

Chicago

January 5, 2001

Dallas

January 17, 2001

Atlanta

January 11, 2001

Cleveland

January 5, 2001

San Francisco

January 18, 2001

New York

December 29, 2000

Chicago

January 16, 2001

New York

December 28, 2000

Minneapolis

December 28, 2000

Kansas City

January 18, 2001

Chicago

January 16, 2001

Minneapolis

January 19, 2001

Charter Bancshares, Inc.,
Corpus Christi, Texas
Charter IBHC, Inc.,
Wilmington, Delaware
Comerica Incorporated,
Detroit, Michigan
Dickinson Holdings, Inc.,
Dickinson, Texas
Dickinson Holdings of Delaware,
Wilmington, Delaware
First Deposit Bancshares, Inc.,
Douglasville, Georgia
Fifth Third Bancorp,
Cincinnati, Ohio

Frontier Financial Corporation,
Everett, Washington

Holland Bancorp, Inc.,
Holland, New York
Indiana United Bancorp,
Greensburg, Indiana
Lakeland Bancorp, Inc.,
Oak Ridge, New Jersey
MSB Bankshares, Inc.,
Iron River, Michigan
Nebraska Bankshares, Inc.,
Farnam, Nebraska
Northstar Financial Group, Inc.,
Bad Axe, Michigan
Remada Financial Holdings, Inc.,
Minnetonka, Minnesota




Lakeside Bancshares, Inc.,
Hughes, Arkansas
The Planters National Bank of Hughes,
Hughes, Arkansas
Charter Bank-Northwest,
Corpus Christi, Texas

Imperial Bancorp,
Inglewood, California
Citizens State Bank of Dickinson,
Dickinson, Texas
League City Bank and Trust,
League City, Texas
Douglas Federal Bank,
Douglasville, Georgia
Capital Holding, Inc.,
Sylvania, Ohio
Capital Bank N.A.,
Sylvania, Ohio
Interbancorp, Inc.,
Duvall, Washington
Inter Bank,
Duvall, Washington
Bank of Holland,
Holland, New York
Regional Bank,
New Albany, Indiana
Sussex Bancorp,
Franklin, New Jersey
The Miners’ State Bank of Iron River,
Iron River, Michigan
Stockmens Financial Corporation,
Rushville, Nebraska
Northstar Bank,
Bad Axe, Michigan
Claremont Financial Services, Inc.,
St. Paul, Minnesota
Alliance Bank of Blooming Prairie,
Blooming Prairie, Minnesota

Legal Developments

179

Section 3—Continued
Applicant(s)

Bank(s)

Reserve Bank

Effective Date

State National Bancshares, Inc.,
Lubbock, Texas
Triple J Financial, Inc.,
Claude, Texas

Ruidoso Bank Corporation,
Ruidoso, New Mexico
First Caprock Bancshares, Inc.,
Claude, Texas
The First National Bank of Claude,
Claude, Texas
Desert Valley National Bank,
Cave Creek, Arizona

Dallas

January 3, 2001

Dallas

January 5, 2001

Kansas City

January 4, 2001

Fredericksburg State Bank,
Fredericksburg, Virginia
Fredericksburg Savings Bank,
Fredericksburg, Virginia
Republic Security Financial
Corporation,
West Palm Beach, Florida
Republic Security Bank,
West Palm Beach, Florida

Richmond

January 3, 2001

Richmond

January 24, 2001

Woodford State Bank,
Woodford, Wisconsin

Chicago

January 23, 2001

Applicant(s)

Nonbanking Activity/Company

Reserve Bank

Effective Date

Community First Bancshares, Inc.,
Union City, Tennessee
Cornerstone Financial Services
Group, Inc.,
Ottumwa, Iowa
Glacier Bancorp, Inc.,
Kalispell, Montana

Southern Financial, Inc.,
Brentwood, Tennessee
To engage de novo in extending credit
and servicing loans

St. Louis

December 27, 2000

Chicago

December 28, 2000

Minneapolis

January 19, 2001

Chicago

January 23, 2001

Philadelphia

January 3, 2001

St. Louis

December 29, 2000

United Nebraska Financial
Company,
Grand Island, Nebraska
Virginia Capital Bancshares, Inc.,
Fredericksburg, Virginia

Wachovia Corporation,
Winston-Salem, North Carolina

Woodford Bancshares, Inc.,
Monroe, Wisconsin

Section 4

Michigan National Corporation,
Farmington Hills, Michigan
PSB Bancorp, Inc.,
Philadelphia, Pennsylvania

Union Planters Corporation,
Memphis, Tennessee
Union Planters Holding Corporation,
Memphis, Tennessee




WesterFed Financial Corporation,
Missoula, Montana
Western Security Bank,
Missoula, Montana
Standard Federal Bank,
Troy, Michigan
Iron Bridge Holdings, Inc.,
Philadelphia, Pennsylvania
McGuire Performance Solutions, Inc.,
Philadelphia, Pennsylvania
Avanti Capital, Inc.,
Philadelphia, Pennsylvania
Jefferson Savings Bancorp, Inc.,
Ballwin, Missouri
Jefferson Heritage Bank,
Ballwin, Missouri

180 Federal Reserve Bulletin □ March 2001

Sections 3 and 4
Applicant(s)

Nonbanking Activity/Company

Reserve Bank

Effective Date

F&M National Corporation,
Winchester, Virginia

Atlantic Financial Corp.,
Newport News, Virginia
Johnson Mortgage Company, L.L.C.,
Newport News, Virginia
Bank of Lakewood,
Lakewood, California
Mission Hills Mortgage Corporation,
Santa Ana, California
Michigan National Corporation,
Farmington Hills, Michigan
Michigan National Bank,
Farmington Hills, Michigan
Independence One Life Insurance
Company,
Phoenix, Arizona
Independence One Capital Management
Corporation,
Farmington, Hills, Michigan

Richmond

January 9, 2001

San Francisco

January 18, 2001

Chicago

January 23, 2001

Gateway Bancorp,
Santa Ana, California

Stichting Prioriteit ABN AMRO
Holding,
Amsterdam, The Netherlands
Stichting Administratiekantoor ABN
AMRO Holding,
Amsterdam, The Netherlands
ABN AMRO Holding N.V.,
Amsterdam, The Netherlands
ABN AMRO Bank N.V.,
Amsterdam, The Netherlands
ABN AMRO North America
Holding Company,
Chicago, Illinois
ABN AMRO North America, Inc.,
Chicago, Illinois

A p p u c a t io n s a p p r o v e d u n d er BANK MERGER ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.

Applicant(s)

Bank(s)

Reserve Bank

Effective Date

M&I Marshall & Ilsley Bank,
Milwaukee, Wisconsin

M&I Central State Bank,
Oshkosh, Wisconsin
M&I Bank of Shawano,
Shawano, Wisconsin
M&I Bank Fox Valley,
Appleton, Wisconsin
M&I Bank Northeast,
Green Bay, Wisconsin

Chicago

January 11, 2001




Legal Developments

181

A pplications A pproved Under Bank M erger A ct—Continued
Applicant(s)

Bank(s)

Reserve Bank

Effective Date

M&I Marshall & Isley Bank,
Milwaukee, Wisconsin

M&I Citizens American Bank,
Merrill, Wisconsin
M&I Central Bank & Trust,
Marshfield, Wisconsin
M&I Bank of Eagle River,
Eagle River, Wisconsin
M&I Merchants Bank,
Rhinelander, Wisconsin
M&I First American Bank,
Wausau, Wisconsin
M&I Bank,
Ashland, Wisconsin
M&I Bank,
Superior, Wisconsin
M&I Mid State Bank,
Stevens Point, Wisconsin
Independent National Bank,
Irving, Texas
First Union National Bank,
Charlotte, North Carolina

Chicago

January 10, 2001

Atlanta

January 25, 2001

Atlanta

January 19, 2001

SouthTrust Bank,
Birmingham, Alabama
SouthTrust Bank,
Birmingham, Alabama

P ending Cases In volving

the

B oard

of

G overnors

This list of pending cases does not include suits against the
Federal Reserve Banks in which the Board of Governors is not
named a party.
Dime Bancorp, Inc. v. Board of Governors, No. 00-4249
(2d Cir., filed December 11, 2000). Petition for review of a
Board order dated September 27, 2000, approving the
applications of North Fork Corporation, Inc., Melville,
New York, to acquire control of Dime Bancorp, Inc. and to
thereby acquire its wholly owned subsidiary, The Dime
Savings Bank of New York, FSB, both of New York,
New York.
Nelson v. Greenspan, No. 99-215(EGS) (D.D.C., amended
complaint filed December 8, 2000). Employment discrimi­
nation action.
Howe v. Bank for International Settlements, No. 00CV12485
RCL (D. Mass., filed December 7, 2000). Action seeking
damages in connection with gold market activities and the
repurchase of privately-owned shares of the Bank for Inter­
national Settlements.
Barnes v. Reno, No. 1:00CV02900 (D.D.C., filed December 4,
2000). Civil rights action.
El Bey v. United States, No. 00-5293 (D.C. Cir., filed
August 31, 2000). Appeal from district court order dismiss­
ing pro se action as lacking arguable basis in law. The
government filed a motion for summary affirmance on
October 26, 2000.




Trans Union LLC v. Board of Governors, et al., No. 00-CV2087(ESH) (D.D.C., filed August 30, 2000). Action under
Administrative Procedure Act challenging a portion of inter­
agency rule regarding Privacy of Consumer Financial Infor­
mation.
Sedgwick v. Board of Governors, No. 00-16525 (9th Cir., filed
August 7, 2000). Appeal of district court dismissal of action
under Federal Tort Claims Act alleging violation of bank
supervision requirements.
Individual Reference Services Group, Inc., v. Board of Gover­
nors, et al., No. OO-CV-1828 (ESH) (D.D.C., filed July 28,
2000). Action under Administrative Procedure Act chal­
lenging a portion of interagency rule regarding Privacy of
Consumer Finance Information.
Reed Elsevier Inc. v. Board of Governors, No. 00-1289 (D.C.
Cir., filed June 30, 2000). Petition for review of interagency
rule regarding Privacy of Consumer Financial Information.
Bettersworth v. Board o f Governors, No. 00-50262 (5th Cir.,
filed April 14, 2000). Appeal of district court’s dismissal of
Privacy Act claims.
Albrecht v. Board of Governors, No. OO-CV-317 (CKK)
(D.D.C., filed February 18, 2000). Action challenging the
method of funding of the retirement plan for certain Board
employees.
Guerrero v. United States, No. CV-F-99-6771(OWW) (E.D.
Cal., filed November 29, 1999). Prisoner suit.
Artis v. Greenspan, No. 1.99CV02073 (EGS) (D.D.C., filed
August 3, 1999). Employment discrimination action.

182 Federal Reserve Bulletin □ March 2001

Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 (C.D.
Cal., filed July 21, 1999). Action relating to impounded
bank drafts. On December 3, 1999, the court stayed the
action indefinitely.
Fraternal Order of Police v. Board of Governors, No.
1:98CV03116 (WBB)(D.D.C., filed December 22, 1998).
Declaratory judgment action challenging Board labor prac­
tices. On February 26, 1999, the Board filed a motion to
dismiss the action.
Board of Governors v. Pharaon, No. 98-6101 (2d Cir., filed




May 4, 1998). Appeal and cross-appeal of district court
order granting in part and denying in part the Board’s
motion for summary judgment seeking prejudgment interest
and a statutory surcharge in connection with a civil money
penalty assessed by the Board. On February 24, 1999, the
court granted the Board’s appeal and denied the cross­
appeal, and remanded the matter to the district court for
determination of prejudgment interest due to the Board. On
January 29, 2001, the District Court approved a settlement
and terminated the action.

A1

Financial and Business Statistics
A3

d o m e s t i c F in a n c ia l S t a t i s t i c s

Money Stock and Bank Credit
A4
A5
A6

Reserves, money stock, and debt measures
Reserves of depository institutions and Reserve Bank
credit
Reserves and borrowings— Depository
institutions

Policy Instruments
A7
A8
A9

Federal Finance— Continued

G u id e t o t a b u l a r P r e s e n t a t i o n

Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Federal Reserve open market transactions

Federal Reserve Banks
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holding

A27 Gross public debt of U.S. Treasury—
Types and ownership
A28 U.S. government securities
dealers— Transactions
A29 U.S. government securities dealers—
Positions and financing
A30 Federal and federally sponsored credit
agencies— Debt outstanding

Securities Markets and Corporate Finance
A31 New security issues— Tax-exempt state and local
governments and corporations
A3 2 Open-end investment companies— Net sales
and assets
A32 Corporate profits and their distribution
A32 Domestic finance companies— Assets and liabilities
A3 3 Domestic finance companies— Owned and managed
receivables

Real Estate
Monetary and Credit Aggregates
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock and debt measures

Commercial Banking Institutions—
Assets and Liabilities
A15
A16
A17
A19
A20

All commercial banks in the United States
Domestically chartered commercial banks
Large domestically chartered commercial banks
Small domestically chartered commercial banks
Foreign-related institutions

A34 Mortgage markets— New homes
A35 Mortgage debt outstanding

Consumer Credit
A3 6 Total outstanding
A36 Terms

Flow o f Funds
A37
A39
A40
A41

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

Financial Markets
A22 Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates— Money and capital markets
A24 Stock market— Selected statistics

Federal Finance
A25 Federal fiscal and financing operations
A26 U.S. budget receipts and outlays
A27 Federal debt subject to statutory limitation




D o m e s t ic n o n f in a n c ia l S t a t is t ic s

Selected Measures
A42
A42
A43
A44
A46
A47
A48
A49

Nonfinancial business activity
Labor force, employment, and unemployment
Output, capacity, and capacity utilization
Industrial production— Indexes and gross value
Housing and construction
Consumer and producer prices
Gross domestic product and income
Personal income and saving

A2

Federal Reserve Bulletin □ March 2001

INTERNATIONAL STATISTICS

Summary Statistics
A50
A51
A51
A 51

U.S. international transactions
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A52 Selected U.S. liabilities to foreign official
institutions

Reported by Banks in the United States
A52
A53
A55
A56

Liabilities to, and claims on, foreigners
Liabilities to foreigners
Banks’ own claims on foreigners
Banks’ own and domestic customers’ claims on
foreigners
A56 Banks’ own claims on unaffiliated foreigners
A57 Claims on foreign countries— Combined
domestic offices and foreign branches




Reported by Nonbanking Business
Enterprises in the United States
A58 Liabilities to unaffiliated foreigners
A59 Claims on unaffiliated foreigners

Securities Holdings and Transactions
A60 Foreign transactions in securities
A61 Marketable U.S. Treasury bonds and
notes— Foreign transactions

Interest and Exchange Rates
A62 Foreign exchange rates
A63 G u id e t o S t a t i s t i c a l R e le a s e s a n d

S p e c ia l T a b le s
A64 i n d e x t o S t a t i s t i c a l T a b le s

A3

Guide to Tabular Presentation
Sym bols
c
e
n.a.
n.e.c.
p
r

*

0
ABS
ATS
BIF
CD
CM O
CRA
FAM C
FFB
FH A
FH LBB
FHLM C
Fm H A
FNM A
F SA
FSLIC

General

and

A b b r e v ia t io n s

Corrected
Estimated
N ot available
N ot elsew here classified
Preliminary
R evised (N otation appears on colum n heading
when about half o f the figures in that colum n
are changed.)
Am ounts insignificant in terms o f the last decim al
place show n in the table (for exam ple, less than
5 0 0 ,0 0 0 w hen the sm allest unit given is m illions)
Calculated to be zero
C ell not applicable
A sset-backed security
A utom atic transfer service
Bank insurance fund
Certificate o f deposit
Collateralized mortgage obligation
Com munity Reinvestm ent Act o f 1977
Federal Agricultural M ortgage Corporation
Federal Financing Bank
Federal H ousing Administration
Federal H om e Loan Bank Board
Federal H om e Loan M ortgage Corporation
Farmers H om e Administration
Federal N ational M ortgage A ssociation
Farm Service A gency
Federal Savings and Loan Insurance Corporation

G-7
G -10
G DP
GNM A
HUD
IMF
IOs
IPCs
IRA
MMDA
M SA
NOW
OCDs
OPEC
OTS
PMI
POs
REIT
REM ICs
RHS
RP
RTC
SCO
SD R
SIC
VA

Group o f Seven
Group o f Ten
Gross dom estic product
G overnm ent National M ortgage A ssociation
Department o f H ousing and Urban
D evelopm ent
International Monetary Fund
Interest only, stripped, m ortgage-back securities
Individuals, partnerships, and corporations
Individual retirement account
M oney market deposit account
M etropolitan statistical area
N egotiable order o f withdrawal
Other checkable deposits
Organization o f Petroleum Exporting Countries
O ffice o f Thrift Supervision
Private mortgage insurance
Principal only, stripped, m ortgage-back securities
Real estate investm ent trust
Real estate m ortgage investm ent conduits
Rural H ousing Service
Repurchase agreement
R esolution Trust Corporation
Securitized credit obligation
Special drawing right
Standard Industrial C lassification
Department o f Veterans Affairs

in f o r m a t io n

In many o f the tables, com ponents do not sum to totals because o f
rounding.
M inus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
“ U.S. governm ent securities” m ay include guaranteed issues
o f U.S. governm ent agencies (the flow o f funds figures also




include not fully guaranteed issu es) as w ell as direct obliga­
tions o f the Treasury.
“State and local governm ent” also includes m unicipalities,
special districts, and other political subdivisions.

A4

Domestic Financial Statistics □ March 2001

1.10

RESERVES, MONEY STOCK, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted1
2000

2000

Monetary or credit aggregate
Q lr

Q2r

Q3r

Q4

Aug.1

Sept.r

Oct.r

Nov.r

Dec.

1
2
3
4

Reserves o f depository institutions2
Total ........................ .'........................................................................................
R eq u ire d .............................................................................................................
Nonborrowed ....................................................................................................
Monetary base3 ...............................................................................................

1.8
.1
2.4
4.5

- 9 .5
- 5 .9
-1 1 .1
- 3 .9

-7 .1
- 7 .4
- 8 .8
2.7

- 8 .0
- 9 .8
- 5 .7
2.8

- 9 .4
- 8 .0
- 9 .8
1.4

—2.5
- 5 .3
.6
3.3

- 9 .7
- 1 0 .8
- 8 .0
3.2

- 3 .0
-5 .3
1.1
.3

-2 2 .9
- 2 7 .5
- 2 0 .8
7.1

5
6
7
8

Concepts o f money and debt4
M l ........................ ' .............................................................................................
M 2 ........................................................................................................................
M 3 ........................................................................................................................
Debt ...................................................................................................................

2.0
5.8
10.6
5.6

- 1 .8
6.4
9.0
6.1

- 3 .7
5.8
8.9
4.8

- 2 .7
6.7
7.1
4.0

- 4 .7
7.8
10.4
4.1

- 4 .3
8.2
9.2
5.1

.7
5.6
4.6
2.8

- 7 .8
4.3
4.4
4.2

2.3
9.7
12.7
n.a.

Nontransaction components
9 In M25.................................................................................................................
10 In M3 only6........................................................................................................

70
22.6

8.9
15.3

86
16.4

94
8.3

11.6
16.5

11 9
11.4

7 1
2.1

7.9
4.5

11.9
19.7

Time and savings deposits
Commercial banks
Savings, including MMDAs .....................................................................
Small time7 ....................................................................................................
Large time8'9 .................................................................................................
Thrift institutions
14
Savings, including MMDAs .....................................................................
15
Small time7 ....................................................................................................
16
Large time8 ..................................................................................................

2.5
9.4
20.2

7.8
13.2
17.1

11.8
10.5
11.5

12.0
5.7
2.4

15.4
9.2
18.9

19.4
4.9
-4 .1

5.1
3.3
- 8 .2

10.5
7.0
4.8

16.4
8.6
26.2

- 2 .9
7.2
14.5

1.6
3.3
.4

3.2
11.2
20.8

.6
10.1
16.1

6.1
15.1
22.1

.0
10.0
14.5

4.2
10.2
22.6

- 2 .4
9.5
11.7

- 8 .2
5.6
1.2

Money market mutual funds
17 Retail .................................................................................................................
18 Institution-only.................................................................................................

17.6
23.0

13.3
18.0

4.2
29.4

12.6
18.7

8.9
27.4

12.6
28.8

13.3
10.2

9.2
12.9

19.6
24.7

Repurchase agreements and eurodollars
19 Repurchase agreements10................................................................................
20 Eurodollars10......................................................................................................

20.2
39.8

11.1
15.6

8.2
.6

- 3 .5
9.2

- 9 .8
15.7

2.3
19.3

- 3 .3
7.6

-1 4 .5
3.1

12.7
-1 .3

Debt components4
21 Federal ...............................................................................................................
22 Nonfederal ........................................................................................................

- 4 .8
8.4

- 7 .5
9.6

- 7 .2
7.8

- 7 .9
6.8

- 7 .3
6.8

- 4 .8
7.4

-1 0 .0
5.8

- 9 .2
7.3

11
12
13

1. Unless otherwise noted, rates of change are calculated from average amounts outstand­
ing during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or “ breaks,” associated with
regulatory changes in reserve requirements. (See also table 1.20.)
3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the “ Report of
Transaction Accounts, Other Deposits and Vault Cash” and for all weekly reporters whose
vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference
between current vault cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
M l: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government, and
foreign banks and official institutions, less cash items in the process of collection and Federal
Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions,
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted M l is computed by summing currency, travelers checks, demand deposits, and
OCDs, each seasonally adjusted separately.
M2: M l plus (1) savings (including MMDAs), (2) small-denomination time deposits (time
deposits— including retail RPs— in amounts of less than $ 100,000), and (3) balances in retail
money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh
balances at depository institutions and money market funds. Seasonally adjusted M2 is
calculated by summing savings deposits, small-denomination time deposits, and retail money
fund balances, each seasonally adjusted separately, and adding this result to seasonally
adjusted M 1.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2)
balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all




n.a.
n.a.

depository institutions, and (4) eurodollars (overnight and term) held by U.S. residents at
foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom
and Canada. Excludes amounts held by depository institutions, the U.S. government, money
market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated
by summing large time deposits, institutional money fund balances, RP liabilities,
and eurodollars, each seasonally adjusted separately, and adding this result to seasonally
adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt o f the domestic nonfinancial
sectors— the federal sector (U.S. government, not including government-sponsored enter­
prises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances, each seasonally adjusted separately.
6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) eurodollars (overnight and
term) of U.S. addressees, each seasonally adjusted separately.
7. Small time deposits— including retail RPs— are those issued in amounts of less than
$100,000. All IRA and Keogh account balances at commercial banks and thrift institutions
are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
10. Includes both overnight and term.

M oney Stock and Bank Credit
1.11

A5

RESERVES OF DEPOSITORY INSTITUTIONS A ND RESERVE BANK CREDIT1
M illio n s o f d o lla rs
Average of
daily figures
2000

Factor

Average of daily figures for week ending on date indicated

2000

Oct.

Nov.

Dec.

Nov. 15

Nov. 22

Nov. 29

Dec. 6

Dec. 13

Dec. 20

Dec. 27

S upplying R eserv e F unds
1 Reserve Bank credit outsta n d in g ...............................
U.S. government securities2
2
Bought outright— System account3....................
3
Held under repurchase agreements ..................
Federal agency obligations
4
Bought outright ...................................................
5
Held under repurchase agreements ..................
6
Repurchase agreements— triparty4 ........................
7
Acceptances ..............................................................
Loans to depository institutions
8
Adjustment c r e d it.................................................
9
Seasonal credit .....................................................
10
Special Liquidity Facility c re d it........................
11
Extended c re d it.....................................................
12
Float ............................................................................
13
Other Federal Reserve a s s e ts .................................
14 Gold stock .....................................................................
15 Special drawing rights certificate a c co u n t................
16 Treasury currency outstanding...................................

561,406

568,061

578,893

566,709

568,001

573,552

571,891

572,875

578,282

584,314

510,713
0

512,368
0

514,072
0

512,336
0

513,025
0

513,689
0

513,267
0

513,715
0

514,737
0

515,595
0

130
0
12,875
0

130
0
19,549
0

130
0
27,923
0

130
0
17,427
0

130
0
19,618
0

130
0
24,720
0

130
0
23,677
0

130
0
22,621
0

130
0
25,021
0

130
0
31,759
0

120
298
0
0
1,192
36,078

121
157
0
0
962r
34,774

96
114
0
0
1,503
35,054

38
155
0
0
1,071
35,552

416
148
0
0
952
33,712

48
148
0
0
650
34,166

69
121
0
0
520
34,107

4
124
0
0
1,702
34,579

295
121
0
0
2,975
35,002

41
112
0
0
1,182
35,494

11,046
3,200
30,975

11,046
3,200
31,286

11,046
2,652
31,528

11,046
3,200
31,266

11,046
3,200
31,311

11,046
3,200
31,356

11,046
3,200
31,401

11,046
3,200
31,493

11,046
2,343
31,543

11,046
2,200
31,593

571,604
0
248

576,006
0
289

584,582
0
403

574,203
0
274

576,550
0
289

580,489
0
315

579,278
0
353

580,186
0
404

583,205
0
404

589,803
0
416

5,338
95
6,733
251
15,717
6,640

5,093
86
6,767
234
17,529
7,589

5,758
115
6,959
355
18,401
7,545

5,279
79
6,947
200
17,528
7,709

5,175
92
6,600
238
17,755
6,859

5,275
81
6,606
263
18,272
7,409

5,382
75
6,980
244
18,507
6,836

8,105
160
6,696
222
18,581
5,840

4,340
103
7,236
258
18,417
8,579

Dec. 20

Dec. 27

A bsorbing R eserve Funds
17 Currency in circulation ...............................................
18 Reverse repurchase agreements— triparty4 ..............
19 Treasury cash holdings ...............................................
Deposits, other than reserve balances, with
Federal Reserve Banks
20
Treasury .....................................................................
21
Foreign .......................................................................
22
Service-related balances and ad ju stm e n ts...........
23
O t h e r ............................................................................
24 Other Federal Reserve liabilities and capital .........
25 Reserve balances with Federal Reserve Banks' . . .

4,940
74
6,758
229
18,027
8,321r

End-of-month figures

Wednesday figures

Oct.

Nov.

Dec.

Nov. 15

Nov. 22

Nov. 29

Dec. 6

Dec. 13

S upplying R eserve Funds
1 Reserve Bank credit o u tsta n d in g ...............................
U.S. government securities2
2
Bought outright— System account3 ..................
3
Held under repurchase agreements ..................
Federal agency obligations
4
Bought outright ...................................................
5
Held under repurchase agreements ..................
6
Repurchase agreements— triparty4 ........................
7
Acceptances................................................................
Loans to depository institutions
8
Adjustment c r e d it.................................................
9
Seasonal credit .....................................................
10
Special Liquidity Facility c re d it........................
11
Extended c re d it......................................................
12
Float ............................................................................
13
Other Federal Reserve a s s e ts .................................
14 Gold stock .....................................................................
15 Special drawing rights certificate a c c o u n t................
16 Treasury currency outstanding....................................

566,215

575,908

593,092

570,798

573,538

574,811

570,733

581,584

579,269

597,301

508,961
0

512,327
0

511,703
0

511,748
0

513,813
0

514,308
0

513,100
0

515,115
0

514,539
0

515,491
0

130
0
19,440
0

130
0
27,270
0

130
0
43,375
0

130
0
25,795
0

130
0
24,615
0

130
0
25,630
0

130
0
22,525
0

130
0
27,260
0

130
0
25,710
0

130
0
43,985
0

29
219
0
0
1,438
35,999

6
130
0
0
2,096
33,949

33
77
0
0
901
36,873

251
156
0
0
95
32,622

1
145
0
0
874
33,959

286
152
0
0
-1 3 6
34,440

13
121
0
0
524
34,319

5
129
0
0
4,105
34,841

5
120
0
0
3,541
35,225

21
96
0
0
1,828
35,750

11,046
3,200
31,093

11,046
3,200
31,401

11,046
2,200
31,643

11,046
3,200
31,266

11,046
3,200
31,311

11,046
3,200
31,356

11,046
3,200
31,401

11,046
3,200
31,493

11,046
2,200
31,543

11,046
2,200
31,593

572,397
0
289

579,782
0
344

593,694
0
450

575,884
0
285

580,287
0
311

581,077
0
344

580,379
0
403

582,550
0
412

586,969
0
410

593,356
0
450

5,360
115
6,829
245
16,416
9,903

4,382
104
6,606
276
18,199
11,861

5,149
216
7,428
1,382
17,962
11,701

4,850
90
6,947
266
17,318
10,670

4,413
71
6,600
233
17,669
9,511

5,215
89
6,606
244
18,074
5,370

4,947
72
6,980
248
18,400
13,714

4,781
227
6,696
211
18,140
6,625

5,320
83
7,236
235
18,062
17,396

A bsorbing R eserv e F unds
17 Currency in circulation ...............................................
18 Reverse repurchase agreements— triparty4 .............
19 Treasury cash holdings ...............................................
Deposits, other than reserve balances, with
Federal Reserve Banks
20
Treasury .....................................................................
21
Foreign .......................................................................
22
Service-related balances and ad ju stm e n ts...........
23
O t h e r ............................................................................
24 Other Federal Reserve liabilities and capital .........
25 Reserve balances with Federal Reserve Banks5 . . .

1. Amounts of cash held as reserves are shown in table 1.12, line 2.
2. Includes securities loaned— fully guaranteed by U.S. government securities pledged
with Federal Reserve Banks— and excludes securities sold and scheduled to be bought back
under matched sale-purchase transactions.
3. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.




5,056
73
6,758
227
17,913
8,964r

4. Cash value of agreements arranged through third-party custodial banks. These agreements are collateralized by U.S. government and federal agency securities.
5. Excludes required clearing balances and adjustments to compensate for float,

A6

Domestic Financial Statistics □ March 2001

1.12

RESERVES AND BORROW INGS

D epository Institutions'

Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification

Reserve balances with Reserve Banks2...........................
Total vault cash3..................................................................
Applied vault cash4 ........................................................
Surplus vault cash5..........................................................
Total reserves6 .....................................................................
Required reserves ..........................................................
Excess reserve balances at Reserve Banks7 .............
Total borrowing at Reserve B a n k s .................................
A djustm ent.......................................................................
S easonal...........................................................................
Special Liquidity Facility8 ............................................
Extended credit9 ..............................................................

1999

2000

Dec.
1
2
3
4
5
6
7
8
9
10
11
12

1998

2000

Dec.

Dec.

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

9,026
44,294
36,183
8,111
45,209
43,695
1,514
117
101
15
0
0

5,263
60,619
36,392
24,227
41,655
40,348
1,307
320
179
67
74
0

7,160
45,120
31,381
13,739
38,541
37,215
1,325
210
99
111
0
0

6,460
44,560
32,757
11,802
39,217
38,153
1,064
479
90
389
0
0

6,582
45,473
33,086
12,387
39,668
38,600
1,068
570
60
510
0
0

6,875
45,319
32,611
12,708
39,486
38,471
1,014
579
25
554
0
0

6,829
44,807
32,429
12,378
39,257
38,155
1,102
477
50
427
0
0

6,782
45,178
32,072
13,106r
38,854
37,725
1,129
418
119
299
0
0

7,157
44,546r
31,632r
12,914r
38,789r
37,587r
1,202
283
124
159
0
0

7,160
45,120
31,381
13,739
38,541
37,215
1,325
210
99
111
0
0

Biweekly averages of daily figures for two-week periods ending on dates indicated

Sept. 6
1
2
3
4
5
6
7
8
9
10
11
12

Reserve balances with Reserve Banks2...........................
Total vault cash3..................................................................
Applied vault cash4 .......................................................
Surplus vault cash5..........................................................
Total reserves6 .....................................................................
Required reserves ..........................................................
Excess reserve balances at Reserve Banks7 .............
Total borrowing at Reserve B a n k s .................................
Adjustm ent.......................................................................
S easonal...........................................................................
Special Liquidity Facility8 ............................................
Extended credit9 ..............................................................

Sept. 20

Oct. 4

Oct. 18

Nov. 1

Nov. 15

Nov. 29r

Dec. 13r

Dec. 27

Jan. 10

6,911
44,097
32,184
11,913
39,095
38,118
977
604
45
559

6,578
44,823
32,077
12,746
38,655
37,612
1,043
473
70
403

7,131
45,210
33,068
12,142
40,198
38,938
1,260
409
26
383

6,502
45,778
31,601
14,177
38,103
37,073
1,030
480
167
313

6,976
44,523r
32,274
12,249r
39,250
38,056
1,194
355
97
259

6,709
44,633r
31,056
13,577r
37,765
36,762
1,003
190
25
165

7,620
44,539
32,261
12,278
39,881
38,474
1,407
380
232
148

7,131
43,452
30,255
13,197
37,386
36,253
1,133
159
37
123

7,208
46,220
32,370
13,850
39,578
38,124
1,454
285
169
117

7,085
46,696
31,579
15,117
38,664
37,165
1,499
110
56
55

0

0

0

0

0

0

0

0

1. Data in this table also appear in the Board’s H.3 (502) weekly statistical release. For
ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted.
2. Excludes required clearing balances and adjustments to compensate for float and
includes other off-balance-sheet “as-o f ’ adjustments.
3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by
those banks and thrift institutions that are not exempt from reserve requirements. Dates refer
to the maintenance periods in which the vault cash can be used to satisfy reserve require­
ments.
4. All vault cash held during the lagged computation period by “ bound” institutions (that
is, those whose required reserves exceed their vault cash) plus the amount of vault cash
applied during the maintenance period by “ nonbound” institutions (that is, those whose vault
cash exceeds their required reserves) to satisfy current reserve requirements.




0

0

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. Borrowing at the discount window under the terms and conditions established for the
Century Date Change Special Liquidity Facility in effect from October 1, 1999, through
April 7, 2000.
9. Consists of borrowing at the discount window under the terms and conditions estab­
lished for the extended credit program to help depository institutions deal with sustained
liquidity pressures. Because there is not the same need to repay such borrowing promptly as
with traditional short-term adjustment credit, the money market effect of extended credit is
similar to that of nonborrowed reserves.

Policy Instruments A7
1.14

FEDERAL RESERVE BANK INTEREST RATES
P e rc e n t p e r y e a r
Current and previous levels

B o s to n ....................
New Y o r k .............
Philadelphia .........
Cleveland .............
Richmond .............
A tlan ta ....................
C h ic a g o ..................
St. Louis ................
Minneapolis .........
Kansas C ity ...........
D allas......................
San Francisco . . . .

On
2/16/01

5.50
5.50
5.50
5.50
5.50
5.50

1/31/01
2/1/01
1/31/01
2/1/01
1/31/01
1/31/01

5.50
5.50
5.50
5.50
5.50
5.50

5.00

Effective date

Previous rate

On
2/16/01

Effective date

Previous rate

2/8/01

5.80

6.05

2/8/01

6.30

5.55

Previous rate

1/31/01
1/31/01
1/31/01
1/31/01
1/31/01
1/31/01

On
2/16/01
5.55

Effective date

5.00

Extended credit3

Seasonal credit2

Adjustment credit1
Federal Reserve
Bank

2/8/01

5.80

6.05

2/8/01

6.30

Range of rates for adjustment credit in recent years4
^ange (or
evel)— All
'.R. Banks

In effect Dec. 31,1977

6

9
90
May 11

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

1978— Jan.

V>

3
III
Aug. 91
Sept. 77
Oct. 16
?0
Nov. 1
3
July

1979—July 90
Aug. IV
?l)

Sept. 19
-U
Oct. 8
10

10
10-10.5
10.5
10.5-11
11
11-12
12

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

1980— Feb. 15
19
May 79
311
June 13
16
July n
74
Sept. 76
Nov. 1 /
Dec. 5
8

12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13

13
13
13
12
11
11
10
10
11
12
13
13

5
8
Nov. 7
6
Dec. 4

13-14
14
13-14
13
12

14
14
13
13
12

-July 20
23
Aug. 2
3
16
27
30

11.5-12
11.5
11-11.5
11
10.5
10-10.5
10

1981— May

11.5
11.5
11
11
10.5
10
10

F.R. Bank
of
N.Y.

9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5

9.5
9.5
9
9
9
8.5
8.5

...............................
...............................
...............................
...............................
...............................

8.5-9
9
8.5-9
8.5
8

9
9
8.5
8.5
8

1985— May 2 0 ...............................
2 4 ...............................

7.5-8
7.5

7.5
7.5

1986— Mar.

7 ...............................
1 0 ...............................
Apr. 21 ...............................
23.................................
July 11 ...............................
Aug. 21 ...............................
2 2 ...............................

7-7.5
7
6.5-7
6.5
6
5.5-6
5.5

7
7
6.5
6.5
6
5.5
5.5

1987— Sept. 4 ...............................
11 ...............................

5.5-6
6

6
6

1988— Aug. 9 ...............................
11 ...............................

6-6.5
6.5

6.5
6.5

1982— Oct. 1 2 ...............................
13 ...............................
Nov. 22 ...............................
2 6 ...............................
Dec. 14 ...............................
15 ...............................
17 ...............................

F.R. Bank
of
N.Y.

3-3.5
3.5
3.5-4
4
4-4.75
4.75

3.5
3.5
4
4
4.75
4.75

1
9

4.75-5.25
5.25

5.25
5.25

1996— Jan. 31
Feb. 5

5.00-5.25
5.00

5.00
5.00

1998— Oct. 15
16
Nov. 17
19 .

4.75-5.00
4.75
4.50-4.75
4.50

4.75
4.75
4.50
4.50

1999— Aug. 24 .
26
Nov. 16 .
18

4.50^1.75
4.75
4.75-5.00
5.00

4.75
4.75
4.75
5.00

2000— Feb.

.
.
.
.
.

5.00-5.25
5.25
5.25-5.50
5.50
5.50-6.00
6.00

5.25
5.25
5.50
5.50
5.50
6.00

3.
4
5.
31
1.

5.75-6.00
5.50-5.75
5.50
5.00-5.50
5.00

5.75
5.50
5.50
5.00
5.00

5.00

5.00

Effectiv

1994— May 17
18
Aug. 16
18
Nov. 15
17
1995— Feb.

1984— Apr.

9
13
Nov. 21
26
Dec. 2 4

1989— Feb. 2 4 ...............................
2 7 ...............................
1990—Dec. 1 9 ...............................
1991—Feb.
Apr.
May
Sept.
Nov.
Dec.
1992—July

6.5-7
7

2
4
Mar. 21
23
May 16
19

7
7

6.5

6.5

1 ...............................
4 ...............................
3 0 ...............................
2 ...............................
1 3 ...............................
1 7 ...............................
6 ...............................
7 ...............................
2 0 ...............................
2 4 ...............................

6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5

6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5

2 ...............................
7 ...............................

3-3.5
3

1. Available on a short-term basis to help depository institutions meet temporary needs for
funds that cannot be met through reasonable alternative sources. The highest rate established
for loans to depository institutions may be charged on adjustment credit loans of unusual size
that result from a major operating problem at the borrower’s facility.
2. Available to help relatively small depository institutions meet regular seasonal needs for
funds that arise from a clear pattern o f intrayearly movements in their deposits and loans and
that cannot be met through special industry lenders. The discount rate on seasonal credit takes
into account rates charged by market sources of funds and ordinarily is reestablished on the
first business day of each two-week reserve maintenance period; however, it is never less than
the discount rate applicable to adjustment credit.
3. May be made available to depository institutions when similar assistance is not
reasonably available from other sources, including special industry lenders. Such credit may
be provided when exceptional circumstances (including sustained deposit drains, impaired
access to money market funds, or sudden deterioration in loan repayment performance) or
practices involve only a particular institution, or to meet the needs of institutions experiencing
difficulties adjusting to changing market conditions over a longer period (particularly at times
of deposit disintermediation). The discount rate applicable to adjustment credit ordinarily is
charged on extended-credit loans outstanding less than thirty days; however, at the discretion




(or
level)— All
F.R. Banks

2001— Jan.

Range (or
level)— All
F.R. Banks

Effective date

Feb.

In effect Feb. 16,

3
3

o f the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a
flexible rate somewhat above rates charged on market sources of funds is charged. The rate
ordinarily is reestablished on the first business day of each two-week reserve maintenance
period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis
points.
4.
For earlier data, see the following publications of the Board of Governors: Banking and
Monetary Statistics, 1914-1941, and 1941-1970\ and the Annual Statistical Digest, 19701979.
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.

A8

Domestic Financial Statistics □ March 2001

1.15

RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS'
Requirement
Type of deposit
Percentage of
deposits

Effective date

1
2

Net transaction accounts2
$0 million-$42.8 million3 ...............................................................................................................................................................................
More than $42.8 million4 ...............................................................................................................................................................................

3
10

12/28/00
12/28/00

3

Nonpersonal time deposits5.............................................................................................................................................................................

0

12/27/90

4

Eurocurrency liabilities6...................................................................................................................................................................................

0

12/27/90

1. Required reserves must be held in the form of deposits with Federal Reserve Banks
or vault cash. Nonmember institutions may maintain reserve balances with a Federal
Reserve Bank indirectly, on a pass-through basis, with certain approved institutions. For
previous reserve requirements, see earlier editions of the Annual Report or the Federal
Reserve Bulletin. Under the M onetary Control Act of 1980, depository institutions
include commercial banks, savings banks, savings and loan associations, credit unions,
agencies and branches of foreign banks, and Edge Act corporations.
2. Transaction accounts include all deposits against which the account holder is permitted
to make withdrawals by negotiable or transferable instruments, payment orders of with­
drawal, or telephone or preauthorized transfers for the purpose of maiking payments to third
persons or others. However, 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
by check, draft, debit card, or similar order payable directly to third parties) are savings
deposits, not transaction accounts.
3. The Monetary Control Act of 1980 requires that the amount of transaction accounts
against which the 3 percent reserve requirement applies be modified annually by 80 percent of
the percentage change in transaction accounts held by all depository institutions, determined
as of June 30 of each year. Effective with the reserve maintenance period beginning
December 28, 2000, for depository institutions that report weekly, and with the period
beginning January 18, 2001, for institutions that report quarterly, the amount was decreased
from $44.3 million to $42.8 million.
Under the G arn-St Germain Depository Institutions Act of 1982, the Board adjusts the
amount of reservable liabilities subject to a 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 made in the event of a decrease. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve
maintenance period beginning December 28, 2000, for depository institutions that report
weekly, and with the period beginning January 18, 2001, for institutions that report quarterly,
the exemption was raised from $5.0 million to $5.5 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on
Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that
report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits
with an original maturity of less than 1 x i years was reduced from 3 percent to 1 'A percent for
/
the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that
began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on
nonpersonal time deposits with an original maturity o f less than 1 Vi years was reduced from 3
percent to zero on Jan. 17, 1991.
The reserve requirement on nonpersonal time deposits with an original maturity of 1V6
years or more has been zero since Oct. 6, 1983.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to zero
in the same manner and on the same dates as the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1‘/2 years (see note 5).

Policy Instruments A9
1.17 FEDERA L RESERVE OPEN M ARKET T R A N SA CTIO N S1
Millions of dollars
2000
Type of transaction
and maturity

1997

1998

1999
May

June

July

Aug.

Sept.

Oct.

Nov.

U.S. T reasury S ecu rities 2
Outright transactions (excluding matched
transactions)
Treasury bills
Gross purchases ..............................................................
Gross sales .......................................................................
Exchanges ..........................................................................
For new b ills .....................................................................
R edem ptions.....................................................................
Others within one year
Gross purchases ..............................................................
Gross sales .......................................................................
Maturity sh ifts...................................................................
Exchanges .........................................................................
R edem ptions.....................................................................
One to five years
Gross purchases ..............................................................
Gross sales .......................................................................
Maturity sh ifts...................................................................
Exchanges .........................................................................
Five to ten years
Gross purchases ..............................................................
Gross sales .......................................................................
Maturity sh ifts...................................................................
Exchanges .........................................................................
More than ten years
Gross purchases ..............................................................
Gross sales .......................................................................
Maturity sh ifts...................................................................
Exchanges .........................................................................
All maturities
Gross purchases ..............................................................
Gross sales .......................................................................
R edem ptions.....................................................................

9,147
0
435,907
435,907
0

3,550
0
450,835
450,835
2,000

0
0
464,218
464,218
0

0
0
36,386
36,386
2,297

0
0
44,008
44,008
4,188

1,825
0
33,718
33,718
4,902

531
0
42,797
42,797
3,438

231
0
37,006
37,006
3,898

779
0
38,142
38,142
2,656

2,507
0
45,182
45,182
1,021

5,549
0
41,716
-2 7 ,4 9 9
1,996

6,297
0
46,062
-4 9 ,4 3 4
2,676

11,895
0
50,590
-5 3 ,3 1 5
1,429

164
0
13,063
-1 2,633
0

1,875
0
4,672
-3 ,1 0 9
0

1,284
0
5,152
-3 ,3 3 3
367

2,770
0
7,040
-7 ,3 9 6
887

716
0
0
0
0

0
0
8,663
-6 ,6 0 8
787

580
0
7,957
-7 ,0 1 2
780

20,080
0
-3 7 ,9 8 7
20,274

12,901
0
-3 7 ,7 7 7
37,154

19,731
0
-4 4 ,0 3 2
42,604

890
0
-1 0 ,3 3 4
10,063

706
0
-4 ,6 7 2
3,109

2,259
0
-5 ,1 5 2
3,333

2,508
0
-3 ,4 3 9
5,418

2,385
0
0
0

734
0
-8 ,6 6 3
6,608

1,332
0
-5 ,9 9 7
5,737

3,449
0
-1 ,9 5 4
5,215

2,294
0
-5 ,9 0 8
7,439

4,303
0
-5 ,8 4 1
7,583

0
0
-1 ,5 5 2
2,570

0
0
0
0

0
0
0
0

1,914
0
-3 ,6 0 1
1,254

448
0
0
0

0
0
0
0

510
0
-6 9 9
1,275

5,897
0
-1 ,7 7 5
2,360

4,884
0
-2 ,3 7 7
4,842

9,428
0
-7 1 7
3,139

528
0
-1 ,1 7 7
0

1,151
0
0
0

500
0
0
0

727
0
0
724

547
0
0
0

982
0
0
0

0
0
-1 ,2 6 1
0

44,122
0
1,996

29,926
0
4,676

45,357
0
1,429

1,582
0
2,297

3,732
0
4,188

5,868
0
5,269

8,450
0
4,325

4,326
0
3,898

2,495
0
3,443

4,929
0
1,802

Matched transactions
26 Gross purchases ...................................................................
27 Gross sales ............................................................................

3,591,210
3,593,530

4,430,457
4,434,358

4,413,430
4,431,685

357,355
356,640

368,396
369,739

344,935
344,384

381,349
381,475

335,321
334,530

344,920
346,428

351,391
351,232

Repurchase agreements
28 Gross purchases ...................................................................
29 Gross sales ............................................................................

810,485
809,268

512,671
514,186

281,599
301,273

0
0

0
0

0
0

0
0

0
0

0
0

0
0

30 Net change in U.S. Treasury se c u ritie s ...........................

41,022

19,835

5,999

-1 ,8 0 0

1,150

3,999

1,219

-2 ,4 5 7

3,286

Outright transactions
31 Gross purchases ...................................................................
32 Gross sales ............................................................................
33 R edem ptions..........................................................................

0
0
1,540

0
25
322

0
0
157

0
0
0

0
0
0

0
0
0

0
0
0

0
0
10

0
0
0

0
0
0

Repurchase agreements
34 Gross purchases ...................................................................
35 Gross sales ............................................................................

160,409
159,369

284,316
276,266

360,069
370,772

0
0

0
0

0
0

0
0

0
0

0
0

0
0

36 Net change in federal agency o b lig a tio n s......................

-5 0 0

7,703

-1 0 ,8 5 9

0

0

0

0

-1 0

0

0

Reverse repurchase agreements
37 Gross purchases ...................................................................
38 Gross sales ............................................................................

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

Repurchase agreements
39 Gross purchases ...................................................................
40 Gross sales ............................................................................

0
0

0
0

304,989
164,349

107,375
105,885

70,850
70,315

66,485
75,925

47,265
46,230

66,080
67,285

64,428
62,308

87,125
79,295

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

-1

Federal a g e n c y O bligations

41 Net change in triparty o b lig a tio n s....................................

0

0

140,640

1,490

535

-9 ,4 4 0

1,035

-1 ,2 0 5

2,120

7,830

42 Total net change in System Open Market A ccount. . .

40,522

27,538

135,780

1,489

-1 ,2 6 5

-8 ,2 9 0

5,034

4

-3 37

11,116

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




2. Transactions exclude changes in compensation for the effects of inflation on the principal
of inflation-indexed securities.

A10
1.18

Domestic Financial Statistics □ March 2001
FEDERAL RESERVE BANKS

Condition and Federal Reserve Note Statem ents1

Millions of dollars
Wednesday
2000

Account
Nov. 29

Dec. 6

End of month
2000

Dec. 13

Dec. 20

Dec. 27

Oct. 31

Nov. 30

Dec. 31

Consolidated condition statement
ASSETS
11,046
3,200
892

11,046
3,200
914

11,046
3,200
948

11,046
2,200
954

11,046
2,200
946

11,046
3,200
887

11,046
3,200
901

11,046
2,200
949

438
0
0

134
0
0

133
0
0

125
0
0

117
0
0

248
0
0

136
0
0

110
0
0

Triparty Obligations
7 Repurchase agreements— triparty2 .................................................

25,630

22,525

27,260

25,710

43,985

19,440

27,270

43,375

Federal agency obligations3
8 Bought outright..................................................................................
9 Held under repurchase agreements ...............................................

130
0

130
0

130
0

130
0

130
0

130
0

130
0

130
0

1 Gold certificate account ..................................................................
2 Special drawing rights certificate a c c o u n t...................................
3 C o in ......................................................................................................
Loans
4 To depository institutions................................................................
5 O t h e r ...................................................................................................

10 Total U.S. TYeasury securities3 ...................................................

514,308

513,100

515,115

514,539

515,491

508,961

512,327

511,703

11 Bought outright4 ................................................................................
12
B ills .................................................................................................
14
Bonds .............................................................................................
15 Held under repurchase agreements ..............................................

514,308
183,817
237,804
92,687
0

513,100
183,384
237,028
92,688
0

515,115
183,206
239,127
92,783
0

514,539
182,627
239,129
92,783
0

515,491
182,530
240,176
92,784
0

508,961
180,971
235,603
92,387
0

512,327
182,615
237,025
92,687
0

511,703
178,741
240,178
92,784
0

16 Total loans and secu rities..............................................................

540,506

535,889

542,639

540,504

559,723

528,779

539,863

555,318

17 Items in process of collection .......................................................

7,198
1,441

9,378
1,441

12,048
1,442

12,334
1,452

10,087
1,455

10,945
1,433

5,237
1,440

7,105
1,461

20 All other6 .............................................................................................

15,323
17,677

15,354
17.444

15,360
17,970

15,367
13,353

15,374
18,894

15,297
19,616

15,348
17,083

15,670
19,766

21 Total a ssets.........................................................................................

597,282

594,665

604,654

602,210

619,724

591,203

594,118

613,514

22 Federal Reserve n o tes.......................................................................
23 Reverse repurchase agreements— triparty2 ...................................

550,957
0

550,295
0

552,417
0

556,790
0

563,160
0

542,479
0

549,627
0

563,450
0

24 Total d eposits....................................................................................

21,718

17,702

26,084

19,084

30,426

22,793

20,621

25,792

25 Depository institutions .....................................................................
26 US. Treasury— General account ...................................................
28 O t h e r ....................................................................................................

16,362
5,056
73
227

12,155
5,215
89
244

20,817
4,947
72
248

13,866
4,781
227
211

24,787
5,320
83
235

17,074
5,360
115
245

15,858
4,382
104
276

19,045
5,149
216
1,382

29 Deferred credit items .......................................................................
30 Other liabilities and accrued dividends7........................................

6,694
4,409

8,594
4.397

7,752
4,622

8,197
4,375

8,077
4,341

9,514
4,325

5,672
4,590

6,310
4,170

31 Total liab ilities..................................................................................

583,778

580,988

590,876

588,446

606,003

579,111

580,510

599,723

33 Surplus ...............................................................................................
34 Other capital accounts ....................................................................

7,071
2,679
3,754

7,088
2,679
3,910

7,103
2,679
3,995

7,022
2,679
4,063

7,024
2,679
4,018

6,986
2,679
2,426

7,076
2,679
3,853

6,997
6,794
0

35 Total liabilities and capital accounts ........................................

597,282

594,665

604,654

602,210

619,724

591,203

594,118

613,514

M emo
36 Marketable U.S. Treasury securities held in custody for
foreign and international ac co u n ts........................................

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

Other assets

L iabilities

C apital A c counts

Federal Reserve note statement
37 Federal Reserve notes outstanding (issued to B a n k s)...............
38
LESS: Held by Federal Reserve Banks ...................................
39
Federal Reserve notes, n e t .........................................................
Collateral held against notes, net
40 Gold certificate account ..................................................................
41 Special drawing rights certificate a c c o u n t...................................
42 Other eligible a s s e ts .........................................................................
44 Total collateral..................................................................................

756,715
205,757
550,957

755.565
205,270
550,295

754,835
202.417
552.417

753.551
196.761
556.790

752,359
189,199
563,160

760,004
217,525
542,479

756,527
206,900
549,627

751,714
188,264
563,450

11.046
3,200
0
536.712

11,046
3,200
295
535,755

11.046
3,200
0
538,172

11,046
2,200
3,165
540,379

11,046
2,200
0
549,914

11,046
3,200
0
528,233

11,046
3,200
0
535,381

11,046
2,200
0
550,205

550,957

550,295

552,417

556,790

563,160

542,479

549,627

563,450

1. Some of the data in this table also appear in the Board’s H.4.1 (503) weekly statistical
release. For ordering address, see inside front cover.
2. Cash value of agreements arranged through third-party custodial banks.
3. Face value of the securities.
4. Includes securities loaned— fully guaranteed by U.S. Treasury securities pledged with
Federal Reserve Banks— and includes compensation that adjusts for the effects of inflation on
the principal of inflation-indexed securities. Excludes securities sold and scheduled to be
bought back under matched sale-purchase transactions.




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

Federal Reserve Banks A ll
1.19

FEDERAL RESERVE BANKS

Maturity Distribution o f Loan and Security Holding

Millions of dollars
Wednesday
2000

Type of holding and maturity

End of month
2000

Nov. 29

Dec. 6

Dec. 13

Dec. 20

Dec. 27

Oct. 31

Nov. 30

Dec. 31

1 Total l o a n s ....................................................................................

438

134

133

125

117

248

136

110

2 Within fifteen days' .....................................................................
3. Sixteen days to ninety days .....................................................
4. 91 days to 1 y e a r .........................................................................

421
18
0

41
93
0

34
99
0

119
6
0

110
7
0

152
96
0

86
50
0

96
14
0

5 Total U.S. Treasury securities2 ..............................................

514,308

513,100

515,115

514,539

515,491

508,961

512,327

511,702

Within fifteen days1 .....................................................................
Sixteen days to ninety d a y s .......................................................
Ninety-one days to one year .....................................................
One year to five years ................................................................
Five years to ten y e a r s ................................................................
More than ten years .....................................................................

15,478
114,311
126,364
132,581
54,681
70,893

17,413
115,290
123,073
131,746
54,684
70,894

13,288
118,117
125,612
131,746
55,457
70,895

18,935
111,849
125,654
131,746
55,459
70,895

19,889
110,832
125,620
132,792
55,461
70,896

12,494
109,123
131,002
130,667
53,530
72,145

4,706
119,433
130,868
131,745
54,682
70,893

18,053
108,961
125,539
132,792
55,461
70,896

12 Total federal agency ob lig a tio n s............................................

130

130

130

130

130

130

130

130

13
14
15
16
17
18

0
0
0
30
100
0

0
0
0
130
0
0

0
0
0
130
0
0

0
0
0
130
0
0

0
0
0
130
0
0

0
0
0
30
100
0

0
0
0
30
100
0

0
0
0
130
0
0

6
7
8
9
10
11

Within fifteen days1 .....................................................................
Sixteen days to ninety d a y s .......................................................
Ninety-one days to one year .....................................................
One year to five years ................................................................
Five years to ten y e a r s ................................................................
More than ten y e a r s .....................................................................

1.
Holdings under repurchase agreements are classified as maturing within fifteen days in
accordance with maximum maturity of the agreements.




2. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.

A 12 Domestic Financial Statistics □ March 2001
1.20

AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE'
Billions of dollars, averages of daily figures
2000
Item

1997
Dec.

1998
Dec.

1999
Dec.

2000
Dec.
May

June

Total rese rv e s'....................................................................................
Nonborrowed reserves4 .....................................................................
Nonborrowed reserves plus extended credit5 ...............................
Required re s e rv e s ..............................................................................
Monetary base6 ..................................................................................

Aug.

Sept.

Oct.

Nov.

Dec.

39.94
39.37
39.37
38.93
577.43r

39.86
39.38
39.38
38.76
579.01r

39.54
39.12
39.12
38.41
580.55r

39.441
'
39.16
39.16
38.24
580.69r

38.69
38.48
38.48
37.36
584.10

Seasonally adjusted

ADJUSTED FOR
C hanges in R eserve R equ irem ents 2
1
2
3
4
5

July

46.87
46.54
46.54
45.18
479.37r

45.19
45.07
45.07
43.68
513.19r

41.74
41.42
41.42
40.44
592.03r

38.69
38.48
38.48
37.36
584.10

41.36
41.00
41.00
40.41
573.931
"

39.96
39.48
39.48
38.89
575.06r

40.26
39.69
39.69
39.19
576.75r

Not seasonally adjusted
6
7
8
9
10

Total reserves7 ....................................................................................
Nonbonrowed reserves .....................................................................
Nonborrowed reserves plus extended credit5 ...............................
Required reserves8..............................................................................
Monetary base9 ..................................................................................

48.01
47.69
47.69
46.33
484.98

45.31
45.19
45.19
43.80
518.27

41.89
41.57
41.57
40.58
600.63

38.58
38.37
38.37
37.26
590.20

41.58
41.22
41.22
40.64
573.26

39.24
38.76
38.76
38.18
574.55

39.70
39.13
39.13
38.63
577.19

39.52
38.94
38.94
38.50
576.60

39.29
38.82
38.82
38.19
576.79

38.90
38.48
38.48
37.77
578.34

38.83r
38.55
38.55
37.63
582.36r

38.58
38.37
38.37
37.26
590.20

47.92
47.60
47.60
46.24
491.79
1.69
.32

45.21
45.09
45.09
43.70
525.06
1.51
.12

41.66
41.33
41.33
40.35
607.94
1.31
.32

38.54
38.33
38.33
37.22
597.12
1.33
.21

41.56
41.20
41.20
40.62
580.09
.94
.36

39.22
38.74
38.74
38.15
581.44
1.06
.48

39.67
39.10
39.10
38.60
583.99
1.07
.57

39 49
38.91
38.91
38.47
583.34
1.01
.58

39 26
38.78
38.78
38.16
583.48
1.10
.48

38.85
38.44
38.44
37.73
585.07
1.13
.42

38.79
38.51
38.51
37.59
589.12r
1.20
.28

38.54
38.33
38.33
37.22
597.12
1.33
.21

Not A djusted for
C hanges in r eser v e R e q u ir em en ts 10
12
13
14
15
16
17

Nonborrowed reserves .....................................................................
Nonborrowed reserves plus extended credit5 ...............................
Required re s e rv e s .............................................................................
Monetary base12..................................................................................
Excess reserves13................................................................................
Borrowings from the Federal R e se rv e ..........................................

1. Latest monthly and biweekly figures are available from the Board’s H.3 (502) weekly
statistical release. Historical data starting in 1959 and estimates of the effect on required
reserves of changes in reserve requirements are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2. Figures reflect adjustments for discontinuities, or “breaks,” associated with regulatory
changes in reserve requirements. (See also table 1.10.)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted,
break-adjusted total reserves (line 1) less total borrowings of depository institutions from the
Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under the terms and
conditions established for the extended credit program to help depository institutions deal
with sustained liquidity pressures. Because there is not the same need to repay such
borrowing promptly as with traditional short-term adjustment credit, the money market effect
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. Breakadjusted required reserves include required reserves against transactions deposits and nonper­
sonal 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 o f Transaction Accounts, Other Deposits and Vault C ash” and for all
those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no
adjustments to eliminate the effects of discontinuities associated with regulatory changes in
reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve
requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total
reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float
at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for
all quarterly reporters on the “ Report of Transaction Accounts, Other Deposits and Vault
Cash” and for all those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current reserve
requirements. Since February 1984, currency and vault cash figures have been measured over
the computation periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).

M onetary and C redit A ggregates
1.21

A13

MONEY STOCK AND DEBT M EASURES1
Billions of dollars, averages of daily figures
2000
Item

1997
Dec.r

1998
Dec.r

1999
Dec.r

2000
Dec.
Sept.r

Oct.r

Nov.r

Dec.

Seasonally adjusted

1
2
3
4

Measures2
M l ........................................................................................................
M 2 ........................................................................................................
M 3 ........................................................................................................
Debt ....................................................................................................

1,073.4
4,029.9
5,428.3
15,223.1

1,097.0
4,382.6
6,028.2
16,276.0

1,124.3
4,648.2
6,524.1
17,376.7

1,091.3
4,945.7
7,090.5
n.a.

1,095.7
4,865.3
6,963.9
18,078.0

1,096.3
4,888.2
6,990.5
18,119.8

1,089.2
4,905.9
7,016.0
18,183.2

1,091.3
4,945.7
7,090.5
n.a.

5
6
7
8

M l components
Currency3 ...........................................................................................
Travelers checks4 ..............................................................................
Demand deposits5 ..............................................................................
Other checkable deposits6 ..............................................................

424.3
8.1
395.4
245.7

459.2
8.2
379.4
250.1

516.7
8.2
355.6
243.7

530.5
8.0
313.7
239.1

524.7
8.9
323.6
238.5

526.4
8.4
322.1
239.4

528.0
8.0
315.2
238.0

530.5
8.0
313.7
239.1

Nontransaction components
9 In M27 ...............................................................................................
10 In M3 only8 .......................................................................................

2,956.6
1,398.3

3,285.6
1,645.7

3,523.9
1,875.9

3,854.4
2,144.7

3,769.6
2,098.6

3,791.8
2,102.3

3,816.7
2,110.1

3,854.4
2,144.7

Commercial banks
11 Savings deposits, including MMDAs ..........................................
12 Small time deposits9 .......................................................................
13 Large time deposits10- 1 ................................................................
1

1,021.1
625.5
517.7

1,185.8
626.4
575.5

1,287.0
635.2
648.8

1,420.6
698.8
720.)

1,383.5
687.9
706.7

1,389.4
689.8
701.9

1,401.5
693.8
704.7

1,420.6
698.8
720.1

Thrift institutions
14 Savings deposits, including MMDAs ..........................................
15 Small time deposits9 .......................................................................
16 Large time deposits1 0 .......................................................................

376.8
342.9
85.5

414.1
325.8
88.7

449.3
320.9
91.3

452.7
347.0
103.7

455.1
339.8
100.7

456.7
342.7
102.6

455.8
345.4
103.6

452.7
347.0
103.7

Money market mutual funds
17 R e ta il....................................................................................................
18 Institution-only ..................................................................................

590.2
389.9

733.5
530.0

831.6
622.0

935.3
767.7

903.3
737.9

913.3
744.2

920.3
752.2

935.3
767.7

Repurchase agreements and eurodollars
19 Repurchase agreements1 2 ................................................................
20 Eurodollars12......................................................................................

255.3
150.0

299.6
151.8

343.0
170.8

362.5
190.8

364.1
189.3

363.1
190.5

358.7
191.0

362.5
190.8

Debt components
21 Federal debt ......................................................................................
22 Nonfederal debt ................................................................................

3,800.6
11,422.5

3,751.2
12,524.7

3,660.2
13,716.5

3,475.0
14,603.1

3,446.0
14,673.9

3,419.7
14,763.5

n.a.
n.a.

n.a.
n.a.

Not seasonally adjusted

23
24
25
26

Measures2
M l ........................................................................................................
M 2 ........................................................................................................
M 3 ........................................................................................................
Debt ....................................................................................................

1,096.9
4,051.3
5,453.6
15,218.5

1,120.4
4,404.9
6,060.3
16,271.3

1,147.8
4,672.2
6,561.4
17,372.0

1,115.7
4,974.5
7,135.6
n.a.

1,090.2
4,850.5
6,922.1
18,018.5

1,093.7
4,865.7
6,948.5
18,070.7

1,095.3
4,898.1
7,011.6
18,161.9

1,115.7
4,974.5
7,135.6
n.a.

27
28
29
30

M l components
Currency3 ...........................................................................................
Travelers checks4 ..............................................................................
Demand deposits5 ..............................................................................
Other checkable deposits6 ..............................................................

428.1
8.3
412.4
248.2

463.3
8.4
395.9
252.8

521.5
8.4
371.2
246.6

535.8
8.1
329.1
242.6

523.3
8.7
321.7
236.4

525.1
8.4
322.2
238.1

528.6
8.2
320.5
238.1

535.8
8.1
329.1
242.6

Nontransaction components
31 In M27 ...............................................................................................
32 In M3 only8 .......................................................................................

2,954.4
1,402.3

3,284.5
1,655.4

3,524.5
1,889.2

3,858.8
2,161.1

3,760.4
2,071.6

3,772.0
2,082.8

3,802.8
2,113.5

3,858.8
2,161.1

Commercial banks
33 Savings deposits, including MMDAs ..........................................
34 Small time deposits9 .......................................................................
35 Large time deposits10- 1 ................................................................
1

1,020.4
625.3
517.1

1,186.0
626.5
574.9

1,288.5
635.4
648.2

1,425.3
699.0
719.5

1,381.1
688.0
702.3

1,380.0
690.9
698.8

1,397.2
695.2
705.8

1,425.3
699.0
719.5

Thrift institutions
36 Savings deposits, including MMDAs ..........................................
37 Small time deposits9 .......................................................................
38 Large time deposits1 0 .......................................................................

376.5
342.8
85.4

414.2
325.8
88.6

449.8
321.0
91.2

454.2
347.1
103.6

454.4
339.8
100.1

453.6
343.2
102.1

454.4
346.1
103.8

454.2
347.1
103.6

Money market mutual funds
39 R e ta il....................................................................................................
40 Institution-only ..................................................................................

589.4
397.0

731.9
541.9

829.7
636.9

933.1
785.6

897.1
721.5

904.4
734.7

909.9
755.9

933.1
785.6

Repurchase agreements and eurodollars
41 Repurchase agreements1" ................................................................
42 Eurodollars12......................................................................................

250.5
152.3

295.4
154.5

339.5
173.4

359.4
193.0

360.8
187.0

358.0
189.1

357.9
190.2

359.4
193.0

Debt components
43 Federal debt ......................................................................................
44 Nonfederal debt ................................................................................

3,805.8
11,412.7

3,754.9
12,516.3

3,663.1
13,709.0

3,426.5
14,592.0

3,395.5
14,675.3

3,401.3
14,760.7

Footnotes appear on following page.




n.a.
n.a.

n.a.
n.a.

A14 Domestic Financial Statistics □ March 2001

NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board’s H.6 (508) weekly
statistical release. Historical data starting in 1959 are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows:
M l: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions; (2) travelers checks of nonbank issuers; (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government, and
foreign banks and official institutions, less cash items in the process of collection and Federal
Reserve float; and (4) other checkable deposits (OCDs), consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions,
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted M l is computed by summing currency, travelers checks, demand deposits, and
OCDs, each seasonally adjusted separately.
M2: M l plus (1) savings deposits (including MMDAs), (2) small-denomination time
deposits (time deposits— including retail RPs— in amounts of less than $100,000), and (3)
balances in retail money market mutual funds. Excludes individual retirement accounts
(IRAs) and Keogh balances at depository institutions and money market funds. Seasonally
adjusted M2 is calculated by summing savings deposits, small-denomination time deposits,
and retail money fund balances, each seasonally adjusted separately, and adding this result to
seasonally adjusted M 1.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more)
issued by all depository institutions, (2) balances in institutional money funds, (3) RP
liabilities (overnight and term) issued by all depository institutions, and (4) eurodollars
(overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and
at all banking offices in the United Kingdom and Canada. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign banks and
official institutions. Seasonally adjusted M3 is calculated by summing large time deposits,
institutional money fund balances, RP liabilities, and eurodollars, each seasonally adjusted
separately, and adding this result to seasonally adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors— the federal sector (U.S. government, not including government-sponsored enter­




prises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board’s flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository
institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers.
Travelers checks issued by depository institutions are included in demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other than those
owed to depository institutions, the U.S. government, and foreign banks and official institu­
tions, 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) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances.
8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) eurodollars (overnight and
term) of U.S. addressees.
9. Small time deposits— including retail RPs— are those issued in amounts of less than
$100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are
subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
12. Includes both overnight and term.

Commercial Banking Institutions—Assets and Liabilities A15
1.26

COM M ERCIAL BANKS IN THE UNITED STATES

Assets and L iabilities1

A. All com m ercial banks
Billions of dollars
Monthly averages
Account

1999
Dec.r

Wednesday figures

2000
June

Julyr

Aug.r

Sept.r

2000
Oct.r

Nov.r

Dec.

Dec. 6

Dec. 13

Dec. 20

Dec. 27

Seasonally adjusted
Assets
Bank credit ...............................................
Securities in bank credit ..................
U.S. government securities...........
Other securities...............................
Loans and leases in bank credit2 . . .
Commercial and in d u stria l...........
Real estate ......................................
Revolving home equity ...........
O th e r .............................................
Consumer ........................................
Security3 ..........................................
Other loans and le a s e s ..................
Interbank l o a n s ........................................
Cash assets4 ............................................
Other assets5 .............................................

4,773.9
1,272.5
808.4
464.1
3,501.3
1,001.9
1,475.1
101.4
1,373.7
490.5
153.3
380.6
228.9
286.9
374.2

5,041.8
1,313.5
818.4r
495. r
3,728.3
1,066.6
1,598.4
115.0r
l,483.4r
516.0
149.4
397.8
227.1
270.6
377.6r

5,079.7
1,318.5
820.3
498.2
3,761.2
1,072.1
1,614.5
115.1
1,499.4
519.6
151.5
403.5
240.4
271.8
394.8

5,121.4
1,321.9
813.7
508.2
3,799.5
1,079.9
1,624.6
116.3
1,508.2
528.1
158.2
408.8
247.1
271.5
396.2

5,168.8
1,332.5
808.0
524.5
3,836.4
1,079.9
1,634.9
118.1
1,516.8
531.4
178.9
411.2
240.0
269.1
395.1

5,143.1
1,310.0
792.8
517.2
3,833.1
1,079.0
1,632.4
121.3
1,511.1
531.2
177.1
413.3
250.6
267.4
408.9

5,154.8
1,302.4
782.6
519.8
3,852.4
1,080.2
1,643.6
123.0
1,520.7
535.0
178.6
415.0
250.1
254.9
398.9

5,216.3
1,334.6
784.6
550.0
3,881.7
1,088.0
1,649.9
124.4
1,525.5
536.3
187.4
420.0
255.3
266.8
398.8

5,186.4
1,307.9
780.8
527.1
3,878.5
1,083.0
1,655.4
124.4
1,531.0
534.4
188.9
416.7
248.6
260.0
398.8

5,195.0
1,331.0
780.4
550.6
3,864.0
1,080.3
1,648.9
124.1
1,524.8
533.7
180.5
420.6
249.2
263.2
397.8

5,213.8
1,330.5
786.1
544.5
3,883.3
1,093.5
1,650.3
124.3
1,525.9
536.8
185.0
417.8
256.3
263.6
404.8

5,244.3
1,351.6
786.6
565.0
3,892.7
1,092.7
1,648.8
124.5
1,524.4
537.8
190.0
423.4
260.3
277.5
389.5

16 Total assets6 .............................................

5,604.2

5,857.1

5,925.5

5,974.1

6,010.5

6,007.9

5,9963

6,073.5

6,030.5

6,041.9

6,074.9

6,107.9

Liabilities
Deposits ...................................................
Transaction ..........................................
Nontransaction ....................................
Large time ......................................
Other .................................................
Borrowings ...............................................
From banks in the U.S........................
From others ........................................
Net due to related foreign offices.............
Other liab ilities........................................

3,528.9
631.3
2,897.5
831.6
2,066.0
1,118.)
347.7
770.4
223.8
297.7

3,667.0
617.0
3,050.0
899.0
2,151.0
1,203.8
378.4
825.4
263.5
300.6

3,725.1
611.5
3,113.6
921.3
2,192.3
1,222.0
390.2
831.7
261.9
296.6

3,752.4
617.0
3,135.4
930.9
2,204.5
1,228.0
389.4
838.6
269.7
312.7

3,770.2
609.6
3,160.7
920.4
2,240.3
1,220.2
373.8
846.5
269.2
331.2

3,785.6
613.4
3,172.2
915.2
2,257.1
1,210.4
369.3
841.1
251.9
338.9

3,773.4
598.7
3,174.7
912.2
2,262.5
1,206.5
365.1
841.4
241.4
339.3

3,849.8
597.9
3,252.0
929.5
2,322.5
1,237.4
391.1
846.2
224.4
338.1

3,813.4
582.9
3,230.5
918.8
2,311.8
1,237.4
384.2
853.2
207.1
334.0

3,827.8
579.8
3,248.0
931.6
2,316.4
1,221.7
391.1
830.7
211.4
344.4

3,850.2
611.2
3,239.0
928.8
2,310.2
1,242.2
393.6
848.6
231.0
328.6

3,865.9
624.4
3,241.5
926.3
2,315.2
1,235.9
384.9
851.0
242.3
341.5

27 Total liab ilities........................................

5,168.4

5,434.8

5,505.5

5,562.8

5,590.9

5,586.8

5,560.6

5,649.7

5,591.9

5,6053

5,652.1

5,685.6

28 Residual (assets less liabilities)7 .........

435.8

420.0

411.3

419.6

421.1

435.7

423.9

438.6

436.6

422.8

422.3

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

17
18
19
20
21
22
23
24
25
26

422.3r

Not seasonally adjusted
Assets
Bank credit ...............................................
Securities in bank credit ..................
U.S. government securities...........
Other securities...............................
Loans and leases in bank credit2 . . .
Commercial and in d u stria l...........
Real estate ......................................
Revolving home equity ...........
O t h e r .............................................
Consumer ........................................
Credit cards and related p la n s ..
O t h e r .............................................
Security3 ..........................................
Other loans and leases ..................
Interbank l o a n s ........................................
Cash assets4 ............................................
Other assets5 ............................................

4,806.3
1,282.8
810.5
472.4
3,523.5
1,003.8
1,479.9
101.8
1,378.1
496.0
n.a.
n.a.
158.0
385.8
234.2
306.8
374.3

5,024.5
1,302.7
817.7r
485.1r
3,721.7
1,066.0
1,595.0
115.lr
1,480.0"
514.1
n.a.
n.a.
149.3
397.4
226.8
266.8r
379. r

5,048.1
1,301.0
811.9
489.1
3,747.1
1,067.3
1,610.7
115.1
1,495.6
516.1
195.2
320.9
148.6
404.4
236.4
262.4
394.2

5,092.6
1,309.2
804.8
504.4
3,783.4
1,069.5
1,624.6
116.5
1,508.1
526.9
202.8
324.2
153.1
409.3
237.0
259.1
394.5

5,155.5
1,327.3
800.0
527.3
3,828.3
1,075.8
1,635.4
118.9
1,516.5
532.1
206.0
326.1
172.0
412.9
233.6
264.7
393.5

5,156.7
1,314.5
787.7
526.8
3,842.2
1,079.8
1,638.1
121.9
1,516.2
528.9
203.0
325.9
180.9
414.5
244.5
268.4
401.8

5,185.6
1,317.3
785.1
532.2
3,868.3
1,084.4
1,651.6
123.5
1,528.1
534.0
206.9
327.1
180.9
417.4
255.3
262.9
396.0

5,249.8
1,344.4
786.3
558.1
3,905.4
1,090.6
1,655.2
124.9
1,530.3
542.2
216.1
326.1
191.7
425.7
262.8
285.7
398.4

5,210.5
1,323.0
787.0
536.0
3,887.5
1,082.5
1,661.8
124.7
1,537.1
534.9
207.7
327.1
189.7
418.6
260.6
262.0
397.6

5,220.1
1,341.5
783.6
557.9
3,878.6
1,078.1
1,655.8
124.6
1,531.2
536.7
209.8
326.9
185.2
422.7
258.2
273.0
395.3

5,250.7
1,339.0
787.5
551.5
3,911.7
1,097.6
1,652.9
124.8
1,528.1
544.6
219.6
325.0
192.1
424.6
263.9
280.8
401.7

5,286.6
1,357.5
784.3
573.1
3,929.1
1,099.5
1,655.0
125.1
1,529.8
548.6
223.0
325.6
194.5
431.6
261.1
307.4
390.9

46 Total assets6 .............................................

5,661.8

5336.9r

5,880.0

5,921.1

5,984.8

6,0093

6,037.1

6,133.0

6,067.1

6,082.9

6,1333

6,182.4

Liabilities
Deposits ...................................................
Transaction ..........................................
Nontransaction ....................................
Large time ......................................
O t h e r .................................................
Borrowings ...............................................
From banks in the U.S........................
From others ........................................
Net due to related foreign offices . . . .
Other lia b ilitie s........................................

3,571.4
664.2
2,907.2
846.7
2,060.5
1,127.2
352.6
774.7
230.0
299.9

3,655.0
615.9
3,039.1
888.1
2,151.0
1,207.2
379.4
827.8
253.9
298.9

3,700.5
605.0
3,095.5
904.6
2,190.9
1,209.5
387.4
822.1
253.4
294.2

3,720.1
601.4
3,118.8
913.9
2,204.9
1,200.6
385.0
815.6
267.0
312.2

3,754.1
603.3
3,150.8
909.5
2,241.4
1,215.8
373.4
842.5
264.2
330.6

3,778.6
605.3
3,173.3
912.4
2,260.9
1,212.2
368.4
843.8
253.1
338.0

3,802.8
606.3
3,196.5
923.0
2,273.5
1,215.5
368.6
846.9
246.7
340.3

3,890.9
628.9
3,262.0
945.8
2,316.1
1,248.2
396.9
851.4
230.8
340.3

3,849.0
592.2
3,256.8
934.3
2,322.5
1,238.6
387.8
850.8
210.9
336.4

3,862.9
598.7
3,26t.2
949.2
2,315.0
1,221.6
393.5
828.1
221.4
347.0

3,883.4
639.1
3,244.3
945.3
2,299.0
1,268.1
403.9
864.2
231.3
330.2

3,909.3
671.1
3,238.2
943.8
2,294.4
1,254.6
393.9
860.7
260.7
343.5

57 Total liab ilities........................................

5,228.5

5,414.9

5,457.6

5,500.0

5,564.7

5,581.9

5,6053

5,710.2

5,635.0

5,652.9

5,713.0

5,768.2

58 Residual (assets less liabilities)7 .........

433.3

422.0"

422.4

421.0

420.1

427.4

431.8

422.8

432.2

430.0

420.3

414.3

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45

47
48
49
50
51
52
53
54
55
56

Footnotes appear on p. A 21.




A16
1.26

Domestic Financial Statistics □ March 2001
COM M ERCIAL BANKS IN THE UNITED STATES

Assets and L iabilities1 Continued
—

B. D om estically chartered com mercial banks
Billions of dollars

Monthly averages
Account

1999
Dec.r

Wednesday figures

2000
June

July

Aug.r

Sept.r

2000
Oct.r

Nov.r

Dec.

Dec. 6

Dec. 13

Dec. 20

Dec. 27

Seasonally adjusted
Assets
1 Bank credit ...............................................
2
Securities in bank credit ..................
3
U.S. government securities...........
4
Other securities...............................
5
Loans and leases in bank credit2 .........
6
Commercial and in d u stria l...........
7
Real estate ......................................
8
Revolving home equity ...........
9
O th e r ............................................
10
Consumer ........................................
11
Security3 ..........................................
12
Other loans and leases ..................
13 Interbank l o a n s ........................................
15 Other assets5 ............................................

4.219.8
1.063.8
725.8
338.0
3,156.0
808.0
1.457.8
101.4
1,356.3
490.5
86.1
313.7
201.1
234.1
338.0

4.460.4
1.103.5
740.0'
363.5r
3.356.8
859.9
1.579.8
115.0r
l,464.7r
516.0
68.6
332.5
200.8
225.2r
335.0r

4.497.7
1.108.8
741.2T
367.5r
3,389.0
867.2
l,595.8r
115.1r
l,480.7r
519.6
70.0
336.4r
216.9
225.9r
353.0r

4,534.9
1,111.6
734.5
377.1
3.423.3
873.3
1,605.7
116.3
1.489.4
528.1
76.5
339.8
224.6
226.2
355.3

4.575.0
1.124.0
731.2
392.8
3,450.9
875.5
1,615.5
118.1
1,497.4
531.4
84.6
343.9
216.0
223.6
355.7

4.562.6
1.118.3
723.6
394.7
3.444.3
877.2
1.613.6
121.3
1.492.3
531.2
75.1
347.2
222.9
224.4
372.9

4.579.8
1.118.9
717.0
401.8
3,461.0
878.4
1.624.2
123.0
1.501.3
535.0
75.4
348.0
222.5
215.5
364.3

4,618.2
1,133.8
717.7
416.1
3.484.4
882.8
1.630.5
124.4
1,506.1
536.3
80.9
353.9
227.8
225.7
367.8

4.602.1
1,120.4
715.4
405.1
3.481.7
879.7
1.636.2
124.4
1.511.8
534.4
82.3
349.0
220.9
221.1
364.9

4.608.5
1.136.5
716.4
420.1
3,472.0
877.7
1,629.7
124.1
1.505.6
533.7
77.8
353.2
223.8
221.5
369.4

4,612.5
1,127.4
718.2
409.2
3,485.1
886.2
1,630.3
124.3
1,506.0
536.8
79.6
352.3
229.6
222.8
374.7

4,631.6
1.140.3
716.9
423.4
3.491.3
885.3
1.629.3
124.5
1,504.8
537.8
80.4
358.5
230.4
236.0
358.9

16 Total assets6 ............................................

4,933.6

5,161.8

5,232.6r

5,279.3

5,308.1

5,321.0

5,320.0

5,376.3

5,346.0

5,360.3

5,376.3

5,393.6

Liabilities
Deposits ...................................................
Transaction ..........................................
Nontransaction ....................................
Large time ......................................
O t h e r .................................................
Borrowings ..............................................
From banks in the U.S........................
From others ........................................
Net due to related foreign offices . . . .
Other liab ilities........................................

3,152.2
620.5
2,531.7
469.0
2,062.6
940.1
325.1
615.0
182.7
230.3

3,281.8
605.6
2,676.2
526.0
2.150.1
1.001.2
359.2
642.0
243.3
228.6

3,334.8r
600.2r
2,734.6
544.6
2,190.0r
1,019.4
369.2
650.2
243.7
222.9r

3,356.8
606.2
2,750.6
548.6
2,202.1
1,029.1
372.4
656.7
246.4
239.7

3,381.9
599.9
2,782.1
544.5
2.237.6
1.005.7
354.2
651.5
244.9
255.0

3.401.2
602.9
2.798.3
543.9
2.254.4
991.9
350.4
641.5
235.2
263.1

3,390.6
588.2
2,802.4
542.5
2,259.8
984.5
345.6
638.9
235.4
269.0

3,464.5
587.7
2,876.8
557.7
2,319.1
997.8
367.1
630.7
226.3
269.6

3,432.1
572.8
2.859.3
551.0
2.308.3
996.7
359.1
637.6
213.6
263.8

3,438.1
570.2
2,867.9
555.3
2,312.6
993.5
371.2
622.4
220.7
278.5

3,469.4
601.1
2,868.3
561.5
2,306.8
1,000.6
371.3
629.3
227.9
261.1

3,482.5
613.3
2.869.1
556.9
2.312.2
989.6
359.9
629.7
239.7
272.1

27 Total liab ilities........................................

4,505.3

4,754.9

4,820.7r

4,871.9

4,887.6

4,891.4

4,879.5

4,958.2

4,906.2

4,930.9

4,959.0

4,983.7

28 Residual (assets less liabilities)7 .........

428.4

407.4

420.5

429.6

440.5

418.1

439.8

429.4

417.3

409.8

17
18
19
20
21
22
23
24
25
26

406.9r

411.9

Not seasonally adjusted
Assets
Bank c r e d i t ...............................................
Securities in bank credit ..................
U.S. government securities...........
Other securities...............................
Loans and leases in bank credit2 .........
Commercial and in d u stria l...........
Real estate ......................................
Revolving home equity ...........
O th e r ............................................
Consumer ........................................
Credit cards and related plans. .
O th e r ............................................
Security3 ..........................................
Other loans and l e a s e s ..................
Interbank l o a n s ........................................
Cash assets4 ............................................
Other assets5 ............................................

4,242.1
1,070.2
726.4
343.8
3,171.9
806.4
1,462.6
101.8
1,360.8
496.0
n.a.
n.a.
90.3
316.7
206.4
249.7
335.9

4,453.0r
1,099.1
739.2r
359.9r
3,354.0
862.6
1,576.5
U 5.1r
1,461.5r
514.1
n.a.
n.a.
68.1
332.6
200.5
222. l r
338.7r

4,477.0
1,098.3
733.8r
364.5r
3,378.7
864.9
1,592.2
115.1'
1,477.0r
516.1
195.2
320.9
67.3
338.2'
212.9
218.3'
354.3'

4,515.9
1,104.7
727.2
377.5
3,411.3
865.6
1,605.9
116.5
1,489.4
526.9
202.8
324.2
71.1
341.7
214.6
215.4
354.3

4,562.5
1,118.7
725.3
393.4
3,443.8
871.4
1,616.2
118.9
1,497.3
532.1
206.0
326.1
77.9
346.2
209.6
220.1
354.8

4,567.4
1,115.3
719.0
396.3
3,452.2
876.6
1,619.0
121.9
1,497.1
528.9
203.0
325.9
79.5
348.1
216.7
224.5
366.5

4,596.6
1,123.1
718.3
404.8
3,473.5
879.2
1,632.2
123.5
1,508.7
534.0
206.9
327.1
78.5
349.7
227.6
221.0
361.3

4,640.8
1,139.5
718.3
421.2
3,501.2
881.3
1,635.8
124.9
1,510.9
542.2
216.1
326.1
84.7
357.2
235.3
241.2
365.6

4,617.2
1,128.7
719.8
408.9
3,488.5
876.6
1,642.7
124.7
1,518.0
534.9
207.7
327.1
84.8
349.5
232.9
220.3
361.7

4,625.6
1,143.1
718.3
424.8
3,482.5
872.9
1,636.7
124.6
1,512.1
536.7
209.8
326.9
82.6
353.7
232.8
228.3
364.6

4,639.4
1,133.4
718.9
414.4
3,506.0
885.8
1,633.1
124.8
1,508.3
544.6
219.6
325.0
85.9
356.6
237.3
236.2
369.7

4,659.8
1,143.4
713.7
429.7
3,516.4
886.2
1,635.6
125.1
1,510.4
548.6
223.0
325.6
83.0
363.1
231.1
261.9
358.8

46 Total assets6 ............................................

4,974.7

5,154.6

5,201.6r

5,238.4

5,284.7

5,313.4

5,344.2

5,419.5

5,368.8

5,388.1

5,419.0

5,448.4

Liabilities
Deposits ...................................................
Transaction ..........................................
Nontransaction ....................................
Large time ......................................
O t h e r .................................................
Borrowings ...............................................
From banks in the U.S.........................
From others ........................................
Net due to related foreign offices . . . .
Other liab ilities........................................

3,186.1
652.7
2,533.4
475.3
2,058.1
949.2
330.0
619.3
183.7
230.5

3,274.2
605.0
2,669.3
520.6
2,148.7
1,004.6
360.2
644.4
235.1
228.4

3,319.0'
593.8'
2,725.1'
536.4
2,188.7
1,006.9
366.4r
640.6
236.1
222.1

3,336.5
590.6
2,745.9
543.2
2,202.7
1,001.7
368.0
633.7
243.8
239.6

3,372.2
593.1
2,779.1
540.0
2,239.1
1,001.3
353.8
647.5
240.6
254.8

3,398.7
594.7
2,804.0
545.3
2,258.6
993.6
349.5
644.1
236.3
262.7

3,416.8
595.7
2,821.1
549.8
2,271.3
993.5
349.1
644.4
239.0
269.1

3,496.7
618.1
2,878.5
564.6
2,313.9
1,008.7
372.9
635.8
227.7
269.9

3,462.7
581.9
2,880.8
560.5
2,320.3
997.9
362.8
635.2
218.1
264.6

3,465.4
588.8
2,876.7
563.9
2,312.8
993.4
373.6
619.8
226.5
279.2

3,493.5
628.2
2,865.3
568.5
2,296.8
1,026.4
381.6
644.9
223.5
261.0

3,512.4
659.2
2,853.2
561.0
2,292.1
1,008.3
369.0
639.3
247.7
271.8

57 Total liab ilities........................................

4,549.5

4,742.3

4,784.1r

4,821.7

4,868.9

4,891.3

4,918.4

5,002.9

4,943.3

4,964.6

5,004.5

5,040.1

58 Residual (assets less liabilities)7 ...........

425.2

416.7

415.8

422.1

425.8

416.6

425.5

423.5

414.6

408.3

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45

47
48
49
50
51
52
53
54
55
56

Footnotes appear on p. A21.




412.3r

417.5

Commercial Banking Institutions—Assets and Liabilities A17
1.26

COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities1— Continued

C. Large domestically chartered commercial banks
Billions of dollars
Wednesday figures

Monthly averages
Account

1999
Dec.r

2000

2000
June

Julyr

Aug.r

Sept.'

Oct.r

Nov.r

Dec.

Dec. 6

Dec. 13

Dec. 20

Dec. 27

Seasonally adjusted
Assets
1 Bank c r e d i t ...............................................
2
Securities in bank credit ..................
3
U.S. government securities...........
4
Trading account ........................
5
Investment a c co u n t....................
6
Other securities...............................
7
Trading account .........................
8
Investment a c co u n t....................
9
State and local government .
10
O th e r ........................................
11
Loans and leases in bank credit2 . . .
12
Commercial and in d u stria l...........
13
Bankers acceptances..................
14
O th e r .............................................
15
Real estate ......................................
16
Revolving home equity ...........
17
O th e r ............................................
18
Consumer ........................................
19
Security3 ..........................................
20
Federal funds sold to and
repurchase agreements
with broker-dealers ...........
21
O th e r ............................................
22
State and local g o v e rn m e n t.........
23
A gricultural......................................
24
Federal funds sold to and
repurchase agreements
with others ...........................
25
All other loans ...............................
26
Lease-financing receivables .........
27 Interbank l o a n s ........................................
28
Federal funds sold to and
repurchase agreements with
commercial b a n k s ........................
29
O t h e r .....................................................
30 Cash assets4 .............................................
31 Other assets5 ............................................

2,382.4r
555.4r
358.2r
19.6
338.6r
197.2
86.7
110.5
24.1
86.4
1,827.0r
554.6r
1.1
553.5r
746.3r
64.7r
681.7r
219.(7
79.3

2,501.3r
581.6r
362.9r
22.7
340.2r
218.7
100.2
118.5
25.6
92.9
l,919.6r
583.(7
1.0
582.(7
804. l r
73.8r
730.2r
227.8
62.1

2,511.3
579.1
363.8
24.3
339.5
215.3
97.2
118.1
26.1
92.0
1,932.2
583.5
1.0
582.6
812.7
73.4
739.3
229.0
63.1

2,528.8
577.2
359.7
23.7
336.0
217.6
102.5
115.0
25.9
89.1
1,951.5
586.6
.9
585.7
818.4
74.4
744.0
231.2
69.2

2,551.3
585.4
357.8
23.2
334.6
227.6
114.5
113.2
25.8
87.4
1,965.9
586.9
.9
586.0
819.4
73.2
746.3
232.2
77.4

2,527.5
576.4
351.5
21.1
330.4
224.9
112.7
112.2
26.1
86.1
1,951.1
586.2
.8
585.4
811.5
75.1
736.4
233.3
67.6

2,526.3
572.3
344.9
20.5
324.5
227.4
116.0
111.4
26.3
85.1
1,954.0
584.4
.9
583.6
814.2
76.2
738.0
234.9
67.9

2,544.9
580.2
348.1
29.0
319.1
232.1
122.0
110.1
26.7
83.4
1,964.7
589.3
.9
588.4
812.7
77.2
735.6
234.2
73.0

2,532.7
567.5
343.2
22.4
320.8
224.3
113.8
110.4
26.4
84.0
1,965.2
586.3
.9
585.4
818.4
77.2
741.2
235.5
74.3

2,541.6
585.3
347.2
25.9
321.3
238.2
128.2
109.9
26.2
83.7
1,956.3
584.6
.8
583.8
811.8
76.9
734.9
234.5
69.9

2,537.7
575.0
349.6
29.2
320.4
225.4
116.4
108.9
26.4
82.5
1,962.8
593.4
.9
592.5
811.5
77.2
734.3
232.9
71.6

2,558.6
586.6
349.5
33.9
315.6
237.1
126.3
110.9
27.4
83.4
1,972.1
592.6
.8
591.8
812.3
77.3
735.0
234.0
72.8

60.1
19.1
11.9
9.1

43.9
18.2
12.3
9.6

44.6
18.6
12.2
9.5

50.6
18.6
12.3
9.5

58.1
19.3
12.4
9.4

49.1
18.5
12.4
9.4

50.0
17.9
12.4
9.5

56.5
16.5
12.2
9.6

57.2
17.1
12.3
9.6

53.2
16.7
12.2
9.6

54.7
17.0
12.2
9.6

57.1
15.7
12.2
9.6

11.7
75.7
119.5
I35.6r

13.5
84.7
122.5
133.7r

12.8
84.2
125.0
141.6

14.0
84.1
126.1
140.2

16.1
85.4
126.7
130.7

16.9
85.3
128.6
136.2

18.9
82.8
129.0
140.0

20.4
84.2
129.0
139.6

18.0
81.6
129.3
135.4

19.1
85.6
129.0
137.5

18.6
83.9
129.0
140.2

23.7
86.0
128.9
142.1

59.0r
76.7
148.1
237.4r

61.9
65.8
146.1r
223.2r

73.7
67.9
144.6
242.2

66.0
74.1
144.6
245.2

56.4
74.3
141.5
247.0

57.5
78.7
142.0
260.4

60.6
79.3
136.9
256.6

63.3
76.3
143.7
254.5

58.4
77.0
141.3
256.0

60.5
77.0
140.4
255.4

64.1
76.1
141.1
260.3

67.2
74.9
152.3
243.1

32 Total assets6 ............................................

2#>7.9r

2,969.8r

3,004.6

3,023-3

3,035.0

3,030.9

3,0243

3,046-3

3,029.1

3,038.6

3,043.0

3,059.8

Liabilities
Deposits ...................................................
Transaction ..........................................
Non transaction ....................................
Large time ......................................
O th e r .................................................
Borrowings ...............................................
From banks in the U.S........................
From others ........................................
Net due to related foreign offices.............
Other lia b ilitie s........................................

1,608.(7
322.4r
1,285.6'
229.7
l,055.8r
633.4
178.9
454.5
178.2
170.5

l,639.6r
309.6r
l^ O tf
258.7r
l,071.3r
656.6
197.0
459.6
234.2
173.8

1,639.5
302.4
1,337.0
266.9
1,070.1
678.7
205.1
473.7
221.3
177.4

1,634.6
304.5
1,330.1
265.3
1,064.8
689.4
207.5
481.9
222.7
193.4

1,634.3
300.6
1,333.7
257.3
1,076.4
671.4
192.2
479.3
224.4
207.5

1,637.2
302.8
1,334.4
254.1
1,080.2
664.2
196.4
467.8
211.7
214.0

1,621.0
292.6
1,328.3
250.0
1,078.4
661.2
193.7
467.5
211.7
218.6

1,651.1
293.5
1,357.7
259.9
1,097.8
669.6
212.1
457.5
205.4
219.4

1,639.2
285.1
1,354.1
255.3
1,098.7
667.6
202.9
464.7
195.0
213.3

1,636.3
281.5
1,354.8
257.5
1,097.4
666.2
216.2
450.1
201.3
228.2

1,654.5
302.2
1,352.3
263.0
1,089.3
676.3
218.0
458.3
204.6
210.6

1,659.2
308.2
1,350.9
259.2
1,091.7
663.4
206.3
457.1
216.2
222.1

43 Total liab ilities........................................

2,590. l r

2,704.2r

2,716.8

2,740.0

2,737.6

2,727.1

2,712.5

2,745.6

2,715.0

2,732.0

2,746.0

2,760.9

44 Residual (assets less liabilities)7 .........

211S

265.6

287.8

283.3

297.5

303.7

311.8

300.7

314.1

306.6

297.0

298.9

33
34
35
36
37
38
39
40
41
42

Footnotes appear on p. A 21.




A18
1.26

Domestic Financial Statistics □ March 2001
COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities1— Continued

C. Large domestically chartered commercial banks— Continued
Billions of dollars

Monthly averages
Account

2000

1999
Dec.r

Wednesday figures

June

July"

Aug."

Sept."

2000
Oct."

Nov."

Dec.

Dec. 6

Dec. 13

Dec. 20

Dec. 27

Not seasonally adjusted
Assets
45 Bank c r e d i t .............................................
46
Securities in bank credit ................
47
U.S. government securities.........
48
Trading account ......................
49
Investment a c co u n t..................
50
Mortgage-backed securities . .
51
O t h e r ......................................
52
One year or l e s s ..............
53
One to five years ...........
54
More than five years . ..
55
Other securities.............................
56
Trading account ......................
57
Investment acco u n t..................
58
State and local government . .
59
O th e r ......................................
60
Loans and leases in bank credit2 . .
61
Commercial and in d u stria l.........
62
Bankers acceptances................
63
O t h e r ..........................................
64
Real estate ....................................
65
Revolving home equity .........
66
O t h e r ..........................................
67
Commercial .............................
68
Consumer ......................................
69
Credit cards and related plans. .
70
O t h e r ..........................................
71
Security5 ........................................
72
Federal funds sold to and
repurchase agreements
with broker-dealers . . . .
73
O t h e r ..........................................
74
State and local government . . . .
75
A gricultural...................................
76
Federal funds sold to and
repurchase agreements
with others ...........................
77
All other loans .............................
78
Lease-financing receivables . . . .
79 Interbank l o a n s ......................................
80
Federal funds sold to and
repurchase agreements
with commercial banks .........
81
O th e r ...................................................
82 Cash assets4 ..........................................
83 Other assets5 ..........................................

2,404.3r
562.2r
359.4r
19.5
339.9"
218.6"
121.4"
23.0
58.5
39.9"
202.8
86.7
116.1
24.3
91.8
1,842.0"
553.4"
1.1
552.3"
751.8"
64.8
420.4
266.6"
222.1
n.a.
n.a.
83.5

2,488.6"
575.3"
359.9"
22.5
337.4"
217.9"
119.6"
30.8
53.2
35.5
215.4
100.2
115.2
25.5
89.7
1,913.3"
583.7"
1.0
582.6"
799.8"
74.0"
444.9"
280.9"
226.3
n.a.
n.a
61.6

2,489.8
569.6
356.5
22.6
334.0
212.4
121.6
30.8
54.1
36.7
213.1
97.2
115.8
25.6
90.3
1,920.2
581.2
1.0
580.2
808.1
73.7
454.1
280.3
226.5
72.0
154.5
60.5

2,506.4
570.7
353.0
23.0
330.1
208.0
122.1
31.8
53.1
37.2
217.7
102.5
115.2
25.6
89.6
1,935.6
580.9
.9
580.0
815.9
74.6
459.3
281.9
229.4
73.1
156.2
63.9

2,534.4
581.4
352.7
22.5
330.2
208.3
121.9
32.6
52.6
36.7
228.7
114.5
114.2
25.7
88.5
1,953.0
584.5
.9
583.7
817.0
73.5
461.8
281.7
231.2
74.2
157.0
70.7

2,530.3
575.9
349.3
21.0
328.3
210.4
118.0
31.3
50.5
36.2
226.6
112.7
113.9
26.1
87.8
1,954.4
585.9
.8
585.1
813.5
75.3
455.9
282.3
231.3
74.3
157.0
72.0

2,542.5
578.1
347.9
21.7
326.2
210.7
115.5
31.9
48.8
34.8
230.2
116.0
114.2
26.6
87.6
1,964.4
586.7
.9
585.8
819.5
76.4
459.1
284.0
233.3
75.7
157.6
70.9

2,565.8
585.9
349.2
28.8
320.4
212.5
107.9
30.6
44.0
33.3
236.7
122.0
114.7
26.9
87.8
1,979.8
588.3
.9
587.5
818.7
77.3
457.4
284.0
236.9
80.1
156.8
76.7

2,552.0
578.1
349.4
25.4
324.1
210.6
113.5
31.9
46.0
35.5
228.6
113.8
U4.8
26.6
88.2
1,974.0
584.9
.9
584.0
825.9
77.3
463.4
285.3
234,6
76.6
158.1
76.7

2,559.7
592.6
349.8
26.7
323.1
213.2
109.9
31.0
45.3
33.6
242.8
128.2
114.6
26.4
88.1
1,967.1
581.4
.8
580.5
819.6
77.1
458.2
284.3
235.2
77.6
157.6
74.8

2,561.5
580.5
350.5
29.2
321.4
211.6
109.7
32.8
44.1
32.9
230.0
116.4
113.5
26.6
87.0
1.981.0
593.4
.9
592.5
815.5
77.3
454.1
284.2
236.0
80.3
155.7
78.0

2,576.4
587.1
345.2
30.2
315.0
212.7
102.3
27.6
42.3
32.5
241.8
126.3
115.6
27.8
87.8
1,989.3
592.6
.8
591.8
817.2
77.5
456.0
283.6
239.2
83.0
156.2
75.3

64.1
19.4
12.0
9.1

42.5
19.1
12.1
9.5

41.8
18.6
12.2
9.6

45.7
18.3
12.5
9.6

51.7
18.9
12.6
9.6

53.7
18.3
12.6
9.5

53.5
17.4
12.5
9.6

60.1
16.6
12.3
9.6

60.7
16.0
12.4
9.6

57.9
16.8
12.3
9.5

59.8
18.2
12.2
9.6

58.9
16.4
12.2
9.7

11.7
79.3
119.1
136.6"

13.5
84.3
122.4
136.7"

12.8
85.0
124.3
141.7

14.0
84.3
125.1
134.2

16.1
86.2
125.1
127.2

16.9
85.2
127.5
130.3

18.9
85.3
127.7
138.3

20.4
88.2
128.6
140.4

18.0
83.8
128.0
134.0

19.1
87.5
127.9
137.7

18.6
89.4
128.3
142.0

23.7
90.4
129.0
142.2

60.4"
76.2
159.4
235.8"

68.4
68.2
143.6"
227.1

73.0
68.7
138.4
241.6

62.2
72.0
136.6
242.4

54.7
72.5
138.4
246.6

55.7
74.6
142.4
254.1

61.3
77.0
139.2
252.2

64.4
76.0
154.5
252.7

58.6
75.4
139.4
252.3

62.0
75.7
144.8
251.8

65.6
76.4
151.0
257.8

66.4
75.8
171.4
243.5

84 Total assets6 ..........................................

2$00Ar

2,9613"

2,976.4

2,984.1

3,010.9

3,021.9

3,036.6

3,076.8

3,041.2

3,057.5

3,075.8

3,097.4

Liabilities
Deposits .................................................
Transaction ........................................
Nontransaction .................................
Large time ...................................
O t h e r ..............................................
B orro w in g s............................................
From banks in the U.S......................
From nonbanks in the U.S...............
Net due to related foreign offices . ..
Other lia b ilitie s......................................

1,633.0"
343.7"
1,289.2"
236.0"
1,053.3"
640.0"
182.3
457.7
179.2
170.5

1,634.7"
308.4"
1,326.3"
253.3"
1,073.0"
658.1
196.3
461.8
225.9
173.8

1,629.0
298.7
1,330.3
258.8
1,071.5
663.8
199.8
464.0
213.7
177.4

1,619.0
293.4
1,325.6
259.9
1,065.7
658.9
200.2
458.7
220.1
193.4

1,626.6
296.0
1,330.6
252.8
1,077.8
661.3
188.2
473.1
220.0
207.5

1,631.8
297.0
1,334.8
255.6
1,079.2
663.0
192.9
470.2
212.8
214.0

1,634.2
296.4
1,337.8
257.2
1,080.6
668.1
196.2
471.9
215.4
218.6

1,674.1
312.5
1,361.6
266.8
1,094.8
676.3
215.2
461.1
206.8
219.4

1,655.9
287.9
1,368.0
264.8
1,103.2
669.0
206.4
462.6
199.4
213.3

1,655.0
292.5
1,362.5
266.1
1,096.3
663.8
217.2
446.6
207.1
228.2

1,673.3
320.0
1,353.3
270.0
1,083.4
692.5
223.2
469.3
200.2
210.6

1,682.8
338.7
1,344.1
263.2
1,080.8
672.3
209.2
463.1
224.3
222.1

95 Total liab ilities......................................

2,622.7"

2,692.6r

2,683.8

2^91.4

2,7153

2,721.6

2,7363

2,776.6

2,737.6

2,754.0

2,776.7

2,801.5

96 Residual (assets less liabilities)7.........

277.7"

268.7"

292.6

292.8

295.6

300.3

300.3

300.2

303.6

303.5

299.1

295.9

85
86
87
88
89
90
91
92
93
94

Footnotes appear on p. A 21.




Commercial Banking Institutions—Assets and Liabilities A 19
1.26

COM M ERCIAL BANKS IN THE UNITED STATES

Assets and L iabilities1— Continued

D. Small dom estically chartered com m ercial banks
Billions of dollars
Monthly averages
Account

1999
D ec/

Wednesday figures

2000
Juner

Julyr

Aug.r

Sept.'

2000
Oct.r

Nov.r

Dec.

Dec. 6

Dec. 13

Dec. 20

Dec. 27

Seasonally adjusted
Assets
Bank c r e d i t ...............................................
Securities in bank credit ..................
U.S. government securities...........
Other securities...............................
Loans and leases in bank credit2 .........
Commercial and in d u stria l...........
Real estate ......................................
Revolving home equity ...........
O th e r ............................................
Consumer ........................................
Security3 ..........................................
Other loans and l e a s e s ..................
Interbank l o a n s ........................................
Cash assets4 ............................................
Other assets5 ............................................

1,837.4
508.4
367.6
140.8
1,329.0
253.4
711.4
36.8
674.7
271.5
6.8
85.8
65.4
86.0
100.6

1,959.1
521.9
377.1
144.8
1,437.2
276.9
775.7
41.2
734.5
288.2
6.5
89.9
67.1
79.1
111.8

1,986.4
529.6
377.5
152.2
1,456.8
283.6
783.0
41.6
741.4
290.6
6.8
92.7
75.3
81.3
110.8

2,006.1
534.3
374.8
159.6
1,471.8
286.6
787.3
42.0
745.3
296.9
7.2
93.8
84.4
81.6
110.1

2,023.7
538.6
373.5
165.2
1,485.0
288.6
796.1
45.0
751.1
299.2
7.2
93.9
85.3
82.1
108.6

2,035.1
542.0
372.1
169.8
1,493.2
291.0
802.1
46.3
755.8
297.9
7.5
94.6
86.6
82.4
112.4

2,053.6
546.6
372.1
174.5
1,507.0
294.0
810.0
46.7
763.3
300.1
7.5
95.4
82.5
78.6
107.7

2,073.3
553.6
369.6
184.0
1,519.7
293.5
817.8
47.3
770.5
302.1
7.9
98.4
88.2
82.0
113.4

2,069.4
553.0
372.2
180.8
1,516.5
293.5
817.8
47.2
770.6
298.9
8.1
98.2
85.5
79.7
108.9

2,066.9
551.1
369.2
181.9
1,515.8
293.0
817.9
47.2
770.6
299.2
7.9
97.8
86.3
81.2
113.9

2,074.8
552.4
368.5
183.8
1,522.4
292.8
818.8
47.2
771.6
303.9
7.9
99.0
89.5
81.7
114.4

2,073.0
553.7
367.5
186.3
1,519.2
292.7
817.0
47.1
769.8
303.8
7.7
98.1
88.2
83.7
115.9

16 Total assets6 ............................................

2,065.7

2,192.0

2,228.0

2,256.0

2,273.1

2,290.1

2,295.7

2330.0

2^16.8

2321.7

2^ 333

2333.7

Liabilities
Deposits ...................................................
Transaction ..........................................
Nontransaction ....................................
Large time ......................................
O t h e r .................................................
Borrowings ...............................................
From banks in the U.S........................
From others ........................................
Net due to related foreign offices . . . .
Other lia b ilitie s ........................................

1,544.2
298.1
1,246.1
239.3
1,006.8
306.7
146.1
160.5
4.5
59.9

1,642.2
296.1
1,346.1
267.3
1,078.8
344.6
162.2
182.4
9.1
54.8

1,695.3
297.8
1,397.6
277.6
1,119.9
340.7
164.2
176.5
22.4
45.5

1,722.2
301.7
1,420.5
283.3
1,137.2
339.7
164.9
174.8
23.7
46,3

1,747.6
299.2
1,448.4
287.2
1,161.2
334.2
162.0
172.2
20.6
47.6

1,764.0
300.1
1,463.9
289.7
1,174.2
327.6
154.0
173.6
23.4
49.1

1,769.6
295.6
1,474.0
292.6
1,181.5
323.3
151.9
171.4
23.7
50.4

1,813.4
294.2
1,519.1
297.8
1,221.3
328.2
155.0
173.2
20.9
50.2

1,792.9
287.6
1,505.3
295.7
1,209.6
329.1
156.2
172.9
18.7
50.5

1,801.8
288.8
1,513.1
297.8
1,215.3
327.3
155.0
172.3
19.5
50.3

1,814.9
298.9
1,516.0
298.5
1,217.5
324.3
153.3
171.0
23.3
50.4

1,823.3
305.1
1,518.2
297.8
1,220.4
326.1
153.6
172.5
23.5
50.0

27 Total liab ilities........................................

1,915.2

2,050.7

2,103.9

2,131,9

2,150.0

2,164.2

2,167.0

2,212.7

2,191.2

2,198.9

2,213.0

2^22.9

28 Residual (assets less liabilities)7 .........

150.6

141.3

124.1

124.1

123.0

125.8

128.7

117.3

125.6

122.8

120.3

110.9

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

17
18
19
20
21
22
23
24
25
26

Not seasonally adjusted

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45

Assets
Bank c r e d i t ...............................................
Securities in bank credit ..................
U.S. government securities...........
Other securities...............................
Loans and leases in bank credit2 .........
Commercial and in d u stria l...........
Real estate ......................................
Revolving home equity ...........
O th e r ............................................
Consumer ........................................
Credit cards and related plans. .
O th e r ............................................
Security3 ..........................................
Other loans and leases ..................
Interbank l o a n s ........................................
Cash assets4 ............................................
Other assets5 ............................................

1,837.9
508.0
367.0
141.0
1,329.9
253.0
710.8
37.0
673.8
273.9
n.a.
n.a.
6.8
85.4
69.8
90.3
100.2

1,964.5
523.8
379.3
144.5
1,440.7
278.9
776.7
41.1
735.6
287.8
n.a.
n.a.
6.5
90.7
63.8
78.5
111.6

1,987.2
528.7
377.3
151.4
1,458.5
283.7
784.1
41.4
742.7
289.6
123.1
166.5
6.8
94.3
71.2
79.9
112.7

2,009.5
533.9
374.2
159.8
1,475.6
284.7
790.0
41.9
748.2
297.6
129.6
168.0
7.2
96.1
80.3
78.8
111.9

2,028.1
537.3
372.6
164.7
1,490.8
286.9
799.2
45.4
753.8
301.0
131.8
169.1
7.2
96.5
82.4
81.7
108.2

2,037.1
539.4
369.6
169.7
1,497.8
290.7
805.5
46.6
758.9
297.6
128.7
168.9
7.5
96.5
86.3
82.1
112.3

2,054.0
545.0
370.4
174.6
1,509.1
292.5
812.7
47.1
765.6
300.7
131.2
169.5
7.5
95.6
89.3
81.8
109.1

2,075.0
553.6
369.1
184.5
1,521.4
293.0
817.1
47.6
769.5
305.3
136.0
169.3
7.9
98.0
94.9
86.8
112.9

2,065.1
550.6
370.4
180.3
1,514.5
291.8
816.7
47.4
769.3
300.2
131.2
169.1
8.1
97.7
98.9
80.9
109.3

2,065.9
550.5
368.5
182.0
1,515.4
291.5
817.1
47.5
769.5
301.5
132.2
169.3
7.9
97.4
95.1
83.5
112.7

2,077.9
552.9
368.4
184.5
1,525.0
292.5
817.5
47.5
770.0
308.6
139.2
169.3
7.9
98.5
95.2
85.1
111.9

2,083.4
556.4
368.5
187.8
1,527.1
293.6
818.4
47.6
770.8
309.4
140.0
169.4
7.7
98.1
88.9
90.5
115.3

46 Total assets6 ............................................

2,074.4

2,193.3

2,225.2

2,2543

2,273.8

2^91.5

2,307.6

2*342.7

2327.5

2,330.6

2,343.2

2351.0

Liabilities
Deposits ...................................................
Transaction ..........................................
Nontransaction ....................................
Large time ......................................
O t h e r .................................................
Borrowings ...............................................
From banks in the U.S........................
From others ........................................
Net due to related foreign offices . . . .
Other lia b ilitie s........................................

1,553.1
309.0
1,244.1
239.3
1,004.8
309.3
147.7
161.6
4.5
60.0

1,639.5
296.6
1,342.9
267.3
1,075.7
346.5
163.9
182.6
9.1
54.5

1,690.0
295.2
1,394.8
277.6
1,117.2
343.1
166.6
176.6
22.4
44.8

1,717.5
297.2
1,420.3
283.3
1,137.0
342.9
167.8
175.0
23.7
46.3

1,745.6
297.1
1,448.6
287.2
1,161.4
340.1
165.6
174.4
20.6
47.3

1,766.9
297.8
1,469.2
289.7
1,179.4
330.5
156.6
173.9
23.4
48.8

1,782.6
299.2
1,483.3
292.6
1,190.7
325.4
152.9
172.5
23.7
50.4

1,822.5
305.6
1,516.9
297.8
1,219.1
332.4
157.7
174.7
20.9
50.5

1,806.8
294.0
1,512.8
295.7
1,217.1
328.9
156.4
172.5
18.7
51.3

1,810.5
296.2
1,514.2
297.8
1,216.4
329.7
156.4
173.2
19.5
51.0

1,820.1
308.2
1,511.9
298.5
1,213.4
333.9
158.4
175.5
23.3
50.4

1,829.6
320.5
1,509.1
297.8
1,211.3
335.9
159.7
176.2
23.5
49.7

57 Total liab ilities........................................

1,926.8

2,049.7

2,1003

2,130.4

2,153.6

2,169.7

2,182.1

2,2263

2,205.6

2,210.6

2,227.7

2,238.6

58 Residual (assets less liabilities)7 .........

147.5

143.6

124.9

124.0

120.3

121.8

125.5

116.4

121.9

120.0

115.5

112.4

47
48
49
50
51
52
53
54
55
56

Footnotes appear on p. A21.




A20 Domestic Financial Statistics □ March 2001
1.26

COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities1— Continued

E. Foreign-related institutions
Billions of dollars

Monthly averages
Account

1999
D ec/

Wednesday figures

2000
June

July

Aug.

Sept.

2000
Oct.

Nov.

Dec.

Dec. 6

Dec. 13

Dec. 20

Dec. 27

Seasonally adjusted

1
2
3
4
5
6
7
8
9
10
11
12

Assets
Bank c r e d i t ...............................................
Securities in bank credit ..................
US. government securities...........
Other secu rities...............................
Loans and leases in bank credit2 . . .
Commercial and in d u stria l...........
Real estate ......................................
Security3 ..........................................
Other loans and leases ..................
Interbank l o a n s ........................................
Cash assets4 ............................................
Other assets5 ............................................

554.1
208.7
82.6
126.1
345.3
193.9
17.3
67.2
66.9
27.8
52.8
36.2

581.4
209.9
78.4
131.5
371.4
206.7
18.6
80.8
65.3
26.3
45.4
42.6

582.0
209.8
79.1
130.7
372.2
205.0
18.7
81.5
67.0
23.5
45.9
41.8

586.5
210.3
79.2
131.1
376.2
206.6
18.9
81.8
69.0
22.5
45.2
40.9

593.9"
208.4
76.8
131.7
385.4
204.4
19.4
94.3
67.3
24.0"
45.5
39.4

580.4
191.7
69.1
122.6
388.8
201.8
18.8
102.0"
66.1
27.8
43.0
36.0

574.9
183.5
65.5"
118.0"
391.4
201.9
19.4
103.2
67.0
27.7
39.5
34.6

598.1
200.8
66.9
133.9
397.3
205.2
19.4
106.6
66.1
27.5
41.0
30.9

584.3
187.5
65.4
122.1
396.8
203.3
19.2
106.6
67.7
27.7
38.9
34.0

586.5
194.5
64.0
130.5
392.0
202.6
19.2
102.7
67.4
25.3
41.7
28.4

601.3
203.2
67.9
135.3
398.2
207.3
19.9
105.4
65.4
26.7
40.8
30.2

612.7
211.3
69.6
141.7
401.4
207.4
19.5
109.5
64.9
30.0
41.5
30.6

13 Total assets6 ............................................

670.6

695.3

692.9

694.7

702.4"

686.9

6763

697.2

6845

681.6

698.6

7143

Liabilities
Deposits ...................................................
Transaction ..........................................
Nontransaction ....................................
Borrowings ...............................................
From banks in the U.S........................
From others ........................................
Net due to related foreign offices.............
Other lia b ilitie s........................................

376.7
10.8
365.9
178.0
22.6
155.4
41.1
67.4

385.1
11.3
373.8
202.6
19.2
183.4
20.2
72.0

390.3
11.3
379.1
202.5
21.0
181.5
18.2
73.7

395.6
10.8
384.8
198.9
17.0
181.9
23.4
73.0

388.3
9.7
378.6
214.5"
19.5"
195.0"
24.3
76.2"

384.4
10.4
374.0
218.6
18.9
199.7
16.7
75.8

382.8
10.5
372.4
222.0
19.5
202.5
6.1
70.2

385.4
10.2
375.1
239.6
24.0
215.5
- 2 .0
68.5

381.3
10.2
371.2
240.6
25.0
215.6
-6 .6
70.3

389.6
9.5
380.1
228.2
19.9
208.3
-9 .4
65.9

380.8
10.1
370.7
241.6
22.3
219.3
3.1
67.5

383.4

22 Total liab ilities........................................

663.2

679.9

684.8

690.8

703-3"

695.4

681.1

691-5

685.7

674.4

693.1

701.8

23 Residual (assets less liabilities)7 .........

7.4

15.4

8.1

3.9

- .9

-8 .5

-4 .8

5.8

-1 .2

7.3

5.5

12.5

593.3
194.3
67.2
11.2
55.9
127.2
86.8
40.4
399.0
205.8
19.2
104.9
69.1
27.7
41.7
36.0

594.5
198.5
65.3
10.8
54.6
133.1
87.1
46.1
396.0
205.3
19.1
102.6
69.1
25.3
44.7
30.7

611.2
205.6
68.6
12.2
56.4
137.0
89.0
48.1
405.6
211.7
19.8
106.2
67.9
26.7
44.6
32.0

626.8
214.0
70.6
13.1
57.5
143.4
93.1
50.3
412.8
213.3
19.4
111.5
68.6
30.0
45.5
32.1

14
15
16
17
18
19
20
21

11.0

372.4
246.4
25.0
221.4
2.6
69.4

Not seasonally adjusted
Assets
Bank c r e d i t ...............................................
Securities in bank credit ..................
U.S. government securities...........
Trading account ........................
Investment a c co u n t....................
Other securities...............................
Trading account ........................
Investment a c co u n t....................
Loans and leases in bank credit2 .. .
Commercial and in d u stria l...........
Real estate ......................................
Security3 ..........................................
Other loans and le a s e s ..................
Interbank l o a n s ........................................
Cash assets4 ............................................
Other assets5 ............................................

564.2
212.6
84.0
6.8
77.2
128.6
85.2
43.4
351.6
197.5
17.3
67.7
69.2
27.8
57.0
38.3

571.4
203.7
78.5
12.0
66.5
125.2
81.4
43.8
367.8
203.4
18.5
81.1
64.8
26.3
44.7
40.4

571.1
202.7
78.1
12.0
66.1
124.6
80.7
43.9
368.4
202.5
18.5
81.3
66.2
23.5
44.2
39.9

576.7
204.5
77.6
13.9
63.7
126.9
82.4
44.6
372.1
203.9
18.7
81.9
67.6
22.5
43.7
40.2

593.1
208.6
74.7
14.2
60.4
133.9
91.0
42.9
384.5
204.4
19.2
94.1"
66.8"
24.0"
44.6
38.7

589.3
199.2
68.7
11.9
56.9
130.5
89.9
40.6
390.1
203.2
19.1
101.4
66.4"
27.8
43.9
35.3

589.0
194.2
66.9
55.9
127.4"
87.3
40.0
394.8
205.2
19.4
102.4"
67.8"
27.7
41.9
34.7

609.1
204.9
68.0
11.8
56.2
136.8
89.9
46.9
404.2
209.3
19.4
107.0
68.5
27.5
44.5
32.8

40 Total assets6 ............................................

687.1

682.4

678.4

682.7

700.1r

695.9

692.9

713.5

698.4

694.8

714.2

734.0

Liabilities
Deposits ...................................................
Transaction ..........................................
Nontransaction ....................................
B orro w in g s..............................................
From banks in the U.S........................
From others ........................................
Net due to related foreign offices . . . .
Other liab ilities........................................

385.3
11.5
373.8
178.0
22.6
155.4
46.3
69.5

380.8
369.8
202.6
19.2
183.4
18.8
70.5

381.5
11.2
370.4
202.5
21.0
181.5
17.3
72.1

383.6
10.7
372.9
198.9
17.0
181.9
23.2
72.6

381.9
10.2
371.7"
214.5"
19.5"
195.0"
23.6
75.8"

379.9
10.6
369.4
218.6
18.9
199.7
16.9
75.2

386.1
10.6
375.5
222.0
19.5
202.5
7.7
71.2

394.3
10.8
383.5
239.6
24.0
215.5
3.1
70.4

386.4
10.3
376.1
240.6
25.0
215.6
-7 .2
71.8

397.4
10.0
387.5
228.2
19.9
208.3
-5 .2
67.8

390.0
10.9
379.1
241.6
22.3
219.3
7.7
69.2

396.9
11.9
385.0
246.4
25.0
221.4
13.0
71.8

49 Total liab ilities........................................

679.0

672.6

6735

678.3

695.9"

690.6

687.0

7073

691.7

6883

7085

728.0

50 Residual (assets less liabilities)7 ...........

8.0

9.7

4.9

4.3

4.2"

5.3

5.9

6.2

6.7

6.5

5.7

6.0

24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

41
42
43
44
45
46
47
48




11.0

11.0

Commercial Banking Institutions—Assets and Liabilities A21
1.26

COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities1— Continued

F. Memo items
Billions of dollars

Monthly averages
Account

1999
Dec.r

Wednesday figures

2000
June

July

Aug.

Sept.

2000
Oct.

Nov.

Dec.

Dec. 6

Dec. 13

Dec. 20

Dec. 27

Not seasonally adjusted

51
52
53
54
55
56
57
58
59
60
61

62
63
64
65
66
67
68

M emo
Large domestically chartered banks,
adjusted fo r mergers
Revaluation gains on off-balance-sheet
items8 ...............................................
Revaluation losses on off-balancesheet items8 ......................................
Mortage-backed securities9 ....................
Pass-through ........................................
CMO, REMIC, and other ................
Net unrealized gains (losses) on
available-for-sale securities10 . . . .
Off-shore credit to U.S. residents11. . . .
Securitized consumers loans1 2 .............
Credit cards and related p l a n s .........
O t h e r .....................................................
Securitized business loans12..................
Small domestically chartered
commercial banks, adjusted fo r
mergers
Mortgage-backed securities9 ..................
Securitized consumer loans12................
Credit cards and related p l a n s .........
O t h e r .....................................................
Foreign-related institutions
Revaluation gains on off-balancesheet items8 ......................................
Revaluation losses on off-balancesheet items8 ......................................
Securitized business loans12..................

64.2

68.3

63.1

66.5

74.4

70.9

68.0

78.4

73.1

74.5

77.4

85.5

63.7
251.5r
174.1r
77.4r

68.5
250.2r
177.9"
72.3r

62.9
242.5r
173.2r
69.3r

67.3
238.0"
169.9"
68.2r

73.9
238.2r
170.4"
67.7r

72.8
239.6r
173.4"
66.3"

72.6
239.8"
173.7"
66.0"

83.1
241.6
176.9
64.7

78.5
240.1
174.9
65.2

79.2
242.1
176.8
65.4

82.6
240.8
176.4
64.4

90.0
241.9
178.1
63.7

-11.3
24.0
n.a.
n.a.
n.a.
n.a.

-8 .7
22.4
n.a.
n.a.
n.a
n.a.

-11.5
22.2
87.4
72.4
15.0
17.0

-1 0 .8
22.1
86.6
72.0
14.6
16.2

- 9 .7
22.1
85.9
71.8
14.1
15.3

-8 .7
22.3
80.8
67.2
13.6
15.2

-8 .0
23.1
80.5
67.3
13.2
17.8

-5 .8
23.4
82.2
68.6
13.6
18.6

-6 .7
23.3
82.0
69.0
13.0
18.4

-6 .4
23.5
81.9
69.0
12.9
18.5

-5 .8
23.8
82.7
68.6
14.1
18.5

-5 .6
23.6
82.6
68.6
14.0
18.7

196.5r
n.a.
n.a.
n.a.

207.4r
n.a.
n.a.
n.a.

207.2r
220.5
211.5
9.0

210.1r
220.8
212.0
8.8

211.6r
221.5
212.9
8.6

212.6"
223.7
214.0
9.7

214.0"
224.7"
214.8"
9.9

215.1
230.1
220.5
9.6

214.9
227.2
217.5
9.7

214.8
230.2
220.5
9.7

213.9
229.9
220.6
9.3

215.0
231.6
222.1
9.6

43.6

44.7

41.4

43.0

48.6

47.5

44.8

45.8

44.1

45.2

45.8

47.2

41.5
n.a.

40.7
n.a.

38.2
23.9

40.1
23.7

45.0"
23.1

44.6
23.0

40.8
22.8

41.5
23.1

40.2
23.4

41.4
22.9

40.8
22.9

42.9
23.0

N o t e . Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board’s H.8
statistical release, “Assets and Liabilities of Commercial Banks in the United States.” Table
1.27, “Assets and Liabilities of Large Weekly Reporting Commercial Banks,” and table 1.28,
“Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks,” are no longer
being published in the Bulletin. Instead, abbreviated balance sheets for both large and small
domestically chartered banks have been included in table 1.26, parts C and D. Data are both
merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S.
branches and agencies of foreign banks have been replaced by balance sheet estimates of all
foreign-related institutions and are included in table 1.26, part E. These data are breakadjusted.
The not-seasonally-adjusted data for all tables now contain additional balance sheet items,
which were available as of October 2, 1996.
1.
Covers the following types of institutions in the fifty states and the District of
Columbia: domestically chartered commercial banks that submit a weekly report of condition
(large domestic); other domestically chartered commercial banks (small domestic); branches
and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related
institutions). Excludes International Banking Facilities. Data are Wednesday values or pro
rata averages of Wednesday values. Large domestic banks constitute a universe; data for
small domestic banks and foreign-related institutions are estimates based on weekly samples
and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications
of assets and liabilities.
The data for large and small domestic banks presented on pp. A 17-19 are adjusted to
remove the estimated effects of mergers between these two groups. The adjustment for
mergers changes past levels to make them comparable with current levels. Estimated
quantities of balance sheet items acquired in mergers are removed from past data for the bank
group that contained the acquired bank and put into past data for the group containing the




acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a
ratio procedure is used to adjust past levels.
2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks
in the United States, all of which are included in “Interbank loans.”
3. Consists o f reverse RPs with brokers and dealers and loans to purchase and carry
securities.
4. Includes vault cash, cash items in process of collection, balances due from depository
institutions, and balances due from Federal Reserve Banks.
5. Excludes the due-from position with related foreign offices, which is included in “Net
due to related foreign offices.”
6. Excludes unearned income, reserves for losses on loans and leases, and reserves for
transfer risk. Loans are reported gross of these items.
7. This balancing item is not intended as a measure of equity capital for use in capital
adequacy analysis. On a seasonally adjusted basis, this item reflects any differences in the
seasonal patterns estimated for total assets and total liabilities.
8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity and
equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39.
9. Includes mortgage-backed securities issued by U.S. government agencies, U.S.
government-sponsored enterprises, and private entities.
10. Difference between fair value and historical cost for securities classified as availablefor-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are
restated to include an estimate o f these tax effects.
11. Mainly commercial and industrial loans but also includes an unknown amount of credit
extended to other than nonfinancial businesses.
12. Total amount outstanding.

A22
1.32

Domestic Financial Statistics □ March 2001
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
A. Commercial Paper
Millions of dollars, seasonally adjusted, end of period
Year ending December

2000

Item
1995

1996

1997

1998

1999

June

July

Aug.

Sept.

Oct.

Nov.

1 All issuers ..........................................................

674,904

775,371

966,699

1,163,303

1,403,023

1,516,205

1,551,668

1,559,054

1,557,700

1,587,591

1,624,421

Financial companies’
Dealer-placed paper, total2 ...........................
Directly placed paper, total3 ........................

275,815
210,829

361,147
229,662

513,307
252,536

614,142
322,030

786,643
337,240

884,578
300,718

900,651
309,076

905,634
303,307

899,853
315,039

912,739
328,049

960,701
312,438

4 Nonfinancial companies4 .................................

188,260

184,563

200,857

227,132

279,140

330,909

341,941

350,113

342,809

346,803

351,282

2
3

1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales,
personal, and mortgage financing; factoring, finance leasing, and other business lending;
insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.

3. As reported by financial companies that place their paper directly with investors.
4. Includes public utilities and firms engaged primarily in such activities as communica­
tions, construction, manufacturing, mining, wholesale and retail trade, transportation, and
services.

B. Bankers Dollar Acceptances1
Millions of dollars, not seasonally adjusted, year ending September2
Item

1997

1998

1999

2000

1 Total amount of reporting banks’ acceptances in e x iste n c e.........................................................................

25,774

14,363

10,094

9,881

2 Amount of other banks’ eligible acceptances held by reporting b a n k s ............................................................
3 Amount of own eligible acceptances held by reporting banks (included in item 1 ) ......................................
4 Amount of eligible acceptances representing goods stored in, or shipped between, foreign countries
(included in item 1) ............................................................................................................................................

736
6,862

523
4,884

461
4,261

462
3,789

10,467

5,413

3,498

3,689

1.
Includes eligible, dollar-denominated bankers acceptances legally payable in the United
States. Eligible acceptances are those that are eligible for discount by Federal Reserve Banks;
that is, those acceptances that meet the criteria of Paragraph 7 of Section 13 of the Federal
Reserve Act (12 U.S.C. §372).

1.33

PRIME RATE CHARGED BY BANKS

2.
Data on bankers dollar acceptances are gathered from approximately 40 institutions;
includes U.S. chartered commerical banks (domestic and foreign offices), U.S. branches and
agencies of foreign banks, and Edge and agreement corporations. The reporting group is
revised every year.

Short-Term Business Loans'

Percent per year

Date of change

Rate

Period

Average
rate

1998— Jan.
1 ..........................
Sept. 30 ..........................
Oct. 16 ..........................
Nov. 1 8 ..........................

8.50
8.25
8.00
7.75

1998 .............................................
1999 .............................................
2000 .............................................

8.35
8.00
9.23

July
1 ..........................
Aug. 25 ..........................
Nov. 17 ..........................

8.00
8.25
8.50

2000— Feb. 3 ..........................
Mar. 2 2 ..........................
May 1 7 ..........................

8.75
9.00
9.50

1998— Jan.....................................
Feb....................................
Mar....................................
Apr.....................................
May .................................
June .................................
J u ly ..................................

2001—Jan.
Feb

9.00
8.50

8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.49
8.12
7.89
7.75

1999

4 ..........................
1
.............

Sept...................................
Oct.....................................
Dec....................................

1.
The prime rate is one of several base rates that banks use to price short-term business
loans. The table shows the date on which a new rate came to be the predominant one quoted
by a majority of the twenty-five largest banks by asset size, based on the most recent Call




Period

1999

Jail.....................................
Feb....................................
Mar....................................
Apr....................................
Mav .................................
J u ly ..................................
Aug...................................
Sept...................................
Oct.....................................
Nov....................................

Average
rate

7.75
7.75
7.75
7.75
7.75
7 75
8.00
8.06
8.25
8.25
8.37
8.50

Period

2000— Jan....................................
Feb....................................
Mar....................................
Apr....................................
M a y .................................
J u ly ..................................
Aug...................................
Sept...................................
Oct.....................................
Nov....................................
2001—Jan.....................................

Average
rate

8 50
8.73
8.83
9.00
9.24
9 50
9.50
9.50
9.50
9.50
9.50
9 50
9.05

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

Financial Markets A23
1.35

INTEREST RATES

Money and Capital Markets

Percent per year; figures are averages of business day data unless otherwise noted
2000, week ending

2000
Item

1999

2000
Sept.

Oct.

Nov.

Dec.

Dec. 1

Dec. 8

Dec. 15

Dec. 22

Dec. 29

M oney M arket Instrum ents
1 Federal funds1-2'3 ...................................................
2 Discount window borrowing2'4 ........................

5.35
4.92

4.97
4.62

6.24
5.73

6.52
6.00

6.51
6.00

6.51
6.00

6.40
6.00

6.50
6.00

6.57
6.00

6.47
6.00

6.53
6.00

6.48
6.00

3
4
5

Commercial p a p e r'’5'6
Nonfinancial
1-month ........................................ ......................
2-month ..............................................................
-3-month ..............................................................

5.40
5.38
5.34

5.09
5.14
5.18

6.27
6.29
6.31

6.48
6.47
6.47

6.48
6.48
6.51

6.49
6.52
6.50

6.51
6.42
6.34

6.51
6.53
6.50

6.52
6.48
6.43

6.53
6.42
6.33

6.51
6.41
6.28

6.45
6.36
6.28

6
7
8

Financial
1-month ..............................................................
2-month ..............................................................
3-month ..............................................................

5.42
5.40
5.37

5.11
5.16
5.22

6.28
6.30
6.33

6.49
6.48
6.47

6.48
6.47
6.52

6.49
6.54
6.52

6.52
6.42
6.33

6.49
6.55
6.51

6.54
6.48
6.43

6.54
6.45
6.36

6.54
6.39
6.28

6.45
6.33
6.21

9
10
11

Commercial paper (historical)3'5'7
1-month ..............................................................
3-month ..............................................................
6-month ..............................................................

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

12
13
14

Finance paper, directly placed (historical) 3'5'8
1-month ..............................................................
3-month ..............................................................
6-month ..............................................................

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

15
16

Bankers acceptances3'5'9
3-month ..............................................................
6-month ..............................................................

5.39
5.30

5.24
5.30

6.23
6.37

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

17
18
19

Certificates
1-month
3-month
6-month

o f deposit, secondary market*'10
..............................................................
..............................................................
..............................................................

5.49
5.47
5.44

5.19
5.33
5.46

6.35
6.46
6.59

6.56
6.60
6.68

6.55
6.67
6.65

6.56
6.65
6.63

6.62
6.45
6.30

6.62
6.63
6.60

6.67
6.54
6.42

6.63
6.49
6.36

6.59
6.40
6.21

6.55
6.32
6.11

20 Eurodollar deposits. 3-month3' 1 ......................
1

5.45

5.31

6.45

6.59

6.66

6.64

6.43

6.62

6.52

6.47

6.39

6.31

4.78
4.83
4.80

4.64
4.75
4.81

5.82
5.90
5.78

6.00
5.98
5.79

6.11
6.04
5.72

6.17
6.06
5.84

5.77
5.68
5.33

6.08
5.98
5.71

5.94
5.81
5.47

5.89
5.78
5.44

5.51
5.53
5.18

5.66
5.50
5.11

4.81
4.85
4.85

4.66
4.76
4.78

5.66
5.85
5.85

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

24
25
26

U.S. Treasury hills
Secondary market3'5
3-month ..............................................................
6-month ..............................................................
1-year ...................................................................
Auction high3'512
3-month ..............................................................
6-month ..............................................................
1-year ...................................................................

27
28
29
30
31
32
33
34

Constant maturities' 3
1-year ...................................................................
2 -y e a r...................................................................
3-year ...................................................................
5-year ...................................................................
7-year ...................................................................
10-year .................................................................
20-year ................................................................
3 0 -y ea r................................................................

5.05
5.13
5.14
5.15
5.28
5.26
5.72
5.58

5.08
5.43
5.49
5.55
5.79
5.65
6.20
5.87

6.11
6.26
6.22
6.16
6.20
6.03
6.23
5.94

6.13
6.08
6.02
5.93
5.98
5.80
6.09
5.83

6.01
5.91
5.85
5.78
5.84
5.74
6.04
5.80

6.09
5.88
5.79
5.70
5.78
5.72
5.98
5.78

5.60
5.35
5.26
5.17
5.28
5.24
5.64
5.49

6.00
5.71
5.61
5.52
5.60
5.56
5.84
5.66

5.78
5.49
5.41
5.33
5.41
5.39
5.73
5.57

5.73
5.46
5.35
5.25
5.34
5.29
5.65
5.49

5.44
5.23
5.12
5.02
5.14
5.10
5.56
5.43

5.34
5.12
5.06
4.98
5.16
5.10
5.58
5.44

Composite
35 More than )0 years (lo n g -te rm )........................

5.69

6.14

6.41

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

4.93
5.14
5.09

5.28
5.70
5.43

5.58
6.19
5.71

5.40
6.12
5.56

5.46
6.22
5.59

5.38
6.17
5.54

5.11
5.85
5.22

5.36
6.13
5.46

5.19
6.01
5.34

5.12
5.81
5.25

5.07
5.79
5.16

5.07
5.79
5.14

39 Seasoned issues, all industries16........................

6.87

7.45

7.98

7.98

7.95

7.90

7.65

7.81

7.72

7.65

7.58

7.59

Rating group
Aaa .........................................................................
Aa ............................................................................
A ..............................................................................
B a a ............................................................................

6.53
6.80
6.93
7.22

7.05
7.36
7.53
7.88

7.62
7.83
8.11
8.36

7.62
7.83
8.13
8.35

7.55
7.81
8.11
8.34

7.45
7.75
8.09
8.28

7.21
7.48
7.88
8.02

7.37
7.67
8.02
8.19

7.29
7.57
7.94
8.10

7.21
7.48
7.88
8.03

7.16
7.40
7.82
7.95

7.15
7.40
7.83
7.97

M emo
Dividend price ratio17
44 Common s to c k s .....................................................

1.49

1.25

1.15

1.10

1.15

1.16

1.19

1.19

1.17

1.16

1.26

1.18

21
22
23

U.S. T r e a s u r y N o te s a n d B o n d s

State and L ocal N otes a nd B onds
M oody’s series14
36 Aaa ..........................................................................
37 B a a ............................................................................
38 Bond Buyer series15...............................................
C orporate B onds

40
41
42
43

No t e . Some of the data in this table also appear in the Board’s H.15 (519) weekly and
G. 13 (4)5) monthly statistical releases. For ordering address, see inside front cover.
1. The daily effective federal funds rate is a weighted average of rates on trades through
New York brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday of the
current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. Interest rates interpolated from data on certain commercial paper trades settled by the
Depository Trust Company. The trades represent sales of commercial paper by dealers or
direct issuers to investors (that is, the offer side). See Board’s Commercial Paper Web pages
(http://www.federalreserve.gov/releases/cp) for more information.
7. An average o f offering rates on commercial paper for firms whose bond rating is AA or
the equivalent. Series ended August 29, 1997.
8. An average of offering rates on paper directly placed by finance companies. Series
ended August 29, 1997.




9. Representative closing yields for acceptances of the highest-rated money center banks.
10. An average of dealer offering rates on nationally traded certificates of deposit.
11. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for
indication purposes only.
12. Auction date for daily data; weekly and monthly averages computed on an issue-date
basis. On or after October 28, 1998, data are stop yields from uniform-price auctions. Before
that, they are weighted average yields from multiple-price auctions.
13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Depart­
ment of the Treasury.
14. General obligation bonds based on Thursday figures; M oody’s Investors Service.
15. State and local government general obligation bonds maturing in twenty years are used
in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys’
A1 rating. Based on Thursday figures.
16. Daily figures from Moody’s Investors Service. Based on yields to maturity on selected
long-term bonds.
17. Standard & Poor’s corporate series. Common stock ratio is based on the 500 stocks in
the price index.

A24
1.36

Domestic Financial Statistics □ March 2001
STOCK MARKET

Selected Statistics
2000
Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

666.14
837.23
419.84
459.91
597.17

667.05
829.99
404.23
463.76
616.89

646.53
797.00
403.20
469.16
587.76

646.64
800.88
434.92
455.66
600.45

645.44
792.66
457.53
444.16
621.62

1,485.46

1,468.06

1,390.14

1,375.04

1,330.93

930.66

920.54

952.74

913.64

892.60

870.16

941,694
36,486

875,087
35,695

1,026,597
47,047

1,167,025
57,915

1,015,606
58,541

1,183,149
73,759

Prices and trading volume (averages of daily figures)
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 5 0 ) ......................
2
In d u stria l.................................................
3
T ransportation........................................
4
Utility .....................................................
5
Finance ...................................................

6 Standard & Poor’s Corporation

(1 9 4 1 -4 3 = 1 0 ) '.............................

550.65
684.35
468.61
190.52
516.65

619.52
775.29
491.62
284.82
530.97

643.71
809.40
414.73
478.99
552.48

646.82
822.76
406.14
502.78
524.05

1,085.50

1,327.33

1,427.22

1,461.36

640.07
814.75
411.50
487.17
523.22

649.61
819.54
395.09
501.93
544.51
1,461.96

7 American Stock Exchange
(Aug. 31, 1973 = 50)2 ..................
Volume o f trading (thousands o f shares)
8 New York Stock Exchange ....................
9 American Stock E x c h a n g e......................

666,534
28,870

799,554
32,629

1,026,867
51,437

1,047,960
63,054

653.27
825.28
410.67
484.19
556.32

893,896
44,146

971,137
42,490

Customer financing (millions of dollars, end-of-period balances)
10 Margin credit at broker-dealers3 ..................
Free credit balances at brokers4
11 Margin accounts5 .................................................
12 Cash a c co u n ts........................................................

1,685,820 2,130,152 2,921376
405,180
633,725

532,500
757,345

867,610
918,917

251,700

240,660

247,200

244,970

247,560

250,780

233,376

219,110

198,790

65,930
76,190

66,170
73,500

64,970
74,140

71,730
74,970

68,020
72,640

70,959
74,766

83,131
73,271

96,730
74,050

100,680
84,400

Margin requirements (percent of market value and effective date)6
Mar. 11, 1968
13 Margin s to c k s ........................................................
14 Convertible bonds ...............................................
15 Short s a le s ..............................................................

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

1. In July 1976 a financial group, composed of banks and insurance companies, was added
to the group of stocks on which the index is based. The index is now based on 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and
40 financial.
2. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting
previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has
included credit extended against stocks, convertible bonds, stocks acquired through the
exercise of subscription rights, corporate bonds, and government securities. Separate report­
ing of data for margin stocks, convertible bonds, and subscription issues was discontinued in
April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to
brokers and are subject to withdrawal by customers on demand.
5. Series initiated in June 1984.




Jan. 3, 1974
50
50
50

6.
Margin requirements, stated in regulations adopted by the Board of Governors pursuant
to the Securities Exchange Act of 1934, limit the amount of credit that can be used to
purchase and carry “ margin securities” (as defined in the regulations) when such credit is
collateralized by securities. Margin requirements on securities 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.

Federal Finance A25
1.38

FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Fiscal year

Calendar year

Type of account or operation

2000
1998

1999

2000
July

Aug.

Sept.

Oct.

Nov.

Dec.

US. budget1
1 Receipts, total ..........................................................
2
On-budget ............................................................
3
Off-budget ............................................................
4 Outlays, total ............................................................
5
On-budget ............................................................
6
Off-budget ............................................................
7 Surplus or deficit ( - ) , to ta l....................................
8
On-budget ............................................................
9
Off-budget ............................................................

1,721,798
1,305,999
415,799
1,652,224
1,335,948
316,604
69,246
-2 9 ,9 4 9
99,195

1,827,454
1,382,986
444,468
1,702,942
1,382,262
320,778
124,414
724
123,690

2,025,038
1,544,455
480,583
1,788,140
1,457,376
330,765
236,897
87,079
149,818

134,074
97,681
36,393
129,013
99,404
29,609
5,061
-1 ,7 2 3
6,784

138,128
101,429
36,699
148,555
115,539
33,016
-1 0 ,4 2 7
-1 4 ,1 1 0
3,683

219,471
176,692
42,779
153,744
114,748
38,901
65,727
61,944
3,878

135,111
101,121
33,990
146,431
115,840
30,592
-11,321
-1 4 ,7 1 9
3,398

125,666
89,216
36,450
149,356
116,737
32,619
-2 3 ,6 9 0
-27,521
3,831

200,489
161,737
38,752
167,823
132,747
35,075
32,666
28,990
3,677

Source o f financing (total)
10 Borrowing from the public ....................................
11 Operating cash (decrease, or increase (— .............
))
12 O ther2 .........................................................................

-51,211
4,743
-2 2,778

-8 8 ,6 7 4
-1 7 ,5 8 0
-1 8 ,1 6 0

-2 2 2 ,6 7 2
3,799
-1 7 ,3 2 7

-3 1 ,3 0 7
23,384
2,862

9,995
20,873
-20,441

-3 2 ,3 3 4
-3 9 ,4 7 9
6,086

-2 9 ,6 6 6
42,653
—1,666

41,325
-1 ,431
-1 6 ,2 0 4

-3 6 ,6 8 9
-9 ,6 3 2
13,655

M emo
13 Treasury operating balance (level, end of
period)................................................................
14
Federal Reserve Banks ......................................
15
Tax and loan a c co u n ts........................................

38,878
4,952
33,926

56,458
6,641
49,817

52,659
8,459
44,199

34,053
5,392
28,661

13,180
5,961
7,218

52,659
8,459
44,199

10,006
5,360
4,646

11,437
4,382
7,055

21,069
5,149
15,920

1. Since 1990, off-budget items have been the social security trust funds (Federal Old-Age,
Survivors, and Disability Insurance) and the U.S. Postal Service.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the
International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets;
accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous
liability (including checks outstanding) and asset accounts; seigniorage; increment on gold;




net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF loanvaluation adjustment; and profit on sale of gold.
SOURCE. Monthly totals: U.S. Department of the Treasury, Monthly Treasury Statement o f
Receipts and Outlays o f the U.S. Government; fiscal year totals: U.S. Office of Management
and Budget, Budget o f the U.S. Government when available.

A26
1.39

Domestic Financial Statistics □ March 2001
U.S. BUDGET RECEIPTS AND OUTLAYS1
Millions of dollars
Fiscal year

Calendar year

Source or type

1999
1999

2000

2000

2000r
HI

H2

HI

H2

Oct.

Nov.

Dec.

R eceipts
1,827,454

2,025,200

966,045

892,266

1,089,760

952,939

135,111

125,666

200,489

2 Individual income taxes, n e t .................................
3
W ith h e ld................................................................
4
N onw ithheld..........................................................
5
R efunds...................................................................
Corporation income taxes
6
Gross receip ts........................................................
7
R efunds...................................................................
8 Social insurance taxes and contributions, net . . .
9
Employment taxes and contributions2 .............
10
Unemployment insurance....................................
11
Other net receipts3 ...............................................

879,480
693,940
308.185
122,706

1,004,500
780,397
358,049
134,046

481,907
351,068
240,278
109,467

425,451
372,012
68,302
14,841

550,208
388,526
281,103
119,477

458,679
395,572
77,732
14,628

75,969
68,287
8,799
1,118

60,489
62,855
2,320
4,686

83,485
78,133
6,468
1,116

216,324
31,645
611,833
580,880
26,480
4,473

235,655
28,367
652,900
620,447
27,641
4,763

106,861
17,092
324,831
306,235
16,378
2,216

110,111
13,996
292,551
280,059
10,173
2,319

119,166
13,781
353,514
333,584
17,562
2,368

123,962
15,776
310,122
297,665
10,097
2,360

7,113
5,404
47,155
45,247
1,509
399

4,292
2,245
51,383
48,536
2,431
416

53,192
1,886
53,559
52,932
260
367

Excise taxes ..............................................................
Customs d e p o s its .....................................................
Estate and gift ta x e s .................................................
Miscellaneous receipts4 ..........................................

70,414
18.336
27,782
34,929

68,900
19,900
29,000
42,800

31,015
8,440
14.915
15,140

34,262
10,287
14,001
19,569

33,532
9,218
15,073
22,831

35,501
10,676
13,216
16,556

4,235
1,900
2,868
1,275

6,030
1,640
2,141
1,935

5,865
1,461
1,863
2,949

1 AH so u r c es................................................................

12
13
14
15

O utlays
1,702,942

1,789,000

817,227

882,465

892,947

894,922

146,431

149,356

167,823

17
18
19
20
21
22

National defense .....................................................
International affairs .................................................
General science, space, and technology .............
Energy .......................................................................
Natural resources and environm ent......................
A g riculture................................................................

274,873
15,243
18,125
912
23.970
23,011

294,500
17,200
18.600
- 1 ,1 0 0
25,000
36,600

134,414
6,879
9,319
797
10,351
9,803

149,573
8,530
10,089
-9 0
12,100
20,887

143,476
7,250
9,601
-8 9 3
10,814
11,164

147,651
11,902
10,389
-5 9 5
12,907
20,977

21,478
1,795
1,676
-1 ,2 0 0
2,132
5,025

24,445
1,326
1,776
74
2,100
3,547

29,176
4,828
1,868
182
2,083
3,618

23
24
25
26

Commerce and housing c re d it...............................
Transportation ..........................................................
Community and regional develo p m en t................
Education, training, employment, and
social services .................................................

2.649
42,531
11,870

3,200
46,900
10,600

-1 ,6 2 9
17,082
5,368

7,353
23,199
6,806

-2 ,4 9 7
21,054
5,050

4,408
25,841
5,962

843
4,729
1,211

-7 0 9
4,221
1,133

555
4,035
822

56,402

59,400

29,003

27,532

31,234

29,263

5,061

5,014

6,122

27 H e a lth .........................................................................
28 Social security and Medicare ...............................
29 Income security ........................................................

141,079
580,488
237,707

154,500
606,500
247,900

69.320
261,146
126,552

74,490
295,030
113,504

75,871
306,966
133,915

81,413
307,473
113,212

14,799
51,766
16,485

13,111
51,481
18,950

12,975
54,224
23,882

30
31
32
33
34

43,212
25,924
15,771
229,735
-4 0,445

47,100
28,000
13,200
223.200
-4 2 ,6 0 0

20,105
13,149
6,641
116,655
-1 7 ,7 2 4

23,412
13,459
7,010
112,420
-2 2 ,8 5 0

23,174
13,981
6,198
115,545
-1 9 ,3 4 6

22,615
14,635
6,461
104,685
-2 4 ,0 7 0

2,222
2,545
1,239
18,399
-3 ,7 7 5

3,644
2,741
1,134
18,916
-3 ,5 4 7

5,520
2,495
1,205
17,122
-2 ,8 8 9

16 All types ...................................................................

Veterans benefits and services .............................
Administration of ju s tic e ........................................
General government ...............................................
Net interest5 ..............................................................
Undistributed offsetting receipts6 ...........................

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 receipts and
outlays do not correspond to calendar year data because revisions from the Budget have not
been fully distributed across months.
2. O ld-age, disability, and hospital insurance, and railroad retirem ent accounts.
3. F ed eral e m p lo y e e re tire m e n t c o n trib u tio n s and c iv il s e rv ic e re tire m e n t
d is a b ility fund.




and

4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
5. Includes interest received by trust funds.
6. Rents and royalties for the outer continental shelf, U.S. government contributions for
employee retirement, and certain asset sales.
S o u r c e . Fiscal year totals: U .S . Office of Management and Budget, Budget o f the U.S.
Government, Fiscal Year 200I\ monthly and half-year totals: U.S. Department of the Trea­
sury, Monthly Treasury Statement o f Receipts and Outlays o f the US. Government.

Federal Finance A27
1.40

FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1998

1999

2000

Item
Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

1 Federal debt outstand ing.......................................................

5,643

5,681

5,668

5,685

5,805

5,802

5,714

5,702

5,690

2 Public debt securities ................................................................
3
Held by public .......................................................................
4
Held by agencies ..................................................................

5,614
3,787
1,827

5,652
3,795
1,857

5,639
3,685
1,954

5,656
3,667
1,989

5,776
3,716
2,061

5,773
3,688
2,085

5,686
3,496
2,190

5,674
n.a.
n.a.

5,662
n.a.
n.a.

5 Agency securities .......................................................................
6
Held by public .......................................................................
7
Held by agencies ..................................................................

29
29
1

29
28
1

29
28
1

29
28
1

29
28
1

28
28
0

28
28
0

28
n.a.
n.a.

27
n.a.
n.a.

8 Debt subject to statutory limit ............................................

5,530

5,566

5,552

5,568

5,687

5,687

5,601

5,592

5,581

9 Public debt securities ................................................................
10 Other debt1 ..................................................................................

5,530
0

5,566
0

5,552
0

5,568
0

5,687
0

5,686
0

5,601
0

5,591
0

5,580
0

M emo
11 Statutory debt limit ..................................................................

5,950

5,950

5,950

5,950

5,950

5,950

5,950

5,950

5,950

1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District of Columbia stadium bonds.

1.41

GROSS PUBLIC DEBT OF U.S. TREASURY

SOURCE. U.S. Department of the Treasury, Monthly Statement o f the Public Debt o f the
United States and Treasury Bulletin.

Types and Ownership

Billions of dollars, end of period
2000
Type and holder

1997

1998

1999

2000
Ql

Q2

Q3

Q4

1 Total gross public debt .......................................................................................

5,502.4

5,614.2

5,776.1

5,662.2

5,773.4

5,685.9

5,674.2

5,662.2

By type
Interest-bearing........................................................................................................
Marketable ..........................................................................................................
B ills ...................................................................................................................
N o te s .................................................................................................................
Bonds ...............................................................................................................
Inflation-indexed notes and bonds' ............................................................
Nonmarketable" ..................................................................................................
State and local government s e rie s ..............................................................
Foreign issues3 ...............................................................................................
Government ...............................................................................................
Public ..........................................................................................................
Savings bonds and notes ..............................................................................
Government account series4 .......................................................................
N on-interest-bearing...............................................................................................

5,494.9
3,456.8
715.4
2,106.1
587.3
33.0
2,038.1
124.1
36.2
36.2
.0
181.2
1,666.7
7.5

5,605.4
3,355.5
691.0
1,960.7
621.2
67.6
2,249.9
165.3
34.3
34.3
.0
180.3
1,840.0
8.8

5,766.1
3,281.0
737.1
1,784.5
643.7
100.7
2,485.1
165.7
31.3
31.3
.0
179.4
2,078.7
10.0

5,618.1
2,966.9
646.9
1,557.3
626.5
121.2
2,651.2
151.0
27.2
27.2
.0
176.9
2,266.1
44.2

5,763.8
3,261.2
753.3
1,732.6
653.0
107.4
2,502.6
161.9
28.8
28.8
.0
178.6
2,103.3
9.6

5,675.9
3,070.7
629.9
1,679.1
637.7
109.0
2,605.2
160.4
27.7
27.7
.0
177.7
2,209.4
10.1

5,622.1
2,992.8
616.2
1,611.3
635.3
115.0
2,629.3
153.3
25.4
25.4
.0
177.7
2,242.9
52.1

5,618.1
2,966.9
646.9
1,557.3
626.5
121.2
2,651.2
151.0
27.2
27.2
.0
176.9
2,266.1
44.2

1,655.7
451.9
3,414.6
300.3
321.5
176.6
239.3

1,826.8
471.7
3,334.0
237.3
343.2
144.5
269.3

2,060.6
477.7
3,233.9
246.3
348.6
125.3
266.8

2,085.4
501.7
3,182.8
235.1
338.9
124.0
257.2

2,190.2
505.0
2,987.4
219.7
318.6
120.9
256.4

2,235.7
511.4
2,936.2
n.a.
n.a.
n.a.

n.a.

186.5
359.4
142.5
216.9
1,241.6
589.5

186.7
374.4
157.8
216.6
1,278.7
498.8

186.5
384.5
171.3
213.2
1,268.8
407.1

185.3
385.9
174.8
211.1
1,273.9
382.5

184.6
384.5
175.5
209.0
1,248.9
253.8

184.7
n.a.
n.a.
n.a.
1,225.2
n.a.

2
3
4
5
6
7
8
9
10
11
12
13
14
15

By holder 5
16 U.S. Treasury and other federal agencies and trust funds .............................
17 Federal Reserve B a n k s ...........................................................................................
18 Private in v e sto rs......................................................................................................
19
Depository institutions ......................................................................................
20
Mutual funds ......................................................................................................
21
Insurance companies .........................................................................................
22
State and local treasuries6 ................................................................................
Individuals
23
Savings b o n d s ......................................................................................................
24
Pension funds ......................................................................................................
25
P riv a te ...............................................................................................................
26
State and L o c a l...............................................................................................
27
Foreign and international7 ................................................................................
28
Other miscellaneous investors6,8 .....................................................................

1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 1997.
2. Includes (not shown separately) securities issued to the Rural Electrification Administra­
tion, depository bonds, retirement plan bonds, and individual retirement bonds.
3. Nonmarketable series denominated in dollars, and series denominated in foreign cur­
rency 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 funds are actual
holdings; data for other groups are Treasury estimates.
6. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable
federal securities was removed from “Other miscellaneous investors” and added to “State and
local treasuries.” The data shown here have been revised accordingly.




n.a.

7. Includes nonmarketable foreign series treasury securities and treasury deposit funds.
Excludes treasury securities held under repurchase agreements in custody accounts at the
Federal Reserve Bank of New York.
8. Includes individuals, government-sponsored enterprises, brokers and dealers, bank
personal trusts and estates, corporate and noncorporate businesses, and other investors.
SOURCE. U.S. Treasury Department, data by type of security, Monthly Statement o f the
Public Debt o f the United States; data by holder, Treasury Bulletin.

A28
1.42

Domestic Financial Statistics □ March 2001
U.S. GOVERNM ENT SECURITIES DEALERS

T ransactions1

Millions of dollars, daily averages
2000

2000, week ending

Item
Sept.
O u t r i g h t T r a n s a c t io n s 2
By type o f security
1 U.S. Treasury bills .................................
Coupon securities, by maturity
2
Five years or less ...............................
3
More than five y e a r s ...........................
4 Inflation-indexed ......................................
Federal agency
5 Discount n o te s ..........................................
Coupon securities, by maturity
6
One year or less .................................
7
More than one year, but less than
or equal to five years ................
8
More than five y e a r s ...........................
9 M ortgage-backed......................................
By type o f counterparty
W ith interdealer broker
U.S. T re asu ry ........................................
Federal agency ....................................
M ortgage-backed.................................
With other
13
U.S. T re asu ry ........................................
14
Federal agency ....................................
15
M ortgage-backed.................................

10
11
12

Oct.

Nov.

Nov. 1

Nov. 8

Nov. 15

Nov. 22

Nov. 29

Dec. 6

Dec. 13

Dec. 20

Dec. 27

24,438

26,999

33,213

38,246

38,933

32,325

22,990

35,664

44,451

28,399

30,087

29,272

117,915
69,458
1,490

139,243
67,524
1,987

116,403
62,146
1,033

136,248
70.445
831

123,038
68,022
938

114,912
62,882
643

86,544
49,039
1,071

120,857
59,954
1,446

200,827
95,819
1,420

140,926
90,414
1,563

136,050
89,936
1,527

97,687
45,923
907

50,165

51,052

52,139

52,948

46,558

46,902

56,595

57,434

56,732

48,781

52,063

58,338

1,160

1,082

1,094

1,317

1,324

1,024

974

749

1,980

1,415

1,962

2,292

9,860
9,925
76,954

12,597
11,659
80,367

9,936
7,450
80,031

9,580
15,584
61,990

10,633
7,445
115,204

11,754
6,924
99,137

6,812
5,193
38,129

9,376
7,128
71,318

17,403
14,019
90,154

11,269
17,255
123,014

9,880
13,377
68,876

6,012
6,324
30,729

101,973
9,811
28,514

102,544
10,680
26,882

92,335
8,654
23,812

102,022
9,482
24,761

98,148
8,447
32,315

89,680
9,271
24,834

71,765
7,446
14,081

96,092
8,418
22,691

152,034
13,370
29,402

114,749
13,645
37,557

123,851
13,157
26,804

77,852
7,330
13,004

111,328
61,299
48,440

133,209
65,710
53,485

120,459
61,966
56,219

143,747
69,946
37,229

132,782
57,513
82,889

121,081
57,333
74,302

87,878
62,127
24,048

121,829
66,269
48,627

190,483
76,763
60,752

146,553
65,076
85,457

133,748
64,125
42,072

95,936
65,636
17,725

n.a.

n.a.

n.a.

n.a.

n.a.

F utures T ransactions 3
16
17
18
19
20
21
22
23
24

By type o f deliverable security
U.S. Treasury bills .................................
Coupon securities, by maturity
Five years or less ...............................
More than five y e a rs ...........................
Inflation-indexed ......................................
Federal agency
Discount n o te s ..........................................
Coupon securities, by maturity
One year or less .................................
More than one year, but less than
or equal to five years ................
More than five y e a rs ...........................
M ortgage-backed......................................

0

0

0

0

0

3,119
11,756
0

2,497
10,472
0

3,309
13,051
0

2,058
11,590
0

1,965
11,889
0

2,663
10,599
0

2,849
10,120
0

6,098
19,774
0

n.a.

n.a.

5,012
17,887
0

4,666
14,870
0

3,474
15,733
0

1,641
8,092
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
165
0

0
86
0

0
72
0

0
52
0

0
34
0

0
60
0

0
67
0

0
46
0

0
464
0

0
304
0

0
235
0

0
n.a.
0

O p tio n s T r a n s a c t io n s 4
By type o f underlying security
25 U.S. Treasury bills .................................
Coupon securities, by maturity
26
Five years or less ...............................
27
More than five y e a r s ...........................
28 Inflation-indexed ......................................
Federal agency
29 Discount n o te s ..........................................
Coupon securities, by maturity
30
One year or less .................................
31
More than one year, but less than
or equal to five years ................
32
More than five y e a rs ..........................
33 M ortgage-backed......................................

0

0

0

0

0

0

0

0

0

0

0

0

1,350
3,382
0

1,217
3,829
0

1,548
3,619
0

1,412
3,939
0

2,012
4,820
0

1,285
3,605
0

1,879
2,926
0

900
3,048
0

1,361
3,105
0

1,940
5,870
0

1,317
4,757
0

1,265
2,419
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

38
6
1,097

0
102
1,189

n.a.
124
1,272

0
n.a.
638

0
0
2,510

0
320
703

0
n.a.
1,353

0
104
360

0
36
1,242

0
n.a.
945

0
12
1,674

0
0
1,077

1. Transactions are market purchases and sales of securities as reported to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Monthly averages are based on the number of trading days in the month.
Transactions are assumed to be evenly distributed among the trading days of the report week.
Immediate, forward, and futures transactions are reported at principal value, which does not
include accrued interest; options transactions are reported at the face value of the underlying
securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Outright transactions include immediate and forward transactions. Immediate delivery
refers to purchases or sales of securities (other than mortgage-backed federal agency securi­
ties) 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 mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business
days or less. Stripped securities are reported at market value by maturity of coupon or corpus.




Forward transactions are agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
3. Futures transactions are standardized agreements arranged on an exchange. All futures
transactions are included regardless of time to delivery.
4. Options transactions are purchases or sales of put and call options, whether arranged on
an organized exchange or in the over-the-counter market, and include options on futures
contracts on U.S. Treasury and federal agency securities.
NOTE, “ n.a.” indicates that data are not published because of insufficient activity.

Federal Finance
1.43

U.S. GOVERNM ENT SECURITIES DEALERS

A29

Positions and Financing'

Millions of dollars
2000

2000, week ending

Item
Oct.

Sept.

Nov.

Nov. 1

Nov. 8

Nov. 15

Nov. 22

Nov. 29

Dec. 6

Dec. 13

Dec. 20

Positions2
N et Ou trig ht p o sitio n s 3
By type o f security
9,758

4,172

6,870

10,965

4,413

8,272

3,785

7,747

25,627

24,064

7,224

-2 9 ,3 9 2
-17 ,3 7 5
2,452

-3 0 ,4 7 2
-1 7 ,3 8 0
3,125

-2 8 ,5 4 5
-1 1 ,0 0 5
3,015

-3 2 ,8 9 6
-2 0 ,8 8 9
3,526

-28,111
-1 0 ,0 5 4
3,084

-2 9 ,5 4 9
-1 3 ,3 2 3
3,334

-2 8 ,2 6 5
-1 0,171
3,410

-2 8 ,2 6 5
-9 ,0 2 7
2,366

-2 4 ,1 3 6
-1 1 ,2 3 0
1,560

-2 1 ,5 5 5
-1 4 ,3 1 7
1,872

-1 6 ,7 4 6
-13,971
1,867

37,057

33,428

29,599

30,822

29,824

30,166

29,728

27,784

34,622

30,133

28,910

13,999

13,990

16,088

14,176

14,896

17,318

16,125

16,263

16,245

15,876

16,878

4,628
1,696
14,544

5,672
1,978
14,541

7,057
4,043
12,132

4,918
1,257
11,406

9,516
3,579
13,852

7,014
4,490
11,158

6,217
4,667
11,308

5,866
3,818
12,288

6,499
4,163
12,297

10,167
3,742
13,939

7,357
6,157
13,899

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

Coupon securities, by maturity

Federal agency
Coupon securities, by maturity
7

More than one year, but less than

Net F utures P o sitions 4
By type o f deliverable security
Coupon securities, by maturity
4,480
1,600
0

0

1,995
1,365
0

1,921
-2 ,7 4 5
0

3,304
1,521
0

3,902
-5 1 5
0

1,220
-1 ,4 1 4
0

2,458
-3 ,8 4 4
0

274
-5 ,7 9 7
0

-6 5 7
-2 ,8 7 9
0

-4 2 3
-3 ,9 0 1
0

20
-2 ,9 6 0
0

Federal agency
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0
-7 3 7
0

0
-1 ,2 3 2
0

0
-1 ,3 6 4
0

0
-1 ,1 7 5
0

0
-1 ,1 8 6
0

0
-1 ,3 5 6
0

0
-1 ,4 5 0
0

0
-1 ,541
0

0
-1 ,0 0 4
0

0
-7 4 0
0

0
-3 1 7
0

Coupon securities, by maturity
16

More than one year, but less than
or equal to five years ....................

N et O ptions Positions
By type o f deliverable security

0

0

0

0

0

0

0

0

0

0

0

2,489
1,242
0

1,541
771
0

-1 ,7 6 8
-2 0 3
0

949
967
0

-1,601
-1 3
0

-1 ,5 8 7
323
0

—2,132
54
0

-2 ,2 1 8
-1,201
0

-1 ,2 2 9
-1 ,2 0 1
0

-2 8 3
-4 6 7
0

98
110
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

88
33
4,328

41
208
3,895

-2 0 9
259
2,892

24
207
4,377

-1
n.a.
2,118

-3 0 4
248
1,661

-3 0 9
206
4,107

-2 6 6
306
3,658

-1 4 8
427
1,575

-5 9 7
378
2,767

-6 1 0
534
2,494

Coupon securities, by maturity
22 Inflation-indexed ..........................................
Federal agency
Coupon securities, by maturity
25

More than one year, but less than
or equal to five years ....................

27 M ortgage-backed..........................................

Financing5
Reverse repurchase agreements
28 Overnight and c o n tin u in g ...........................
29 Term ..............................................................

282,991
777,783

289,809
832,733

310,115
824,867

314,011
869,730

300,565
909,956

326,471
758,572

279,769
825,576

327,590
799,505

348,676
821,004

328,712
826,114

335,487
845,610

Securities borrowed
30 Overnight and c o n tin u in g ...........................
31 Term ..............................................................

283,528
114,413

289,467
117,80!

271,420
123,967

281,225
117,503

283,982
120,515

279,538
120,590

263,438
127,509

259,282
126,942

257,697
132,603

261,575
135,102

263,144
138,700

Securities received as pledge
32 Overnight and c o n tin u in g ...........................
33 Term ..............................................................

2,232
n.a.

2,228
n.a.

2,748
n.a.

2,214
n.a.

2,527
n.a.

2,599
n.a.

2,909
n.a.

3.001
n.a.

2,971
n.a.

2,742
n.a.

Repurchase agreements
34 Overnight and co n tin u in g ...........................
35 Term ..............................................................

738,371
707,207

729,081
772,976

724,736
796,328

737,650
818,047

743,744
860,069

757,881
717,776

642,402
848,419

744,180
759,746

786,976
769,715

776,360
778,736

766,948
803,143

Securities loaned
36 Overnight and co n tin u in g ...........................
37 Term ..............................................................

6,935
6,189

7,252
5,314

8,221
4,465

7,396
4,984

8,400
4,498

8,446
4,410

7,995
4,418

8,178
4,461

8,109
4,459

7,839
4,478

7,989
4,143

Securities pledged
38 Overnight and c o n tin u in g ...........................
39 Term ..............................................................

61,552
4,432

60,045
4,689

56,285
3,981

58,686
4,564

59,855
4,560

56,556
4,162

54,741
3,345

54,039
3,757

53,519
4,109

55,368
4,315

57,569
4,227

Collateralized loans
40 T o ta l................................................................

22,972

27,796

26,695

26,455

26,942

27,820

28,222

23,245

30,783

24,367

26,876

1. Data for positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar
days of the report week are assumed to be constant. Monthly averages are based on the
number of calendar days in the month.
2. Securities positions are reported at market value.
3. Net outright positions include immediate and forward positions. Net immediate posi­
tions include securities purchased or sold (other than mortgage-backed agency securities) that
have been delivered or are scheduled to be delivered in five business days or less and
“ when-issued” securities that settle on the issue date of offering. Net immediate positions for
mortgage-backed agency securities include securities purchased or sold that have been
delivered or are scheduled to be delivered in thirty business days or less.
Forward positions reflect agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt




n.a.
n.a.

securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
4. Futures positions reflect standardized agreements arranged on an exchange. All futures
positions are included regardless of time to delivery.
5. Overnight financing refers to agreements made on one business day that mature on the
next business day; continuing contracts are agreements that remain in effect for more than one
business day but have no specific maturity and can be terminated without advance notice by
either party; term agreements have a fixed maturity o f more than one business day. Financing
data are reported in terms of actual funds paid or received, including accrued interest.
NOTE, “n.a.” indicates that data are not published because of insufficient activity.

A30
1.44

Domestic Financial Statistics □ March 2001
FED ERAL AND FEDERALLY SPONSORED CREDIT AGENCIES

Debt Outstanding

Millions of dollars, end of period
2000
Agency

1996

1997

1998

1999
June

July

Aug.

Sept.

Oct.

1 Federal and federally sponsored agencies ..........................................

925,823

1,022,609

1,296,477

1,616,492

1,706,709

1,726,016

1,763,089

1,776,334

,,

2 Federal agencies ...........................................................................................
3
Defense Department1................................................................................
4
Export-Import Bank2-3..............................................................................
5
Federal Housing Administration4 ..........................................................
6
Government National Mortgage Association certificates of
participation5 ....................................................................................
7
Postal Service6 ...........................................................................................
8
Tennessee Valley Authority ...................................................................
9
United States Railway Association6 .....................................................

29,380
6
1,447
84

27,792
6
552
102

26,502
6
n.a.
205

26,376
6
n.a.
126

26,669
6
n.a.
185

26,094
6
n.a.
205

25,892
6
n.a.
210

25,993
6
n.a.
227

n.a.

n.a.
n.a.
27,853
n.a.

n.a.
n.a.
27,786
n.a.

n.a.
n.a.
26,496
n.a.

n.a.
n.a.
26,370
n.a.

n.a.
n.a.
26,663
n.a.

n.a.
n.a.
26,088
n.a.

n.a.
n.a.
25,886
n.a.

n.a.
n.a.
25,987
n.a.

10 Federally sponsored agencies7 ...................................................................
11
Federal Home Loan B a n k s .....................................................................
12
Federal Home Loan Mortgage C orporation........................................
13
Federal National Mortgage A sso ciatio n ..............................................
14
Farm Credit Banks8 ..................................................................................
15
Student Loan M arketing A ssociation9 ..............................................
16
Financing Corporation10 ...........................................................................
17
Farm Credit Financial Assistance Corporation" ...............................
18
Resolution Funding Corporation1 2 .......................................................

896,443
263,404
156,980
331,270
60,053
44,763
8,170
1,261
29,996

994,817
313,919
169,200
369,774
63,517
37,717
8,170
1,261
29,996

1,269,975
382,131
287,396
460,291
63,488
35,399
8,170
1,261
29,996

1,590,116
529,005
360,711
547,619
68,883
41,988
8,170
1,261
29,996

1,680,040
568,438
384,286
578,500
69,541
37,263
8,170
1,261
29,996

1,699,922
565,037
399,370
579,448
69,757
44,223
8,170
1,261
29,996

1,737,197
572,836
412,656
595,117
70,139
44,113
8,170
1,261
29,996

1,750,341
580,579
406,936
607,000
71,055
42,423
8,170
1,261
29,996

M emo
19 Federal Financing Bank debt1 3 ..............................................................

58,172

49,090

44,129

42,152

38,513

38,143

38,040

42,837

Lending to federal and federally sponsored agencies
Export-Import Bank3 ....................................................................................
Postal Service6 ...............................................................................................
Student Loan Marketing A sso ciatio n.......................................................
Tennessee Valley A uthority.........................................................................
United States Railway Association6 ..........................................................

1,431
n.a.
n.a.
n.a.
n.a.

552
n.a.
n.a.
n.a.
n.a.

Other lending14
25 Farmers Home Administration ..................................................................
26 Rural Electrification Adm inistration..........................................................
27 Other ...............................................................................................................

18,325
16,702
21,714

13,530
14,898
20,110

20
21
22
23
24

1. Consists of mortgages assumed by the Defense Department between 1957 and 1963
under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration insurance
claims. Once issued, these securities may be sold privately on the securities market.
5. Certificates of participation issued before fiscal year 1969 by the Government National
Mortgage Association acting as trustee for the Farmers Home Administration; the Department
of Health, Education, and Welfare; the Department of Housing and Urban Development; the
Small Business Administration; and the Veterans Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities; notes, bonds, and debentures. Includes
Federal Agricultural Mortgage Corporation; therefore, details do not sum to total. Some data
are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is
shown on line 17.
9. Before late 1982, the association obtained financing through the Federal Financing Bank
(FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22.




T

T

T

T

T

T

n.a.
1

n.a.
1

n.a.
1

n.a.
1

n.a.
1

n.a.
1

9,500
14,091
20,538

6,665
14,085
21,402

6,040
13,121
19,352

5,760
13,165
19,218

5,660
13,238
19,142

576,689
422,960
615,463
71,345
48,988
8,170
1,261
29,996
n.a.

>

5,540
12,989
24,308

1

1

1

1

n.a.

1

10. The Financing Corporation, established in August 1987 to recapitalize the Federal
Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January 1988 to
provide assistance to the Farm Credit System, undertook its first borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, undertook its first borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations
issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the
purpose of lending to other agencies, its debt is not included in the main portion of the table to
avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans
guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally
being small. The Farmers Home Administration entry consists exclusively of agency assets,
whereas the Rural Electrification Administration entry consists of both agency assets and
guaranteed loans.

Securities Markets and Corporate Finance A31
1.45

NEW SECURITY ISSUES

Tax-Exempt State and Local Governm ents

Millions of dollars
2000
Type of issue or issuer,
or use

1997

1998

1999
May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

1 All issues, new and refunding1..............................................

214,694

262,342

215,427

14,136

20,208

12,827

15,284

15,598

18,035

18,079

15,348

By type o f issue
2 General obligation.......................................................................
3 Revenue .........................................................................................

69,934
134,989

87,015
175,327

73,308
142,120

6,051
8,086

8,581
11,628

4,256
8,572

5,194
10,090

6,888
8,710

5,871
12,163

5,044
13,036

5,060
10,288

By type o f issuer
4 State ...............................................................................................
5 Special district or statutory au th o rity ...................................
6 Municipality, county, or township ..........................................

18,237
134,919
70,558

23,506
178,421
60,173

16,376
152,418
46,634

1,102
9,639
3,396

2,907
13,520
3,782

783
8,545
3,500

1,011
10,728
3,545

2.022
10,152
3,424

3,005
11,224
3,806

1,942
12,311
3,827

1,640
1,053
3,165

7 Issues for new c a p ita l..............................................................

135,519

160,568

161,065

12,481

16,987

11,297

12,402

13,968

16,387

14,520

13,286

31,860
13,951
12,219
27,794
6,667
35,095

36,904
19,926
21,037
n.a.
8,594
42,450

36,563
17,394
15,098
n.a.
9,099
47,896

3,662
1,778
537
n.a.
585
3,557

4,465
1,093
1,141
n.a.
1,150
5,776

3,185
1,947
353
n.a.
632
2,543

3,630
1,979
1,409
n.a.
281
3,564

3,210
1,574
1,408
n.a.
387
5,243

3,492
2,575
1,272
n.a.
730
6,558

3,446
2,124
1,973
n.a.
500
3,787

2,919
1,381
1,307
n.a.
615
4,264

8
9
10
11
12

By use o f proceeds
E d ucation ......................................................................................
Transportation .............................................................................
Utilities and c onservation..........................................................
Social welfare ..............................................................................
Industrial aid ................................................................................

1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.

1.46

N EW SECURITY ISSUES

SOURCE. Securities Data Company beginning January 1990; Investment D ealer’s
Digest before then.

U.S. Corporations

Millions of dollars
2000
Type of issue, offering,
or issuer

1997

1998

1999
Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

929,256

1,128,491

1,072,866

61,963

62,939

100,615

65,511

82,752

94,492

62,466r

95,495

2 Bonds2 ...................................................................

811,376

1,001,736

941,298

40,941

58,233

92,742

57,476

69,875

88,102

53,345

84,094

By type o f offering
3 Sold in the United States .................................
4 Sold abroad ..........................................................

708.188
103.188

923,771
77,965

818,683
122,615

36,724
4,217

45,986
12,247

75,271
17,471

40,753
16,723

56,133
13,742

73,516
14,586

47,415
5,930

76,383
7,711

M emo
5 Private placements, dom estic.............................

n.a.

228

2,694

3,391

1,038

241

376

By industry group
6 N onfinancial..........................................................
7 F in an cial................................................................

222,603
588,773

307,935
693,801

293,963
647,335

8,060
32,881

20,832
37,401

29,412
63,331

15,885
41,592

17,947
51,928

24,483
63,619

12,547
40,799

25,826
58,269

8 Stocks3 ...................................................................

173,330

205,605

217,868

21,022

4,706

7,873

8,035

12,877

6,390

9,121

11,498

By type o f offering
9 Pubiic .....................................................................
10 Private placement4 ...............................................

117,880
55,450

126,755
78,850

131,568
86,300

21,022
n.a.

4,706
n.a.

7,873
n.a.

8,035
n.a.

12,877
n.a.

6,390
n.a.

9.121
n.a.

11,498
n.a.

By industry group
11 N onfinancial..........................................................
12 F inancial................................................................

60,386
57,494

74,113
52,642

110.284
21.284

16,763
4,259

4,522
184

6,521
1,352

7,773
262

8,645
4,232

6,205
185

8,278
843

10,791
707

n.a.

n.a.

1. Figures represent gross proceeds of issues maturing in more than one year; they are the
principal amount or number of units calculated by multiplying by the offering price. Figures
exclude secondary offerings, employee stock plans, investment companies other than closedend, intracorporate transactions, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.
2. Monthly data include 144(a) offerings.
3. Monthly data cover only public offerings.
4. Data are not available.
SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve
System.




127r

5,534

A3 2 Domestic Financial Statistics □ March 2001
1.47

O PEN-END INVESTMENT COMPANIES

Net Sales and A ssets1

Millions of dollars
2000
Item

1999

2000
May

June

July

Aug.

Sept.

Oct.

Nov.r

Dec.

1 Saies of own shares2 ...................................................

1,791,894

2,279,522

172,718

181,866

166,815

179,890

159,809

169,071

143,412

170,462

2 Redemptions of own s h a re s ........................................
3 Net sales3.........................................................................

1,621,987
169,906

2,057,780
221,742

162,984
9,735

161,462
20,404

151,717
15,098

159,027
20,864

147,644
12,166

153,067
16,004

138,791
4,621

161,421
9,041

4 Assets4 ..............................................................................

5,233,191

5,121,401

5,232,319

5,458,914

5,392,308

5,745,264

5,550,176

5,442,937

4,993,008

5,121,401

5 Cash5 ................................................................................
6 O t h e r ................................................................................

219,189
5,014,002

278,726
4,842,675

260,426
4,971,892

259,241
5,199,673

258,472
5,133,836

261,967
5,483,298

280,192
5,269,984

302,682
5,140,255

300,133
4,692,875

278,726
4,842,675

1. Data include stock, hybrid, and bond mutual funds and exclude money market mutual
funds,
2. Excludes reinvestment of net income dividends and capital gains distributions and share
issue of conversions from one fund to another in the same group.
3. Excludes sales and redemptions resulting from transfers of shares into or out of money
market mutual funds within the same fund family.

1.48

4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership, which
comprises substantially all open-end investment companies registered with the Securities and
Exchange Commission. Data reflect underwritings of newly formed companies after their
initial ofiFering of securities.

CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1998
Account

1997

1998

1999

2000

1999
Q4

Ql

Q2

Q3

Q4

Ql

Q2

Q3

1 Profits with inventory valuation and
capital consumption adjustment ....................................
2 Profits before taxes ...................................................................
3 Profits-tax liab ility .....................................................................
4 Profits after ta x e s.......................................................................
5 Dividends ................................................................................
6 Undistributed profits ............................................................

833.8
792.4
237.2
555.2
335.2
220.0

815.0
758.2
244.6
513.6
351.5
162.1

856.0
823.0
255.9
567.1
370.7
196.4

803.4
742.3
239.4
502.9
356.1
146.9

852.0
797.6
247.8
549.9
361.1
188.7

836.8
804.5
250.8
553.7
367.2
186.5

842.0
819.0
254.2
564.8
373.9
190.9

893.2
870.7
270.8
599.9
380.6
219.3

936.3
920.7
286.3
634.4
387.3
247.1

963.6
942.5
292.0
650.4
393.0
257.4

970.3
945.1
290.6
654.4
400.1
254.4

7 Inventory v a lu a tio n ...................................................................
8 Capital consumption adjustment ..........................................

8.4
32.9

17.0
39.9

-9 .1
42.1

19.9
41.2

11.4
42.9

- 8 .9
41.2

-1 9 .7
42.7

- 1 9 .2
41.6

- 2 5 .0
40.6

-1 3 .6
34.7

- 4 .5
29.7

SOURCE. U.S. Department of Commerce, Survey o f Current Business.

1.51

DOMESTIC FINANCE COMPANIES

Assets and Liabilities'

Billions of dollars, end of period; not seasonally adjusted
1999
Account

1998

1999

2000

2000
Q2

Q3

Q4

Ql

Q2

Q3

Q4

A ssets
1 Accounts receivable, g r o s s " ...................................................
2
Consumer ..............................................................................
3
Business ................................................................................
4
Real estate ...........................................................................

711.7
261.8
347.5
102.3

811.5
279.8
405.2
126.5

756.5
269.2
373.7
113.5

776.3
271.0
383.0
122.3

811.5
279.8
405.2
126.5

848.7
285.4
434.6
128.8

884.4
294.1
454.1
136.2

900.1
301.9
455.7
142.4

5 LESS: Reserves for unearned income .................................
6
Reserves for losses .....................................................

56.3
13.8

53.5
13.5

53.4
13.4

54.0
13.6

53.5
13.5

54.0
14.0

57.1
14.4

58.8
14.2

7 Accounts receivable, net ........................................................
8 All other ....................................................................................

641.6
337.9

744.6
406.3

689.7
373.2

708.6
368.5

744.6
406.3

780.7
412.7

813.0
418.3

827.1
441.4

9 Total assets ..............................................................................

979.5

1,150.9

1,062.9

1,077.2

1,150.9

1,193.4

1,231.3

1,268.4

10 Bank loans ................................................................................
11 Commercial paper ...................................................................

26.3
231.5

35.1
227.9

25.1
231.0

27.0
205.3

35.1
227.9

28.5
230.2

32.5
221.3

35.4
215.6

Debt
Owed to p a re n t.........................................................................
Not elsewhere classified..........................................................
All other liabilities ...................................................................
Capital, surplus, and undivided profits ...............................

61.8
339.7
203.2
117.0

123.8
397.0
222.7
144.5

65.4
383.1
226.1
132.2

84.5
396.2
216.0
148.2

123.8
397.0
222.7
144.5

145.1
412.0
247.6
130.1

137.1
445.4
259.3
135.6

144.3
465.5
269.2
138.3

16 Total liabilities and capital .................................................

979.5

1,150.9

1,062.9

1,077.2

1,150.9

1,193.4

1,231.3

1,268.4

n.a.

n.a.

L ia bilities and C apital

12
13
14
15

1. Includes finance company subsidiaries of bank holding companies but not of retailers
and banks. Data are amounts carried on the balance sheets of finance companies; securitized
pools are not shown, as they are not on the books.




2. Before deduction for unearned income and losses. Excludes pools of securitized assets,

Securities Market and Corporate Finance A33
1.52

DOM ESTIC FIN ANCE COM PANIES

Owned and M anaged R eceivables1

Billions of dollars, amounts outstanding
2000
Type of credit

1997

1998

1999
June

July

Aug.

Sept.

Oct.'

Nov.

Seasonally adjusted

1 Total ........................................................................................................

810.5

875.8

993.9

1,076.9

1,089.1

1,094.1

1,112.1r

1,133.7

1,132.9

2
3
4

327.9
121.1
361.5

352.8
131.4
391.6

385.3
154.7
453.9

401.4
163.7
511.7

405.9
167.5
515.8

411.1
169.0
514.1

419.7
170.9
521.6r

437.3
174.0
522.3

438.9
175.9
518.0

l,106.8r

Consumer ...........................................................................................
Real estate .........................................................................................
Business .............................................................................................

Not seasonally adjusted

5 Total ........................................................................................................
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

Consumer ...........................................................................................
Motor vehicles loans ..................................................................
Motor vehicle leases ..................................................................
Revolving" ....................................................................................
Other3 .............................................................................................
Securitized assets4
Motor vehicle loans ................................................................
Motor vehicle leases ..............................................................
Revolving ..................................................................................
O t h e r ...........................................................................................
Real estate .........................................................................................
One- to four-family .....................................................................
O t h e r ...............................................................................................
Securitized real estate assets4
One- to four-family ................................................................
Other ...........................................................................................
Business .............................................................................................
Motor vehicles ..............................................................................
Retail lo a n s ................................................................................
Wholesale loans5 .....................................................................
Leases .........................................................................................
Equipment ....................................................................................
Loans .........................................................................................
Leases .........................................................................................
Other business receivables6 .......................................................
Securitized assets4
Motor vehicles .........................................................................
Retail lo a n s ...........................................................................
Wholesale loans ...................................................................
Leases ....................................................................................
Equipm ent..................................................................................
Loans .......................................................................................
Leases ....................................................................................
Other business receivables6.....................................................

818.1

884.0

1,003.2

1,082.3

1,082.2

1,087.9

1,131.7

1,134.5

330.9
87.0
96.8
38.6
34.4

356.1
103.1
93.3
32.3
33.1

388.8
114.7
98.3
33.8
33.1

403.9
126.5
103.9
33.1
30.7

408.3
129.4
104.4
33.6
31.5

412.3
130.7
105.4
33.6
32.3

421.0
130.1
104.6
35.4
31.7

437.9
131.8
104.3
37.1
31.9

440.5
127.8
104.0
37.1
32.0

44.3
10.8
.0
19.0
121.1
59.0
28.9

54.8
12.7
8.7
18.1
131.4
75.7
26.6

71.1
9.7
10.5
17.7
154.7
88.3
38.3

74.1
7.9
11.1
16.6
163.7
96.6
39.6

74.5
7.6
10.9
16.4
167.5
100.5
39.7

76.2
7.4
10.7
16.2
169.0
101.7
40.2

78.8
7.2
17.2
16.0
170.9
100.9
41.5

84.3
7.0
25.8
15.7
174.0
104.6
41.8

91.5
6.8
25.8
15.5
175.9
107.0
42.0

33.0
.2
366.1
63.5
25.6
27.7
10.2
203.9
51.5
152.3
51.1

29.0
.1
396.5
79.6
28.1
32.8
18.7
198.0
50.4
147.6
69.9

28.0
.2
459.6
87.8
33.2
34.7
19.9
221.9
52.2
169.7
95.5

27.4
.2
514.7
94.5
33.8
38.4
22.3
250.0
56.7
193.3
109.7

27.1
.2
506.4
89.4
34.1
32.9
22.3
248.6
54.8
193.9
109.4

26.8
.2
506.7
89.6
34.3
32.6
22.7
250.0
54.3
195.8
108.3

26.5
1.9
514.9r
94.1
34.8
35.5
23.7
256.7
55.8
200.9
104.9

25.7
1.9
519.8
95.9
34.7
37.5
23.7
258.5
56.1
202.4
103.7

25.0
1.9
518.2
93.3
32.3
37.3
23.8
257.6
54.7
202.9
103.2

33.0
2.4
30.5
.0
10.7
4.2
6.5
4.0

29.2
2.6
24.7
1.9
13.0
6.6
6.4
6.8

31.5
2.9
26.4
2.1
14.6
7.9
6.7
8.4

31.7
2.9
26.4
2.4
22.3
15.8
6.4
6.6

29.8
2.8
24.6
2.4
22.5
16.0
6.5
6.8

29.6
2.7
24.5
2.4
22.4
15.9
6.5
6.8

31.9r
2.4
27. l r
2.4
21.4
15.1
6.4
5.8

34.2
2.3
29.5
2.4
21.7
14.9
6.7
5.8

37.0
3.1
31.5
2.4
21.3
14.6
6.7
5.8

NOTE. This table has been revised to incorporate several changes resulting from the
benchmarking of finance company receivables to the June 1996 Survey of Finance Compa­
nies. In that benchmark survey, and in the monthly surveys that have followed, more detailed
breakdowns have been obtained for some components. In addition, previously unavailable
data on securitized real estate loans are now included in this table. The new information has
resulted in some reclassification of receivables among the three major categories (consumer,
real estate, and business) and in discontinuities in some component series between May and
June 1996.
Includes finance company subsidiaries of bank holding companies but not of retailers and
banks. Data in this table also appear in the Board’s G.20 (422) monthly statistical release. For
ordering address, see inside front cover.
1.
Owned receivables are those carried on the balance sheet of the institution. Managed
receivables are outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator. Data are shown




before deductions for unearned income and losses. Components may not sum to totals
because of rounding.
2. Excludes revolving credit reported as held by depository institutions that are subsidiar­
ies of finance companies.
3. Includes personal cash loans, mobile home loans, and loans to purchase other types of
consumer goods, such as appliances, apparel, boats, and recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
5. Credit arising from transactions between manufacturers and dealers, that is, floor plan
financing.
6. Includes loans on commercial accounts receivable, factored commercial accounts, and
receivable dealer capital; small loans used primarily for business or farm purposes; and
wholesale and lease paper for mobile homes, campers, and travel trailers.

A34
1.53

Domestic Financial Statistics □ March 2001
M O RTG AGE M ARKETS

M ortgages on New Homes

Millions of dollars except as noted
2000
Item

1998

1999

2000
June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Terms and yields in primary and secondary markets
P rimary M arkets
1
2
3
4
5

Terms'
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars) . . .
Loan-to-price ratio (percent) ......................
Maturity (years) ............................................ _
Fees and charges (percent of loan amount)'

Yield (percent per year)
6 Contract rate1 .................................................
7 Effective rate1'3 ..............................................
8 Contract rate (HUD series)4 ........................

210.7
161.7
78.7
28.8
.77

234.5
177.0
77.4
29.2
.70

238.6
178.3
76.9
29.2
.69

235.8
178.3
77.7
29.3

6.95
7.08
7.00

6.94
7.06
7.45

7.41
7.52

7.40
7.50

7.41
7.51

7.04
6.43

7.74
7.03

195.2
151.1
80.0
28.4

237.0
179.7
77.7
29.3

241.9
182.5
77.1
29.2
.70

240.2
180.4
77.2
29.2
.69

247.2
184.2
76.2
29.2
.69

250.0
187.3
76.5
29.1
.73

7.44
7.54

7.41
7.52

7.43
7.53

7.36
7.47

7.29
7.40

.66

Secondary M arkets
Yield (percent per year)
9 FHA mortgages (Section 203)5
10 GNMA securities6 ....................

Activity in secondary markets
F ederal N ational M ortgage A ssociation
Mortgage holdings (end o f period)
11 Total ...........................................................................................
12
FHA/VA in su re d ..................................................................
13
C onventional.........................................................................

414,515
33,770
380,745

523,941
55,318
468,623

610.122
61,539
548,583

552,166
59,703
492,463

561,045
60,397
500,648

568,187
60,150
508,037

574,087
59,961
514,126

586,756
60,329
526,427

598,951
60,694
538,257

610,122
61,539
548,583

14 Mortgage transactions purchased (during p e rio d ).............

188,448

195,210

154,231

12,842

15,128

13,352

11,501

18,444

17,322

17,193

Mortgage commitments (during period)
15 Issued7 .........................................................................................
16 To sell8 ......................................................................................

193,795
1,880

187,948
5,900

163,689
11,786

11,825
1,254

16,660
436

14,253
236

16,143
693

17,435
268

15,287
676

20,120
1,436

Mortgage holdings (end o f period)8
17 Total ...........................................................................................
18
FHA/VA in su re d ..................................................................
19
C onventional.........................................................................

255.010
785
254,225

324,443
1,836
322,607

385,693
3,332
382,361

350,836
2,892
347,944

354,020
2,858
351,162

357,002
2,903
354,099

361,624
3,517
358,107

365,198
3,530
361,668

372,819
3,321
369,498

385,693
3,332
382,361

Mortgage transactions (during period)
20 Purchases ..................................................................................
21 Sales ...........................................................................................

267,402
250,565

239,793
233,031

174,043
166,901

12,271
11,806

10,912
10,539

16,056
15,558

21,748
21,189

16,195
15,614

19,402
18,823

24,313
22,277

22 Mortgage commitments contracted (during period)9 .........

281,899

228,432

169,231

13,596

10,803

17,468

19,481

17,915

20,012

21,780

Federal Hom e L oan M o rtg ag e C orporation

1. Weighted averages based on sample surveys of mortgages originated by major institu­
tional lender groups for purchase of newly built homes; compiled by the Federal Housing
Finance Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and “ points” paid (by the borrower or the
seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end of ten years.
4. Average contract rate on new commitments for conventional first mortgages; from U.S.
Department of Housing and Urban Development (HUD). Based on transactions on the first
day of the subsequent month.
5. Average gross yield on thirty-year, minimum -downpayment first m ortgages insured
by the Federal Housing Adm inistration (FHA) for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month.




6. Average net yields to investors on fully modified pass-through securities backed by
mortgages and guaranteed by the Government National Mortgage Association (GNMA),
assuming prepayment in twelve years on pools of thirty-year mortgages insured by the
Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments
converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal Home Loan
Mortgage Corporation’s mortgage commitments and mortgage transactions include activity
under mortgage securities swap programs, whereas the corresponding data for FNMA
exclude swap activity.

Real Estate
1.54

A35

MORTGAGE DEBT OUTSTANDING1
Millions of dollars, end of period
1999
Type of holder and property

1996

1997

2000

1998
Q2

Q3

Q4

Ql

Q2

1 All holders ....................................................................................................

4,865,412

5,197,838

5,722,645

6,015,365

6,224,771

6,375,447

6,489,770

6,659,097

By type o f property
One- to four-family residences..................................................................
Multifamily residences ................................................................................
Nonfarm, nonresidential ..............................................................................
Farm ...............................................................................................................

3,716,055
288,579
773,643
87,134

3,967,842
301,838
837,859
90,299

4,353,048
329,813
943,278
96,506

4,559,021
348,658
1,008,048
99,638

4,690,310
359,323
1,073,743
101,395

4,786,609
373,189
1,112,686
102,962

4,862,747
381,699
1,141,577
103,748

4,982,853
392,919
1,175,641
107,685

By type o f holder
6 Major financial institutions.........................................................................
7
Commercial banks2 ..................................................................................
8
One- to four-fam ily..............................................................................
9
Multifamily ...........................................................................................
10
Nonfarm, nonresidential ....................................................................
11
Farm ......................................................................................................
12
Savings institutions3 ................................................................................
13
One- to four-fam ily.............................................................................
14
Multifamily ...........................................................................................
15
Nonfarm, nonresidential ....................................................................
Farm ......................................................................................................
16
17
Life insurance c o m p a n ie s.......................................................................
18
One- to four-fam ily..............................................................................
Multifamily ...........................................................................................
19
20
Nonfarm, nonresidential .....................................................................
21
Farm ......................................................................................................

1,981,886
1,145,389
677,603
45,451
397,452
24,883
628,335
513,712
61,570
52,723
331
208,162
6,977
30,750
160,315
10,120

2,083,881
1,245,315
745,510
49,670
423,148
26,986
631,726
520,682
59,540
51,150
354
206,840
7,187
30,402
158,779
10,472

2,194,813
1,337,217
797,492
54,116
456,574
29,035
643,957
533,918
56,821
52,801
417
213,640
6,590
31,522
164,004
11,524

2,242,431
1,361,365
790,372
60,529
479,930
30,536
656,518
544,962
55,016
56,096
443
224,548
7,292
31,800
173,495
11,961

2,321,356
1,418,819
827,291
63,964
496,246
31,320
676,346
560,622
57,282
57,983
459
226,190
7,432
31,998
174,571
12,189

2,394,923
1,495,502
879,552
67,591
516,520
31,839
668,634
549,072
59,138
59,948
475
230,787
5,934
32,818
179,048
12,987

2,456,786
1,546,816
904,581
72,431
537,131
32,673
680,745
560,046
57,759
62,447
493
229,225
5,874
32,602
177,870
12,879

2,551,751
1,614,307
948,496
75,713
556,382
33,717
701,992
578,641
59,142
63,691
518
235,452
4,826
33,669
182,514
14,444

22 Federal and related agencies .....................................................................
Government National Mortgage A ssociation......................................
23
24
One- to four-fam ily.............................................................................
Multifamily ...........................................................................................
25
26
Farmers Home Administration4 ............................................................
27
One- to four-fam ily..............................................................................
28
Multifamily ...........................................................................................
29
Nonfarm, nonresidential .....................................................................
30
Farm ......................................................................................................
31
Federal Housing and Veterans’ A dm inistrations...............................
One- to four-fam ily..............................................................................
32
33
Multifamily ...........................................................................................
34
Resolution Trust C orporation ................................................................
One- to four-fam ily..............................................................................
35
36
Multifamily ...........................................................................................
37
Nonfarm, nonresidential .....................................................................
38
Farm ......................................................................................................
39
Federal Deposit Insurance Corporation ..............................................
40
One- to four-fam ily..............................................................................
41
Multifamily ...........................................................................................
42
Nonfarm, nonresidential .....................................................................
Farm ......................................................................................................
43
44
Federal National Mortgage A ssociation ..............................................
45
One- to four-fam ily..............................................................................
Multifamily ...........................................................................................
46
47
Federal Land Banks ................................................................................
48
One- to four-fam ily..............................................................................
49
Farm ......................................................................................................
50
Federal Home Loan Mortgage C orporation........................................
51
One- to four-fam ily..............................................................................
52
Multifamily ...........................................................................................

295,192
2
2
0
41,596
17,303
11,685
6,841
5,768
6,244
3,524
2,719
0
0
0
0
0
2,431
365
413
1,653
0
168,813
155,008
13,805
29,602
1,742
0
46,504
41,758
4,746

286,194
8
8
0
41,195
17,253
11,720
7,370
4,852
3,811
1,767
2,044
0
0
0
0
0
724
109
123
492
0
161,308
149,831
11,477
30,657
1,804
0
48,454
42,629
5,825

293,613
7
7
0
40,851
16,895
11,739
7,705
4,513
3,674
1,849
1,825
0
0
0
0
0
361
54
61
245
0
157,675
147,594
10,081
32,983
1,941
0
57,085
49,106
7,979

289,519
8
8
0
40,766
16,653
11,735
7,943
4,435
3,490
1,623
1,867
0
0
0
0
0
189
28
32
129
0
155,637
145,033
10,604
33,666
1,981
0
54,282
43,574
10,708

322,572
8
8
0
73,705
16,583
11,745
41,068
4,308
3,889
2,013
1,876
0
0
0
0
0
163
24
28
111
0
153,172
142,982
10,190
34,217
2,013
0
55,695
44,010
11,685

322,352
7
7
0
73,871
16,506
11,741
41,355
4,268
3,712
1,851
1,861
0
0
0
0
0
152
23
26
103
0
151,500
141,195
10,305
34,187
2,012
0
56,676
44,321
12,355

323,145
7
7
0
72,899
16,456
11,732
40,509
4,202
3,794
1,847
1,947
0
0
0
0
0
98
15
17
67
0
150,312
139,986
10,326
34,142
2,009
0
57,009
43,384
13,625

334,715
7
7
0
72,896
16,435
11,729
40,554
4,179
3,845
1,832
2,013
0
0
0
0
0
72
11
12
49
0
155,364
144,335
11,029
34,820
2,039
0
56,972
42,892
14,080

53 Mortgage pools or trusts5 ...........................................................................
54
Government National Mortgage A ssociation......................................
One- to four-fam ily..............................................................................
55
56
Multifamily ...........................................................................................
57
Federal Home Loan Mortgage C orporation........................................
58
One- to four-fam ily..............................................................................
59
Multifamily ...........................................................................................
60
Federal National Mortgage A sso ciatio n ..............................................
One- to four-fam ily..............................................................................
61
62
Multifamily ...........................................................................................
Farmers Home Administration4 ............................................................
63
64
One- to four-fam ily..............................................................................
Multifamily ...........................................................................................
65
66
Nonfarm, nonresidential .....................................................................
67
Farm ......................................................................................................
68
Private mortgage conduits .....................................................................
69
One- to four-family6 ...........................................................................
70
Multifamily ...........................................................................................
71
Nonfarm, nonresidential .....................................................................
Farm ......................................................................................................
72

2,040,847
506,246
494,064
12,182
554,260
551,513
2,747
650,779
633,209
17,570
3
0
0
0
3
329,559
258,800
16,369
54,390
0

2,239,350
536,879
523,225
13,654
579,385
576,846
2,539
709,582
687,981
21,601
2
0
0
0
2
413,502
316,400
21,591
75,511
0

2,589,763
537,446
522,498
14,948
646,459
643,465
2,994
834,517
804,204
30,313
1
0
0
0
1
571,340
412,700
34,323
124,317
0

2,810,119
553,196
537,287
15,909
718,085
714,844
3,241
911,435
877,863
33,572
1
0
0
0
1
627,402
447,938
39,435
140,029
0

2,891,187
569,038
552,670
16,368
738,581
735,088
3,493
938,484
903,531
34,953
0
0
0
0
0
645,084
455,276
40,936
148,873
0

2,954,792
582,263
565,189
17,074
749,081
744,619
4,462
960,883
924,941
35,942
0
0
0
0
0
662,565
462,600
42,628
157,337
0

3,000,280
589,203
571,517
17,686
757,106
752,607
4,499
975,815
938,898
36,917
0
0
0
0
0
678,156
471,390
43,835
162,930
0

3,041,396
590,903
572,856
18,047
768,641
763,890
4,751
995,815
957,584
38,231
0
0
0
0
0
686,037
471,000
44,931
170,106
0

73 Individuals and others7 ................................................................................
74
One- to four-fam ily..................................................................................
Multifamily ...............................................................................................
75
76
Nonfarm, nonresidential .........................................................................
77
Farm ..........................................................................................................

547,486
360,476
68,572
100,269
18,169

588,413
376,574
71,651
121,409
18,779

644,456
413,770
73,081
137,632
19,974

673,297
428,202
74,090
150,428
20,577

689,656
439,219
74,629
154,892
20,916

703,379
446,771
77,016
158,375
21,217

709,560
449,496
78,074
160,622
21,368

731,235
467,572
79,272
162,345
22,046

2
3
4
5

1. Multifamily debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by bank trust
departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from
FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting
changes by the Farmers Home Administration.
5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by
the agency indicated.




6. Includes securitized home equity loans.
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
finance companies.
SOURCE. Based on data from various institutional and government sources. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and interpolations and
extrapolations, when required for some quarters, are estimated in part by the Federal Reserve.
Line 69 from Inside Mortgage Securities and other sources.

A36
1.55

Domestic Financial Statistics □ March 2001
CONSUMER CREDIT1
Millions of dollars, amounts outstanding, end of period
2000
Holder and type of credit

1997

1998

1999
June

July

Aug.

Sept.

Oct.

Nov.

Seasonally adjusted
1 Total .....................................................................

1,234,461

1,301,023

1,393,657

1,462,821

1,470,768

1,484,081

1,492,934

1,509,568

1,522,000

2 Revolving ............................................................
3 Nonrevolving2 ...................................................

531,163
703,297

560,504
740,519

595,610
798,047

634,652
828,170

638,406
832,363

645,121
838,961

649,297
843,637

656,666
852,902

662,800
862,200

Not seasonally adjusted
4 Total .....................................................................

1,264,103

1,331,742

1,426,151

1,454,035

1,463,292

1,486,048

1,495,627

1,513,688

1,529,800

By major holder
Commercial banks ............................................
Finance com p a n ie s............................................
Credit unions .....................................................
Savings institutions ..........................................
Nonfinancial b u sin e ss........................................
Pools of securitized assets3 ...............................

512,563
160,022
152,362
47,172
78,927
313,057

508,932
168,491
155,406
51,611
74,877
372,425

499,758
181,573
167,921
61,527
80,311
435,061

506,245
190,268
176,030
60,951
73,500
447,041

506,254
194,438
178,034
61,493
71,956
451,117

520,431
196,555
180,679
62,037
73,030
453,316

521,767
197,276
181,597
62,580
72,091
460,316

521,515
200,815
183,010
62,815
70,842
474,691

527,200
197,800
184,200
63,100
73,800
483,800

By major tvpe o f credit4
11 Revolving..............................................................
12
Commercial banks ........................................
13
Finance c o m p a n ie s ........................................
14
Credit unions...................................................
15
Savings institutions........................................
16
Nonfinancial b u sin e ss....................................
17
Pools of securitized assets3 ...........................

555,858
219,826
38,608
19,552
11,441
44,966
221,465

586,528
210,346
32,309
19,930
12,450
39,166
272,327

623,245
189,352
33,814
20,641
15,838
42,783
320,817

627.909
194.793
33,063
20.172
15.455
37,098
327,328

630,633
194,496
33,565
20,476
15,745
36,078
330,273

641,298
204,016
33,558
20,796
16,036
36,669
330,223

645,820
202,362
35,405
20,783
16,327
35,817
335,126

654,678
201,874
37,147
20,804
16,505
34,484
343,833

664,300
206,100
37,051
21,246
16,684
36,430
345,946

18 Nonrevolving........................................................
19
Commercial banks ........................................
20
Finance c o m p a n ie s ........................................
21
Credit unions...................................................
22
Savings institutions........................................
23
Nonfinancial b u sin e ss....................................
24
Pools of securitized assets3 ...........................

708,245
292,737
121,414
132,810
35,731
33,961
91,592

745,214
298,586
136,182
135,476
39,161
35,711
100,098

802,906
310,406
147,759
147,280
45,689
37,528
114,244

826,126
311,452
157,205
155,858
45,496
36,402
119,713

832,659
311,758
160,873
157,558
45,748
35,878
120,844

844,750
316,415
162,997
159,883
46,001
36,361
123,093

849,807
319,405
161,871
160,814
46,253
36,274
125,190

859,127
319,548
163,697
162,359
46,310
36,355
130,858

865,404
320,751
159,801
163,176
46,367
37,375
137,934

5
6
7
8
9
10

1. The Board’s series on amounts of credit covers most short- and intermediate-term credit
extended to individuals, excluding loans secured by real estate. Data in this table also appear
in the Board’s G.19 (421) monthly statistical release. For ordering address, see inside front
cover.
2. Comprises motor vehicle loans, mobile home loans, and all other loans that are not
included in revolving credit, such as loans for education, boats, trailers, or vacations. These
loans may be secured or unsecured.

1.56

3. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
4. Totals include estimates for certain holders for which only consumer credit totals are
available.

TERMS OF CONSUMER CREDIT1
Percent per year except as noted
2000
Item

1997

1998

1999
May

June

July

Aug.

Sept.

Oct.

Nov.

I n t e r e s t R a te s
Commercial banks2
1 48-month new car ............................................
2 24-month personal ............................................

9.02
13.90

8.72
13.74

8.44
13.39

9.21
13.88

n.a.
n.a.

n.a.
n.a.

9.62
13.85

n.a.
n.a.

n.a.
n.a.

9.63
14.12

Credit card plan
3 All accounts .......................................................
4 Accounts assessed interest .............................

15.77
15.57

15.71
15.59

15.21
14.81

15.39
14.74

n.a.
n.a.

n.a.
n.a.

15.98
15.35

n.a.
n.a.

n.a.
n.a.

15.99
15.23

Auto finance companies
5 New car ..............................................................
6 Used car ..............................................................

7.12
13.27

6.30
12.64

6.66
12.60

6.51
13.47

6.40
13.58

6.55
13.64

7.46
13.70

7.16
13.91

4.74
13.87

5.44
13.53

Maturity (months)
7 New car ..............................................................
8 Used car ..............................................................

54.1
51.0

52.1
53.5

52.7
55.9

53.5
57.1

55.6
57.3

55.6
57.2

55.7
57.2

55.9
57.0

57.6
57.0

57.3
56.8

Loan-to-value ratio
9 New car ..............................................................
10 Used car ..............................................................

92
99

92
99

92
99

93
99

92
99

92
100

92
100

91
100

93
100

93
100

Amount financed (dollars)
11 New car ..............................................................
12 Used car ..............................................................

18,077
12,281

19,083
12,691

19,880
13,642

20,621
14,132

20,349
14,245

20,406
14,269

20,664
14,166

21,010
13,950

22,069
13,978

22,443
14,325

O t h e r T e rm s3

1. The Board’s series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board’s. G.19 (421) monthly
statistical release. For ordering address, see inside front cover.




2. Data are available for only the second month of each quarter,
3. At auto finance companies,

Flow of Funds A37
1.57

FUNDS RAISED IN U.S. CREDIT MARKETS1
B illio n s o f d o lla rs; q u a rte rly d a ta a t s e a so n a lly a d ju s te d a n n u a l rate s
1999
Transaction category or sector

1995

1996

1997

1998

2000

1999
Ql

Q2

Q3

Q4

Ql

Q2

Q3

Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors .. .

711.3

731.4

804.3

1,042.9

1,120.4

1,277.7

938.8

1,170.1

1,094.8

940.7

958.3

758.5

By sector and instrument
2 Federal governm ent.....................................................................
3
Treasury securities ..................................................................
4
Budget agency securities and mortgages .............................

144.4
142.9
1.5

145.0
146.6
- 1 .6

23.1
23.2
- .1

-5 2 .6
-5 4 .6
2.0

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

-8 3 .4
-8 1 .9
- 1 .5

-9 8 .5
-9 9 .1
.6

- 7 1 .4
-7 1 .5
.0

-3 1 .5
-3 1 .5
.0

-2 1 5 .5
-2 1 3 .5
-2 .1

-4 1 4 .0
-4 1 5 .8
1.8

- 2 1 9 .0
- 2 1 6 .6
- 2 .4

5 N onfederal....................................................................................

566.9

586.3

781.2

1,095.5

1,191.6

1,361.2

1,037.3

1,241.6

1,126.3

1,156.3

1,372.3

977.5

6
7
8
9
10
11
12
13
14
15
16

By instrument
Commercial paper ..................................................................
Municipal securities and lo a n s ..............................................
Corporate b o n d s .......................................................................
Bank loans n.e.c.........................................................................
Other loans and advances.......................................................
Mortgages ................................................................................
H o m e ....................................................................................
Multifamily residential.......................................................
Commercial .........................................................................
F a rm ......................................................................................
Consumer c re d it.......................................................................

18.1
- 4 8 .2
91.1
103.7
67.2
196.0
180.7
5.8
7.9
1.6
138.9

- .9
2.6
116.3
70.5
33.5
275.7
242.5
9.4
21.3
2.6
88.8

13.7
71.4
150.5
106.5
69.1
317.5
252.3
8.3
53.7
3.2
52.5

24.4
96.8
218.7
108.2
74.3
505.5
386.9
20.3
92.0
6.2
67.6

37.4
68.2
229.9
82.7
71.2
607.8
432.3
40.2
129.9
5.5
94.4

58.3
92.1
274.0
86.0
148.0
572.2
411.2
35.5
122.0
3.6
130.5

- 2 .6
56.8
287.6
24.0
2.3
607.8
440.1
33.1
125.6
9.0
61.4

49.8
71.3
202.8
112.3
79.2
650.0
479.4
44.2
119.4
7.0
76.2

44.0
52.5
155.2
108.6
55.4
601.1
398.3
47.9
152.4
2.5
109.5

36.2
8.9
186.2
131.9
162.1
488.9
343.9
32.3
105.8
6.9
142.0

116.9
34.0
153.8
163.1
104.3
665.7
496.6
43.9
116.3
8.9
134.6

62.5
29.8
184.4
32.0
-1 7 .3
565.7
443.4
23.6
90.8
7.9
120.4

17
18
19
20
21
22

By borrowing sector
Household ................................................................................
Nonfinancial business..............................................................
Corporate ..............................................................................
Nonfarm noncorporate .......................................................
F a rm ......................................................................................
State and local government ...................................................

363.2
255.1
228.0
24.3
2.9
- 5 1 .5

358.1
235.0
148.8
81.4
4.8
- 6 .8

345.8
379.3
266.1
107.0
6.2
56.1

488.1
527.1
416.3
103.2
7.7
80.3

548.1
591.2
480.3
105.7
5.2
52.3

562.7
718.8
625.2
88.6
4.9
79.8

526.4
467.2
371.6
93.9
1.7
43.6

589.5
599.6
468.2
122.9
8.5
52.5

513.6
579.1
456.1
117.4
5.6
33.6

534.7
617.8
500.5
102.5
14.7
3.8

650.4
701.1
581.4
111.4
8.3
20.8

564.8
387.5
292.7
87.2
7.6
25.2

23 Foreign net borrowing in United S ta te s ...................................
24
Commercial paper ..................................................................
25
B o n d s.........................................................................................
26
Bank loans n.e.c.........................................................................
27
Other loans and advances.......................................................

78.5
13.5
57.1
8.5
- .5

88.4
11.3
67.0
9.1
1.0

71.8
3.7
61.4
8.5
- 1 .8

43.3
7.8
34.8
6.7
- 6 .0

25.3
16.3
14.2
.5
-5 .7

30.7
18.0
15.4
.9
-3 .5

-2 4 .5
-2 7 .5
.2
5.6
- 2 .8

77.3
41.1
44.0
- 6 .6
-1 .1

17.6
33.6
- 2 .7
2.3
- 1 5 .5

116.9
56.7
45.7
15.4
- .9

-1 0 .9
10.9
-2 9 .6
5.7
2.0

61.6
5.9
36.0
11.8
7.8

28 Total domestic plus foreign .....................................................

789.8

819.8

876.1

1,086.2

1,145.7

1,308.5

914.3

1,247.5

1,112.4

1,057.6

947.4

820.1

Financial sectors
29 Total net borrowing by financial sectors .............................

453.9

545.8

653.7

1,073.9

1,087.9

1,228.8

995.3

1,064.2

1,063.4

618.3

817.0

715.4

By instrument
Federal government-related .......................................................
Government-sponsored enterprise securities........................
Mortgage pool securities .......................................................
Loans from U.S. governm ent.................................................

204.1
105.9
98.2
.0

231.5
90.4
141.1
.0

212.8
98.4
114.5
.0

470.9
278.3
192.6
.0

592.0
318.2
273.8
.0

589.5
193.0
396.6
.0

576.6
304.7
271.9
.0

651.6
407.1
244.5
.0

550.3
367.9
182.4
.0

249.2
104.9
144.3
.0

370.4
248.9
121.6
.0

504.4
279.3
225.1
.0

34 Private ...................... ....................................................................
35
Open market p a p e r..................................................................
36
Corporate b o n d s .......................................................................
37
Bank loans n.e.c.........................................................................
38
Other loans and advances.......................................................
39
Mortgages ................................................................................

249.8
42.7
195.9
2.5
3.4
5.3

314.4
92.2
173.8
12.6
27.9
7.9

440.9
166.7
210.5
13.2
35.6
14.9

603.0
161.0
296.9
30.1
90.2
24.8

495.9
176.2
221.8
-1 4 .3
107.1
5.1

639.2
78.7
473.8
-6 .7
73.3
20.1

418.8
57.3
254.8
11.0
107.9
- 1 2 .3

412.6
89.9
179.5
- 5 .9
139.8
9.4

513.0
479.0
-2 1 .0
-5 5 .6
107.5
3.2

369.2
130.9
166.5
.3
64.4
7.0

446.6
77.4
230.7
5.4
123.1
10.0

211.0
65.2
177.2
- .7
-3 6 .7
6.0

By borrowing sector
Commercial banking ..................................................................
Savings institutions .....................................................................
Credit unions ................................................................................
Life insurance com panies............................................................
Government-sponsored enterprises............................................
Federally related mortgage p o o ls ..............................................
Issuers of asset-backed securities (ABSs) ...............................
Finance com panies.......................................................................
Mortgage companies ..................................................................
Real estate investment trusts (REITs) .....................................
Brokers and dealers .....................................................................
Funding corporations ..................................................................

22.5
2.6
- .1
- .1
105.9
98.2
142.4
50.2
- 2 .2
4.5
- 5 .0
34.9

13.0
25.5
.1
1.1
90.4
141.1
150.8
45.9
4.1
11.9
- 2 .0
64.1

46.1
19.7
.1
.2
98.4
114.5
202.2
48.7
- 4 .6
39.6
8.1
80.7

72.9
52.2
.6
.7
278.3
192.6
321.4
43.0
1.6
62.7
7.2
40.7

67.2
48.0
2.2
.7
318.2
273.8
234.0
62.4
.2
6.3
-1 7 .2
92.2

46.1
75.2
1.5
3.3
193.0
396.6
289.7
77.0
- 4 .6
25.6
-3 1 .1
156.5

61.5
59.2
1.4
3.0
304.7
271.9
301.5
90.5
5.1
- 1 9 .7
-1 7 .4
-6 6 .2

107.0
51.9
2.8
1.1
407.1
244.5
220.5
-1 7 .2
-6 .1
7.9
16.9
27.9

54.1
5.8
3.3
- 4 .4
367.9
182.4
124.2
99.2
6.2
11.3
-3 7 .3
250.6

72.4
40.6
- 2 .9
- .7
104.9
144.3
166.0
52.3
- 3 .0
11.5
44.4
-1 1 .4

113.2
59.1
.9
-1 .1
248.9
121.6
154.8
103.9
2.7
9.8
- .7
4.0

17.4
-1 7 .2
1.1
- .3
279.3
225.1
136.8
96.9
- .3
-2.4
25.2
-4 6 .2

30
31
32
33

40
41
42
43
44
45
46
47
48
49
50
51




A3 8 Domestic Financial Statistics □ March 2001
1.57

FUNDS RAISED IN U.S. CREDIT MARKETS'— Continued
B illio n s o f d o lla rs; q u a rte rly d a ta at s e a so n a lly a d ju s te d a n n u a l rate s

1999
Transaction category or sector

1995

1996

1997

1998

2000

1999
Ql

Q2

Q3

Q4

Ql

Q2

Q3

All sectors
52 Total net borrowing, all sectors ..........................................
53
54
55
56
57
58
59
60

Open market p a p e r .....................................................................
U.S. government securities.......................................................
Municipal securities ..................................................................
Corporate and foreign bonds ...................................................
Bank loans n.e.c...........................................................................
Other loans and advances .......................................................
M o rtgages....................................................................................
Consumer c r e d i t .........................................................................

1,243.8

1,365.6

1,529.8

2,160.1

2,233.6

2,537.2

1,909.6

2,311.7

2,175.8

1,676.0

1,764.4

1,535.5

74.3
348.5
- 4 8 .2
344.1
114.7
70.1
201.3
138.9

102.6
376.5
2.6
357.0
92.1
62.5
283.6
88.8

184.1
235.9
71.4
422.4
128.2
102.8
332.4
52.5

193.1
418.3
96.8
550.4
145.0
158.5
530.3
67.6

229.9
520.8
68.2
465.9
68.9
172.6
612.9
94.4

155.1
506.1
92.1
763.1
80.1
217.8
592.4
130.5

27.2
478.1
56.8
542.6
40.6
107.5
595.6
61.4

180.7
580.1
71.3
426.3
99.8
217.9
659.4
76.2

556.6
518.9
52.5
131.5
55.2
147.3
604.3
109.5

223.7
33.6
8.9
398.4
147.7
225.7
496.0
142.0

205.1
-4 3 .5
34.0
355.0
174.2
229.4
675.6
134.6

133.6
285.4
29.8
397.7
43.1
-4 6 .2
571.7
120.4

Funds raised through mutual funds and corporate equities
61 Total net issues .........................................................................

131.5

231.9

181.2

100.0

156.5

154.2

178.5

120.4

172.8

409.3

115.0

150.0

62 Corporate equities .....................................................................
63
Nonfinancial corporations ...................................................
64
Foreign shares purchased by U.S. residents ....................
65
Financial corporations ..........................................................
66 Mutual fund s h a re s .....................................................................

- 1 6 .0
-5 8 .3
50.4
-8 .1
147.4

- 5 .7
-6 9 .5
82.8
- 1 9 .0
237.6

-8 3 .9
-1 1 4 .4
57.6
-2 7 .1
265.1

-1 7 4 .6
-2 6 7 .0
101.2
- 8 .9
274.6

-3 1 .8
-1 4 3 .5
114.4
- 2 .7
188.3

-8 6 .4
-5 2 .1
-1 9 .8
-1 4 .5
240.6

- 3 3 .9
-3 3 8 .4
284.4
20.2
212.4

- 7 .0
-1 2 8 .4
121.7
- .3
127.5

.0
-5 5 .0
71.3
-1 6 .3
172.8

103.2
60.8
63.3
-2 0 .8
306.1

-1 2 2 .6
-2 4 8 .8
135.0
- 8 .8
237.6

-1 1 1 .5
-8 7 .6
13.0
-3 6 .9
261.5

1. Data in this table also appear in the Board’s Z.l (780) quarterly statistical release, tables
F.2 through F.4. For ordering address, see inside front cover.




Flow of Funds
1.58

A39

SUMMARY OF FINANCIAL TRANSACTIONS1
B illio n s o f d o lla rs e x c e p t as n o te d ; q u a rte rly d a ta at s e a s o n a lly a d ju s te d a n n u a l rate s

1999
Transaction category or sector

1995

1996

1997

1998

2000

1999
Ql

Q2

Q3

Q4

Ql

Q2

Q3

NET LENDING IN CREDIT MARKETS2
1 Total net lending in credit markets ....................................

1,243.8

1,365.6

1,529.8

2,160.1

2,233.6

2,537.2

1,909.6

2,311.7

2,175.8

1,676.0

1,764.4

1,535.5

-6 1 .3
34.1
- 8 .8
4.7
-9 1 .4
- .2
273.9
1,031.4
12.7
265.9
186.5
75.4
- .3
4.2
- 7 .6
16.2
- 8 .3
100.0
21.5
20.2
33.6
86.5
52.5
10.5
86.7
98.2
120.6
49.9
- 3 .4
1.4
90.1
-1 5 .7

80.5
128.7
- 1 0 .2
-4 .3
-3 3 .7
- 7 .4
414.4
878.1
12.3
187.5
119.6
63.3
3.9
.7
19.9
25.5
- 7 .7
69.6
22.5
- 5 .8
37.3
88.8
48.9
4.7
84.2
141.1
120.5
18.4
8.2
4.4
- 1 5 .7
13.6

17.1
31.8
-1 2 .7
-2 .1
.1
5.1
311.3
1,196.3
38.3
324.3
274.9
40.2
5.4
3.7
- 4 .7
16.8
-2 5 .0
104.8
25.2
19.5
63.8
87.5
80.9
- 2 .9
94.3
114.5
163.8
21.9
-9 .1
20.2
14.9
47.4

131.8
-1 6 .7
14.0
.1
134.5
13.5
254.2
1,760.6
21.1
305.2
312.0
- 1 1 .9
- .9
6.0
36.3
19.0
- 1 2 .8
76.9
20.4
57.8
71.5
244.0
124.8
4.5
261.7
192.6
281.7
51.9
3.2
-5 .1
6.8
- 1 .0

256.2
187.0
24.3
1.5
43.4
5.8
210.6
1,761.0
25.7
308.2
317.6
-2 0 .1
6.2
4.4
68.7
27.5
27.8
53.5
- 4 .2
57.5
49.9
182.0
47.2
3.1
235.6
273.8
215.8
94.9
.3
- 2 .6
-3 0 .8
127.1

472.8
270.5
67.0
2.8
132.5
17.0
256.9
1,790.6
64.5
68.1
131.5
-5 3 .1
- 6 .0
- 4 .4
111.0
30.9
27.8
78.4
-1 9 .7
57.5
76.0
215.7
97.4
3.1
189.1
396.6
272.1
85.3
-9 .1
1.7
34.6
9.5

328.4
247.7
- 1 .4
1.2
81.0
6.7
61.6
1,512.8
59.8
166.6
259.4
-1 0 2 .5
.4
9.2
85.3
32.7
27.8
68.2
26.7
86.6
25.1
- 6 7 .0
117.2
3.1
251.5
271.9
284.8
88.1
10.2
- 2 .2
-1 1 9 .7
96.2

230.0
221.8
49.8
.8
-4 2 .4
11.2
385.3
1,685.2
20.6
449.4
421.9
33.2
-1 2 .4
6.6
58.1
27.5
27.8
36.8
- 1 4 .4
32.0
40.0
224.8
-1 3 .0
3.1
280.7
244.5
212.0
91.7
-1 2 .1
- 2 .7
-2 2 .2
.6

- 6 .4
8.1
- 1 8 .3
1.4
2.4
-1 1 .8
138.7
2,055.3
-4 2 .2
548.7
457.7
42.0
42.6
6.3
20.2
18.8
27.8
30.7
- 9 .4
54.0
58.2
354.5
- 1 2 .7
3.1
221.0
182.4
94.4
114.4
12.3
- 7 .0
- 1 5 .9
401.9

-1 4 3 .9
-2 39.1
90.4
2.6
2.3
6.2
334.9
1.478.7
103.4
377.1
409.2
4.8
-4 2 .2
5.4
50.2
35.6
21.9
57.2
-1 4 .0
46.1
55.3
208.8
-7 7 .8
3.1
138.2
144.3
145.3
132.9
- 6 .0
-1 6 .3
106.9
-3 3 .5

137.1
88.6
4.3
2.8
41.4
7.8
185.6
1,433.9
- 3 .9
484.6
505.6
-2 9 .9
3.5
5.4
73.0
36.6
16.8
52.0
-1 8 .1
22.8
20.7
-1 5 6 .2
63.7
3.1
229.7
121.6
120.3
138.9
5.5
- 2 .5
38.0
187.5

-3 2 3 .2
-2 9 9 .2
- 9 .0
3.8
- 1 9 .0
15.6
199.4
1,643.8
27.3
370.2
333.1
31.5
- 6 .7
12.3
56.5
41.8
20.6
51.4
8.7
55.5
35.4
244.9
56.5
3.1
208.3
225.1
101.6
81.4
- .5
- 3 .6
183.5
-124.1

34 Net flows through credit m a rk ets........................................

1,243.8

1,365.6

1,529.8

2,160.1

2,233.6

2,537.2

1,909.6

2,311.7

2,175.8

1,676.0

1,764.4

1,535.5

Other financial sources
Official foreign e x c h a n g e ..........................................................
Special drawing rights certificates..........................................
Treasury c u rre n c y .......................................................................
Foreign deposits .........................................................................
Net interbank transactions ........................................................
Checkable deposits and currency ..........................................
Small time and savings deposits ............................................
Large time deposits ...................................................................
Money market fund shares .....................................................
Security repurchase agreem ents...............................................
Corporate equities .....................................................................
Mutual fund s h a re s .....................................................................
Trade payables ............................................................................
Security credit ............................................................................
Life insurance reserves ............................................................
Pension fund reserves ..............................................................
Taxes p a y a b le ..............................................................................
Investment in bank personal trusts ........................................
Noncorporate proprietors’ e q u ity ............................................
M iscellaneous..............................................................................

8.8
2.2
.7
35.3
10.0
-1 2 .8
96.6
65.6
141.2
110.5
-1 6 .0
147.4
128.9
26.7
45.8
171.0
6.2
6.4
34.6
503.8

- 6 .3
- .5
- .6
85.9
-5 1 .6
15.7
97.2
114.0
145.4
41.4
-5 .7
237.6
114.1
52.4
44.5
163.0
16.2
- 5 .3
- 3 .4
537.4

.7
- .5
- .7
108.9
-1 9 .7
41.2
97.1
122.5
155.9
120.9
-8 3 .9
265.1
131.2
111.0
59.3
278.8
15.7
-4 9 .9
-4 6 .0
512.5

6.6
.0
- .8
2.0
- 3 2 .3
47.4
152.4
92.1
287.2
91.3
-1 7 4 .6
274.6
27.0
103.3
48.0
248.7
12.0
-4 2 .5
-4 1 .4
844.4

- 8 .7
- 3 .0
- 1 .5
86.5
17.6
151.4
44.7
130.6
249.1
171.7
-3 1 .8
188.3
184.7
93.5
50.8
253.7
16.0
- 7 .1
- 7 .6
741.2

- 1 4 .0
- 4 .0
.0
113.7
48.3
63.6
- 7 4 .8
18.0
221.3
258.0
- 8 6 .4
240.6
121.7
-6 2 .2
55.4
204.5
-1 .8
- 7 .2
-8 .3
406.7

- 5 .4
.0
-2 .1
110.1
93.4
37.5
106.6
42.4
115.3
-2 6 .1
-3 3 .9
212.4
225.3
139.7
42.1
248.8
47.3
-7 .1
21.4
1,454.9

- 8 .5
- 4 .0
-4 .1
69.4
-3 0 .8
139.3
119.1
102.7
174.3
135.9
- 7 .0
127.5
231.5
18.9
48.1
266.7
.1
- 7 .2
- 5 6 .0
507.0

- 7 .0
- 4 .0
.0
52.7
-4 0 .7
365.2
28.0
359.4
485.5
319.0
.0
172.8
160.1
277.8
57.6
294.6
18.2
- 6 .9
12.3
596.3

1.5
.0
- 2 .2
258.5
-7 1 .1
-2 1 9 .1
104.3
149.2
241.0
276.1
103.2
306.1
244.3
566.3
49.8
266.1
28.2
- 2 .9
-1 5 .5
870.3

-1 0 .2
- 8 .0
- 2 .3
-1 .1
177.7
- 6 5 .0
130.3
108.4
48.2
130.4
-1 2 2 .6
237.6
114.7
-9 9 .8
59.7
280.7
22.9
- 7 .6
- 2 .9
1,120.2

- .9
- 4 .0
- 4 .2
51.4
-6 1 .8
49.0
235.7
145.3
241.9
240.5
-1 1 1 .5
261.5
160.2
58.9
47.0
228.1
.7
- 3 .6
28.9
1,242.4

55 Total financial sources ............................................................

2,756.6

2,957.0

3,350.0

4,105.4

4,553.5

4,030.3

4,732.2

4,134.6

5,316.7

4,830.2

3,875.7

4,341.1

Liabilities not identified as assets ( —)
Treasury curre n c y .......................................................................
Foreign deposits .........................................................................
Net interbank liabilities ............................................................
Security repurchase agreem ents...............................................
Taxes p a y a b le ..............................................................................
M iscellaneous..............................................................................

- .3
25.1
-3 .1
25.7
21.1
-1 6 6 .5

- 1 .6
59.6
- 3 .3
4.1
23.1
-7 6 .4

- 1 .4
107.4
-1 9 .9
64.3
28.0
-69.1

- 1 .4
- 6 .4
3.4
61.4
13.9
-4 6 .1

- 3 .3
66.5
3.5
32.1
3.5
-3 1 0 .3

- 1 .5
49.3
49.7
213.5
- 8 .8
-5 2 2 .5

- 3 .5
96.8
- 4 .8
54.3
25.0
-1 3 1 .8

-5 .9
27.4
-7 .0
77.8
2.7
-4 5 4 .8

- 2 .2
92.5
- 2 3 .7
-2 1 7 .4
- 5 .1
-1 32.1

-6 .1
189.4
24.4
553.2
13.4
-3 4 2 .9

- 6 .2
- 6 2 .6
- 4 .3
5.4
- 1 .3
-1 9 6 .1

- 6 .7
21.0
- 1 8 .8
128.8
- 1 0 .0
- 8 3 .9

Floats not included in assets ( —)
62 Federal government checkable deposits ...............................
63 Other checkable deposits ..........................................................
64 Trade credit ................................................................................

- 6 .0
- 3 .8
15.6

.5
- 4 .0
-2 1 .2

- 2 .7
- 3 .9
- 2 9 .4

2.6
-3 .1
-4 2 .1

- 7 .4
- .8
44.1

-2 .1
-2 .1
45.6

- 2 7 .0
- .9
-6 3 .7

8.6
- .3
75.3

- 9 .2
.0
119.3

28.7
.6
24.5

- 3 .4
1.5
-7 4 .8

- 2 .7
1.9
- 6 8 .6

65 Total identified to sectors as assets ...................................

2,849.0

2,976.4

3,276.5

4,123.3

4,725.6

4,209.1

4,787.8

4,410.7

5,494.7

4,345.0

4,217.6

4,380.2

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

Domestic nonfederal nonfinancial s e c to rs .............................
H ousehold................................................................................
Nonfinancial corporate business ........................................
Nonfarm noncorporate business ........................................
State and local governments ...............................................
Federal government ...................................................................
Rest of the world .......................................................................
Financial s e c to rs .........................................................................
Monetary a u th o rity................................................................
Commercial banking ............................................................
U.S.-chartered b a n k s ..........................................................
Foreign banking offices in United States ....................
Bank holding companies .................................................
Banks in U.S.-affiliated a r e a s ..........................................
Savings institutions ..............................................................
Credit unions .........................................................................
Bank personal trusts and estates ........................................
Life insurance companies ...................................................
Other insurance companies .................................................
Private pension f u n d s ............................................................
State and local government retirement funds ........................
Money market mutual funds ...............................................
Mutual funds .........................................................................
Closed-end funds ...................................................................
Government-sponsored enterprises ....................................
Federally related mortgage pools ......................................
Asset-backed securities issuers (A B S s).............................
Finance c o m p a n ie s................................................................
Mortgage companies ............................................................
Real estate investment trusts (R E IT s ) ...............................
Brokers and dealers ..............................................................
Funding corporations ............................................................
R elation o f L iabilities
to F in an cia l A ssets

35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54

56
57
58
59
60
61

1. Data in this table also appear in the Board’s Z. 1 (780) quarterly statistical release, tables
E l and F.5. For ordering address, see inside front cover.




2. Excludes corporate equities and mutual fund shares.

A40
1.59

Domestic Financial Statistics □ March 2001
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1
B illio n s o f d o lla rs, e n d o f p e rio d

1999
Transaction category or sector

1996

1997

1998

2000

1999
Q2

Ql

Q3

Q4

Ql

Q2

Q3

Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors ....................

14,444.2

15,247.0

16,289.9

17,445.0

16,605.4

16,784.8

17,105.1

17,445.0

17,677.8

17,853.8

18,054.1

By sector and instrument
2 Federal government .................................................
3
Treasury securities ...............................................
4
Budget agency securities and m o rtg a g es.........

3,781.8
3,755.1
26.6

3,804.9
3,778.3
26.5

3,752.2
3,723.7
28.5

3,681.0
3,652.8
28.3

3,759.7
3,731.6
28.1

3,651.7
3,623.4
28.3

3,632.7
3,604.5
28.3

3,681.0
3,652.8
28.3

3,653.5
3,625.8
27.8

3,464.0
3,435.7
28.2

3,410.3
3,382.7
27.6

5 N onfederal...................................................................

10,662.5

11,442.1

12,537.7

13,763.9

12,845.7

13,133.1

13,472.4

13,763.9

14,024.3

14,389.9

14,643.8

6
7
8
9
10
11
12
13
14
15
16

By instrument
Commercial p a p e r .................................................
Municipal securities and l o a n s ...........................
Corporate bonds ...................................................
Bank loans n.e.c......................................................
Other loans and a d v a n ce s....................................
Mortgages ..............................................................
H o m e ...................................................................
Multifamily residential ....................................
C om m ercial........................................................
Farm ...................................................................
Consumer credit ...................................................

156.4
1,296.0
1,460.4
934.1
770.4
4,833.6
3,719.2
278.6
748.7
87.1
1,211.6

168.6
1,367.5
1,610.9
1,040.5
839.5
5,151.1
3,971.5
286.9
802.3
90.3
1,264.1

193.0
1,464.3
1,829.6
1,148.8
913.8
5,656.6
4,358.4
307.3
894.4
96.5
1,331.7

230.3
1,532.5
2,059.5
1,231.5
985.3
6,298.7
4,790.7
347.7
1,058.4
102.0
1,426.2

223.9
1,491.0
1,898.1
1,165.2
957.4
5,790.9
4,451.1
316.4
926.1
97.4
1,319.3

232.4
1,510.0
1,970.0
1,178.5
956.0
5,945.9
4,564.1
324.6
957.5
99.6
1,340.4

239.3
1,518.6
2,020.7
1,202.9
969.8
6,151.0
4,693.6
335.7
1,020.3
101.4
1,370.1

230.3
1,532.5
2,059.5
1,231.5
985.3
6,298.7
4,790.7
347.7
1,058.4
102.0
1,426.2

260.8
1,539.2
2,106.0
1,259.1
1,032.4
6,410.8
4,866.5
355.7
1,084.8
103.7
1,416.0

296.8
1,551.6
2,144.5
1,307.2
1,056.2
6,579.6
4,993.0
366.7
1,113.9
106.0
1,454.0

307.0
1,550.3
2,190.6
1,311.7
1,057.1
6,731.6
5,114.4
372.6
1,136.6
107.9
1,495.6

17
18
19
20
21
22

By borrowing sector
Household ..............................................................
Nonfinancial business ..........................................
C orporate ............................................................
Nonfarm noncorporate ....................................
Farm ...................................................................
State and local government ...............................

5,222.7
4,376.4
3,095.6
1,130.9
149.9
1.063.4

5,568.8
4,753.9
3,359.8
1,237.9
156.1
1,119.5

6,056.9
5,281.0
3,776.1
1,341.1
163.8
1,199.8

6,605.2
5,906.6
4,290.7
1,446.8
169.0
1,252.1

6,138.8
5,483.8
3,957.9
1,363.5
162.4
1,223.2

6,282.3
5,612.6
4,059.5
1,387.0
166.1
1,238.2

6,448.5
5,781.5
4,195.9
1,417.0
168.6
1,242.4

6,605.2
5,906.6
4,290.7
1,446.8
169.0
1,252.1

6,678.8
6,088.3
4,445.5
1,472.7
170.1
1,257.3

6,851.5
6,272.7
4,596.8
1,500.6
175.3
1,265.7

7,024.3
6,356.1
4,656.9
1,521.7
177.5
1,263.5

23 Foreign credit market debt held in
United States ...................................................

542.2

608.0

651.4

676.9

659.2

652.7

672.9

676.9

704.6

698.8

720.7

24
25
26
27

Commercial p a p e r ......................................................
B o n d s ............................................................................
Bank loans n.e.c..........................................................
Other loans and a d v a n ce s........................................

67.5
366.3
43.7
64.7

65.1
427.7
52.1
63.0

72.9
462.5
58.9
57.2

89.2
476.7
59.4
51.7

77.2
466.3
59.1
56.5

70.1
466.4
60.5
55.8

81.8
477.4
58.8
55.0

89.2
476.7
59.4
51.7

101.6
488.1
63.3
51.7

101.2
480.7
64.7
52.1

109.8
489.7
67.6
53.5

28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign...........................

14,986.4

15,855.0

16,941.3

18,121.9

17,264.6

17,437.5

17,778.0

18,121.9

18,382.5

18,552.6

18,774.8

Financial sectors
29 Total credit market debt owed by
financial sectors .................................................

4,824.6

5,445.2

6,519.1

7,607.0

6,809.0

7,073.3

7,346.8

7,607.0

7,744.5

7,964.5

8,155.8

30
31
32
33
34
35
36
37
38
39

By instrument
Federal government-related..........................................
Government-sponsored enterprise securities...........
Mortgage pool securities..........................................
Loans from U.S. government .................................
Private............................................................................
Open market p a p e r...................................................
Corporate b o n d s.......................................................
Bank loans n.e.c.........................................................
Other loans and advances ........................................
Mortgages ................................................................

2,608.3
896.9
1,711.4
.0
2,216.3
579.1
1,378.4
64.0
162.9
31.9

2,821.1
995.3
1,825.8
.0
2,624.1
745.7
1,555.9
77.2
198.5
46.8

3,292.0
1,273.6
2,018.4
.0
3,227.1
906.7
1,852.8
107.2
288.7
71.6

3,884.0
1,591.7
2,292.3
.0
3,723.0
1,082.9
2,074.6
92.9
395.8
76.7

3,424.1
1,321.8
2,112.3
.0
3,374.9
926.4
1,968.6
104.1
299.1
76.6

3,580.7
1,398.0
2,182.7
.0
3,492.6
940.9
2,042.8
106.8
328.6
73.6

3,745.9
1,499.8
2,246.1
.0
3,601.0
963.4
2,091.1
105.2
365.4
75.9

3,884.0
1,591.7
2,292.3
.0
3,723.0
1,082.9
2,074.6
92.9
395.8
76.7

3,940.3
1,618.0
2,322.3
.0
3,804.2
1,115.7
2,114.2
91.4
404.4
78.5

4,035.5
1,680.2
2,355.4
.0
3,928.9
1,135.2
2,183.2
92.7
436.9
81.0

4,164.5
1,750.0
2,414.5
.0
3,991.3
1,151.6
2,234.6
92.5
430.2
82.5

40
41
42
43
44
45
46
47
48
49
50
51
52

By borrowing sector
Commercial banks .......................................................
Bank holding companies ............................................
Savings institutions.......................................................
Credit u n io n s................................................................
Life insurance com panies............................................
Government-sponsored enterprises .............................
Federally related mortgage po o ls.................................
Issuers of asset-backed securities (ABSs)....................
Brokers and dealers .....................................................
Finance companies........................................................
Mortgage companies ...................................................
Real estate investment trusts (REITs) ........................
Funding corporations ...................................................

113.6
150.0
140.5
.4
1.6
896.9
1,711.4
863.3
27.3
529.8
20.6
56.5
312.7

140.6
168.6
160.3
.6
1.8
995.3
1,825.8
1,076.6
35.3
554.5
16.0
96.1
373.7

188.6
193.5
212.4
1.1
2.5
1,273.6
2,018.4
1,398.0
42.5
597.5
17.7
158.8
414.4

230.0
219.3
260.4
3.4
3.2
1,591.7
2,292.3
1,632.0
25.3
659.9
17.8
165.1
506.6

187.5
202.6
226.9
1.5
3.3
1,321.8
2,112.3
1,463.1
34.8
614.4
16.5
165.2
459.1

202.7
205.5
241.6
1.8
4.0
1,398.0
2,182.7
1,539.9
30.4
639.2
17.8
160.3
449.5

224.2
211.8
255.4
2.5
4.3
1,499.8
2,246.1
1,599.1
34.6
628.5
16.3
162.2
462.0

230.0
219.3
260.4
3.4
3.2
1,591.7
2,292.3
1,632.0
25.3
659.9
17.8
165.1
506.6

242.2
221.4
266.9
2.6
3.0
1,618.0
2,322.3
1,665.8
36.4
670.7
17.1
167.9
510.1

265.4
229.3
280.7
2.9
2.7
1,680.2
2,355.4
1,706.4
36.2
699.2
17.8
170.4
517.9

263.6
236.9
277.5
3.1
2.7
1,750.0
2,414.5
1,749.0
42.5
716.5
17.7
169.8
512.0

All sectors

53 Total credit market debt, domestic and foreign . . .
54
55
56
57
58
59
60
61

Open market paper.......................................................
US. government securities ..........................................
Municipal securities .....................................................
Corporate and foreign b onds........................................
Bank loans n.e.c..............................................................
Other loans and advances.............................................
Mortgages .....................................................................
Consumer c redit............................................................

19,811.0

21300.2

23,460.4

25,728.9

24,073.5

24,510.8

25,124.9

25,728.9

26,126.9

26,517.1

26,930.6

803.0
6,390.0
1,296.0
3,205.1
1,041.7
998.0
4,865.5
1,211.6

979.4
6,626.0
1,367.5
3,594.5
1,169.8
1,101.0
5,197.9
1,264.1

1,172.6
7,044.3
1,464.3
4,144.9
1,314.9
1,259.6
5.728.2
1.331.7

1,402.4
7,565.0
1,532.5
4,610.8
1,383.8
1,432.7
6,375.5
1,426.2

1,227.6
7,193.8
1,491.0
4,333.0
1,328.3
1,313.0
5,867.6
1,319.3

1,243.3
7,232.4
1,510.0
4,479.2
1,345.7
1,340.3
6,019.5
1,340.4

1,284.5
7,378.6
1,518.6
4,589.1
1,366.9
1,390.1
6,226.9
1,370.1

1,402.4
7,565.0
1,532.5
4,610.8
1,383.8
1,432.7
6,375.5
1,426.2

1,478.1
7,593.8
1,539.2
4,708.3
1,413.7
1,488.5
6,489.3
1,416.0

1,533.3
7,499.5
1,551.6
4,808.3
1,464.6
1,545.2
6,660.6
1,454.0

1,568.3
7,574.8
1,550.3
4,914.9
1,471.7
1,540.8
6,814.1
1,495.6

1. Data in this table also appear in the Board’s Z.l (780) quarterly statistical release, tables
L.2 through L.4. For ordering address, see inside front cover.




Flow of Funds
1.60

A41

SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1
B illio n s o f d o lla rs e x c e p t a s n o te d , e n d o f p e rio d
1999
Transaction category or sector

1996

1997

2000

1999
Ql

Q2

Q3

Q4

Ql

Q2

Q3

C redit M arket D ebt O utsta nd in g 2
19,811.0

21,300.2

23,460.4

25,728.9

24,073.5

24,510.8

25,124.9

25,728.9

26,126.9

26,517.1

26,930.6

3,031.3
2,118.3
270.2
38.0
604.8
200.2
1,926.6
14,652.9
393.1
3,707.7
3,175.8
475.8
22.0
34.1
933.2
288.5
232.0
1,657.0
491.2
627.3
568.2
634.3
820.2
101.1
807.9
1,711.4
773.9
544.5
41.2
30.4
167.7
122.0

3,004.7
2,106.4
257.5
35.9
605.0
205.5
2,257.3
15,832.7
431.4
4,031.9
3,450.7
516.1
27.4
37.8
928.5
305.3
207.0
1,751.1
515.3
646.8
632.0
721.9
901.1
98.3
902.2
1,825.8
937.7
566.4
32.1
50.6
182.6
164.7

3,108.2
2,061.4
271.5
35.9
739.4
219.1
2,539.8
17,593.3
452.5
4,335.7
3,761.2
504.2
26.5
43.8
964.8
324.2
194.1
1,828.0
535.7
704.7
703.6
965.9
1,025.9
102.8
1,163.9
2,018.4
1,219.4
618.4
35.3
45.5
189.4
165.2

3,434.5
2,318.5
295.7
37.5
782.8
258.0
2,678.0
19,358.4
478.1
4,643.9
4,078.9
484.1
32.7
48.3
1,033.4
351.7
222.0
1,886.0
531.6
762.2
753.4
1,147.8
1,073.1
105.9
1,399.5
2,292.3
1,435.3
713.3
35.6
42.9
158.6
291.9

3,199.5
2,124.7
266.1
36.6
772.1
223.3
2,608.3
18,042.4
466.0
4,338.4
3,782.9
487.8
25.0
42.7
990.8
330.2
201.1
1,853.5
530.8
719.0
722.6
1,036.2
1,050.8
103.6
1,203.1
2,112.3
1,280.1
639.9
33.0
45.9
211.4
173.8

3,255.5
2,155.3
268.5
36.9
794.8
225.0
2,621.3
18,409.0
485.1
4,383.4
3,847.6
465.7
25.1
45.0
1,011.4
341.0
208.0
1,869.6
537.5
740.7
728.9
1,001.8
1,083.7
104.3
1,268.4
2,182.7
1,352.7
660.9
35.6
45.3
162.9
204.9

3,311.9
2,208.2
284.7
37.1
781.9
260.7
2,718.1
18,834.0
489.3
4,488.3
3,944.3
475.3
22.0
46.7
1,030.8
348.5
215.0
1,880.4
533.9
748.7
738.9
1,049.7
1,083.0
105.1
1,340.2
2,246.1
1,409.8
678.2
32.5
44.7
167.0
204.0

3,434.5
2,318.5
295.7
37.5
782.8
258.0
2,678.0
19,358.4
478.1
4,643.9
4,078.9
484.1
32.7
48.3
1,033.4
351.7
222.0
1,886.0
531.6
762.2
753.4
1,147.8
1,073.1
105.9
1,399.5
2,292.3
1,435.3
713.3
35.6
42.9
158.6
291.9

3,368.4
2,252.7
294.7
38.1
782.9
259.6
2,765.9
19,733.1
501.9
4,725.0
4,171.3
482.0
22.1
49.6
1,044.5
359.0
227.4
1,901.5
528.0
773.7
767.2
1,217.1
1,053.7
106.7
1,426.4
2,322.3
1,463.9
747.0
34.1
38.8
201.1
293.8

3,377.1
2,244.2
298.3
38.8
795.8
261.5
2,809.7
20,068.7
505.1
4,847.4
4,295.4
478.1
23.0
51.0
1,061.7
370.8
231.7
1,913.4
523.5
779.4
772.4
1,159.4
1,073.9
107.4
1,485.3
2,355.4
1,495.8
780.6
35.5
38.2
189.3
342.7

3,303.4
2,174.1
300.8
39.8
788.7
265.4
2,860.0
20,501.8
511.5
4,931.2
4,368.3
487.6
21.3
54.0
1,080.9
381.9
236.8
1,927.9
525.7
793.3
781.3
1,212.5
1,090.6
108.2
1,546.7
2,414.5
1,529.6
795.5
35.4
37.3
245.2
315.8

34 Total credit market debt ...................................................

19,811.0

21,300.2

23,460.4

25,728.9

24,073.5

24,510.8

25,124.9

25,728.9

26,126.9

26,517.1

26,930.6

Other liabilities
Official foreign exchange .....................................................
Special drawing rights certificates ......................................
Treasury currency ..................................................................
Foreign deposits .....................................................................
Net interbank liabilities .......................................................
Checkable deposits and c u rre n c y ........................................
Small time and savings deposits ........................................
Large time d e p o sits ................................................................
Money market fund s h a re s ...................................................
Security repurchase agreements ..........................................
Mutual fund shares ................................................................
Security c r e d it.........................................................................
Life insurance re s e rv e s ..........................................................
Pension fund re s e rv e s ............................................................
Trade payables .......................................................................
Taxes payable .........................................................................
Investment in bank personal tru s ts ......................................
Miscellaneous .........................................................................

53.7
9.7
17.7
521.7
240.8
1,244.8
2,377.0
590.9
886.7
701.5
2,342.4
358.1
610.6
6,548.6
1,812.1
123.8
871.3
6,349.8

48.9
9.2
17.0
619.7
219.4
1,286.1
2,474.1
713.4
1,042.5
822.4
2,989.4
469.1
665.0
7,817.4
1,943.3
139.5
942.5
6,699.6

60.1
9.2
16.2
639.0
189.0
1,333.4
2,626.5
805.5
1,329.7
913.7
3,610.5
572.3
718.3
8,913.1
1,970.3
151.5
1,001.0
7,268.4

50.1
6.2
14.6
725.8
204.5
1,484.8
2,671.2
936.1
1,578.8
1,085.4
4,553.4
665.9
783.9
10,000.0
2,155.0
167.5
1,130.4
7,812.0

53.6
8.2
16.2
667.4
182.0
1,310.5
2,637.6
804.3
1,411.7
980.3
3,758.1
552.7
735.9
9,065.3
1,973.9
158.8
1,016.5
7,267.8

50.9
8.2
15.7
694.9
207.1
1,353.1
2,644.6
809.0
1,393.5
970.8
4,049.1
589.3
749.8
9,480.0
2,031.1
162.4
1,061.0
7,459.1

52.1
7.2
14.6
712.3
199.6
1,353.8
2,665.9
837.5
1,444.9
999.3
3,931.5
593.2
756.2
9,151.1
2,095.1
167.5
1,019.0
7,468.8

50.1
6.2
14.6
725.8
204.5
1,484.8
2,671.2
936.1
1,578.8
1,085.4
4,553.4
665.9
783.9
10,000.0
2,155.0
167.5
1,130.4
7,812.0

49.4
6.2
14.1
790.4
168.1
1,392,9
2,728,0
966.5
1,666.0
1,155.8
4,863.3
803.7
799.9
10,230.0
2,189.6
182.3
1,163.8
7,984.0

46.5
4.2
13.4
790.2
215.9
1,409.7
2,738.8
987.4
1,627.1
1,185.1
4,759.6
780.5
809.4
10,155.0
2,218.8
179.5
1,125.6
8,235.4

44.9
3.2
12.4
803.0
200.2
1,385.7
2,790.2
1,026.8
1,697.8
1,239.2
4,816.4
794.5
821.2
10,348.6
2,265.7
185.3
1,124.5
8,696.4

53 Total lia b ilitie s .......................................................................

45,472.1

50,218.5

55,588.1

61,754.5

56,674.4

58,240.5

58,594.5

61,754.5

63,280.9

63,799.2

65,186.6

Financial assets not included in liabilities ( + )
54 Gold and special drawing rights ........................................
55 Corporate e q u itie s ..................................................................
56 Household equity in noncorporate business ....................

21.4
10,255.8
3,889.2

21.1
13,201.3
4,164.4

21.6
15,427.8
4,414.7

21.4
19,576.3
4,704.5

20.7
15,919.1
4,487.4

20.8
17,060.4
4,548.8

21.3
16,214.9
4,623.1

21.4
19,576.3
4,704.5

21.4
20,232.0
4,732.2

21.5
19,246.8
4,779.1

21.4
19,047.1
4,848.4

Liabilities not identified as assets ( —)
Treasury currency ...................................................................
Foreign deposits .....................................................................
Net interbank transactions ...................................................
Security repurchase agreements ..........................................
Taxes payable .........................................................................
Miscellaneous .........................................................................

- 7 .3
437.0
-1 0 .6
111.5
76.9
-1,512.3

- 8 .6
538.3
-3 2 .2
175.8
92.6
-1 ,8 6 8 .4

-1 0 .1
548.2
- 2 7 .0
237.2
102.0
-2 ,4 0 4 .7

- 1 3 .4
615.0
-2 5 .5
269.3
95.5
-2 ,8 4 7 .2

-1 0 .5
560.5
-1 1 .3
296.7
89.8
-2 ,618.2

-1 1 .3
584.7
-1 0 .6
308.2
112.2
-2 ,6 5 1 .5

- 1 2 .8
591.5
- 1 3 .2
327.7
96.4
-2 ,9 5 7 .4

- 1 3 .4
615.0
-2 5 .5
269.3
95.5
-2 ,8 4 7 .2

-1 4 .9
662.4
-1 3 .9
414.2
90.8
-2 ,9 9 2 .2

-1 6 .6
646.7
- 1 1 .6
413.9
102.5
-2 ,9 8 0 .4

-1 8 .2
652.0
- 1 7 .7
445.0
94.9
-2 ,7 8 7 .4

Floats not included in assets (—)
63 Federal government checkable d e p o sits.............................
64 Other checkable deposits .....................................................
65 Trade c r e d it .............................................................................

- 1 .6
30.1
174.6

-8 .1
26.2
135.5

- 3 .9
23.1
94.5

- 9 .9
22.3
136.1

- 7 .2
18.9
56.3

-1 2 .4
22.1
19.4

-1 0 .2
14.5
37.0

- 9 .9
22.3
136.1

- 6 .5
18.7
92.3

-5 .2
22.5
51.4

- 7 .8
15.5
34.5

66 Total identified to sectors as a s s e t s .................................

60,340.1

68,554.3

76,892.9

87,814.5

78,726.6

81,509.7

81,380.2

87,814.5

90,015.5

89,623.3

90,692.7

1 Total credit market assets .................................................
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

Domestic nonfederal nonfinancial sectors ........................
Household ...........................................................................
Nonfinancial corporate b u s in e ss......................................
Nonfarm noncorporate b u s in e s s ......................................
State and local governm ents............................................
Federal government ..............................................................
Rest of the world ..................................................................
Financial sectors .....................................................................
Monetary authority ............................................................
Commercial b a n k in g ..........................................................
U.S.-chartered banks .....................................................
Foreign banking offices in United S ta te s ..................
Bank holding companies ............................................
Banks in U.S.-affiliated areas ......................................
Savings in stitutions............................................................
Credit u n io n s .......................................................................
Bank personal trusts and estates ...................................
Life insurance c o m p a n ie s.................................................
Other insurance com panies..............................................
Private pension funds .......................................................
State and local government retirement fu n d s......................
Money market mutual funds ..........................................
Mutual f u n d s .......................................................................
Closed-end funds ..............................................................
Government-sponsored enterp rises.................................
Federally related mortgage p o o l s ...................................
Asset-backed securities issuers (ABSs) ........................
Finance companies ............................................................
Mortgage c o m panies..........................................................
Real estate investment trusts (REITs) ..........................
Brokers and dealers ..........................................................
Funding corporations .......................................................
R elation o f L iabilities
t o F inancial assets

35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52

57
58
59
60
61
62

1. Data in this table also appear in the Board’s Z .l (780) quarterly statistical release, tables
L.l and L.5. For ordering address, see inside front cover.




2. Excludes corporate equities and mutual fund shares.

A42
2.10

Domestic Nonfinancial Statistics □ March 2001
NONFINANCIAL BUSINESS ACTIVITY

Selected Measures

Monthly data seasonally adjusted, and indexes 1992=100, except as noted
2000
Measure

1998

1999

2000
Apr.

1 Industrial production1 ........................................

May

June

July

Aug.

Sept.

Oct.r

Nov.

Dec.p

134.0

139.6

147.5

146.3

147.2

147.9

147.6

148.6

149.0r

148.5

148.1

147.3

127.2
129.3
118.4
147.1
121.0
145.7

131.2
133.3
120.8
153.8
125.1
154.5

136.3
138.8
123.1
166.0
128.7
167.8

135.3
137.2
123.2
162.8
129.3
166.1

135.5
137.5
123.5
163.1
129.4
168.4

136.0
138.3
124.2
164.3
129.0
169.4

135.8
138.1
122.9
166.3
128.7
169.0

136.6
139.2
123.8
167.9
128.8
170.5

136.7r
139.3r
123.8r
168.3r
128.6r
171.3r

136.3
138.8
122.7
169.1
128.4
170.8

136.4
139.1
122.8
169.7
128.4
169.3

136.1
138.9
122.9
169.0
127.7
167.6

138.2

144.8

153.6

152.2

153.1

153.8

153.7

154.6

155.l r

154.8

153.9

152.2

81.3

80.5

81.3

81.8

81.9

82.0

81.6

81.7

81.7

81.2

80.4

79.1

10 Construction contracts3 ..........................................

161.3

177.7

179.0

189.0r

180.0r

177.0r

182.0

187.0

179.0

n.a.

11 Nonagricuitural employment, total4 ....................
12
Goods-producing, to ta l ......................................
13
Manufacturing, t o t a l ......................................
14
Manufacturing, production w o rk e rs...........
15
Service-producing...............................................
16 Personal income, total ..........................................
17
Wages and salary disbursements ....................
18
Manufacturing ...............................................
19
Disposable personal income5 ...........................
20 Retail sales5 ............................................................

123.4
102.7
98.8
99.8
130.0
186.5
184.6
152.3
182.7
178.4

126.2
102.3
97.0
97.8
133.8
196.6
196.9
157.4
191.9
194.7

t
1
1
1
I

187.0r

209.0
210.1
164.2
202.0
210.0

128.9
104.3
97.3
98.0
136.8
207.2
208.2
163.6
200.6
208.3

129.1
104.1
97.3
97.9
137.0
207.9
208.4
162.9
201.3
208.5

129.1
104.2
97.3
97.9
137.1
208.9
209.8
164.3
202.1
209.3

129.1
104.4
97.6
98.4
137.0
209.5
211.0
165.8
202.5
211.1

129.0
103.9
97.0
97.5
137.0
210.1
211.3
164.9
202.9
211.0

129.2
103.9
96.7
97.2
137.3
212.5
212.7
165.1
205.2
212.7

129.3
104.0
96.7
97.1
137.3
212.1
214.0
166.6
204.4
212.5

129.3
103.9
96.6
97.0
137.4
212.6
214.8
166.9
204.7
211.5

129.3
103.6
96.3
96.6
137.6
213.5
215.2
165.6
205.5
211.6

Prices6
21 Consumer (1 9 8 2 -8 4 = 1 0 0 )....................................
22 Producer finished goods (1982= 100) ................

163.0
130.7

166.6
133.0

172.2
138.0

171.3
136.7

171.5
137.3

172.4
138.6

172.8
138.6

172.8
138.2

173.7
139.2

174.0
140.0

174.1
139.9

174.0
139.7

2
3
4
5
6
7
8

Market groupings
Products, to ta l ..........................................................
Final, to ta l............................................................
Consumer g o o d s .............................................
E quipm ent........................................................
Interm ediate..........................................................
M a te ria ls...................................................................
Industry groupings
Manufacturing ........................................................

9 Capacity utilization, manufacturing (percent)2. .

n.a.

1. Data in this table appear in the Board’s G.17 (419) monthly statistical release. The data
are also available on the Board’s web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in December 2000. The recent annual revision is described in an article in the
March 2001 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacity utilization, see “Industrial Production and Capacity Utilization:
Historical Revision and Recent Developments,” Federal Reserve Bulletin, vol. 83 (February
1997), pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, 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, U.S. Department o f Commerce, and other sources.

2.11

3. Index of dollar value of total construction contracts, including residential, nonresiden­
tial, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge
Division.
4. Based on data from the U.S. Department of Labor, Employment and Earnings. Series
covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey o f Current Business.
6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price
indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics,
Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for series
mentioned in notes 3 and 6, can also be found in the Survey o f Current Business.

LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted
2000
Category

1998

1999

2000
May

H o u s e h o ld S u r v e y D a t a

June

July

Aug.

Sept.

Oct.r

Nov.

Dec.p

1

1 Civilian labor force2 ...................................................

137,673

139,368

140,573r

140,757r

I40,546r

140,724r

140,847r

141,000

141,136

141,489

2
3

128,085
3,378

130,207
3,281

131,549r
3,294r

131,870r
3,313r

131,603r
3,295r

131,622r
3,317r

131,954r
3,356r

132,223
3,241

132,302
3,176

132,562
3,274

6,210
4.5

5,880
4.2

5.730r
4.1

5,574'
4.0

5,648r
4.0

5,785r
4.1

5,537r
3.9

5,536
3.9

5,658
4.0

5,653
4.0

125,826

128,616

18,772
590
5,985
6,600
29,127
7,407
37,526
19,819

18,431
535
6,273
6,792
29,792
7,632
39,000
20,161

4
5

Nonagricuitural industries3 ....................................
Agriculture ..............................................................
Unemployment
N u m b e r.....................................................................
Rate (percent of civilian labor force) ................
E st a b l is h m e n t S u r v e y D a t a

6 Nonagricuitural payroll employment4 ...............
7
8
9
10
11
12
13
14

Manufacturing ............................................................
Mining ..........................................................................
Contract construction .................................................
Transportation and public u tilitie s ...........................
T r a d e ..............................................................................
Finance ..........................................................................
Service .........................................................................
Government .................................................................

n.a.

1. Beginning January 1994, reflects redesign of current population survey and population
controls from the 1990 census.
2. Persons sixteen years of age and older, including Resident Armed Forces. Monthly
figures are based on sample data collected during the calendar week that contains the twelfth
day; annua/ data are averages o f monthly figures. By definition, seasonality does not exist in
population figures.
3. Includes self-employed, unpaid family, and domestic service workers.




131,590

131,647

131,607

131,528

131,723

131,789

131,848

131,953

18,479
539
6,666
6,962
30,112
7,600
40,220
21,012

18,493
539
6,668
6,985
30,171
7,588
40,401
20,802

18,548
538
6,670
7,010
30,246
7,586
40,403
20,606

18,432
537
6,675
6,941
30,253
7,608
40,572
20,510

18,380
539
6,720
7,037
30,249
7,622
40,685
20,491

18,378
542
6,745
7,046
30,280
7,638
40,696
20,464

18,363
541
6,738
7,060
30,325
7,645
40,764
20,412

18,301
538
6,725
7,083
30,329
7,664
40,845
20,468

4.
Includes all full- and part-time employees who worked during, or received pay for, the
pay period that includes the twelfth day of the month; excludes proprietors, self-employed
persons, household and unpaid family workers, and members of the armed forces. Data are
adjusted to the March 1992 benchmark, and only seasonally adjusted data are available at this
time.
SOURCE. Based on data from U.S. Department of Labor, Employment and Earnings.

Selected Measures A43
2.12

OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
S e a s o n a lly a d ju s te d
2000

2000

2000

Series
Ql

Q2

Q3

Q4

Output (1992=100)

Ql

Q2

Q3

Q4

Capacity (percent of 1992 output)

Q2

Ql

Q3

Q4

Capacity utilization rate (percent)2

1 Total in d u stry ........................................

144.4

147.1

148.4

148.0

176.1

178.1

180.1

182.1

82.0

82.6

82.4

2 M anufacturing ........................................

150.1

153.0

154.4

153.6

184.6

186.9

189.2

191.5

81.3

81.9

81.7

80.2

3
4

Primary processing3 ...........................
Advanced processing4 ......................

173.5
137.3

178.6
139.0

180.3
140.3

177.7
140.4

203.0
172.7

206.9
174.1

211.2
175.2

215.9
176.2

85.4
79.5

86.4
79.8

85.4
80.1

82.3
79.7

5
6
7
8
9
10
11
12
13

Durable g o o d s ....................................
Lumber and products....................
Primary m eta ls...............................
Iron and s te e l.............................
N onferrous.................................
Industrial machinery and equipm ent.............
Electrical machinery ....................
Motor vehicles and p a rts .............
Aerospace and miscellaneous
transportation equipment

186.7
122.4
136.1
135.0
137.4
242.2
476.7
171.8

192.9
120.3
137.0
136.1
138.2
249.4
535.1
175.9

196.7
117.0
133.4
130.5
137.0
257.3
581.1
170.8

195.6
112.9
125.6
118.8
133.6
261.7
603.5
156.1

228.5
147.0
153.0
152.8
153.2
296.3
552.1
207.0

233.3
147.5
153.3
153.1
153.4
304.5
591.7
208.2

238.3
147.9
153.4
153.4
153.4
311.1
639.1
209.2

243.5
148.4
153.5
153.6
153.4
317.3
693.7
210.2

81.7
83.3
88.9
88.4
89.7
81.7
86.3
83.0

82.7
81.6
89.4
88.9
90.1
81.9
90.4
84.5

82.5
79.1
87.0
85.1
89.3
82.7
90.9
81.7

80.3
76.1
81.8
77.3
87.1
82.5
87.0
74.3

93.7

92.9

93.5

94.4

130.7

130.7

130.4

130.1

71.7

71.1

71.7

72.6

14
15
16
17
18
19

Nondurable g o o d s .............................
Textile mill p ro d u c ts ....................
Paper and products ......................
Chemicals and products................
Plastics m ate ria ls......................
Petroleum products ......................

116.3
104.0
117.6
124.8
141.6
116.0

116.7
103.3
117.9
125.8
140.9
118.3

116.2
99.8
114.0
125.4
137.6
117.3

115.6
93.7
114.8
125.6
136.4
114.3

143.8
124.4
136.9
161.9
151.5
123.2

144.1
123.9
137.2
163.0
151.6
123.2

144.4
123.3
137.5
164.1
151.9
123.2

144.7
122.8
137.9.
164.9
152.3
123.1

80.9
83.6
85.8
77.1
93.5
94.1

80.9
83.4
85.9
77.2
93.0
96.0

80.5
80.9
82.9
76.4
90.5
95.3

79.9
76.4
83.2
76.2
89.5
92.9

20 Mining .....................................................
21 Utilities ...................................................
22
E le ctric .................................................

99.4
117.4
120.5

100.0
120.7
124.3

100.6
121.0
123.9

100.4
125.1
126.6

116.7
131.2
129.5

116.5
132.3
130.9

116.3
133.4
132.3

115.9
134.4
133.8

85.2
89.5
93.1

85.8
91.2
94.9

86.6
90.7
93.7

86.6
93.0
94.6

1973

1975

Previous cycle5

High

Low

High

Low

Latest cycle6
High

Low

1999
Dec.

81.3

2000
July

Aug.

Sept.r

Oct.r

Nov.

Dec.p

Capacity utilization rate (percent)'
1 Total industry........................................

89.2

72.6

87.3

71.1

85.4

78.1

81.7

82.3

82.6

82.4

81.9

81.4

80.6

2 M anufacturing........................................

88.5

70.5

86.9

69.0

85.7

76.6

81.0

81.6

81.7

81.7

81.2

80.4

79.1

3
4

Primary processing3 ........................
Advanced processing4 ......................

91.2
87.2

68.2
71.8

88.1
86.7

66.2
70.4

88.9
84.2

77.7
76.1

85.1
79.2

85.6
79.8

85.4
80.2

85.2
80.2

84.3
80.0

82.5
79.8

80.1
79.2

5
6
7
8
9
10

Durable g o o d s ....................................
Lumber and p ro d u c ts ..................
Primary metals .............................
Iron and steel ...........................
N onferrous.................................
Industrial machinery and
equipment.................................
Electrical machinery.........................
Motor vehicles and parts..................
Aerospace and miscellaneous
transportation equipm ent.........

89.2
88.7
100.2
105.8
90.8

68.9
61.2
65.9
66.6
59.8

87.7
87.9
94.2
95.8
91.1

63.9
60.8
45.1
37.0
60.1

84.6
93.6
92.7
95.2
89.3

73.1
75.5
73.7
71.8
74.2

81.0
83.7
89.5
88.8
90.4

82.3
80.3
87.3
84.8
90.5

82.6
78.1
86.3
84.5
88.5

82.7
78.9
87.3
86.0
89.0

81.6
77.3
83.6
80.6
87.3

80.5
75.9
83.3
79.3
88.1

78.9
75.0
78.5
72.1
86.0

96.0
89.2
93.4

74.3
64.7
51.3

93.2
89.4
95.0

64.0
71.6
45.5

85.4
84.0
89.1

72.3
75.0
55.9

80.2
84.0
82.2

82.1
91.8
78.1

82.9
90.8
83.1

83.1
90.2
83.8

83.2
88.2
79.0

82.6
87.2
73.5

81.6
85.6
70.4

78.4

67.6

81.9

66.6

87.3

79.2

72.1

72.7

71.7

70.7

71.8

73.1

72.8

Nondurable goods ...............................
Textile mill products ......................
Paper and products...........................
Chemicals and products..................
Plastics materials ........................
Petroleum products...........................

87.8
91.4
97.1
87.6
102.0
96.7

71.7
60.0
69.2
69.7
50.6
81.1

87.5
91.2
96.1
84.6
90.9
90.0

76.4
72.3
80.6
69.9
63.4
66.8

87.3
90.4
93.5
86.2
97.0
88.5

80.7
77.7
85.0
79.3
74.8
85.1

81.2
82.9
86.8
78.8
92.7
93.8

80.6
82.1
83.6
76.2
92.8
95.0

80.5
80.6
82.3
76.7
89.1
95.5

80.3
79.9
82.6
76.3
89.8
95.4

80.5
78.6
85.0
76.6
90.5
94.6

80.0
75.2
83.2
76.2
89.5
94.6

79.2
75.2
81.3
75.7
88.6
89.4

20 Mining .....................................................
21 Utilities.....................................................
22
Electric .................................................

94.3
96.2
99.0

88.2
82.9
82.7

96.0
89.1
88.2

80.3
75.9
78.9

88.0
92.6
95.0

87.0
83.4
87.1

84.5
90.0
94.3

86.3
89.5
91.8

86.9
91.5
95.3

86.4
91.0
93.9

86.5
89.0
91.6

86.5
92.1
94.4

86.9
97.9
97.8

11
12
13
14
15
16
17
18
19

1. Data in this table appear in the Board’s G.17 (419) monthly statistical release. The data
are also available on the Board’s web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in December 2000. The recent annual revision is described in an article in the
March 2001 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacity utilization, see “Industrial Production and Capacity Utilization:
Historical Revision and Recent Developments,” Federal Reserve Bulletin, vol. 83 (February
1997), pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, see “Industrial Production: 1989 Developments and
Historical Revision,” Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Capacity utilization is calculated as the ratio of the Federal Reserve’s seasonally adjusted
index of industrial production to the corresponding index of capacity.




3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic
materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass;
primary metals; and fabricated metals.
4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing
and publishing; chemical products such as drugs and toiletries; agricultural chemicals; leather
and products; machinery; transportation equipment; instruments; and miscellaneous manufac­
tures.
5. Monthly highs, 1978-80; monthly lows, 1982.
6. Monthly highs, 1988-89; monthly lows, 1990-91.

A44
2.13

Domestic Nonfinancial Statistics □ March 2001
INDUSTRIAL PRODUCTION

Indexes and Gross Value1

M o n th ly d a ta se a s o n a lly a d ju s te d

Group

1992
pro­
por­
tion

1999

2000

2000
avg.
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.r

Oct.r

Nov.1
"

Dec.

Index (1992 = 100)
M a jor M arkets
1 Total index ..........................................................

100.0

147.5

142.8

143.6

144.3

145.2

146.3

147.2

147.9

147.6

148.6

149.0

148.5

148.1

147.3

2 Products .................................................................
3
Final products...................................................
4
Consumer goods, to ta l ...............................
5
Durable consumer g o o d s ......................
6
Automotive products ........................
7
Autos and trucks ...........................
8
Autos, consumer ......................
9
Trucks, co n su m er......................
10
Auto parts and allied goods . . . .
11
O th e r......................................................
12
Appliances, televisions, and air
conditioners ...........................
13
Carpeting and f u rn itu re ................
14
Miscellaneous home g o o d s .........
15
Nondurable consumer g o o d s ................
16
Foods and to b a c c o .............................
17
Clothing ...............................................
18
Chemical p ro d u c ts .............................
iy
Paper products ....................................
20
Energy...................................................
21
F u e ls .................................................
22
Residential utilities.........................

60.5
46.3
29.1
6.1
2.6
1.7
.9
.7
.9
3.5

136.3
138.8
123.1
160.8
153.2
167.0
114.0
221.9
131.6
167.2

132.7
134.4
122.4
161.6
153.3
166.2
112.0
222.1
132.8
168.7

133.3
135.1
122.1
162.9
156.9
171.4
116.5
228.2
134.3
167.6

134.2
135.9
122.8
162.6
154.8
169.0
116.3
223.7
132.5
169.1

134.4
136.0
122.2
162.1
155.3
170.3
115.1
227.3
131.9
167.7

135.3
137.2
123.2
164.7
157.6
173.7
118.5
230.7
132.7
170.6

135.5
137.5
123.5
163.8
157.9
175.7
119.7
233.7
130.6
168.5

136.0
138.3
124.2
164.4
157.8
174.8
118.1
233.2
131.6
169.8

135.8
138.1
122.9
158.7
149.4
160.5
113.6
209.8
131.6
166.7

136.6
139.2
123.8
160.0
153.8
169.8
120.3
221.8
129.1
165.2

136.7
139.3
123.8
162.8
156.7
172.7
120.5
227.1
132.1
167.7

136.3
138.8
122.7
157.4
148.0
159.1
107.8
212.0
130.2
165.6

136.4
139.1
122.8
155.1
144.4
153.4
103.0
205.1
129.7
164.5

136.1
138.9
122.9
152.8
140.2
146.2
94.9
198.1
129.6
164.3

1.0
.8
1.6
23.0
10.3
2.4
4.5
2.9
2.9
.8
2.1

333.3
129.7
120.4
114.2
110.7
84.9
137.0
111.1
116.6
112.5
118.8

336.5
128.2
122.8
113.3
109.7
86.8
137.3
108.5
113.8
112.1
114.0

328.3
129.2
122.7
112.7
110.3
86.3
132.9
109.1
113.1
108.4
115.1

336.1
129.7
122.7
113.5
110.6
87.5
133.5
109.6
116.2
111.0
118.5

332.3
128.3
122.1
112.9
110.8
87.2
134.9
108.3
110.7
114.9
107.4

341.1
131.8
122.7
113.6
110.9
87.5
136.5
108.2
113.6
112.1
113.8

334.6
130.8
121.6
114.1
110.3
86.8
138.5
109.0
116.0
113.1
117.1

348.2
130.1
120.5
114.8
110.8
85.1
139.3
111.6
117.0
113.4
118.5

322.3
131.5
121.3
114.5
111.0
85.6
137.4
112.4
114.9
112.6
115.6

325.0
128.6
119.7
115.2
111.4
84.2
139.4
112.4
117.1
113.1
119.0

340.5
131.9
118.1
114.7
110.5
83.1
138.4
112.4
118.4
115.8
119.1

333.1
130.2
117.5
114.5
110.4
82.8
138.9
113.8
115.7
113.0
116.7

338.6
126.0
116.7
115.0
110.3
83.1
138.9
112.6
120.5
115.4
123.0

343.0
125.7
115.3
115.5
110.3
81.9
139.0
112.5
124.2
106.6
135.1

23
24
25
26
27
28
29
30
31
32
33

Equipm ent..........................................................
Business e q u ip m e n t....................................
Information processing and related...........
Computer and office equipment...........
Industrial...................................................
T ransit........................................................
Autos and trucks ...............................
Other ..........................................................
Defense and space eq u ip m e n t..................
Oil and gas well drilling.............................
Manufactured homes .................................

17.2
13.2
5.4
1.1
4.0
2.5
1.2
1.3
3.3
.6
.2

166.0
194.3
312.7
1,160.2
144.4
127.6
145.4
145.4
76.1
131.7
116.7

155.7
180.6
274.9
930.2
137.3
128.8
147.1
137.7
78.5
120.1
142.0

158.7
185.2
284.8
979.1
140.4
130.9
153.8
138.6
77.1
121.1
138.5

159.8
187.0
289.2
1,019.5
142.1
130.6
154.2
138.5
75.9
124.6
133.8

161.3
188.9
293.5
1,044.0
142.2
131.5
154.0
142.9
76.0
126.7
131.7

162.8
191.1
298.8
1,062.0
142.9
131.3
156.5
146.7
75.5
126.7
127.2

163.1
191.6
302.5
1,087.8
143.4
129.0
153.9
145.8
75.5
130.3
122.9

164.3
192.8
307.0
1,130.8
143.8
130.1
152.9
142.8
76.3
130.8
121.9

166.3
195.0
313.9
1,182.8
144.4
127.6
141.5
148.1
77.9
136.2
116.8

167.9
197.8
322.1
1,229.0
147.7
126.8
142.8
144.8
76.1
137.1
115.5

168.3
199.5
327.2
1,264.1
146.5
127.7
144.2
149.3
73.7
132.8
109.3

169.1
200.2
332.8
1,295.8
146.9
121.7
131.4
154.0
75.2
136.5
96.8

169.7
200.3
338.4
1,317.3
146.8
119.7
126.2
148.5
76.9
138.9
93.2

169.0
199.4
339.4
1,325.8
144.5
118.1
123.3
150.7
76.9
137.9
90.5

34
35
36

Intermediate products, to ta l ...........................
Construction supplies.................................
Business s u p p lie s........................................

14.2
5.3
8.9

128.7
142.9
120.4

127.4
142.2
118.7

127.8
142.6
119.0

128.9
143.4
120.3

129.5
144.6
120.6

129.3
144.4
120.4

129.4
143.1
121.3

129.0
143.4
120.5

128.7
143.8
119.8

128.8
142.7
120.6

128.6
143.1
120.0

128.4
142.2
120.3

128.4
140.7
121.2

127.7
137.7
121.7

37 M aterials.................................................................
38
Durable goods materials ...............................
39
Durable consumer p a r ts .............................
40
Equipment p a r t s ..........................................
41
O th e r..............................................................
42
Basic metal materials ...........................
43
Nondurable goods materials ........................
44
Textile m aterials..........................................
45
Paper m aterials.............................................
46
Chemical m aterials......................................
47
O th e r..............................................................
48
Energy materials ............................................
49
Primary e n e rg y ............................................
50
Converted fuel m a te ria ls ...........................

39.5
20,8
4.0
7.6
9.2
3.1
8.9
1.1
1.8
3.9
2.1
9.7
6.3
3.3

167.8
227.4
164.1
479.0
134.6
128.3
114.0
97.8
115.9
117.5
112.7
103.4
98.1
114.5

161.0
210.6
163.8
392.6
134.8
131.0
116.8
100.7
118.4
120.1
116.1
103.1
98.5
112.5

162.0
213.4
164.3
404.2
135.3
130.7
116.2
100.4
118.2
119.7
114.6
102.6
97.2
113.9

162.4
215.4
163.2
416.6
134.8
128.8
115.3
101.9
116.7
118.6
113.0
102.1
96.2
114.6

164.7
220.0
164.9
434.2
135.9
131.1
115.6
102.2
118.1
118.6
113.5
102.5
97.7
112.3

166.1
222.7
162.2
451.9
135.7
131.9
115.2
101.1
118.7
118.1
112.6
103.5
98.8
113.0

168.4
227.6
169.9
466.8
135.9
130.8
115.7
100.9
117.5
119.8
112.4
103.3
98.3
113.7

169.4
230.3
165.7
486.2
135.9
130.7
115.2
101.7
118.1
118.4
112.3
103.1
98.4
112.4

169.0
230.5
158.3
499.9
135.3
128.5
113.9
97.9
114.9
117.0
113.7
102.9
98.7
110.8

170.5
233.8
168.3
505.7
134.7
127.5
112.8
99.3
112.8
116.8
110.2
104.2
98.9
115.1

171.3
235.7
169.0
512.1
135.5
129.2
112.7
95.9
113.8
116.3
112.0
104.3
98.5
116.6

170.8
234.1
166.9
513.6
133.7
125.1
113.7
93.8
117.3
116.4
114.2
103.9
98.2
116.2

169.3
231.5
156.7
520.0
132.2
124.7
111.6
89.2
113.6
115.3
112.2
104.6
98.4
118.3

167.6
227.6
149.5
522.6
128.9
118.8
109.8
88.8
111.5
113.7
109.7
106.1
99.6
120.7

97.1
95.1

147.2
146.4

142.4
141.5

143.0
142.2

143.8
143.0

144.8
143.9

145.7
144.9

146.7
145.8

147.5
146.5

147.5
146.9

148.4
147.4

148.7
147.7

148.7
147.7

148.4
147.9

147.7
147.4

98.2
27.4
26.2

140.5
120.7
123.9

136.7
120.0
123.5

137.2
119.5
123.2

137.8
120.3
123.5

138.6
119.6
123.6

139.6
120.5
124.4

140.4
120.7
124.4

141.0
121.5
125.0

140.5
120.9
123.9

141.4
121.3
124.5

141.6
121.2
124.4

141.1
120.7
123.6

140.6
121.1
123.0

139.8
121.5
122.5

12.0

200.2

184.5

188.9

190.8

193.1

195.2

196.1

197.6

201.5

204.5

206.3

208.7

209.5

209.0

12.1
29.8

158.4
188.4

150.3
179.3

153.6
180.8

154.4
181.5

155.7
184.6

157.4
186.0

157.3
189.3

157.6
190.7

158.6
190.3

160.3
191.8

161.2
193.0

161.2
192.4

160.9
189.9

160.0
186.7

Special A ggregates
51 Total excluding autos and tru c k s......................
52 Total excluding motor vehicles and p a rts .............
53 Total excluding computer and office
equipm ent.....................................................
54 Consumer goods excluding autos and trucks .
55 Consumer goods excluding e n e rg y ..................
56 Business equipment excluding autos and
trucks ............................................................
57 Business equipment excluding computer and
office equipm ent..........................................
58 Materials excluding e n e rg y ...............................




Selected Measures A45
2.13

INDUSTRIAL PRODUCTION

Indexes and Gross Value1 Continued
—

M o n th ly d a ta s e a s o n a lly a d ju s te d

Group

1992
pro­
por­
tion

SIC2
code

1999

2000

2000
avg.
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.r

Oct.r

Nov.r

Dec.

Index (1992 = 100)
M ajor I ndustries
59 Total index .................................

100.0

147.5

142.8

143.6

144.3

145.2

146.3

147.2

147.9

147.6

148.6

149.0

148.5

148.1

147.3

60 Manufacturing .............................
Primary processing..................
61
62 Advanced processing .............

85.4
26.5
58.9

153.6
177.8
139.3

148.4
170.9
135.9

149.2
171.9
136.8

149.9
173.0
137.1

151.3
175.5
137.9

152.2
177.1
138.5

153.1
178.7
139.1

153.8
180.1
139.4

153.7
179.4
139.5

154.6
180.3
140.5

155.1
181.2
140.8

154.8
180.6
140.6

153.9
178.1
140.6

152.2
174.3
139.9

"24
25

45.0
2.0
1.4

193.3
118.2
142.8

182.6
122.8
138.9

185.1
122.9
138.9

186.3
122.3
140.7

188.9
121.9
139.3

191.0
121.6
140.7

193.0
120.5
143.0

194.6
118.7
141.9

194.7
118.6
142.6

196.9
115.5
143.8

198.4
116.8
146.6

197.2
114.7
147.3

196.0
112.6
145.6

193.5
111.4
143.5

32
33
331,2
331PT
3 3 3 -6 ,9
34

2.1
3.1
1.7
.1
1.4
5.0

134.5
133.2
130.5
120.2
136.6
135.4

133.4
136.6
135.4
127.4
138.3
133.3

132.8
136.3
134.8
126.4
138.3
134.9

133.6
134.7
133.5
121.7
136.4
135.8

134.4
137.1
136.9
125.8
137.6
135.6

132.9
137.8
136.8
127.3
139.1
135.9

134.2
136.7
135.9
127.1
137.9
136.2

134.6
136.4
135.5
128.2
137.6
135.7

136.3
133.9
129.9
126.4
138.8
136.1

136.1
132.4
129.7
123.9
135.7
136.3

136.5
133.9
131.9
117.7
136.5
136.0

137.0
128.4
123.7
115.6
133.9
136.0

134.1
127.9
121.8
106.3
135.1
134.7

131.5
120.5
110.8
96.9
131.9
131.2

63
64
65
66

79
80

Durable goods...........................
Lumber and products...........
Furniture and fixtures...........
Stone, clay, and glass
products........................
Primary metals ....................
Iron and steel....................
Raw steel......................
Nonferrous........................
Fabricated metal products . .
Industrial machinery and
equipm ent....................
Computer and office
equipm ent....................
Electrical machinery.............
Transportation equipment. . .
Motor vehicles and parts .
Autos and light trucks .
Aerospace and
miscellaneous
transportation
equipm ent.............
Instruments...........................
Miscellaneous......................

81
82
83
84
85
86
87
88
89
90
91

Nondurable goods....................
Foods ....................................
Tobacco products..................
Textile mill products...........
Apparel products..................
Paper and products .............
Printing and publishing . . . .
Chemicals and products . . . .
Petroleum products.............
Rubber and plastic products .
Leather and products...........

20
21
22
23
26
27
28
29
30
31

40.4
9.4
1.6
1.8
2.2
3.6
6.7
9.9
1.4
3.5
.3

116.9
114.7
95.3
99.9
91.6
116.1
110.2
128.6
116.7
142.3
69.9

116.5
113.0
97.8
103.4
94.0
118.8
108.6
127.0
115.4
142.7
70.5

116.0
113.3
99.8
103.6
93.4
117.5
108.9
124.8
113.7
143.2
72.1

116.3
114.1
97.4
103.8
94.3
117.4
108.9
124.9
115.5
143.2
71.4

116.6
114.9
94.3
104.4
94.1
117.8
109.7
124.9
118.9
143.0
70.6

116.7
114.7
95.6
104.4
94.6
118.4
109.1
125.2
117.2
143.5
70.0

116.7
114.2
95.3
102.6
93.0
116.5
109.9
126.3
118.9
142.6
70.5

116.7
114.9
93.8
103.1
91.2
118.8
109.1
125.9
118.8
143.5
69.3

116.3
115.0
95.8
101.4
92.0
114.9
110.0
124.8
117.0
144.4
70.0

116.3
115.1
96.6
99.4
90.7
113.3
110.4
125.9
117.6
142.1
68.8

116.0
114.6
94.5
98.4
89.5
113.7
110.9
125.4
117.4
141.9
69.8

116.4
114.8
93.7
96.7
89.2
117.2
111.6
126.1
116.5
141.3
68.8

115.8
114.8
93.1
92.3
89.1
114.8
111.8
125.7
116.4
139.7
69.1

114.7
114.5
94.1
92.2
87.7
112.3
111.5
125.0
110.0
137.0
68.0

92 M ining..........................................
93
M e ta l........................................
94
C o a l..........................................
Oil and gas extraction.............
95
Stone and earth m inerals.........
96

10
12
13
14

6.9
.5
1.0
4.8
.6

100.0
97.2
109.1
95.0
126.3

98.7
98.6
108.2
93.4
126.3

98.6
101.3
106.8
93.5
124.9

99.1
99.1
102.6
94.0
131.7

100.4
99.7
110.1
94.6
133.4

99.9
98.8
112.6
94.0
130.4

99.6
95.7
112.2
94.3
123.9

100.4
97.5
113.6
94.8
127.7

100.5
92.9
110.3
95.7
124.4

101.0
95.8
109.3
96.3
125.0

100.4
99.3
107.0
95.7
123.7

100.4
96.7
110.2
95.4
124.6

100.3
95.5
108.6
95.7
122.6

100.6
95.4
108.2
96.3
119.5

97 Utilities..........................................
Electric...................................... 491.493PT
98
99
Gas .......................................... 492.493PT

7.7
6.2
1.6

120.9
123.7
111.8

117.4
121.2
104.1

117.8
120.8
106.8

119.5
121.0
113.1

114.7
119.7
98.3

118.7
122.8
104.4

121.6
125.2
108.7

121.7
124.8
110.5

119.1
121.1
111.0

122.1
126.1
108.4

121.7
124.7
110.5

119.4
122.1
109.1

123.9
126.3
114.4

132.0
131.3
130.4

80.5

152.6

147.2

147.9

148.7

150.1

151.0

151.7

152.6

153.2

153.5

153.9

154.2

154.0

152.6

83.6

145.4

141.2

141.9

142.3

143.6

144.4

145.2

145.8

145.4

146.2

146.5

146.1

145.2

143.5

1,048.5

1,097.8

1,140.2

1,193.1

1,248.0

1,281.6

1,310.3

1,331.5

1,361.1

1,378.6

67
68
69
70
71
72
73
74
75
76
77
78

35

8.0

252.8

232.8

238.7

242.1

245.8

247.2

249.9

250.9

253.9

257.9

260.0

262.3

261.9

260.8

357
36
37
371
371PT

1.8
7.3
9.5
4.9
2.6

1,347.9
550.7
130.5
169.6
153.1

1,094.0
445.5
130.7
169.4
152.2

1,149.5
460.2
132.0
172.7
157.1

1,195.9
474.8
130.7
170.3
155.1

1,224.7
495.2
131.9
172.5
156.0

1,245.1
516.5
132.1
174.1
159.2

1,272.3
533.8
133.6
177.6
161.1

1,316.2
555.0
133.5
176.1
160.1

1,370.4
571.2
128.0
163.1
147.8

1,421.6
580.0
132.4
173.9
156.4

1,464.2
592.2
132.4
175.5
158.8

1,498.8
594.8
128.5
165.7
145.8

1,521.4
604.8
124.0
154.5
140.4

1,527.6
610.7
120.8
148.2
133.3

3 7 2 -6 ,9
38
39

4.6
5.4
1.3

93.8
122.3
130.8

94.2
120.8
130.9

93.8
120.6
131.6

93.5
119.7
130.9

93.7
120.2
130.6

92.7
121.5
130.9

92.3
121.3
130.7

93.6
122.2
130.5

94.9
122.6
132.1

93.5
123.3
130.8

92.1
123.7
130.9

93.6
123.4
131.1

95.1
124.6
130.0

94.7
124.3
129.5

Special Aggregates
100 Manufacturing excluding motor
vehicles and p a rts ...............
101 Manufacturing excluding
computer and office
equipment ...........................
102 Computers, communicatioas
equipment, and
semiconductors....................
103 Manufacturing excluding
computers and
semiconductors....................
104 Manufacturing excluding
computers, communications
equipment, and
semiconductors....................

5.9

' 1,T98.4

905.9

955.1

999.4

81.1

128.2

126.9

127.1

127.1

127.8

128.0

128.4

128.4

127.7

128.2

128.4

127.9

126.9

125.2

79.5

125.0

124.3

124.3

124.3

124.9

125.1

125.4

125.3

124.5

124.9

125.0

124.5

123.4

121.6

Gross value (billions of 1992 dollars, annual rates)

Major Markets
105 Products, total.............................

2,001.9

2,860.4

2,812.2

2,828.5

2,846.9

2,853.1

2,868.9

2,872.7

2,883.5

2,865.7

2,882.9

2,889.1

2,866.6

2,865.5

2,847.7

106 Final ............................................

1,552.1

2,203.3

2,156.4

2,170.2

2,183.5

2,186.3

2,202.8

2,205.6

2,218.6

2,202.8

2,220.5

2,228.1

2,206.2

2,206.9

2,192.8

107 Consumer goods......................
Equipment ...............................
108
109 Intermediate.................................

1,049.6
502.5
449.9

1,340.0
865.5
656.7

1,337.2
822.1
654.7

1,334.8
840.3
657.2

1,342.3
846.2
662.3

1,338.5
854.0
665.6

1,347.2
862.2
665.0

1,349.8
862.2
666.0

1,357.8
867.3
663.9

1,338.7
872.8
661.8

1,348.7
880.8
661.5

1,353.7
883.3
660.2

1,335.2
881.2
659.5

1,336.5
880.4
657.6

1,327.1
875.8
654.0

1.
Data in this table appear in the Board’s G.17 (419) monthly statistical release. The data
are also available on the Board’s web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in December 2000. The recent annual revision is described in an article in the
March 2001 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacity utilization, see “Industrial Production and Capacity Utilization:




Historical Revision and Recent Developments,” Federal Reserve Bulletin, vol. 83 (February
1997), pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, see “Industrial Production: 1989 Developments and
Historical Revision,” Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Standard industrial classification.

A46
2.14

Domestic Nonfinancial Statistics □ March 2001
HOUSING AND CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted

Feb.

Mar.

Apr.

May

June

Julyr

Aug.r

Sept.r

Oct.r

Private residential real estate activity (thousands of units except as noted)
NEW UNITS
1
2
3
4
5
6
7
8
9
10
11
12
13

Permits authorized ....................................
One-family .............................................
Two-family or m o r e .............................
S ta rte d ..........................................................
One-family .............................................
Two-family or m o r e .............................
Under construction at end of period1 .........
One-family .............................................
Two-family or m o r e .............................
C om pleted...................................................
One-family .............................................
Two-family or m o r e .............................
Mobile homes s h ip p e d .............................

1,441
1,062
379
1,474
1,134
340
847
555
292
1,400
1,116
284
354

1,612
1,188
425
1,617
1,271
346
971
659
312
1,474
1,160
315
374

1,664
1,247
417
1,667
1,335
332
993
679
314
1,636
1,307
329
348

Merchant builder activity in
one-family units
14 Number s o l d ...............................................
15 Number for sale at end of period1 ...........

804
287

886
300

907
326

905
309

947
321

865
305

875
308

Price o f units sold (thousands
o f dollars)2
16 Median ........................................................
17 Average ........................................................

146.0
176.2

152.5
181.9

160.0
195.8

162.3
199.6

165.7
205.3

163.1
207.5

18 Number s o l d ...............................................

4,382

4,970

5,197

4,760

5,200

Price o f units sold (thousands
o f dollars)2
19 Median ........................................................
20 A v e ra g e ........................................................

121.8
150.5

128.4
159.1

133.3
168.3

133.7
168.1

134.7
171.5

1,661
1,223
22,288r
1,822
1,324
6,599r
1,041
712
14,504r
1,732
1,382
n.a.r
291

1,597
1,238
16,945r
1,630
1,327
8,545r
1,031
706
51,117r
1,728
1,375
n.a.r
287

1,511
1,117
8,035
1,527
1,201
15,685
1,020
691
33,557
1,531
1,216
n.a.
251

1,486
1,140
12,877
1,519
1,229
13,501
1,016
692
39,051
1,612
1,266
n.a.
249

1,518
1,157
6,390
1,537
1,226
14,210
1,009
689
57,229
1,559
1,215
n.a.
231

1.546
1,191
9,121
1,529
1,232
5,803
1,012
693
31,678
1.546
1,212
n.a.
213

1,598
1,183
11,498
1,570
1,239
10,203
1,010
690
46,673
1,575
1,273
n.a.
196

827
312

914
311

860
313

939
310

929
313

909
317

165.0
200.1

159.9
197.7

168.6
202.4

165.0
200.4

169.9
207.2

170.0
212.0

169.9
205.8

4,880

5,090

5,310

4,820

5,280

5,160

5,000

5,220

136.1
173.3

137.6
176.0

140.2
178.9

143.3
177.7

143.2
183.0

141.6
178.6

138.6
176.9

139.9
176.2

1,559
1,164
21,022r
1,652
1,310
3,989r
1,029
703
1 l,859r
1,660
1,354
n.a.r
271

1,511
1,150
4,706r
1,591
1,258
9,553r
1,023
697
32,695r
1,705
1,377
n.a.r
265

1,528
1,127
7,873r
1,571
1,227
14,080r
1,024
696
55,458r
1,545
1,222
n.a.r
262

E xisting U nits (one-family)

Value of new construction (millions of dollars)3
C onstruction
21 Total put in place ....................................

656,084

710,104

765,719

816,012

829,517

816,156

811,816

798,860

793,036

801,748

813,477

820,157

815,637

22 P riv a te ..........................................................
23
Residential...............................................
24
N onresidential........................................
25
Industrial b uildings...........................
26
Commercial buildings......................
27
Other b u ild in g s..................................
28
Public utilities and other ................

501,426
289,101
212,325
36,696
86,151
37,193
52,287

550,983
314,058
236,925
40,464
95,753
39,607
61,101

592,037
348,584
243,454
35,016
103,759
41,279
63,400

629,590
368,745
260,845
38,538
115,440
45,553
61,314

637,743
372,118
265,625
39,030
116,030
45,808
64,757

629,491
368,948
260,543
38,670
115,042
44,136
62,695

629,820
367,653
262,167
39,814
113,381
45,540
63,432

624,383
363,756
260,627
39,951
112,834
44,559
63,283

619,046
355,196
263,850
42,081
112,114
45,689
63,966

616,918
350,783
266,135
41,552
115,279
46,779
62,525

625,317
351,682
273,635
40,872
118,445
46,689
67,629

632,851
359,058
273,793
42,552
117,907
47,686
65,648

632,237
353,768
278,469
48,390
115,482
46,811
67,786

29 Public ..........................................................
30
M ilita ry ...................................................
31
Highway .................................................
32
Conservation and development .........
33
O t h e r .......................................................

154,657
2,561
43,886
5,708
102,502

159,121
2,538
48,339
5,421
102,823

173,682
2,122
54,447
6,002
111,110

186,422
3,011
53,145
6,975
123,291

191,774
2,249
59,007
6,494
124,024

186,665
2,180
55,923
5,840
122,722

181,995
2,246
51,966
5,363
122,420

174,477
2,157
48,148
5,832
118,340

173,990
2,100
49,262
4,875
117,753

184,830
2,331
52,694
5,629
124,176

188,160
2,418
53,183
6,158
126,401

187,305
1,844
48,138
6,748
130,575

183,400
2.366
46,960
5,392
128.682

1. Not at annual rates.
2. Not seasonally adjusted.
3. Recent data on value of new construction may not be strictly comparable with data for
previous periods because of changes by the Bureau of the Census in its estimating techniques.
For a description of these changes, see Construction Reports (C -30-76-5), issued by the
Census Bureau in July 1976.




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 season­
ally adjusted by the Census Bureau, and (2) sales and prices of existing units, which are
published by the National Association of Realtors. All back and current figures are available
from the originating agency. Permit authorizations are those reported to the Census Bureau
from 19,000 jurisdictions beginning in 1994.

Selected Measures
2.15

A47

CONSUMER A N D PRODUCER PRICES
P e rc e n ta g e c h a n g e s b a s e d o n s e a s o n a lly a d ju s te d d a ta e x c e p t as n o te d
Change from 3 months earlier
(annual rate)

Change from 1 month earlier

2000

Change from 12
months earlier

2000

Item
1999
Dec.

Index
level,
Dec.
2000'

2000
Dec.
Mar.

June

Sept.

Dec.

Aug.

Sept.

Oct.

Nov.

Dec.

C onsum er P r ices 2
(1982-84=100)
1 All ite m s ..................................................................

2.7

3.4

6.1

2.6

2.8

2.1

- .1

.5

.2

.2

.2

174.0

2 Food .........................................................................
3 Energy ite m s ............................................................
4 All items less food and energy ...........................
5
Com m odities........................................................
6
Services ................................................................

1.9
13.4
1.9
.2
2.7

2.8
14.2
2.6
.6
3.4

1.7
50.5
3.4
.3
4.7

2.7
6.6
2.2
.0
3.0

3.9
3.5
2.7
1.7
3.0

2.6
1.6
2.0
.3
2.8

.2
- 2 .9
.2
- .1
.3

.2
3.8
.3
.5
.1

.1
.2
.2
- .1
.2

.0
.1
.3
.3
.3

.5
.2
.1
- .2
.1

170.0
128.1
182.8
145.1
204.4

7 Finished goods ........................................................
8
Consumer foods .................................................
9
Consumer energy ...............................................
10
Other consumer goods ......................................
11
Capital equipment ............................................

2.9
.8
18.1
1.2
.3

3.6
1.7
17.1
1.2
1.2

7.9
3.6
51.8
.8
.9

2.3
2.7
8.3
1.0
1.2

2.0
- 2 .3
8.6
2.1
1.7

2.0
2.7
4.6
1.0
.9

- .4
—.1'
- 1 .8 r
,3r
.1

,8r
,2r
4.2r
.r
,r

.4
.8
1.4
.0
.0

.1
.2
.4
- .1
.0

.0
- .4
- .7
.3
.2

139.7
137.9
97.9
155.3
139.9

Intermediate materials
12 Excluding foods and f e e d s ....................................
13 Excluding energy ...................................................

4.0
1.9

4.2
1.6

9.5
4.2

3.1
2.7

3.1
.3

.9
- .6

- .3
- .1

.7
.0

.2
.0

- .2
—.!

.2
.0

131.5
136.8

Crude materials
14 Foods .........................................................................
15 E n e rg y .......................................................................
16 Other .........................................................................

- .1
36.9
14.0

7.2
76.0
- 5 .8

21.5
84.9
9.9

- 1 0 .4
163.6
- 1 0 .7

-1 4 .0
11.8
-1 0 .5

41.2
76.1
-1 0 .8

—
4.3r
- 4 .r
—1.7r

3.6r
9.7r
,6r

3.5
4.6
- .6

1.3
-4 .1
- 2 .3

3.9
14.8
.0

103.9
154.7
137.5

P roducer P rices
(1982=100)

1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence
measure of homeownership.




SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.

A48
2.16

Domestic Nonfinancial Statistics □ March 2001
GROSS DOMESTIC PRODUCT AND INCOME
B illio n s o f c u rre n t d o lla rs e x c e p t a s n o ted ; q u a rte rly d a ta at s e a s o n a lly a d ju s te d a n n u a l ra te s

1999
Account

1997

1998

2000

1999
Q3

Q4

Ql

Q2

Q3

G r o s s D o m e s t ic P r o d u c t

1 T o ta l........................................................................................................................

8,318.4

8,790.2

9,299.2

9,340.9

9,559.7

9,752.7

9,945.7

10,039.4

By source
Personal consumption expenditures ................................................................
Durable goods ..................................................................................................
Nondurable goods ...........................................................................................
Services .............................................................................................................

5,529.3
642.5
1,641.6
3,245.2

5,850.9
693.9
1,707.6
3,449.3

6,268.7
761.3
1,845.5
3,661.9

6,319.9
767.2
1,860.0
3,692.7

6,446.2
787.6
1,910.2
3,748.5

6,621.7
826.3
1,963.9
3,831.6

6,706.3
814.3
1,997.6
3,894.4

6,810.8
824.7
2,031.5
3,954.6

6 Gross private domestic in v estm e n t..................................................................
7
Fixed investment .............................................................................................
8
Nonresidential .............................................................................................
9
Structures ..................................................................................................
10
Producers’ durable e q u ip m en t..............................................................
11
Residential structures..................................................................................

1,390.5
1,327.7
999.4
255.8
743.6
328.2

1,549.9
1,472.9
1,107.5
283.2
824.3
365.4

1,650.1
1,606.8
1,203.1
285.6
917.4
403.8

1,659.1
1,622.4
1,216.8
281.2
935.6
405.6

1,723.7
1,651.0
1,242.2
290.4
951.8
408.8

1,755.7
1,725.8
1,308.5
308.9
999.6
417.3

1,852.6
1,780.5
1,359.2
315.1
1,044.1
421.3

1,869.3
1,803.0
1,390.6
330.1
1,060.5
412.4

Change in business invento ries.....................................................................
N o n fa rm ........................................................................................................

62.9
60.0

77.0
76.4

43.3
43.6

36.7
42.0

72.7
71.8

29.9
32.4

72.0
72.2

66.4
67.5

14 Net exports of goods and services ..................................................................
15
E x p o rts ...............................................................................................................
16
I m p o rts ...............................................................................................................

-8 9 .3
966.4
1,055.8

-1 5 1 .5
966.0
1,117.5

-2 5 4 .0
990.2
1,244.2

-2 8 0 .5
999.5
1,280.0

-2 9 9 .1
1,031.0
1,330.1

-3 3 5 .2
1,051.9
1,387.1

-3 5 5 .4
1,092.9
1,448.3

-3 8 9 .5
1,130.8
1,520.3

17 Government consumption expenditures and gross investment ..................
18
Federal ...............................................................................................................
19
State and local ..................................................................................................

1,487.9
538.2
949.7

1,540.9
540.6
1,000.3

1,634.4
568.6
1,065.8

1,642.4
570.4
1,072.1

1,688.8
591.6
1,097.3

1,710.4
580.1
1,130.4

1,742.2
604.5
1,137.7

1,748.8
594.2
1,154.6

By major type o f product
20 Final sales, to ta l ....................................................................................................
21
G o o d s .................................................................................................................
22
D u ra b le ..........................................................................................................
23
N ondurable....................................................................................................
24
Services .............................................................................................................
25
Structures ...........................................................................................................

8,255.5
3,082.5
1.436.2
1,646.4
4,442.1
730.9

8,713.2
3,239.3
1,532.3
1,707.1
4,673.0
800.9

9,255.9
3,467.0
1,651.1
1,815.8
4,934.6
854.3

9,304.2
3,490.6
1,669.4
1,821.1
4,965.2
848.5

9,486.9
3,566.0
1,701.8
1,864.1
5,050.3
870.7

9,722.8
3,680.3
1,773.7
1,906.6
5,135.2
907.4

9,873.7
3,734.1
1,809.6
1,924.5
5,231.4
908.2

9,973.1
3,776.5
1,830.6
1,945.9
5,281.6
915.0

26 Change in business inventories.........................................................................
27
Durable goods ..................................................................................................
28
Nondurable goods ...........................................................................................

62.9
33.1
29.8

77.0
45.8
31.2

43.3
27.2
16.1

36.7
27.6
9.1

72.7
47.5
25.2

29.9
20.7
9.2

72.0
48.3
23.7

66.4
39.2
27.2

8,159.5

8,515.7

8,875.8

8,905.8

9,084.1

9,191.8

9,318.9

9,369.5

30 T o ta l........................................................................................................................

6,618.4

7,038.1

7,469.7

7,493.1

7,680.7

7,833.5

7,983.2

8,088.5

31 Compensation of employees ..............................................................................
32
Wages and salaries .........................................................................................
33
Government and government e n te rp rise s..............................................
34
Other .............................................................................................................
35
Supplement to wages and salaries ..............................................................
36
Employer contributions for social insurance ........................................
37
Other labor income ....................................................................................

4,651.3
3,886.0
664.3
3,221.7
765.3
289.9
475.4

4,984.2
4,192.8
692.7
3,500.1
791.4
305.9
485.5

5,299.8
4,475.1
724.4
3,750.7
824.6
323.6
501.0

5,340.9
4,512.2
727.5
3,784.7
828.7
325.9
502.8

5,421.1
4,583.5
734.5
3,849.0
837.7
330.3
507.4

5,512.2
4,660.4
749.9
3,910.5
851.8
337.8
514.0

5,603.5
4,740.1
760.2
3,980.0
863.3
342.9
520.5

5,679.6
4,804.9
765.4
4,039.5
874.7
347.1
527.6

38 Proprietors’ income1 ...........................................................................................
39
Business and professional1 ...........................................................................
40
Farm1 .................................................................................................................

581.2
551.5
29.7

620.7
595.2
25.4

663.5
638.2
25.3

659.7
644.2
15.5

689.6
657.9
31.7

693.9
674.8
19.1

709.5
688.1
21.5

724.8
693.1
31.7

2
3
4
5

12
13

M em o

29 Total GDP in chained 1996 d o lla r s ..............................................................
N ation al Income

41 Rental income of persons2 ................................................................................

128.3

135.4

143.4

136.6

146.2

145.6

140.8

138.1

42 Corporate profits' ...............................................................................................
43
Profits before tax3 ...........................................................................................
44
Inventory valuation adjustm en t.....................................................................
45
Capital consumption a d justm en t...................................................................

833.8
792.4
8.4
32.9

815.0
758.2
17.0
39.9

856.0
823.0
-9 .1
42.1

842.0
819.0
-1 9 .7
42.7

893.2
870.7
- 1 9 .2
41.6

936.3
920.7
-2 5 .0
40.6

963.6
942.5
-1 3 .6
34.7

970.3
945.1
-4 .5
29.7

46 Net in te rest............................................................................................................

423.9

482.7

507.1

513.8

530.6

545.4

565.9

575.7

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey o f Current Business.

Selected Measures
2.17

A49

PERSONAL INCOME AND SAVING
B illio n s o f c u rre n t d o lla rs e x c e p t as n o te d ; q u a rte rly d a ta a t s e a s o n a lly a d ju s te d a n n u a l rate s
2000

1999
Account

1997

1998

1999
Q3

Q4

Q2

Ql

Q3

P erso na l In co m e a nd Sa ving
1 Total personal income ....................................................................................

6,937.0

7,391.0

7,789.6

7,828.5

7,972.3

8,105.8

8,242.1

8,349.0

2 Wage and salary disbursem ents.......................................................................
3
Commodity-producing industries................................................................
4
Manufacturing ...........................................................................................
5
Distributive industries ..................................................................................
6
Service industries ...........................................................................................
7
Government and government enterprises .................................................

3,888.9
975.1
718.4
879.6
1,369.9
664.3

4,190.7
1,038.6
756.6
949.1
1,510.3
692.7

4,470.0
1,089.2
782.4
1,020.3
1,636.0
724.4

4,507.0
1,097.8
789.0
1,029.9
1,651.8
727.5

4,578.3
1,111.2
795.1
1,049.4
1,683.2
734.5

4,660.4
1,130.9
802.8
1,070.9
1,708.6
749.9

4,740.1
1,147.1
813.1
1,095.7
1,737.2
760.2

4,804.9
1,161.4
821.4
1,118.1
1,760.1
765.4

475.4
581.2
551.5
29.7
128.3
334.9
864.0
962.2
565.8

485.5
620.7
595.2
25.4
135.4
351.1
940.8
983.0
578.0

501.0
663.5
638.2
25.3
143.4
370.3
963.7
1,016.2
588.0

502.8
659.7
644.2
15.5
136.6
373.5
969.4
1,020.3
589.7

507.4
689.6
657.9
31.7
146.2
380.2
989.0
1,027.4
592.8

514.0
693.9
674.8
19.1
145.6
386.9
1,011.6
1,046.9
607.9

520.5
709.5
688.1
21.5
140.8
392.6
1,031.3
1,066.1
624.3

527.6
724.8
693.1
31.7
138.1
399.7
1,042.9
1,074.2
627.2

8
9
10
11
12
13
14
15
16

Other labor income ...........................................................................................
Proprietors’ income1 .........................................................................................
Business and professional1 .........................................................................
Farm1 ...............................................................................................................
Rental income of persons2 ................................................................................
Dividends .............................................................................................................
Personal interest income ..................................................................................
Transfer payments .............................................................................................
Old-age survivors, disability, and health insurance benefits ................

17

LESS: Personal contributions for social insurance .................................

297.9

316.2

338.5

341.0

345.9

353.4

358.8

363.1

18 EQUALS: Personal income ................................................................................

6,937.0

7,391.0

7,789.6

7,828.5

7,972.3

8,105.8

8,242.1

8,349.0

19

LESS: Personal tax and nontax payments .................................................

20 EQUALS: Disposable personal income
21

968.8

1,070.9

1,152.0

1,164.0

1,197.3

1,239.3

1,277.2

1,308.1

..........................................................

5,968.2

6,320.0

6,637.7

6,664.5

6,775.0

6,866.5

6,964.9

7,040.9

LESS: Personal o u tla y s ..................................................................................

5,715.3

6,054.7

6,490.1

6,543.3

6,674.1

6,855.6

6,944.3

7,054.7

22 EQUALS: Personal s a v in g ..................................................................................

252.9

265.4

147.6

121.1

101.0

11.0

20.6

- 1 3 .8

M emo
Per capita (chained 1996 dollars)
23 Gross domestic product ....................................................................................
24 Personal consumption expenditures................................................................
25 Disposable personal income ...........................................................................

30,434.4
20,230.9
21,838.0

31,474.2
20,988.5
22,672.0

32,512.4
21,900.7
23,191.0

32,586.0
22,004.4
23,203.0

33,153.5
22,266.4
23,404.0

33,485.6
22,635.5
23,472.0

33,874.7
22,757.7
23,639.0

33,984.3
22,959.1
23,732.0

26 Saving rate (percent) .........................................................................................

4.2

4.2

2.2

1.8

1.5

.2

.3

- .2

27 Gross saving ......................................................................................................

1,502.3

1,654.4

1,717.6

1,716.8

1,746.3

1,777.0

1,844.5

1,854.7

28 Gross private s a v in g ...........................................................................................

1,343.7

1,375.7

1,343.5

1,321.1

1,331.4

1,279.2

1,328.8

1,319.2

29 Personal s a v in g ....................................................................................................
30 Undistributed corporate profits1 .......................................................................
31 Corporate inventory valuation adjustment ...................................................

252.9
261.3
8.4

265.4
218.9
17.0

147.6
229.4
-9 .1

121.1
214.0
-1 9 .7

101.0
241.7
- 1 9 .2

11.0
262.7
-2 5 .0

20.6
278.5
-1 3 .6

-1 3 .8
279.6
- 4 .5

Capital consumption allowances
32 Corporate .............................................................................................................
33 Noncorporate ......................................................................................................

581.5
250.9

624.3
265.1

676.9
284.5

687.7
293.1

694.8
288.7

711.5
294.1

731.1
298.7

750.0
303.3

34 Gross government s a v in g ..................................................................................
35
Federal .............................................................................................................
36
Consumption of fixed c a p ita l..................................................................
37
Current surplus or deficit ( —), national accounts.................................
38
State and local ...............................................................................................
39
Consumption of fixed c a p ita l..................................................................
40
Current surplus or deficit ( - ) , national accounts.................................

158.6
33.4
86.8
-5 3 .3
125.2
94.2
31.0

278.7
137.4
88.4
49.0
141.3
99.5
41.7

374.1
217.3
92.8
124.4
156.8
106.8
50.0

395.7
240.6
93.4
147.3
155.1
107.7
47.4

414.9
238.4
95.0
143.3
176.6
109.9
66.6

497.7
333.0
97.2
235.8
164.7
112.7
52.0

515.7
339.9
98.9
240.9
175.8
115.6
60.1

535.5
354.1
100.8
253.3
181.4
118.2
63.2

41 Gross investment .............................................................................................

1,532.1

1,629.6

1,645.6

1,627.3

1,678.5

1,699.3

1,771.9

1,752.8

42 Gross private domestic investment ................................................................
43 Gross government investment .........................................................................
44 Net foreign investm ent.......................................................................................

1,390.5
264.6
-123.1

1,549.9
278.8
-1 99.1

1,650.1
308.7
-3 1 3 .2

1,659.1
308.0
-3 3 9 .8

1,723.7
324.4
-3 6 9 .6

1,755.7
334.2
-3 9 0 .7

1,852.6
331.9
-4 1 2 .5

1,869.3
333.6
-450.1

45 Statistical discrepancy ....................................................................................

29.7

-2 4 .8

-7 1 .9

-8 9 .5

- 6 7 .8

- 7 7 .7

-7 2 .5

-1 0 1 .8

G r o s s s av in g

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




SOURCE.

U.S. Department of Commerce, Survey o f Current Business.

A50
3.10

International Statistics □ March 2001
U.S. INTERNATIONAL TRANSACTIONS

Summary

Millions of dollars; quarterly data seasonally adjusted except as noted1
1999
Item credits or debits

1997

1998

2000

1999
Q3

1 Balance on current account .......................................................................
2
Balance on goods and services ............................................................
3
Exports ..................................................................................................
4
Imports ..................................................................................................
5
Income, n e t ...............................................................................................
6
Investment, n e t ....................................................................................
7
Direct ...............................................................................................
8
Portfolio ...........................................................................................
9
Compensation of employees ............................................................
10
Unilateral current transfers, n e t ............................................................

-1 4 0 ,5 4 0
-1 05,932
936,937
-1,042,869
6,186
11,050
71,935
-6 0 ,8 8 5
-4 ,8 6 4
-4 0 ,7 9 4

-217,138
-166,898
932,977
-1,099,875
-6 ,211
-1 ,0 3 6
67,728
-6 8 ,7 6 4
-5 ,1 7 5
-4 4 ,0 2 9

Q4

Ql

Q2

Q3

-3 31,479
-264,971
956,242
-1,221,213
-1 8,483
-1 3 ,1 0 2
62,704
-7 5 ,8 0 6
-5,381
-4 8 ,0 2 5

-8 9 ,6 4 9
-7 2 ,7 1 8
241,969
-3 14,687
-5 ,5 3 5
-4 ,1 9 3
15,701
-1 9 ,8 9 4
-1 ,3 4 2
-1 1 ,3 9 6

-9 6 ,2 2 3
-7 6 ,2 8 0
249,653
-3 2 5 ,9 3 3
-5 ,6 8 3
-4 ,3 1 9
16,275
-2 0 ,5 9 4
-1 ,3 6 4
-1 4 ,2 6 0

-101,505
-8 5 ,1 1 7
255,977
-3 41,094
-4 ,3 6 4
-2 ,9 8 7
17,068
-2 0 ,0 5 5
-1 ,3 7 7
-1 2 ,0 2 4

-104,971
-8 8 ,5 9 8
265,969
-3 54,567
-4 ,1 0 3
-2 ,7 0 6
19,015
-21,721
-1 ,3 9 7
-1 2 ,2 7 0

-1 1 3 ,7 7 3
-9 6 ,5 0 3
274,657
-3 7 1 ,1 6 0
-4 ,5 1 8
-3 ,1 7 2
21,558
-2 4 ,7 3 0
-1 ,3 4 6
-1 2 ,7 5 2

11 Change in U.S. government assets other than official
reserve assets, net (increase, —) .....................................................

68

-4 2 2

2,751

-6 8 6

3,711

-1 3 1

-5 7 4

110

12 Change in U.S. official reserve assets (increase, - ) .............................
13
Gold ..........................................................................................................
14
Special drawing rights (SDRs) ............................................................
15
Reserve position in International Monetary Fund ...........................
16
Foreign currencies ..................................................................................

-1 ,0 1 0
0
-3 5 0
-3 ,5 7 5
2,915

-6 ,7 8 3
0
-1 4 7
-5 ,1 1 9
-1 ,5 1 7

8,747
0
10
5,484
3,253

1,951
0
-1 8 4
2,268
-1 3 3

1,569
0
-1 7 8
1,800
-5 3

-5 5 4
0
-1 8 0
-2 3 7
-1 3 7

2,020
0
-1 8 0
2,328
-1 2 8

-3 4 6
0
-1 8 2
1,300
-1 ,4 6 4

17 Change in U.S. private assets abroad (increase, - ) .............................
18
Bank-reported claims2 ............................................................................
19
Nonbank-reported c la im s .......................................................................
20
U.S. purchases of foreign securities, n e t ............................................
21
U.S. direct investments abroad, n e t .....................................................

-4 87,998
-1 4 1 ,1 1 8
-1 2 2 ,8 8 8
-1 1 8 ,9 7 6
-1 0 5 ,0 1 6

-328,231
-3 5 ,5 7 2
-1 0 ,6 1 2
-135,995
-146,052

-4 41,685
-6 9 ,8 6 2
-9 2 ,3 2 8
-1 28,594
-150,901

-1 24,174
-1 1 ,2 5 9
-2 7 ,9 4 3
-4 1 ,4 2 0
-4 3 ,5 5 2

-1 2 0 ,1 6 2
-4 5 ,3 0 4
-2 4 ,4 2 8
-1 7 ,1 5 0
-3 3 ,2 8 0

-1 7 8 ,2 7 3
-55,511
-5 2 ,5 6 3
-2 7 ,2 3 6
-4 2 ,9 6 3

-9 3 ,8 7 0
18,320
-3 6 ,5 0 7
-3 8 ,1 9 6
-3 7 ,4 8 7

-7 6 ,9 6 8
-1 1 ,3 8 3
931
-3 0 ,4 2 8
-3 6 ,0 8 8

22 Change in foreign official assets in United States (increase, + ) ..................
23
US. Treasury securities .........................................................................
24
Other U.S. government obligations .....................................................
25
Other U.S. government lia b ilitie s '........................................................
26
Other U.S. liabilities reported by U.S. banks2 ...................................
27
Other foreign official assets3 ................................................................

18,876
-6 ,6 9 0
4.529
-1 ,041
22,286
-2 0 8

-2 0 ,1 2 7
-9,921
6,332
-3 ,5 5 0
-9,501
-3 ,4 8 7

42,864
12,177
20,350
-3 ,2 5 5
12,692
900

12,191
12,963
1,835
-7 6 0
-2 ,0 3 2
185

27,495
5,122
6,730
89
14,427
1,127

22,015
16,198
8,107
-6 4 4
-2 ,5 7 7
931

6,346
-4 ,0 0 0
10,334
-7 8 1
-1 1 1
904

11,625
-9,001
14,272
-6 2 0
6,339
635

28 Change in foreign private assets in United States (increase, + ) ..................
29
U.S. bank-reported liabilities4 ..............................................................
30
U.S. nonbank-reported liabilities ..........................................................
31
Foreign private purchases o f U.S. Treasury securities, net ...........
32
U.S. currency flow s..................................................................................
33
Foreign purchases of other U.S. securities, n e t .................................
34
Foreign direct investments in United States, net .............................

738,086
149,026
113,921
146,433
24,782
197,892
106,032

502,362
39,769
-7,001
48,581
16,622
218,075
186,316

710,700
67,403
34,298
-2 0 ,4 6 4
22,407
331,523
275,533

182,019
24,585
-8 ,0 8 5
9,639
4,697
95,620
55,563

157,072
19,618
792
-17,191
12,213
92,250
49,390

214,520
-8 ,8 2 4
58,061
-9 ,2 4 8
-6 ,8 4 7
132,416
48,962

238,803
46,943
24,038
-2 0 ,5 9 7
989
87,107
100,323

188,544
13,981
2,633
-1 2 ,6 4 2
757
118,882
64,933

35 Capital account transactions, net5 ............................................................
36 Discrepancy ..................................................................................................
37
Due to seasonal ad ju stm e n t...................................................................
38
Before seasonal adjustment ...................................................................

350
-1 27,832

637
69.702

-3 ,5 0 0
11,602

-1 2 7 ,8 3 2

69,702

11,602

171
18,177
-9 ,7 3 9
27,916

-3 ,9 9 3
30,531
5,738
24,793

166
43,762
5,724
38,038

170
-4 7 ,9 2 4
-2 ,5 1 5
-4 5 ,4 0 9

165
-9 ,3 5 7
-9 ,6 9 1
334

M emo
Changes in official assets
39 U.S. official reserve assets (increase, —) .................................................
40 Foreign official assets in United States, excluding line 25
(increase, + ) .........................................................................................
41 Change in Organization of Petroleum Exporting Countries official
assets in United States (part of line 22) ........................................

-1 ,0 1 0

-6 ,7 8 3

8,747

1,951

1,569

-5 5 4

2,020

-3 4 6

19,917

-1 6 ,5 7 7

46,119

12,951

27,406

22,659

7,127

12,245

12,124

-11,531

1,331

-7 8 3

-1 ,6 7 3

6,109

1,913

3,450

1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38-41.
2. Associated primarily with military sales contracts and other transactions arranged with
or through foreign official agencies.
3. Consists of investments in U.S. corporate stocks and in debt securities of private
corporations and state and local governments.
4. Reporting banks included all types of depository institutions as well as some brokers




and dealers.
5.
Consists of capital transfers (such as those of accompanying migrants entering or
leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced
nonfinancial assets.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey o f Current
Business.

Summary Statistics A51
3.11

U.S. FOREIGN TRADE1
M illio n s o f d o lla rs; m o n th ly d a ta s e a so n a lly a d ju s te d

2000
Item

1997

1998

1999
May

June

July

Aug.

Sept.

Oct.

Nov.p

I Goods and services, balance ...........................
2
Merchandise ...................................................
3
S e rv ic e s............................................................

-105,932
-196,665
90,733

-1 6 6 ,8 9 8
-2 46,854
79,956

-264,971
-3 45,559
80,588

-2 9 ,6 0 4
-3 6,475
6,871

-2 9 ,8 2 6
-3 6 ,8 6 2
7,036

-3 1 ,8 2 4
-3 8 ,5 2 4
6,700

-3 0 ,0 5 9
-3 6 ,6 8 4
6,625

-33,741
-3 9 ,3 2 9
5,588

-3 3 ,5 5 2
-3 9 ,8 8 7
6,335

-3 2 ,9 9 4
-39,001
6,007

4 Goods and services, exports ...........................
5
Merchandise ...................................................
6
S ervices............................................................

936,937
679,702
257,235

932,977
670,324
262,653

956,242
684,358
271,884

87,074
62,749
24,325

91,288
66,468
24,820

89,655
65,096
24,559

92,868
67,973
24,895

92,654
67,836
24,818

91,128
66,346
24,782

90,355
65,670
24,685

7 Goods and services, imports ...........................
8
Merchandise ...................................................
9
S ervices............................................................

1,042,869
876,367
166,502

1,099,875
917,178
182,697

1,221,213
1,029,917
191,296

-1 16,678
-9 9 ,2 2 4
-1 7 ,4 5 4

-1 21,114
-1 0 3 ,3 3 0
-1 7 ,7 8 4

-1 2 1 ,4 7 9
-1 0 3 ,6 2 0
-1 7 ,8 5 9

-1 22,927
-1 04,657
-1 8 ,2 7 0

-1 26,395
-1 07,165
-1 9 ,2 3 0

-1 2 4 ,6 8 0
-1 06,233
-1 8 ,4 4 7

-1 2 3 ,3 4 9
-104,671
-1 8 ,6 7 8

1. Data show monthly values consistent with quarterly figures in the U.S. balance of
payments accounts.

3.12

SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and Bureau of
Economic Analysis.

U.S. RESERVE ASSETS
M illio n s o f d o lla rs, e n d o f p e rio d

2000
Asset

1997

1998

2001

1999
June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.p

1 Total .......................................................................

69,954

81,761c

71,516

67,955c

66,516

65,333

66,256

65,257

65,523

67,647

67,542

2 Gold stock1
3 Special drawing rights2'3 ......................................
4 Reserve position in International Monetary
Fund2 ............................................................
5 Foreign currencies4 ............................................

1 l,047c
10,027

11,046c
10,603

11,048c
10,336

11,046c
10,444

11,046
10,257

11,046
10,371

11,046
10,316

11,046
10,169

11,046
10,369

11,046
10,539

11,046
10,497

18,071
30,809

24,111
36,001

17,950
32,182

15,428
31,037

15,083
30,130

13,798
30,118

13,685
31,209

13,528
30,514

13,491
30,617

14,824
31,238

15,079
30,920

1. Gold held “ under earmark” at Federal Reserve Banks for foreign and international
accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold
stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of
exchange rates for the currencies of member countries. From July 1974 through December
1980, sixteen currencies were used; since January 1981, five currencies have been used. U.S.

3.13

SDR holdings and reserve positions in the IMF also have been valued on this basis since July
1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the year
indicated, as follows: 1970— $867 million; 1971— $717 million; 1972— $710m illion; 1979—
$1,139 million; 1980— $1,152 million; 1981— $1,093 million; plus net transactions in SDRs.
4. Valued at current market exchange rates.

FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BAN K S1
M illio n s o f d o lla rs, e n d o f p e rio d

2000
Asset

1997

1998

2001

1999
June

1 Deposits ................................................................

457

167

71

Held in custody
2 U.S. Treasury securities2 ...................................
3 Earmarked gold3 ........................ .. v
...

620,885
10,763

607,574
_ 10,343
_

632,482
9,933

104
627,081
9,688 .

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.p

76

78

139

115

104

215

199

624,177
9,688

628,001
9,674

611,641
9,620

595,591
9,565

591,071
9,505

594,094
9,451

594,694
9,397

1. Excludes deposits and U.S. Treasury securities held for international and regional
3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not
organizations.
included in the gold stock of the United States.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury
securities, in each case measured at face (not market) value.




A52
3.15

International Statistics □ March 2001
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
M illio n s o f d o lla rs, e n d o f p e rio d

2000
Item

1999

1998

Mayr
1 Total1 .................................................................................................................
2
3
4
5
6
1
8
9
10
11
12

By type
Liabilities reported by banks in the United States .................................
U.S. Treasury bills and certificates3 ............................................................
U.S. Treasury bonds and notes
Marketable ....................................................................................................
Nonmarketable4 ...........................................................................................
U.S. securities other than U.S. Treasury securities5 .................................
By area
Europe1 ............................................................................................................
Canada ...............................................................................................................
Latin America and C a rib b e a n .......................................................................
Asia ...................................................................................................................
A f r ic a .................................................................................................................
Other countries ...............................................................................................

July

Aug.

Sept.

Oct.

Nov.p

759,928

806,318r

826,264

836,018

846,739

849,469

848,840

849,860

848,454

125,883
134,177

138,847r
156,177

135,770
148,814

136,072
157,190

139,627
160,093

136,989
159,781

143,010
155,498

145,902
155,101

146,734
155,069

432,127
6,074
61,667

422,266
6,111
82,917

435,235
5,808
100,637

433,823
5,740
103,193

433,184
5,180
108,655

433,633
5,213
113,853

427,007
5,247
118,078

419,857
5,280
123,720

414,890
5,313
126,448

256,026
10,552
79,503
400,631
10,059
3,157

244,805
12,503
73,518
463,703r
7,523
4,266

250,306
13,027
69,571
482,030
7,710
3,620

253,416
13,542
71,245
485,343
7,850
4,622

257,712
13,728
73,344
487,417
8,656
5,882

255,635
12,992
76,347
490,110
8,707
5,678

257,498
13,121
77,542
486,890
8,466
5,323

263,601
12,932
77,500
481,344
8,323
6,160

261,524
12,044
78,716
480,800
8,012
7,358

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 and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of
zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning
March 1988, 20-year maturity issue and beginning March 1990, 30-year maturity issue;

3.16

Juner

LIABILITIES TO, A ND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies

Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April
1993, 30-year maturity issue.
5.
Debt securities of U.S. government corporations and federally sponsored agencies, and
U.S. corporate stocks and bonds.
SOURCE. Based on U.S. Department of the Treasury data and on data reported to the
department by banks (including Federal Reserve Banks) and securities dealers in the United
States, and on the 1994 benchmark survey of foreign portfolio investment in the United
States.

Reported by Banks in the United States1

M illio n s o f d o lla rs, e n d o f p e rio d

1999
Item

1996

1997

2000

1998
Dec.

1 Banks’ liabilities ...........................................................................................
2 Banks’ claims ...............................................................................................
3
Deposits ......................................................................................................
4
Other c la im s...............................................................................................
5 Claims of banks’ domestic c u s to m e rs '.....................................................

103,383
66,018
22,467
43,551
10,978

1. Data on claims exclude foreign currencies held by U.S. monetary authorities.




117,524
83,038
28,661
54,377
8,191

101,125
78,162
45,985
32,177
20,718

Mar.

June

Sept.

88,537
67,365
34,426
32,939
20,826

85,649
63,492
32,967
30,525
21,753

85,842
67,862
31,224
36,638
18,802

78,872
60,355
25,847
34,508
19,123

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.

Bank-Reported Data
3.17

LIABILITIES TO FOREIGNERS
Payable in U.S. dollars

A53

Reported by Banks in the United States1

M illio n s o f d o lla rs, e n d o f p e rio d
2000
Item

1997

1998

1999
Mayr

July

June

Aug.

Sept.

Oct.

Nov.p

B y H o l d e r a n d Type o f L ia b ility
1 Total, all foreigners ................................................................

1,283,027

1,347,837

l,408,740r

1,452,912

l,451,491r l,480,318r l,444,482r l,453,627r

1,510,056

1,522,535

2 Banks’ own liabilities ..............................................................
3
Demand deposits ..................................................................
4
Time deposits2 .......................................................................
5
Other3 ......................................................................................
6
Own foreign offices4 ............................................................

882,980
31,344
198,546
168,011
485,079

884,939
29,558
151,761
140,752
562,868

971,536r
42,884
163,620r
155,853r
609,179r

1,032,104
29,097
177,128
171,892
653,987

l,012,619r
30,719
182,963r
168,148r
630,789r

1,073,433
29,500
185,459
194,628
663,846

1,070,942
31,701
192,442
187,079
659,720

7 Banks’ custodial liabilities5 .....................................................
8
U.S. Treasury bills and certificates6 .................................
9
Other negotiable and readily transferable
instruments7 ..................................................................
10
Other ......................................................................................

400,047
193,239

462,898
183,494

437,204r
185,676r

420,808
174,166

93,641
113,167

141,699
137,705

132,617r
118,911

11 Nonmonetary international and regional organizations8 . .
12
Banks’ own liabilities .........................................................
13
Demand deposits ..............................................................
14
Time deposits2 ..................................................................
Other3 ..................................................................................
15

11,690
11,486
16
5,466
6,004

11,883
10,850
172
5,793
4,885

Banks’ custodial liabilities5 .................................................
U.S. Treasury bills and certificates6 ............................
Other negotiable and readily transferable
instruments7 ..............................................................
Other ..................................................................................

204
69

1,050,467r
34,914
186,483
172,466r
656,604r

l,013,420r
30,101
184,820
173,97 l r
624,528r

1,027,122r
31,964
184,822
174,458
635,878r

438,872r
180,822r

429,851
182,699

431,062
180,925

426,505
174,604

436,623
173,984

451,593
173,846

123,580
123,062

124,670
133,380

120,624
126,528

119,212
130,925

120,296
131,605

129,724
132,915

132,453
145,294

15,276
14,357
98
10,349
3,910

22,807
22,109
36
11,393
10,680

21,366
20,924
34
12,545
8,345

16,689
16,294
30
10,305
5,959

14,630
14,377
26
9,062
5,289

15,658
15,404
19
7,627
7,758

17,104
16,751
48
5,925
10,778

17,074
16,676
30
6,549
10,097

1,033
636

919
680

698
582

442
432

395
371

253
217

254
223

353
215

398
249

133
2

397
0

233
6

113
3

10
0

21
3

26
10

26
5

138
0

147
2

20 Official institutions9 ..................................................................
21
Banks’ own liabilities .........................................................
Demand deposits ..............................................................
22
Time deposits2 ..................................................................
23
24
Other3 ..................................................................................

283,685
102,028
2,314
41,396
58,318

260,060
80,256
3,003
29,506
47,747

295,024r
97,615
3,341
28,942
65,332

284,584
87,899
2,781
31,846
53,272

293,262r
88,392r
2,887
33,696r
51,809r

299,720
92,739
4,063
34,641
54,035

296,770
90,985
4,573
32,009
54,403

298,508
95,049
5,213
36,679
53,157

301,003
102,104
4,361
34,015
63,728

301,803
101,213
4,702
35,013
61,498

Banks’ custodial liabilities5 ................................................
U.S. Treasury bills and certificates6 .............................
Other negotiable and readily transferable
instruments7 ..............................................................
Other ..................................................................................

181,657
148,301

179,804
134,177

197,409r
156,177

196,685
148,814

204,870
157,190

206,981
160,093

205,785
159,781

203,459
155,498

198,899
155,101

200,590
155,069

33,151
205

44,953
674

41,182r
50

47,734
137

47,611
69

46,363
525

45,644
360

47,660
301

43,753
45

44,828
693

29 Banks10........................................................................................
Banks’ own liabilities .........................................................
30
Unaffiliated foreign b a n k s ..............................................
31
Demand deposits .........................................................
32
Time deposits2 ..............................................................
33
34
Other3 .............................................................................
Own foreign offices4 .......................................................
35

815,247
641,447
156,368
16,767
83,433
56,168
485,079

885,336
676,057
113,189
14,071
45,904
53,214
562,868

900,379r
728,492r
119,313r
17,583
48,140
53,590r
609,179r

937,794
777,854
123,867
13,254
55,167
55,446
653,987

926,262r
755,644r
124,855r
14,543
58,095
52,217r
630,789r

955,206r
792,072r
135,468r
17,508
60,703
57,257r
656,604r

921,181r
754,093r
129,565r
11,959
62,841
54,765r
624,528r

927,099r
762,392r
126,514
12,918
59,958
53,638
635,878r

963,082
796,805
132,959
12,160
64,321
56,478
663,846

971,842
792,913
133,193
12,834
68,845
51,514
659,720

36
37
38

Banks’ custodial liabilities5 .................................................
U.S. Treasury bills and certificates6 .............................
Other negotiable and readily transferable
instruments7 ..............................................................
Other ..................................................................................

173,800
31,915

209,279
35,359

171,887'
16,796r

159,940
13,994

170,618r
13,08 l r

163,134
12,657

167,088
12,251

164,707
10,667

166,277
9,972

178,929
10,285

35,393
106,492

45,332
128,588

45,695
109,396

33,667
112,279

34,657
122,880

34,018
116,459

33,893
120,944

32,679
121,361

34,232
122,073

34,957
133,687

40 Other fo re ig n ers.........................................................................
41
Banks’ own liabilities ..........................................................
42
Demand deposits ..............................................................
Time deposits2 ..................................................................
43
44
Other3 ..................................................................................

172,405
128,019
12,247
68,251
47,521

190,558
117,776
12,312
70,558
34,906

198,06 l r
131,072r
21,862
76,189r
33,021

207,727
144,242
13,026
78,722
52,494

210,601r
147,659r
13,255
78,627
55,777r

208,743
149,362
13,313
80,834
55,215

211,901
153,965
13,543
80,908
59,514

212,362
154,277
13,814
80,558
59,905

228,867
157,773
12,931
81,198
63,644

231,816
160,140
14,135
82,035
63,970

44,386
12,954

72,782
13,322

66,989r
12,023r

63,485
10,776

62,942r
10,119r

59,381
9,579

57,936
8,676

58,085
8,216

71,094
8,696

71,676
8,243

24,964
6,468

51,017
8,443

45,507r
9,459

42,066
10,643

42,392
10,431

40,261
9,541

39,649
9,611

39,931
9,938

51,601
10.797

52,521
10,912

16,083

27,026

30,345

27,238

26,571

26,186

25,911

25,991

27,164

25,854

16
17
18
19

25
26
27
28

39

45
46
47
48

Banks’ custodial liabilities5 .................................................
U.S. Treasury bills and certificates6 .............................
Other negotiable and readily transferable
instruments7 ..............................................................
Other ..................................................................................

M emo
49 Negotiable time certificates of deposit in custody for
foreigners ...........................................................................

1. Reporting banks include all types of depository institutions as well as some brokers and
dealers. Excludes bonds and notes of maturities longer than one year.
2. Excludes negotiable time certificates of deposit, which are included in “ Other negotia­
ble and readily transferable instruments.”
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiar­
ies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
principally of amounts owed to the head office or parent foreign bank, and to foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term securities, held
by or through reporting banks for foreign customers.




6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time certificates of
deposit.
8. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes “ holdings of
dollars” of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
10. Excludes central banks, which are included in “Official institutions.”

A54
3.17

International Statistics □ March 2001
LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Continued
—
Payable in U.S. dollars
M illio n s o f d o lla rs, e n d o f p e rio d

2000
Item

1997

1998

1999
Mayr

Juner

July

Aug.

Sept.

Oct.

Nov.p

A rea
50 Total, all foreigners ..............................................................

1,283,027

1,347,837

l,408,740r

1,452,912

1,451,491

l,480,318r l,444,482r l,453,627r

1,510,056

1,522,535

51 Foreign c o u n tr ie s..................................................................

1,271,337

1,335,954

l,393,464r

1,430,105

1,430,125

l,463,669r l,429,852r l,437,969r

1,492,952

1,505,461

52 Europe ......................................................................................
53
Austria ..................................................................................
54
Belgium and L uxem bourg.................................................
55
D enm ark................................................................................
F in la n d ..................................................................................
56
57
France ....................................................................................
58
G erm any................................................................................
59
Greece ..................................................................................
60
Italy ......................................................................................
61
Netherlands .........................................................................
62
N o rw ay ..................................................................................
63
Portugal ................................................................................
64
R u s s ia ....................................................................................
Spain ....................................................................................
65
66
S w e d e n ..................................................................................
67
Switzerland .........................................................................
68
Turkey ..................................................................................
69
United Kingdom ..............................................................
70
Yugoslavia1 .........................................................................
1
71
Other Europe and other former U.S.S.R.1 2 ....................

419,672
2,717
41,007
1,514
2,246
46,607
23,737
1,552
11,378
7,385
317
2,262
7,968
18,989
1,628
39,023
4,054
181,904
239
25,145

427,375
3,178
42,818
1,437
1,862
44,616
21,357
2,066
7,103
10,793
710
3,236
2,439
15,781
3,027
50,654
4,286
181,554
233
30,225

441,810r
2,789
44,692
2,196
1,658
49,790
24,753r
3,748
6,775
8 ,143r
1,327
2,228
5,475
10,426
4,652
63,485r
7,842
172,687r
286
28,858r

429,247
2,486
31,615
3,632
1,533
43,567
24,874
3,030
7,197
6,798
924
1,956
11,711
10,726
4,390
61,400
7,504
172,747
275
32,882

442,979
2,709
31,219
3,444
1,395
42,095
28,938
2,772
6,739
8,783
2,150
2,376
11,879
9,935
5,430
57,361
8,472
184,205
276
32,801

479,945
2,037
29,438
3,001
1,418
41,065
28,658
3,420
5,594
14,450
4,101
2,261
17,230
9,270
6,247
97,099
8,492
170,376
270
35,518

466,041
2,671
29,471
3,531
1,874
42,868
27,084
3,333
5,521
13,283
5,159
2,379
19,992
6,900
7,362
86,085
4,600
169,435
279
34,214

476,570r
3,239
33,282
3,521
1,751
42,379
26,484
2,917
5,700
12,313
2,337
2,169
14,960
8,829
5,100
76,255r
8,341
194,017r
277
32,699

451,531r
2,783
31,281
3,689
1,618
42,723
25,893
3,455
5,566
13,087
1,636
2,144
14,252
8,791
5,992
77,578
7,999
170,705r
277
32,062

459,595
2,541
29,828
3,429
1,512
39,693
26,212
3,331
5,959
10,311
3,501
2,244
15,970
8,421r
6,209r
88,276
8,173
171,867
275
31,843

72 Canada ......................................................................................

28,341

30,212

34,214r

36,274

37,375

37,231

33,722

33,869r

34,367

31,249

73 Latin America and C a rib b e a n ..............................................
74
Argentina ..............................................................................
75
B a h a m as................................................................................
76
B e rm u d a ................................................................................
77
Brazil ....................................................................................
78
British West Indies ............................................................
79
C h ile ......................................................................................
80
Colombia ..............................................................................
81
C u b a ......................................................................................
82
Ecuador ................................................................................
83
Guatemala ...........................................................................
84
J a m a ica ..................................................................................
85
Mexico ..................................................................................
86
Netherlands Antilles ..........................................................
87
P a n a m a ..................................................................................
88
Peru ......................................................................................
89
Uruguay ................................................................................
90
V enezuela..............................................................................
Other ....................................................................................
91

536,393
20,199
112,217
6,911
31,037
276,418
4,072
3,652
66
2,078
1,494
450
33,972
5,085
4,241
893
2,382
21,601
9,625

554,866
19,014
118,085
6,846
15,815
302,486
5,015
4,624
62
1,572
1,336
577
37,157
5,010
3,864
840
2,486
19,894
10,183

578,695r
18,633
135,81 l r
7,874r
12,865r
312,278r
7,008
5,669
75
1,956
1,626
520
30,717
4,047r
4,415
1,142
2,386
20,192r
11,481

665,833
16,493
176,030
8,717
9,946
359,575
6,097
4,237
77
2,281
1,687
720
33,921
6,592
3,769
1,103
2,534
20,526
11,528

641,860
16,559
184,295
8,025
10,908
323,407
6,194
4,361
85
2,276
1,658
687
33,943
7,925
3,824
1,133
2,689
22,258
11,633

643,748r
19,092
170,530r
7,074
11,950
339,700r
5,440
4,627
122
2,219
1,730
725
33,379
7,164
3,353
1,097
2,179
21,462
11,905

633,150r
17,552
176,104r
8,157
12,351
321,573r
5,296
4,735
91
2,082
1,659
915
33,291
6,373
3,561
1,065
2,541
23,909
11,895

637,599r
18,560
171,452r
8,100
11,537
331,097
5,346
4,658
88
2,074
1,671
830
33,878
5,159
3,661
1,091
2,567
23,997
11,833

658,199
18,746
180,951
8,730
10,204
340,926
5,105
4,945
93
2,084
1,667
680
36,054
4,614
3,788
1,153
2,512
24,283
11,664

684,882
17,886
179,570
7,908
11,631
369,208
5,327
4,560
87
2,061
1,676
722
33,856
5,321
3,977
1,193
2,944
25,958
10,997

92 Asia ...........................................................................................
China
93
Mainland .........................................................................
94
Taiwan .............................................................................
95
Hong Kong .....................................................................
96
I n d i a ......................................................................................
97
Indonesia ..............................................................................
98
Israel ......................................................................................
Japan ....................................................................................
99
100
Korea (South) .....................................................................
101
Philippines ...........................................................................
102
T h a ila n d ................................................................................
Middle Eastern oil-exporting countries13 ......................
103
104
Other ....................................................................................

269,379

307,960

319,489r

281,985

289,816

285,018

291,017

286,551

299,145

301,681

18,252
11,840
17,722
4,567
3,554
6,281
143,401
13,060
3,250
6,501
14,959
25,992

13,441
12,708
20,900
5,250
8,282
7,749
168,563
12,524
3,324
7,359
15,609
32,251

12,325
13,603r
27,701r
7,367
6,567
7,488
159,075
12,988r
3,268r
6,050
21,314r
41,743

7,825
14,111
23,636
5,723
6,954
5,542
148,662
12,937
1,748
3,427
18,729
32,691

10,000
13,584
23,638
5,613
7,341
6,124
153,649
10,349
2,003
3,529
18,578
35,408

9,385
13,156
25,675
5,712
7,342
5,794
147,549
8,618
1,649
3,900
22,195
34,043

11,769
14,675
26,749
5,547
7,318
5,951
146,382
8,819
1,679
3,504
21,968
36,656

11,830
15,140
26,583
5,838
7,310
7,132
142,782
9,043
1,822
3,330
21,851
33,890

13,719
18,289
25,784
5,548
7,589
6,668
150,196
6,684
1,676
3,178
23,852
35,962

15,835
17,630
25,905
5,168
8,375
6,538
149,656
6,821
2,334
3,477
23,729
36,213

105 A f r ic a ........................................................................................
106
Egypt ....................................................................................
107
M o ro c c o ................................................................................
South A fric a .........................................................................
108
109
Z a i r e ......................................................................................
110
Oil-exporting countries14 ...................................................
111
Other ....................................................................................

10,347
1,663
138
2,158
10
3,060
3,318

8,905
1,339
97
1,522
5
3,088
2.854

9,468
2,022
179
1,495
14
2,914
2,844

8,446
1,729
122
661
13
3,298
2,623

8,729
1,966
149
601
6
3,405
2,602

9,739
1,780
118
792
5
4,258
2,786

9,607
1,615
109
708
7
4,470
2,698

9,821
1,544
112
842
5
4,499
2,819

9,625
1,546
121
767
4
4,405
2,782

9,482
1,655
100
853
4
4,027
2,843

112 Other ........................................................................................
113
A u stra lia ................................................................................
114
Other ....................................................................................

7,205
6,304
901

6,636
5,495
1,141

9,788r
8,377
1,41 r

8,320
7,585
735

9,366
8,563
803

11,363
10,346
1,017

10,825
9,825
1,000

10,534
9,507
1,027

11,671
10,562
1,109

12,126
10,961
1,165

115 Nonmonetary international and regional organizations ..
116
International15 .....................................................................
117
Latin American regional16.................................................
Other regional1 7 ..................................................................
118

11,690
10,517
424
749

11,883
10,221
594
1,068

22,807
21,375
624
808

21,366
20,106
768
492

16,689
15,295
786
608

14,630
13,118
1,146
366

15,658
14,387
888
383

17,104
16,126
589
389

17,074
16,061
530
483

11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
12. Includes the Bank for International Settlements. Since December 1992, has
included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.
13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
14. Comprises Algeria, Gabon, Libya, and Nigeria.




15,276
12,876
1,150
1,250

15. Principally the International Bank for Reconstruction and Development. Excludes
“ holdings of dollars” of the International Monetary Fund.
16. Principally the Inter-American Development Bank.
17. Asian, African, Middle Eastern, and European regional organizations, except the Bank
for International Settlements, which is included in “ Other Europe.”

Bank-Reported Data
3.18

A55

BANKS’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
M illio n s o f d o lla rs, e n d o f p e rio d
2000
Area or country

1997

1998

1999
May

Juner

Julyr

Aug.r

Sept.r

Oct.

Nov.p

1 Total, all foreigners ................................................................

708,225

734,995

793,139r

821,796r

827,178

829,845

796,497

840,425

857,015

855,902

2 Foreign c o u n tr ie s.....................................................................

705,762

731,378

788,576r

817,453r

822,455

825,959

792,720

835,560

851,792

852,217

3 Europe .........................................................................................
4
Austria ....................................................................................
Belgium and L uxem bourg...................................................
5
6
D enm ark..................................................................................
7
F in la n d ....................................................................................
8
France ......................................................................................
9
G erm an y ..................................................................................
in
Greece ....................................................................................
11
Italy .........................................................................................
12
Netherlands ...........................................................................
N o rw ay ....................................................................................
13
14
Portugal ..................................................................................
15
R u s s ia ......................................................................................
16
Spain ......................................................................................
17
S w e d e n ....................................................................................
18
Switzerland ...........................................................................
19
Turkey ....................................................................................
20
United Kingdom ..................................................................
Yugoslavia2 ...........................................................................
21
22
Other Europe and other former U.S.S.R.3 ........................

199,880
1,354
6,641
980
1,233
16,239
12,676
402
6,230
6,141
555
777
1,248
2,942
1,854
28,846
1,558
103,143
52
7,009

233,321
1,043
7,187
2,383
1,070
15,251
15,923
575
7,284
5,697
827
669
789
5,735
4,223
46,874
1,982
106,349
53
9,407

311,686r
2,643
10,193
1,669
2,020
29,142
29,205
806
8,496
11,810
1,000
1,571
713
3,796
3,264
79,158
2,617
115,97 r
50
7,562

355,446r
2,213r
5,955r
2,001
2,365r
35,214r
31,519r
830r
6,535r
14,377
l,829r
1,268
715
3,126
7,056r
I05,574r
3,23 r
124,020r
49
7,569r

353,006
2,119
6,392
3,442
2,601
28,635
33,583
836
7,688
15,669
1,932
1,424
744
3,844
8,692
86,284
3,188
137,697
49
8,187

357,980
2,617
6,302
3,349
2,897
25,845
30,452
754
6,447
13,159
2,401
1,454
718
4,767
8,404
94,550
2,735
143,459
49
7,621

327,409
1,956
5,819
3,278
2,701
23,229
31,804
557
7,358
14,999
1,448
1,273
666
3,566
8,761
87,172
2,855
123,360
49
6,558

359,865
2,584
6,344
3,403
3,561
27,062
33,229
516
6,215
15,507
4,474
1,480
643
3,208
8,501
100,345
2,821
132,503
49
7,420

360,292
2,809
6,020
3,093
4,927
29,093
33,017
513
6,482
16,165
4,655
1,574
647
3,360
8,504
103,668
2,831
122,829
49
10,056

365,931
2,681
4,946
3,462
6,517
30,169
32,059
776
6,738
15,975
6,156
1,249
663
2,593
8,777
107,986
3,260
124,618
49
7,257

23 Canada .........................................................................................

27,189

47,037

37,206

45,529r

42,606

40,420

37,934

37,610

38,639

39,283

74 Latin America and C a rib b e a n .................................................
75
Argentina ................................................................................
26
B a h a m as..................................................................................
B e rm u d a ..................................................................................
27
28
Brazil ......................................................................................
29
British West Indies ..............................................................
30
C h ile .........................................................................................
Colombia ................................................................................
31
32
C u b a .........................................................................................
33
Ecuador ..................................................................................
34
Guatemala ..............................................................................
35
Ja m a ica ....................................................................................
36
Mexico ....................................................................................
37
Netherlands Antilles ............................................................
38
P a n a m a ....................................................................................
39
Peru .........................................................................................
40
Uruguay ..................................................................................
41
V enezuela................................................................................
Other ......................................................................................
42

343,730
8,924
89,379
8,782
21,696
145,471
7,913
6,945
0
1,311
886
424
19,428
17,838
4,364
3,491
629
2,129
4,120

342,654
9,552
96,455
5,011
16,184
153,749
8,250
6,507
0
1,400
1,127
239
21,212
6,779
3,584
3,275
1,126
3,089
5,115

355,168r
10,894r
99,066r
8,007
16,987r
167,189
6,607
4,524
0
760
1,135
295
17,899
5,982
3,387
2,529
801
3,494
5,612r

326,68 l r
10,756r
74,297r
6,478
17,695r
165,92 l r
6,399
4,037r
0
640
1,245
300
16,771
6,579
2,984
2,515
708
3,645r
5,711

334,463
10,729
83,524
6,285
17,902
164,969
6,213
3,797
0
613
1,235
291
17,066
6,502
3,063
2,458
620
3,471
5,725

334,855
10,660
76,477
6,906
18,199
172,232
6,070
3,909
0
610
1,215
299
16,426
6,652
2,981
2,488
649
3,357
5,725

338,764
10,597
78,896
4,684
18,555
175,936
5,985
3,953
3
607
1,277
305
16,840
5,804
2,882
2,487
777
3,410
5,766

347,550
10,840
83,126
6,265
19,061
178,744
5,954
3,850
0
623
1,226
337
16,849
5,770
2,781
2,697
728
3,390
5,309

357,588
11,166
83,523
8,426
20,202
184,812
5,755
3,846
0
639
1,245
379
16,737
6,158
2,668
2,653
663
3,321
5,395

356,183
11,462
78,541
8,223
19,840
187,513
5,771
3,938
0
629
1,247
355
16,960
6,554
2,839
2,713
675
3,442
5,481

43 Asia .............................................................................................
China
44
Mainland ...........................................................................
45
Taiwan ................................................................................
Hong Kong .......................................................................
46
47
India .........................................................................................
48
Indonesia ................................................................................
49
Israel .........................................................................................
50
Japan ......................................................................................
51
Korea (South) .......................................................................
52
Philippines ..............................................................................
53
Thailand ..................................................................................
54
Middle Eastern oil-exporting countries4 ..........................
55
Other .......................................................................................

125,092

98,607

7 5 ,143r

80,205r

82,398

83,127

79,022

81,655

87,465

82,801

1,579
922
13,991
2,200
2,651
768
59,549
18,162
1,689
2,259
10,790
10,532

1,261
1,041
9,080
1,440
1,942
1,166
46,713
8,289
1,465
1,807
16,130
8,273

2,1 10r
1,390
5,903r
1,738
1,776
1,875
28,641r
9,426r
1,410
1,515
14,267r
5,092r

2,611
l,728r
4,568r
1,941
1,819
2,857
31,689
14,01 r
1,884
1,137
11,666
4,294

1,688
1,335
4,261
1,905
1,856
1,610
33,256
15,855
1,868
1,255
12,128
5,381

1,822
922
5,777
2,013
1,940
1,982
31,209
18,915
1,802
1,051
10,367
5,327

1,601
790
5,403
2,037
1,880
2,281
32,494
16,924
1,483
1,059
10,006
3,064

1,519
2,475
6,014
2,006
1,982
1,116
35,234
14,457
1,495
1,071
9,961
4,325

1,912
3,691
6,540
1,787
2,009
1,551
35,773
18,589
1,473
1,046
9,650
3,444

1,644
2,483
6,454
1,736
1,961
1,387
36,487
16,176
1,749
1,221
8,487
3,016

56 Africa ...........................................................................................
57
Egypt ............................., .......................................................
58
M o ro c c o ..................................................................................
59
South A fric a ...........................................................................
60
Z a i r e .........................................................................................
61
Oil-exporting countries5 .....................................................
Other ......................................................................................
62

3,530
247
511
805
0
1,212
755

3,122
257
372
643
0
936
914

2,268
258
352
622
24
276
736

2,097r
218
271
329r
0
508
771

2,482
230
259
760
0
430
803

2,505
217
272
411
0
751
854

2,215
186
247
358
0
616
808

2,597
176
254
372
0
913
882

2,232
201
252
322
0
656
801

1,918
184
235
341
0
342
816

63 Other ...........................................................................................
64
A u stra lia ..................................................................................
65
Other ......................................................................................

6,341
5,300
1,041

6,637
6,173
464

7,105
6,824
281

7,495r
7,139
356r

7,500
7,240
260

7,072
6,891
181

7,376
7,036
340

6,283
6,036
247

5,576
5,238
338

6,101
5,923
178

66 Nonmonetary international and regional organizations6 .. .

2,463

3,617

4,563

4,343

4,723

3,886

3,777

4,865

5,223

3,685

1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements. Since December 1992, has included all
parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.




4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in “ Other Europe.”

A56
3.19

International Statistics □ March 2001
BAN K S’ OWN AND DOMESTIC CUSTOMERS’ CLAIMS ON FOREIGNERS
Payable in U.S. Dollars

Reported by Banks in the United States1

M illio n s o f d o lla rs, e n d o f p e rio d

2000
Type of claim

1997

1999

1998

May

Juner

Sept.r

Julyr

Aug.r

829,845
48,478
557,557
85,738
21,856
63,882
138,072

796,497
41,459
544,142
78,561
21,822
56,739
132,335

Oct.

1 Total .....................................................................

852,852

875,891

944,937

2 Banks’ claims .....................................................
3
Foreign public borrowers .............................
4
Own foreign offices2 ......................................
5
Unaffiliated foreign b a n k s .............................
6
D e p o sits........................................................
7
Other ............................................................
8
All other foreig n ers........................................

708,225
20,581
431,685
109,230
30,995
78,235
146,729

734,995
23,542
484,535
106,206
27,230
78,976
120,712

793,139
35,090
529,682
97,186
34,538
62,648
131,181

9 Claims of banks’ domestic customers3 .........
10
D e p o sits............................................................
11
Negotiable and readily transferable
instruments4 .............................................
12
Outstanding collections and other
claims .....................................................

144,627
73,110

140,896
79,363

151,798
88,006

184,107
106,055

47,914

51,161

62,975

13,619

12,631

15,077

4,520

4,553

5,056

39,978

31,125

55,510

4,827

33,816

53,848

11,835

9,624

855,902
48,890
587,788
82,349
23,760
58,589
136,875

70,334

17,550

857,015
49,691
581,381
82,904
23,468
59,436
143,039

169,509
87,340

53,967

Nov.p

M emo
13 Customer liability on acceptances ..................

1,011,285
821,796r
43,197r
553,291r
88,139r
24,769
63,370r
137,169'

827,178
41,224
557,717
88,954
22,371
66,583
139,283

1,009,934
840,425
40,436
576,452
87,276
23,765
63,511
136,261

14 Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
45,468

1, For banks’ claims, data are monthly; for claims of banks’ domestic customers, data are
for quarter ending with month indicated.
Reporting banks include all types of depository institution as well as some brokers and
dealers.
2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiar­
ies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists

3.20

44,139

46,337

55,293

57,784

principally of amounts due from the head office or parent foreign bank, and from foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit, bankers acceptances, and commercial
paper.
5. Includes demand and time deposits and negotiable and nonnegotiable certificates of
deposit denominated in U.S. dollars issued by banks abroad.

BANKS’ OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. Dollars

Reported by Banks in the United States1

M illio n s o f d o lla rs, e n d o f p e rio d

2000

1999
Maturity, by borrower and area2

1996

1997

1998
Dec.

Mar.

June

Sept.

1 Total ....................................................................................................

258,106

276,550

250,418

267,082

262,173

273,139

263,500

By borrower
Maturity of one year or less ..........................................................
Foreign public b o rro w e rs............................................................
All other foreigners .....................................................................
Maturity of more than one year ...................................................
Foreign public b o rro w e rs............................................................
All other foreigners .....................................................................

211,859
15,411
196,448
46,247
6,790
39,457

205,781
12,081
193,700
70,769
8,499
62,270

186,526
13,671
172,855
63,892
9,839
54,053

187,894
22,811
165,083
79,188
12,013
67,175

181,050
23,436
157,614
81,123
12,852
68,271

185,927
24,850
161,077
87,212
15,905
71,307

174,809
23,647
151,162
88,691
16,236
72,455

55,690
8,339
103,254
38,078
1,316
5,182

58,294
9,917
97,207
33,964
2,211
4,188

68,679
10,968
81,766
18,007
1,835
5,271

80,842
7,859
69,498
21,802
1,122
6,771

79,638
8,408
62,923
23,002
957
6,122

75,561
7,344
66,140
29,091
1,520
6,271

69,486
8,225
65,918
23,874
1,594
5,712

6,965
2,645
24,943
9,392
1,361
941

13,240
2,525
42,049
10,235
1,236
1,484

14,923
3,140
33,442
10,018
1,232
1,137

22,951
3,192
39,051
11,257
1,065
1,672

23,951
3,127
39,714
11,612
965
1,754

25,404
3,323
42,427
12,549
924
2,585

27,550
3,261
41,166
13,131
895
2,688

2
3
4
5
6
7

8
9
10
11
12
13
14
15
16
17
18
19

By area
Maturity of one year or less
E u ro p e .............................................................................................
Canada ...........................................................................................
Latin America and Caribbean ...................................................
A s i a .................................................................................................
Africa .............................................................................................
All other3 ......................................................................................
Maturity of more than one year
E u ro p e .............................................................................................
Canada ...........................................................................................
Latin America and Caribbean ...................................................
A s i a .................................................................................................
Africa .............................................................................................
All other3 ......................................................................................

1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.




2. Maturity is time remaining until maturity,
3. Includes nonmonetary international and regional organizations.

Bank-Reported Data A57
3.21

CLAIMS ON FOREIGN COUNTRIES

Held by U.S. and Foreign Offices of U.S. Banks1

B illio n s o f d o lla rs, e n d o f p e rio d

1999

1998
Area or country

1996

2000

1997
Sept.

Dec.

Mar.

June

Sept.

Dec.

Mar.

June

Sept.

1 Total .................................................................................................................

645.8

721.8

1071.9

1051.6

981.9r

930.4r

930.4r

934.5r

949.4r

989.6r

952.4

2 G-10 countries and S w itzerland..................................................................
Belgium and Luxembourg .......................................................................
3
4
France ..........................................................................................................
Germany ......................................................................................................
5
I ta l y ...............................................................................................................
6
N etherlands..................................................................................................
7
Sweden ........................................................................................................
8
S w itzerland..................................................................................................
9
United K in g d o m .........................................................................................
10
C anada..........................................................................................................
11
Japan ............................................................................................................
12

228.3
11.7
16.6
29.8
16.0
4.0
2.6
5.3
104.7
14.0
23.7

242.8
11.0
15.4
28.6
15.5
6.2
3.3
7.2
113.4
13.7
28.6

240.0
11.7
20.3
31.4
18.5
8.4
2.1
7.6
100.1
15.9
23.9

217.7
10.7
18.4
30.9
11.5
7.8
2.3
8.5
85.4
16.8
25.4

208.9r
15.6
21.6
34.7
17.8
10.7
4.0
7.8
56.2r
15.9
24.6

224.0r
16.2r
20.7r
32.1
16.4
13.3
2.6
8.3r
74.7r
17.1
22.6

208.2r
15.7
20.0r
37.4
15.0
11.7r
3.6
8.8
52.3r
17.9
25.7r

232.3r
14.3
29.0
38.7
18.1
12.3
3.0
10.3
68.2r
16.3
22. r

278.5r
14.2
27.1
37.3
20.0
17.1
3.9
10.1
107.8r
17.5
23.5

320.0r
13.8
32.6
31.5
20.8
16.1
3.5
13.8
144.3r
18.3r
25.4

286.9
13.0
29.1
37.8
18.8
17.6
4.3
10.9
118.7
18.7
18.1

13 Other industrialized c o u n trie s.......................................................................
14
A u stria ..........................................................................................................
Denmark ......................................................................................................
15
Finland..........................................................................................................
16
G re e c e ..........................................................................................................
17
Norway ........................................................................................................
18
19
Po rtu g a l........................................................................................................
S p a in .............................................................................................................
20
21
T u rk e y ..........................................................................................................
Other Western Europe ..............................................................................
22
South A f r ic a ...............................................................................................
23
Australia ......................................................................................................
24

66.1
1.1
1.5
.8
6.7
8.0
.9
13.3
2.7
4.9
2.0
24.0

65.5
1.5
2.4
1.3
5.1
3.6
.9
12.6
4.5
8.3
2.2
23.1

78.5
2.1
3.0
1.6
5.8
3.2
1.1
19.5
5.2
10.4
5.4
21.4

69.0
1.4
2.2
1.4
5.9
3.2
1.4
13.7
4.8
10.4
4.4
20.3

80.1
2.8
3.4
1.5
6.5
3.1
1.4
15.7
5.2
10.2
4.8
25.4

79.7
2.8
2.9
.9
5.9
3.0
1.2
16.6
4.9
10.3r
4.7
26.6

71.7
3.0
2.1
.9
6.6
3.8
1.2
15.1
4.7
9.2
4.0
21.1

68.4
3.5
2.6
.9
6.0
3.3
1.0
12.1
4.8
6.8
3.8
23.5

62.8
2.6
1.5
.8
5.7
3.0
1.0
11.3
5.1
8.3
4.8
18.6

75.2r
2.8
1.2
1.2r
6.8
4.6
2.0
12.2
5.6
8.0r
4.5r
26.3

72.5
3.5
1.8
2.8
6.4
8.5
1.5
10.5
5.6
8.4
2.9
20.5

25 OPEC2 ...............................................................................................................
Ecuador ........................................................................................................
26
27
Venezuela ....................................................................................................
Indonesia......................................................................................................
28
29
Middle East countries................................................................................
African countries ......................................................................................
30

19.8
1.1
2.4
5.2
10.7
.4

26.0
1.3
2.5
6.7
14.4
1.2

26.0
1.2
3.1
4.7
16.1
.8

27.1
1.3
3.2
4.7
17.0
1.0

26.2
1.2
3.5
4.5
16.7
.4

26.2r
1.1
3.2
5.0
16.5
,5r

30.1
.9
3.0
4.4
21.4
.5

31.4
.8
2.8
4.2
23.l r
.5

28.9
.7
3.0
3.9
21.1
.2

32.3
.7
2.9
4.1
24.0
.7

31.8
.6
2.9
4.4
22.7
1.2

31 Non-OPEC developing co u n tries................................................................

130.3

139.2

140.4

143.4

146.4r

144.6r

149.4r

154.8r

158.3r

150.5

32
33
34
35
36
37
38

Latin America
Argentina......................................................................................................
B ra z il.............................................................................................................
Chile .............................................................................................................
C olom bia......................................................................................................
Mexico ........................................................................................................
P e r u ...............................................................................................................
O t h e r .............................................................................................................

14.3
20.7
7.0
4.1
16.2
1.6
3.3

18.4
28.6
8.7
3.4
17.4
2.0
4.1

22.9
24.0
8.5
3.4
18.7
2.2
4.6

23.1
24.7
8.3
3.2
18.9
2.2
5.4

24.4r
24.2
8.6
3.3
19.7
2.2
5.3

22.8
25.2r
8.2
3.1
18.5
2.1
5.5

22.8r
23.5r
7.7
2.7
19.4
1.8
5.5

23.2r
27.7r
7.4
2.5
18.7
1.7
5.9

22.4r
2 8 .r
8.2
2.5
18.3
1.9
6.5

21.6r
28.3r
8.1
2.4
20.5
2.1
6.7

21.4
28.5
7.4
2.4
17.5
2.1
6.3

39
40
41
42
43
44
45
46
47

Asia
China
M a in la n d ..................................................................................................
T aiw an......................................................................................................
India .............................................................................................................
Israel .............................................................................................................
Korea ( S o u th ).............................................................................................
Malaysia ......................................................................................................
Philippines ..................................................................................................
Thailand ......................................................................................................
Other Asia ..................................................................................................

2.5
10.3
4.3
.5
21.5
6.0
5.8
5.7
4.1

3.2
9.5
4.9
.7
15.6
5.1
5.7
5.4
4.3

2.8
12.5
5.3
.9
13.1
5.0
4.7
5.3
3.1

3.0
13.3
5.5
1.1
13.7
5.6
5.1
4.7
2.9

5.0
11.8
5.5
1.1
13.7
5.9
5.4
4.5
3.0

5.3
12.6
6.7
2.0
15.3
6.0
5.7
4.2
2.8

3.3
12.3
7.0
1.0
16.0
6.1
5.8
4.0
2.9r

3.6
12.0
7.7
1.8
15.2r
6.1
6.2
4.1
2.9

4.6
12.6
7.9
3.3
17.4
6.5
5.3
4.3
2.6

3.8
12.6
8.2
1.5
21.2
6.8
5.3
4.0
2.5

3.4
12.8
5.8
1.1
21.0
6.4
4.7
3.9
2.3

48
49
50
51

Africa
E g y p t.............................................................................................................
Morocco ......................................................................................................
Zaire .............................................................................................................
Other Africa3 ...............................................................................................

.7
.7
.1
.9

.9
.6
.0
.8

1.7
.5
.0
1.1

1.3
.5
.0
1.0

1.4
.5
.0
,9r

1.4
.5
.0
1.0

1.3
.5
.0
1.0

1.4
.4
.0
1.0

1.4
.3
.0
.9

1.3
.3
.0
.9

1.1
.4
.0
2.1

52 Eastern E u r o p e ...............................................................................................
Russia4 ..........................................................................................................
53
Other .............................................................................................................
54

6.9
3.7
3.2

9.1
5.1
4.0

6.3
2.8
3.5

5.5
2.2
3.3

6.8r
2.0r
4.8

5.7r
2.1
3.7

5.4
2.0
3.4

5.2
1.6
3.6

6.3
1.7
4.7

9.4
1.5
7.9

9.1
1.4
7.6

55 Offshore banking centers ..............................................................................
Bahamas ......................................................................................................
56
Bermuda ......................................................................................................
57
Cayman Islands and other British West In d ie s ...................................
58
Netherlands A n tille s..................................................................................
59
Panama5 ......................................................................................................
60
Lebanon ......................................................................................................
61
Hong Kong, C h in a ....................................................................................
62
Singapore ....................................................................................................
63
Other6 ..........................................................................................................
64
65 Miscellaneous and unallocated7 ..................................................................

135.1
20.5
4.5
37.2
26.1
2.0
.1
27.9
16.7
.1
59.6

140.2
24.2
9.8
43.4
14.6
3.1
.1
32.2
12.7
.1
99.1

121.0
30.7
10.4
27.8
6.0
4.0
.2
30.6
11.1
.2
459.9

93.9
35.4
4.6
12.8
2.6
3.9
.1
23.3
11.1
.2
495.1

83.0r
22.0r
3.9
13.9
2.7
3.9
.1
22.8
13.5
.2
430.4

66.0r
10.4r
5.7
7.2
1.3
3.9
.1
22.0
15.2
.1
380.2

42.0
2.4
7.3
.0
2.5
3.4
.1
22.2
4.1
.1
376.1

52.4
.5
6.3
5.1
2.6
3.3
.1
20.7
13.6
.1
342. r

50.6
.6
6.3
5.9
1.9
2.5
.1
20.5
12.7
.1
351.1

1.
The banking offices covered by these data include U.S. offices and foreign branches of
U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered
include U.S. agencies and branches of foreign banks. Beginning March 1994, the data include
large foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository
institutions as well as some types of brokers and dealers. To eliminate duplication, the data
are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign
branch of the same banking institution.
These data are on a gross claims basis and do not necessarily reflect the ultimate country
risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks
are available in the quarterly Country Exposure Lending Survey published by the Federal
Financial Institutions Examination Council.




148.6

79.1r
18.2r
8.2
6.3
9.1
3.9
.2
22.4
10.6
.2
391.2

59.9r
13.7r
8.0
1.3
1.7
3.9
.1
21.0
10.1
.1
387.9

2. Organization of Petroleum Exporting Countries, shown individually; other members of
OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United
Arab Emirates); and Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia. Beginning March 1994 includes Namibia.
4. As of December 1992, excludes other republics of the former Soviet Union.
5. Includes Canal Zone.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.

A58
3.22

International Statistics □ March 2001
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States
M illio n s o f d o lla rs, e n d o f p e rio d

1999
Type of liability, and area or country

1996

1997

2000

1998
June

Sept.

Dec.

Mar.

June

Sept.p

1 Total ......................................................................................................

61,782

57,382

46,570

49,337

52,979

53,044

53,489

70,534

76,944

2 Payable in d o lla rs ................................................................................
3 Payable in foreign currencies .........................................................

39,542
22,240

41,543
15.839

36,668
9,902

36,032
13,305

36,296
16,683

37,605
15,415

35,614
17,875

47,864
22,670

51,751
25,193

By type
4 Financial lia b ilitie s..............................................................................
5
Payable in d o lla rs ...........................................................................
6
Payable in foreign currencies .....................................................

33.049
11,913
21,136

26,877
12,630
14,247

19,255
10,371
8,884

25,058
13,205
11,853

27,422
12,231
15,191

27,980
13,883
14,097

29,180
12,858
16,322

44,068
22,803
21,265

49,895
26,159
23,736

7 Commercial liabilities .......................................................................
8
Trade payables ................................................................................
9
Advance receipts and other liabilities ........................................

28,733
12,720
16,013

30,505
10,904
19,601

27,315
10,978
16,337

24,279
10,935
13,344

25,557
12,651
12,906

25,064
12,857
12,207

24,309
12,401
11,908

26,466
13,764
12,702

27,049
14,218
12,831

10
11

Payable in d o lla rs ............................................................................
Payable in foreign currencies .....................................................

27,629
1,104

28,913
1,592

26,297
1,018

22,827
1,452

24,065
1,492

23,722
1,318

22,756
1,553

25,061
1,405

25,592
1,457

12
13
14
15
16
17
18

By area or country
Financial liabilities
E u ro p e ...............................................................................................
Belgium and Luxembourg .......................................................
France ...........................................................................................
Germany ......................................................................................
N etherlands..................................................................................
S w itzerland..................................................................................
United K ingdom .........................................................................

23,179
632
1,091
1,834
556
699
17,161

18,027
186
1,425
1,958
494
561
11,667

12,589
79
1,097
2,063
1,406
155
5,980

19,578
70
1,287
1,959
2,104
143
13,097

21,695
50
1,675
1,712
2,066
133
15,096

23,241
31
1,659
1,974
1,996
147
16,521

24,050
4
1,849
1,880
1,970
97
16,579

30,332
163
1,702
1,671
2,035
137
21,463

36,175
169
1,299
2,132
2,040
178
28,601

19

Canada .............................................................................................

1,401

2,374

693

320

344

284

313

714

249

20
21
22
23
24
25
26

Latin America and Caribbean .....................................................
Bahamas ......................................................................................
Bermuda ......................................................................................
Brazil ...........................................................................................
British West In d ie s .....................................................................
Mexico ........................................................................................
Venezuela ....................................................................................

1,668
236
50
78
1,030
17
1

1,386
141
229
143
604
26
1

1,495
7
101
152
957
59
2

1,369
1
52
131
944
19
1

1,180
1
26
122
786
28
0

892
1
5
126
492
25
0

846
1
1
128
489
22
0

2,874
78
1,016
146
463
26
0

3,447
105
1,182
132
501
35
0

27
28
29

A s i a ....................................................................................................
Japan .............................................................................................
Middle Eastern oil-exporting countries' ...............................

6,423
5,869
25

4,387
4,102
27

3,785
3,612
0

3,217
3,035
2

3,622
3,384
3

3,437
3,142
3

3,275
2,985
4

9,453
6,024
5

9,320
4,782
7

30
31

Africa ...............................................................................................
Oil-exporting c o u n trie s '............................................................

38
0

60
0

28
0

29
0

31
0

28
0

28
0

33
0

48
0

32

All other1 .........................................................................................

340

643

665

545

550

98

668

662

656

33
34
35
36
37
38
39

Commercial liabilities
E u ro p e ...............................................................................................
Belgium and Luxembourg .......................................................
France ...........................................................................................
Germany ......................................................................................
N etherlands..................................................................................
S w itzerland..................................................................................
United K ingdom .........................................................................

9,767
479
680
1,002
766
624
4,303

10,228
666
764
1,274
439
375
4,086

10,030
278
920
1,392
429
499
3,697

8,718
189
656
1,143
432
497
2,959

9,265
128
620
1,201
535
593
3,175

9,262
140
672
1,131
507
626
3,071

8,646
78
539
914
648
536
2,661

9,293
178
711
948
562
565
2,982

9,470
155
727
1,023
424
647
3,034

40

Canada .............................................................................................

1,090

1,175

1,390

1,670

1,753

1,775

2,024

2,053

1,897

41
42
43
44
45
46
47

Latin America and Caribbean .....................................................
Bahamas ......................................................................................
Bermuda ......................................................................................
Brazil ...........................................................................................
British West I n d ie s .....................................................................
Mexico ........................................................................................
Venezuela ....................................................................................

2,574
63
297
196
14
665
328

2,176
16
203
220
12
565
261

1,618
14
198
152
10
347
202

1,674
19
180
112
5
490
149

1,957
24
178
120
39
704
182

2,310
22
152
145
48
887
305

2,286
9
287
115
23
805
193

2,607
10
300
119
22
1,073
239

2,523
15
377
166
19
1,080
124

48
49
50

A s i a ....................................................................................................
Japan .............................................................................................
Middle Eastern oil-exporting countries1.................................

13.422
4,614
2,168

14,966
4,500
3,111

12,342
3,827
2,852

10,039
2,753
2,209

10,428
2,689
2,618

9.886
2,609
2,551

9,681
2,274
2,308

10,965
2,200
3,489

11,221
2,069
3,720

51
52

Africa ...............................................................................................
Oil-exporting countries"............................................................

1,040
532

874
408

794
393

832
392

959
584

950
499

943
536

950
575

1,285
693

53

Other3.................................................................................................

840

1,086

1,141

1,346

1,195

881

729

598

653

1.
Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).




2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.

Nonbank-Reported Data A59
3.23

CLAIMS ON UNAFFILIATED FOREIGNERS
the United States

Reported by Nonbanking Business Enterprises in

M illio n s o f d o lla rs, e n d o f p e rio d
1999
Type of claim, and area or country

1996

1997

2000

1998
June

1 Total ......................................................................................................

65,897

Sept.

Dec.

Mar.

June

Sept.p

68,128

77,462

63,884

67,566

76,669

84,266

80,725

94,806

57,006
6,878

60,456
7,110

69,170
7,472

74,331
9,935

72,294
8,431

82,877
11,929

2 Payable in d o lla rs ................................................................................
3 Payable in foreign currencies ..........................................................

59,156
6,741

62,173
5,955

72,171
5,291

By type
4 Financial claims ..................................................................................
5
Deposits ...........................................................................................
6
Payable in d o lla rs .......................................................................
7
Payable in foreign currencies .................................................
8
Other financial c la im s.....................................................................
9
Payable in d o lla rs .......................................................................
10
Payable in foreign currencies...................................................

37,523
21,624
20,852
772
15,899
12,374
3,525

36,959
22,909
21,060
1,849
14,050
11,806
2,244

46,260
30,199
28,549
1,650
16,061
14,049
2,012

31,957
13,350
11,636
1,714
18,607
14,800
3,807

33,877
15,192
13,240
1,952
18,685
15,718
2,967

40,231
18,566
16,373
2,193
21,665
18,593
3,072

47,798
23,316
21,442
1,874
24,482
19,659
4,823

44,303
17,462
15,361
2,101
26,841
22,384
4,457

58,303
30,928
27,974
2,954
27,375
20,541
6,834

11 Commercial c la im s .............................................................................
12
Trade receivables ...........................................................................
13
Advance payments and other c la im s ..........................................

28,374
25,751
2,623

31,169
27,536
3,633

31,202
27,202
4,000

31,927
27,791
4,136

33,689
29,397
4,292

36,438
32,629
3,809

36,468
31,443
5,025

36,422
31,277
5,145

36,503
31,533
4,970

14
15

Payable in d o lla rs ...........................................................................
Payable in foreign currencies .....................................................

25,930
2,444

29,307
1,862

29,573
1,629

30,570
1,357

31,498
2,191

34,204
2,207

33,230
3,238

34,549
1,873

34,362
2,141

16
17
18
19
20
21
22

By area or country
Financial claims
E u ro p e ...............................................................................................
Belgium and Luxembourg .......................................................
France ...........................................................................................
Germany ......................................................................................
N etherlands..................................................................................
S w itzerland..................................................................................
United K in g d o m .........................................................................

11,085
185
694
276
493
474
7,922

14,999
406
1,015
427
677
434
10,337

12,294
661
864
304
875
414
7,766

13,978
457
1,368
367
997
504
8,631

13,878
574
1,212
549
1,067
559
8,157

13,023
529
967
504
1,229
643
7,561

16,789
540
1,835
669
1,981
612
9,044

18,254
317
1,292
576
1,984
624
11,668

23,706
304
1,477
696
2,486
626
16,191

23

Canada .............................................................................................

3,442

3,313

2,503

2,828

3,172

2,553

3,175

5,799

7,517

24
25
26
27
28
29
30

Latin America and Caribbean .....................................................
Bahamas ......................................................................................
Bermuda ......................................................................................
Brazil ...........................................................................................
British West I n d ie s .....................................................................
Mexico .........................................................................................
Venezuela ....................................................................................

20,032
1,553
140
1,468
15,536
457
31

15,543
2,308
108
1,313
10,462
537
36

27,714
403
39
835
24,388
1,245
55

11,486
467
39
1,102
7,393
1,702
71

12,749
755
524
1,265
7,263
1,791
47

18,206
1,593
11
1,476
12,099
1,798
48

21,945
1,299
11
1,646
15,814
1,979
65

14,874
655
34
1,666
7,751
2,048
78

21,691
1,358
22
1,568
15,722
2,280
101

31
32
33

A s i a ....................................................................................................
Japan .............................................................................................
Middle Eastern oil-exporting countries1 ...............................

2,221
1,035
22

2,133
823
11

3,027
1,194
9

2,801
949
5

3,205
1,250
5

5,457
3,262
21

4,430
2,021
29

3,923
1,410
42

4,002
1,726
85

34
35

Africa ...............................................................................................
Oil-exporting countries ............................................................

174
14

319
15

159
16

228
5

251
12

286
15

232
15

320
39

284
3

36

All other3 ...........................................................................................

569

652

563

636

622

706

1,227

1,133

1,103

37
38
39
40
41
42
43

Commercial claims
E u ro p e ...............................................................................................
Belgium and Luxembourg .......................................................
France ...........................................................................................
Germany ......................................................................................
N etherlands..................................................................................
S w itz erlan d ..................................................................................
United K in g d o m .........................................................................

10,443
226
1,644
1,337
562
642
2,946

12,120
328
1,796
1,614
597
554
3,660

13,246
238
2,171
1,822
467
483
4,769

12,961
286
2,094
1,660
389
385
4,615

14,367
289
2,375
1,944
617
714
4,789

16,389
316
2,236
1,960
1,429
610
5,827

16,118
271
2,520
2,034
1,337
611
5,354

15,928
425
2,692
1,906
1,242
563
4,929

16,481
393
2,924
2,143
1,310
682
5,198

44

Canada .............................................................................................

2,165

2,660

2,617

2,855

2,638

2,757

3,088

3,250

2,945

45
46
47
48
49
50
51

Latin America and Caribbean .....................................................
Bahamas ......................................................................................
Bermuda ......................................................................................
Brazil ...........................................................................................
British West I n d ie s .....................................................................
Mexico .........................................................................................
Venezuela ....................................................................................

5,276
35
275
1,303
190
1,128
357

5,750
27
244
1,162
109
1,392
576

6,296
24
536
1,024
104
1,545
401

6,278
21
583
887
127
1,478
384

5,879
29
549
763
157
1,613
365

5,959
20
390
905
181
1,678
439

5,899
15
404
849
95
1,529
435

5,792
48
381
894
51
1,565
466

5,798
75
387
982
55
1,615
379

52
53
54

A s i a ....................................................................................................
Japan .............................................................................................
Middle Eastern oil-exporting countries1 ...............................

8,376
2,003
971

8,713
1,976
1,107

7,192
1,681
1,135

7,690
1,511
1,465

8,579
1,823
1,479

9,165
2,074
1,625

9,101
2,082
1,533

9,173
1,882
1,241

8,991
2,071
1,197

55
56

Africa ...............................................................................................
Oil-exporting countries ............................................................

746
166

680
119

711
165

738
202

682
221

631
171

716
82

766
160

895
392

57

Other3..................................................................................................

1,368

1,246

1,140

1,405

1,544

1,537

1,546

1,513

1,393

1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).




2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.

A60 International Statistics □ March 2001
3.24

FOREIGN TRANSACTIONS IN SECURITIES
M illio n s o f d o lla rs

2000
Transaction, and area or country

1998

2000

1999
Jan.—
Nov.

May

June

July

Aug.

Sept.

Oct.

Nov.p

297,677r
289,118r

339,995
323,659

284,909
275,855
9,054

U.S. corporate securities
Stocks
1 Foreign purchases.....................................................................
2 Foreign s a le s .............................................................................

1,574,192
1,524,203

2,340,659
2,233,137

3,318,607
3,155,501

3 Net purchases, o r sales (—) .................................................

49,989

107,522

163,106

4 Foreign countries ..................................................................

50,369

107,578

163,102

E u ro p e ........................................................................................
France ....................................................................................
Germany ................................................................................
N etherlands...........................................................................
Sw itzerland...........................................................................
United K in g d o m ..................................................................
Canada ......................................................................................
Latin America and Caribbean ..............................................
Middle East1 ..............................................................................
Other Asia ................................................................................
Japan ......................................................................................
Africa .........................................................................................
Other co u n tries.........................................................................

68,124
5,672
9,195
8,249
5,001
23,952
-4 ,6 8 9
757
-1 ,4 4 9
-12,351
-1 ,171
639
-6 62

98,060
3,813
13,410
8,083
5,650
42,902
-3 3 5
5,187
-1 ,0 6 6
4,445
5,723
372
915

153,450
5,687
30,975
3,224
12,644
50,536
4,259
-1 5,053
8,912
11,043
455
460
31

18 N onm onetary international and
regional organizations .................................................

-380

-5 6

7

905,782
727,044

854,692
602,100

1,087,507
781,161

5
6
7
8
9
10
11
12
13
14
15
16
17

268,499r
262,187r

300,356
282,563

271,145
255,999

286,819
262,775

6,312

17,793

15,146

24,044

8,559

16,336

6,292r

17,823

15,136

24,020

8,603

16,338

9,068

7,496
-5 8 8
3,355
-113
585
1,440
835r
—2,634r
705
- 1 19r
-1 ,0 4 5
-5 0
59r

14,853
-6 5 3
2,544
584
67
7,026
-4 6
1,898
4
870
439
54
190

12,922
1,292
371
554
1,702
6,033
-1 6 6
1,363
98
815
492
-1 2 4
228

15,678
575
2,670
594
1,114
7,098
1,038
4,907
908
1,789
568
2
-3 0 2

10,014
-5 6 5
643
792
780
5,163
—924r
—3,406r
52
2,707r
2,467
-5 6
216

14,040
1,757
1,383
-1 3 5
488
6,283
194
-4 ,4 0 0
754
5,840
2,640
-2 7
-6 3

7,485
408
988
323
-5 9 8
3,210
1,477
-2 ,9 7 9
340
3,310
662
80
-6 4 5

21

-3 0

10

24

-4 2

-2

-1 4

89,760
68,212

107,281
75,117

87,580
67,010

107,808
69,514

106,384
76,225

102,945
71,602

113,843
77,596

B o nd s 2
19 Foreign purchases.....................................................................
20 Foreign s a le s .............................................................................
21 Net purchases, o r sales (—) .................................................

178,738

252,592

306346

21,548

32,164

20,570

38,294

30,159

31,343

36,247

22 Foreign countries ..................................................................

179,081

252,994

306,451

21,493r

32,215

20,482

38,215

30,161

31,356

36,381

23
24
25
26
27
28
29
30
31
32
33
34
35

E u ro p e ........................................................................................
F r a n c e ....................................................................................
Germany ................................................................................
N etherlands...........................................................................
S w itzerland...........................................................................
United K ingdom ..................................................................
Canada ......................................................................................
Latin America and Caribbean ..............................................
Middle East1 .............................................................................
Other Asia ................................................................................
Japan ......................................................................................
Africa ........................................................................................
Other c o u n trie s.........................................................................

130,057
3,386
4,369
3,443
4,826
99,637
6,121
23,938
4,997
12,662
8,384
190
1,116

140,674
1,870
7,723
2,446
4,553
106,344
6,043
58,783
1,979
42,817
17,541
1,411
1,287

162,368
2,078
4,145
855
3,922
126,457
12,873
55,317
805
72,579
35,744
862
1,647

9,475
104
175
283
9
6,237
1,076
2,786
-4 7
7,999'
3,491
40
164

19,378
159
897
-1 6 9
324
16,218
1,092
4,390
99
7,059
3,945
72
125

7,789
85
154
-5 7 5
1,003
4,003
943
4,743
264
6,601
3,320
10
132

21,618
334
1,185
850
757
15,909
1,965
3,829
54
10,562
5,664
37
150

17,058
-8 1 9
44
-8 1 8
333
15,950
811
6,338
-7 0 2
6,777
3,573
49
-1 7 0

16,965
347
433
848
350
12,503
897
5,018
-5 4
8,215
3,690
58
257

15,845
272
537
183
483
12,082
1,179
6,600
437
11,673
7,269
25
622

36 N onm onetary international and
regional organizations .................................................

-343

-4 0 2

-7 1

-5 1

88

110

-2

-1 3

-1 3 4

2,922
153,760
150,838
-3 ,4 4 0
98,523
101,963

5,894
142,158
136,264
8,451
94,973
86,522

58

Foreign securities
37 Stocks, net purchases, or sales ( - ) ......................................
38
Foreign purchases................................................................
39
Foreign s a le s .........................................................................
40 Bonds, net purchases, or sales ( - ) ......................................
41
Foreign purchases................................................................
42
Foreign s a le s .........................................................................

6,227
929,923
923,696
-1 7 ,3 5 0
1,328,281
1,345,631

15,640
1,177,303
1,161,663
-5 ,6 7 6
798,267
803,943

-7 ,6 8 6
1,671,921
1,679,607
-2 ,4 9 4
875,915
878,409

7,144r
145,942r
138,798r
4,244r
79,536r
75,292r

-3 ,0 9 6 r
153,373r
156,469r
5,751r
82,953r
77,202r

-1 5 ,5 0 1 r
136,108r
151,609r
-6 ,4 8 8 r
68,425r
74,913r

602
143,618
143,016
-2 ,811
74,803
77,614

10,479
149,696
139,217
267
92,182
91,915

43 Net purchases, or sales (—), of stocks and bonds . . . .

-1 1 ,1 2 3

9,964

44 Foreign countries ..................................................................

-1 0 ,7 7 8

9,679

-1 0 ,1 8 0

ll,3 8 8 r

2,655r

—21,989r

—2,209

10,746

-5 1 8

14,345

-1 0 ,7 3 2

ll,3 2 3 r

2,808r

—21,748r

-2 ,0 5 5

10,570

-6 8 5

14,106

45
46
47
48
49
50
51

E u ro p e ........................................................................................
Canada ......................................................................................
Latin America and Caribbean ..............................................
A s i a .............................................................................................
Japan ......................................................................................
Africa ........................................................................................
Other c o u n trie s.........................................................................

12,632
-1 ,9 0 1
-1 3 ,7 9 8
-3 ,9 9 2
-1 ,7 4 2
-1 ,2 2 5
-2 ,4 9 4

59,247
-9 9 9
-4 ,7 2 6
-42.961
-4 3 ,6 3 7
710
-1 ,5 9 2

-2 1 ,1 8 0
-2 ,6 1 9
-1 4,498
24,416
20,228
989
2,160

9,676r
- l,661r
-9 3 0 r
4,520r
5,699r
-5 5 r
-2 2 7

—1,88 l r
972r
2,038r
l,628r
3,165r
—37r
88r

-2 4 ,0 0 4 r
253r
—931
2,973r
4 ,1 16r
532
—57 Ir

-6 ,1 9 0
916
-5 6 2
3,160
1,478
-5 0
671

6,530
-1 ,1 4 2
665
3,867
2,082
49
601

-4 ,0 1 6
1,810
1,040
-4 7
-1 ,2 5 5
13
515

7,568
503
-4 0 5
5,802
2,092
10
628

52 N onm onetary international and
regional o rganizations...................................................

-3 4 5

285

570

-154

180

167

239

1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar,
Saudi Arabia, and United Arab Emirates (Trucial States).




76

-150

r

—241

2. Includes state and local government securities and securities of U.S. government
agencies and corporations. Also includes issues of new debt securities sold abroad by U.S.
corporations organized to finance direct investments abroad.

Securities Holdings and Transactions A61
3.25

MARKETABLE U.S. TREASURY BONDS AND NOTES

Foreign Transactions1

M illio n s o f d o lla rs; n e t p u rc h a s e s , o r s a le s ( —) d u rin g p e rio d
2000

2000
Area or country

1998

1999
J a n .Nov.

May

June

July

Aug.

Sept.

Oct.

Nov.p

-1 3 ,7 7 3

1 Total estimated .............................................................................................

49,039

-9 ,9 5 3

-4 3 ,6 9 7

-7 ,0 1 8

-1 7 ,9 3 2

-6 ,0 6 1

-1 1 4

-8 ,5 1 6

- 3 ,0 3 8

2 Foreign countries ...........................................................................................

46,570

-1 0 ,5 1 8

-4 3 ,1 3 0

-6 ,8 2 0

-1 7 ,5 9 7

-5 ,7 4 6

-1 1 7

-8 ,7 4 1

-3 ,2 2 3

-1 3 ,6 2 6

3
4
5
6
7
8
9
10
11

E u ro p e ..........................................................................................................
Belgium and Luxembourg ..................................................................
Germany ..................................................................................................
N etherlands.............................................................................................
Sweden ....................................................................................................
S w itzerland.............................................................................................
United K in g d o m ....................................................................................
Other Europe and former U.S.S.R.......................................................
Canada ........................................................................................................

23,797
3,805
144
-5 ,5 3 3
1,486
5,240
14,384
4,271
615

-3 8 ,2 2 8
-8 1
2,285
2,122
1,699
-1 ,761
-2 0 ,2 3 2
-2 2 ,2 6 0
7,348

-4 3 ,9 2 0
169
-6 ,2 3 9
3,762
754
-1 0 ,3 9 0
-2 9 ,4 7 0
-2 ,5 0 6
1,517

-2 ,5 2 6
-7 4 3
74
-1 ,1 5 9
266
-3 3 7
178
-8 0 5
-6 8 1

-9 ,9 3 5
252
609
-389
-4 7
-1 ,9 2 8
-9 ,2 4 3
811
226

-6 ,3 5 1
-1 3 8
-2 ,1 9 9
-5 8 4
114
-1 ,3 9 8
- 4 ,3 7 2
2,226
-8 7 2

3,707
138
-3 6
91
56
-3 3 8
3,054
742
222

- 1 ,2 8 4
-1 2 7
-1 ,7 3 8
836
214
-9 5 9
-1 ,8 6 5
2,355
1,417

-3 ,7 0 8
320
1,424
183
-1 1 8
-5 7
-3 ,7 9 3
-1 ,6 6 7
160

-10,991
53
-2 ,1 8 5
264
-1 0 4
-3 0 1
-6 ,0 3 5
-2 ,6 8 3
-8 4 0

12
13
14
15
16
17
18
19

Latin America and Caribbean ................................................................
Venezuela ...............................................................................................
Other Latin America and Caribbean .................................................
Netherlands A n tille s .............................................................................
A s i a ...............................................................................................................
J a p a n ........................................................................................................
Africa ..........................................................................................................
O th e r .............................................................................................................

- 3 ,6 6 2
59
9,523
-1 3 ,2 4 4
27,433
13,048
751
- 2 ,3 6 4

-7 ,5 2 3
362
1,661
-9 ,5 4 6
29,359
20,102
-3 ,0 2 1
1,547

-4 ,6 6 9
988
-9 ,8 3 5
4,178
2,092
14,435
-370
2,220

-3 ,1 2 2
4
-5 4 8
-2 ,5 7 8
-9 0 8
- 2 ,4 8 6
-1 1 4
531

-3 ,8 3 9
16
-4 ,7 4 8
893
-3 ,9 8 8
-2 ,6 6 0
-130
69

1,415
89
1,261
65
-4 8 8
672
4
546

245
45
61
139
-4 ,9 1 8
367
9
618

-4 ,9 7 9
314
-4 ,9 3 6
-3 5 7
-3 ,3 1 9
1,717
-1 3 9
-437

3,963
152
3,030
781
-4 ,6 8 8
1,608
-6
1,056

-5 0 7
251
-1 ,2 6 2
504
-1 ,2 8 9
4,445
-1 6
17

20 Nonmonetary international and regional organizations ........................
21
International ...............................................................................................
22
Latin American regional .........................................................................

2,469
1,502
199

565
190
666

-5 6 7
-4 9 8
70

-1 9 8
-1 5 8
-1 4

-335
-2 8 6
-9

-3 1 5
-3 3 3
-1

3
15
-1 0

225
391
1

185
39
28

-1 4 7
-1 4 6
-1

M emo
23 Foreign countries ...........................................................................................
24
Official in stitu tio n s....................................................................................
25
Other foreign .............................................................................................

46,570
4,123
42,447

-1 0 ,5 1 8
-9 ,8 6 1
-6 5 7

-4 3 ,1 3 0
-7 ,3 7 6
-3 5 ,7 5 4

- 6 ,8 2 0
-1 ,4 0 5
-5 ,4 1 5

-1 7 ,5 9 7
-1 ,4 1 2
-1 6 ,1 8 5

-5 ,7 4 6
-6 3 9
-5 ,1 0 7

-1 1 7
449
-5 66

-8 ,7 4 1
-6 ,6 2 6
-2 ,1 1 5

-3 ,2 2 3
-7 ,1 5 0
3,927

-1 3 ,6 2 6
-4 ,9 6 7
-8 ,6 5 9

Oil-exporting countries
26 M iddle E a st2 ..................................................................................................
27 Africa3 ...............................................................................................................

-1 6 ,5 5 4
2

2,207
0

3,450
0

572
0

859
0

267
0

217
0

-1 ,0 3 0
0

-724
0

-8 8 8
0

1.
Official and private transactions in marketable U.S. Treasury securities having an
original maturity of more than one year. Data are based on monthly transactions reports.
Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.




2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.

A62
3.28

International Statistics □ March 2001
FOREIGN EXCHANGE RATES AND INDEXES OF THE FOREIGN EXCHANGE VALUE OF THE U.S. DOLLAR1
Currency units per U.S. dollar except as noted
2000
Item

1998

1999

2001

2000
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Exchange Rates
COUNTRY/CURRENCY UNIT

1
2
3
4
5
6
7
8
9
10
11
12

Australia/dollar2 ...................................................
A ustria/schilling...................................................
Belgium /franc........................................................
B razil/real..............................................................
C anada/dollar........................................................
China, P.R./yuan .................................................
D enm ark/krone......................................................
European Monetary Union/euro3 ......................
Finland/m arkka......................................................
France/franc ..........................................................
Germany/deutsche mark ....................................
Greece/drachma ...................................................

62.91
12.379
36.31
1.1605
1.4836
8.3008
6.7030
n.a.
5.3473
5.8995
1.7597
295.70

64.54
n.a.
n.a.
1.8207
1.4858
8.2783
6.9900
1.0653
n.a.
n.a.
n.a.
306.30

58.15
n.a.
n.a.
1.8301
1.4855
8.2784
8.0953
0.9232
n.a.
n.a.
n.a.
365.92

58.08
n.a.
n.a.
1.8091
1.4828
8.2796
8.2459
0.9045
n.a.
n.a.
n.a.
372.97

55.21
n.a.
n.a.
1.8397
1.4864
8.2785
8.5849
0.8695
n.a.
n.a.
n.a.
389.67

52.80
n.a.
n.a.
1.8813
1.5125
8.2785
8.7276
0.8525
n.a.
n.a.
n.a.
398.29

52.18
n.a.
n.a.
1.9483
1.5426
8.2774
8.6992
0.8552
n.a.
n.a.
n.a.
397.94

54.66
n.a.
n.a.
1.9632
1.5219
8.2771
8.3059
0.8983
n.a.
n.a.
n.a.
379.58

55.52
n.a.
n.a.
1.9561
1.5032
8.2776
7.9629
0.9376
n.a.
n.a.
n.a.
n.a.

13
14
15
16
17
18
19
20

Hong Kong/dollar ...............................................
India/rupee ............................................................
Ireland/pound2 .....................................................
Italy/lira .................................................................
Japan/yen ..............................................................
M alaysia/ringgit...................................................
M exico/peso..........................................................
Netherlands/guilder .............................................

22 N orw ay/krone........................................................
23 Portugal/escudo ...................................................

7.7467
41.36
142,48
1,736.85
130.99
3.9254
9.152
1.9837
53.61
7.5521
180.25

7.7594
43.13
n.a.
n.a.
113.73
3.8000
9.553
n.a.
52.94
7.8071
n.a.

7.7924
45.00
n.a.
n.a.
107.80
3.8000
9.459
n.a.
45.68
8.8131
n.a.

7.7995
45.77
n.a.
n.a.
108.08
3.8000
9.272
n.a.
44.52
8.9526
n.a.

7.7985
45.97
n.a.
n.a.
106.84
3.8000
9.362
n.a.
41.71
9.2331
n.a.

7.7977
46.43
n.a.
n.a.
108.44
3.8000
9.537
n.a.
40.01
9.3794
n.a.

7.7991
46.82
n.a.
n.a.
109.01
3.8000
9.508
n.a.
39.90
9.3524
n.a.

7.7991
46.78
n.a.
n.a.
112.21
3.8000
9.467
n.a.
42.97
9.0616
n.a.

7.7998
46.61
n.a.
n.a.
116.67
3.8000
9.769
n.a.
44.42
8.7817
n.a.

24
25
26
27
28
29
30
31
32
33
34

1.6722
5.5417
1,400.40
149.41
65.006
7.9522
1.4506
33.547
41.262
165.73
548.39

1.6951
6.1191
1,189.84
n.a.
70.868
8.2740
1.5045
32.322
37.887
161.72
606.82

1.7250
6.9468
1,130.90
n.a.
76.964
9.1735
1.6904
31.260
40.210
151.56
680.52

1.7206
6.9570
1,114.47
n.a.
78.283
9.2771
1.7149
31.106
40.889
148.89
689.17

1.7406
7.1805
1,117.57
n.a.
78.731
9.6853
1.7586
31.198
41.992
143.36
690.39

1.7525
7.4902
1,131.10
n.a.
79.291
9.9930
1.7745
31.846
43.334
145.06
692.86

1.7478
7.6889
1,156.54
n.a.
80.381
10.0965
1.7779
32.433
43.791
142.58
695.77

1.7361
7.6439
1,216.94
n.a.
82.030
9.6604
1.6855
33.123
43.246
146.29
698.85

1.7380
7.7786
1,272.63
n.a.
85.833
9.4910
1.6305
32.721
43.149
147.75
700.02

Singapore/dollar...................................................
South A frica/rand.................................................
South K o re a /w o n .................................................
Spain/peseta ..........................................................
Sri Lanka/rupee ...................................................
Sw eden/krona........................................................
Sw itzerland/franc.................................................
T aiw an/dollar........................................................
T h a iland/baht........................................................
United Kingdom/pound2 ....................................
Venezuela/bolivar.................................................

Indexes4
N o m in a l

35 Broad (January 1997= 100)5 .............................
36 Major currencies (March 1973 = 100)6 ...........
37 Other important trading partners (January
1997= 100)7 ...................................................

116.48
95.79

116.87
94.07r

119.93
98.34

120.12r
99.07r

121.53r
100.65r

123.27r
102.24r

124.21
103.08r

123.28r
101.26r

123.15
100.24

126.03

129.94

130.26

129.52r

130.37r

131,99r

132.87r

133.61r

135.02

99.21
97.24

98.53
96.68

102.19
102.86

102.74
103.87r

103.83r
105.57r

105.23r
107.32r

105.73r
108.13r

104.86r
106.22r

104.78
105.47

108.10

107.22

107.67

107.64

108.01

109.06r

109.19r

109.61r

110.40

Real

38 Broad (March 1973= 100)5 ...............................
39 Major currencies (March 1973= 100)6 ...........
40 Other important trading partners (March
1973 100)’ ...................................................

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. U.S. cents per currency unit.
3. The euro is reported in place of the individual euro area currencies. By convention, the
rate is reported in U.S. dollars per euro. The bilateral currency rates can be derived from the
euro rate by using the fixed conversion rates (in currencies per euro) as shown below:
Euro equals
13.7603
40.3399
5.94573
6.55957
1.95583
.787564

Austrian schillings
Belgian francs
Finnish markkas
French francs
German marks
Irish pounds




1936.27
40.3399
2.20371
200.482
166.386
340.750

Italian lire
Luxembourg francs
Netherlands guilders
Portuguese escudos
Spanish pesetas
Greek drachmas

4. Starting with the February 2001 Bulletin, revised index values resulting from the annual
revision of data that underlie the calculated trade weights are reported. For more information
on the indexes of foreign exchange value of the dollar, see Federal Reserve Bulletin, vol. 84
(October 1998), pp. 811-818.
5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies
of a broad group of U.S. trading partners. The weight for each currency is computed as an
average of U.S. bilateral import shares from and export shares to the issuing country and of a
measure of the importance to U.S. exporters of that country’s trade in third country markets.
6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that circulate widely outside the country of issue. The weight for each
currency is its broad index weight scaled so that the weights of the subset of currencies in the
index sum to one.
7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that do not circulate widely outside the country of issue. The weight
for each currency is its broad index weight scaled so that the weights of the subset of
currencies in the index sum to one.

A63

Guide to Statistical Releases and Special Tables
ST A T IS T IC A L R e l e a s e s — L i s t P u b l i s h e d S e m i a n n u a l l y , w i t h L a t e s t B u l l e t i n R e f e r e n c e
Issue
D ecem ber 2000

P age
A 72

Issue

P age

A ssets an d lia b ilities o f com m ercial banks
D ecem ber 31, 1999 ...........................................................................................................................................................................
March 31, 20 0 0 ..................................................................................................................................................................................
June 30, 2000 .....................................................................................................................................................................................
September 30, 20 0 0 .........................................................................................................................................................................

M ay 2000
August 200 0
N ovem ber 2000
February 2001

A 64
A 64
A 64
A 64

Terms o f lending a t com m ercial banks
February 2000 ...................................................................................................................................................................................
May 2 0 0 0 .............................................................................................................................................................................................
August 20 0 0 .......................................................................................................................................................................................
N ovem ber 20 0 0 .................................................................................................................................................................................

M ay 2000
August 2000
N ovem ber 2000
February 2001

A 66
A 66
A 66
A 66

A ssets and liab ilities o f U.S. branches an d agen cies o f fo reig n banks
D ecem ber 31, 1999 ...........................................................................................................................................................................
March 31, 2000 .................................................................................................................................................................................
June 30, 2000 .....................................................................................................................................................................................
September 30, 200 0 .........................................................................................................................................................................

M ay 2000
A ugust 2000
N ovem ber 2000
February 2001

A 72
A 72
A 72
A 72

P ro fo rm a balance sh eet an d incom e statem ents f o r p ric e d service operation s
March 31, 2000 .................................................................................................................................................................................
June 30, 200 0 .....................................................................................................................................................................................
September 30, 200 0 .........................................................................................................................................................................

A ugust 200 0
N ovem ber 2000
February 2001

A 76
A 76
A 76

September 1999

A 64

September 1999

A 73

September 1999

A 79

Anticipated schedule o f release dates for periodic releases ................................................................................................
S P E C IA L TABLES— D a t a P u b l i s h e d I r r e g u l a r l y , w i t h L a t e s t B u l l e t i n R e f e r e n c e
Title an d D a te

R esiden tial lending reported under the H om e M ortgage D isclosu re A c t
1998
1999

September 2000

A 64

D isposition o f app lica tio n s f o r p riv a te m ortgage insurance
1998
1999

Septem ber 2000

A 73

Sm all loans to businesses a n d fa rm s
1998
1999

September 1999
September 2000

A 76
A 76

Com m unity d evelopm en t lending reported under the Com m unity R einvestm ent A ct
1998
1999
September 2000

A 79




A64

Federal Reserve Bulletin □ March 2001

Index to Statistical Tables
References are to pages A3-A62, although the prefix ‘A ” is omitted in this index.
ACCEPTANCES, bankers (See Bankers acceptances)
Assets and liabilities (See also Foreigners)
Commercial banks, 15-21
Domestic finance companies, 32, 33
Federal Reserve Banks, 10
Foreign-related institutions, 20
Automobiles
Consumer credit, 36
Production, 44, 45
BANKERS acceptances, 5, 10, 22, 23
Bankers balances, 15-21. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 31
Rates, 23
Business activity, nonfinancial, 42
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 43
Capital accounts
Commercial banks, 15-21
Federal Reserve Banks, 10
Certificates o f deposit, 23
Commercial and industrial loans
Commercial banks, 15-21
Weekly reporting banks, 17, 18
Commercial banks
Assets and liabilities, 15-21
Commercial and industrial loans, 15-21
Consumer loans held, by type and terms, 36
Real estate mortgages held, by holder and property, 35
Time and savings deposits, 4
Commercial paper, 22, 23, 32
Condition statements (See Assets and liabilities)
Construction, 42, 46
Consumer credit, 36
Consumer prices, 42
Consumption expenditures, 48, 49
Corporations
Profits and their distribution, 32
Security issues, 31, 61
Cost o f living (See Consumer prices)
Credit unions, 36
Currency in circulation, 5, 13
Customer credit, stock market, 24
DEBT (See specific types of debt or securities)
Demand deposits, 15-21
Depository institutions
Reserve requirements, 8
Reserves and related items, 4 -6 , 12
Deposits (See also specific types)
Commercial banks, 4, 15-21
Federal Reserve Banks, 5, 10
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, 32
EMPLOYMENT, 42
Euro, 62
FARM mortgage loans, 35
Federal agency obligations, 5, 9-11, 28, 29
Federal credit agencies, 30




Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 27
Receipts and outlays, 25, 26
Treasury financing of surplus, or deficit, 25
Treasury operating balance, 25
Federal Financing Bank, 30
Federal funds, 23, 25
Federal Home Loan Banks, 30
Federal Home Loan Mortgage Corporation, 30, 34, 35
Federal Housing Administration, 30, 34, 35
Federal Land Banks, 35
Federal National Mortgage Association, 30, 34, 35
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities, 5, 10, 11, 27
Federal Reserve credit, 5, 6, 10, 12
Federal Reserve notes, 10
Federally sponsored credit agencies, 30
Finance companies
Assets and liabilities, 32
Business credit, 33
Loans, 36
Paper, 22, 23
Float, 5
Flow of funds, 37-41
Foreign currency operations, 10
Foreign deposits in U.S. banks, 5
Foreign exchange rates, 62
Foreign-related institutions, 20
Foreign trade, 51
Foreigners
Claims on, 52, 55-7, 59
Liabilities to, 5 1 -4 , 58, 60, 61
GOLD
Certificate account, 10
Stock, 5, 51
Government National Mortgage Association, 30, 34, 35
Gross domestic product, 48, 49
HOUSING, new and existing units, 46
INCOME, personal and national, 42, 48, 49
Industrial production, 42, 44
Insurance companies, 27, 35
Interest rates
Bonds, 23
Consumer credit, 36
Federal Reserve Banks, 7
Money and capital markets, 23
Mortgages, 34
Prime rate, 22
International capital transactions of United States, 50-61
International organizations, 52, 53, 55, 58, 59
Inventories, 48
Investment companies, issues and assets, 32
Investments (See also specific types)
Commercial banks, 4, 15-21
Federal Reserve Banks, 10, 11
Financial institutions, 35
LABOR force, 42
Life insurance companies (See Insurance companies)

A65

Loans (See also specific types)
Commercial banks, 15-21
Federal Reserve Banks, 5-7, 10, 11
Financial institutions, 35
Insured or guaranteed by United States, 34, 35
MANUFACTURING
Capacity utilization, 43
Production, 43, 45
Margin requirements, 24
Member banks, reserve requirements, 8
Mining production, 45
Mobile homes shipped, 46
Monetary and credit aggregates, 4, 12
Money and capital market rates, 23
Money stock measures and components, 4, 13
Mortgages (See Real estate loans)
Mutual funds, 13, 32
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 26
National income, 48
OPEN market transactions, 9
PERSONAL income, 49
Prices
Consumer and producer, 42, 47
Stock market, 24
Prime rate, 22
Producer prices, 42, 47
Production, 42, 44
Profits, corporate, 32
REAL estate loans
Banks, 15-21, 35
Terms, yields, and activity, 34
Type and holder and property mortgaged, 35
Reserve requirements, 8
Reserves
Commercial banks, 15-21
Depository institutions, 4 -6 , 12
Federal Reserve Banks, 10
U.S. reserve assets, 51
Residential mortgage loans, 34, 35
Retail credit and retail sales, 36, 42
SAVING
Flow o f funds, 37-41
National income accounts, 48




Savings deposits (See Time and savings deposits)
Savings institutions, 35, 36, 37-41
Securities (See also specific types)
Federal and federally sponsored credit agencies, 30
Foreign transactions, 60
New issues, 31
Prices, 24
Special drawing rights, 5, 10, 50, 51
State and local governments
Holdings of U S . government securities, 27
New security issues, 31
Rates on securities, 23
Stock market, selected statistics, 24
Stocks (See also Securities)
New issues, 31
Prices, 24
Student Loan Marketing Association, 30
TAX receipts, federal, 26
Thrift institutions, 4. (See also Credit unions and Savings
institutions)
Time and savings deposits, 4, 13, 15-21
Trade, foreign, 51
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 10, 25
Treasury operating balance, 25
UNEMPLOYMENT, 42
U.S. government balances
Commercial bank holdings, 15-21
Treasury deposits at Reserve Banks, 5, 10, 25
U.S. government securities
Bank holdings, 15-21, 27
Dealer transactions, positions, and financing, 29
Federal Reserve Banks holdings, 5, 10, 11, 27
Foreign and international holdings and transactions, 10, 27, 61
Open market transactions, 9
Outstanding, by type and holder, 27, 28
Rates, 23
U.S. international transactions, 50-62
Utilities, production, 45
VETERANS Administration, 34, 35
WEEKLY reporting banks, 17, 18
Wholesale (producer) prices, 42, 47
YIELDS (See Interest rates)

A66

Federal Reserve Bulletin □ March 2001

Federal Reserve Board of Governors
and Official Staff
A

lan

R oger

O

G r een spa n ,

W.

Chairman
Jr., Vice Chairman

L

aurence

M

D

iv is io n o f in t e r n a t io n a l

F er g u so n ,

f f ic e o f b o a r d

em bers

Edw ard

W. K e l l e y , Jr.
H. M e y e r

L y n n S. F ox, A ssista n t to the B oard
M i c h e l l e A . S m i t h , A ssista n t to the Board

F in a n c e

K a r e n H . J o h n s o n , D irecto r
D a v i d H . H o w a r d , D epu ty D irecto r

D o n a l d J. W i n n , A ssista n t to the B oard

V i n c e n t R . R e i n h a r t , D epu ty D irector

W i n t h r o p P. H a m b l e y , D epu ty C ongressional Liaison

T h o m a s A . C o n n o r s , A ssociate D irector

J o h n L o p e z , S pecial A ssistan t to the B oard

D a l e W . H e n d e r s o n , A sso cia te D irector

B o b S t a h l y M o o r e , S pecial A ssistan t to the B oard

R i c h a r d T. F r e e m a n , A ssistan t D irector

R o s a n n a P i a n a l t o - C a m e r o n , Special A ssistant to the Board

W i l l i a m L . H e l k i e , A ssistan t D irecto r

D a v i d W . S k i d m o r e , S pecial A ssistan t to the B oard

S t e v e n B . K a m in , A ssistan t D irecto r

D i a n e E . W e r n e k e , S pecial A ssistan t to the B oard

R a l p h W . T r y o n , A ssistan t D irector

Legal

D

d iv is io n

iv is io n o f

Research

and

J. V i r g i l M a t t i n g l y , J r ., G en eral Counsel
S c o t t G . A l v a r e z , A sso cia te G en eral Counsel

S t a t is t ic s

D a v i d J. S t o c k t o n , D irecto r
E d w a r d C . E t t i n , D epu ty D irecto r

R i c h a r d M . A s h t o n , A sso cia te G en eral Counsel
K a t h l e e n M . O ’D a y , A sso cia te G en eral Counsel
A n n E . M i s b a c k , A ssistan t G en eral Counsel
S a n d r a L . R i c h a r d s o n , A ssistan t G eneral Counsel
S t e p h e n L . S i c i l i a n o , A ssista n t G eneral Counsel
K a t h e r i n e H . W h e a t l e y , A ssistan t G eneral Counsel

O F F IC E O F TH E S E C R E T A R Y
J e n n i f e r J. J o h n s o n , S ecretary
R o b e r t d e V . F r i e r s o n , A sso cia te Secretary
B a r b a r a R . L o w r e y , A ssociate S ecretary an d Om budsm an

D IV IS IO N O F B A N K IN G
S u p e r v is io n a n d r e g

D a v i d W i l c o x , D epu ty D irecto r
W i l l i a m R . J o n e s , A ssociate D irector
M y r o n L . K w a s t , A sso cia te D irecto r
S t e p h e n D . O l i n e r , A sso cia te D irecto r
P a t r i c k M . P a r k i n s o n , A ssociate D irecto r
L a w r e n c e S l i f m a n , A ssociate D irector
C h a r l e s S . S t r u c k m e y e r , A sso cia te D irector
M a r t h a S . S c a n l o n , D epu ty A ssociate D irector
J o y c e K . Z i c k l e r , D epu ty A ssociate D irector
W a y n e S . P a s s m o r e , A ssistan t D irector
D a v i d L . R e i f s c h n e i d e r , A ssistan t D irector
J a n i c e S h a c k - M a r q u e z , A ssistan t D irector
A l i c e P a t r i c i a W h i t e , A ssista n t D irector

u l a t io n

G l e n n B . C a n n e r , S en ior A d v iser

R i c h a r d S p i l l e n k o t h e n , D irecto r

D a v i d S . J o n e s , Sen ior A d v iser

S t e p h e n C . S c h e m e r i n g , D epu ty D irector
H e r b e r t A . B i e r n , Senior A ssociate D irector

T h o m a s D . S im p s o n , Sen ior A d v iser

R o g e r T. C o l e , S enior A ssociate D irector

D

W i l l i a m A . R y b a c k , Senior A ssociate D irector
G e r a l d A . E d w a r d s , J r ., A ssociate D irector
S t e p h e n M . H o f f m a n , J r ., A sso cia te D irector
J a m e s V. H o u p t , A sso ciate D irector
J a c k P. J e n n i n g s , A ssociate D irector
M i c h a e l G . M a r t i n s o n , A ssociate D irector
M o l l y S . W a s s o m , A ssociate D irector
H o w a r d A . A m e r , D epu ty A ssociate D irector
N o r a h M . B a r g e r , D epu ty A ssociate D irector

iv is io n o f

M

onetary

A

f f a ir s

D o n a l d L . K o h n , D irecto r
D a v i d E . L i n d s e y , D epu ty D irecto r
B r i a n F. M a d i g a n , A sso cia te D irector
R i c h a r d D . P o r t e r , D epu ty A sso cia te D irector
W i l l i a m C . W h i t e s e l l , A ssistan t D irecto r
N o r m a n d R.V. B e r n a r d , S pecial A ssistan t to the Board

D

iv is io n o f

C

C

on su m er

o m m u n it y

A

B e t s y C r o s s , D epu ty A ssociate D irecto r

and

R i c h a r d A . S m a l l , D epu ty A ssociate D irector

D o l o r e s S . S m i t h , D irecto r

f f a ir s

D e b o r a h P. B a i l e y , A ssistan t D irecto r

G l e n n E . L o n e y , D epu ty D irecto r

B a r b a r a J. B o u c h a r d , A ssistan t D irector

S a n d r a F. B r a u n s t e i n , A ssistan t D irector

A n g e l a D e s m o n d , A ssistan t D irecto r

M a u r e e n P. E n g l i s h , A ssistan t D irector

J a m e s A . E m b e r s i t , A ssistan t D irecto r

A d r i e n n e D . H u r t , A ssistan t D irector

C h a r l e s H . H o l m , A ssistan t D irecto r

I r e n e S h a w n M c N u l t y , A ssista n t D irecto r

H e id i W i l l m a n n R i c h a r d s , A ssistan t D irector
W i l l i a m G . S p a n i e l , A ssistan t D irecto r
D a v i d M . W r i g h t , A ssistan t D irector
S i d n e y M . S u s s a n , A d v iser
W i l l i a m C . S c h n e i d e r , J r ., P roject Director,

N ation al Inform ation C enter




A67

E d w a r d M . G r a m l ic h

O f f ic e

of

Staff D

ir e c t o r f o r

D
M

anagem ent

S t e p h e n R . M a l p h r u s , S taff D irector

iv is io n o f r e s e r v e b a n k

and

Paym

ent

O p e r a t io n s

S ystem s

L o u i s e L . R o s e m a n , D irecto r
P a u l W. B e t t g e , A sso cia te D irector

M

a n a g e m e n t d iv is io n

K e n n e t h D . B u c k l e y , A ssistan t D irecto r

S t e p h e n J. C l a r k , A sso cia te Director, Finance Function

T i l l e n a G. C l a r k , A ssistan t D irector

D a r r e l l R . P a u l e y , A sso ciate Director, Human R esources

J o s e p h H . H a y e s , J r ., A ssistan t D irecto r

Function
C h r i s t i n e M . F i e l d s , A ssistan t Director, Human R esources

Function
S h e i l a C l a r k , EEO P rogram s D irector

J e f f r e y C . M a r q u a r d t , A ssistan t D irecto r
E d g a r A. M a r t i n d a l e , A ssistan t D irecto r
M a r s h a R e i d h i l l , A ssistan t D irecto r
J e f f J. S t e h m , A ssistan t D irector

D IV IS IO N O F S U P P O R T S E R V IC E S

O F F IC E O F T H E IN S P E C T O R G E N E R A L

R o b e r t E. F r a z i e r , D irecto r

B a r r y R . S n y d e r , In spector G eneral

G e o r g e M . L o p e z , A ssista n t D irector

D o n a l d L. R o b i n s o n , D epu ty In spector G eneral

D a v i d L. W i l l i a m s , A ssista n t D irector

D IV IS IO N O F IN F O R M A T IO N T E C H N O L O G Y
R i c h a r d C. S t e v e n s , D irecto r
M a r i a n n e M . E m e r s o n , D epu ty D irector
M a u r e e n T. H a n n a n , A ssociate D irector
R a y m o n d H. M a s s e y , A sso ciate D irector
G e a r y L. C u n n i n g h a m , A ssistan t D irector
W a y n e A. E d m o n d s o n , A ssistan t D irecto r
P o K y u n g K im , A ssista n t D irector
S u s a n F. M a r y c z , A ssista n t D irector
S h a r o n L. M o w r y , A ssista n t D irector
D a y W . R a d e b a u g h , J r ., A ssistan t D irector




A68

Federal Reserve Bulletin □ March 2001

Federal Open Market Committee
and Advisory Councils
F e d e r a l O p e n M a r k e t C o m m it t e e
M em bers
A l a n G r e e n s p a n , Chairman

W i l l i a m J. M c D o n o u g h , Vice Chairman

R o g e r W. F e r g u s o n , J r.

E d w a r d W. K e l l e y , Jr.

M

ic h a e l

H. M

E d w a r d M. G r a m l i c h

L a u r e n c e H. M e y e r

W

il l ia m

Poole

T h o m a s M. H o e n i g

C a t h y E. M in e h a n

o sk o w

A lternate M em bers
J e r r y L. J o r d a n

A n th o n y M . S a n to m e ro

R o b e r t D. M c T e e r , Jr.

G a r y H. S t e r n

J a m ie B. S t e w a r t , J r .

Staff
D o n a l d L . K o h n , S ecretary an d Econom ist

J e f f r e y C . F u h r e r , A ssociate E conom ist

N o r m a n d R .V . B e r n a r d , D epu ty Secretary

C r a i g S . H a k k i o , A ssociate E conom ist

L y n n S . F o x , A ssista n t Secretary

D a v i d H . H o w a r d , A ssociate E conom ist

G a r y P. G i l l u m , A ssistan t Secretary

W i l l i a m C . H u n t e r , A ssociate E conom ist

J. V i r g i l M a t t i n g l y , J r ., G en eral Counsel

D a v i d E . L i n d s e y , A ssociate E conom ist

T h o m a s C . B a x t e r , J r ., D epu ty G eneral Counsel

R o b e r t H . R a s c h e , A ssociate E conom ist

K a r e n H. J o h n s o n , Econom ist

V i n c e n t R . R e i n h a r t , A ssociate E conom ist

D a v i d J. S t o c k t o n , E conom ist

L a w r e n c e S l i f m a n , A sso cia te E conom ist

C h r i s t i n e M . C u m m in g , A ssociate Econom ist

P e t e r R . F i s h e r , M anager, System Open M arket Account

FEDERAL ADVISORY COUNCIL

D o u g l a s A. W a r n e r , III, P residen t
L a w r e n c e K . F i s h , Vice P residen t
L a w r e n c e K. F i s h , F ir s t District

A l a n G. M c N a l l y , Seventh District

D o u g l a s A. W a r n e r III, S e c o n d District

K a t i e S . W i n c h e s t e r , Eighth District

R o n a l d L . H a n k e y , T h ir d District

R . S c o t t J o n e s , Ninth District

D a v i d A . D a b e r k o , F o u r th District

C a m d e n R . F i n e , Tenth District

L . M. B a k e r , J r ., Fifth District

R i c h a r d W . E v a n s , J r ., Eleventh District

L . P h i l l i p H u m a n n , Sixth District

L i n n e t F. D e i l y , Twelfth District




J a m e s A n n a b l e , C o-Secretary
W i l l i a m J. K o r s v i k , C o-Secretary

A69

C o n su m e r A d v is o r y C o u n c il
L a u r e n A n d e r s o n , N ew Orleans, Louisiana, Chairm an
D o r o t h y B r o a d m a n , San Francisco, California, Vice Chairm an

A n t h o n y S . A b b a t e , S a d d le b r o o k , N ew J e r se y

A n n e S . L i, T r e n to n , N e w J e r s e y

T e r e s a A . B r y c e , S t. L o u is , M is s o u r i

J. P a t r i c k L id d y , C in c in n a t i, O h io

M a l c o l m B u s h , C h ic a g o , I llin o is

O s c a r M a r q u i s , P a rk R id g e , I llin o is

M a n u e l C a s a n o v a , J r ., Brow nsville, T e x a s

J e r e m y N o w a k , P h ila d e lp h ia , P e n n s y lv a n ia

C o n s t a n c e K . C h a m b e r l i n , R ic h m o n d , V ir g in ia

N a n c y P i e r c e , K a n s a s C ity , M is s o u r i

R o b e r t M . C h e a d l e , A d a , O k la h o m a

M a r t a R a m o s , S a n J u a n , P u e r to R ic o

M a r y E l l e n D o m e i e r , N ew U lm , M in n e s o ta

R o n a l d A . R e i t e r , S a n F r a n c is c o , California

L e s t e r W . F i r s t e n b e r g e r , E v a n s v i lle , In d ia n a

E l i z a b e t h R e n u a r t , B o s to n , M a ssa c h u se tts

J o h n C . G a m b o a , S a n F r a n c is c o , C a lifo r n ia

R u s s e l l W . S c h r a d e r , S a n F r a n c is c o , California

E a r l J a r o l i m e k , F a r g o , N o r th D a k o ta

F r a n k T o r r e s , J r ., W a s h in g to n , D is t r ic t o f C o lu m b ia

W i l l i e M . J o n e s , B o sto n , M a ssa ch u setts

G a r y S . W a s h i n g t o n , C h i c a g o , I llin o is

M . D e a n K e y e s , S t. L o u is , M is s o u r i

R o b e r t L . W y n n II, M a d is o n , W is c o n s in

Th r if t I n s t it u t io n s A d v is o r y C o u n c il
T h o m a s S. J o h n s o n , N ew York, N ew York, Presiden t
M a r k H. W r i g h t , San Antonio, Texas, Vice P residen t

T o m R . D o r e t y , Tampa, Florida

J a m e s F. M c K e n n a , Brookfield, W is c o n s in

R o n a l d S . E l i a s o n , Provo, Utah

C h a r l e s C . P e a r s o n , J r ., H a r r isb u r g , P e n n s y lv a n ia

D . R . G r im e s , Alpharetta, Georgia

H e r b e r t M . S a n d l e r , Oakland, C a lif o r n ia

C o r n e l i u s D. M a h o n e y , W estfield, M assachusetts

E v e r e t t S t i l e s , Franklin, N o r th C a r o lin a

K a r e n L. M c C o r m i c k , Port A n geles, W ashington

C l a r e n c e Z u g e l t e r , K a n s a s C ity , M is s o u r i




A70

Federal Reserve Bulletin □ March 2001

Federal Reserve Board Publications
F o r ordering assistan ce, w rite PUBLICATIONS SERVICES,
M S-127, Board o f G overnors o f the Federal Reserve System ,
W ashington, DC 20551, or telephone (202) 452-3244, or FAX
(202) 728 -5 8 8 6 . You m ay also use the p u b lica tio n s order
fo rm a va ila b le on the B o a r d ’ W orld Wide Web site
s
(http://w w w .federalreserve.gov). When a charge is indicated, p a y ­
m ent should accom pan y request an d be m ade p a y a b le to the
B oard o f G overn ors o f the F ederal R eserve System o r m ay be
ordered via M astercard, Visa, o r A m erican Express. P aym en t from
fo reig n residents sh ou ld be draw n on a U.S. bank.

B

o oks and

M

The F ederal

is c e l l a n e o u s p u b l ic a t io n s

R eser ve

S y st e m — P ur po ses

and

F u n c t io n s .

1994. 157 pp.
A n n u a l R e p o r t , 1999.
A n n u a l R e p o r t : B u d g e t R e v i e w , 2000.
F e d e r a l R e s e r v e B u l l e t i n . Monthly. $25.00 per year or $2.50

each in the United States, its possession s, Canada, and
M exico. Elsewhere, $35.00 per year or $3.00 each.
A

S t a t i s t i c a l D i g e s t : p e r io d c o v e r e d , r e le a s e d a te , n u m ­

nnual

ber o f pages, and price.
October 1982
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pp.
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S e le c t e d I n t e r e s t a n d E x c h a n g e R a t e s — W e e k ly S e r ie s o f
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States, its possession s, Canada, and M exico. Elsewhere,
$35.00 per year or $.80 each.
R e g u l a t io n s

of the

B oard

of

G overnors

of the

F ederal

R eser ve S y st e m .
P e r c e n t a g e R a t e T a b l e s (Truth in Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp.
Vol. II (Irregular Transactions). 1969. 116 pp. Each volum e
$5.00.

A nnual

G u id e

to

th e

F lo w

of

Funds

A cc o u n ts.

January 2000.

1,186 pp. $20.00 each.
S e r v i c e . Loose-leaf; updated
monthly. (Requests must be prepaid.)
Consum er and Community Affairs Handbook. $75.00 per year.
M onetary P olicy 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. Four vols. (Contains all
four Handbooks plus substantial additional material.) $200.00
per year.

F e d e r a l R eserv e R e g u la to r y




R ates f o r su bscribers ou tside the U nited States are as fo llo w s
an d include addition al a ir m ail costs:
Federal Reserve Regulatory Service, $ 250.00 per year.
Each Handbook, $90.00 per year.
F e d e r a l R e se r v e R e g u la t o r y S e r v ic e f o r P e r s o n a l
C o m p u t e r s . CD-ROM ; updated monthly.

Standalone PC. $300 per year.
Network, m axim um 1 concurrent user. $300 per year.
Network, m axim um 10 concurrent users. $750 per year.
Network, m axim um 50 concurrent users. $2,000 per year.
Network, m axim um 100 concurrent users. $3,000 per year.
Subscribers outside the U nited S tates sh ou ld a d d $50 to co ver
addition al airm ail costs.
T h e F e d e r a l R e s e r v e A c t a n d O t h e r S t a t u t o r y P r o v is io n s
A f f e c t i n g t h e F e d e r a l R e s e r v e S y s t e m , as amended

through October 1998. 723 pp. $20.00 each.
T h e U .S . E c o n o m y i n a n I n t e r d e p e n d e n t W o r l d : A M u l t i ­
c o u n t r y M o d e l , M ay 1984. 590 pp. $14.50 each.
I n d u s t r i a l P r o d u c t i o n — 1986 E d i t i o n . D ecem ber 1986.

440 pp. $9.00 each.
F in a n c ia l

F u tu r es

and

O p tio n s

in

th e

U.S. E c o n o m y .

D ecem ber 1986. 264 pp. $10 .0 0 each.
F i n a n c i a l S e c t o r s in

O p e n E c o n o m ie s : E m p ir ic a l A n a l y ­

s is a n d P o l i c y I s s u e s . A ugust 1990. 608 pp. $25.00 each.
R is k M e a s u r e m e n t a n d S y s t e m i c R is k : P r o c e e d i n g s o f a
J o i n t C e n t r a l B a n k R e s e a r c h C o n f e r e n c e . 1996.

578 pp. $25.00 each.

E d u c a t io n Pa m p h l e t s
Short pam ph lets suitable f o r classroom use. M u ltiple copies are
a vailable w ithout charge.
Consum er Handbook on Adjustable Rate M ortgages
Consum er Handbook to Credit Protection Laws
A Guide to Business Credit for W om en, M inorities, and Small
Businesses
Series on the Structure o f the F ederal R eserve System
The Board o f Governors o f the Federal R eserve System
The Federal Open Market Com m ittee
Federal Reserve Bank Board o f Directors
Federal Reserve Banks
A Consum er’s Guide to M ortgage Lock-Ins
A Consum er’s Guide to M ortgage Settlem ent Costs
A Consum er’s Guide to M ortgage Refinancings
H om e M ortgages: Understanding the Process and Your Right
to Fair Lending
H ow to F ile a Consumer Com plaint about a Bank
Making Sense o f Savings
W elcom e to the Federal Reserve
W hen Your H om e is on the Line: What You Should Know
About H om e Equity Lines o f Credit
K eys to V ehicle Leasing (also available in Spanish)
Looking for the B est M ortgage (also available in Spanish)

A71

STAFF STUDIES: Only Sum m aries P rinted in the
B U L L E T IN
Studies and p a p e rs on econom ic a n d finan cial su bjects that are o f
g en eral interest. R equests to obtain single copies o f the fu ll text o r
to be a d d ed to the m ailing list f o r the series m ay be sen t to
P ublication s Services.

164. T h e 1 9 8 9 -9 2 C r e d i t C r u n c h f o r R e a l E s t a t e , by
James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
167. A S u m m a r y o f M e r g e r P e r f o r m a n c e S t u d i e s i n B a n k ­
i n g , 19 8 0 -9 3 , a n d a n A s s e s s m e n t o f t h e “ O p e r a t i n g
P e rfo rm a n ce”

and

“E v e n t

S tu d y ”

M e th o d o lo g ie s ,

by Stephen A . Rhoades. July 1994. 37 pp.
170. T h e C o s t o f I m p l e m e n t i n g C o n s u m e r F i n a n c i a l R e g u ­

Staff Studies 1 -1 5 8 , 161, 163, 165, 166, 168, and 169 are out
o f print. Staff Studies 1 6 5 -1 7 4 are available on line at
w w w .federalreserve.gov/pubs/staffstudies.
159. N e w D a t a o n t h e P e r f o r m a n c e o f N o n b a n k S u b s i d i ­
a r i e s o f B a n k H o l d i n g C o m p a n ie s , by N e l l i e L ia n g an d
D o n a ld Savage. February 1990. 12 p p .
160. B a n k i n g M a r k e t s a n d t h e U s e o f F i n a n c i a l S e r ­
v i c e s b y S m a l l a n d M e d i u m - S i z e d B u s i n e s s e s , by
Gregory E. Elliehausen and John D. W olken. September
1990. 35 pp.
162. E v i d e n c e o n t h e S i z e o f B a n k i n g M a r k e t s f r o m M o r t ­
g a g e L o a n R a t e s i n T w e n t y C i t i e s , b y S t e p h e n A.
R h o a d e s . F e b r u a r y 1992. 11 p p .




la t io n s : A n A n a ly s is o f E x p e r ie n c e w it h t h e T r u th
i n S a v i n g s A c t , by Gregory Elliehausen and Barbara R .

Lowrey. D ecem ber 1997. 17 pp.
171. T h e C o s t o f B a n k R e g u l a t i o n : A R e v i e w o f t h e E v i ­
d e n c e , by Gregory Elliehausen. April 1998. 35 pp.
172. U s i n g S u b o r d i n a t e d D e b t a s a n I n s t r u m e n t o f M a r ­
k e t D i s c i p l i n e , by Study Group on Subordinated N otes
and Debentures, Federal Reserve System . D ecem ber 1999.
69 pp.
173. I m p r o v i n g P u b l i c D i s c l o s u r e i n B a n k i n g , by Study
Group on D isclosure, Federal R eserve System . March 2000.
35 pp.
174. B a n k M e r g e r s a n d B a n k i n g S t r u c t u r e i n t h e U n i t e d
S t a t e s , 1 9 8 0 -9 8 , by Stephen Rhoades. August 2000. 33 pp.

A72

Federal Reserve Bulletin □ March 2001

Maps of the Federal Reserve System

ew

York

■p »- i
w

%

HAWAII

L egend

Both pages
■ Federal Reserve Bank city
□

Board of Governors of the Federal
Reserve System, Washington, D.C.

Facing page
• Federal Reserve Branch city
— Branch boundary

N ote

The Federal Reserve officially identifies Districts by num­
ber and Reserve Bank city (shown on both pages) and by
letter (shown on the facing page).
In the 12th District, the Seattle Branch serves Alaska,
and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories as
follows: the New York Bank serves the Commonwealth




of Puerto Rico and the U.S. Virgin Islands; the San Fran­
cisco Bank serves American Samoa, Guam, and the Com­
monwealth of the Northern M ariana Islands. The Board of
Governors revised the branch boundaries of the System
most recently in February 1996.

A73

1-A

2-B

3-C

4-D

! ■
/

NJ

N

ew

Baltimore

md

inati

Buffalo

B o ston

5-E

Pittsburgh

Yo r k

6-F

NY

P h il a d e l p h ia

C leveland

R ic h m o n d

8-H

7-G

sville

A tlanta

C h ic a g o

S t . L o u is

9-1
MN

M

in n e a p o l is

12-L

10-J

K a n s a s C it y




S a n F r a n c is c o

A74

Federal Reserve Bulletin □ March 2001

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip

Chairman
Deputy Chairman

BOSTON* .............................02106

William C. Brainard
William O. Taylor

NEW Y O R K *........................ 10045
Buffalo ............................... 14240
PHILADELPHIA ................. 19105

Peter G. Peterson
Charles A. Heimbold, Jr.
Bal Dixit
Charisse R. Lillie
Glenn A. Schaeffer

CLEVELAND* .................... 44101

David H. Hoag
Robert W. Mahoney
Cincinnati ..........................45201 George C. Juilfs
Pittsburgh .......................... 15230 Charles E. Bunch

RICHMOND* ...................... 23219
Baltimore ........................... 21203
Charlotte............................. 28230

Jeremiah J. Sheehan
Wesley S. Williams, Jr.
George L. Russell, Jr.
James F. Goodmon

President
First Vice President

Vice President
in charge of branch

Cathy E. Minehan
Paul M. Connolly
William J. McDonough
Jamie B. Stewart, Jr.
Barbara L. Walter1
Anthony M. Santomero
William H. Stone, Jr.
Jerry L. Jordan
Sandra Pianalto
Barbara B. Henshaw
Robert B. Schaub
J. Alfred Broaddus, Jr.
Walter A. Varvel
William J. Tignanelli1
Dan M. Bechter1

ATLANTA ............................. 30303 John F. Wieland
Paula Lovell
Birmingham ...................... 35283 Catherine Sloss Crenshaw
Jacksonville ...................... 32231 Julie K. Hilton
Miami ................................ 33152 Mark T. Sodders
Nashville ........................... 37203 Whitney Johns Martin
New Orleans .....................70161 Ben Tom Roberts

Jack Guynn

CHICAGO* ........................... 60690

Michael H. Moskow
William C. Conrad

Detroit ................................ 48231

Arthur C. Martinez
Robert J. Darnall
Timothy D. Leuliette

ST. LOUIS ............................. 63166

Charles W. Mueller
Walter L. Metcalfe, Jr.
Little Rock ........................ 72203 Vick M. Crawley
L o u isv ille........................... 40232 Roger Reynolds
Memphis ........................... 38101 Gregory M. Duckett

MINNEAPOLIS ...................55480
Helena ................................ 59601

James J. Howard
Ronald N. Zwieg
Thomas O. Markle

KANSAS C IT Y .....................64198

Terrence P. Dunn
Jo Marie Dancik
D en v er................................ 80217 Kathryn A. Paul
Oklahoma City ................. 73125 Patricia B. Fennell
O m aha................................ 68102 Gladys Styles Johnston

D A L L A S .................................75201

H. B. Zachry, Jr.
Patricia M. Patterson
El Paso ............................... 79999 Beauregard Brite White
Houston ............................. 77252 Edward O. Gaylord
San Antonio ...................... 78295 Patty P. Mueller

SAN FRANCISCO ..............94120

Nelson C. Rising
George M. Scalise
Los Angeles ...................... 90051 William D. Jones
Portland ............................. 97208 Nancy Wilgenbusch
Salt Lake City ................... 84125 H. Roger Boyer
Seattle .................................98124 Richard R. Sonstelie

Patrick K. BarronJames M. McKee
Andre T. Anderson
Robert J. Slack
James T. Curry III
Melvyn K. Purcell1
Robert J. M usso1

David R. Allardice1
William Poole
W. LeGrande Rives
Robert A. Hopkins
Thomas A. Boone
Martha Perine Beard
Gary H. Stern
James M. Lyon
Samuel H. Gane
Thomas M. Hoenig
Richard K. Rasdall
Carl M. G am bs1
Kelly J. Dubbert
Steven D. Evans
Robert D. McTeer, Jr.
Helen E. Holcomb
Sammie C. Clay
Robert Smith III1
James L. S tu ll1
Robert T. Parry
John F. Moore
Mark L. M ullinix2
Raymond H. Laurence1
Andrea P. Wolcott
Gordon R. G. Werkema2

’'Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424;
Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee,
Wisconsin 53202; and Peoria, Illinois 61607.
1. Senior Vice President.
2. Executive Vice President




A75

Publications of Interest
F e d e r a l R e s e r v e R e g u l a t o r y S e r v ic e
To prom ote public understanding o f its regulatory func­
tions, the B oard publishes the Federal Reserve Regu­
latory Service, a four-volum e loose-leaf service con­
taining all B oard regulations as w ell as related statutes,
interpretations, policy statem ents, rulings, and staff
opinions. For those w ith a m ore specialized interest in
the B o ard’s regulations, parts o f this service are pub­
lished separately as handbooks pertaining to m onetary
policy, securities credit, consum er affairs, and the pay­
m ent system.
T hese publications are designed to help those who
m ust frequently refer to the B oard’s regulatory m ateri­
als. They are updated monthly, and each contains cita­
tion indexes and a subject index.

The Monetary Policy and Reserve Requirements
Handbook contains R egulations A, D, and Q, plus
related materials.

The Securities Credit Transactions Handbook con­
tains R egulations T, U, and X, dealing w ith exten­
sions o f credit for the purchase o f securities, together
w ith related statutes, B oard interpretations, rulings,
and staff opinions. A lso included is the B o ard ’s list of
foreign m argin stocks.
The Consumer and Community Affairs Handbook
contains R egulations B, C, E, G, M , P, Z, AA, BB, and
DD, and associated m aterials.

The Payment System Handbook deals w ith expedited
funds availability, check collection, w ire transfers, and
risk-reduction policy. It includes Regulations CC, J, and
EE, related statutes and com m entaries, and policy
statem ents on risk reduction in the paym ent system.
F or dom estic subscribers, the annual rate is $200 for
the Federal Reserve Regulatory Service and $75 for
each handbook. F or subscribers outside the U nited
States, the price including additional air m ail costs is
$250 for the service and $90 for each handbook.
The Federal Reserve Regulatory Service is also avail­
able on CD -R O M for use on personal com puters. For a
standalone PC, the annual subscription fee is $300. For
netw ork subscriptions, the annual fee is $300 for 1 con­
current user, $750 for a m axim um o f 10 concurrent
users, $2,000 for a m axim um o f 50 concurrent users,
and $3,000 for a m axim um o f 100 concurrent users.
Subscribers outside the U nited States should add $50
to cover additional airm ail costs. For further inform a­
tion, call (202) 452-3244.
A ll subscription requests m ust be accom panied by a
check or m oney order payable to the B oard o f G over­
nors o f the Federal R eserve System . O rders should be
addressed to Publications Services, m ail stop 127, Board
o f G overnors o f the Federal R eserve System , W ashing­
ton, DC 20551.

GU IDE TO THE FL O W OF FUNDS ACCO U NTS
A new edition o f Guide to the Flow of Funds Accounts
is now available from the B oard o f G overnors. The new
edition incorporates changes to the accounts since the
initial edition was published in 1993. L ike the earlier
publication, it explains the principles underlying the
flow o f funds accounts and describes how the accounts
are constructed. It lists each flow series in the B oard’s
flow o f funds publication, “ Flow o f Funds A ccounts of
the U nited S tates” (the Z .l quarterly statistical release),




and describes how the series is derived from source
data. The Guide also explains the relationship betw een
the flow o f funds accounts and the national incom e and
product accounts and discusses the analytical uses of
flow o f funds data. T he publication can be purchased,
for $20.00, from Publications Services, B oard o f G over­
nors o f the Federal R eserve System , W ashington, DC
20551.

A76

Federal Reserve Bulletin □ March 2001

Federal Reserve Statistical Releases
Available on the Commerce Department’s
Economic Bulletin Board
The Board of Governors of the Federal Reserve System makes some of its statistical releases available to
the public through the U.S. Department of Commerce’s economic bulletin board. Computer access
to the releases can be obtained by subscription.

For further information regarding a subscription to
the economic bulletin board, please call (202) 4821986. The releases transmitted to the economic bulletin board, on a regular basis, are the following:

Reference
Number

Statistical release

Frequency o f 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.l

Flow of Funds

Quarterly





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102