Full text of Federal Reserve Bulletin : March 2003
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Volume 89 • Number 3 • March 2003
Federal Reserve
BULLETIN
Board of Governors of the Federal Reserve System, Washington, D.C.
PUBLICATIONS COMMITTEE
Lynn S. Fox, Chair • Jennifer J. Johnson • Karen H. Johnson • Stephen R. Malphrus • J. Virgil Mattingly, Jr.
• Vincent R. Reinhart • Dolores S. Smith • Richard Spillenkothen • 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 Publications Department under the direction of Lucretia M. Boyer.
Table of Contents
93 MONETARY POLICY REPORT TO THE
CONGRESS
The economy of the United States has suffered a
series of blows in the past few years, including
the fall in equity market values that began in
2000, cutbacks in capital spending in 2001, the
horrific terrorist attacks of September 11, the
emergence of disturbing evidence of corporate
malfeasance, and an escalation of geopolitical risks. Despite these adversities, the nation's
economy emerged from its downturn in 2001 to
post moderate economic growth last year. The
recovery was supported by accommodative
monetary and fiscal policies and undergirded by
unusually rapid productivity growth that boosted
household incomes and held down business
costs. The productivity performance was also
associated with a rapid expansion of the economy's potential, and economic slack increased
over the year despite the growth in aggregate
demand.
On net, the economy remained sluggish at the
end of 2002 and early this year. Mindful of the
especially high degree of uncertainty attending
the economic outlook in the current geopolitical
environment, the members of the FOMC believe
the most likely outcome to be that fundamentals will support a strengthening of economic
growth, and inflation pressures are anticipated to
remain well contained.
125
Interagency guidance on identifying information security risks.
Testing reveals no anthrax on Board mail
sample.
Release of minutes of discount rate meetings.
Enforcement actions.
Board staff changes.
New booklet available on identity theft.
Publication of the December 2002 update to the
Bank Holding Company Supervision Manual.
Discontinuance of statistical table 3.21.
Revision to the money stock data.
136 LEGAL
DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and pending cases.
A1 FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as of
January 29, 2003.
A 3 GUIDE
TO
TABLES
A4 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A44 International Statistics
ANNOUNCEMENTS
Federal Open Market Committee directive.
A 5 7 GUIDE TO SPECIAL TABLES
STATISTICAL
RELEASES
Statement by Chairman Greenspan on the retirement of William J. McDonough, president of the
Federal Reserve Bank of New York.
A 5 8 INDEX
Adoption of final rule implementing SarbanesOxley Act.
A 6 0 BOARD
TO STATISTICAL
OF GOVERNORS
AND
TABLES
AND
STAFF
Revision and interpretation of Regulation K.
A 6 2 FEDERAL OPEN MARKET COMMITTEE
STAFF; ADVISORY
COUNCILS
Reauthorization of the National Flood Insurance
Program.
A64 FEDERAL RESERVE BOARD PUBLICATIONS
Changes to increase efficiency in Federal
Reserve Bank check services.
A 6 6 MAPS
Interagency guidance on credit card account
management and loss allowance practices.
A 6 8 FEDERAL RESERVE
AND
OFFICES
OF THE FEDERAL
RESERVE
BANKS,
AND
SYSTEM
BRANCHES,
Monetary Policy Report to the Congress
Report submitted to the Congress on February 11,
2003, pursuant to section 2B of the Federal Reserve
Act
MONETARY
ECONOMIC
POLICY AND
OUTLOOK
THE
The economy of the United States has suffered a
series of blows in the past few years, including the
fall in equity market values that began in 2000,
cutbacks in capital spending in 2001, the horrific
terrorist attacks of September 11, the emergence of
disturbing evidence of corporate malfeasance, and an
escalation of geopolitical risks. Despite these adversities, the nation's economy emerged from its downturn in 2001 to post moderate economic growth last
year. The recovery was supported by accommodative
monetary and fiscal policies and undergirded by
unusually rapid productivity growth that boosted
household incomes and held down business costs.
The productivity performance was also associated
with a rapid expansion of the economy's potential,
and economic slack increased over the year despite
the growth in aggregate demand.
After turning up in late 2001, activity began to
strengthen more noticeably early last year. Sharp
inventory cutbacks in 2001 had brought stocks into
better alignment with gradually rising final sales, and
firms began to increase production in the first quarter
of 2002 to curtail further inventory runoffs. Moreover, businesses slowed their contraction of investment spending and began to increase outlays for
some types of capital equipment. Household spending on both personal consumption items and housing
remained solid and was supported by another installment of tax reductions, widespread price discounting,
and low mortgage interest rates. By midyear, the cutbacks in employment came to an end, and private
payrolls started to edge higher.
Although economic performance appeared to be
gradually improving, the tentative nature of this
improvement warranted the continuation of a highly
accommodative stance of monetary policy. Accordingly, the Federal Open Market Committee (FOMC)
held the federal funds rate at PA percent through the
first part of the year. In March, however, the FOMC
shifted from an assessment that the risks over the
foreseeable future to its goals of maximum sustainable growth and price stability were tilted toward
economic weakness to an assessment that the risks
were balanced.
Around midyear, the economy began to struggle
again. Concerns about corporate governance came
to weigh heavily on investors' confidence, and geopolitical tensions, especially the situation in Iraq,
elevated uncertainties about the future economic climate. Equity prices fell during the summer, liquidity
eroded in corporate debt markets, and risk spreads
widened. Businesses once again became hesitant
to spend and to hire, and both manufacturing output
and private payrolls began to decline. State and local
governments struggled to cope with deteriorating
fiscal positions, and the economies of some of our
major trading partners remained weak. Although the
already accommodative stance of monetary policy
and strong upward trend of productivity were providing important support to spending, the Committee
perceived a risk that the near-term weakening could
become entrenched. In August, the FOMC adjusted
its weighting of risks toward economic weakness,
and in November, it reduced the targeted federal
funds rate 50 basis points, to 1 lA percent. The policy
easing allowed the Committee to return to an assessment that the risks to its goals were balanced. With
inflation expectations well contained, this additional
monetary stimulus seemed to offer worthwhile insurance against the threat of persistent economic weakness and substantial declines in inflation from already
low levels.
On net, the economy remained sluggish at the end
of 2002 and early this year. The household sector
continued to be a solid source of demand. Motor
vehicle sales surged at year-end on the tide of another
round of aggressive discounting by the manufacturers, other consumer outlays trended higher, and activity in housing markets remained exceptionally strong.
Concerns about corporate governance appeared to
recede somewhat late last year, in part because no
new revelations of major wrongdoing had emerged.
However, the ongoing situation in Iraq, civil strife in
Venezuela that has curtailed oil production, and tensions on the Korean peninsula have sustained investors' uncertainty about economic prospects and have
94
Federal Reserve Bulletin • March 2003
pushed prices higher on world oil markets. Faced
with this uncertainty, businesses have been cautious
in spending and changed payrolls little, on net, over
December and January.
Mindful of the especially high degree of uncertainty attending the economic outlook in the current
geopolitical environment, the members of the FOMC
believe the most likely outcome to be that fundamentals will support a strengthening of economic growth.
Business caution is anticipated to give way over the
course of the year to clearer signs of improving sales.
Inventories are lean relative to sales at present, and
restocking is likely to provide an additional impetus
to production in the period ahead. The rapid expansion of productivity, the waning effects of earlier
declines in household wealth, and the highly accommodative stance of monetary policy should also continue to boost activity. Although state and local governments face budgetary problems, their restraint is
likely to offset only a part of the stimulus from past
and prospective fiscal policy actions at the federal
level. In addition, the strengthening economies of our
major trading partners along with the improving competitiveness of U.S. products ought to support demand
for our exports. Taken together, these factors are
expected to lead to a faster pace of economic expansion, while inflation pressures are anticipated to
remain well contained.
Monetary Policy, Financial Markets, and
the Economy over 2002 and Early 2003
As economic growth picked up during the early
months of 2002, the FOMC maintained its target
for the federal funds rate at 13A percent. A sharply
reduced pace of inventory liquidation accounted for a
significant portion of the step-up in real GDP growth,
but other indicators also suggested that the economy
was gaining momentum. Reductions in business outlays on equipment and software had moderated significantly after dropping precipitously in 2001, and
consumer spending was well maintained by sizable
gains in real disposable personal income. Residential
construction activity was spurred by low home mortgage interest rates. The improvement in economic
conditions sparked a rally in equity markets late in
the first quarter and pushed up yields on longer-term
Treasury instruments and investment-grade corporate
bonds; yields on speculative-grade bonds declined
in reaction to brighter economic prospects and the
perceived reduction in credit risk. Meanwhile, surging energy prices exerted upward pressure on overall
inflation, but still-appreciable slack in resource utilization and a strong upward trend in private-sector
productivity were holding down core price inflation.
At both its March and May meetings, the FOMC
noted that the apparent vigor of the economy was
importantly attributable to a slowdown in the pace of
inventory liquidation and that considerable uncertainty surrounded the outlook for final sales over the
next several quarters. The Committee was especially
concerned about prospects for a rebound in business fixed investment, which it viewed as key to
ensuring sustainable economic expansion. Although
the decline in investment spending during the first
quarter of 2002 was the smallest in a year, gloomy
business sentiment and large margins of excess
capacity in numerous industries were likely to hamper capital expenditures. According to anecdotal
Selected interest rates
Percent
2001
NOTE. The data are daily and extend through February 5, 2003. The dates
on the horizontal axis are those of scheduled FOMC meetings and of any
intermeeting policy actions. On January 9, 2003, the Federal Reserve changed
2002
2003
the main credit program offered at the discount window by terminating the
adjustment credit program and beginning the primary credit program,
Monetary Policy Report to the Congress
reports, many firms were unwilling to expand capacity until they saw more conclusive evidence of growing sales and profits. At the same time, however, the
FOMC noted that, with the federal funds rate unusually low on an inflation-adjusted basis and considerable fiscal stimulus in train, macroeconomic policies
would provide strong support to further economic
expansion. Against this backdrop, the Committee at
the March 19 meeting judged the accommodative
stance of monetary policy to be appropriate and
announced that it considered the risks to achieving its
long-run objectives as being balanced over the foreseeable future, judgments it retained at its meeting in
early May.
The information reviewed at the June 25-26
FOMC meeting confirmed that the economy was
expanding but at a slower pace than earlier in the
year. As expected, the degree of impetus to economic
activity from decelerating inventory liquidation had
moderated. Residential investment and consumer
spending also had slowed appreciably after surging
earlier in the year. The most recent data on orders
and shipments suggested a small upturn in business
spending on equipment and software, but the
improvement in capital spending appeared to be limited, unevenly distributed across industries, and not
yet firmly indicative of sustained advance. Industrial
production continued to increase, and the unemployment rate declined somewhat.
In financial markets, investors and lenders had
apparently become more risk averse in reaction to the
mixed tone of economic data releases, growing geopolitical tensions, further warnings about terrorist
attacks, and additional revelations of dubious corporate accounting practices. In concert, these developments pushed down yields on longer-term Treasury
securities, while interest rates on lower-quality corporate bonds rose notably, and equity prices dropped
sharply. Although the economy continued to expand
and the prospects for accelerating aggregate demand
remained favorable, downbeat business sentiment and
skittish financial markets rendered the timing and
extent of the expected strengthening of the expansion subject to considerable uncertainty. In these circumstances, the FOMC left the federal funds rate
unchanged to keep monetary policy very accommodative and once again assessed the risks to the outlook as being balanced.
By the time of the August 13 FOMC meeting, it
had become apparent that economic activity had lost
some of its earlier momentum. Turbulence in financial markets appeared to be holding back the pace of
the economic expansion. Market participants focused
their attention on the lack of convincing evidence that
95
the recovery was gaining traction and the possibility
that more news of corporate misdeeds would surface in the run-up to the Securities and Exchange
Commission's August 14 deadline for the certification of financial statements by corporate executives.
Although the cumulative losses in financial wealth
since 2000 were restraining expenditures by households, very low mortgage interest rates were helping
to sustain robust demand for housing. Moreover, the
financial resources made available by a rapid pace
of mortgage refinancing activity, in combination with
attractive incentives offered by auto manufacturers,
supported other consumer spending. The Committee
continued to judge the prevailing degree of monetary accommodation as appropriate to foster a solid
expansion that would bring the economy to fuller
resource utilization. At the same time, the Committee recognized the considerable risks to that outlook
and the potential adverse consequences for economic
prospects from possible additional deterioration of
financial conditions. The members noted, however,
that a further easing of monetary policy, if it came to
be viewed as appropriate, could be accomplished in
a timely manner. In light of these considerations, the
FOMC opted to retain a target rate of l3A percent for
the federal funds rate, but it viewed the risks to the
economy as having shifted from balanced to being
tilted toward economic weakness.
When the FOMC met on September 24, data indicated that economic growth had picked up in the third
quarter, on average, buoyed in part by a surge in
motor vehicle production. The uneventful passing of
the mid-August deadline for recertification of corporate financial statements briefly alleviated investors'
skittishness in debt and equity markets. However, the
most timely information suggested that some softening in economic activity had occurred late in the
summer. Those economic reports, along with a darker
outlook for corporate profits and escalating fears of a
possible war against Iraq, led market participants to
revise down their expectations for the economy.
Equity prices and yields on both longer-term Treasury and private securities moved sharply lower in
early autumn. In the Committee's view, heightened
geopolitical tensions constituted a significant additional source of uncertainty clouding the economic
outlook. Still, fundamentals suggested reasonable
prospects for continued expansion. Accordingly, the
FOMC left the federal funds rate unchanged at the
close of the September meeting but also reiterated its
view that the risks to the outlook were weighted
toward economic weakness.
The information reviewed at the November 6 meeting indicated a more persistent spell of below-par
96
Federal Reserve Bulletin • March 2003
economic performance than the FOMC had anticipated earlier. With home mortgage rates at very low
levels, residential construction activity remained
high. But consumer spending had decelerated noticeably since midsummer under the combined weight
of stagnant employment and declining household
wealth resulting from further decreases in equity
prices. Worries about the potential for war against
Iraq, as well as persistent concerns about the course
of economic activity and corporate earnings, were
apparently engendering a high degree of risk aversion
among business executives that was constraining
capital spending and hiring. Despite a weakening in
the exchange value of the dollar, sluggish economic
growth among major trading partners spelled difficulties for U.S. exports, and a rebound in foreign output
seemed more likely to follow than to lead a rebound
at home. Moreover, economic slack that was larger
and more persistent than previously anticipated ran
the risk of reducing core inflation appreciably further
from already low levels. Given these considerations,
the Committee lowered its target for the federal funds
rate Vi percentage point, to VA percent. The relatively aggressive adjustment in the stance of monetary policy was deemed to offset the potential for
greater economic weakness, and the Committee
accordingly announced that it judged risks to the
outlook as balanced with respect to its long-run goals
of price stability and sustainable economic growth.
When the FOMC met on December 10, overall
conditions in financial markets had calmed considerably. Indicators of production and spending, however,
remained mixed. The manufacturing sector registered
large job losses in the autumn, and industrial production continued its slide, which had begun around
midyear. A more vigorous rebound in business fixed
investment was not evident, and indeed the recent
data on orders and shipments and anecdotal reports
from business contacts generally signaled continued
softness in capital spending. Very low home mortgage interest rates were supporting residential construction activity, but consumption expenditures were
sluggish. On balance, the Committee's view was
that in the absence of major shocks to consumer and
business confidence, a gradual strengthening of the
economic expansion was likely over the coming quarters, especially given the very accommodative stance
of monetary policy and probable further fiscal stimulus. The FOMC left the federal funds rate unchanged
and indicated that it continued to view the risks to the
outlook as balanced over the foreseeable future.
By the time of the FOMC meeting on January 2829, 2003, it had become apparent that the economy
had grown only slowly in the fourth quarter of last
year, but little evidence of cumulating weakness
appeared in the most recent data, and final demand
had held up reasonably well. The escalation of global
tensions weighed heavily on business and investor
sentiment. Firms apparently were remaining very
cautious in their hiring and capital spending, and
equity prices had declined on balance since the
December meeting. But yield spreads on corporate
debt—especially for riskier credits—narrowed further,
and longer-term Treasury yields declined slightly.
Although the fundamentals still pointed to favorable
prospects for economic growth beyond the near term,
geopolitical developments were making it especially
difficult to gauge the underlying strength of the economy, and uncertainties about the economic outlook
remained substantial. Against this background, the
Committee decided to leave the federal funds rate
unchanged and stated that it continued to judge the
risks to the outlook as balanced.
Economic Projections for 2003
An unusual degree of uncertainty attends the economic outlook at present, in large measure, but not
exclusively, because of potential geopolitical developments. But Federal Reserve policymakers believe
the most probable outcome for this year to be a
pickup in the pace of economic expansion. The central tendency of the real GDP forecasts made by the
members of the Board of Governors and the Federal
Reserve Bank presidents is 3 lA percent to 3!/2 percent, measured as the change between the final quarter of 2002 and the final quarter of this year. The full
range of these forecasts is 3 percent to 33A percent.
Of course, neither the central tendency nor the range
is intended to convey the uncertainties surrounding
Economic projections for 2003
Percent
Indicator
Memo:
2002 actual
Federal Reserve Governors
and
Reserve Bank presidents
Range
Central
tendency
t,nange, jounn quarter
to fourth quarter1
Nominal GDP
Real GDP
PCE chain-type price index
4.1
41/2-5'/2
2.8
3-3%
1.9
VA-PA VA-VA
Average level, fourth quarter
Civilian unemployment rate .
5.9
53/4-6
43/4-5
3 '/4-3 '/2
53/4-6
1. Change from average for fourth quarter of previous year to average for
fourth quarter of year indicated.
Monetary Policy Report to the Congress
the individual forecasts of the members. The civilian
unemployment rate is expected to end the year in the
53A percent to 6 percent range.
Apart from the geopolitical and other uncertainties, the forces affecting demand this year appear,
on balance, conducive to a strengthening of the economic expansion. Monetary policy remains highly
accommodative, and federal fiscal policy is and likely
will be stimulative. However, spending by many state
and local governments will continue to be restrained
by considerable budget difficulties. Activity abroad is
expected to improve this year, even if at a less robust
pace than in the United States; such growth together
with the improving competitiveness of U.S. products
should generate stronger demand for our exports.
Furthermore, robust gains in productivity, though
unlikely to be as large as in 2002, ought to continue
to promote both household and business spending.
Household purchasing power should be supported as
well by a retreat in the price of imported energy
products that is suggested by the oil futures market.
And the adverse effects on household spending from
past declines in equity wealth probably will begin to
wane.
A reduction of businesses' hesitancy to expand
investment and hiring is critical to the durability of
the expansion, and such a reduction should occur
gradually if geopolitical risks ease and profitability
improves. Inventories are relatively lean, and some
restocking ought to help boost production this year,
albeit to a much smaller extent than did last year's
cessation of sharp inventory liquidations. In addition,
the continued growth of final sales, the tax law provision for partial expensing of equipment purchases,
replacement demand, and a more hospitable financial
environment should induce many firms to increase
their capital spending. The growth of investment
likely will be tempered, however, by the persistence
of excess capital in some areas, notably the telecommunications sector, and reductions in business spending on many types of new structures may continue
this year.
Federal Reserve policymakers believe that consumer prices will increase less this year than in 2002,
especially if energy prices partly reverse last year's
sharp rise. In addition, resource utilization likely will
remain sufficiently slack to exert further downward
pressure on underlying inflation. The central tendency of FOMC members' projections for increases
in the chain-type price index for personal consumption expenditures (PCE) is 1 lA percent to 1xh percent
this year, lower than the actual increase of about
2 percent in 2002.
97
ECONOMIC AND FINANCIAL DEVELOPMENTS
IN 2002 AND EARLY 2003
In 2002, the United States economy extended the
upturn in activity that began in late 2001. Real GDP
increased 23A percent over the four quarters of last
year, according to the advance estimate from the
Commerce Department. However, the pace of activity was uneven over the course of the year, as concerns about emerging economic and political developments at times weighed heavily on an economy
already adjusting to a succession of shocks from
previous years.
Economic conditions improved through the first
part of the year. Household spending on both personal consumption items and housing remained solid,
businesses curtailed their inventory liquidation and
began to increase their outlays for some types of
capital equipment, and private employment started to
edge higher. But the forward momentum diminished
noticeably later in the year when concerns about
corporate governance put a damper on financial markets and geopolitical developments boosted oil prices
and added to the uncertainty already faced by businesses about the economic outlook. In the summer,
equity prices fell, risk spreads widened, and liquidity
eroded in corporate debt markets. Businesses' caution was reflected in their reluctance to substantially
boost investment, restock inventories, or add to payrolls. Responding to these developments, as well as
some weakening in demand from abroad, manufacturers trimmed production during the fall. Employment at private businesses declined again, and the
unemployment rate rose to 6 percent in December.
Change in real GDP
Percent, annual rate
4
-^j
I L
I
1996
I
I
1998
I
I
2000
I
0
I1
2002
NOTE. 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.
98
Federal Reserve Bulletin • March 2003
Change in PCE chain-type price index
Change in real income and consumption
Percent, annual rate
•
|
Total
Excluding food and energy
Percent, annual rate
Q Disposable personal income
| Personal consumption expenditures
i
1996
1998
2000
2002
1996
i
i
ilk:
i
1998
10
2000
2002
NOTE. The data are for personal consumption expenditures (PCE).
However, despite the modest pace of last year's overall recovery, output per hour in the nonfarm business
sector grew 33A percent over the year—an extraordinary increase even by the standards of the past half
decade or so.
Signals on the trajectory of the economy as we
enter 2003 remain mixed. Some of the factors that
had noticeably restrained the growth of real GDP
in the fourth quarter of last year—most especially a
sharp decline in motor vehicle production—are not
on track to be repeated. Moreover, employment leveled off on average in December and January, and
readings on industrial production have had a somewhat firmer tone of late. Nevertheless, the few data in
hand suggest that the economy has not yet broken out
of the pattern of subpar performance experienced
over the past year.
Consumer price inflation moved up a bit last year,
reflecting sharply higher energy prices. Excluding
the prices of food and energy items, the price index
for personal consumption expenditures increased
l3/4 percent, about lA percentage point less than in
2001; this deceleration most likely resulted from
continued slack in labor and product markets, robust
gains in productivity, and somewhat lower expectations of future inflation.
The Household
Sector
Consumer Spending
Consumer spending grew at a moderate pace last year
and, on the whole, continued to be an important
source of support for overall demand. Personal consumption expenditures rose 2Vi percent in real terms,
near the 23/4 percent increase in 2001 and down from
the more than 4 percent average growth over the
preceding several years. Sales of new motor vehicles
fell only a little from the extremely high levels of late
2001; outlays were especially strong during the summer and late in the year, when manufacturers were
offering aggressive price and financing incentives.
Growth of spending on other durable goods was well
maintained last year as well, although the gains were
smaller than is often seen early in an economic
recovery; in contrast to the situation in many previous cycles, spending on durable goods did not decline
sharply during the recession and so had less cause to
rebound as the recovery got under way. Apart from
outlays on durable goods, spending for most categories of consumer goods and services increased at a
moderate rate last year.
That moderate rate of aggregate consumption
growth was the product of various crosscurrents. On
the positive side, real disposable personal income
rose nearly 6 percent last year, the fastest increase in
many years. Strong productivity growth partially offset the effects of stagnant employment in restricting
the growth of household income, and the phase-in of
additional tax reductions from the Economic Growth
and Tax Relief Reconciliation Act of 2001 boosted
household purchasing power appreciably. In addition,
high levels of mortgage refinancing allowed homeowners to reduce their monthly payments, pay down
more costly consumer credit, and, in many cases,
extract equity that could be used to support other
spending. On the negative side, household wealth
again moved lower last year, as continued reductions
in equity values outweighed further appreciation of
house prices. By the end of the third quarter, according to the Federal Reserve's flow-of-funds accounts,
the ratio of household net worth to disposable income
Monetary Policy Report to the Congress
Consumer sentiment
1966= 100
1982
1986
1990
1994
1998
2002
SOURCE. University of Michigan Survey Research Center.
had reversed nearly all of its run-up since the mid1990s.
Consumer confidence, which had declined during
most of 2001 and especially after the September 11
attacks, picked up in the first half of last year, accordWealth and saving
Ratio
Wealth-to-income ratio
—
99
ing to both the Michigan Survey Research Center
(SRC) and Conference Board surveys. However, confidence retreated over the summer along with the
drop in equity prices, and by early this year, consumer confidence again stood close to the levels
of late 2001. These levels of consumer confidence,
though at the bottom of readings of the past several
years, are nevertheless above levels normally associated with recession.
The personal saving rate, which has trended
notably lower since the early 1980s, moved above
4 percent by late last year after having averaged
2lA percent in 2001. The saving rate has been buffeted during the past two years by surges in income
induced by tax cuts and by spikes in spending associated with variations in motor vehicle incentives. But,
on balance, the extent of the increase in the saving
rate has been roughly consistent with a gradual
response of consumption to the reduction in the ratio
of household wealth to disposable income.
Residential Investment
Real expenditures on residential investment increased
6 percent in 2002—the largest gain in several years.
Demand for housing was influenced by the same
factors affecting household spending more generally,
but it was especially supported by low interest rates
on mortgages. Rates on thirty-year fixed-rate mortgages, which stood at around 7 percent in the first
months of the year, fell to around 6 percent by the
autumn and dipped below that level early this year—
the lowest in thirty-five years. Not surprisingly, atti-
4
Mortgage rates
I III
I I I II I I I II II
Percent
Percent
Personal saving rate
Fixed rate
0
1982
1986
1990
1994
1998
2002
NOTE. The data are quarterly. The wealth-to-income ratio is the ratio of
household net worth to disposable personal income and extends through
2002:Q3; the personal saving rate extends through 2002:Q4.
NOTE. The data, which are monthly and extend through January 2003, are
contract rates on thirty-year mortgages.
SOURCE. Federal Home Loan Mortgage Corporation.
100
Federal Reserve Bulletin • March 2003
Private housing starts
Millions of units, annual rate
I
1990
I i
1992
I I
I I
1994
1996
I I I I I I I
1998
2000
2002
NOTE. The data are quarterly.
tudes toward homebuying, as measured by the Michigan SRC, remained quite favorable.
Starts of new single-family homes were at
1.36 million units last year, 7 percent above the
already solid pace for 2001. Sales of both new and
existing homes were brisk as well. Home prices
continued to rise but at a slower rate than in 2001, at
least according to some measures. The repeat-sales
price index for existing homes rose 5!/2 percent over
the four quarters ended in 2002:Q3, a slowing from
the 83/4 percent increase over the comparable yearearlier period. The constant-quality price index for
new homes rose 4V2 percent last year, but this
increase was close to the average pace over the past
few years. At the same time, measures of house
prices that do not control for the mix of homes sold
rose considerably more last year than in 2001, a
difference indicating that a larger share of transactions were in relatively expensive homes.
In the multifamily sector, starts averaged a solid
345,000 units last year, an amount in line with that
of the preceding several years. However, the pace
of building slowed a little in the fall. Apartment
vacancy rates moved notably higher last year and rent
and property values declined; these changes suggest
that the strong demand for single-family homes may
be eroding demand for apartment space.
together increased home mortgage debt 11 Vi percent.
Refinancing activity was especially elevated in the
fourth quarter, when fixed mortgage interest rates
dipped to around 6 percent. Torrid refinancing activity helps explain last year's slowdown of consumer
credit, which is household borrowing not secured
by real estate: A significant number of households
reportedly extracted some of the equity from their
homes at the time of refinancing and used the proceeds to repay other debt as well as to finance home
improvements and other expenditures. According to
banks that participated in the Federal Reserve's
Senior Loan Officer Opinion Survey on Bank Lending Practices in October, the frequency and size
of cash-out refinancings were substantially greater
than had been reported in the January 2002 survey. Although automakers' financing incentives and
attractive cash rebates stimulated a substantial
amount of consumer borrowing, the growth rate of
consumer credit in 2002, at 4lA percent, was more
than 2!/2 percentage points below the pace in 2001.
Even though households took on a large amount of
mortgage debt last year, extraordinarily low mortgage
rates kept the servicing requirement for that debt
(measured as a share of homeowners' disposable
income) well below its previous peak levels. Moreover, reflecting large gains in residential real estate
values, equity in homes has continued to increase
despite sizable debt-financed extractions. The combined influence of low interest rates and the sizable
gain in disposable personal income also kept the total
servicing costs faced by households—which in addition to home mortgage payments include costs of
other financial obligations such as rental payments
of tenants, consumer installment credit, and auto
Delinquency rates on selected types of household loans
Percent
Household Finance
Households continued to borrow at a rapid pace
last year; the 9lA percent increase in their debt outstanding was the largest since 1989. Low mortgage
interest rates helped spur both very strong home
purchases and refinancing of existing loans, which
1992
1994
1996
1998
2000
2002
NOTE. The data are quarterly and extend through 2002:Q3.
SOURCE. For mortgages, the Mortgage Bankers Association; for auto loans,
the Big Three automakers; for credit cards, Moody's Investors Service.
Monetary Policy Report to the Congress
leases—relative to their incomes below previous
peaks. Against this backdrop, broad measures of
household credit quality deteriorated very little last
year, and signs of financial stress were confined
mainly to the subprime segment of the market. Delinquency rates on home mortgages inched up, while
those on auto loans at finance companies were flat.
Delinquency rates on credit cards bundled into securitized asset pools remained close to those of recent
experience.
101
Change in real business fixed investment
Percent, annual rate
•
|
Structures
Equipment and software
20
10
1 fl rl J fh
i
10
20
The Business Sector
J_J
Overall business fixed investment moved lower last
year, although the decline was not nearly so precipitous as in 2001. Outlays for equipment and software
edged up, but spending on structures fell sharply.
Financing conditions worsened over the summer,
with equity prices declining, initial public offerings
(IPOs) drying up, credit market spreads widening,
and banks tightening up somewhat on credit standards in the wake of increased reports of corporate
malfeasance. In addition, geopolitical concerns
increased firms' already heightened uncertainty about
the economic outlook. These factors contributed to
an apparent deterioration in business confidence, and
businesses still have not felt any great urgency to
boost investment appreciably. For similar reasons,
although firms slowed their rate of inventory liquidation last year, they have yet to undertake a sustained
restocking.
Fixed Investment
After dropping sharply in 2001, real spending on
equipment and software rose 3 percent last year.
Spending on high-technology equipment, one of the
hardest-hit sectors in 2001, showed signs of uneven
improvement. The clearest rebound was in computing equipment, for which spending rose 25 percent in
real terms; this gain fell short of the increases posted
in the late 1990s but far more than reversed the
previous year's decline. Software investment also
turned positive, rising 6 percent after declining about
3 percent in 2001. By contrast, real outlays for communications equipment were reported to be up only
slightly in 2002 after plummeting 30 percent in 2001.
Business spending on aircraft fell sharply last year.
Airlines were hit especially hard by the economic
downturn and by the reduction in air travel after the
September 11 attacks; although expenditures for new
aircraft held up through the end of 2001 because of
—
Q High-tech equipment and software
• Other equipment
40
30
20
r
10
FK i
1996
1997
1998
1999
2000
2001
10
2002
NOTE. High-tech equipment consists of computers and peripheral equipment and communications equipment.
the very long lags involved in producing planes,
shipments of planes slowed greatly thereafter. Meanwhile, business outlays on motor vehicles edged up
last year. Demand for autos and light trucks by rental
companies weakened sharply along with the drop in
air traffic that occurred after September 11 but recovered gradually over the course of last year. Purchases
of medium and heavy trucks fell off overall, despite
the fact that demand for heavy (class 8) trucks was
boosted by spending in advance of the implementation of more-stringent environmental regulations.
Investment in equipment other than high-tech
and transportation goods moved modestly higher
through most of last year, as real outlays for industrial machinery and a wide range of other equipment gradually strengthened through the summer.
Although spending edged lower again in the fourth
quarter, investment in non-high-tech, nontransportation equipment increased 3lA percent for the year as a
whole.
Spending on equipment and software was supported last year by low interest rates, which helped
hold down the cost of capital, as did the tax provision
enacted in March 2002 that allows partial expensing
102
Federal Reserve Bulletin • March 2003
of new equipment and software purchased before
September 11, 2004. Moreover, modest increases
in final sales together with replacement demand no
doubt spurred many firms to make new capital outlays. Nevertheless, some sectors, most notably telecommunications, probably still had excess holdings
of some forms of capital. Concerns about corporate
malfeasance, which had become more intense over
the spring and summer, weighed heavily on financial markets and raised the cost of capital through
reduced share prices and higher yields on the bonds
of lower-rated firms. In addition, uncertainty about
the geopolitical situation, including the possible consequences for oil prices of an outbreak of war with
Iraq, likely made many firms reluctant to commit
themselves to new expenditures. In all, businesses
have been, and appear to remain, quite cautious about
undertaking new capital spending projects.
Real business spending for nonresidential structures declined sharply for a second year in 2002.
Outlays for the construction of office buildings and
industrial buildings were especially weak. Vacancy
rates for such buildings increased throughout the
year, and property values and rents moved lower.
Construction of new hotels and motels also fell considerably, reflecting the weakness in the travel industry. By contrast, spending on other commercial
buildings, such as those for retail, wholesale, and
warehouse space, moved only a little lower last year.
A number of factors likely account for investment
in structures having been much weaker than investment in equipment. Structures depreciate very slowly,
so businesses can defer new outlays without incurring much additional deterioration of their capital
stock. And unlike investment in equipment, spending
on structures is not eligible for partial expensing.
According to some analysts, concerns about additional acts of terrorism (and, until late in the year, the
lack of insurance to cover such events) may also have
had a damping effect on some types of construction,
particularly large "trophy" projects.
Inventory Investment
The sharp inventory runoffs that characterized the
economic downturn, together with gradually rising
final sales, implied that, by early last year, stocks
were in much better alignment with sales than had
been the case during 2001. Accordingly, businesses
lessened the pace of inventory liquidation early in the
year and by summer had turned to some modest
restocking. However, firms appeared to have exerted
tight control over production and inventories; with
Change in real business inventories
Billions of chained 1996 dollars, annual rate
—
75
—
50
—
25
^ H
1
J
1996
1998
2000
°
— 25
—
50
—
75
I_J
2002
prospects for the strength of the recovery having
diminished in the second half of the year, businesses
quickly cut production, and inventories only edged
up in the fourth quarter, according to incomplete and
preliminary data. In all, total inventories were about
unchanged last year compared with a liquidation of
more than $60 billion in 2001, and this turnaround
contributed 1 percentage point to the growth of real
GDP over the year. At year-end, inventory-to-sales
ratios in most sectors stood near the low end of their
recent ranges.
In the motor vehicle industry, last year's very
strong sales were matched by high levels of production, and the stock of inventories, especially for light
trucks, appeared at times to be higher than the industry's desired levels. Nevertheless, the surge in sales
late in the year helped to pare stocks, and dealers
ended the year with inventories of light vehicles at a
comfortable level.
Corporate Profits and Business Finance
The profitability of the U.S. nonfinancial corporate
sector improved from its lows of 2001 but relative
to sector output remained at the low end of the range
experienced over the past thirty years. Economic
profits of nonfinancial corporations—that is, book
profits adjusted for inventory valuations and capital
consumption allowances—rebounded in late 2001
and were little changed through the third quarter
of last year. The sluggish expansion of aggregate
demand and the lack of pricing power associated with
intense competitive pressures were the main factors
that held down profits in 2002. Also playing a role,
especially in the manufacturing sector, were costs
arising from underfunded defined-benefit pension
Monetary Policy Report to the Congress
103
Financing gap and net equity retirement
at nonfarm nonfinancial corporations
Before-tax profits of nonfinancial corporations
as a percent of sector GDP
Billions of dollars
12
10
1
M l
I I I I
1977
1982
1987
I 1 1 I II
1992
1997
I
1990
2002
NOTE. The data are quarterly and extend through 2002:Q3. Profits are from
domestic operations of nonfinancial corporations, with inventory valuation
and capital consumption adjustments.
plans. Reflecting the pause in economic growth, earnings reports for the fourth quarter indicate that profits
may have dropped some late in the year.
A dearth of expenditures on fixed capital and moribund merger and acquisition activity were the chief
culprits behind the sluggish pace of nonfinancial corporate borrowing last year. Also important was the
propensity of some firms to draw on liquid assets—
which began the year at high levels—rather than to
seek external financing. Consequently, debt of the
nonfinancial corporate sector expanded only 1V2 percent, a rate slower than the already subdued pace in
2001. The composition of business borrowing was
dominated last year, as it was in 2001, by longer-term
sources of funds. Robust demand for higher-quality
Major components of net business financing
Billions of dollars
O Commercial paper
• Bonds
• Bank loans
600
Sum of major
components
400
200
200
2000
2001
2002
NOTE. Seasonally adjusted annual rate for nonfarm nonfinancial corporate
business. The data for the sum of major components are quarterly. The data
for 2002:Q4 are estimated.
1992
1994
1996
1998
2000
2002
NOTE. The data are annual; 2002 is based on partially estimated data. The
financing gap is the difference between capital expenditures and internally
generated funds. Net equity retirement is the difference between equity
retired through share repurchases, domestic cash-financed mergers, or foreign
takeovers of U.S. firms and equity issued in public or private markets,
including funds invested by venture capital partnerships.
corporate debt on the part of investors, combined
with the desire of firms to lock in low interest rates,
prompted investment-grade corporations to issue a
large volume of bonds during the first half of 2002.
With funding needs limited, investment-grade issuers
continued to use the proceeds to strengthen their
balance sheets by refinancing higher-coupon bonds
and by paying down short-term obligations such as
bank loans and commercial paper. Buoyed by declining yields, gross issuance of below-investment-grade
bonds for the most part also held up well during the
first half, although this segment of the market was
hit hard after revelations of corporate malfeasance, as
investors shunned some of the riskiest issues; issuance was especially weak in the beleaguered telecom
and energy sectors, which continue to be saddled
with overcapacity and excessive leverage. Despite
falling share prices, seasoned equity offerings were
also well maintained over the first half of the year,
in part because of the decision of some firms—
especially in the telecom and energy sectors—to
reduce leverage. IPOs, by contrast, were sparse. The
evaporation of cash-financed mergers and acquisitions and desire by firms to conserve cash kept equity
retirements at their slowest pace since 1994.
Over the summer, investors grew more reluctant
to buy corporate bonds because of concerns about
the reliability of financial statements, deteriorating
credit quality, and historically low recovery rates on
defaulted speculative-grade debt. Macroeconomic
data suggesting that the economic recovery was
losing momentum and widespread company warn-
104
Federal Reserve Bulletin • March 2003
Spreads of corporate bond yields over
the ten-year Treasury yield
Percentage points
10
High yield
BBB
AA
2002
2001
2003
NOTE. The data are daily and extend through February 5, 2003. The
spreads compare the yields on the Merrill Lynch AA, BBB, and 175 indexes
with the yield on the ten-year off-the-run Treasury note.
ings about near-term profits pushed yields on
speculative-grade debt sharply higher. Risk spreads
on investment-grade bonds also widened appreciably
in the third quarter, as yields in that segment of the
corporate bond market declined less than those on
Treasury securities of comparable maturity. Investors' aversion to risk was also heightened by mounting tensions with Iraq; by early autumn, risk spreads
on junk-rated bonds reached their highest levels in
more than a decade. Gross bond issuance both by
investment-grade and below-investment-grade firms
fell off markedly, and the amount of redemptions was
large. By the third quarter, net issuance of bonds by
nonfinancial corporations had turned negative for the
first time since the early 1950s. Trading conditions
Spread of low-tier CP rates over high-tier CP rates
Basis points
in the corporate bond market deteriorated during this
period, as bid-asked spreads reportedly widened in
all sectors. With share prices dropping and stock
market volatility increasing, issuance of seasoned
equity nearly stalled in the summer and early autumn.
IPOs were virtually nonexistent amid widely publicized investigations into the IPO allocation process at
large investment banks.
A smattering of more upbeat news about the economy in mid-autumn and the absence of major revelations of corporate wrongdoing sparked a rally in
equity prices and rekindled investors' appetite for
corporate debt. Over the remainder of the year
and during early 2003, risk spreads narrowed considerably on investment-grade corporate bonds—
especially for the lowest rated of these issues—and
even more on speculative-grade bonds, although they
remained high by historical standards. In the meantime, liquidity in the corporate bond market generally
improved. A brightening of investor sentiment caused
a rebound in gross bond issuance, with firms continuing to use bond proceeds to refinance long-term debt
and to pay down short-term debt. Rising stock prices
and reduced volatility also allowed seasoned equity
issuance to regain some ground in the fourth quarter.
The improved tone in corporate debt markets carried
over into early 2003. Gross corporate bond issuance
continued at a moderate pace, and despite the drop in
stock prices in the latter half of January, seasoned
equity issuance has been reasonably well maintained.
IPO activity and venture capital financing, however,
remained depressed.
The heavy pace of bond issuance, sagging capital
expenditures, and diminished merger and acquisition
activity allowed firms to pay down large amounts of
Net interest payments of nonfinancial corporations
relative to cash flow
IIII1 III1 II
1997
1998
1999
2000
2001
2002
2003
NOTE. The data are daily and extend through February 5, 2003. The series
shown is the difference between the rate on A2/P2 nonfinancial commercial
paper and the AA rate.
1 I1 I1 IIII
1978
1981
1984
I 11 I I I I I I I I I I
1987
1990
1993
1996
1999
NOTE. The data are quarterly and extend through 2002:Q3.
2002
Monetary Policy Report to the Congress
both business loans at banks and commercial paper
last year. The runoff in business loans that started in
early 2001 intensified in the first half of 2002. At the
same time, commercial paper issuers that were perceived as having questionable accounting practices
encountered significant investor resistance, and most
of these issuers discontinued their programs. Bond
rating agencies stepped up the pressure on firms to
substitute longer-term debt for shorter-term debt and
thereby reduce rollover risk. In addition, banks raised
the total cost of issuing commercial paper by tightening underwriting standards and boosting fees and
spreads on the associated backup lines of credit—
especially for lower-rated issuers. In doing so,
respondents to the April Senior Loan Officer Opinion
Survey on Bank Lending Practices cited heightened
concerns about the deterioration of issuers' credit
quality and a higher probability of lines being drawn.
Many commercial paper issuers either turned to
longer-term financing or dropped out of the credit
markets altogether, and the volume of nonfinancial
commercial paper outstanding shrank about onefourth during the first six months of the year after
having dropped one-third in 2001.
The volatility that gripped equity and bond markets
around midyear, however, did not spill over to the
commercial paper market. Quality spreads in the
commercial paper market were largely unaffected, in
part because many of the riskiest issuers had already
exited the market, while others had strengthened their
cash positions and significantly reduced rollover risk
earlier in the year. Indeed, because of difficulties in
the corporate bond market, some nonfinancial firms
Default rate on outstanding bonds
Percent
r3J
—
A
/
I
1
1
1
1
1992
1
1
1994
1
1
1996
1
1
1998
1
1
2000
1
—
3.0
—
2.5
—
2.0
—
1.5
—
1.0
—
.5
1 1
2002
NOTE. The default rate is monthly and extends through December 2002.
The rate for a given month is the face value of bonds that defaulted in the
twelve months ending in that month divided by the face value of all bonds
outstanding at the end of the calendar quarter immediately preceding the
twelve-month period.
105
Ratings changes of nonfinancial corporations
Percent
Upgrades
1995
1996
1997
1998
1999
2000
2001
2002
NOTE. Data are at an annual rate. Debt upgrades (downgrades) are
expressed as a percentage of par value of all bonds outstanding.
SOURCE. Moody's Investors Service.
turned temporarily to the commercial paper market to
obtain financing, and the volume of outstanding paper
rose in July after a lengthy period of declines. Over
the remainder of the year, business loans at banks and
commercial paper outstanding contracted rapidly, as
inventory investment remained negligible, and firms
continued to take advantage of relatively low longerterm interest rates by issuing bonds.
A decline in market interest rates and improved
profitability helped reduce the ratio of net interest
payments to cash flow in the nonfinancial corporate
sector last year. Even so, many firms struggled to
service their debt, and corporate credit quality deteriorated markedly. The trailing average default rate
on corporate bonds, looking back over the preceding
twelve months, was already elevated and climbing
when WorldCom's $26 billion default in July propelled the average rate to a record level. The amount
of nonfinancial corporate debt downgraded by
Moody's Investors Service last year was more than
fourteen times the amount upgraded. At less than
25 percent, the average recovery rate in 2002 on all
defaulted bonds—as measured by the price of bonds
at default—was at the low end of recovery rates over
the past decade. Delinquency rates on business loans
at commercial banks rose noticeably before stabilizing in the second half of the year, and charge-off rates
remained quite high throughout 2002.
After expanding rapidly in 2001, commercial mortgage debt grew much more slowly during the first
quarter of last year, as business spending on nonresidential structures fell. Despite the continued contraction in outlays on nonresidential structures, commercial mortgage debt accelerated over the remainder of
the year, apparently because of refinancing to extract
106
Federal Reserve Bulletin • March 2003
a significant portion of equity from existing properties. The issuance of commercial-mortgage-backed
securities (CMBS), a key source of commercial real
estate financing in recent years, was well maintained
in 2002. Even as office vacancy rates rose, the quality
of commercial real estate credit remained stable last
year. Commercial banks firmed standards on commercial real estate loans in 2002, on net, and delinquency rates on commercial real estate loans at banks
stayed at historically low levels. Delinquency rates
on CMBS leveled off after increasing appreciably in
late 2001, and forward-looking indicators also do not
suggest elevated concerns about prospective defaults:
Yield spreads on CMBS over swap rates remained in
the fairly narrow range that has prevailed over the
past several years.
The Government
Sector
Federal Government
Despite modest economic growth, the federal budget
position deteriorated sharply in 2002. After running a
unified budget surplus of $127 billion in fiscal 2001,
the federal government posted a deficit of $158 billion in fiscal 2002—and that deficit would have been
$23 billion larger if not for the shifting of some
corporate tax payments from fiscal 2001 to fiscal
2002. After adjustment for that tax shifting, receipts
declined 9 percent in fiscal 2002: A $50 billion drop
in corporate payments stemmed largely from tax
provisions enacted in the 2002 stimulus bill (especially the partial-expensing provision on investment),
and a decline in individual tax payments of $136 billion was largely attributable to a drop in capital gains
Federal receipts and expenditures
Change in real government expenditures
on consumption and investment
Percent
•
•
Federal
State and local
J
1
I
1 J
1
I
1
1996
1
i
LT
i
I
1998
i
i
t 1
2000
2002
realizations and to lower tax rates that were enacted
in the 2001 tax bill.
Meanwhile, federal outlays increased nearly 8 percent in fiscal 2002 and 11 percent excluding a decline
in net interest expenses. Spending increased notably
in many categories, including defense, homeland
security, Medicaid, and income security (which
includes the temporary extended unemployment compensation program). Federal government consumption and investment—the part of spending that is
counted in GDP—rose more than 7 percent in real
terms in 2002. (Government spending on items such
as interest payments and transfers are not counted in
GDP because they do not constitute a direct purchase
of final production.)
The turn to deficit in the unified budget means that
the federal government, which had been contributing to national saving since 1997, began to reduce
national saving last year. The reversal more than
National saving
Percent of nominal G D P
Percent of nominal G D P
—
24
—
22
—
20
\T\
—
18
\
—
16
—
14
Expenditures
—
22
Receipts
\
— 18
—
1984
1987
1990
1993
1996
1999
20
16
2002
NOTE. The budget data are from the unified budget and are for fiscal years
(October through September); GDP is for Q3 to Q3.
—
—
—
\
A
—
—
\
» /
/
Excluding federal saving
\
Y*
/\
/ A
'
i
v/
\A/
Total saving
^
1 1 1 1 1 1 1 t 1 1 1 I 1 1 1 1 1 1 1 1 1 1 1
1984 1986 1988 1990 1992 1994 1996 1998 2000 2002
NOTE. The data are quarterly and extend through 2002:Q3.
Monetary Policy Report to the Congress
Federal government debt held by the public
107
State and local government current surplus or deficit
Percent of nominal G D P
Percent of G D P
WRSm I
I
NOTE. Through 2001, the data for debt are year-end figures and the
corresponding value for GDP is for Q4 at an annual rate; the final observation
is for 2002:Q3. Excludes securities held as investments of federal government accounts.
NOTE. The data, which are quarterly, are on a national income and product
account basis and extend through 2002:Q3. The current surplus or deficit
excludes social insurance funds.
offset an increase in saving by households and businesses, and gross national saving declined to 15 percent of GDP by the third quarter of last year—the
lowest national saving rate since the 1940s.
After it reentered the credit markets as a significant
borrower of net new funds in the second half of 2001,
the Treasury continued to tap markets in volume last
year. Federal net borrowing was especially brisk over
the first half of the year. With federal debt rapidly
approaching its statutory borrowing limit, the Secretary of the Treasury declared a debt ceiling emergency on May 16 and identified about $80 billion
worth of accounting measures that could be used to
create financing room within the existing $5.95 trillion limit. The Secretary's announcement and subsequent employment of one of these devices—in which
Treasury securities held in government trust funds
were temporarily replaced by Treasury IOUs not
subject to the debt ceiling—had little effect on Treasury yields, as market participants were apparently
confident that the ceiling would be raised in time to
avoid default. And indeed, the Congress approved
legislation raising the statutory borrowing limit to
$6.4 trillion on June 27. With its credit needs remaining substantial, the Treasury continued to borrow
heavily over the second half of 2002. The increase
in the Treasury's net borrowing last year caused the
ratio of publicly held debt to nominal GDP to rise for
the first time since 1993.
states), most state governments are reported to be
facing significant shortfalls. Although a variety of
strategies may be available for the purpose of technically complying with balanced-budget requirements,
including tapping nearly $20 billion in combined
rainy-day and general fund balances and turning to
the capital markets, many states will be forced to
boost revenues and hold the line on spending.
Real expenditures for consumption and gross
investment by state and local governments rose less
than 2 percent in 2002—the smallest increase in ten
years. The slowdown in spending growth was widespread across expenditure categories and included
notably smaller increases in outlays for construction.
Employment in the state and local sector continued to
rise in 2002, but at a slower rate than in recent years.
Debt of the state and local government sector
expanded last year at the fastest pace since 1987.
Governments used the proceeds to finance capital
spending and to refund existing debt in advance. Net
issuance of short-term municipal bonds was also well
maintained, as California and some other states facing fiscal difficulties turned to shorter-term borrowing while fashioning more permanent solutions to
their budget problems. Worsening budget situations
contributed to some deterioration in municipal credit
quality last year. Credit-rating downgrades outpaced
upgrades by a significant margin, and the yield spread
of BBB-rated over insured AAA-rated municipal
bonds rose significantly over the second half of 2002.
State and Local Governments
The External Sector
State and local governments have continued to
struggle in response to sluggish growth of receipts. In
the current fiscal year (which ends June 30 for most
The U.S. current account deficit widened again in
2002 after a brief respite during the cyclical slow-
108
Federal Reserve Bulletin • March 2003
U.S. trade and current account balances
Change in real imports and exports of goods and services
Billions of dollars, annual rate
Percent, annual rate
•
•
Imports
Exports
20
15
10
I I
1 I I I I I I I I I I I I I I I I, I I I I I 1 I. I I I 1 I I I I I
1996
1997
1998
1999
2000
2001
2002
J
1]
L
1996
1998
2000
Jk.
10
15
2002
NOTE. The data are quarterly and extend through 2002:Q3.
and spending on travel recovered from the postSeptember 11 slump. As is often the case, the ampliJanuary 2000 = 100
tude of the recent cycle in trade has been greater than
that of real GDP. In 2001, stagnant real GDP in the
United States and abroad was coupled with declines
—
115
of 11^2 percent in real exports and 8 percent in real
imports. Last year, moderate growth of both foreign
and domestic real GDP was exceeded by gains of
5 percent and 9 percent, respectively, in our real
exports and imports. The faster growth of imports
relative to exports over the past two years was consistent with the historical pattern in which the responsiveness of imports to income is greater in the United
States than in the rest of the world. Although the
Ii I i i I i i I i i I i i I
I i ( I i i I i i I i i I i i I idollar
i 1 i idepreciated
Ii I
on balance last year, the lagged
2000
2001
2002
2003
effects of its prior appreciation over the two previous
NOTE. The data are monthly. The last observation is the average of trading
years contributed to the faster growth in imports
days through February 5, 2003. Exchange rates are adjusted for inflation with
the consumer price index and are in foreign currency units per dollar. The
relative to exports in 2002.
broad index is a weighted average of the foreign exchange values of the U.S.
dollar against the currencies of a large group of major U.S. trading partners.
Real exports of goods posted a strong gain in the
The index weights, which change over time, are derived from U.S. export
second
quarter of 2002 after six consecutive quarters
shares and from U.S. and foreign import shares.
of decline. However, as output growth slowed abroad,
exports decelerated in the third quarter and then fell
down in 2001. Two-thirds of the expansion of the
in the fourth quarter. On balance, exports of goods
deficit last year was attributable to a decline in the
rose about 2 percent over the course of the year,
balance on goods and services, although net investreversing only a small portion of the previous year's
ment income also fell sharply as receipts from abroad
decline. Not surprisingly, the increase in goods
declined more than payments to foreign investors in
exports in 2002 was concentrated in the destinations
the United States. The broad exchange value of the
where GDP growth was strongest—Canada, Mexico,
dollar peaked around February 2002 after appreciatand several developing Asian economies. A gain of
ing about 13 percent in real terms from January 2000;
12 percent in real exports of services in 2002
in early February 2003 it was down about 5 percent
more than reversed the previous year's decline and
from the February 2002 level.
reflected both a pickup in tourism and an increase in
other private services. Export prices turned up in the
second quarter after a year of decline and continued
Trade and the Current Account
to rise at a moderate pace in the second half.
U.S. dollar real exchange rate, broad index
Both exports and imports rebounded in 2002 as the
cyclical downturn of the previous year was reversed
The very rapid growth of real imports of goods in
the first half of last year was a reaction to the revival
Monetary Policy Report to the Congress
of U.S. activity, and they gained about 9 percent over
the year. The particularly large gains in imports of
consumer goods and automotive products reflected
the buoyancy of U.S. consumption expenditures.
Imports of most major categories of capital goods
also increased on balance over the year. However,
as with exports, import growth was considerably
stronger in the first half of the year than in the
second. This pattern likely reflected the deceleration
in U.S. GDP, along with the effects of some depreciation of the dollar. In addition, there may have been
some shifting of import demand from later in the year
to the earlier months as it began to appear more likely
that labor contract negotiations at West Coast ports
would not go smoothly.1 Imports of services more
than reversed their 2001 decline over the course
of the year, and gains were recorded for both travel
and other private services. Prices of non-oil imports
turned up in the second quarter after declining over
the preceding four quarters, as a result of the weaker
exchange rate and a turnaround in prices of internationally traded commodities.
The spot price of West Texas intermediate crude
oil climbed above $35 per barrel in early 2003, its
highest level since the beginning of 2000. Oil prices
had fallen to around $20 per barrel during 2001 amid
general economic weakness, but they began rising
109
in February and March of last year in response to
both improving global economic activity as well as
a production-limiting agreement between OPEC and
several major non-OPEC producers. Even though
production in a number of OPEC and non-OPEC
countries in fact exceeded the agreed limits last year,
heightened tensions in the Middle East along with
severe political turmoil in Venezuela continued to put
upward pressure on prices. The pressure intensified
late in the year as a strike in Venezuela that began on
December 2 virtually shut down that country's oil
industry, and Venezuelan oil production was still well
below pre-strike levels in early 2003. Concern over a
possible war with Iraq, along with a very low level of
crude oil inventories in the United States, has helped
to keep spot prices high. Also in response to the
heightened tensions, the price of gold shot up about
30 percent over the past year.
The Financial Account
The increase in the current account deficit in 2002
was about equal on balance to the stepped-up foreign
official purchases of U.S. assets, as changes in the
U.S. international securities transactions
Billions of dollars
1. The dispute between the Pacific Maritime Association and the
International Longshore and Warehouse Union eventually led to an
eleven-day port closure in late September and early October that
ended when President Bush invoked the Taft-Hartley Act. Although
the monthly pattern of trade was influenced by the closure, the overall
level of imports for the year does not appear to have been much
affected.
Private foreign purchases of U.S. securities
—
•
•
Bonds, net
Equities, net
Prices of oil and of nonfuel commodities
.
Dollars per barrel
J a n u a r y 2001 = 100
Private U.S. purchases of foreign securities
Nonfuel
'*
I
NOTE. The data are monthly; the last observation for oil is the average of
trading days through February 5, 2003; the last observation for nonfuel
commodities is December 2002. The oil price is the spot price of West Texas
intermediate crude oil. The price of nonfuel commodities is a weighted
average of thirty-nine primary-commodity prices from the International
Monetary Fund.
SOURCE. Department of Commerce and the Federal Reserve Board.
110
Federal Reserve Bulletin • March 2003
components of private capital flows were offsetting.
Private foreign purchases of U.S. securities were
about $360 billion at an annual rate through November, a volume similar to last year's total. However,
there was some shift in the composition of flows
away from equities and toward Treasury securities.
This shift may have reflected the damping of equity
demand caused by slower economic growth and continued concern about corporate governance and
accounting. Over the same period, purchases by private U.S. investors of foreign securities declined
nearly $100 billion. Accordingly, the net balance of
private securities trading recorded a sharp increase in
net inflows.
In contrast, net foreign direct investment inflows
fell about $70 billion between 2001 and 2002. Foreign investment in the United States and investment abroad by U.S. residents both declined, but the
decline in flows into the United States was considerably larger, as merger activity slowed and corporate
profits showed little vigor. U.S. direct investment
abroad held up fairly well in 2002, a result largely
reflecting retained earnings.
Net change in payroll employment
Thousands of jobs, monthly average
Private nonfarm
300
200
Jan.
100
+
LA
II
0
100
.
J
1991
I
200
L
1993
J
1995
1997
I
I
1999
I
2001
L
2003
200
Jan.
1
III.
• II
1
200
The Labor Market
2000
2001
2002
2003
Employment and Unemployment
Labor markets appeared to stabilize last spring after
the sharp deterioration of 2001 and early 2002.
Employment on private payrolls, which had declined
an average of 160,000 per month in 2001, leveled
off in the spring and moved slightly higher over the
summer. But labor demand weakened again as the
economy softened later in the summer, and private
employment declined about 80,000 per month on
average in the last four months of the year. Private
payrolls rebounded nearly 150,000 in January, though
the magnitude of both the especially sharp decline
in December and the rebound in January likely was
exaggerated by difficulties in adjusting for the normal
seasonal movements in employment during these
months.
The manufacturing sector continued to be the
weakest segment of the labor market; even during
the spring and early summer, when the overall labor
market seemed to be improving, factory payrolls
contracted on average. Declines in factory employment were more pronounced—at about 50,000 per
month—toward the end of the year. Employment at
help-supply firms and in wholesale trade—two sectors in which activity closely tracks that of manufacturing proper—rose over the summer but also turned
down again later in the year. And employment in
retail trade, though quite erratic, leveled off over the
summer before declining further in the fall. However,
Measures of labor utilization
Percent
(V .
/ \
/ \
—
15
—
12
Augmented
civilian unemployment rate
^
9
—
6
—
3
Civilian unemployment r a t e ^ w
1 1 1 II 11 1 1 1 II 1 1 1 1 11 1 II 1 1 1 1 II 1 1 1 1 II 1
1973
1983
1993
2003
NOTE. The data extend through January 2003. The civilian rate is the
number of civilian unemployed divided by the civilian labor force. The
augmented rate adds to the numerator and the denominator of the civilian rate
the number of those who are not in the labor force but want a job. The small
break in the augmented rate in January 1994 arises from the introduction of a
redesigned survey. For the civilian rate, the data are monthly; for the
augmented rate, the data are quarterly through December 1993 and monthly
thereafter.
Monetary Policy Report to the Congress
employment in services other than help supply grew
reasonably steadily throughout the year and rose
nearly 50,000 per month after March; health services
and education services contributed more than half of
those job gains. The finance and real estate sectors
also added jobs last year, probably because of the
surge in mortgage refinancings and high levels of
activity in housing markets. Last year's job losses in
the private sector were partially offset by an increase
in government employment that averaged about
20,000 per month; the increase resulted mostly from
hiring by states and municipalities, but it also
reflected hiring in the fall by the Transportation Security Administration.
Overall employment moved lower, on net, and
the unemployment rate increased a little less than
Vi percentage point over the year, to 6 percent, before
dropping back to 5.7 percent in January 2003. The
unemployment rate probably has been boosted
slightly by the federal temporary extended unemployment compensation program. By extending benefits
for an additional three months, the program allows
unemployed individuals whose regular benefits have
expired to be more selective in accepting job offers
and provides them with an incentive not to withdraw from the labor force. In addition, as would be
expected in a still-weak labor market, the labor force
participation rate moved lower last year.
Productivity and Labor Costs
Labor productivity rose impressively in 2002. Output
per hour in the nonfarm business sector increased
an estimated 33A percent from the fourth quarter
of 2001 to the fourth quarter of 2002. Labor produc-
111
tivity typically suffers in an economic downturn as
businesses reduce hours worked by proportionally
less than the decline in output; conversely, productivity typically rebounds early in an expansion as labor
is brought back toward fuller utilization. During the
most recent downturn, however, productivity held up
comparatively well, a performance that makes last
year's surge all the more impressive. Indeed, productivity rose at an average annual rate of nearly 3 percent over the past two years, faster than the average
pace of increase during the late 1990s.
Very likely, the rapid pace of last year's productivity growth was due in part to the special circumstances that developed after the September 11 attacks.
Businesses cut labor substantially in late 2001 and
early 2002 amid widespread fear of a sharp decline in
demand; when demand held up better than expected,
businesses proved able to operate satisfactorily with
their existing workforces. Moreover, the fact that this
step-up in productivity was not reversed later in the
year suggests that at least a portion of it is sustainable. The recent rapid growth in productivity may
derive in part from ongoing improvements in the use
of the vast amount of capital installed in earlier years,
and it may also stem from organizational innovations
induced by the weak profit environment.
Indicators of hourly compensation sent mixed signals last year. The rise in the employment cost index
(ECI) for hourly compensation in private nonfarm
businesses, 3lA percent, was 1 percentage point lower
than the increase in 2001. Compensation increases
likely were damped last year by the soft labor market
and expectations of lower consumer price inflation.
Measures of change in hourly compensation
Change in output per hour
Nonfarm compensation per hour
1994
NOTE. Nonfarm business sector.
1996
1998
2000
2002
NOTE. The data extend through 2002:Q4. For nonfarm compensation,
change is over four quarters; for the employment cost index (ECI), change is
over the twelve months ending in the last month of each quarter. Nonfarm
compensation is for the nonfarm business sector; the ECI is for private industry excluding farm and household workers.
112
Federal Reserve Bulletin • March 2003
The wages and salaries component and the benefits
component of the ECI both posted smaller increases
last year. The deceleration was less pronounced for
the benefits component, however, which was boosted
by further large increases in employers' health insurance costs. According to the ECI, health insurance
costs, which constitute about 6 percent of overall
compensation, rose 10 percent last year after having
risen about 9 percent in each of the preceding two
years.
An alternative measure of compensation costs is
compensation per hour in the nonfarm business sector, which is derived from information in the national
income and product accounts. According to this
measure, hourly compensation rose 4lA percent last
year—a little more than the increase in the ECI and
up from a much smaller increase in 2001. One important difference between these two measures of compensation is that the ECI omits stock options, while
nonfarm compensation per hour captures the value of
these options upon exercise. The very small increase
in the latter measure in 2001 likely reflects, in part, a
drop in option exercises in that year, and the larger
increase in 2002 may point to a firming, or at least to
a smaller rate of decline, of these exercises.
Prices
The chain-type price index for personal consumption
expenditures (PCE) rose about 2 percent last year,
compared with an increase of IV2 percent in 2001.
This step-up in consumer price inflation resulted from
a jump in energy prices. Outside of the energy sector,
consumer price inflation was pushed lower last year
by continued slack in labor and product markets
as well as by expectations of future inflation that
Change in consumer prices
•
•
Change in consumer prices excluding food and energy
O Consumer price index
• Chain-type price index for PCE
1992
1994
1996
Percent
-
1996
no
1998
2002
Alternative measures of price change
Consumer price index
Chain-type price index for PCE
1994
2000
appeared to be lower in 2002 than in most of 2001.
The increase in PCE prices excluding food and
energy, which was just l3/4 percent, was about Vi percentage point less than in 2001. The price index for
GDP was less affected by last year's rise in energy
prices than was the PCE measure; much of the energy
price increase was attributable to higher prices of
imported oil, which are not included in GDP because
they are not part of domestic production. On net,
GDP prices rose only 1 lA percent last year, a deceleration of 3A percentage point that reflected not just the
deceleration in core consumer prices but also considerably smaller increases for prices of construction.
The upturn in consumer energy prices in 2002 was
driven by a jump in crude oil prices. Gasoline prices
increased some 25 percent from December 2001 to
December 2002; prices of fuel oil increased considerably as well. By contrast, consumer prices of natural
gas posted only a modest rise after declining sharply
in 2001, and electricity prices moved lower. More
recently, the rise in crude oil prices since midDecember, together with cold weather, has increased
the demand for natural gas and has led to higher spot
2001
2002
Chain-type
Gross domestic product
Gross domestic purchases
Personal consumption expenditures
Excluding food and energy
Chained CPI
Excluding food and energy
2.0
1.3
1.5
1.9
1.2
1.8
1.3
1.6
1.9
1.7
1.9
1.6
Fixed-weight
Consumer price index
Excluding food and energy
1.9
2.7
2.3
2.1
Price measure
1992
1998
2000
2002
NOTE. 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.
Monetary Policy Report to the Congress
gas prices; the higher spot prices for both oil and gas
are likely to be boosting consumer energy prices
early this year.
The PCE price index for food and beverages
increased only IV2 percent last year; the increase
followed a 3 percent rise in 2001 that reflected
supply-related price increases for many livestock
products including beef, poultry, and dairy products.
But livestock supplies had recovered by early last
year, and a drought-induced selloff of cattle herds last
summer pushed prices still lower.
The prices of goods other than food and energy
items decelerated sharply last year. Prices for apparel,
new and used motor vehicles, and a wide range of
other durable goods all declined noticeably and, on
average, at a faster pace than in 2001. Price increases
for services were much larger than for goods and
slowed less from the previous year. Both tenants' rent
and the imputed rent of owner-occupied housing—
categories that account for a sizable share of
services—rose significantly less last year than they
did in 2001. But many other services prices posted
increases in 2002 that were about the same as in
2001. Information on medical prices was mixed.
According to the CPI, the price of medical services
continued to accelerate, rising 5V2 percent last year.
But the increase in the PCE measure of medical
services prices was less than 3 percent, a smaller
increase than in 2001. One reason for this difference
is that the prices of services paid for by Medicare and
Medicaid are included in the PCE index but not in
the CPI (because services provided by Medicare and
Medicaid do not represent out-of-pocket costs to
consumers and so are outside of the CPI's scope),
and Medicare reimbursement rates for physicians
were reduced last year.
Despite the acceleration in medical prices in the
CPI but not in the PCE price index, the CPI excluding food and energy decelerated notably more than
did the core PCE price index between 2001 and
2002. The two price measures differ in a number of
respects, but much of last year's greater deceleration
in the CPI can be traced to the fact that the CPI
suffers from a form of "substitution bias" that is not
present in the PCE index. The CPI, being a fixedweight price index, overstates increases in the cost
of living because it does not adequately take into
account the fact that consumers tend to substitute
away from goods that are rising in relative price;
by contrast, the PCE price index does a better job of
taking this substitution into account. Last year, the
Bureau of Labor Statistics began to publish a new
index called the chained CPI; like the PCE price
index, the chained CPI does a more complete job
113
of taking consumer substitution into account, but it
is otherwise identical to the official CPI. In 2001, an
unusually large gap between increases in the official
CPI and the chained CPI arose, pointing to very large
substitution bias in the official CPI in that year. This
gap narrowed in 2002, indicating that substitution
bias declined between the two years. (Final estimates
of the chained CPI are not yet available; the currently
available data for both 2001 and 2002 are preliminary
and subject to revision.)
Survey measures of expected inflation generally
ran a little lower in 2002 than in 2001. According to
the Michigan SRC, median one-year inflation expectations plummeted after the September 11 attacks,
but by early 2002, expectations returned to the
23/4 percent range that had prevailed during the previous summer. These expectations gradually moved
lower over the course of last year and now stand
around 2Vi percent. Meanwhile, the Michigan SRC's
measure of five- to ten-year inflation expectations
remained steady at about 23/4 percent during 2002, a
rate a little lower than the 3 percent inflation expectations that had prevailed through most of 2001.
U.S. Financial
Markets
Developments in financial markets last year were
shaped importantly by sharp declines, on net, in
equity prices and most long-term interest rates and
by periods of heightened market volatility. In contrast
to 2001, when the Federal Reserve eased the stance
of monetary policy eleven times, last year saw one
reduction in the intended federal funds rate—in early
November—and interest rates on short-term Treasury
securities had moved little until then. Longer-term
interest rates, by contrast, were more volatile. Investors' optimism about future economic prospects
pressured longer-term Treasury bond yields higher
early in 2002. But as the year progressed, that optimism faded when the economy failed to gather much
momentum, and longer-term Treasury yields ended
the year appreciably lower. Softer-than-expected
readings of the economic expansion, a marked deterioration in corporate credit quality, concerns about
corporate governance, and heightened geopolitical
tensions made investors especially wary about risk.
Lower-rated firms found credit substantially more
expensive, as risk spreads on speculative-grade debt
soared for most of the year before narrowing somewhat over the last few months. Even for higherquality firms, risk spreads widened temporarily during the tumultuous conditions that prevailed in
financial markets over the summer. In addition, com-
114
Federal Reserve Bulletin • March 2003
mercial banks tightened standards and terms for business borrowers, on net, in 2002, and risk spreads
on business loans remained in an elevated range
throughout the year. Increased caution on the part of
investors was particularly acute in the commercial
paper market, where the riskiest issuers discontinued
their programs.
Federal borrowing surged last year, while private
borrowing was held down by the significantly
reduced credit needs of business borrowers. Declines
in longer-term interest rates during the first half of
the year created incentives for both businesses and
households to lock in lower debt-service obligations
by heavily tapping corporate bond and home mortgage markets, respectively. While mortgage borrowing remained strong, businesses sharply curtailed
their issuance of longer-term debt during the second
half of 2002 amid the nervousness then prevailing in
the financial markets.
Interest Rates
Reflecting an unchanged stance of monetary policy
over most of last year, short-term market interest
rates moved little until early November, when the
FOMC lowered the target federal funds rate Vi percentage point, and other short-term interest rates followed suit. Yields on intermediate- and long-term
Treasury securities, by contrast, declined as much as
Wz percentage points, on net, in 2002. Longer-term
interest rates began last year under upward pressure,
as signs that the economy had bottomed out started to
nudge rates higher in the final weeks of 2001. Positive economic news pushed interest rates up appreciably further during the first quarter of 2002. The
increase in longer-term interest rates was consistent
with the sharp upward tilt of money market futures
rates, which suggested that market participants
expected that the FOMC would almost double the
intended level of the funds rate by year's end. However, as readings on the strength of the economic
expansion came in on the soft side, investors substantially trimmed their expectations for policy tightening, and yields on longer-term Treasury securities
turned down in the spring.
The slide in longer-term Treasury yields intensified
over the summer amid weaker-than-expected economic data, heightened geopolitical tensions, fresh
revelations of corporate malfeasance, and disappointing news about near-term corporate profits. In concert, these developments prompted investors to mark
down their expectations for economic growth and,
consequently, their anticipated path for monetary policy. A widespread retrenchment in risk-taking sent
yields on speculative-grade corporate bonds sharply
higher and kept those on the lower rungs of investment grade from declining, even as longer-term
nominal Treasury yields fell to very low levels by the
end of July.
The uneventful passing of the Securities and
Exchange Commission's August 14 deadline for officers of large companies to certify corporate financial
statements somewhat assuaged investors' anxieties
about corporate governance problems. But subsequent news suggesting that the economy was losing
momentum and a flare-up in tensions with Iraq further boosted demand for Treasury securities. The
FOMC's decision at the August meeting—to leave
the intended federal funds rate unchanged but to
judge the balance of risks to the outlook as weighted
toward economic weakness—pulled the expected
Implied volatility of short-term interest rates
Interest rates on selected Treasury securities
Percent
Percent
Three-month
1997
NOTE. The data are daily and extend through February 5, 2003.
1998
1999
2000
2001
2002
2003
NOTE. The data are daily and extend through February 5, 2003. The series
shown is the implied volatility of the three-month eurodollar rate over the
coming four months, as calculated from option prices.
Monetary Policy Report to the Congress
path of the funds rate lower, and longer-term Treasury yields sank to forty-year lows in early autumn.
A high degree of investor uncertainty about the future
path of monetary policy was evidenced by implied
volatilities of short-term interest rates derived from
option prices, which soared to record levels in early
autumn. The size of the FOMC's November cut in
the target federal funds rate and the shift to balance in
its assessment of risks surprised market participants,
but the policy easing appeared to lead investors to
raise the odds that the economy would pick up from
its sluggish pace. Generally positive economic news
and rising equity prices over the remainder of the
year also bolstered confidence and prompted market
participants to mark up the expected path for monetary policy and push up longer-term Treasury yields.
Yields on higher-quality investment-grade corporate bonds generally tracked those on Treasuries
of comparable maturity last year, although risk
spreads on these instruments widened moderately
over the summer and early autumn before narrowing over the remainder of the year. Interest rates on
below-investment-grade corporate debt, by contrast,
increased for much of last year, as spreads over
Treasuries ballooned in response to mounting concerns about corporate credit quality, historically low
recovery rates on defaulted bonds, and revelations of
improper corporate governance; credit risk spreads
widened in all speculative sectors but especially in
telecom and energy. By the summer, investors' retreat
from risk-taking had widened bid-asked spreads in
the corporate bond market enough to impair trading.
Risk spreads on speculative-grade bonds narrowed
considerably over the year's final quarter and in early
115
2003, though they remain elevated by historical standards; risk spreads for the weaker speculative-grade
credits remain exceptionally wide, as investors evidently anticipate a continued high level of defaults
and low recovery rates.
Equity Markets
Equity prices were buffeted last year by considerable
fluctuations in investors' assessments of the outlook
for the economy and corporate earnings and by
doubts about the quality and transparency of corporate balance sheets. Net declines in stock prices
in 2002 exceeded those posted during either of the
preceding two years. Worries about the pervasiveness
of questionable corporate governance and a deterioration in the earnings outlook—especially in the technology sector—depressed equity prices in early 2002.
The positive tenor of economic data, however, managed to outweigh those concerns, and stock prices
staged a rally halfway through the first quarter, with
the gains tilted toward "old economy" firms. But
the rebound was short lived. Share prices started to
tumble in early spring across all sectors as weakerthan-expected economic data eroded investors' confidence in the strength of the economic expansion.
These developments were reinforced by first-quarter
corporate earnings reports that, though mostly matching or exceeding investors' expectations, painted a
bleak picture of prospective sales and profits.
Over the spring and summer, accounting scandals,
widespread warnings about near-term corporate profitability, and heightened geopolitical tensions intensified the slide in stock prices. Particularly large
declines in share prices were posted for technology
Corporate bond yields
Major stock price indexes
January 2, 2001 = 100
20
15
125
l Nasdaq
Wilshire 5000
10
100
75
J
I I I I I L
1991
1993
1995
1997
J
1999
2001
I L
NOTE. The data are monthly averages and extend through January 2003.
The AA rate is calculated from bonds in the Merrill Lynch AA index with
seven to ten years remaining maturity. The high-yield rate is the yield on the
Merrill Lynch 175 high-yield index.
50
2003
I I I I I I I I I ! I 1
2001
, i . , i , , I
2003
2002
NOTE. The data are daily and extend through February 5, 2003.
116
Federal Reserve Bulletin • March 2003
Implied S&P 100 volatility
^
1997
1998
^
1999
2000
—
2001
2002
—
2003
NOTE. The data are daily and extend through February 5, 2003. The series
shown is the implied volatility of the S&P 100 stock price index as calculated
from the prices of options that expire over the next several months.
SOURCE. Chicago Board Options Exchange.
firms, whose prospects for sales and earnings were
especially gloomy. Equity prices were boosted briefly
by the uneventful passing of the August 14 deadline to certify financial statements, but they quickly
reversed course on continued concerns about the pace
of economic growth and corporate earnings and the
escalating possibility of military action against Iraq.
By early October, equity indexes sank to their lowest
levels since the spring of 1997, and implied stock
price volatility on the S&P 100 surged to its highest
reading since the stock market crash of 1987. The
drop in stock prices widened the gap between the
expected year-ahead earnings-price ratio for the
S&P 500 and the real ten-year Treasury yield—one
S&P 500 forward earnings-price ratio
and the real interest rate
Percent
1990
1992
1994
1996
1998
2000
2002
NOTE. The data are monthly and extend through December 2002. The
earnings-price ratio is based on I/B/E/S consensus estimates of earnings over
the coming year. The real rate is estimated as the difference between the
ten-year Treasury rate and the five-year to ten-year expected inflation rate
from the FRB Philadelphia survey.
simple measure of the equity premium—to levels not
seen since the mid-1990s.
Share prices turned around in late October, as the
third-quarter corporate earnings reports were not as
weak as investors had originally feared. Equity prices
were also given a boost in early November by the
larger-than-expected monetary policy easing, and the
rally was sustained over the remainder of the year
by the generally encouraging tone of economic data.
Greater confidence among investors in the economic
outlook also helped bring down the implied volatility
on the S&P 100 significantly by year-end, although it
remains at an elevated level by historical standards.
Despite the fourth-quarter rebound, broad equity
indexes were down, on net, about 20 percent in
2002, while the tech-heavy Nasdaq lost more than
30 percent.
The decline in equity prices during the first three
quarters of 2002 is estimated to have erased more
than $3Vz trillion in household wealth, a loss of
nearly 9 percent of total household net worth,
although the fourth-quarter rise in stock prices
restored about $600 billion. Still, the level of household net worth at the end of last year was more than
40 percent higher than it was at the start of the
bull market in 1995. Equity prices maintained their
upward momentum during the first half of January
2003 but then fell sharply amid the looming prospects of military action against Iraq and a stillgloomy outlook for corporate earnings. Broad stock
price indexes have lost almost 5 percent this year;
however, solid fourth-quarter earnings from many
prominent technology companies helped brighten
investors' sentiment regarding that sector, and the
Nasdaq is down about 3 percent this year.
Debt and Financial Intermediation
A deceleration of business borrowing slowed growth
of the debt of nonfederal sectors about 1 percentage
point in 2002, to 6V2 percent. By contrast, the decline
in interest rates last year kept borrowing by households and state and local governments brisk. At the
federal level, weak tax receipts and an acceleration in
spending pushed debt growth to IV2 percent last year
after a slight contraction in 2001.
For the year as a whole, corporate borrowing was
quite weak, mainly because of sagging capital expenditures, a drying up of merger and acquisition activity, and a reliance on liquid assets. Although businesses tapped bond markets in volume over the first
half of the year, subsequent concerns about the reliability of financial statements and the quality of cor-
Monetary Policy Report to the Congress
Change in domestic nonfinancial debt
117
Net percentage of domestic banks tightening
standards on commercial and industrial loans
to large and medium-sized firms
Percent
Percent
Nonfederal
NOTE. The data are based on a survey generally conducted four times per
year; the last reading is from the January 2003 survey. Large and
medium-sized firms are those with annual sales of $50 million or more. Net
percentage is the percentage reporting a tightening less the percentage
reporting an easing.
SOURCE. Federal Reserve, Senior Loan Officer Opinion Survey on Bank
Lending Practices.
Federal,
held by public
1988
1990
1992
1994
1996
1998
2000
2002
NOTE. For 2002, change is from 2001 :Q4 to 2002:Q3 at an annual rate. For
earlier years, the data are annual and are computed by dividing the annual
flow for a given year by the level at the end of the preceding year. The total
consists of nonfederal debt and federal debt held by the public. Nonfederal
debt consists of the outstanding credit market debt of state and local
governments, households, nonprofit organizations, nonfinancial businesses,
and farms. Federal debt held by the public excludes securities held as
investments of federal government accounts.
porate governance and deteriorating creditworthiness
ruined investors' appetite for corporate debt in the
summer and early autumn. Households, by contrast,
flocked to the mortgage markets to take advantage of
low mortgage rates throughout the year, and strong
motor vehicle sales supported the expansion of
consumer credit. For depository institutions, the net
effect of these developments was an acceleration of
credit to 6V2 percent last year, 2 percentage points
above the pace of 2001. The growth of credit at
thrift institutions moderated, though the slowdown
can be attributed for the most part to a large thrift
institution's conversion to a bank charter. The
growth of credit at commercial banks accelerated to
63/4 percent—a significant increase from the anemic
pace in 2001; the pickup was driven by large acquisitions of securities, especially mortgage-backed securities, as well as a surge in home equity and residential real estate lending.
By contrast, business lending at commercial banks
dropped 7 percent last year after falling almost 4 percent in 2001; last year's decline kept overall loan
growth for 2002 to about 5 percent. In the October
Senior Loan Officer Opinion Survey on Bank Lending Practices, respondents noted that the decline in
commercial and industrial (C&I) lending since the
beginning of the year reflected not only the limited
funding needs of creditworthy borrowers that found
bond financing or a runoff of liquid assets more
attractive, but also a reduction in the pool of creditworthy borrowers. Over the course of last year, banks
reported some additional net tightening of standards
and terms on C&I loans, mainly in response to greater
uncertainty about the economic outlook and rising
corporate bond defaults, although the proportions of
banks that reported doing so declined noticeably.
Direct measures of loan pricing conditions from the
Federal Reserve's quarterly Survey of Terms of Business Lending also indicated that banks were cautious
lenders last year, as the average spread of C&I loan
rates over market interest rates on instruments of
comparable maturity remained wide, and spreads
on new higher-risk loans declined only slightly from
the lofty levels that prevailed over the first half of
the year. Although bank lenders were wary about
business borrowers, especially toward lower-rated
credits, they did not significantly constrict the supply of loans: Most small firms surveyed by the
National Federation of Independent Businesses in
118
Federal Reserve Bulletin • March 2003
Delinquency rates on selected types of loans at banks
Regulatory capital ratios of commercial banks
Percent
—
—
V Commercial and industrial
^
Percent
6 |
—
Total (tier 1 + tier 2) ratio
—
—
\
^
Consumer
—
/
4
^
/
14
— 12
Tier 1 ratio
10
'
—
Residential real estate
1 1
1
1
1992
1
1
1994
1
1
1996
1
I
1998
—
3
—
2
/
1 1
2000
1
1 1
2002
NOTE. The data, from bank Call Reports, are quarterly, seasonally adjusted, and extend through 2002:Q3.
2002 reported that they experienced little or no difficulty satisfying their borrowing needs.
Loan quality at commercial banks improved overall last year. Loan delinquency rates edged down
through the third quarter of 2002—the latest period
for which Call Report data are available—in response
to better performance of residential real estate and
consumer loans and a stable delinquency rate on C&I
loans. Despite the improvement in consumer loan
quality, domestic banks imposed somewhat more
stringent credit conditions when lending to households, according to the survey on bank lending practices. Moderate net proportions of surveyed institutions tightened credit standards and terms for credit
card and other consumer loans throughout last year.
The net fraction of banks that tightened standards on
Net percentage of domestic banks tightening standards on
consumer loans and residential mortgage loans
Percent
1991
1993
1995
1997
1999
2001
2003
NOTE. The data are based on a survey generally conducted four times per
year; the last reading is from the January 2003 survey. Net percentage is the
percentage reporting a tightening less the percentage reporting an easing.
SOURCE. Federal Reserve, Senior Loan Officer Opinion Survey on Bank
Lending Practices.
—
1 1 1
1990
1 1
1992
1
1
1994
1 1
1996
1 1
1998
1
1
2000
8
1 1 1
2002
NOTE. The data, which are quarterly and extend through 2002: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.
residential mortgage loans rose late in the year to
the highest share in the past decade, but nonetheless
remained quite low. Commercial banks generally registered strong profit gains last year, although steep
losses on loans to energy and telecommunications
firms significantly depressed profits at several large
bank holding companies. Despite the increased rate
of provisioning for loan losses, the banking sector's
profitability stayed in the elevated range recorded for
the past several years, as a result of the robust fee
income from mortgage and credit card lending, effective cost controls, and the relatively inexpensive
funding offered by inflows of core deposits. As of
the third quarter of last year, virtually all assets in
the banking sector were at well-capitalized institutions, and the substitution of securities for loans on
banks' balance sheets helped edge up risk-based capital ratios.
The financial condition of insurance companies, by
contrast, worsened notably last year. Both property
and casualty insurers and life and health insurers sustained significant investment losses from the
decline in equity prices and the deterioration in corporate credit quality. However, these negative pressures were offset somewhat by the continued strong
growth of insurance premiums, and both sectors of
the insurance industry stayed fairly well capitalized
in 2002.
Monetary Aggregates
The broad monetary aggregates decelerated noticeably last year after surging in 2001. Short-term market interest rates, which had declined swiftly dur-
Monetary Policy Report to the Congress
M3 growth rate
M2 growth rate
Percent, annual rate
1990
119
1992
1994
1996
1998
2000
Percent, annual rate
2002
NOTE. M2 consists of currency, travelers checks, demand deposits, other
checkable deposits, savings deposits (including money market deposit
accounts), small-denomination time deposits, and balances in retail money
market funds.
NOTE. M3 consists of M2 plus large-denomination time deposits, balances
in institutional money market funds, repurchase-agreement liabilities
(overnight and term), and eurodollars (overnight and term).
ing 2001, were stable over the first half of the year;
deposit rates, in a typical pattern of lagged adjustment, continued to fall. Consequently, the opportunity cost of holding M2 assets increased, especially
for its liquid deposit (checking and savings accounts)
and retail money fund components, thereby restraining the demand for such assets. After decelerating in
the first half of the year, M2 rebounded significantly
in the second half, because of a surge in liquid
deposits and retail money market mutual funds. The
strength in both components partly reflected elevated
volatility in equity markets against the backdrop of
a still-low opportunity cost of holding such deposits.
In addition, another wave of mortgage refinancing
boosted M2 growth during this period. (Refinancings
cause prepayments to accumulate temporarily in
deposit accounts before being distributed to investors
in mortgage-backed securities.) All told, over the
four quarters of the year, M2 increased 7 percent, a
pace that exceeded the expansion of nominal income.
As a result, M2 velocity—the ratio of nominal GDP
to M2—declined for the fifth year in a row, roughly
in line with the drop in the opportunity cost of M2
over this period.
Reflecting in part the slowing of its M2 component, M3—the broadest money aggregate—expanded
6!/2 percent in 2002, a pace well below the 123/4 percent advance posted in 2001. Growth in M3 was also
held down by a sharp deceleration of institutional
money funds, as their yields dropped to close alignment with short-term market interest rates. This effect
was only partly offset by the pickup in needs to fund
bank credit, which resulted in an acceleration in the
issuance of managed liabilities, including large time
deposits. M3 velocity continued to decline in 2002.
M2 velocity and opportunity cost
Percentage points, ratio scale
Ratio, ratio scale
2.3
—
8
M2 velocity
—
2.1 —
4
New Discount Window Programs
/
2
M2
opportunity
cost
\ \
\ \
\\
1.9 —
—
1
^
1 1
1993
1
1
1
1
1996
1
1
1
1999
1
1
1 1
2002
NOTE. The data are quarterly and extend through 2002:Q4. 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.
On October 31, 2002, following a three-month public
comment period, the Board of Governors approved
changes to its Regulation A that established two new
types of loans to depository institutions—primary
and secondary credit—and discontinued the adjustment and extended credit programs. The new programs were implemented on January 9, 2003. The
seasonal credit program was not altered.
The primary reason for adopting the new programs
was to eliminate the subsidy to borrowing institutions that was implicit in the basic discount rate,
120
Federal Reserve Bulletin • March 2003
which since the late 1960s had usually been set below
market interest rates. The subsidy required Federal Reserve Banks to administer credit extensions
heavily in order to ensure that borrowing institutions used credit only in appropriate circumstances—
specifically, when they had exhausted other reasonably available funding sources. That administration
was necessarily somewhat subjective and consequently difficult to apply consistently across Reserve
Banks. In addition, the heavy administration was one
factor that caused depository institutions to become
reluctant to use the window even in appropriate conditions. Also, depository institutions were concerned
at times about being marked with a "stigma" if
market analysts and counterparties inferred that the
institution was borrowing from the window and suspected that the borrowing signaled that the institution
was having financial difficulties. The resulting reluctance to use the window reduced its usefulness in
buffering shocks to the reserve market and in serving
as a backup source of liquidity to depository institutions, and thus undermined its performance as a
monetary policy tool.
To address these issues, the Board of Governors
specified that primary credit may be made available
at an above-market interest rate to depository institutions in generally sound financial condition. The
above-market interest rate eliminates the implicit
subsidy. Also, restricting eligibility for the program
to generally sound institutions should reduce institutions' concerns that their borrowing could signal
financial weakness.
The Federal Reserve set the initial primary credit
rate at 2.25 percent, 100 basis points above the
FOMC's target federal funds rate as of January 9,
2003. The target federal funds rate remained
unchanged, and thus the adoption of the new programs did not represent a change in the stance of
monetary policy. In the future, the primary credit
rate will be adjusted from time to time as appropriate,
using the same discretionary procedure that was
used in the past to set the adjustment credit rate. The
Federal Reserve also established procedures to reduce
the primary credit rate to the target federal funds rate
in a national emergency, even if key policymakers
are unavailable.
Institutions that do not qualify for primary credit
may obtain secondary credit when the borrowing is
consistent with a prompt return to market sources of
funds or is necessary to resolve severe financial difficulties. The interest rate on secondary credit is set by
formula 50 basis points above the primary credit rate.
The rate was set initially at 2.75 percent. Because
secondary credit borrowers are not in sound finan
cial condition, extensions of secondary credit usually
involve some administration.
International
Developments
The international economy rebounded in 2002 after
a stagnant performance in 2001, but recovery was
uneven in both timing and geographical distribution.
Growth abroad picked up sharply in the first half of
last year, as a strong rally in the high-tech exporting
economies in developing Asia was joined by robust
growth in Canada and, to a lesser extent, Mexico.
Japan also posted respectable growth in the first
half, largely as a result of a surge of exports. However, performance in the euro area remained sluggish,
and several South American economies experienced
difficulties, with full-fledged crises in Argentina and
Venezuela and mounting concerns about prospects
for Brazil. As the U.S. economy decelerated in the
second half, the rapid pace of recovery slowed in
developing Asia and in Canada, while performance
remained lackluster in much of the rest of the world.
Monetary policy actions abroad also diverged
across countries in 2002 as authorities reacted to
differing economic conditions. In Canada, official
interest rates were raised in three steps by July amid
concerns that buoyant domestic demand and sharply
rising employment would ignite inflationary pressures. Monetary authorities in Australia and Sweden
also increased policy rates in the first half of the year.
However, as economic conditions weakened around
the world in the second half, official interest rates
were held constant in Canada and Australia and were
lowered in Sweden. Monetary policy was held steady
throughout 2002 in the United Kingdom, where
growth was moderate and inflation subdued, but official interest rates were lowered 25 basis points, to
3.75 percent, in early February 2003 in response to
concerns about the prospects for global and domestic demand. The European Central Bank (ECB) held
rates constant through most of the year, as inflation
remained above the ECB's 2 percent target ceiling,
but rates were lowered 50 basis points in December as the euro area's already weak recovery appeared
to be stalling. Japanese short-term interest rates
remained near zero, while authorities took some limited further steps to stimulate demand through nontraditional channels. Monetary policy was tightened in
both Mexico and Brazil in response to concerns about
the inflationary effects of past currency depreciation.
Yield curves in the major foreign industrial countries steepened and shifted up in the first quarter of
2002 in response to generally favorable economic
Monetary Policy Report to the Congress
Equity indexes in selected foreign industrial countries
Week ending January 5, 2001 * 100
NOTE. The data are weekly. The last observations are the average of
trading days through February 5, 2003.
news, but later they flattened out and moved back
down as the outlook deteriorated. Similarly, equity
prices in the major foreign industrial economies held
up well early in the year but then declined along with
the U.S. stock market and ended the year down
sharply from the previous year. The performance of
the stock markets in the emerging-market economies was mixed. Share prices in Brazil and Mexico
fell sharply in the second and third quarters but
then showed some improvement toward the end
of the year. In the Asian emerging-market economies, equity prices rose in the first half of 2002 on
a general wave of optimism, especially in the hightechnology producing economies; equity prices began
to decline around midyear as global demand softened
but posted modest rebounds late in the year.
The foreign exchange value of the dollar continued
its mild upward trend into the early part of 2002, as it
Equity indexes in selected emerging markets
Week ending January 5 , 2 0 0 1 = 100
2001
2002
2003
NOTE. The data are weekly. The last observations are the average of
trading days through February 5, 2003.
121
appeared that the United States was poised to lead a
global economic recovery. However, the dollar weakened sharply in the late spring and early summer
amid deepening concerns about U.S. corporate governance and profitability. Around that time market analysts also appeared to become more worried about the
growing U.S. current account deficit and its potential
negative influence on the future value of the dollar.
The dollar rebounded somewhat around midyear as
growth prospects for other major economies, particularly in the euro area, appeared to dim; the dollar
dropped back again late in the year, as geopolitical
tensions intensified, and continued to depreciate in
early 2003. In nominal terms the dollar has declined
about 5 percent on balance over the past year, with
depreciations against the currencies of the major
industrial countries and several of the developing
Asian economies partly offset by appreciation against
the currencies of several Latin American countries.
Industrial Economies
The Canadian economy recorded the strongest performance among the major foreign industrial countries last year despite some slowing in the second
half. The strength, which was largely homegrown,
reflected robust growth of consumption and residential construction as well as an end to inventory runoffs early in the year. The expansion was accompanied by very rapid increases in employment and
utilization of capacity, and the core inflation rate
breached the upper end of the government's 1 percent to 3 percent target range near the end of the year.
The Canadian dollar appreciated against the U.S.
dollar in the first half of the year, but it dropped back
somewhat in the second half as the economy slowed;
by the end of the year it was up only slightly on
balance. The Canadian dollar has moved up somewhat more so far this year.
The Japanese economy recorded positive growth
during 2002, although it was not enough to fully
reverse the decline in output that occurred in 2001.
Despite about 10 percent appreciation of the yen
against the dollar in 2002, Japanese growth was
driven largely by exports, with smaller contributions
from both increased consumption and a slower pace
of inventory reduction. In contrast, private investment continued to decline, although not as sharply
as in 2001. Labor market conditions remained quite
depressed, and consumer prices continued to fall.
Little progress was made on the serious structural
problems that have plagued the Japanese economy,
including the massive and growing amount of bad
122
Federal Reserve Bulletin • March 2003
U.S. dollar exchange rate against selected major currencies
Week ending January 5, 2001 = 100
\japanese yen
—
110
U.K.
^ C a n a d i a n dollar
pound
\
~
100
90
Euro
1 1 , . i , . i , , i , , 1 . , i
2001
. . i
2002
1
2003
NOTE. The data are weekly. Exchange rates are in foreign currency units
per dollar. Last observations are the average of trading days through February
5, 2003.
loans on the books of Japanese banks. A new set of
official measures that aims at halving the value of bad
loans within two and a half years was announced in
the fall, but the details of this plan are still not fully
specified. In September, the Bank of Japan announced
a plan to buy shares from banks with excessive
holdings of equity, which would help to reduce bank
exposure to stock market fluctuations. Because the
transactions are to occur at market prices, there would
be no net financial transfer to the banks. Near the end
of last year the Bank of Japan (BOJ) raised its target
range for bank reserves at the BOJ from ¥10-15 trillion to ¥15-20 trillion, increased the monthly amount
of its outright purchases of long-term government
bonds, and broadened the range of collateral that
can be used for market operations. In December the
monetary base was up about 20 percent from a year
earlier, a rise partially reflecting the increased level
of bank reserves at the BOJ. However, the twelvemonth rate of base money growth was considerably
below the 36 percent pace registered in April. Broad
money growth remains subdued.
Economic performance in the euro area was quite
sluggish last year. Although exports were up sharply,
growth in consumption was modest, and private
investment declined. The area's lackluster economic
performance pushed the unemployment rate up by
several tenths of a percentage point by the end of
the year. Economic weakness was particularly pronounced in some of the larger countries—Germany,
Italy, the Netherlands, and, to a lesser extent, France.
In contrast, growth in Spain and some of the smaller
euro-area countries—Ireland, Portugal, Finland, and
Greece—was much more robust. Headline inflation
jumped to a bit above 21/2 percent early in the year,
owing to higher food and energy prices and in small
part to the introduction of euro notes and coins.
Increased slack in the economy, however, together
with the 15 percent appreciation of the euro by the
end of the year, helped to mitigate inflation concerns,
and the ECB lowered its policy interest rate in
December. The euro continued to appreciate in early
2003.
Economic growth in the United Kingdom held up
better than in the other major European countries last
year, and sterling strengthened about 10 percent
versus the dollar. However, the expansion remained
uneven, with the services sector continuing to grow
more rapidly than the smaller manufacturing sector.
Despite tight labor markets, inflation remained a bit
below the Bank of England's target of 2Vi percent for
most of the past year. A sharp rise in housing prices
has, however, raised some concern about the possibility of a real estate price bubble. The British government announced its intention to complete a rigorous
assessment of its criteria for joining the European
Monetary Union (EMU) by the middle of this year
and, if they are met, to hold a referendum on entry.
Emerging-Market Economies
The Brazilian economy posted a surprisingly strong
rebound in 2002 despite a major political transition
and accompanying turbulence in financial markets.
The Brazilian real depreciated sharply between May
and October, and sovereign bond spreads climbed to
2,400 basis points as it became increasingly likely
that Luiz Inacio Lula da Silva (Lula), the Workers'
Party candidate, would win the presidential election.
Given some of the past stances of the party, this
possibility fueled concerns among foreign investors
about a potential erosion of fiscal and monetary discipline. In response to the sharp deterioration in financial conditions facing Brazil, a $30 billion IMF program was approved in September 2002, $6 billion of
which was disbursed by the end of the year. However,
financial conditions improved markedly after Lula
won the election in late October and appointed a
cabinet perceived to be supportive of orthodox fiscal
and monetary policies, including greater central bank
independence. By January 2003 the real had reversed
about one-fourth of its previous decline against the
dollar, and bond spreads had fallen sharply. However,
the new administration still faces some major challenges. In particular, serious concerns remain over
the very large quantity and relatively short maturity
of the outstanding government debt. In addition, last
year's currency depreciation fueled a rise in inflation
Monetary Policy Report to the Congress
Exchange rates and bond spreads
for selected emerging markets
Week ending J a n u a r y 5 , 2 0 0 1 = 100
Week ending January 5, 2001 = 100
Dollar exchange rates
NOTE. The data are weekly. Exchange rates (top panel) are in foreign
currency units per dollar. Bond spreads (bottom panel) are the J.P. Morgan
Emerging Market Bond Index (EMBI+) spreads over U.S. Treasuries. Last
observations are the average of trading days through February 5, 2003.
that has prompted several increases in the monetary
policy interest rate. In January the government raised
the upper bound of its inflation target range for this
year to 8.5 percent from 6.5 percent, although the
target for next year was lowered at the same time to
5.5 percent from 6.25 percent.
Argentine GDP contracted further in 2002 after
declining 10 percent in 2001. The currency board
arrangement that had pegged the peso at a one-to-one
rate with the dollar collapsed early last year; the peso
lost nearly three-fourths of its value by late June, and
sovereign bond spreads spiked to more than 7,000
basis points. By early 2002, the banking system had
become effectively insolvent as a result of the plunging peso, the weak economy, and the government's
default on debt that the banks held mostly involuntarily. Confronted with this situation, the government forced the conversion of the banks' dollardenominated assets and liabilities to pesos and also
mandated the rescheduling of a large share of deposits. As a result of these and other measures, confi
123
dence in the banking system, already shaken, was
further impaired. Financial and economic conditions
eventually stabilized in the second half of the year,
but there are no signs yet of a sustained recovery. The
government also defaulted on obligations to multilateral creditors in late 2002 and early 2003. In January, Argentina and the International Monetary Fund
reached agreement on a $6.6 billion short-term program that will go to meeting Argentina's payments to
the IMF at least through the elections expected in the
spring and also to clearing its overdue obligations to
the multilateral development banks.
Venezuela experienced extreme economic and
political turmoil over the past year. In February 2002
the central bank abandoned the bolivar's crawling
peg to the dollar, and the bolivar depreciated sharply.
Opponents of President Hugo Chavez mounted a
short-lived coup in April and declared a national
strike in early December. The strike brought the
already-weak economy to a standstill, and output in
the key oil industry plummeted. The strike abated
in early February in all sectors but oil. In response to
the strike, Chavez increased his control of the stateowned oil company and oil production began rising
in early 2003, but it was still well below pre-strike
levels. With the exchange rate plunging in late January, the government suspended currency trading for
two weeks before establishing a fixed exchange rate
regime and some restrictions on foreign currency
transactions.
One of the few bright spots in Latin America last
year was the Mexican economy. Boosted by the U.S.
recovery, growth was moderate for the year as a
whole despite some late slowing. However, financial conditions deteriorated somewhat after midyear
as market participants reevaluated the strength of the
North American recovery. Mexican stock prices slid
about 25 percent between April and September, and
sovereign bond spreads widened nearly 200 basis
points to around 430 basis points over the same
period. Nevertheless, the Mexican economy did not
appear to be much affected by spillovers from the
problems elsewhere in Latin America; bond spreads
dropped sharply between October and the end of the
year to around 300 basis points, a level considerably
lower than elsewhere in the region. The peso depreciated about 12 percent against the dollar over the
course of last year. The decline fueled an increase
in twelve-month inflation to more than 5V2 percent
by year-end. The acceleration put inflation above
the government target rate of 41/2 percent and well
above the ambitious 3 percent target set for 2003. In
response to increasing inflation, the Bank of Mexico
has tightened monetary policy four times since Sep-
124
Federal Reserve Bulletin • March 2003
tember 2002. The peso has continued to depreciate in
early 2003, and bond spreads have moved back up a
bit.
The Asian emerging-market economies generally
performed well in 2002, although there were significant differences within the region. Outside of China,
the strongest growth was recorded in South Korea,
which benefited in the first half of the year from both
an upturn in global demand for high-tech products
and a surge in domestic demand, particularly consumption. However, consumer confidence deteriorated at the end of the year as tensions over North
Korea intensified; the uneasy situation, as well as the
substantial existing consumer debt burden, pose significant risks to growth in consumption this year. The
Korean won appreciated sharply against the dollar
between April and midyear in response to improving economic conditions; it then dropped back in late
summer and early fall as perceptions about the
strength of the global recovery were adjusted downward. However, the won turned back up against the
dollar late last year.
The performance of the ASEAN-5 economies—
Indonesia, Malaysia, the Philippines, Singapore,
and Thailand—also was generally robust in 2002,
although the overall softening in global demand in
the second half of the year was evident there as well.
The second-half slowing in production was particularly pronounced in Singapore, which is heavily
dependent on exports of high-technology products.
Taiwan, another high-technology producer, also
showed a significant deceleration in output between
the first and second halves of the year. Both of these
economies experienced some mild deflation in 2002,
although prices turned up toward the end of the year.
Although the Hong Kong economy did not show
as much improvement as most other emerging Asian
economies in the first half of last year, it recorded
very strong growth in the third quarter. Nevertheless,
prices continued to fall for the fourth consecutive
year. The mainland Chinese economy, which again
outperformed the rest of the region in 2002, enjoyed
surging investment by the government and by foreign
investors as well as robust export growth. The Chinese economy continued to experience mild deflation
last year.
•
125
Announcements
FEDERAL OPEN MARKET
DIRECTIVE
COMMITTEE
The Federal Open Market Committee decided on
January 29, 2003, to keep its target for the federal
funds rate unchanged at 1 ]A percent.
Oil price premiums and other aspects of geopolitical risks have reportedly fostered continued restraint
on spending and hiring by businesses. However, the
Committee believes that as those risks lift, as most
analysts expect, the accommodative stance of monetary policy, coupled with ongoing growth in productivity, will provide support to an improving economic
climate over time.
In these circumstances, the Committee believes
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
balanced with respect to the prospects for both goals
for the foreseeable future.
Voting for the FOMC monetary policy action were
Alan Greenspan, Chairman; William J. McDonough,
Vice Chairman; Ben S. Bernanke; Susan S. Bies;
J. Alfred Broaddus, Jr.; Roger W. Ferguson, Jr.;
Edward M. Gramlich; Jack Guynn; Donald L. Kohn;
Michael H. Moskow; Mark W. Olson; and Robert T.
Parry.
STATEMENT BY CHAIRMAN GREENSPAN ON THE
RETIREMENT
OF WILLIAM J.
MCDONOUGH,
PRESIDENT OF THE FEDERAL RESERVE
BANK
OF NEW YORK
I will greatly miss Bill McDonough's counsel and
advice. After a decade of exemplary service to the
Federal Reserve System, his retirement will leave a
pronounced void.
ADOPTION
OF FINAL RULE
SARBANES-OXLEY
ACT
IMPLEMENTING
The Federal Reserve Board on January 31, 2003,
announced the adoption of a final rule implementing
several of the reporting, disclosure, and corporate
governance requirements of the Sarbanes-Oxley Act
of 2002 for those state member banks that have a
class of securities registered under the Securities
Exchange Act of 1934.
The final rule, like the interim rule it replaces,
requires such state member banks to comply with any
rules adopted by the Securities and Exchange Commission under designated sections of the SarbanesOxley Act.
REVISION AND INTERPRETATION
REGULATION
K
OF
The Federal Reserve Board on January 6, 2003,
approved revisions to Subpart D of Regulation K,
governing international banking operations.
The final rule reduces the regulatory burden on
banking institutions engaged in international lending
by simplifying the requirements concerning accounting for fees on international loans to make the regulation consistent with generally accepted accounting
principles (GAAP).
The final rule will become effective thirty days
after publication in the Federal Register, which is
expected shortly.
The Federal Reserve Board on February 7, 2003,
issued an interpretation concerning securities underwriting by banking organizations that are subject to
the Bank Holding Company Act.
The interpretation clarifies that a banking organization that wishes to engage in underwriting securities that are to be distributed in the United States
must be either a financial holding company or have
authority to engage in underwriting activity under
section 4(c)(8) of the Bank Holding Company Act.
REAUTHORIZATION
OF THE NATIONAL
INSURANCE
PROGRAM
FLOOD
The Federal Reserve Board on January 14, 2003,
informed state member banks of the reauthorization
of the National Flood Insurance Program (NFIP) by
the Congress, retroactive to December 31, 2002.
The authority of the Federal Emergency Management Agency (FEMA) to issue flood insurance poli-
126
Federal Reserve Bulletin • March 2003
cies expired on December 31, 2002, after the Congress adjourned without extending FEMA's issuance
authority. On December 20, 2002, the federal financial institution regulatory agencies jointly issued
interim guidance to assist borrowers and lenders in
dealing with questions about what to do during the
lapse.
On January 13, 2003, President Bush signed the
National Flood Insurance Program Reauthorization
Act into law. The act extends the authorization of the
NFIP to December 31, 2003.
CHANGES TO INCREASE EFFICIENCY
IN
FEDERAL RESERVE BANK CHECK
SERVICES
The Federal Reserve Banks, collectively the nation's
largest processor of checks, announced on February 6, 2003, changes to their back office checkprocessing operations intended to improve operating
efficiency while maintaining high-quality check services to depository institutions nationwide.
Reflecting the ongoing shift in consumer and business preferences from checks to electronic payments,
the Reserve Banks will reduce their check service
operating costs through a combination of streamlining their check-management structure, reducing staff,
decreasing the number of check-processing locations,
and increasing processing capacity in other locations.
"The Federal Reserve Banks are committed to
remaining a leader in providing payment services,
including check processing. Adjusting our operations
to respond to changes in the marketplace will position the Banks to continue to fulfill this role," said
Cathy Minehan, President and Chief Executive Officer of the Federal Reserve Bank of Boston and Chair
of the Reserve Banks' Financial Services Policy
Committee.
Even though check payments remain the most
popular form of noncash retail payment, they make
up only 60 percent of all noncash retail payments
today compared with 85 percent in 1979. Recent
Federal Reserve studies suggest that roughly 40 billion checks were written in the United States in 2002,
down from about 50 billion in 1995. The Reserve
Banks handle about 17 billion of these checks annually, and this volume is expected to decline as well.
The changes reflect the changing market environment and will enable the Reserve Banks to continue
to meet the requirements of the Monetary Control
Act of 1980. That act requires the Reserve Banks to
set prices to recover, over the long run, their total
costs of providing payment services to depository
institutions, including the imputed costs they would
have incurred and imputed profits they would have
expected to earn had the services been provided by a
private business firm.
The changes, approved by the Reserve Banks'
Conference of Presidents, are expected to reduce
operating costs for check services about $60 million
in 2005 and about $300 million over the next five
years. The changes also are consistent with a decision
reached after a 1998 Federal Reserve study of the
payments system that the Reserve Banks would
remain a provider of check services.
"Nationwide, consumers and businesses have
made a significant shift in how they make payments,
substituting electronic payments for checks. This
development is good news for the nation's payments
system, and the Federal Reserve has strongly supported this shift," Minehan said. "But declining
check volumes are requiring the Reserve Banks to
make changes in their check operations to address
the challenges posed by the changing market. The
changes we are announcing today will help us meet
these challenges."
Reserve Banks will continue to provide check services on a nationwide basis and are working to maintain deposit times and availability as close to current
service levels as possible for depository institutions
in the affected markets. In addition, new checkimaging and check-adjustments technology should
enable the Reserve Banks to provide new services
and help maintain the high quality of Reserve Bank
check services offered to the nation's depository
institutions.
With the changes, Reserve Bank check processing
will be performed at 32 sites, down from 45. Additionally, the Reserve Banks will streamline their
check-adjustment functions, now being handled in
43 locations, to 12 of their current locations nationwide. (The term "check adjustments" refers to the
part of the check-processing operation in which
check-processing errors are resolved.) Of the
13 offices that will no longer process checks (see
table 1), the 5 regional sites that process only checks
will close. The volume from these 13 offices will be
handled by 9 offices (see table 2).
1. Offices that will no longer process checks
Pittsburgh, Pa.
Richmond, Va.
Charleston, W.Va.1
Columbia, S.C.1
Miami, Fla.
Indianapolis, Ind.1
Milwaukee, Wis. 1
1. These offices will close.
Peoria, 111.1
Little Rock, Ark.
Louisville, Ky.
Omaha, Nebr.
El Paso, Tex.
San Antonio, Tex.
Announcements
2. Offices that will expand check-processing capacity
Cleveland, Ohio
Cincinnati, Ohio
Baltimore, Md.
Charlotte, N.C.
Jacksonville, Fla.
Chicago, 111.
Des Moines, Iowa
Memphis, Tenn.
Dallas, Tex.
As a result of these changes, the Reserve Banks
will reduce their overall check staff by slightly more
than 400 positions, representing about 8 percent of
their current check service positions. In the offices
where check processing will be eliminated, almost
1,300 positions will be affected. At this time,
however, the number of involuntary separations is
unclear. Some staff reductions will occur through
attrition, and there will be some opportunities for
reassignment. In addition, the Reserve Banks estimate that they will add about 900 positions at the
offices that will continue processing checks.
The Reserve Banks will offer a variety of programs
to assist affected staff. These programs include separation packages, enhanced pension benefits for some
longer-service staff nearing retirement, extended
medical coverage, and career transition assistance.
The changes are projected to begin in some offices in
the second half of this year and to continue through
2004, with an expected completion at all offices by
the end of that year.
According to Minehan,
One of the missions of the Federal Reserve System is
to foster the efficiency, accessibility, and integrity of the
nation's payments system. We believe that the changes we
are announcing are essential because they will provide the
Reserve Banks greater flexibility to manage check operations in an environment of declining volumes. We regret
that this decision will affect a portion of the Fed's checkprocessing management and staff, but we have a range of
programs in place to help ease the transition for affected
staff members.
From 1992 to 2001, the Reserve Banks earned an
average annual after-tax return on equity for all
priced payment services of 12.2 percent. In 2002,
however, mainly because of declining check volumes, the Reserve Banks' after-tax return on equity
for all priced payment services declined, to 4.2 percent. In 2003, the Reserve Banks expect to post an
after-tax loss reflecting the up-front costs associated
with the changes. The Reserve Banks project that
these changes will position check services to return
to full cost recovery by 2005.
For more information on the affected banks, see
the announcement at http://www.federalreserve.gov/
boarddocs/press/other/2003/20030206/default.htm.
INTERAGENCY
GUIDANCE ON CREDIT
ACCOUNT MANAGEMENT
AND LOSS
ALLOWANCE
PRACTICES
127
CARD
Under the auspices of the Federal Financial Institutions Examination Council, the Office of the Comptroller of the Currency, the Federal Reserve Board,
the Federal Deposit Insurance Corporation, and the
Office of Thrift Supervision issued on January 8,
2003, guidance governing account-management and
loss allowance practices for credit card lending.
The guidance applies to all banks and thrifts. The
agencies developed the guidance in response to recent
examinations that disclosed a number of inappropriate account-management, risk-management, and loss
allowance practices.
The agencies' objective in issuing the guidance is
to assist financial institutions in conducting credit
card lending activities in a safe and sound manner,
while meeting the needs of their customers. The
guidance outlines the supervisory agencies' expectations for prudent risk management, income recognition, and loss allowance practices. The agencies carefully reviewed and considered the comments received
from individuals, institutions, community groups, and
trade associations after publication of a draft of the
guidance on July 22. In response to the comments,
the agencies made changes to address the following
issues:
• Clarify documentation expectations for line
increase programs.
• Clarify expectations for over-limit practices.
• Provide guidance for minimum payments and
negative amortization.
• Revise the repayment period for workout
accounts.
The agencies recognize that some institutions
may require additional time to implement changes in
policies, practices, and systems in order to achieve
full consistency with the credit card guidance. Those
institutions should work with their primary federal
regulator to ensure implementation of needed
changes as promptly as possible.
With respect to income recognition and loss allowance practices for credit card lending, the guidance
reflects generally accepted accounting principles
(GAAP), existing interagency policies on loss allowances, and current Call Report and Thrift Financial
Report instructions. The agencies expect continued and ongoing compliance with GAAP and these
reporting instructions.
128
Federal Reserve Bulletin • March 2003
INTERAGENCY
INFORMATION
GUIDANCE
SECURITY
ON
IDENTIFYING
RISKS
The Federal Financial Institutions Examination
Council (FFIEC) on January 29, 2003, issued revised
guidance for examiners and financial institutions to
use in identifying information security risks and
evaluating the adequacy of controls and applicable
risk-management practices of financial institutions.
The safety and soundness of the federal financial
industry and the privacy of customer information
depend on the security practices of banks, thrift institutions, and credit unions. The Information Security
booklet describes how an institution should protect
and secure the systems and facilities that process and
maintain information. The booklet calls for financial
institutions and technology service providers (TSPs)
to maintain effective security programs, tailored to
the complexity of their operations.
This guidance is the first in a series of updates to
the 1996 FFIEC Information Systems (IS) Examination Handbook. These updates will address significant changes in technology since 1996 and incorporate a risk-based examination approach.
The FFIEC currently plans to issue the updates
in separate booklets that will ultimately replace all
chapters of the 1996 handbook and make up the
new FFIEC Information Technology (IT) Examination Handbook. In addition to the booklet on information security, future booklets will address business continuity planning, supervision of technology
service providers, electronic banking, IT audit,
payment systems, outsourcing, IT management,
computer operations, and systems development and
acquisition.
The FFIEC agencies plan to distribute these booklets electronically to financial institutions and TSPs.
The documents will be available on the Internet
through the FFIEC's InfoBase application. InfoBase
will include each booklet in Adobe Acrobat PDF file
format, as well as an on-line version with links to
various resource materials, and an orientation to the
handbook update process.
The electronic version of the Information Security
booklet is available at www.ffiec.gov/guides.htm.
The FFIEC is composed of the five federal financial regulators: the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the
Office of the Comptroller of the Currency, and the
Office of Thrift Supervision.
TESTING REVEALS
MAIL
SAMPLE
NO ANTHRAX
ON
BOARD
The Federal Reserve Board on January 15, 2003,
received results from further testing conducted by the
State of North Carolina, under the guidance of the
Centers for Disease Control (CDC). It showed no
anthrax bacteria present on a sample from a piece of
mail that earlier had tested presumptively positive for
the bacteria in a private laboratory.
The most recent tests conducted are considered
definitive by CDC standards. The sample will be sent
to the CDC in Atlanta for additional testing and
identification.
RELEASE OF MINUTES
MEETINGS
OF DISCOUNT
RATE
The Federal Reserve Board on February 7, 2003,
released the minutes of its discount rate meetings
from November 18, 2002, to December 9, 2002.
ENFORCEMENT
ACTIONS
The Federal Reserve Board on January 23, 2003,
announced the issuance of an order of assessment of
a civil money penalty against The Bank of Yellville,
Yellville, Arkansas, a state member bank.
The Bank of Yellville, without admitting to any
allegations, consented to the issuance of the order in
connection with its alleged violations of the Board's
regulations implementing the National Flood Insurance Act.
The order requires The Bank of Yellville to pay a
civil money penalty of $1,750, which will be remitted
to the Federal Emergency Management Agency for
deposit into the National Flood Mitigation Fund.
The Federal Reserve Board on January 23, 2003,
announced the issuance of an order of assessment of
a civil money penalty against the Central State Bank,
Calera, Alabama, a state member bank.
The Central State Bank, without admitting to any
allegations, consented to the issuance of the order in
connection with its alleged violations of the Board's
regulations implementing the National Flood Insurance Act.
The order requires the Central State Bank to pay a
civil money penalty of $2,000, which will be remitted
to the Federal Emergency Management Agency for
deposit into the National Flood Mitigation Fund.
Announcements
The Federal Reserve Board on January 23, 2003,
announced the issuance of an order of assessment of
a civil money penalty against the La Salle State
Bank, La Salle, Illinois, a state member bank.
The La Salle State Bank, without admitting to any
allegations, consented to the issuance of the order in
connection with its alleged violations of the Board's
regulations implementing the National Flood Insurance Act.
The order requires the La Salle State Bank to pay a
civil money penalty of $3,150, which will be remitted
to the Federal Emergency Management Agency for
deposit into the National Flood Mitigation Fund.
The Federal Reserve Board on January 23, 2003,
announced the issuance of an order of assessment
of a civil money penalty against the Simmons First
Bank of Russellville, Russellville, Arkansas, a state
member bank.
The Simmons First Bank of Russellville, without
admitting to any allegations, consented to the issuance of the order in connection with its alleged
violations of the Board's regulations implementing
the National Flood Insurance Act.
The order requires the Simmons First Bank of
Russellville to pay a civil money penalty of $1,500,
which will be remitted to the Federal Emergency
Management Agency for deposit into the National
Flood Mitigation Fund.
The Federal Reserve Board on February 5, 2003,
announced the execution of a written agreement by
and between Premier Financial Bancorp, Inc., Huntington, West Virginia, and the Federal Reserve Bank
of Cleveland.
BOARD
STAFF
CHANGES
The Board of Governors has approved the promotion
of Stephanie Martin to associate general counsel in
the Monetary and Reserve Bank Affairs Section of
the Legal Division.
The section provides legal advice in support of the
Board's monetary policy, financial markets, and payment systems activities. Ms. Martin joined the Legal
Division in 1987 after receiving her J.D. from Harvard Law School. She was appointed to the official
staff in April 2001.
The Board of Governors has approved the appointment of Willene A. Johnson as an adviser in the
129
Division of International Finance. Ms. Johnson will
work on issues related to financial markets in
emerging-market economies.
Ms. Johnson served as U.S. Executive Director to
the African Development Bank in 2000-2001. She
worked at the Federal Reserve Bank of New York
from 1982 to 2000 in a variety of positions in the
international area. When she left the Bank in 2000,
Ms. Johnson was Vice President and Senior Officer
for Equal Employment Opportunity. Ms. Johnson has
a B.A. from Radcliffe College and a Ph.D. in economics from Columbia University.
The Board of Governors has approved the following changes of assignments in the Division of
International Finance. Dale Henderson will assume
the position of Senior Adviser. Jon Faust, Assistant
Director, will have direct oversight responsibility of
the Trade and Financial Studies Section. Mr. Faust
will relinquish his position as chief, Trade and Financial Studies Section.
Michael Leahy, Assistant Director, will have oversight responsibility of the Financial Markets Section
and the International Banking Section. Mr. Leahy
will relinquish his position as chief, Financial Markets Section.
NEW BOOKLET
AVAILABLE
ON IDENTITY
THEFT
The Federal Reserve Board on January 16, 2003,
announced the availability of a new brochure
designed to help consumers protect themselves
against identity theft.
"Identity Theft" was developed by the Federal
Reserve Bank of Boston and complements the Bank's
2001 issuance of the video, "Identity Theft: Protect
Yourself." Addressed to consumers, the booklet
describes the dangers posed by identity thieves, what
people can do to protect themselves, and what they
should do if they discover that their identities have
been stolen.
Identity theft is one of the fastest-growing crimes
in the United States, and the FBI estimates that
500,000 to 700,000 Americans are now victimized
every year. When one person's identification, which
can include name, social security number, or bank
and credit account numbers, is used by another to
open new accounts, take out loans, or apply for new
credit cards, the damage can take months to repair.
The "Identity Theft" brochure describes some
common sense precautions that consumers should
130
Federal Reserve Bulletin • March 2003
take to protect personal information, shows how to
monitor for signs of identity theft, and offers a guide
for consumers whose identities have been stolen. The
brochure also has useful contact information for the
national credit bureaus, federal agencies that can
provide help, and nonprofit organizations that advise
consumers and businesses.
The brochure is available, free of charge, from the
Federal Reserve Bank of Boston. To order a copy,
consumers may call 1-800-409-1333 or write to the
address below:
Identity Theft Brochure
Public and Community Affairs Department
Federal Reserve Bank of Boston
P.O. Box 2076
Boston, MA 02016-2076
The publication is also available on line, at the
Bank's public web site: http://www.bos.frb.org/
consumer/identity/index, htm.
PUBLICATION OF THE DECEMBER 2002 UPDATE
TO THE BANK
SUPERVISION
HOLDING
MANUAL
COMPANY
The December 2002 update to the Bank Holding
Company Supervision Manual, Supplement No. 23,
has been published and is now available. The Manual
comprises the Federal Reserve System's regulatory,
supervisory, and inspection guidance for bank holding companies. The new supplement includes the
following subjects:
1. Capital Adequacy. The revised sections on the assessment of capital adequacy include various rule changes,
clarifying interpretations, an advisory, and other supervisory guidance. They include
a. A change to Regulation Y (12 CFR 225, appendix A) that was approved by the Board on November 8,
2001 (effective January 1, 2002) and issued in a joint
interagency press release dated November 29, 2001. The
revised rule addresses the risk-based capital treatment for
recourse obligations, residual interests (except creditenhancing I/Os), direct-credit substitutes, and senior subordinated securities in asset securitizations that expose banking organizations (including bank holding companies)
primarily to credit risk. New standards are added for the
treatment of residual interests, as well as a concentration
limit for credit-enhancing I/O strips. Credit ratings from
rating agencies and certain limited alternative-credit-rating
approaches are used to match more closely the risk-based
capital requirement for these banking organizations to
their relative risk of loss for certain positions in asset
securitizations.
b. A change to Regulation Y that was approved by
the Board on January 8, 2002 (effective April 1, 2002).
This revised rule established special minimum risk-based
capital requirements for equity investments in nonfinancial
companies. The requirements impose a series of marginal
capital charges on authorized covered equity investments
that increase with the level of a bank's overall exposure to
equity investments relative to its tier 1 capital. The highest
marginal capital charge requires a 25 percent deduction
from tier 1 capital for authorized covered investments that
aggregate more than 25 percent of a bank holding company's tier 1 capital. (See SR letter 02-4.)
c. The Board's approval of a limited risk-based capital change to Regulation Y on March 27, 2002, effective
July 1, 2002. (See the Federal Reserve's joint press release
of April 9, 2002, and its attachment.) The change lowered,
from 100 percent to 20 percent, the risk weight that is
applied to certain securities claims on, or guaranteed by, a
qualifying securities firm in the United States and in other
countries that are members of the Organization for Economic Cooperation and Development.
d. The May 17, 2002, interagency advisory on the
risk-based capital treatment of accrued interest receivables
(AIR) related to credit card securitizations. The AIR asset
typically represents a subordinated retained interest in the
transferred assets. The asset therefore meets the definition
of a "residual interest" that requires dollar-for-dollar capital, even if the amount exceeds the fully equivalent riskbased capital charge on the transferred assets under the
November 2001 Regulation Y amendment. When accounting under FAS 140, "Accounting for Transfers and Servicing of Financial Assets and the Extinguishment of Liabilities," for the securitization and sale of credit card
receivables, and in computing the gain or loss on sale, a
banking organization (seller) should report the AIR asset
on the date of transfer, at adjusted cost, based on its relative
fair (market) value. (See SR letters 02-12 and 02-22.)
e. The joint September 5, 2002, interagency interpretive guidance discussing the appropriate applications
of the November 2001, joint final rale on the treatment of
recourse obligations, direct-credit substitutes, and residual
interests in asset securitizations. The guidance addresses
the risk-based capital treatment for (1) split or partially
rated instruments, (2) nonqualification of corporate bonds
or other securities for the ratings-based approach,
(3) spread accounts that function as credit-enhancing
interest-only strips, (4) audits of internal credit risk rating
systems, and (5) cleanup calls. (See SR letter 02-16.)
f. The Federal Reserve's March 23, 2002, supervisory guidance on derivative contracts hedging trust
preferred stock as to the inclusion of such trust preferred
stock in tier 1 capital. In order for an issuing bank holding
company to include the stock in tier 1 capital, it must have
the ability to defer payments for at least 20 consecutive
quarters without giving rise to an event of default. Such
a deferral feature, which typically is cumulative in trust
preferred stock, is essential in a tier 1 instrument because it
allows the issuer to conserve its cash resources at a time
when its financial condition is deteriorating. Issues of trust
preferred stock may not be included in tier 1 capital if they
are covered by a derivative contract that defeats the cashconserving purpose of the deferral mechanism on the trust
preferred stock. (See SR letter 02-10.)
Announcements
g. The revised Regulation Y (12 CFR 225, appendix D) that was approved by the Board on November 8,
2001 (effective January 1, 2002), which amended the
tier 1 leverage measure of the capital adequacy guidelines
for bank holding companies for agreements involving
recourse, direct-credit substitutes, and residual interests.
Also included is the Regulation Y revision for nonfinancial
equity investments, approved by the Board on January 7,
2002 (effective April 1, 2002). (See the January 8, 2002,
joint interagency press release and SR letter 02-4.)
2. Asset Securitization. This revised section addresses
the following issues:
a. The asset securitization process and credit enhancements. The guidance is expanded and also includes a
general discussion of the November 2001 changes to the
risk-based capital rule for bank holding companies in
Regulation Y. The revised rule provides for a multilevel,
ratings-based approach for agreements involving recourse,
direct credit substitutes, and residual interests.
b. Implicit recourse provided to asset securitizations. The interagency guidance, issued May 23, 2002, on
implicit recourse is addressed. Implicit recourse occurs
when a banking organization (including a bank holding
company) provides post-sale credit support beyond its
contractual obligation to one or more of its securitizations.
Implicit recourse demonstrates that the securitizing banking organization is re-assuming risk associated with the
securitized asset—risk that it initially transferred to the
marketplace. Illustrative examples are provided and several supervisory actions are discussed that the Federal
Reserve may take upon a determination that a banking
organization has provided implicit recourse. (See SR letter
02-15.)
c. Covenants in asset-securitization contracts that are
linked to supervisory thresholds or adverse supervisory
actions that are triggers for early amortization events or
the transfer of servicing. An interagency advisory, dated
May 23, 2002, discusses these covenants, which are considered unsafe and unsound banking practices that undermine the objective of supervisory actions. A banking organization's board of directors and senior management are
encouraged to amend, modify, or remove these types of
covenants in existing transactions. Such covenants could
create or exacerbate any liquidity and earnings problems
for a banking organization, possibly leading to a further
deterioration in its financial condition. (See SR letter
02-14.)
3. BHC surveillance program. The discussion on the
Federal Reserve System's surveillance program is amended
so that it applies only to those bank holding companies that
have $1 billion or more in consolidated assets. The section
recognizes the separate surveillance program for BHCs
with consolidated assets of less than $1 billion. (See SR letter 02-01.)
4. International-country risk. The country risk section
is substantially revised to include the February 22, 2002,
interagency supervisory and examination guidance on an
effective country-risk management process for banking
organizations (including bank holding companies). Country risk is the risk that economic, social, or political conditions in a foreign country might adversely affect an organization's financial condition, primarily through impaired
credit quality or transfer risk (a subset of country risk). The
131
examiner's responsibilities are discussed with regard to
ensuring that a banking organization's management of
country risks is appropriately addressed during the bank
holding company inspection process. Inspection objectives
and procedures are included. (See SR letter 02-5.)
5. Formal corrective actions. Various statutory provisions are discussed in a revised section on formal corrective actions, including actions that must be taken by the
Federal Reserve. Also discussed are the Federal Reserve's
supervisory concerns and guidance that focus on the
FDIC's regulations on indemnification agreements and
payments. (See SR letter 02-17.)
6. Allowance for loan and lease losses (ALLL). A new
section contains supervisory guidance on ALLL methodologies and documentation practices. (See the July 2, 2001,
FFIEC policy statement.) Although this policy statement,
by its terms, applies only to federally insured depository
institutions, the Federal Reserve believes the guidance it
contains is broadly applicable to bank holding companies.
A banking organization's board of directors is responsible
for ensuring that controls are in place to determine the
appropriate level of the ALLL. The banking organization
should maintain and support the ALLL with documentation that is consistent with its stated policies and procedures, generally accepted accounting principles (GAAP),
and applicable supervisory guidance. The ALLL methodology must be a thorough, disciplined, and consistently
applied process that incorporates management's current
judgment about the credit quality of the loan portfolio. (See
SR letter 01-17.)
7. Supplemental subprime-lending interagency guidance. The subprime-lending section was revised to include
the January 2001 guidance that is directed primarily to
banking organizations that have subprime-lending programs that equal or exceed 25 percent of tier 1 regulatory
capital. Banking organizations are expected to recognize
that the elevated levels of credit and other risks arising
from these activities require more intensive risk management and, often, additional capital. Questions and answers
pertaining to the January 2001 guidance are included in an
appendix. Revised inspection objectives and procedures
are provided. (See SR letter 01-4.)
A more detailed summary of changes is included
with the update package. The Manual and updates,
including pricing information, are available from
Publications Fulfillment, Mail Stop 127, Board of
Governors of the Federal Reserve System, Washington, DC 20551 (or charge by facsimile: 202728-5886). The Manual is also available on the
Board's public web site at www.federalreserve.gov/
boarddocs/supmanual/.
DISCONTINUANCE
OF STATISTICAL
TABLE
3.21
Publication of table 3.21, "Claims on Foreign Countries Held by U.S. and Foreign Offices of U.S.
Banks," will be discontinued in the Federal Reserve
Bulletin after the March 2003 issue. Table 3.21 was
132
Federal Reserve Bulletin • March 2003
originally published as a more timely report of a
geographic breakdown of assets of foreign branches
than the report released by the Federal Financial Institutions Examination Council (FFIEC),
FFIEC 009 Country Exposure Report, which once
lagged five months. Currently, the Country Exposure
Report from FFIEC is being published with a quarter
lag and has data that are more complete on country
risk exposure of U.S. banks. The data are available on
the FFIEC's web site: http://www.ffiec.gov/el6.htm,
or may be obtained from Publications Fulfillment,
Mail Stop 127, Board of Governors of the Federal
Reserve System, Washington, DC 20551, or call 202452-3244 or 3245.
REVISION
TO THE MONEY
STOCK
DATA
Measures of the money stock and components were
revised in January of this year to incorporate the
results of the annual seasonal factor review. Data in
table 1.10 and table 1.21 in the statistical appendix
to the Federal Reserve Bulletin reflect these changes
beginning with the March 2003 issue.
Seasonally adjusted measures of the money stock
and components incorporate revised seasonal factors
produced from not-seasonally-adjusted data through
December 2002. Monthly seasonal factors were estimated using the X-12-ARIMA procedure. The revisions to seasonal factors raised M2 and M3 growth
rates on average in the first half of 2002 while lowering them in the second half of the year.
Historical data, updated each week, are available
through the Federal Reserve's web site (http://
www.federalreserve.gov/releases/) with the H.6 statistical release. Current and historical data are also on
the Economic Bulletin Board of the U.S. Department
of Commerce. For paid electronic access to the Economic Bulletin Board, call STAT-USA at 1-800-7828872 or 202-482-1986.
1. Monthly seasonal factors used to construct Ml, January 2002-March 2004
Year and month
Currency
Other checkable deposits1
Nonbank travelers
checks
Demand deposits
Total
At banks
2002—January
February
March
April
May
June
July
August
September
October
November
December
.9961
.9985
1.0006
.9997
1.0009
1.0022
1.0034
1.0007
.9971
.9959
.9993
1.0052
1.0103
1.0133
1.0158
1.0190
1.0112
.9802
.9571
.9684
.9890
1.0042
1.0214
1.0173
1.0129
.9725
.9956
1.0130
.9782
.9876
.9961
.9910
.9908
.9854
1.0071
1.0689
1.0160
.9837
1.0099
1.0439
1.0014
1.0008
.9892
.9799
.9802
.9877
.9885
1.0216
1.0423
.9915
1.0048
1.0400
.9969
.9887
.9852
.9756
.9755
.9909
.9822
1.0292
2003—January
February
March
April
May
June
July
August
September
October
November
December
.9966
.9985
.9995
1.0002
1.0011
1.0019
1.0038
1.0019
.9968
.9963
.9985
1.0049
1.0095
1.0127
1.0155
1.0186
1.0103
.9792
.9573
.9701
.9889
1.0024
1.0213
1.0164
1.0161
.9722
.9962
1.0123
.9764
.9885
.9920
.9970
.9866
.9865
1.0096
1.0671
1.0156
.9830
1.0099
1.0428
1.0003
.9995
.9897
.9799
.9805
.9867
.9903
1.0233
1.0433
.9909
1.0038
1.0374
.9956
.9869
.9864
.9761
.9771
.9913
.9817
1.0308
.9966
.9987
.9990
1.0097
1.0130
1.0151
1.0160
.9756
.9926
1.0167
.9832
1.0099
1.0439
.9911
1.0030
2004—January
February
March
1. Seasonally adjusted other checkable deposits at thrift institutions are derived as the difference between total other checkable
deposits, seasonally adjusted, and seasonally adjusted other checkable deposits at commercial banks.
Announcements
133
2. Monthly seasonal factors used to construct M2 and M3, January 2002-March 2004
Savings and
MMDA
deposits1
Smalldenomination
time deposits'
Largedenomination
time deposits1
2002—January
February
March
April
May
June
July
August
September
October
November
December
.9964
.9951
1.0061
1.0112
.9951
.9978
.9944
.9964
.9983
.9978
1.0065
1.0061
1.0008
1.0003
.9987
.9981
.9984
.9981
.9991
1.0004
2003—January
February
March
April
May
June
July
August
September
October
November
December
2004—January
February
March
Year and month
Money market mutual funds
RPs
Eurodollars
1.0309
1.0303
1.0197
.9974
.9957
.9884
.9813
.9828
.9671
.9799
1.0033
1.0225
1.0071
1.0232
1.0115
.9903
1.0140
1.0176
1.0024
.9936
.9731
.9712
.9894
1.0038
1.0040
1.0181
1.0201
1.0178
1.0123
.9953
.9849
.9827
.9865
.9842
.9975
1.0027
1.0086
1.0123
1.0189
1.0211
.9863
.9849
.9902
.9959
.9913
.9942
.9969
1.0016
1.0311
1.0318
1.0186
.9975
.9947
.9888
.9812
.9824
.9681
.9810
1.0032
1.0216
1.0077
1.0235
1.0123
.9923
1.0144
1.0178
1.0030
.9930
.9711
.9710
.9887
1.0031
1.0039
1.0157
1.0174
1.0148
1.0079
.9933
.9862
.9852
.9899
.9893
1.0007
1.0035
1.0078
1.0117
1.0177
1.0316
1.0325
1.0184
1.0083
1.0240
1.0131
1.0035
1.0125
1.0138
In M2
In M3 only
1.0011
.9935
.9963
.9982
.9992
1.0086
1.0069
.9999
.9968
1.0004
1.0031
1.0031
.9976
1.0090
1.0130
1.0206
1.0226
.9871
.9852
.9886
.9944
.9909
.9936
.9958
1.0016
.9978
.9948
1.0053
1.0115
.9950
.9954
.9930
.9963
.9980
.9987
1.0073
1.0079
1.0003
.9998
.9986
.9983
.9988
.9988
.9996
1.0007
1.0010
1.0013
1.0018
1.0008
.9917
.9945
.9969
.9979
1.0084
1.0066
.9998
.9985
1.0014
1.0062
1.0045
.9972
.9993
.9946
1.0040
.9999
.9995
.9988
.9903
.9931
.9961
1.0011
1.0016
1.0024
1. Seasonal factors are applied to deposit data at both commercial banks and thrift institutions.
3. Weekly seasonal factors used to construct Ml, December 2, 2002-April 5, 2004
Week ending
Currency
Other checkable deposits1
Nonbank travelers
checks
Demand deposits
Total
At banks
—December
2
9
16
23
30
1.0005
1.0007
1.0017
1.0098
1.0101
1.0266
1.0227
1.0189
1.0150
1.0113
1.1175
.9782
1.0358
1.0839
1.1586
1.0340
.9929
.9877
1.0328
1.0670
1.0298
.9704
.9825
1.0560
1.1094
—January
6
13
20
27
1.0039
.9977
.9958
.9929
1.0075
1.0085
1.0096
1.0106
1.0589
1.0102
1.0057
.9984
1.0414
1.0073
1.0134
1.0094
1.0473
1.0094
1.0512
1.0680
February
3
10
17
24
.9942
.9992
1.0005
.9976
1.0117
1.0122
1.0127
1.0132
1.0165
.9393
.9738
.9762
1.0107
.9705
.9662
.9856
1.0402
.9736
.9746
.9994
March
3
10
17
24
31
.9985
1.0011
.9992
.9978
.9987
1.0136
1.0145
1.0153
1.0161
1.0169
.9871
.9408
.9869
.9981
1.0641
1.0087
.9910
.9929
1.0159
1.0405
.9983
.9654
.9795
1.0268
1.0493
April
7
14
21
28
1.0036
1.0024
.9993
.9975
1.0175
1.0182
1.0188
1.0195
.9650
.9991
1.0401
1.0424
1.0364
1.0258
1.0597
1.0536
1.0029
1.0119
1.0624
1.0794
May
5
12
19
26
1.0013
1.0019
.9996
1.0014
1.0201
1.0152
1.0103
1.0055
.9776
.9314
.9722
.9867
1.0144
.9807
.9895
1.0012
.9927
.9694
.9904
1.0134
June
2
9
16
23
30
.9998
1.0029
1.0017
1.0010
1.0016
1.0007
.9913
.9822
.9732
.9644
1.0460
.9381
.9748
.9816
1.0443
1.0310
.9889
.9823
.9982
1.0211
1.0213
.9503
.9557
1.0017
1.0335
July
7
14
21
28
1.0083
1.0044
1.0033
1.0015
.9618
.9592
.9566
.9541
.9669
.9632
.9990
1.0351
.9920
.9696
.9867
1.0034
.9654
.9619
.9909
1.0254
134
Federal Reserve Bulletin • March 2003
3.—Continued
Week ending
August
Currency
Nonbank travelers
checks
Other checkable deposits1
Demand deposits
Total
At banks
4
11
18
25
1.0043
1.0047
1.0014
.9976
.9515
.9601
.9690
.9779
.9698
.9298
.9869
1.0257
.9982
.9539
.9627
.9833
.9765
.9358
.9579
1.0005
September 1
8
15
22
29
1.0005
1.0009
.9977
.9950
.9935
.9871
.9878
.9886
.9893
.9900
1.0846
.9445
.9554
.9767
1.0595
1.0176
.9788
.9638
.9723
1.0001
1.0208
.9616
.9478
.9751
1.0179
6
13
20
27
.9978
.9987
.9964
.9941
.9908
.9969
1.0032
1.0095
.9331
.9609
.9927
1.0366
.9799
.9576
.9837
1.0049
.9693
.9577
.9912
1.0289
November 3
10
17
24
.9948
.9993
.9974
.9971
1.0159
1.0183
1.0208
1.0232
1.0239
.9257
.9795
1.0216
1.0244
.9629
.9602
.9943
1.0160
.9417
.9523
1.0020
1
8
15
22
29
1.0007
1.0012
1.0027
1.0084
1.0096
1.0257
1.0221
1.0185
1.0149
1.0113
1.1196
.9773
1.0159
1.0921
1.1688
1.0355
.9963
.9789
1.0304
1.0733
1.0241
.9703
.9771
1.0523
1.1078
5
12
19
26
1.0046
.9979
.9954
.9922
1.0077
1.0087
1.0097
1.0107
1.0701
1.0015
.9995
1.0042
1.0539
1.0086
1.0090
1.0078
1.0722
1.0112
1.0401
1.0612
February
2
9
16
23
.9928
.9991
1.0003
.9985
1.0117
1.0123
1.0128
1.0134
1.0332
.9524
.9692
.9684
1.0178
.9799
.9620
.9796
1.0466
.9876
.9757
.9863
March
1
8
15
22
29
.9979
1.0018
.9998
.9985
.9974
1.0140
1.0144
1.0148
1.0153
1.0157
.9974
.9488
.9781
.9894
1.0465
1.0056
.9960
.9870
1.0076
1.0377
1.0020
.9755
.9682
1.0078
1.0487
April
5
1.0010
1.0162
.9827
1.0378
1.0294
October
December
2004—January
1. Seasonally adjusted other checkable deposits at thrift institutions are derived as the difference between total other checkable
deposits, seasonally adjusted, and seasonally adjusted other checkable deposits at commercial banks.
4. Weekly seasonal factors used to construct M2 and M3, December 2, 2002-April 5, 2004
Savings and
MMDA
deposits1
Smalldenomination
time deposits1
Largedenomination
time deposits1
2002—December 2
9
16
23
30
.9972
1.0192
1.0198
.9989
.9869
1.0021
1.0018
1.0013
1.0006
1.0005
2003—January
6
13
20
27
1.0196
1.0133
.9979
.9754
February
3
10
17
24
March
April
Week ending
Money market mutual funds
RPs
Eurodollars
1.0139
1.0252
1.0361
1.0238
1.0117
.9890
1.0040
1.0064
1.0052
1.0054
1.0035
.9937
.9970
.9983
1.0200
.9933
1.0113
1.0144
1.0130
.9907
1.0331
1.0455
1.0491
.9926
1.0062
1.0076
1.0145
1.0148
.9995
1.0010
1.0032
.9915
.9961
.9958
.9923
1.0097
1.0123
1.0122
1.0134
1.0319
1.0350
1.0333
1.0337
1.0213
1.0290
1.0263
1.0178
1.0014
1.0083
1.0187
1.0241
.9994
.9989
.9987
.9984
.9983
.9951
.9982
.9935
.9946
1.0021
1.0122
1.0184
1.0186
1.0208
1.0205
1.0204
1.0261
1.0211
1.0193
1.0070
1.0210
1.0232
1.0170
1.0138
.9914
1.0194
1.0082
1.0109
1.0229
1.0268
.9991
.9985
.9979
.9976
1.0038
.9998
.9935
.9942
1.0261
1.0326
1.0249
1.0097
.9966
1.0075
.9939
.9950
.9869
.9922
.9874
.9985
1.0163
1.0087
1.0110
1.0245
In M2
In M3 only
.9969
.9973
1.0027
1.0002
.9942
.9990
1.0030
1.0046
1.0026
.9984
1.0016
1.0009
1.0001
.9991
.9917
.9955
.9915
.9885
.9814
1.0029
.9994
.9880
.9995
.9999
1.0000
.9997
3
10
17
24
31
.9950
1.0149
1.0113
.9956
.9968
7
14
21
28
1.0313
1.0296
1.0140
.9846
Announcements
135
4.—Continued
Week ending
Savings and
MMDA
deposits1
Smalldenomination
time deposits1
Largedenomination
time deposits1
Money market mutual funds
In M2
In M3 only
RPs
Eurodollars
May
5
12
19
26
1.0035
1.0060
.9953
.9802
.9983
.9988
.9988
.9990
.9981
1.0045
1.0113
1.0126
.9900
.9879
.9853
.9854
.9865
.9965
.9974
1.0003
1.0077
1.0150
1.0079
1.0175
1.0111
.9992
1.0053
1.0136
June
2
9
16
23
30
.9842
1.0099
1.0075
.9848
.9776
.9990
.9991
.9988
.9985
.9989
1.0144
1.0067
1.0055
1.0108
1.0011
.9833
.9859
.9872
.9857
.9814
.9889
.9969
.9949
.9868
.9767
1.0252
1.0264
1.0212
1.0120
1.0097
1.0123
.9979
.9882
.9848
.9966
July
7
14
21
28
1.0105
1.0044
.9908
.9766
.9998
.9995
.9995
.9996
.9981
.9995
.9998
1.0014
.9830
.9912
.9923
.9935
.9718
.9855
.9848
.9859
1.0008
1.0001
1.0027
1.0065
.9915
.9807
.9861
.9879
August
4
11
18
25
1.0024
1.0066
.9984
.9834
1.0001
1.0005
1.0007
1.0008
1.0011
1.0005
.9974
.9957
.9919
.9962
.9968
.9982
.9734
.9830
.9827
.9891
1.0071
1.0100
.9896
.9815
.9834
.9763
.9774
.9870
September 1
8
15
22
29
.9819
1.0137
1.0129
.9914
.9752
1.0011
1.0014
1.0011
1.0007
1.0008
.9990
1.0020
1.0018
.9986
1.0026
.9945
.9926
.9946
.9913
.9868
.9794
.9686
.9743
.9675
.9612
.9814
.9790
.9739
.9721
.9604
1.0041
.9821
.9892
.9893
.9982
October
6
13
20
27
1.0103
1.0070
1.0006
.9834
1.0020
1.0018
1.0013
1.0005
1.0081
1.0107
1.0040
1.0029
.9862
.9943
.9984
.9973
.9629
.9824
.9847
.9909
.9545
.9661
.9717
.9801
.9829
.9867
.9830
.9980
November 3
10
17
24
.9952
1.0164
1.0163
.9987
1.0010
1.0017
1.0019
1.0020
1.0048
1.0078
1.0070
1.0046
.9933
.9952
.9955
1.0002
.9814
.9953
1.0045
1.0119
.9868
.9963
.9854
.9845
.9989
.9942
.9992
1.0048
December
1
8
15
22
29
.9988
1.0194
1.0171
1.0064
.9938
1.0019
1.0015
1.0009
1.0002
1.0002
.9975
.9967
1.0007
.9995
.9938
.9985
1.0035
1.0052
1.0024
.9981
1.0117
1.0209
1.0327
1.0214
1.0183
.9894
1.0032
1.0063
1.0050
1.0038
1.0060
.9977
.9998
1.0006
1.0131
5
12
19
26
1.0203
1.0132
.9996
.9784
1.0006
1.0005
1.0001
.9994
.9902
.9944
.9915
.9861
.9931
1.0068
1.0135
1.0130
1.0018
1.0296
1.0411
1.0459
.9903
1.0051
1.0086
1.0150
1.0116
1.0001
1.0007
1.0045
February
2
9
16
23
.9804
1.0009
.9968
.9895
.9991
.9995
.9997
.9995
.9886
.9928
.9947
.9926
1.0089
1.0112
1.0113
1.0129
1.0311
1.0324
1.0329
1.0359
1.0212
1.0297
1.0283
1.0176
1.0030
.9997
1.0148
1.0175
March
1
8
15
22
29
.9940
1.0131
1.0125
1.0022
.9921
.9993
.9990
.9988
.9986
.9984
.9939
.9979
.9942
.9923
.9984
1.0123
1.0160
1.0175
1.0192
1.0176
1.0286
1.0244
1.0243
1.0187
1.0107
1.0206
1.0221
1.0187
1.0148
1.0032
1.0222
.9981
1.0097
1.0153
1.0304
April
5
1.0210
.9991
1.0023
1.0221
.9966
.9882
1.0150
2004—January
1. Seasonal factors are applied to deposit data at both commercial banks and thrift institutions.
136
Legal Developments
FINAL RULE—AMENDMENT
TO REGULATION
A
The Board of Governors is amending 12 C.F.R. Part 201,
its Regulation A and D (Extensions of Credit by Federal
Reserve Banks). The Board is publishing final amendments
to Regulation A to reflect its approval of the initial interest
rates for extensions of primary and secondary credit. The
amendments also correct a typographical error. These
amendments supersede the text of one section of the final
rule that the Board approved on October 31, 2002, and
published in the Federal Register on January 9, 2003. The
new primary and secondary credit rates do not indicate a
change in the stance of monetary policy.
Effective January 9, 2003, 12 C.F.R. Part 201 is amended
as follows:
Part 201—Extensions of Credit by Federal Reserve
Banks (Regulation A)
1. The authority citation for Part 201 is revised to read as
follows:
Authority: 12 U.S.C. 248(i)-(j), 343 et seq., 347a, 347b,
347c, 348 et seq., 357, 374, 374a, and 461.
2. Section 201.51(a) through (c) are revised to read as
follows:
Section 201.51—Interest rates applicable to credit
extended by a Federal Reserve Bank.
(a) Primary credit. The interest rates for primary credit
provided to depository institutions under section 201.4(a) are:
Federal Reserve Bank
Rate
Effective
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
(b) Secondary credit. The interest rates for secondary
credit provided to depository institutions under secion 201.4(b) are:
Federal Reserve Bank
Rate
Effective
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
2.75
2.75
2.75
2.75
2.75
2.75
2.75
2.75
2.75
2.75
2.75
2.75
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
January 9, 2003
(c) Seasonal credit. The rate for seasonal credit extended
to depository institutions under section 201.4(c) is a
flexible rate that takes into account rates on market
sources of funds.
FINAL RULE—AMENDMENT
TO REGULATION
H
The Board of Governors is amending 12 C.F.R. Part 208,
its Regulation H (Reporting and Disclosure Requirements
for State Member Banks with Securities Registered Under
the Securities Exchange Act of 1934). The final rule
reflects the amendments made to section 12(i) of the Securities Exchange Act of 1934 by the Sarbanes-Oxley Act of
2002. These amendments vest the Board with the authority
to administer and enforce several of the enhanced reporting, disclosure and corporate governance obligations
imposed by the Sarbanes-Oxley Act with respect to state
member banks that have a class of securities registered
under the Securities Exchange Act of 1934.
Effective April 1, 2003, 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, 24a, 36, 92a, 93a, 248(a), 248(c),
321-338a, 371d, 461, 481^186, 601, 611, 1814, 1816,
1818, 1820(d)(9), 1823(j), 1828(o), 1831, 1831o, 1831p-l,
183 lr-1, 1831w, 1831x, 1835a, 1843(1), 1882, 2901-2907,
3105, 3310, 3331-3351, and 3906-3909; 15 U.S.C. 78b,
781(b), 781(g), 781(i), 78o-4(c)(5), 78q, 78q-l, and 78w;
31 U.S.C. 5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106, and
4128.
137
2. Section 208.36(a) is revised to read as follows:
Section 208.36—Reporting requirements for State
member banks subject to the Securities Exchange Act
of 1934.
(a) Filing, disclosure and other requirements—
(1) General. Except as otherwise provided in this section, a member bank whose securities are subject
to registration pursuant to section 12(b) or section 12(g) of the Securities Exchange Act of 1934
(the 1934 Act) (15 U.S.C. 781(b) and (g)) shall
comply with the rules, regulations and forms
adopted by the Securities and Exchange Commission (Commission) pursuant to—
(i) Sections 10A(m), 12, 13, 14(a), 14(c), 14(d),
14(f) and 16 of the 1934 Act (15 U.S.C.
78f(m), 781, 78m, 78n(a), (c), (d) and (f), and
78p); and
(ii) Sections 302, 303, 304, 306, 401(b), 404, 406
and 407 of the Sarbanes-Oxley Act of 2002
(codified at 15 U.S.C. 7241, 7242, 7243, 7244,
7261,7262, 7264 and 7265).
(2) References to the Commission. Any references to
the "Securities and Exchange Commission" or the
"Commission" in the rules, regulations and forms
described in paragraph (a)(1) of this section shall
with respect to securities issued by member banks
be deemed to refer to the Board unless the context
otherwise requires.
FINAL RULE—AMENDMENT
TO REGULATION
K
The Board of Governors is amending 12 C.F.R. Part 211,
its Regulation K (International Banking Operations; International Lending Supervision). The amendments relate to
international lending by simplifying the discussion concerning the accounting for fees on international loans to
make the regulation consistent with generally accepted
accounting principles (GAAP).
Effective February 7, 2003, 12 C.F.R. Part 211 is
amended as follows:
Part 211—International Banking Operations
(Regulation K)
1. The authority citation for Part 211 continues to read as
follows:
Authority. 12 U.S.C. 221 et seq., 1818, 1835a, 1841 etseq.,
3101 etseq., 3109 etseq.
2. Sections 211.41 through 211.45 are revised to read as
follows:
Section 211.41—Authority, purpose, and scope.
(a) Authority. This subpart is issued by the Board of
Governors of the Federal Reserve System (Board)
under the authority of the International Lending Supervision Act of 1983 (Pub. L. 98-181, title IX, 97 Stat.
1153) (International Lending Supervision Act); the
Federal Reserve Act (12 U.S.C. 221 et seq.) (FRA),
and the Bank Holding Company Act of 1956, as
amended (12 U.S.C. 1841 et seq.) (BHC Act).
(b) Purpose and scope. This subpart is issued in furtherance of the purposes of the International Lending
Supervision Act. It applies to State banks that are
members of the Federal Reserve System (State member banks); corporations organized under section 25A
of the FRA (12 U.S.C. 611 through 631) (Edge Corporations); corporations operating subject to an agreement with the Board under section 25 of the FRA
(12 U.S.C. 601 through 604a) (Agreement Corporations); and bank holding companies (as defined in
section 2 of the BHC Act (12 U.S.C. 1841(a)) but not
including a bank holding company that is a foreign
banking organization as defined in section 211.21(o).
Section 211.42—Definitions.
For the purposes of this subpart:
(a) Administrative cost means those costs which are specifically identified with negotiating, processing and
consummating the loan. These costs include, but are
not necessarily limited to: legal fees; costs of preparing and processing loan documents; and an allocable
portion of salaries and related benefits of employees
engaged in the international lending function. No portion of supervisory and administrative expenses or
other indirect expenses such as occupancy and other
similar overhead costs shall be included.
(b) Banking institution means a State member bank; bank
holding company; Edge Corporation and Agreement
Corporation engaged in banking. Banking institution
does not include a foreign banking organization as
defined in section 211.21(o).
(c) Federal banking agencies means the Board of Governors of the Federal Reserve System, the Comptroller
of the Currency, and the Federal Deposit Insurance
Corporation.
(d) International assets means those assets required to be
included in banking institutions' Country Exposure
Report forms (FFIEC No. 009).
(e) International loan means a loan as defined in the
instructions to the Report of Condition and Income for
the respective banking institution (FFIEC Nos. 031
and 041) and made to a foreign government, or to an
individual, a corporation, or other entity not a citizen
of, resident in, or organized or incorporated in the
United States.
(f) Restructured international loan means a loan that
meets the following criteria:
138
Federal Reserve Bulletin • March 2003
(1) The borrower is unable to service the existing loan
according to its terms and is a resident of a foreign
country in which there is a generalized inability of
public and private sector obligors to meet their
external debt obligations on a timely basis because
of a lack of, or restraints on the availability of,
needed foreign exchange in the country; and
(2) The terms of the existing loan are amended to
reduce stated interest or extend the schedule of
payments; or
(3) A new loan is made to, or for the benefit of, the
borrower, enabling the borrower to service or refinance the existing debt.
(g) Transfer risk means the possibility that an asset cannot
be serviced in the currency of payment because of
a lack of, or restraints on the availability of, needed
foreign exchange in the country of the obligor.
Section 211.43—Allocated transfer risk reserve.
(a) Establishment of Allocated Transfer Risk Reserve. A
banking institution shall establish an allocated transfer
risk reserve (ATRR) for specified international assets
when required by the Board in accordance with this
section.
(b) Procedures and standards
(1) Joint agency determination. At least annually, the
Federal banking agencies shall determine jointly,
based on the standards set forth in paragraph (b)(2)
of this section, the following:
(i) Which international assets subject to transfer
risk warrant establishment of an ATRR;
(ii) The amount of the ATRR for the specified
assets; and
(iii) Whether an ATRR established for specified
assets may be reduced.
(2) Standards for requiring ATRR—
(i) Evaluation of assets. The Federal banking
agencies shall apply the following criteria in
determining whether an ATRR is required for
particular international assets:
(A) Whether the quality of a banking institution's assets has been impaired by a
protracted inability of public or private
obligors in a foreign country to make
payments on their external indebtedness
as indicated by such factors, among others, as whether:
(7) Such obligors have failed to make
full interest payments on external
indebtedness; or
(2) Such obligors have failed to comply
with the terms of any restructured
indebtedness; or
(3) A foreign country has failed to comply with any International Monetary
Fund or other suitable adjustment
program; or
(B) Whether no definite prospects exist for
the orderly restoration of debt service,
(ii) Determination of amount of ATRR.
(A) In determining the amount of the ATRR,
the Federal banking agencies shall
consider:
(7) The length of time the quality of the
asset has been impaired;
(2) Recent actions taken to restore debt
service capability;
(5) Prospects for restored asset quality;
and
(4) Such other factors as the Federal
banking agencies may consider relevant to the quality of the asset.
(B) The initial year's provision for the ATRR
shall be ten percent of the principal
amount of each specified international
asset, or such greater or lesser percentage
determined by the Federal banking agencies. Additional provision, if any, for
the ATRR in subsequent years shall be
fifteen percent of the principal amount of
each specified international asset, or such
greater or lesser percentage determined
by the Federal banking agencies.
(3) Board notification. Based on the joint agency
determinations under paragraph (b)(1) of this section, the Board shall notify each banking institution holding assets subject to an ATRR:
(i) Of the amount of the ATRR to be established
by the institution for specified international
assets; and
(ii) That an ATRR established for specified assets
may be reduced.
(c) Accounting
treatment of ATRR—
(1) Charge to current income. A banking institution
shall establish an ATRR by a charge to current
income and the amounts so charged shall not be
included in the banking institution's capital or
surplus.
(2) Separate accounting. A banking institution shall
account for an ATRR separately from the Allowance for Loan and Lease Losses, and shall deduct
the ATRR from "gross loans and leases" to arrive
at "net loans and leases." The ATRR must be
established for each asset subject to the ATRR in
the percentage amount specified.
(3) Consolidation. A banking institution shall establish an ATRR, as required, on a consolidated basis.
For banks, consolidation should be in accordance
with the procedures and tests of significance set
forth in the instructions for preparation of Consolidated Reports of Condition and Income
(FFIEC 031 and 041). For bank holding companies, the consolidation shall be in accordance with
the principles set forth in the "Instructions to
Consolidated Financial Statements for Bank Holding Companies" (Form F.R. Y-9C). Edge and
Legal Developments
Agreement corporations engaged in banking shall
report in accordance with instructions for preparation of the Report of Condition for Edge and
Agreement Corporations (Form F.R. 2886b).
(4) Alternative accounting treatment. A banking institution need not establish an ATRR if it writes
down in the period in which the ATRR is required,
or has written down in prior periods, the value of
the specified international assets in the requisite
amount for each such asset. For purposes of this
paragraph, international assets may be written
down by a charge to the Allowance for Loan and
Lease Losses or a reduction in the principal
amount of the asset by application of interest payments or other collections on the asset; provided,
that only those international assets that may be
charged to the Allowance for Loan and Lease
Losses pursuant to generally accepted accounting
principles may be written down by a charge to the
Allowance for Loan and Lease Losses. However,
the Allowance for Loan and Lease Losses must be
replenished in such amount necessary to restore it
to a level which adequately provides for the estimated losses inherent in the banking institution's
loan portfolio.
(5) Reduction of ATRR. A banking institution may
reduce an ATRR when notified by the Board or,
at any time, by writing down such amount of
the international asset for which the ATRR was
established.
Section 211.44—Reporting and disclosure of
international assets.
(a) Requirements.
(1) Pursuant to section 907(a) of the International
Lending Supervision Act of 1983 (Title IX, Pub.
L. 98-181, 97 Stat. 1153) (ILSA), a banking institution shall submit to the Board, at least quarterly,
information regarding the amounts and composition of its holdings of international assets.
(2) Pursuant to section 907(b) of ILSA, a banking
institution shall submit to the Board information
regarding concentrations in its holdings of international assets that are material in relation to total
assets and to capital of the institution, such information to be made publicly available by the Board
on request.
(b) Procedures. The format, content and reporting and
filing dates of the reports required under paragraph (a)
of this section shall be determined jointly by the Federal banking agencies. The requirements to be prescribed by the Federal banking agencies may include
changes to existing reporting forms (such as the Country Exposure Report, form FFIEC No. 009) or such
other requirements as the Federal banking agencies
deem appropriate. The Federal banking agencies also
may determine to exempt from the requirements of
139
paragraph (a) of this section banking institutions that,
in the Federal banking agencies' judgment, have
de minimis holdings of international assets,
(c) Reservation of authority. Nothing contained in this rule
shall preclude the Board from requiring from a banking institution such additional or more frequent information on the institution's holding of international
assets as the Board may consider necessary.
Section 211.45—Accounting for fees on international
loans.
(a) Restrictions on fees for restructured international
loans. No banking institution shall charge, in connection with the restructuring of an international loan, any
fee exceeding the administrative cost of the restructuring unless it amortizes the amount of the fee exceeding
the administrative cost over the effective life of the
loan.
(b) Accounting treatment. Subject to paragraph (a) of this
section, banking institutions shall account for fees
on international loans in accordance with generally
accepted accepted accounting principles.
ORDERS ISSUED
COMPANY
ACT
UNDER
BANK
HOLDING
Orders Issued Under Section 3 of the Bank Holding
Company Act
Royal Bank of Canada
Montreal, Canada
RBC Centura Banks, Inc., and
RBC Centura Bank,
Rocky Mount, North Carolina
Order Approving the Acquisition of a Bank Holding
Company, Merger of Depository Institutions, and
Establishment of Branches
Royal Bank of Canada ("RBC"), a foreign banking organization subject to the provisions of the Bank Holding Company Act ("BHC Act"), and its wholly owned subsidiary, RBC Centura Banks, Inc. ("RBC Centura"), have
requested the Board's approval under section 3 of the BHC
Act (12 U.S.C. § 1842) to acquire Admiralty Bancorp, Inc.
("Admiralty") and its wholly owned subsidiaiy, Admiralty
Bank, both in Palm Beach Gardens, Florida.1 RBC Centura
Bank ("RBC Bank"), RBC Centura's wholly owned subsidiary, has also requested the Board's approval under
1. RBC is treated as a financial holding company in accordance
with sections 225.90 and 225.91 of Regulation Y (12 C.F.R. 225.90225.91). Through its subsidiaries and affiliates, RBC engages in a
variety of nonbanking activities, including investment banking, asset
management, and mortgage lending.
140
Federal Reserve Bulletin • March 2003
section 18(c) of the Federal Deposit Insurance Act
(12 U.S.C. § 1828(c)) ("Bank Merger Act") to merge with
Admiralty Bank, with RBC Bank as the surviving entity.2
In addition, RBC Bank proposes to retain and operate
branches at the main and branch offices of Admiralty
Bank.3
Notice of the proposal, affording interested persons an
opportunity to comment, has been published in accordance
with the Bank Merger Act and the Board's Rules of Procedure (12 C.F.R. § 262.3(b)) in the Federal Register
(67 Federal Register 63,661 and 63,662 (2002)) and
locally. As required by the BHC Act and the Bank Merger
Act, reports on the competitive effects of the merger were
requested from the U.S. Attorney General and relevant
banking agencies. The time for filing comments has
expired, and the Board has considered the applications and
all comments received in light of the factors set forth in
section 3 of the BHC Act, the Bank Merger Act, and the
statutory provisions that govern the retention and operation
of interstate branches.
RBC, with total assets of $225.4 billion, is the largest
banking organization in Canada.4 RBC operates depository
institutions in Florida, Georgia, North Carolina, South
Carolina, and Virginia. RBC Centura's subsidiary commercial bank, RBC Bank, controls deposits of $20.8 million in
Florida, representing less than 1 percent of total deposits of
insured depository institutions in the state ("state deposits").5 Admiralty's subsidiary commercial bank, Admiralty
Bank, controls deposits of $527.0 million in Florida, representing less than 1 percent of state deposits. On consummation of the proposal, RBC Bank would become the 35th
largest depository institution in Florida, controlling deposits of approximately $547.8 million, representing less than
1 percent of state deposits.
Interstate Analysis
Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of such bank holding company if certain conditions
are met. For purposes of the BHC Act, the home state of
RBC Centura is North Carolina, and RBC Centura proposes to acquire a depository institution in Florida.6 Based
on a review of all the facts of record, including a review of
relevant state statutes, the Board finds that all conditions
2. The transaction would be effected through a series of steps.
Admiralty would merge with a newly created, wholly owned subsidiary of RBC, with Admiralty surviving. Admiralty then would merge
with and into RBC Bank. Immediately thereafter, Admiralty Bank
would merge with and into RBC Bank.
3. See 12 U.S.C. §§321 & 1831u. The Admiralty Bank branches to
be acquired by RBC Bank are listed in the Appendix.
4. Asset and national ranking data for RBC are as of December 31,
2001, and are based on the exchange rate then available.
5. Deposit and state ranking data are as of June 30, 2002, and
are adjusted to reflect mergers and acquisitions completed through
November 6, 2002. In this context, depository institutions include
commercial banks, savings banks, and savings associations.
6. 12 U.S.C. §1841(o)(4)(C).
for an interstate acquisition enumerated in section 3(d) are
met in this case.7 In light of all the facts of record, the
Board is permitted to approve the proposal under section 3(d) of the BHC Act.
Financial, Managerial, and Supervisory Considerations
The BHC Act and the Bank Merger Act require the Board
to consider the financial and managerial resources and
future prospects of the companies and banks involved in a
proposal and certain other supervisory factors. In assessing
the financial and managerial strength of RBC and its subsidiaries, the Board has reviewed information provided by
RBC, confidential supervisory and examination information, and publicly reported and other financial information.8 RBC's capital levels exceed the minimum levels that
would be required under the Basel Capital Accord, and its
capital levels are considered equivalent to the capital levels
that would be required of a U.S. banking organization.
Based on all the facts of record, the Board concludes that
the financial and managerial resources and future prospects
of the organizations involved in the proposal are consistent
with approval.9
7. RBC Centura is adequately capitalized and adequately managed,
as defined by applicable law. In addition, RBC Centura would control
less than 10 percent of the total amount of deposits of insured
depository institutions in the United States on consummation of the
proposal. See 12 U.S.C. § 1842(d)(1)(A) & (B), 1842(d)(2)(A) & (B).
RBC Centura also would control less than 30 percent of the total
deposits of insured depository institutions in Florida. Florida law
prohibits the interstate acquisition of a Florida bank that has been in
existence and continuously operating for three years or fewer. This
transaction would meet the minimum age requirements imposed by
Florida law. See Fla. Stat. Ann. §658.295(8).
8. The commenter alleged that an insurance company subsidiary of
RBC, Liberty Life Insurance Co. of Greenville, South Carolina ("Liberty Life"), discriminated against African-American clients by charging them higher premiums than white clients for industrial life insurance policies issued between 1905 and 1967. On August 23, 2002, the
Administrative Law Judge Division of the South Carolina Department
of Insurance ("S.C. Insurance Department") upheld the S.C. Insurance Department's determination that Liberty Life had engaged
in discriminatory pricing of its insurance premiums. RBC acquired
Liberty Life in November 2000, and the S.C. Insurance Department's
findings related to practices that occurred before RBC acquired Liberty Life. RBC currently has policies in place at Liberty Life designed
to prevent discrimination in pricing based on race or other prohibited
bases. Liberty Life has appealed the findings of the S.C. Insurance
Department. Although the Board has only limited authority to address
matters related to the insurance activities of regulated insurance
companies, the Board will continue to monitor this matter.
9. The commenter suggests, based on a general news article about
the ability of U.S. taxpayers to evade tax liability by using offshore
international banking accounts, that the availability of RBC accounts
in Guernsey, Channel Islands, reflects unfavorably on RBC's management. RBC has indicated that it maintains strict "source of funds"
guidelines and "know your customer" rules and advises clients of
RBC's international private banking group that they may be obligated
to declare income in their home countries and may be liable for tax in
those jurisdictions.
The commenter also submitted press accounts concerning a brokerage subsidiary, RBC Dain Rauscher Corp. ("Dain Rauscher"), discussing the decision by the Securities and Exchange Commission to
settle regulatory charges brought against Dain Rauscher in its capacity
as successor to Rauscher Pierce Refsnes, Inc. RBC acquired Dain
Legal Developments
Section 3 of the BHC Act also provides that the Board
may not approve an application involving a foreign banking organization unless it is "subject to comprehensive
supervision or regulation on a consolidated basis by the
appropriate authorities in the bank's home country." 10 The
home country supervisor of RBC is Canada's Office of the
Superintendent of Financial Institutions ("OSFI"), which
is responsible for the supervision and regulation of Canadian financial institutions.
In approving applications under the BHC Act, the Board
previously has determined that Canadian banks, including
RBC, were subject to comprehensive consolidated supervision by the OSFI.11 In this case, the Board finds that the
OSFI continues to supervise RBC in substantially the same
manner as it supervised Canadian banks at the time of
those previous determinations. Based on this finding and
all the facts of record, the Board concludes that RBC
continues to be subject to comprehensive supervision on a
consolidated basis by its home country supervisor.
In addition, section 3 of the BHC Act requires the Board
to determine that a foreign bank has provided adequate
assurances that it will make available to the Board such
information on its operations and activities and those of its
affiliates that the Board deems appropriate to determine
and enforce compliance with the BHC Act.12 The Board
has reviewed the restrictions on disclosure in relevant
jurisdictions in which RBC operates and has communicated with relevant government authorities concerning
access to information. In addition, RBC previously has
committed to make available to the Board such information on the operations of RBC and its affiliates that the
Board deems necessary to determine and enforce compliance with the BHC Act and other applicable federal law.
RBC also previously has committed to cooperate with the
Board to obtain any waivers or exemptions that may be
Rauscher in 2001, and the charges related to matters that occurred in
1993 and 1994. There are no facts of record to suggest that Dain
Rauscher engaged in the conduct that gave rise to the regulatory
action after RBC acquired it in 2001.
The commenter further requested that the Board consider media
reports discussing litigation that arose from a total return swap
agreement between RBC and Cooperatieve Centrale RaiffeisenBoerenleenbank B.A., and the subsequent indictment of three former
RBC employees for fraud. These matters also are in private litigation.
The Board will monitor the various judicial proceedings and has
supervisory authority under federal banking laws to require that RBC
take appropriate action based on the court findings.
10. 12 U.S.C. § 1842(c)(3)(B). Under Regulation Y, the Board uses
the standards enumerated in Regulation K to determine whether a
foreign bank that has submitted an application under section 3 of the
BHC Act is subject to consolidated home country supervision. See
12 C.F.R. 225.13(a)(4). Regulation K provides that a foreign bank will
be considered to be subject to comprehensive supervision or regulation on a consolidated basis if the Board determines that the bank
is supervised and regulated in such a manner that its home country
supervisor receives sufficient information on the worldwide operations
of the bank, including its relationship to affiliates, to assess the bank's
overall financial condition and its compliance with law and regulations. See 12 C.F.R. 211.24(c)(1).
11. See Royal Bank of Canada, 83 Federal Reserve Bulletin 442
(1997).
12. See, e.g., 12 U.S.C. § 1842(c)(3)(A).
141
necessary to enable RBC and its affiliates to make such
information available to the Board. In light of these commitments, the Board concludes that RBC has provided
adequate assurances of access to any appropriate information that the Board may request. Based on these and all
the facts of record, the Board concludes that the supervisory factors it is required to consider are consistent with
approval.
Competitive Considerations
As part of the Board's review under section 3 of the BHC
Act and the Bank Merger Act, the Board has considered
carefully the competitive effects of the proposal in light
of all the facts of record. RBC and Admiralty compete
directly in the Miami-Fort Lauderdale, Florida, banking
market ("Miami banking market").13 The Board has
reviewed the competitive effects of the proposal in this
banking market in light of all the facts of record, including
the number of competitors that would remain in the market, the relative share of total deposits in depository institutions in the market ("market deposits")14 controlled by
RBC and Admiralty, the concentration level of market
deposits and the increase in this level as measured by the
Herfindahl-Hirschman Index ("HHI") under the Department of Justice Merger Guidelines ("DOJ Guidelines"),
and other characteristics of the market.15
RBC operates an agency office in the Miami banking
market that does not accept insured deposits, and Admiralty operates a branch in the market, which opened August
2001, and controls deposits of $30.7 million, representing
less than 1 percent of market deposits. Consummation of
this proposal would not result in an appreciable increase
in the level of concentration of market deposits, and RBC
Bank would become the 78th largest depository institution
in the Miami banking market, with less than 1 percent of
market deposits.
The Department of Justice has reviewed the proposal
and advised the Board that consummation would not likely
have a significantly adverse effect on competition in any
relevant market. No banking agency has indicated that the
proposal raises competitive issues.
Based on all the facts of record, the Board concludes that
consummation of the proposal would not result in any
significantly adverse effects on competition or on the concentration of banking resources in the Miami banking
market or in any other relevant banking market.
Convenience and Needs Considerations
In acting on this proposal, the Board also must consider the
convenience and needs of the communities to be served
13. The Miami banking market is defined as Broward and Dade
Counties, Florida.
14. Market share data are as of June 30, 2002, and are based on
calculations in which the deposits of thrift institutions are included at
50 percent. See First Hawaiian, Inc., 77 Federal Reserve Bulletin
52(1991).
15. See DOJ Guidelines, 49 Federal Register 26,823 (1984).
142
Federal Reserve Bulletin • March 2003
and take into account the records of performance of the
relevant depository institutions under the Community Reinvestment Act (12 U.S.C. §2901 et seq.) ("CRA"). The
CRA requires the federal supervisory agencies to encourage financial institutions to help meet the credit needs of
local communities in which they operate, consistent with
safe and sound operation, and requires the appropriate
federal financial supervisory agency to take into account an
institution's record of meeting the credit needs of its entire
community, including low- and moderate-income ("LMI")
neighborhoods, in evaluating bank expansion proposals.
The Board has considered carefully the convenience and
needs factor and the CRA performance records of RBC
Bank and Admiralty Bank in light of all the facts of record,
including a public comment received on the effect of the
proposal on the communities to be served by the combined
organization.16
A. CRA Performance Evaluations
As provided in the CRA, the Board has evaluated the
convenience and needs factor in light of examinations by
the appropriate federal supervisors of the CRA performance records of RBC Bank and Admiralty Bank. An
institution's most recent CRA performance evaluation is
a particularly important consideration in the applications
process because it represents a detailed, on-site evaluation
of the institution's overall record of performance under the
CRA by its appropriate federal supervisor.17
RBC Bank received a "satisfactory" CRA rating at its
most recent CRA performance evaluation, as of March 4,
2002, from the Federal Reserve Bank of Richmond.18
Admiralty Bank also received a "satisfactory" CRA rating
at its most recent CRA performance evaluation, as of
July 6, 1998, from the Federal Reserve Bank of Atlanta.
Examiners found no violations of the substantive provisions of fair lending and consumer protection laws at either
institution and no evidence of prohibited discrimination or
other illegal credit practices.
B. RBC Bank's CRA Performance Record
1. Lending Test
Examiners rated RBC Bank "high satisfactory" under the
lending test for the review period in its most recent CRA
performance evaluation based on the bank's lending activity, distribution of loans, and community development
16. The commenter alleged, among other things, that RBC Bank
and RBC Mortgage engaged in disparate treatment of minority and
nonminority individuals in mortgage lending, based on data submitted
under the Home Mortgage Disclosure Act, 12 U.S.C. §2801 et seq.
("HMDA").
17. See Interagency Questions and Answers Regarding Community
Reinvestment, 66 Federal Register 36,620 and 36,639 (2001).
18. RBC and RBC Centura also control RBC Centura Card Bank,
Atlanta, Georgia, a credit card bank that has not been examined for
CRA performance since opening for business in July 2000.
lending.19 Examiners reported that RBC Bank served its
assessment areas by offering a variety of credit products,
including residential mortgage, home equity, consumer,
small business, and commercial loans.
Examiners noted that RBC Bank originated a substantial
majority of its loans, by number and dollar volume, to
businesses and consumers in its assessment areas and was
highly responsive to community credit needs. Examiners
also found that RBC Bank was an active lender relative
to its lending capacity and taking into account economic
conditions in the bank's assessment areas (as evidenced by
the bank's quarterly average loan-to-deposit ratio, which
consistently exceeded that of all banks headquartered in
metropolitan areas of North Carolina and of similar asset
size). Examiners commended RBC Bank for its lending
distribution by geographical and income levels, commenting favorably on the bank's small business and HMDA
lending penetration in particular. Examiners also found that
in most markets, small business and HMDA-reportable
loans accounted for the majority of the bank's loan portfolio. During the review period, RBC Bank extended more
than $2 billion in HMDA-reportable loans.
Examiners found that RBC Bank, in an effort to meet the
needs of its local communities, offered and participated in
assorted special loan programs to benefit LMI individuals
and LMI areas or to promote economic development.
Included among these loan programs were credit products
offered through the Federal Housing Administration
("FHA"), Department of Veterans Affairs ("VA"), and
Farm Service Housing and/or Rural Housing Service
("FSH/RHS").20 During the review period, RBC Bank
originated 1,069 FHA, VA, and FSH/RHS loans totaling $102.1 million. Examiners also found that RBC Bank
offered "Affordable Housing Program" ("AHP") loans
that provided as much as 100 percent financing and flexible
underwriting terms to certain borrowers who did not meet
the underwriting criteria necessary for the secondary market.21 During the review period, RBC Bank originated 751
AHP loans, totaling $56.4 million, to eligible borrowers.
Examiners concluded that RBC Bank extended a high
level of loans, approximately $22 million, for community
development purposes. The loans were used primarily to
provide housing for LMI individuals and to facilitate small
business development. Examiners observed that 72.3 percent of the qualified loans were made in North Carolina.22
19. The review period for RBC Bank's CRA evaluation was January 1, 2000, through December 31, 2001. During the review period,
RBC Bank's assessment areas included 16 Metropolitan Statistical
Areas ( " M S A s " ) and 13 non-MSAs. Full scope reviews were conducted in ten of the bank's assessment areas that together accounted
for a substantial portion of the bank's dollar volume.
20. Examiners also noted that RBC Bank continued to participate
in the Community Investment Corporation of North Carolina, which is
a statewide affordable housing loan consortium that provides longterm permanent financing for LMI multifamily housing developments.
21. The AHP offers home purchase loans to families whose
incomes do not exceed 80 percent to 100 percent of the H U D median
family income for the county of residence.
22. RBC Bank provided 33 community development loans totaling
$15.8 million in North Carolina during the review period, including
Legal Developments
143
Also, the bank entered a partnership with the Federal
Home Loan Bank of Atlanta and various community
groups to extend 208 loans to assist first-time homebuyers,
develop multifamily low-income housing, and rehabilitate
and rebuild low-income housing damaged by Hurricane
Floyd. Examiners commended RBC Bank for its commitment to its local market areas and for its willingness to
participate in flexible and somewhat complex credit transactions to benefit LMI borrowers and LMI areas.
Since its most recent performance evaluation, RBC Bank
reported that it has provided and committed approximately
$26.5 million in community development loans to finance
the creation of affordable housing for the benefit of LMI
families and LMI areas and for small business development in Virginia, Florida, Georgia, North Carolina, and
South Carolina. The funding includes projects in partnership with the Virginia Housing Development Authority,
the Self-Help Credit Union of North Carolina, Habitat for
Humanity, the North Carolina Institute for Minority Economic Development, and the Florida Community Loan
Fund.23
RBC Bank also stated that it has taken several other
measures to provide economic and community support to
projects and programs that assist LMI and minority populations. RBC Bank, along with other lenders, has coordinated
an effort to organize and fund an eastern North Carolina
regional economic development not-for-profit organization
known as the Foundation for Renewal for Eastern North
Carolina ("FOR ENC"). FOR ENC will establish a venture and incentive fund to provide monetary support for
community development projects in the region. In addition, RBC Bank reported that its Community Development
Manager and Compliance Manager have met with community organizations in Atlanta to evaluate and develop
a CRA strategic plan for the Atlanta market. The plan
resulted in the creation of production goals for LMI and
minority mortgage customers. RBC Bank also represented
that its commercial lending officers have established relationships with affordable housing developers in the Atlanta
market.
2. Investment Test
RBC Bank was rated "high satisfactory" at its most recent
performance evaluation for its provision of retail banking
and community development services. Examiners found
that RBC Bank's delivery systems, branch locations, and
hours of operation were readily accessible to all portions
of its assessment areas. Examiners observed that approximately 19 percent of the bank's 242 branches were in LMI
areas. In addition, examiners found that bank personnel
provided support to community development organizations, which, in turn, offered community development services throughout the bank's assessment areas. One RBC
Bank officer served on the advisory committee of the North
Carolina Community College System's Small Business
Center Network ("SBNC"), which operates 58 offices
throughout North Carolina. The SBNC promotes microenterprise development through economic and workforce
development programs. As previously noted, RBC Bank
also is a majority owner of a small business investment
corporation that provides capital and management assistance to qualifying small businesses.
Examiners rated RBC Bank "high satisfactory" for its
record of responding to community development needs
through investments. Examiners noted that RBC Bank
made significant investments in low-income housing tax
credit limited partnerships, equity housing funds, and lowincome mortgage pools. During the review period, RBC
Bank committed to participate in qualified investments
totaling $50.8 million and funded $27.2 million of that
commitment. Examiners also noted that during the review
period, RBC Bank supported various community development organizations, whose operations assist LMI individuals and areas or support small business development,
through contributions of more than $341,000.
RBC Bank has represented that since its most recent
performance evaluation, it has committed an additional
$18.7 million in qualified investments for community
development purposes. Such investments include a $25,000
donation to the Rocky Mount Habitat for Humanity; up to
$8 million in low-income housing tax credit investments
through the Community Affordable Housing Equity Corporation syndicate, which operates in Virginia, North Carolina, South Carolina, and Georgia; a purchase of $10 million in LMI mortgages throughout the bank's Atlanta
assessment area; and a $200,000 grant to the East Lake
Community Foundation to renovate Atlanta's East Lake
neighborhood.
one loan of 2.2 million in Greene County to build an LMI housing
facility.
23. RBC Bank received a Bank Enterprise Award from the Department of the Treasury for a $5 million loan that the bank originated to
the Self-Help Credit Union of North Carolina, a community development financial institution. RBC Bank donated the award of $550,000
to the credit union to provide financing for additional low-income
housing in North Carolina.
3. Service Test
C. Admiralty Bank's CRA Performance Record
As previously noted, Admiralty Bank received a satisfactory CRA rating at its most recent performance evaluation.24 Examiners determined that Admiralty Bank's loanto-deposit ratio was reasonable given the bank's size and
assessment area credit needs. Examiners also found that
the majority of consumer loans originated during the
review period were made to individuals inside the bank's
24. The review period for Admiralty Bank's CRA evaluation was
October 1996 through June 15, 1998. Admiralty Bank's assessment
area included 28 census tracts in the northern part of the West Palm
Beach-Boca Raton MSA. Examiners noted that although the bank's
assessment area contains no low-income census tracts, the bank did
not unreasonably exclude any LMI areas from the assessment area.
144
Federal Reserve Bulletin • March 2003
assessment area.25 Examiners noted that Admiralty Bank's
distribution of business and consumer loans inside the
assessment area reflected effective loan penetration to businesses and individuals of different income levels.
Examiners found that Admiralty Bank is primarily a
commercial lender with particular expertise in originating
business loans guaranteed by the Small Business Administration ("SBA"). Approximately 88 percent of the loans
originated by Admiralty Bank during the exam period were
commercial loans. Although only 42 percent of the sample
of business loans reviewed by examiners were originated
to businesses in the bank's assessment area, examiners
found that the availability of SBA loan products was sufficient to meet demand in and around the assessment area.
Examiners noted that the loans originated to businesses
outside the assessment area were almost all SBA loans and
were distributed over an extended area of the southeast
Florida region.
RBC Bank stated that it intends to apply its CRA compliance policies to Admiralty Bank after the merger. RBC
Bank has represented that it intends to evaluate the Florida
market that Admiralty Bank serves and to visit local organizations to evaluate community development opportunities. The resulting evaluation would become the basis for
the RBC Bank plan for CRA compliance in the markets
that Admiralty Bank now serves.
D. HMDA
RBC recently acquired Eagle Bancshares, Inc. and its
thrift subsidiary, Tucker Federal Bank, both in Tucker,
Georgia.26 In evaluating that proposal, the Board considered comments filed by the commenter about RBC Bank's
HMDA data that were substantially the same as the comments submitted in this case.27 In considering this earlier
proposal, the Board reviewed extensively RBC Bank's and
RBC Mortgage's 2000 and 2001 HMDA data and assessed
each institution's performance in lending to minority applicants and to applicants in LMI census tracts in eleven
markets. In connection with RBC's current proposal, the
Board reviewed its previous HMDA analysis and analyzed
RBC's performance in additional markets.
The Board is concerned when the record of an institution
indicates disparities in lending and believes that all banks
are obligated to ensure that their lending practices are
based on criteria that ensure not only safe and sound
lending but also equal access to credit by creditworthy
25. Examiners concluded that the 47 consumer loans originated by
the Admiralty Bank since its previous performance evaluation constituted a significant volume of consumer loans for a bank its size.
26. See Royal Bank of Canada, 88 Federal Reserve Bulletin 385
(2002).
27. The commenter noted that RBC Bank's denial disparity ratios,
which compare the denial rate for minority loan applicants with that
for nonminority applicants—particularly for African-American
applicants in the Rocky Mount, Greensboro, and Charlotte MSAs, all
in North Carolina, and the Norfolk, Virginia MSA compared unfavorably with those of the HMDA-reporting lenders in the aggregate in
those four MSAs. Aggregate data are based on all lenders reporting
HMDA data in a particular market.
applicants regardless of their race, gender or national
origin. The Board recognizes, however, that HMDA data
alone provide an incomplete measure of an institution's
lending in its community because these data cover only a
few categories of housing- related lending. HMDA data,
moreover, provide only limited information about the covered loans.28 HMDA data, therefore, have limitations that
make them an inadequate basis, absent other information,
for concluding that an institution has not assisted adequately in meeting its community's credit needs or has
engaged in illegal lending discrimination.
Because of the limitations of HMDA data, the Board has
considered these data carefully in light of other information, including examination reports that provide on-site
evaluation of RBC Bank's compliance with fair lending
laws and the overall lending and community development
activities of RBC Bank.29 The Board also has considered,
and hereby adopts, the findings and explanations discussed
in its review of these matters in the Tucker Federal Bank
proposal.30
As noted, examiners found no evidence of prohibited
discriminatory practices or of substantive violations of fair
lending laws at RBC Bank's most recent performance
evaluation. The Board also notes that the lower percentages of mortgage loans to African Americans and in predominantly minority census tracts by RBC Bank appear to
reflect a lower percentage of applications received by the
bank from these individuals and areas as compared with
the aggregate. RBC Bank's approval rate for such loans
approximated or exceeded that of the aggregate in all four
markets reviewed.
As noted above, RBC Bank has in place a number of
programs designed to help meet the credit needs of its
28. The data do not, for example, account for the possibility that an
institution's outreach efforts may attract a larger proportion of marginally qualified applicants than other institutions attract and do not
provide a basis for independent assessment of whether an applicant
who was denied credit was, in fact, creditworthy. Credit history
problems and excessive debt levels relative to income (reasons most
frequently cited for a credit denial) are not available from HMDA
data.
29. The commenter expressed concern about the apparent increase
in the denial disparity ratios for African-American and Latino applicants to RBC Mortgage in the St. Louis, Missouri, MSA, and the
apparent disparity in the Chicago, Illinois, MSA in originations of
loans to African-American and nonminority applicants. In addition,
the commenter questioned whether RBC Mortgage is complying with
the requirements of HMDA. The commenter requested on-site examinations of and enforcement actions against RBC Bank and RBC
Mortgage to address these HMDA-related issues.
RBC has provided information about the policies and procedures it
has implemented to comply with fair lending laws and HMDA and to
ensure accurate HMDA reporting. The Board notes that the Federal
Reserve Bank of Richmond concluded an on-site review of RBC
Bank's record of compliance with fair lending laws on March 4, 2002.
The examiners' findings did not substantiate the commenter's allegations about the bank's lending practices. With respect to RBC Mortgage, the Board has forwarded the commenter's letter to the Department of Housing and Urban Development and the Federal Trade
Commission, the agencies responsible for enforcing compliance with
fair lending laws by nondepository institutions.
30. See Royal Bank of Canada, 88 Federal Reserve Bulletin 385
(2002).
Legal Developments
communities and examiners found that RBC Bank has
engaged in substantial lending throughout its assessment
areas. The HMD A data also reflected overall improvements in the number of mortgage loans originated by the
bank to African Americans, LMI individuals, and to individuals residing in predominantly minority and LMI census tracts during 2000 and 2001. In addition, the applicant
has implemented a number of programs and made efforts
to improve its outreach efforts to minorities and to LMI
individuals and LMI areas.
E. Conclusion on Convenience and Needs
Considerations
In reviewing the effect of the proposal on the convenience
and needs of the communities to be served, the Board has
considered carefully all the facts of record, including the
comments received and the responses to the comments,
evaluations of the performance of RBC Bank and Admiralty Bank under the CRA, the relevant HMD A data for
RBC Bank and RBC Mortgage, other information provided
by RBC Bank, and confidential supervisory information.
The Board also has reviewed information submitted by
RBC Bank concerning its CRA performance and its activities to help ensure compliance with fair lending laws since
its last performance evaluation.
The record indicates that RBC Bank has performed
adequately under the CRA. Based on all the facts of record,
and for the reasons discussed above, the Board concludes
that considerations relating to the convenience and needs
of the communities to be served, including the CRA performance records of the institutions involved, are consistent
with approval of the proposal.
Conclusion
Based on the foregoing, and all facts of record, the Board
has determined that the applications should be, and hereby
are, approved.31 In reaching its conclusion, the Board has
31. The commenter also requested that the Board hold a public
hearing or meeting on the proposal. Section 3(b) of the BHC Act does
not require the Board to hold a public hearing on an application unless
the appropriate supervisory authority for the bank to be acquired
makes a timely written recommendation of denial of the application.
The Board has not received such a recommendation from the appropriate supervisory authority. In addition, the Bank Merger Act does not
require the Board to hold a public hearing or meeting.
Under its rules, the Board may, in its discretion, hold a public
meeting or hearing on an application to acquire a bank if a meeting or
hearing is necessary or appropriate to clarify factual issues related to
the application and to provide an opportunity for testimony. 12 C.F.R.
225.16(e). The Board has considered carefully the commenter's request in light of all the facts of record. In the Board's view, the public
has had ample opportunity to submit comments on the proposal, and,
in fact, the commenter has submitted written comments that the Board
has considered carefully in acting on the proposal. The commenter's
request fails to demonstrate why its written comments do not
adequately present evidence in support of its position and fails to
identify disputed issues of fact that are material to the Board's
decision that would be clarified by a public meeting or hearing. For
these reasons, and based on all the facts of record, the Board has
determined that a public meeting or hearing is not required or war-
145
considered all the facts of record in light of the factors that
it is required to consider under the BHC Act, the Bank
Merger Act, and the statutory provisions that govern the
retention and operation of interstate branches.
The Board's approval is specifically conditioned on
compliance by RBC, RBC Centura, and RBC Bank with
all the commitments and representations made in connection with the applications. The Board's determination also
is conditioned specifically on the Board's receiving access
to information on the operations or activities of RBC and
any of its affiliates that the Board determines to be appropriate to assess and enforce compliance by RBC and its
affiliates with applicable federal statutes. These commitments, representations, and conditions are deemed to be
conditions imposed in writing by the Board in connection
with its findings and decisions and, as such, may be
enforced in proceedings under applicable law.
The proposed transactions may not be consummated
before the fifteenth calendar day after the effective date of
this order, or later than three months after the effective date
of this order, unless such period is extended for good cause
by the Board or the Federal Reserve Bank of Richmond,
acting pursuant to delegated authority.
By order of the Board of Governors, effective January 13, 2003.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn.
ROBERT DEV. FRIERSON
Deputy Secretary of the Board
Appendix
Addresses of Main Office and Branches to be Acquired
by RBC Bank
1. 4400 PGA Boulevard
Palm Beach Gardens, FL 33410
2. 496 Central Parkway West
Altamonte Springs, FL 32714
3. 1401 North Federal Highway
Boca Raton, FL 33432
4. 4350 North Atlantic Avenue
Cocoa Beach, FL 32931
5. 300 West Broward Boulevard
Fort Lauderdale, FL 33312
6. 14235 U.S. Highway One
Juno Beach, FL 33408
7. 620 West Indiantown Road
Jupiter, FL 33458
8. 2 South Orange Avenue
Orlando, FL 32801
9. 5811 South Orange Avenue
Orlando, FL 32806
10. 6769 North Wickham Road, Suite B100
Melbourne, FL 32940
ranted in this case. Accordingly, the request for a public meeting or
hearing on the proposal is denied.
146
Federal Reserve Bulletin • March 2003
ORDERS ISSUED
BANKING ACT
UNDER
INTERNATIONAL
BBVA Bancomer, SA.
Mexico City, Mexico
Order Approving Establishment of an Agency
BBVA Bancomer, S.A.("Bank"), Mexico City, Mexico, a
foreign bank within the meaning of the International Banking Act ("IBA"), has applied under section 7(d) of the IBA
(12 U.S.C. § 3105(d)) to establish an agency in Houston,
Texas. The Foreign Bank Supervision Enhancement Act
of 1991, which amended the IBA, provides that a foreign
bank must obtain the approval of the Board to establish an
agency in the United States.
Notice of the application, affording interested persons an
opportunity to comment, has been published in a newspaper of general circulation in Houston, Texas (Houston
Chronicle, August 5, 2002). The time for filing comments
has expired, and all comments have been considered.
Bank, with total assets of approximately $41 billion, is
the largest bank in Mexico.1 Bank is a subsidiary of Grupo
Financiero BBVA Bancomer, S.A. de C.V. ("Grupo"), also
in Mexico City, a financial services holding company
that owns 99.9 percent of Bank's shares. Grupo's ultimate parent is Banco Bilbao Vizcaya Argentaria, S.A.
("BBVA"), Bilbao, Spain, which directly or indirectly
owns approximately 55 percent and has voting control
over an additional approximately 9 percent of the common
shares of Grupo. No other shareholder controls more than
5 percent of the shares of Grupo. Bank and its subsidiaries
represent more than 95 percent of Grupo's consolidated
assets. BBVA, with assets of approximately $277 billion, is
the second largest banking organization in Spain. BBVA
provides a broad range of banking, financial, and other
services throughout the world, and operates banking offices
and subsidiaries in more than 24 countries.2 BBVA is a
qualifying foreign banking organization under Regulation K.
Bank currently operates state-licensed agencies in
Los Angeles, California, and New York, New York. Bank
and Grupo also operate several U.S. nonbanking subsidiaries, all headquartered in Houston, Texas.3
Bank seeks to establish the Houston agency to relocate
and consolidate the existing operations of its Los Angeles
and New York agencies. On the establishment of the proposed Houston agency, all operations, assets, and liabilities
of Bank's existing U.S. agencies would be transferred to
the Houston agency. The proposed Houston agency would
continue the business of the existing agencies, which
includes deposit accounts for non-U.S. persons, corporate
1. Asset data are as of September 30, 2002.
2. In the United States, BBVA's banking operations include a
subsidiary bank, Banco Bilbao Vizcaya Argentaria Puerto Rico,
San Juan, Puerto Rico; a branch in New York, New York; and an
agency in Miami, Florida. BBVA also has several U.S. nonbanking
subsidiaries.
3. These subsidiaries engage in money transmission, brokerage,
foreign exchange activities, and related services and support.
loans and letters of credit, and other banking services for
international businesses and non-U.S. persons.
In order to approve an application by a foreign bank
to establish an agency in the United States, the IBA and
Regulation K require the Board to determine that the
foreign bank applicant engages directly in the business of
banking outside the United States and has furnished to the
Board the information it needs to assess the application
adequately. The Board also shall take into account whether
the foreign bank and any foreign bank parent is subject
to comprehensive supervision or regulation on a consolidated basis by its home country supervisor (12 U.S.C.
§ 3105(d)(2); 12 C.F.R. 211.24).4 The Board may also take
into account additional standards as set forth in the IBA
and Regulation K (12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)-(3)).
As noted above, Bank engages directly in the business of
banking outside the United States. Bank also has provided
the Board with information necessary to assess the application through submissions that address the relevant issues.
With respect to supervision by home country authorities,
the Federal Reserve previously has determined, in connection with an application involving another bank in Mexico,
that bank was subject to home country supervision on a
consolidated basis.5 Bank is supervised by the banking
regulatory authorities in Mexico on substantially the same
terms and conditions as that other bank. With respect to
Bank's parent, BBVA, the Federal Reserve also previously
has determined that other Spanish banks are subject to
comprehensive supervision on a consolidated basis in
connection with their applications to establish U.S. operations.6 BBVA is subject to supervision by the banking
regulatory authorities in Spain on substantially the same
terms and conditions as those other banks. Based on all
the facts of record, it has been determined that Bank and
BBVA are subject to comprehensive supervision on a consolidated basis by their home country supervisors.
The Board has also taken into account the additional
standards set forth in section 7 of the IBA and Reg4. In assessing this standard, the Board considers, among other
factors, the extent to which the home country supervisors:
(i) Ensure that the bank has adequate procedures for monitoring and
controlling its activities worldwide;
(ii) Obtain information on the condition of the bank and its subsidiaries and offices through regular examination reports, audit
reports, or otherwise;
(iii) Obtain information on the dealings with and relationship between
the bank and its affiliates, both foreign and domestic;
(iv) Receive from the bank financial reports that are consolidated on a
worldwide basis or comparable information that permits analysis
of the bank's financial condition on a worldwide consolidated
basis;
(v) Evaluate prudential standards, such as capital adequacy and risk
asset exposure, on a worldwide basis. These are indicia of comprehensive, consolidated supervision. No single factor is essential, and other elements may inform the Board's determination.
5. See Grupo Financiero Banamex Accival, 82 Federal Reserve
Bulletin 1047 (1996).
6. See Caixa de Aforros de Vigo, 88 Federal Reserve Bulletin 132
(2002); Caja de Ahorros y Monte de Piedad de Madrid, 87 Federal
Reserve Bulletin 785 (2001).
Legal Developments
ulation K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)-(3)). The home country supervisors of Bank
and BBVA have no objection to the establishment of the
proposed agency.
Mexico's risk-based capital standards are consistent with
those established by the Basel Capital Accord. Bank's
capital is in excess of the minimum levels that would be
required by the Basel Capital Accord and is considered
equivalent to capital that would be required of a U.S.
banking organization. Managerial and other financial
resources of Bank also are considered consistent with
approval, and Bank appears to have the experience and
capacity to support the proposed agency. In addition, Bank
has established controls and procedures for the proposed
agency to ensure compliance with U.S. law, as well as
controls and procedures for its worldwide operations
generally.
Mexico is a member of the Financial Action Task Force
and subscribes to its recommendations on measures to
combat money laundering. In accordance with these recommendations, Mexico has enacted laws and created legislative and regulatory standards to deter money laundering.
Money laundering is a criminal offense in Mexico, and
financial institutions are required to establish internal policies, procedures, and systems for the detection and prevention of money laundering throughout their worldwide
operations. Bank has policies and procedures to comply
with these laws and regulations that are monitored by
governmental entities responsible for anti-money laundering compliance.
With respect to access to information about Bank's
operations, the Board has reviewed the restrictions on
disclosure in relevant jurisdictions in which Bank and
BBVA operate and has communicated with relevant government authorities regarding access to information. Bank
and its ultimate parent have committed to make available
to the Board such information on the operations of Bank
and any of its affiliates that the Board deems necessary to
determine and enforce compliance with the IB A, the Bank
Holding Company Act, and other applicable federal law.
To the extent that the provision of such information to the
147
Board may be prohibited by law or otherwise, Bank and
its ultimate parent have committed to cooperate with the
Board to obtain any necessary consents or waivers that
might be required from third parties for disclosure of such
information. In light of these commitments and other facts
of record, and subject to the condition described below, it
has been determined that Bank has provided adequate
assurances of access to any necessary information that the
Board may request.
On the basis of all the facts of record, and subject to the
commitments made by Bank and BBVA, as well as the
terms and conditions set forth in this order, Bank's application to establish an agency in Houston, Texas, is hereby
approved.7 Should any restrictions on access to information on the operations or activities of Bank and its affiliates
subsequently interfere with the Board's ability to obtain
information to determine and enforce compliance by Bank
or its affiliates with applicable federal statutes, the Board
may require termination of any of Bank's direct or indirect
activities in the United States. Approval of this application
also is specifically conditioned on compliance by Bank
and BBVA with the commitments made in connection with
this application and with the conditions in this order.8 The
commitments and conditions referred to above are conditions imposed in writing by the Board in connection with
this decision and may be enforced in proceedings under
12 U.S.C. § 1818 against Bank and its affiliates.
By order, approved pursuant to authority delegated by
the Board, effective January 29, 2003.
JENNIFER J . JOHSON
Secretary of the Board
7. Approved by the Director of the Division of Banking Supervision and Regulation, with the concurrence of the General Counsel,
pursuant to authority delegated by the Board.
8. The Board's authority to approve the establishment of the proposed agency parallels the continuing authority of the State of Texas
to license offices of a foreign bank. The Board's approval of this
application does not supplant the authority of the State of Texas
Department of Banking to license the proposed agency of Bank in
accordance with any terms or conditions that it may impose.
148
Federal Reserve Bulletin • March 2003
APPLICATIONS
APPROVED
UNDER BANK HOLDING
COMPANY
ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Section 3
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Community Banc shares of
West Georgia, Inc.,
Villa Rica, Georgia
FEB Banc shares, Inc.,
Neshkoro, Wisconsin
Community Bank of West Georgia,
Villa Rica, Georgia
Atlanta
January 2, 2003
Chicago
January 9, 2003
Chicago
January 6, 2003
Kansas City
January 8, 2003
Chicago
January 9, 2003
Chicago
January 9, 2003
Minneapolis
January 14, 2003
Atlanta
January 3, 2003
Golden Sands Bankshares, Inc.,
Neshkoro, Wisconsin
Farmers Exchange Bank,
Neshkoro, Wisconsin
CNBC Bancorp,
First Merchants Corporation,
Muncie, Indiana
Columbus, Ohio
Commerce National Bank,
Columbus, Ohio
First Olathe Bancshares, Inc.,
Bannister Bancshares, Inc.,
Overland Park, Kansas
Kansas City, Missouri
F T Bancshares, Inc.,
Aurelia F T & S Bankshares, Inc.,
Aurelia, Iowa
Aurelia, Iowa
The First Trust & Savings Bank,
Marcus, Iowa
South Holland Bancorp, Inc.,
MB Financial, Inc.,
South Holland, Illinois
Chicago, Illinois
South Holland Trust and Savings Bank,
South Holland, Illinois
Colmsted National Bank,
Olmsted Holding Corporation,
Rochester, Minnesota
Byron, Minnesota
Tropical Bancshares of Florida, Inc., Englewood Bank,
Englewood, Florida
Englewood, Florida
APPLICATIONS
APPROVED
UNDER BANK MERGER
ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
FNB Southeast,
Reidsville, North Carolina
Guaranty Bank,
Charlottesville, Virginia
Richmond
January 3,2003
Legal Developments
PENDING
CASES INVOLVING
THE BOARD OF
GOVERNORS
This list of pending cases does not include suits against the
Federal Reserve Banks in which the Board of Governors is
not named a party.
Sedgwick v. United States, No. 02-5378 (D.C. Circuit, filed
November 26, 2002). Appeal of the dismissal of appellant's claim for a declaratory judgment under the Federal Tort Claims Act and the Constitution regarding the
banking agencies' alleged failure to intervene on his
behalf in civil litigation involving a regulated institution.
Albrecht v. Board of Governors, No. 02-5325 (D.C. Cir.,
filed October 18, 2002). Appeal of district court order
dismissing challenge to the method of funding of the
retirement plan for certain Board employees.
Caesar v. United States, No. 02-0612 (EGS) (D.D.C.),
removed on April 1, 2002 from No. 02-1502 (D.C.
Superior Court, originally filed March 1, 2002). Action
seeking damages for personal injury.
149
Community Bank & Trust v. United States, No. 01-571C
(Ct. Fed, CI., filed October 3, 2001). Action challenging
on constitutional grounds the failure to pay interest on
reserve accounts held at Federal Reserve Banks.
Artis v. Greenspan, No. 01-CV-0400 (EGS) (D.D.C., complaint filed February 22, 2001). Employment discrimination action. On August 15, 2001, the district court consolidated the action with Artis v. Greenspan, No. 99-CV2073 (EGS) (D.D.C., filed August 3, 1999), also an
employment discrimination action.
Fraternal Order of Police v. Board of Governors,
No. 1:98CV03116 (WBB)(D.D.C., filed December 22,
1998). Declaratory judgment action challenging Board
regulation on labor-management relations at Reserve
Banks.
A1
Financial and Business Statistics
A3
Federal Finance
GUIDE TO TABLES
DOMESTIC FINANCIAL
STATISTICS
Money Stock and Bank Credit
A4 Reserves and money stock measures
A5 Reserves of depository institutions and Reserve Bank
credit
A6 Reserves and borrowings—Depository
institutions
A25 Federal debt subject to statutory limitation
A25 Gross public debt of U.S. Treasury—
Types and ownership
A26 U.S. government securities
dealers—Transactions
A27 U.S. government securities dealers—
Positions and financing
A28 Federal and federally sponsored credit
agencies—Debt outstanding
Securities Markets and Corporate Finance
Policy Instruments
A7 Federal Reserve Bank interest rates
A8 Reserve requirements of depository institutions
A9 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
Monetary and Credit Aggregates
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock 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
A29 New security issues—Tax-exempt state and local
governments and U.S. corporations
A30 Open-end investment companies—Net sales
and assets
A30 Domestic finance companies—Assets and liabilities
A31 Domestic finance companies—Owned and managed
receivables
Real Estate
A3 2 Mortgage markets—New homes
A3 3 Mortgage debt outstanding
Consumer Credit
A34 Total outstanding
A34 Terms
Flow of Funds
A35
A37
A3 8
A39
Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities
Financial Markets
A22 Commercial paper outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates—Money and capital markets
A24 Stock market—Selected statistics
DOMESTIC NONFINANCIAL
STATISTICS
Selected Measures
A40 Output, capacity, and capacity utilization
A42 Industrial production—Indexes and gross value
62
Federal Reserve Bulletin • March 2003
INTERNATIONAL
Summary
STATISTICS
Statistics
A44 U.S. international transactions
A45 U.S. reserve assets
A45 Foreign official assets held at Federal Reserve
Banks
A46 Selected U.S. liabilities to foreign official
institutions
Reported by Banks in the United States
A46
A47
A49
A50
Liabilities to, and claims on, foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A50 Banks' own claims on unaffiliated foreigners
A51 Claims on foreign countries—Combined
domestic offices and foreign branches
Reported by Nonbanking Business
Enterprises in the United States
A52 Liabilities to unaffiliated foreigners
A53 Claims on unaffiliated foreigners
Securities Holdings and Transactions
A54 Foreign transactions in securities
A55 Marketable US. Treasury bonds and
notes—Foreign transactions
Interest and Exchange Rates
A56 Foreign exchange rates
A57 GUIDE TO SPECIAL TABLES AND
STATISTICAL RELEASES
A58 INDEX TO STATISTICAL
TABLES
A3
Guide to Tables
SYMBOLS AND ABBREVIATIONS
c
e
n.a.
n.e.c.
P
r
ABS
ATS
BIF
CD
CMO
CRA
FAMC
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSA
FSLIC
G-7
Corrected
Estimated
Not available
Not elsewhere classified
Preliminary
Revised (Notation appears in column heading
when about half the figures in the column have
been revised f r o m the most recently published
table.)
A m o u n t insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is in millions)
Calculated to be zero
Cell not applicable
Asset-backed security
Automatic transfer service
Bank insurance f u n d
Certificate of deposit
Collateralized mortgage obligation
C o m m u n i t y Reinvestment Act of 1977
Federal Agricultural Mortgage Corporation
Federal Financing Bank
Federal Housing Administration
Federal H o m e Loan Bank Board
Federal H o m e Loan Mortgage Corporation
Farmers H o m e Administration
Federal National Mortgage Association
Farm Service Agency
Federal Savings and Loan Insurance Corporation
G r o u p of Seven
GENERAL
INFORMATION
*
0
In m a n y of the tables, components do not sum to totals because of
rounding.
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of f u n d s figures also
G-10
GDP
GNMA
GSE
HUD
IMF
IOs
IPCs
IRA
MMDA
MSA
NAICS
NOW
OCDs
OPEC
OTS
PMI
POs
REIT
REMICs
RHS
RP
RTC
SCO
SDR
SIC
TIIS
VA
G r o u p of Ten
Gross domestic product
G o v e r n m e n t National Mortgage Association
Government-sponsored enterprise
Department of Housing and Urban
Development
International Monetary F u n d
Interest only, stripped, mortgage-backed securities
Individuals, partnerships, and corporations
Individual retirement account
M o n e y market deposit account
Metropolitan statistical area
North American Industry Classification System
Negotiable order of withdrawal
Other checkable deposits
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Private mortgage insurance
Principal only, stripped, mortgage-backed securities
Real estate investment trust
Real estate mortgage investment conduits
Rural Housing Service
Repurchase agreement
Resolution Trust Corporation
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Treasury inflation-indexed securities
Department of Veterans Affairs
include not fully guaranteed issues) as well as direct obligations of the U.S. Treasury.
"State and local g o v e r n m e n t " also includes municipalities,
special districts, and other political subdivisions.
A4
1.10
DomesticNonfinancialStatistics • March 2003
RESERVES AND MONEY STOCK MEASURES
Percent annual rate of change, seasonally adjusted1
2002
2002
Monetary or credit aggregate
Q2 r
Qlr
1
2
3
4
Q4
Aug. r
Sept. r
Oct. r
Nov. r
Dec.
institutions2
Reserves of depository
Total
Required
Nonborrowed
Monetary base 3
Concepts
3 Ml
6 M2
7 M3
Q3 f
-9.7
-9.2
-9.3
8.9
-15.9
-14.9
-16.5
7.3
-.9
-3.6
-2.4
6.9
-1.5
-4.0
-.7
5.2
11.3
3.5
7.1
4.9
-23.3
-19.3
-20.4
3.0
-10.9
-13.7
-8.3
5.2
19.8
18.5
15.9
6.0
15.4
4.0
21.3
7.7
5.7
6.7
5.8
-.6
4.1
4.1
3.1
9.2
7.7
4.8
6.9
7.3
-11.1
8.3
10.2
6.3
5.6
6.2
11.5
8.0
.6
-.5
7.7
16.9
8.1
2.7
7.2
7.0
3.8
5.4
4.2
10.8
4.5
7.5
8.2
13.6
14.3
5.4
7.5
7.1
-15.4
9.9
37.1
1.3
16.8
20.4
-16.1
5.2
15.1
-6.3
12.4
20.1
-6.3
3.7
16.9
-10.2
-3.4
28.7
-8.5
.0
16.7
-12.0
-3.4
14.3
-10.3
10.7
20.9
-9.3
-12.2
3.6
-11.1
-31.4
31.0
-12.3
1.5
24.0
-16.6
-8.1
20.4
-11.7
-3.1
20.9
-7.8
10.2
21.7
-7.8
15.1
21.5
-9.4
2.1
22.9
-7.9
8.5
14.6
-7.5
15.9
22.2
-5.6
14.6
-7.8
3.4
-9.2
3.9
4.7
-.8
-5.0
1.8
-1.0
-.9
-13.0
-8.3
-3.5
-41.4
.9
68.6
-9.1
25.2
3.0
3.6
-.7
-4.7
27.5
.2
45.0
12.4
86.6
21.6
67.8
21.2
-4.8
9.8
55.3
8.0
77.7
1.7
of money*
Nontransaction
8 In M2 5
9 In M 3 only 6
components
Time and savings
deposits
Commercial banks
Savings, including M M D A s
Small time 7
Large time 8 - 9
Thrift institutions
Savings, including M M D A s
13
14
Small time 7
15
Large time 8
10
1 1
12
Money market mutual
16 Retail
17 Institution-only
funds
Repurchase agreements and
18 Repurchase agreements 1 0
19 Eurodollars 1 0
eurodollars
1. Unless otherwise noted, rates of change are calculated from average amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or "breaks," associated with regulatory changes in reserve requirements (See also table 1.20.)
3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault C a s h " 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 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 M M D A s ) , (2) small-denomination time deposits (time
deposits—including retail RPs—in amounts of less than S 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 l .
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2)
balances in institutional money funds, (3) R P 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 M 3 is calculated
by summing large time deposits, institutional money fund balances, R P liabilities, and
eurodollars, each seasonally adjusted separately, and adding this result to seasonally adjusted
M2.
5. Sum of (1) savings deposits (including M M D A s ) , (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) R P 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 R P s — a r e 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.
Money Stock and Bank Credit
1.11
A5
RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT 1
Millions of dollars
Average of
daily figures
Average of daily figures for week ending on date indicated
2002
2002
Dec.
Nov.
Oct.
Nov. 13
Nov. 20
Dec. 4
Nov. 27
Dec. 11
Dec. 18
Dec. 25
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities 2
2
Bought outright—System account 3
Held under repurchase agreements
3
Federal agency obligations
4
Bought outright
Held under repurchase agreements
5
6
Repurchase agreeements 4
Acceptances
7
Loans to depository institutions
8
Adjustment credit
9
Seasonal credit
10
Special Liquidity Facility credit
11
Extended credit
12
Float
13
Other Federal Reserve assets
14 Gold stock
15 Special drawing rights certificate account . . . .
16 Treasury currency outstanding
659,702
666,517
690,026
666,349
666,072
669,023
672,622
670,747
692.554
703,577
609,157
0
608,689
0
621,818
0
608,480
0
608,053
0
609,235
0
609,586
0
609,905
0
626,469
0
629,400
0
10
0
11,242
0
10
0
19,308
0
10
0
29,476
0
10
0
16,821
0
10
0
20,929
0
10
0
23,036
0
10
0
25,857
0
10
0
22,000
0
10
0
28,179
0
10
0
34,321
0
13
120
0
0
363
38,797
213
61
0
0
104
38,133
42
46
0
0
604
38,029
242
66
0
0
649
40,081
310
60
0
0
-310
37,020
3
54
0
0
15
36,671
2
54
0
0
266
36,847
164
46
0
0
1,472
37,150
6
49
0
0
-161
38,003
13
46
0
0
1,078
38,708
11,042
2,200
34,349
11,042
2,200
34,424'
11,043
2,200
34,539
11,042
2,200
34,407'
11,042
2,200
34,428'
11,042
2,200
34,450'
11,042
2,200
34,472
11,043
2,200
34,503
11,043
2,200
34,535
11,043
2,200
34,566
662,719
0
389
668,237'
0
387
678,660
13,291
370
668,079'
0
386
667,813'
0
387
669,935'
0
384
674,544
0
377
674,339
0
376
675,482
18,202
370
681,523
20,908
361
4,873
164
10,266
223
19,530
9,128
5,024
118
10,483
228
19,765
9,943
4,891
134
10,808
242
20,061
9,781
5,013
77
10,328
236
20,012
9,867
4,868
147
10,461'
250
19,791
10,025'
5,016
125
10,625
180
19,483
10,968
4,664
127
10,684
228
19,571
10,139
4,107
138
10,554
208
19,799
8,973
5,959
148
10,899
210
20,203
8,858
4,678
114
11,181
212
20,441
11,969
Dec. 11
Dec. 18
Dec. 25
ABSORBING RESERVE F U N D S
17 Currency in circulation
18 Reverse repurchase agreements 5
19 Treasury cash holdings
Deposits, other than reserve balances,
with Federal Reserve Banks
20
Treasury
21
Foreign
22
Service-related balances and adjustments . .
23
Other
24 Other Federal Reserve liabilities and capital . .
25 Reserve balances with Federal Reserve Banks 6
Wednesday figures
End-of-month figures
Oct.
Nov.
Dec.
Nov. 13
Nov. 20
Nov. 27
Dec. 4
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities 2
Bought outright—System account 3
2
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
Held under repurchase agreements
5
6
Repurchase agreeements 4
Acceptances
7
Loans to depository institutions
8
Adjustment credit
Seasonal credit
9
10
Special Liquidity Facility credit
11
Extended credit
12
Float
13
Other Federal Reserve assets
14 Gold stock
15 Special drawing rights certificate account . . . .
16 Treasury currency outstanding
662,905
674,241
708,078
673,934
662,991
676,116
666,887
679,720
698,549
708,372
607,865
0
608,985
0
629,406
0
608,984
0
606,396
0
609,614
0
610,876
0
608,947
0
629,397
0
629,402
0
10
0
16,500
0
10
0
28,500
0
10
0
39,500
0
10
0
21,000
0
10
0
19,250
0
10
0
29,000
0
10
0
18,000
0
10
0
30,750
0
10
0
30,000
0
10
0
37,250
0
0
80
0
0
-695
39,144
2
57
0
0
-334
37,022
9
31
0
0
418
38,703
2
65
0
0
3,624
40,249
1
56
0
0
752
36,527
6
54
0
0
599
36,833
2
49
0
0
1,081
36,867
1,076
45
0
0
1,498
37,394
2
43
0
0
895
38,202
9
50
0
0
2,693
38,958
11,042
2,200
34,385
11,042
2,200
34,472'
11,043
2,200
34,597
11,042
2,200
34.407'
11,042
2,200
34,428'
11,042
2,200
34,450'
11,043 2,200
34,472
11,043
2,200
34,503
11,043
2,200
34,535
11,043
2,200
34,566
663,370
0
397
673,853'
0
377
687,518
21,091
367
669,444'
0
387
668,869'
0
386
674,314'
0
377
675,400
0
377
675,548
0
372
678,744
21,905
360
685,083
20,396
367
5,878
89
10,423
233
19,720
10,422
4,928
78
10,684'
253
19,616
12,167'
4,420
136
10,648
1,152
18,977
11,608
4,592
76
10,328
238
19,693
16,825
4,519
72
10,461'
231
19,307
6,818'
5,082
224
10,625
184
19,435
13,566
3,504
153
10,684
207
19,452
4,823
5,506
139
10,554
201
19,786
15,360
6,595
172
10,899
213
19,907
7,532
4,662
139
11,181
203
20,670
13,482
ABSORBING RESERVE F U N D S
17 Currency in circulation
18 Reverse repurchase agreements 5
19 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
20
Treasury
21
Foreign
22
Service-related balances and adjustments . .
23
Other
24 Other Federal Reserve liabilities and capital . .
25 Reserve balances with Federal Reserve Banks 6
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.
4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency
securities.
5. Cash value of agreements, which are collateralized by U.S. Treasury securities.
6. Excludes required clearing balances and adjustments to compensate for float.
A6
1.12
DomesticNonfinancialStatistics • March 2003
RESERVES AND BORROWINGS
Depository Institutions 1
Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification
1
2
3
4
5
6
7
8
9
10
11
Reserve balances with Reserve Banks 2
Total vault cash 3
Applied vault cash 4
Surplus vault cash 5
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks 7
Total borrowing at Reserve Banks
Adjustment
Seasonal
Extended credit 8
2000
2001
2002
2002
Dec.
Dec.
Dec.
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
7,022
45,245
31,451
13,794
38,473
37,046
1,427
210
99
111
0
9,053
43,919
32,024
11,895
41,077
39,428
1,649
67
34
33
0
9,873
43,334
30,300
13,033
40,173
38,176
1,997
80
35
45
0
7,923
41,655
30,694
10,961
38.617
37,378
1,238
142
6
136
0
8,099
42,718
31,313
11,406
39,412
38,038
1,374
191
16
176
0
8,520
42,892
31,335
11,557
39,854
38,217
1,637
333
148
185
0
8,731
42,231
30,176
12,055
38,907
37,431
1,476
229
60
169
0
8,836
42,933
29,849
13,084
38,685
37,134
1,550
143
23
120
0
9,695'
42,144'
29,446
12,698'
39,141'
37,525
1,616
272
211
60
0
9,873
43,334
30,300
13,033
40,173
38,176
1,997
80
35
45
0
Biweekly averages of daily figures for two-week periods ending on dates indicated
2003
2002
1
2
3
4
5
6
7
8
9
10
11
Reserve balances with Reserve Banks 2
Total vault cash 3
Applied vault cash 4
Surplus vault cash 5
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks 7
Total borrowing at Reserve Banks
Adjustment
Seasonal
Extended credit 8
Sept. 4
Sept. 18
Oct. 2
Oct. 16
Oct. 30
Nov. 13
Nov. 27
Dec. l l r
Dec. 25
Jan. 8
10,024
41,632
30,698
10,935
40,722
38,436
2,286
626
438
188
0
7,666
41,581
28,528
13,053
36,194
35,225
969
167
4
163
0
9,543
43,190
31,925
11,265
41,468
39,670
1,797
170
1
170
0
7,935
43,452
28,939
14,513
36,874
35,337
1,537
155
25
130
0
9,634
42,465 r
30,573
1 l,892 r
40,207
38,688
1,519
111
4
107
0
8,864
41,720 r
28,302
13,418 r
37,166
35,492
1,674
366
299
67
0
10,497
42,605 r
30,514
12,092 r
41,010
39,441
1,569
214
157
57
0
9,559
41,827
29,419
12,408
38,978
37,394
1,583
133
83
50
0
10,408
43,740
30,292
13,448
40,700
38,225
2,475
57
10
48
0
9,200
45,148
31,935
13,213
41,135
39,495
1,640
36
8
29
0
1. Data in this table also appear in the B o a r d ' 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 " a s - 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 requirements.
4. All vault cash held during the lagged computation period by " b o u n d " institutions (that
is, those whose required reserves exceed their vault cash) plus the amount of vault cash
applied during the maintenance period by " n o n b o u n d " institutions (that is, those whose vault
cash exceeds their required reserves) to satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash (line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. 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.
Policy Instruments
1.14
FEDERAL RESERVE BANK INTEREST
A7
RATES
Percent per year
Current and previous levels
Primary credit
Federal Reserve
Bank
On
2/14/03
Secondary credit 2
1
Effective date
Seasonal credit 3
On
2/14/03
On
2/14/03
Previous rate
Effective date
Boston
New York . . .
Philadelphia .
Cleveland . . .
Richmond . . .
Atlanta
Chicago
St. Louis
Minneapolis .
Kansas City .
Dallas
San Francisco
Range of rates for primary credit
Effective date
In effect Jan. 9, 2003
(beginning of program)
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
2.25
2.25
Effective date
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
...
...
. . .
...
...
. . .
...
...
...
...
...
. . .
3.25-3.50
3.25
3.00-3.25
3.00
2.50-3.00
2.50
2.00-2.50
2.00
1.50-2.00
1.50
1.25-1.50
1.25
3.25
3.25
3.00
3.00
2.50
2.50
2.00
2.00
1.50
1.50
1.25
1.25
...
0.75-1.25
0.75
0.75
0.75
0.75
0.75
Effective date
Range of rates for adjustment credit in recent years 4
Range (or
level)—All
F.R. Banks
In effect Dec. 31, 1995
F.R. Bank
of
N.Y.
5.25
5.25
1996—Jan. 31
Feb. 3 . . .
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 . . .
4.50-4.75
4.75
4.75-5.00
5.00
4.75
4.75
4.75
5.00
Effective date
2
4
Mar. 21
23
May 16
19
2000—Feb.
2001— Jan.
Feb.
Mar.
Apr.
2001—May
3
4
5
31
1
20
21
18
20
15
17
1. Available for very short terms as a backup source of liquidity to depository institutions
that are in generally sound financial condition in the judgment of the lending Federal Reserve
Bank.
2. Available in appropriate circumstances to depository institutions that do not qualify for
primary credit.
3. Available to help relatively small depository institutions meet regular seasonal needs for
funds that arise from a clear pattern of intrayearly movements in their deposits and loans and
that cannot be met through special industry lenders. The discount rate on seasonal credit takes
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
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
5.75-6.00
5.50-5.75
5.50
5.00-5.50
5.00
4.50-5.00
4.50
4.00-4.50
4.00
3.50-4.00
3.50
5.75
5.50
5.50
5.00
5.00
4.50
4.50
4.00
4.00
3.50
3.50
2001—June 27
29
Aug. 21
23
Sept. 17
18
Oct. 2
4
Nov. 6
8
Dec. 11
13
2002—Nov.
6
1 ...
In effect Jan. 8, 2003
(end of program)
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.
4. Was available until January 8, 2003, to help depository institutions meet temporary
needs for funds that could not be met through reasonable alternative sources. For earlier data,
see the following publications of the Board of Governors: Banking and Monetary
Statistics,
1914-1941,
and 1941-1970;
and the Statistical
Digest, 1970-1979,
1980-1989,
and
1990-1995.
See also the Board's Statistics: Releases and Historical Data web pages
(http://www.federalreserve.gov/releases/H15/data.htm).
A8
1.15
DomesticNonfinancialStatistics • March 2003
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Requirement
Type of deposit
Net transaction
accounts2
1 $0 million-$6 million®
2 More than $6 million-$42.1 million 4
3 More than $42.1 million 5
12/26/02
12/26/02
12/26/02
4 Nonpersonal time deposits 6
12/27/90
5 Eurocurrency liabilities 7
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 Monetary 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 withdrawal, or telephone or preauthorized transfers for the purpose of making 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. Under the Garn-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 26, 2002, for depository institutions that report
weekly, and with the period beginning January 16, 2003, for institutions that report quarterly,
the exemption was raised from $5.7 million to $6.0 million.
4. 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 26. 2002, for depository institutions that report weekly, and with the period
beginning January 16, 2003, for institutions that report quarterly, the amount was increased
from $41.3 million to $42.1 million.
5. The reserve requirement was reduced from 12 percent to 10 percent on April 2, 1992,
for institutions that report weekly, and on April 16, 1992, for institutions that report quarterly.
6. For institutions that report weekly, the reserve requirement on nonpersonal time deposits
with an original maturity of less than 1.5 years was reduced from 3 percent to 1.5 percent for
the maintenance period that began December 13, 1990, and to zero for the maintenance
period that began December 27, 1990. For institutions that report quarterly, the reserve
requirement on nonpersonal time deposits with an original maturity of less than 1.5 years was
reduced from 3 percent to zero on January 17, 1991.
The reserve requirement on nonpersonal time deposits with an original maturity of 1.5
years or more has been zero since October 6, 1983.
7. 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 1.5 years (see note 5).
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS 1
Millions of dollars
2002
Type of transaction
and maturity
2000
1999
2001
May
June
July
Aug.
Sept.
Oct.
Nov.
U.S. TREASURY SECURITIES2
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
Outright transactions (excluding
transactions)
Treasury bills
Gross purchases
Gross sales
Exchanges
For new bills
Redemptions
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
All maturities
Gross purchases
Gross sales
Redemptions
matched
0
0
464,218
464,218
0
8,676
0
477,904
477,904
24,522
15,503
0
542,736
542,736
10,095
3,524
0
70,978
70,978
0
3,656
0
53,015
53,015
0
4,838
0
45,828
45,828
0
529
0
63,083
63,083
0
750
0
53,314
53,314
0
0
0
62,947
62,947
0
250
0
51,394
51,394
0
11,895
0
50,590
-53,315
1,429
8,809
0
62,025
-54,656
3,779
15,663
0
70,336
-72,004
16,802
2,826
0
6,714
-9,031
0
0
0
0
1,104
0
11,052
-14,183
0
445
0
8,987
-5,040
0
1,286
0
11,174
-15,189
0
0
0
6,143
-5,435
0
3,688
-1,419
0
19,731
0
^14,032
42,604
14,482
0
-52,068
46,177
22,814
0
0
1,921
0
-629
3,396
0
0
-11,174
15,189
0
0
0
0
1,755
0
-11,052
13,283
0
-45,211
64,519
1,439
0
-1,620
8,639
-6,143
5,435
-2,380
1,308
4,303
0
-5,841
7,578
5,871
0
-6,801
6,585
6,003
0
-21,063
6,063
259
0
-5,094
391
542
577
690
0
-6.714
1,645
51
0
0
0
0
0
0
0
0
0
722
111
9,428
0
-717
3,133
5,833
0
-3,155
1,894
8,531
0
-4,062
1,423
0
0
80
0
0
0
0
0
0
0
0
0
0
0
0
-2,030
0
-1,645
0
0
0
0
45,357
43,670
8,048
0
4,198
8,336
3,665
2,087
0
0
0
0
0
0
0
0
250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
900
0
63
0
0
0
0
0
0
0
1,429
28,301
68,513
0
26,897
4,413,430
4,431,685
4,415,905
4,397,835
4,722,667
4,724,743
466,807
469,046
447,555
448,330
513,400
511,902
495,729
497,031
449,250
449,986
429,029
425,399
378,381
377,535
281,599
301,273
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5,999
33,439
39,540
5,810
3,423
9,834
2,363
1,351
3,630
1,096
0
0
157
0
0
51
0
0
120
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Repurchase
agreements
34 Gross purchases
35 Gross sales
360,069
370,772
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
36 Net change in federal agency obligations
-10,859
-51
-120
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
304,989
164,349
890,236
987,501
1,497,713
1,490,838
106,426
109,926
98,850
94,850
68,750
81,250
84,000
80,500
93,500
94,750
72,000
77,250
113,501
101,501
140,640
-97,265
6,875
-3,500
4,000
-12,500
3,500
-1,250
-5,250
12,000
135,780
-63,877
46,295
2,310
7,423
-2,666
5,863
101
-1,620
13,096
Matched
transactions
26 Gross purchases
27 Gross sales
Repurchase
agreements
28 Gross purchases
29 Gross sales
30 Net change in U.S. Treasury securities
0
FEDERAL AGENCY OBLIGATIONS
Outright
transactions
31 Gross purchases
32 Gross sales
33 Redemptions
Reverse repurchase
37 Gross purchases
38 Gross sales
0
agreements
Repurchase
agreements
39 Gross purchases
40 Gross sales
41 Net change in triparty obligations
42 Total net c h a n g e in System O p e n M a r k e t Account
..
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. Transactions include the rollover of inflation compensation into new securities.
A10
1.18
DomesticNonfinancialStatistics • March 2003
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements1
Millions of dollars
Account
Nov. 27
Dec. 4
Wednesday
End of month
2002
2002
Dec. 11
Dec. 18
Dec. 25
Oct.
Nov.
Dec.
Consolidated condition statement
ASSETS
11,038
2,200
1,049
11,039
2,200
1,028
11,039
2,200
1,032
11,039
2,200
1,035
11,039
2,200
1,011
11,038
2,200
1,091
11,038
2,200
1,051
11,039
2,200
988
60
0
0
52
0
0
1,121
0
0
45
0
0
59
0
0
80
0
0
59
0
0
40
0
0
29,000
18,000
30,750
30,000
37,250
16,500
28,500
39,500
10
0
10
0
10
0
10
10
0
10
0
10
0
0
10
0
10 Total U.S. TVeasury securities 3
609,614
610,876
608,947
629,397
629,402
607,865
608,985
629,406
11 Bought outright 4
12
Bills
13
Notes
14
Bonds
15 Held under repurchase agreements
609,614
207,568
297,339
104,707
0
610,876
208,172
297,881
104,823
0
608,947
206,238
297,884
104,825
629,397
226,682
297,887
104,828
629,402
226,682
297,890
104,830
607,865
205,840
295,908
106,117
629,406
226,682
297,893
104,832
0
0
0
0
608,985
206,937
297,340
104,708
0
16 Total loans a n d securities
638,684
628,938
640,828
659,452
666,721
624,456
637,554
668,956
8,118
1,530
9,589
1,530
10,116
1,532
8,800
1,534
13,239
1,540
6,256
1,527
5,147
1,529
10,291
1,543
16,160
19,162
16,091
19,231
16,252
19,627
16,551
19,990
16,655
20,702
16,091
21,553
16,161
19,340
16,913
20,118
697,941
689,645
702,625
720,601
733,107
684,212
694,021
732,048
641,286
0
642,328
642,444
0
645,599
21,905
651,891
20,396
630,469
0
0
640,806
0
654,272
21,091
24 Total deposits
29,463
19,535
31,871
24,923
29,704
27,077
28,236
28,249
25
26
27
28
23,972
5,082
224
184
15,670
3,504
153
207
26,025
5,506
139
201
17,943
6,595
172
213
24,701
4,662
139
203
20,878
5,878
89
233
22,978
4,928
78
253
22,541
4,420
136
1,152
7,757
2,427
8,329
2,425
8,523
2,451
8,266
2,418
10,447
2,461
6,946
2,479
5,364
2,443
9,459
2,217
680,933
672,618
685,290
703,111
714,898
666,971
676,848
715,288
8,349
7,312
1,348
8,353
7,312
1,362
8,359
7,312
1,664
8,376
7,312
1,802
8,382
7,312
2,516
8,278
7,312
1,652
8,349
7,312
1,513
8,380
8,380
697,941
689,645
702,625
720,601
733,107
684,212
694,021
732,048
831,289
833,276
839,532
847,705
848,468
812,239
832,089
855,053
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Triparty obligations
1 Repurchase agreements 2
Federal agency
obligations3
8 Bought outright
9 Held under repurchase agreements
17 Items in process of collection
18 Bank premises
Other assets
19 Denominated in foreign currencies 5
20 All other 6
21 Total assets
0
LIABILITIES
22 Federal Reserve notes
23 Reverse repurchase agreements 7
Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
29 Deferred credit items
30 Other liabilities and accrued dividends 8
31 Total liabilities
CAPITAL ACCOUNTS
32 Capital paid in
33 Surplus
34 Other capital accounts
35 Total liabilities a n d capital accounts
0
MEMO
36 Marketable U.S. government and federal agency securities
held in custody for foreign official and
international accounts
Federal Reserve note statement
37 Federal Reserve notes outstanding (issued to Banks)
38
LESS: Held by Federal Reserve Banks
39
Federal Reserve notes, net
40
41
42
43
Collateral held against notes, net
Gold certificate account
Special drawing rights certificate account
Other eligible assets
U.S. Treasury and agency securities
44 Total collateral
757,885
116,599
641,286
759,934
117,606
642,328
762,428
119,984
642,444
762,435
116,836
645,599
760,778
108,887
651,891
752,063
121,595
630,469
757,793
116,988
640,806
759,255
104,983
654,272
11,038
2,200
0
628,048
11,039
2,200
204
628,886
11,039
2,200
0
629,205
11,039
2,200
0
632,361
11,039
2,200
0
638,652
11,038
2,200
0
617,231
11,038
2,200
0
627,567
11,039
2,200
0
641,034
641,286
642,328
642,444
645,599
651,891
630,469
640,806
654,272
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, which are collateralized by U.S. Treasury and federal agency
securities.
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. Cash value of agreements, which are collateralized by U.S. Treasury securities.
8. Includes exchange-translation account reflecting the monthly revaluation at market
exchange rates of foreign exchange commitments.
Federal Reserve Banks
1.19
FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holding
Millions of dollars
Type of holding and maturity
Nov. 27
Dec. 4
Wednesday
End of month
2002
2002
Dec. 11
Dec. 18
Dec. 25
Oct.
Nov.
Dec.
1 Total loans
60
52
1,121
45
59
80
59
40
2 Within fifteen days 1
3 Sixteen days to ninety days
4 91 days to 1 year
56
4
0
30
22
0
1,089
32
0
43
3
0
57
2
0
62
18
0
44
15
0
35
5
0
609,614
610,876
608,947
629,397
629,402
607,865
608,985
629,406
25,646
135,245
142,115
173,805
52,974
79,829
21,260
142,625
139,936
173,934
53,290
79,831
19,955
141,835
140,097
173,935
53,293
79,833
47,253
134,262
140,816
173,935
53,295
79,836
33,670
146,846
141,815
173,936
53,298
79,838
6,607
129.715
162,163
176,182
51,458
81,739
12,306
147,874
142,194
173,805
52,975
79,830
27,444
154,225
141,840
172,758
53,300
79,840
12 Total federal agency obligations
10
10
10
10
10
10
10
10
13
14
15
16
17
18
0
0
0
10
0
0
0
0
0
10
0
0
0
0
0
10
0
0
0
0
10
0
0
0
0
0
10
0
0
0
0
0
0
10
0
0
0
0
0
10
0
0
0
0
10
0
0
0
5 Total U S . T r e a s u r y securities 2
6
7
8
9
10
11
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
1. Holdings under repurchase agreements are classified as maturing within fifteen days in
accordance with maximum maturity of the agreements.
2. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.
A12
1.20
DomesticNonfinancialStatistics • March 2003
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
2002
Item
1999
Dec.
2000
Dec.
2001
Dec.
2002
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
40.05
39.72
39.72
38.42
669.66'
39.28
39.05
39.05
37.80
671.35'
38.92
38.78
38.78
37.37
674.28'
39.56
39.29
39.29
37.95
677.63'
40.07
39.99
39.99
38.07
682.01
Seasonally adjusted
A D J U S T E D FOR
C H A N G E S IN R E S E R V E R E Q U I R E M E N T S 2
1
2
3
4
5
Total reserves 3
Nonborrowed reserves 4
Nonborrowed reserves plus extended credit 5
Required reserves
Monetary base 6
41.82
41.50
41.50
40.53
593.73 r
38.54
38.33
38.33
37.11
584.96 r
41.22
41.15
41.15
39.57
635.78'
40.07
39.99
39.99
38.07
682.01
39.16
39.05
39.05
37.90
657.64'
39.31
39.17
39.17
38.08
662.02'
39.68
39.49
39.49
38.31
666.91'
Not seasonally adjusted
6
7
8
9
10
7
Total reserves
Nonborrowed reserves
Nonborrowed reserves plus extended credit 5
Required reserves 8
Monetary base 9
41.89
41.57
41.57
40.59
600.72
38.53
38.32
38.32
37.10
590.06
41.20
41.13
41.13
39.55
639.91
40.03
39.95
39.95
38.03
686.17
40.23
40.11
40.11
38.96
657.98
38.54
38.40
38.40
37.30
662.87
39.32
39.13
39.13
37.94
668.76
39.74
39.41
39.41
38.10
669.32
38.78
38.55
38.55
37.31
669.72
38.54
38.40
38.40
36.99
671.49
38.98
38.71
38.71
37.37
676.66'
40.03
39.95
39.95
38.03
686.17
41.65
41.33
41.33
40.36
608.02
1.30
.32
38.47
38.26
38.26
37.05
596.98
1.43
.21
41.08
41.01
41.01
39.43
648.74
1.65
.07
40.17
40.09
40.09
38.18
697.09
2.00
.08
40.29
40.18
40.18
39.03
668.12
1.26
.11
38.62
38.47
38.47
37.38
673.01
1.24
.14
39.41
39.22
39.22
38.04
678.98
1.37
.19
39.85
39.52
39.52
38.22
679.55
1.64
.33
38.91
38.68
38.68
37.43
679.96
1.48
.23
38.69
38.54
38.54
37.13
681.83
1.55
.14
39.14
38.87
38.87
37.53
687.23'
1.62
.27
40.17
40.09
40.09
38.18
697.09
2.00
.08
N O T A D J U S T E D FOR
C H A N G E S IN R E S E R V E R E Q U I R E M E N T S 1 0
11
12
13
14
15
16
17
Total r e s e r v e s "
Nonborrowed reserves
Nonborrowed reserves plus extended credit 5
Required reserves
Monetary base 1 2
Excess reserves 1 3
Borrowings from the Federal Reserve
1. Latest monthly and biweekly figures are available from the B o a r d ' 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, D C 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 f r o m 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. T h e 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 nonpersonal time and savings deposits (but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus
(2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault C a s h " 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
C a s h " 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).
Monetary and Credit Aggregates
1.21
A13
MONEY STOCK MEASURES 1
Billions of dollars, averages of daily figures
2002
1999
Dec.
2000
Dec.
2001
Dec.
2002
Dec.
Sept.'
Oct.'
Nov.'
Dec.
Seasonally adjusted
Measures2
1 Ml
7 M2
3 M3
l,121.9 r
4,648.0 r
6,528.6'
1,084.9'
4,926.9'
7,090.5'
1,173.4'
5,440.6'
7,993.5'
1,211.5
5,791.8
8,505.7
1,192.5
5,703.5
8,333.5
1,203.9
5,741.7
8,338.0
1,203.4
5,778.6
8,455.3
1,211.5
5,791.8
8,505.7
517.5'
8.3
352.2'
244.0'
531.0'
8.0
306.7'
239.2'
581.4'
7.8
325.6'
258.8'
627.0
7.5
296.5
280.5
617.8
7.9
292.0
274.7
620.5
7.7
299.3
276.4
623.3
7.5
294.1
278.7
627.0
7.5
296.5
280.5
3,526.0'
1,880.6'
3,842.0'
2,163.6'
4,267.1'
2,552.9'
4,580.3
2,714.0
4,511.0
2,630.0
4,537.8
2,596.3
4,575.2
2,676.6
4,580.3
2,714.0
Commercial
banks
10 Savings deposits, including M M D A s
11 Small time deposits 9
12 Large time deposits 1 0 1 1
1,288.8'
634.7'
650.2'
1,422.3'
698.8'
717.4'
1,734.5'
634.2'
670.8'
2,047.3
580.9
685.1
1,982.7
596.0
704.4
2,006.3
590.9
710.7
2,041.2
586.3
703.5
2,047.3
580.9
685.1
institutions
Thrift
13 Savings deposits, including M M D A s
14 Small time deposits 9
15 Large time deposits 1 0
449.6'
320.3'
91.0'
451.7'
344.4'
102.9
seg-C
338.7'
114.9'
711.0
299.0
116.4
676.8
304.3
112.7
689.7
302.3
113.5
698.1
300.4
115.0
711.0
299.0
116.4
Money market mutual
16 Retail
17 Institution-only
832.7'
634.4'
924.8'
788.2'
990.7'
1,189.7'
942.0
1,232.9
951.3
1,183.0
948.5
1,142.2
949.2
1,207.5
942.0
1,232.9
335.7'
169.2'
363.5'
191.5'
375.0'
202.5'
468.6
210.9
422.4
207.5
420.7
209.2
440.1
210.6
468.6
210.9
Ml
components
4 Currency 3
Travelers checks 4
6 D e m a n d deposits 5
7 Other checkable deposits 6
Nontransaction
8 In M 2 7
8
9 In M 3 only
components
funds
Repurchase agreements and
18 Repurchase agreements 1 2
19 Eurodollars 1 2
eurodollars
Not seasonally adjusted
Measures1
70 M l
71 M 2
22 M 3
1,148.3
4,675.0
6,571.1
1,112.3
4,962.3
7,145.0
1,203.5
5,483.5
8,065.2
1,241.4
5,841.1
8,583.2
1,182.5
5,681.3
8,258.6
1,193.6
5,720.9
8,281.4
1,202.0
5,793.1
8,471.0
1,241.4
5,841.1
8,583.2
521.5
8.4
371.8
246.6
535.2
8.1
326.5
242.5
584.9
7.9
347.6
263.2
630.3
7.7
316.9
286.6
616.1
7.8
289.3
269.3
617.9
7.7
294.9
273.0
622.8
7.6
296.2
275.4
630.3
7.7
316.9
286.6
3,526.7
1,896.2
3,849.9
2,182.8
4,280.0
2,581.7
4,599.7
2,742.1
4,498.8
2,577.2
4,527.3
2,560.5
4,591.1
2,677.9
4,599.7
2,742.1
Commercial
banks
29 Savings deposits, including M M D A s
30 Small time deposits 9
1011
31 Large time deposits
1,288.8
635.7
651.7
1,426.9
700.0
717.6
1,742.3
635.2
669.7
2,059.9
581.6
683.4
1,979.4
596.6
704.7
2,002.0
591.9
712.9
2,054.4
587.7
705.7
2,059.9
581.6
683.4
Thrift
institutions
32 Savings deposits, including M M D A s
33 Small time deposits 9
34 Large time deposits 1 0
449.6
320.8
91.2
453.1
345.0
103.0
571.5
339.2
114.7
715.4
299.3
116.1
675.6
304.6
112.7
688.2
302.8
113.9
702.6
301.1
115.3
715.4
299.3
116.1
Money market mutual
35 Retail
36 Institution-only
832.0
648.2
925.0
805.6
991.8
1,217.7
943.5
1,260.7
942.6
1,144.1
942.5
1,119.2
945.2
1,211.4
943.5
1,260.7
334.7
170.4
364.2
192.4
376.5
203.0
470.4
211.5
411.1
204.7
408.6
205.8
435.5
210.0
470.4
211.5
23
74
75
26
Ml
components
Currency 3
Travelers checks 4
Demand deposits 5
Other checkable deposits 6
Nontransaction
77 In M 2 7
28 In M 3 only 8
components
funds
Repurchase agreements and
37 Repurchase agreements 1 2
38 Eurodollars 1 2
eurodollars
Footnotes appear on following page.
A14
DomesticNonfinancialStatistics • March 2003
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the B o a r d ' s H.6 (508) weekly
statistical release. Historical data starting in 1959 are available f r o m the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal
Reserve System, Washington, D C 20551.
2. Composition of the money stock measures 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 d e m a n d 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 M M D A s ) , (2) small-denomination time
deposits (time deposits—including retail R P s — i n 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 M1.
M3: M 2 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) R P
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 deposit-
ory institutions, the U.S. government, money market funds, and foreign banks and official
institutions. Seasonally adjusted M 3 is calculated by summing large time deposits, institutional money f u n d balances, R P liabilities, and eurodollars, each seasonally adjusted separately, and adding this result to seasonally adjusted M 2 .
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository
institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers.
Travelers checks issued by depository institutions are included in demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other than those
owed to depository institutions, the U.S. government, and foreign banks and official institutions, less cash items in the process of collection and Federal Reserve float.
6. Consists of N O W 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 M M D A s ) , (2) small time deposits, and (3) retail
money fund balances.
8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) R P 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
1.26
COMMERCIAL BANKS IN THE UNITED STATES
A15
Assets and Liabilities1
A. All commercial banks
Billions of dollars
Wednesday figures
Monthly averages
Account
2002
2001
Dec.
June'
July
Aug.
Sept.'
2002
Oct.'
Nov.'
Dec.
Dec. 4
Dec. 11
Dec. 18
Dec. 25
Seasonally adjusted
Assets
1 Bank credit
2
Securities in bank credit
U.S. government securities
4
Other securities
Loans and leases in bank credit 2
6
Commercial and industrial
Real estate
7
8
Revolving home equity
9
Other
10
Consumer
11
Security 3
Other loans and leases
1?
n Interbank loans
14 Cash assets 4
15 Other assets 5
....
16 Total assets 6
17
18
19
20
21
22
73
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities) 7
5,451.0
1,496.8
856.2'
640.6 r
3,954.2
1,031.4 r
1,784.5
155.5
1,628.9
557.9 r
146.8 r
433.7'
293.1
297.5
486.3
5,540.8
1,562.5
909.3
653.3
3,978.3
993.5
1,838.4
186.1
1,652.4
568.8
170.2
407.4
282.4
306.7
475.6
5,591.5'
1,594.6'
918.9'
675.8'
3,996.9'
981.9'
1,869.2
192.9
1,676.3
564.7
178.1'
403.0'
288.6
309.4
484.0
5,673.2'
1,632.9'
946.3'
686.6'
4,040.2'
981.8'
1,900.7
197.7
1,703.0
574.8
176.7'
406.3
305.6
318.1
499.5
5,730.4
1,643.5
962.9
680.6
4,086.9
975.1
1,935.0
200.9
1,734.2
582.8
181.4
412.6
318.3
317.2
498.7
5,759.7
1,643.1
972.4
670.7
4,116.6
969.9
1,967.4
204.9
1,762.6
584.8
183.1
411.3
326.8
318.7
512.0
5,837.4
1,688.0
1,001.4
686.6
4,149.4
967.3
2,000.1
207.7
1,792.3
585.6
186.7
409.7
328.3
315.0
517.8
5,885.8
1,714.3
1,012.3
702.1
4,171.4
965.0
2,020.6
212.4
1,808.2
587.0
191.6
407.2
331.5
317.5
517.9
5,839.7
1,679.2
1,006.4
672.8
4,160.5
969.4
2,012.3
209.7
1,802.6
584.7
185.4
408.6
319.9
300.0
508.2
5,905.9
1,719.4
1,025.7
693.7
4,186.5
967.4
2,030.0
211.1
1,818.9
587.0
193.6
408.4
327.8
326.6
530.0
5,896.6
1,696.7
997.8
698.9
4,200.0
965.5
2,021.4
213.1
1,808.3
589.2
212.4
411.5
334.6
316.5
507.4
5,912.8
1,725.4
1,010.3
715.1
4,187.3
966.2
2,017.0
212.8
1,804.3
588.0
202.6
413.5
346.2
333.2
517.2
6,454.5
6,529.9
6,598.2 r
6,721.4 r
6,789.6
6,841.8
6,922.9
6,976.9
6,892.2
7,014.5
6,978.9
7,033.4
4.239.8
640.9
3.598.9
981.2
2,617.8
1,245.5
402.9'
842.6'
150.1
360.8
4,377.4
597.4
3,780.0
1,036.1
2,743.9
1,232.3
380.2
852.1
89.6
378.4
4,414.0
612.2
3,801.8
1,048.1
2,753.7
1,231.7
386.1'
845.6'
99.2
408.0
4,460.5
599.1
3,861.4
1,049.2
2,812.2
1,292.7
405.0'
887.7'
94.1
430.4
4,473.4
584.0
3,889.4
1,043.2
2,846.2
1,322.2
416.3
905.9
100.3
435.4
4,482.9
611.4
3,871.5
1,019.9
2,851.6
1,332.6
415.2
917.3
119.5
440.0
4,500.1
606.2
3,894.0
1,002.5
2,891.5
1,364.4
421.0
943.5
122.4
444.4
4,483.8
613.8
3,870.0
978.5
2,891.5
1,396.9
416.1
980.8
150.6
453.4
4,492.8
579.7
3,913.0
994.7
2,918.3
1,343.3
414.5
928.8
135.6
431.3
4,478.2
587.7
3,890.6
981.7
2,908.8
1,426.4
423.4
1,003.0
163.9
446.6
4,473.1
611.2
3,861.9
984.1
2,877.8
1,408.9
414.1
994.8
151.0
453.7
4,508.9
650.0
3,858.9
979.3
2,879.6
1,410.5
416.0
994.5
146.7
466.3
5,996.3
6,077.7
6,152.9
6,277.7
6,331.4
6,375.0
6,431.4
6,484.7
6,403.0
6,515.1
6,486.8
6,532.4
458.2
452.2
445.3'
443.7'
458.2
466.8
491.5
492.1
489.1
499.3
492.1
500.9
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit 2 . . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Credit cards and related plans . .
Other
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets 5
46 Total assets 6
47
48
49
50
51
52
53
54
55
56
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
57 Total liabilities
58 Residual (assets less liabilities) 7
Footnotes appear on p. A21.
5,483.8
1,504.1
861.1'
643.1'
3,979.7
1,031.1'
1,788.8
155.7
1,633.1
567.4'
232.0
335.4'
153.2'
439.2'
299.4
317.3
489.4
5,535.3
1,558.4
906.5
651.9
3,976.9
995.7
1,839.4
186.3
1,653.1
564.6
221.0
343.6
169.2
408.0
284.5
299.0
473.9
5,564.9'
1,580.5'
910.6'
669.9'
3,984.4'
980.9'
1,868.5
192.7
1,675.8
558.9'
215.3
343.6'
173.5'
402.6'
282.8
300.2
482.8
5,650.7'
1,624.3'
940.0'
684.3'
4,026.5'
976.3'
1,901.8
197.8
1,704.0
571.3
224.4
346.9
172.2'
404.9'
299.2
303.8
496.8
5,723.5
1,639.7
959.4
680.3
4,083.8
973.0
1,937.2
201.9
1,735.3
582.3
231.2
351.1
179.6
411.8
310.5
314.1
501.2
5,763.7
1,642.4
968.6
673.8
4,121.3
971.2
1,969.6
205.4
1,764.1
585.4
232.2
353.2
185.5
409.6
321.5
321.0
510.8
5,854.0
1,692.2
1,002.3
690.0
4,161.8
968.6
2,005.1
208.5
1,796.7
588.2
232.0
356.2
190.3
409.5
332.2
325.0
519.0
5,922.6
1,723.3
1,018.0
705.3
4,199.3
964.8
2,025.4
212.5
1,812.9
597.1
239.2
357.9
200.5
411.5
338.4
338.1
521.3
5,865.0
1,690.9
1,014.3
676.6
4,174.1
968.0
2,016.9
210.1
1,806.8
589.1
233.1
356.0
189.2
410.9
333.3
312.2
512.2
5,933.0
1,728.6
1,032.6
695.9
4,204.5
961.9
2,036.8
211.3
1,825.5
593.2
236.4
356.8
204.4
408.1
335.8
324.8
529.5
5,936.2
1,704.9
1,004.5
700.4
4,231.3
964.7
2,024.8
213.3
1,811.5
599.8
241.8
358.1
226.0
415.8
347.1
339.3
510.5
5,950.7
1,729.9
1,013.3
716.6
4,220.8
968.4
2,022.4
213.0
1,809.5
602.8
243.8
359.0
209.1
418.1
341.3
348.9
519.1
6,516.3
6,517.0
6,555.5 r
6,675.4 r
6,774.0
6,841.9
6,954.4
7,044.5
6,946.6
7,046.8
7,056.7
7,084.1
4,290.4
669.5
3,620.9
995.5
2,625.4
1,245.4
404.5'
840.9'
156.9
366.4
4,365.2
594.4
3,770.8
1,033.8
2,737.0
1,231.3
377.7
853.6
85.7
375.5
4,384.9
604.7
3,780.1
1,037.1
2,743.0
1,221.7
382.1'
839.7'
90.0
399.1
4,413.7
583.8
3,829.9
1,033.5
2,796.4
1,272.6
399.8'
872.8'
91.1
427.6
4,441.4
577.8
3,863.6
1,028.6
2,834.9
1,319.6
409.5
910.1
100.9
435.5
4,467.8
606.2
3,861.6
1,013.8
2,847.8
1,334.5
413.5
921.0
118.9
440.1
4,520.0
611.8
3,908.2
1,009.4
2,898.8
1,367.6
418.2
949.5
126.0
450.0
4,533.5
641.4
3,892.1
992.4
2,899.8
1,396.5
417.5
979.0
157.0
460.5
4,535.4
591.9
3,943.5
1,006.0
2,937.5
1,346.7
414.6
932.1
137.3
434.4
4,511.9
588.5
3,923.4
996.5
2,926.9
1,413.3
421.3
992.0
168.6
452.4
4,521.8
637.0
3,884.9
998.1
2,886.7
1,415.7
417.6
998.1
155.6
459.1
4,545.4
676.8
3,868.6
995.5
2,873.2
1,408.4
417.6
990.8
157.1
477.3
6,059.1
6,057.7
6,095.7
6,205.0
6,297.5
6,361.3
6,463.6
6,547.6
6,453.7
6,546.2
6,552.2
6,588.2
457.2
459.3
459.8'
470.4'
476.6
480.6
490.7
496.9
492.9
500.6
504.5
495.9
A16
1.26
Domestic Financial Statistics • March 2003
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities 1 —Continued
B. Domestically chartered commercial banks
Billions of dollars
Monthly averages
Account
2001
Dec.
Wednesday figures
2002
June'
July
Aug.
Sept.'
2002
Oct.'
Nov.'
Dec.
Dec. 4
Dec. 11
Dec. 18
Dec. 25
Seasonally adjusted
Assets
1 Bank credit
2
Securities in bank credit
U.S. government securities
Other securities
4
5
Loans and leases in bank credit 2
Commercial and industrial
6
7
Real estate
Revolving home equity
8
9
Other
Consumer
10
11
Security 3
12
Other loans and leases
13 Interbank loans
14 Cash assets 4
15 Other assets 5
....
16 Total assets 6
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities) 7
4,854.8
1,255.2
774.1'
481.1'
3,599.6
836.1'
1,766.7
155.5
1,611.2
557.9'
71.9'
367.0'
272.5
258.2
456.8
4,935.2
1,324.2
833.2
491.1
3,610.9
800.4
1,820.0
186.1
1,633.9
568.8
84.7
337.1
262.2
261.2
447.8
4,977.2'
1,353.4'
842.4'
511.0'
3,623.8'
790.7'
1,850.4
192.9
1,657.5
564.7
87.2'
330.8'
271.1
263.4
454.5
5,052.2'
1,383.0'
864.4'
518.5'
3,669.3
791.9'
1,881.8
197.7
1,684.2'
574.8
86.2'
334.7
287.1
271.6
470.5
5,111.7
1,396.0
876.2
519.8
3,715.7
789.6
1,916.0
200.9
1,715.1
582.8
86.7
340.6
296.6
271.2
470.2
5,145.6
1,398.0
883.6
514.4
3,747.6
788.6
1,947.9
204.9
1,743.0
584.8
86.0
340.3
301.9
273.3
476.9
5,216.6
1,439.0
908.6
530.4
3,777.6
788.2
1,980.3
207.7
1,772.5
585.6
81.5
341.9
301.8
274.1
479.8
5,251.1
1,450.5
911.1
539.4
3,800.6
786.8
2,001.2
212.4
1,788.8
587.0
81.4
344.1
299.7
275.0
476.1
5,221.9
1,433.4
915.2
518.2
3,788.5
788.4
1,993.1
209.7
1,783.4
584.7
79.0
343.4
293.2
259.8
470.6
5,254.6
1,451.9
918.5
533.4
3,802.7
786.7
2,010.4
211.1
1,799.3
587.0
76.3
342.2
291.1
286.3
485.7
5,253.8
1,432.2
896.5
535.7
3,821.6
787.4
2,001.9
213.1
1,788.8
589.2
94.7
348.4
303.8
268.9
468.4
5,270.1
1,457.9
908.9
549.0
3,812.2
788.0
1,997.6
212.8
1,784.9
588.0
86.6
351.9
313.4
289.3
475.2
5,769.3
5,831.1
5,891.4 r
6,006.9 r
6,075.1
6,122.8
6,197.0
6,226.5
6,170.2
6,242.1
6,219.0
6,272.4
3,799.3
629.7
3,169.6
554.3
2,615.3
1,047.1
379.0'
668.2'
192.5
278.8
3,872.2
587.1
3,285.1
543.8
2,741.3
1,039.4
358.8
680.5
175.7
292.9
3,915.2
602.3
3,312.8
562.3
2,750.5
1,030.4
365.3'
665.1'
181.0
317.1
3,965.5
589.1
3,376.4
569.9
2,806.5
1,078.9
383.4'
695.5'
179.7
333.6
3,987.4
573.9
3,413.5
573.3
2,840.3
1,098.2
393.6
704.6
184.1
342.7
4,016.6
601.6
3,415.0
571.3
2,843.7
1,098.8
392.1
706.7
191.9
340.3
4,051.6
596.7
3,454.9
571.7
2,883.2
1,109.9
395.5
714.5
196.8
345.3
4,060.1
604.3
3,455.7
570.8
2,885.0
1,113.4
386.2
727.2
211.4
353.5
4,049.8
570.6
3,479.2
567.6
2,911.5
1,088.6
385.0
703.5
208.6
332.5
4,046.3
578.7
3,467.7
567.6
2,900.1
1,136.2
397.8
738.4
215.2
344.9
4,048.2
601.9
3,446.3
573.3
2,873.0
1,121.3
383.8
737.5
205.6
352.7
4,090.1
640.6
3,449.5
575.1
2,874.4
1,116.0
383.8
732.2
208.4
369.1
5,317.7
5,380.2
5,443.7
5,557.7
5,612.4
5,647.5
5,703.6
5,738.3
5,679.5
5,742.7
5,727.8
5,783.7
451.6
450.9
447.7'
449.2'
462.8
475.2
493.3
488.1
490.7
499.4
491.2
488.7
Not seasonally adjusted
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit 2 . . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Credit cards and related plans . .
Other
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets 5
4,880.1
1,262.5
779.0'
483.6'
3,617.6'
834.1'
1,771.1
155.7
1,615.4
567.4'
232.0
335.4'
74.3'
370.7'
278.8
275.5
459.2
4,932.7
1,320.1
830.4
489.7
3,612.6
803.7
1,821.0
186.3
1,634.7
564.6
221.0
343.6
85.2
338.0
264.2
255.5
447.2
4,956.6'
1,339.3'
834.1'
505.2'
3,617.3
791.0'
1,849.8
192.7
1,657.0
558.9'
215.3
343.6'
85.9'
331.8'
265.3
256.1
454.4
5,036.0'
1,374.3'
858.1'
516.1'
3,661.7
788.0'
1,883.0
197.8
1,685.2
571.3
224.4
346.9
85.0'
334.5
280.7
258.7
468.3
5,108.2
1,392.3
872.7
519.6
3,715.9
787.6
1,918.1
201.9
1,716.2
582.3
231.2
351.1
87.7
340.2
288.8
268.0
472.2
5,149.6
1,397.3
879.8
517.6
3,752.3
789.2
1,950.1
205.4
1,744.6
585.4
232.2
353.2
88.3
339.4
296.5
274.8
476.3
5,230.4
1,443.2
909.4
533.8
3,787.2
788.0
1,985.3
208.5
1,776.8
588.2
232.0
356.2
83.9
341.7
305.6
281.6
481.3
5,278.9
1,459.5
916.8
542.7
3,819.4
785.1
2,006.0
212.5
1,793.5
597.1
239.2
357.9
84.4
346.7
306.6
293.0
478.4
5,244.2
1,445.1
923.1
522.0
3,799.1
786.3
1,997.7
210.1
1,787.6
589.1
233.1
356.0
81.2
344.8
306.5
269.5
473.7
5,273.3
1,461.1
925.4
535.6
3,812.2
781.4
2,017.2
211.3
1,805.9
593.2
236.4
356.8
79.3
341.1
299.1
282.7
483.4
5,283.9
1,440.4
903.2
537.2
3,843.5
785.4
2,005.3
213.3
1,792.0
599.8
241.8
358.1
101.7
351.2
316.3
288.7
470.5
5,299.1
1,462.4
911.9
550.5
3,836.7
787.6
2,003.0
213.0
1,790.1
602.8
243.8
359.0
88.9
354.2
308.4
302.0
476.3
5,820.4
5,824.4
5,857.7 r
5,968.9 r
6,062.3
6,122.5
6,223.4
6,281.3
6,218.2
6,262.6
6,283.3
6,310.2
47
Transaction
48
Nontransaction
49
50
Large time
51
Other
52 Borrowings
53
From banks in the U.S
54
From others
55 Net due to related foreign offices
56 Other liabilities
3,837.6
657.6
3,180.0
557.2
2,622.8
1,047.0
380.5'
666.5'
196.4
283.2
3,861.8
584.3
3,277.5
543.0
2,734.4
1,038.4
356.3
682.1
174.5
291.4
3,895.0
594.9
3,300.1
560.2
2,739.9
1,020.4
361.3'
659.1'
175.8
310.4
3,933.0
574.0
3,359.1
568.3
2,790.8
1,058.8
378.2'
680.6'
178.7
332.0
3,967.4
567.6
3,399.8
570.7
2,829.1
1,095.6
386.8
708.8
183.6
342.2
4,008.9
596.3
3,412.5
572.5
2,840.1
1,100.8
390.4
710.4
192.5
341.2
4,067.8
602.2
3,465.7
575.3
2,890.4
1,113.1
392.7
720.5
201.5
351.7
4,098.1
631.2
3,466.9
573.8
2,893.1
1,113.0
387.7
725.3
215.6
359.1
4,085.7
582.5
3,503.2
572.6
2,930.7
1,092.0
385.2
706.8
212.1
336.9
4,069.7
579.2
3,490.5
572.5
2,918.0
1,123.1
395.7
727.4
219.9
350.7
4,085.9
626.9
3,459.1
577.3
2,881.8
1,128.1
387.4
740.7
208.9
357.2
4,110.6
666.5
3,444.1
576.3
2,867.8
1,113.9
385.4
728.5
214.1
377.1
57 Total liabilities
5,364.3
5,366.1
5,401.7
5,502.6
5,588.8
5,643.3
5,734.1
5,785.8
5,726.7
5,763.3
5,780.2
5,815.7
456.2'
458.4
456.0'
466.3'
473.5
479.2
489.3
495.5
491.5
499.3
503.1
494.5
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46 Total assets 6
Liabilities
58 Residual (assets less liabilities) 7
Footnotes appear on p. A21.
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
A17
Assets and Liabilities 1 —Continued
C. Large domestically chartered commercial banks
Billions of dollars
Wednesday figures
Monthly averages
Account
Dec. r
2002
2002
2001
June r
July'
Aug.'
Sept.'
Oct.'
Nov.'
Dec.
Dec. 4
Dec. 11
Dec. 18
Dec. 25
Seasonally adjusted
Assets
1 Bank credit
Securities in bank credit
U.S. government securities
4
Trading account
Investment account
5
6
Other securities
7
Trading account
8
Investment account
9
State and local government . .
Other
Loans and leases in bank credit 2 . . . .
Commercial and industrial
Bankers acceptances
13
14
Other
IS
Real estate
Revolving home equity
17
Other
Consumer
18
19
Security 3
Federal funds sold to and
20
repurchase agreements
with broker-dealers
Other
22
State and local government
Agricultural
23
24
Federal funds sold to and
repurchase agreements with
others
All other loans
Lease-financing receivables
76
27 Interbank loans
28
Federal funds sold to and
repurchase agreements with
commercial banks
?9
Other
30 Cash assets 4
31 Other assets 5
?
in
n
12
16
71
32 Total assets 6
33
34
35
36
37
38
39
40
41
42
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
43 Total liabilities
44 Residual (assets less liabilities) 7
Footnotes appear on p. A21.
2,662.3
636.1
378.9
33.9
345.0
257.2
130.0
127.2
27.3
99.9
2,026.2
536.4
.0
536.4
864.9
98.4
766.5
292.5
64.0
2,642.0
684.0
400.3
42.4
357.9
283.7
148.3
135.4
27.3
108.0
1,958.0
500.1
.0
500.1
862.0
116.9
745.2
282.2
77.2
2,675.0
713.6
411.1
43.1
368.0
302.5
168.8
133.7
28.3
105.5
1,961.4
488.7
.0
488.7
882.1
121.6
760.5
282.2
79.4
2,724.4
736.9
427.7
48.0
379.6
309.3
174.5
134.8
28.0
106.8
1,987.5
487.7
.0
487.7
901.1
124.6
776.6
289.2
78.2
2,762.5
745.8
432.1
42.6
389.5
313.7
172.7
141.0
28.4
112.6
2,016.6
484.2
.0
484.2
922.0
126.8
795.2
296.0
78.5
2,775.6
743.7
435.4
37.8
397.6
308.3
161.5
146.7
28.7
118.0
2,031.9
482.5
.0
482.5
941.5
129.5
811.9
296.5
77.6
2,828.5
780.1
455.6
48.1
407.5
324.5
171.8
152.7
29.1
123.6
2,048.4
480.9
.0
480.9
965.0
131.7
833.2
295.2
73.2
2,855.6
787.9
455.6
44.5
411.1
332.4
176.2
156.2
29.4
126.8
2,067.6
478.8
.0
478.8
983.9
135.7
848.3
295.0
73.0
2,827.8
769.8
458.4
47.6
410.8
311.4
158.0
153.4
29.0
124.4
2,058.0
480.6
n.a.
480.6
976.0
133.3
842.7
294.2
70.7
2,857.1
790.4
463.7
47.6
416.1
326.7
170.7
156.0
29.3
126.7
2,066.7
479.4
n.a.
479.4
989.5
134.6
854.9
294.6
68.0
2,852.8
769.7
442.5
41.7
400.8
327.2
171.2
156.1
29.5
126.6
2,083.1
479.7
n.a.
479.7
980.3
136.1
844.2
295.4
86.3
2,876.7
798.1
455.1
42.5
412.6
343.0
184.7
158.4
29.7
128.6
2,078.6
479.9
n.a.
479.9
983.1
135.9
847.2
296.0
77.9
48.6
15.5
15.0
9.9
64.7
12.5
13.0
9.1
66.4
13.0
12.8
9.0
66.3
11.9
12.9
8.2
67.9
10.5
13.0
8.2
66.8
10.8
12.9
8.1
62.0
11.3
12.1
8.1
62.0
11.0
11.8
8.1
60.3
10.4
12.0
8.1
56.7
11.3
11.8
8.1
75.8
10.6
11.8
8.1
66.0
11.9
11.7
8.1
28.9
80.5
134.2
171.9
17.6
70.0
126.8
163.5
13.7
67.1
126.3
165.0
16.6
67.5
126.1
176.5
19.8
69.2
125.9
182.0
19.2
69.4
124.2
181.7
18.5
72.4
123.0
180.3
22.4
72.8
121.8
178.7
19.6
74.0
122.7
174.9
19.6
73.4
122.3
172.5
26.2
73.2
122.1
182.5
26.9
73.3
121.7
186.8
102.0
69.9
149.0
326.5
77.2
86.2
143.2
306.5
77.2
87.7
142.5
314.1
86.8
89.7
146.9
325.2
89.2
92.9
144.4
323.1
84.0
97.7
144.1
331.8
87.3
93.0
145.0
331.7
85.3
93.4
146.4
326.2
83.2
91.7
134.4
320.4
79.3
93.2
154.0
334.1
90.7
91.8
142.7
326.9
86.7
100.1
156.5
324.4
3,267.4
3,211.0
3,252.6
3,329.8
3,369.0
3,390.2
3,442.3
3,463.8
3,414.4
3,474.5
3,461.6
3,501.3
1,816.6
326.3
1,490.3
250.2
1,240.1
719.0
264.7
454.3
182.3
226.0
1,817.8
286.8
1,531.1
244.3
1,286.7
699.5
237.9
461.6
164.0
228.6
1,847.1
292.3
1,554.9
261.5
1,293.4
685.7
240.3
445.4
171.2
253.0
1,872.9
282.4
1,590.5
268.3
1,322.1
720.6
251.3
469.3
171.2
267.3
1,883.6
268.4
1,615.2
270.8
1,344.4
724.0
258.0
466.0
175.4
274.5
1,899.9
286.9
1,612.9
266.4
1,346.6
721.7
257.8
463.9
179.5
271.3
1,924.4
282.6
1,641.8
265.3
1,376.5
733.5
264.2
469.3
185.5
274.4
1,936.3
288.4
1,647.9
261.8
1,386.2
724.9
246.2
478.7
199.0
283.1
1,926.8
268.6
1,658.2
260.2
1,398.0
706.8
249.8
457.0
196.4
262.4
1,924.4
271.9
1,652.5
258.3
1,394.2
752.8
262.2
490.6
202.3
272.5
1,930.7
289.8
1,640.9
263.8
1,377.1
731.5
241.5
490.0
193.1
282.1
1,960.2
310.0
1,650.2
266.1
1,384.2
719.3
236.4
483.0
195.5
299.6
2,943.9
2,909.9
2,957.0
3,032.0
3,057.5
3,072.3
3,117.8
3,143.3
3,092.3
3,152.0
3,137.3
3,174.6
323.5
301.1
295.6
297.8
311.6
317.9
324.5
320.5
322.1
322.5
324.3
326.7
A18
1.26
DomesticNonfinancialStatistics • March 2003
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities 1 —Continued
C. Large domestically chartered commercial banks—Continued
Billions of dollars
Monthly averages
Account
2001
Dec. r
Wednesday figures
2002
June'
July'
Aug.'
Sept.'
2002
Oct.'
Nov.'
Dec.
Dec. 4
Dec. 11
Dec. 18
Dec. 25
Not seasonally adjusted
Assets
45 Bank credit
46
Securities in bank credit
47
U.S. government securities
48
Trading account
49
Investment account
50
Mortgage-backed securities .
Other
51
52
One year or less
53
One to five years
54
More than five years . . . .
55
Other securities
Trading account
56
57
Investment account
58
State and local government .
Other
59
60
Loans and leases in bank credit 2 . . .
61
Commercial and industrial
62
Bankers acceptances
63
Other
64
Real estate
65
Revolving home equity
Other
66
67
Commercial
Consumer
68
69
Credit cards and related plans .
Other
70
71
Security 3
12
Federal funds sold to and
repurchase agreements
with broker-dealers
73
Other
74
State and local government
75
Agricultural
Federal funds sold to and
lb
repurchase agreements
with others
77
All other loans
78
Lease-financing receivables
79 Interbank loans
80
Federal funds sold to and
repurchase agreements
with commercial banks
81
Other
82 Cash assets 4
83 Other assets 5
84 Total assets 6
85
86
87
88
89
90
91
92
93
94
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign offices
Other liabilities
95 Total liabilities
96 Residual (assets less liabilities) 1
Footnotes appear on p. A21.
2,675.4
641.0
381.3
34.1
347.2
280.5
66.7
17.6
36.2
12.9
259.7
131.2
128.5
27.6
100.9
2,034.4
534.3
.0
534.3
866.7
98.1
453.4
315.2
295.5
127.3
168.2
66.2
2,642.1
680.3
398.0
42.2
355.9
277.6
78.2
14.9
50.0
13.3
282.3
147.5
134.7
27.2
107.5
1,961.8
501.3
.0
501.3
863.9
117.3
435.2
311.4
282.1
111.8
170.2
77.9
2,659.7
701.6
404.9
42.4
362.5
287.5
75.0
18.7
43.7
12.7
296.7
165.5
131.2
27.7
103.5
1,958.1
488.4
.0
488.4
882.4
121.9
448.8
311.7
280.3
110.0
170.4
78.3
2,711.1
730.6
423.7
47.6
376.1
304.7
71.4
17.4
42.2
11.8
306.9
173.1
133.8
27.8
105.9
1,980.5
485.3
.0
485.3
901.6
124.9
464.5
312.2
287.0
114.2
172.8
77.1
2,756.9
743.1
429.7
42.4
387.3
308.2
79.1
19.9
46.3
12.9
313.4
172.6
140.9
28.4
112.5
2,013.8
483.8
.0
483.8
922.4
127.3
482.2
312.9
293.5
117.9
175.6
79.7
2,774.3
744.2
432.8
37.6
395.2
313.1
82.2
21.8
49.9
10.4
311.4
163.2
148.2
29.0
119.2
2,030.1
483.2
.0
483.2
940.3
129.5
495.3
315.5
293.6
116.4
177.2
80.0
2,836.6
784.5
456.6
48.2
408.4
324.6
83.8
23.2
47.1
13.5
327.9
173.6
154.3
29.4
124.9
2,052.1
481.7
.0
481.7
966.9
131.9
518.7
316.4
293.9
114.0
180.0
75.3
2,870.0
794.1
458.4
44.8
413.7
317.0
96.6
24.1
56.2
16.3
335.7
177.9
157.8
29.7
128.1
2,075.9
477.0
.0
477.0
985.8
135.2
534.7
315.9
298.2
116.9
181.3
75.9
2,844.3
781.0
465.8
48.4
417.4
332.5
84.9
22.2
46.8
15.8
315.2
159.9
155.3
29.4
125.9
2,063.3
479.7
n.a.
479.7
979.2
133.3
529.8
316.1
294.5
114.1
180.3
72.4
2,865.5
797.0
468.0
48.0
420.0
328.0
92.0
22.1
54.0
15.9
328.9
171.8
157.1
29.5
127.6
2,068.6
475.0
n.a.
475.0
993.7
134.3
543.4
315.9
295.6
114.7
180.9
70.6
2,869.7
775.0
446.2
42.0
404.2
304.0
100.3
26.6
57.8
15.9
328.8
172.0
156.8
29.6
127.2
2,094.7
477.8
n.a.
477.8
981.7
135.8
529.7
316.1
298.3
116.8
181.5
93.1
2,884.4
797.8
453.3
42.3
411.0
308.2
102.7
27.6
58.7
16.5
344.5
185.5
159.1
29.9
129.2
2,086.6
478.3
n.a.
478.3
983.1
135.3
532.4
315.5
300.8
119.2
181.6
80.4
50.2
16.0
15.0
9.8
65.3
12.6
13.0
9.3
65.5
12.8
12.8
9.2
65.3
11.7
12.9
8.2
69.0
10.7
13.0
8.2
68.8
11.1
12.9
8.0
63.7
11.6
12.1
8.0
64.5
11.4
11.8
8.1
61.7
10.7
12.0
8.0
58.9
11.7
11.8
8.0
81.7
11.4
11.8
8.0
68.1
12.3
11.7
8.0
29.8
82.4
134.7
175.7
17.6
70.4
126.4
168.5
13.7
67.3
125.6
164.0
16.6
67.0
124.8
172.0
19.8
69.4
124.0
177.0
19.2
69.3
123.6
177.3
18.5
72.9
122.7
182.1
22.4
74.5
122.2
182.9
19.6
75.4
122.5
179.7
19.6
72.1
122.2
173.1
26.2
75.7
122.1
191.8
26.9
75.2
122.2
185.7
104.2
71.5
160.1
328.8
79.5
89.0
139.1
305.9
76.8
87.2
137.1
313.9
84.6
87.4
137.9
323.0
86.8
90.2
141.6
325.1
82.0
95.3
145.1
331.1
88.2
93.9
148.0
333.1
87.3
95.5
157.2
328.5
85.5
94.2
138.6
323.6
79.6
93.5
151.4
331.8
95.3
96.4
155.7
328.9
86.2
99.5
164.7
325.4
3,297.6
3,211.6
3,230.9
3,300.5
3,357.5
3,385.1
3,456.5
3,495.4
3,442.7
3,478.4
3,502.6
3,517.2
1,834.3
344.3
1,490.0
253.1
1,236.9
718.8
266.3
452.5
186.3
230.4
1,816.3
285.2
1,531.1
243.6
1,287.6
698.5
235.4
463.1
162.8
227.0
1,839.1
287.3
1,551.8
259.4
1,292.4
675.7
236.3
439.4
166.0
246.4
1,856.4
271.0
1,585.5
266.7
1,318.8
700.6
246.1
454.4
170.2
265.7
1,874.8
264.0
1,610.9
268.3
1,342.6
721.4
251.1
470.3
175.0
274.0
1,896.8
283.0
1,613.9
267.6
1,346.3
723.6
256.0
467.6
180.2
272.2
1,933.4
285.5
1,647.9
268.9
1,379.0
736.6
261.3
475.3
190.2
280.8
1,952.5
304.9
1,647.6
264.8
1,382.8
724.5
247.7
476.9
203.2
288.7
1,944.0
274.5
1,669.4
265.1
1,404.3
710.2
249.9
460.3
199.9
266.8
1,930.2
270.5
1,659.8
263.3
1,396.5
739.7
260.1
479.6
206.9
278.2
1,948.1
306.5
1,641.6
267.8
1,373.8
738.3
245.1
493.2
196.4
286.6
1,963.3
326.3
1,637.0
267.2
1,369.7
717.2
238.0
479.3
201.1
307.5
2,969.9
2,904.6
2,927.1
2,992.9
3,045.2
3,072.8
3,141.1
3,169.0
3,120.8
3,155.1
3,169.4
3,189.2
327.7
307.0
303.8
307.6
312.3
312.3
315.4
326.4
321.8
323.3
333.3
328.0
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
A19
Assets and LiabilitiesContinued
D. Small domestically chartered commercial banks
Billions of dollars
Wednesday figures
Monthly averages
Account
Dec/
2002
2002
2001
June r
July'
Aug.'
Sept.'
Oct.'
Nov.'
Dec.
Dec. 4
Dec. 11
Dec. 18
Dec. 25
2,394.1
663.6
456.8
206.8
1,730.4
307.7
1,017.1
76.4
940.7
290.5
8.2
106.9
118.3
125.4
150.1
2,397.5
661.5
454.8
206.7
1,736.0
307.4
1,020.9
76.5
944.5
292.5
8.3
107.0
118.7
132.3
151.6
2,401.0
662.5
454.0
208.4
1,738.5
307.7
1,021.6
77.0
944.6
293.9
8.4
107.0
121.3
126.2
141.6
2,393.4
659.8
453.8
206.0
1,733.6
308.1
1,014.5
76.8
937.7
292.0
8.7
110.3
126.5
132.8
150.8
Seasonally adjusted
Assets
1 Bank credit
Securities in bank credit
U.S. government securities
4
Other securities
5
Loans and leases in bank credit 2
6
Commercial and industrial
7
Real estate
Revolving home equity
8
9
Other
Consumer
11
Security 3
Other loans and leases
13 Interbank loans
14 Cash assets 4
15 Other assets 5
?.
....
in
i?
16 Total assets 6
17
18
19
70
?l
??
73
74
75
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities) 7
2,327.8
646.0
436.8
209.2
1,681.8
304.2
980.7
73.1
907.6
285.6
8.0
103.3
110.6
124.7
145.2
2,349.2
650.2
444.1
206.1
1,699.0
305.5
994.0
74.1
919.9
286.8
8.2
104.6
114.6
126.9
147.1
2,370.0
654.4
448.2
206.2
1,715.6
306.1
1,006.4
75.3
931.1
288.3
8.4
106.4
120.2
129.2
145.1
2,388.0
658.8
452.9
205.9
1,729.2
307.4
1,015.3
76.0
939.3
290.4
8.3
107.8
121.5
141.3
2,302.3
639.9
431.4
208.5
1,662.4
302.0
968.3
71.3
897.0
282.6
7.7
101.9
106.1
120.9
140.5
148.1
2,395.5
662.6
455.6
207.0
1,732.9
308.0
1,017.3
76.7
940.6
292.0
8.4
107.2
120.9
128.7
149.9
2,501.9
2,620.1
2,638.8
2,677.1
2,706.1
2,732.6
2,754.7
2,762.6
2,755.8
2,767.6
2,757.4
2,771.1
1,982.7
303.4
1,679.3
304.1
1,375.2
328.1
114.2
213.9
10.1
52.8
2,054.3
300.3
1,754.1
299.5
1,454.6
339.9
121.0
219.0
11.7
64.4
2,068.1
310.1
1,758.0
300.8
1,457.2
344.7
125.0
219.7
9.8
64.1
2,092.6
306.7
1,785.9
301.6
1,484.3
358.3
132.1
226.2
8.5
66.3
2,103.8
305.5
1,798.3
302.4
1,495.9
374.2
135.6
238.6
8.6
68.2
2,116.7
314.7
1,802.0
304.9
1,497.1
377.2
134.3
242.8
12.3
69.0
2,127.2
314.2
1,813.1
306.4
1,506.7
376.5
131.3
245.2
11.3
70.9
2,123.8
315.9
1,807.8
309.0
1,498.8
388.5
140.0
248.5
12.4
70.4
2,123.0
302.0
1,821.0
307.5
1,513.5
381.8
135.3
246.5
12.2
70.2
2,122.0
306.8
1,815.2
309.3
1,505.9
383.4
135.6
247.8
13.0
72.4
2,117.5
312.1
1,805.4
309.5
1,495.9
389.8
142.3
247.5
12.6
70.6
2,129.9
330.6
1,799.3
309.0
1,490.2
396.7
147.5
249.2
13.0
69.6
2,373.8
2,470.3
2,486.7
2,525.7
2,554.9
2,575.2
2,585.9
2,595.0
2,587.2
2,590.7
2,590.5
2,609.1
128.1
149.8
152.1
151.4
151.2
157.4
168.8
167.6
168.6
176.9
166.9
162.0
2,192.5
619.1
395.2
223.9
1,573.5
299.7
901.8
57.2
844.7
265.4
7.9
98.6
100.6
109.2
130.4
2,293.2
640.3
432.9
207.4
1,653.0
300.3
958.0
69.2
888.8
286.6
7.5
100.6
98.7
118.0
129.1
Not seasonally adjusted
Assets
?9 Bank credit
30
Securities in bank credit
31
U.S. government securities
37
Other securities
33
Loans and leases in bank credit 2 . . . .
34
Commercial and industrial
35
Real estate
36
Revolving home equity
37
Other
38
Consumer
39
Credit cards and related plans . .
Other
41
Security 3
Other loans and leases
43 Interbank loans
44 Cash assets 4
45 Other assets 5
4n
4?
46 Total assets 6
47
48
49
so
51
5?
53
54
55
56
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
57 Total liabilities
58 Residual (assets less liabilities) 7
Footnotes appear on p. A21.
1,702.1
303.8
995.7
74.6
921.1
288.8
113.3
175.5
8.0
105.8
111.8
126.4
147.1
2,375.4
653.2
447.0
206.2
1,722.2
306.0
1,009.7
75.9
933.8
291.8
115.8
176.0
8.3
106.4
119.2
129.7
145.1
2,393.8
658.7
452.8
205.9
1,735.1
306.3
1,018.4
76.6
941.8
294.3
118.1
176.2
8.6
107.4
123.6
133.7
148.1
2,408.9
665.4
458.4
207.0
1,743.5
308.1
1,020.2
77.3
942.9
298.9
122.3
176.6
8.6
107.7
123.7
135.8
149.9
2,399.9
664.1
457.3
206.8
1,735.8
306.6
1,018.5
76.8
941.7
294.7
119.0
175.7
8.8
107.3
126.8
130.9
150.1
2,407.7
664.1
457.4
206.7
1,743.7
306.4
1,023.5
77.0
946.5
297.6
121.7
175.9
8.8
107.3
126.0
131.3
151.6
2,414.2
665.4
457.0
208.4
1,748.7
307.6
1.023.6
77.5
946.1
301.5
125.0
176.5
8.6
107.4
124.5
133.0
141.6
2,414.6
664.6
458.6
206.0
1,750.1
309.4
1,019.9
77.7
942.2
302.0
124.7
177.3
8.5
110.3
122.7
137.2
150.8
2,668.4
2,704.8
2,737.4
2,767.0
2,786.0
2,775.6
2,784.2
2,780.7
2,793.0
2,055.9
307.6
1,748.3
300.8
1,447.5
344.7
125.0
219.7
9.8
64.1
2,076.6
303.0
1,773.6
301.6
1,472.0
358.3
132.1
226.2
8.5
66.3
2,092.6
303.6
1,789.0
302.4
1,486.5
374.2
135.6
238.6
8.6
68.2
2,112.0
313.4
1,798.7
304.9
1,493.8
377.2
134.3
242.8
12.3
69.0
2,134.4
316.6
1,817.8
306.4
1,511.3
376.5
131.3
245.2
11.3
70.9
2,145.5
326.3
1,819.3
309.0
1,510.3
388.5
140.0
248.5
12.4
70.4
2,141.7
307.9
1,833.8
307.5
1,526.3
381.8
135.3
246.5
12.2
70.2
2,139.5
308.8
1,830.7
309.3
1,521.5
383.4
135.6
247.8
13.0
72.4
2,137.8
320.4
1,817.4
309.5
1,507.9
389.8
142.3
247.5
12.6
70.6
2,147.3
340.2
1,807.1
309.0
1,498.1
396.7
147.5
249.2
13.0
69.6
2,461.4
2,474.5
2,509.6
2,543.6
2,570.5
2,593.0
2,616.8
2,605.9
2,608.2
2,610.8
2,626.5
151.4
152.2
158.7
161.2
166.9
173.9
169.1
169.7
175.9
169.8
166.5
2,297.0
637.7
429.2
208.5
1,659.2
302.6
967.4
70.9
896.5
278.5
105.3
173.2
7.6
103.2
101.3
119.0
140.5
2,324.9
643.7
434.4
209.2
1,681.2
302.7
981.3
72.9
908.5
284.3
110.2
174.1
7.9
104.9
108.7
120.9
145.2
2,351.2
649.2
443.0
99.0
103.1
115.5
130.4
2,290.6
639.8
432.4
207.4
1,650.8
302.4
957.1
69.0
888.1
282.6
109.2
173.4
7.3
101.4
95.7
116.4
141.3
2,522.9
2,612.8
2,626.7
2,003.3
313.3
1,690.0
304.1
1,385.9
328.1
114.2
213.9
10.1
52.8
2,045.5
299.1
1,746.4
299.5
1,446.9
339.9
121.0
219.0
11.7
64.4
2,394.4
128.5
2,204.7
621.5
397.6
223.9
1,583.2
299.8
904.4
57.6
846.8
271.9
104.8
167.2
8.1
206.1
A20
1.26
DomesticNonfinancialStatistics • March 2003
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities 1 —Continued
E. Foreign-related institutions
Billions of dollars
Monthly averages
Account
2001
Dec.
Wednesday figures
2002
June
July
Aug.
Sept.'
2002
Oct.'
Nov.'
Dec.
Dec. 4
Dec. U
Dec. 18
Dec. 25
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit 2
Commercial and industrial
Real estate
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets 5
....
13 Total assets 6
14
15
16
17
18
19
20
21
Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
22 Total liabilities
23 Residual (assets less liabilities) 7
596.2
241.6
82.1
159.5
354.6
195.3
17.7
74.8
66.7
20.6
39.3
29.4
605.6
238.3
76.1
162.2
367.3
193.1
18.4
85.6 r
70.3
20.2
45.5
27.8
614.3 r
241.2
76.4
164.8
373. r
191.2
18.8
91,0 r
72.1
17.5
46.0
29.4
620.9 r
250.0
81.8
168.1
370.9'
189.9
18.8
90.5 r
71.7
18.5
46.5
29.0
618.7
247.4
86.7
160.8
371.3
185.5
19.0
94.8
72.0
21.7
46.0
28.5
614.1
245.0
88.8
156.2
369.0
181.4
19.5
97.1
71.0
24.9
45.4
35.1
620.8
249.0
92.8
156.2
371.8
179.1
19.8
105.1
67.8
26.6
40.9
38.0
634.6
263.8
101.1
162.7
370.8
178.2
19.4
110.2
63.1
31.8
42.5
41.9
617.8
245.8
91.2
154.6
372.0
181.0
19.2
106.5
65.3
26.7
40.2
37.7
651.3
267.5
107.2
160.3
383.8
180.7
19.6
117.3
66.2
36.7
40.4
44.4
642.9
264.5
101.3
163.2
378.4
178.1
19.5
117.7
63.2
30.9
47.6
39.0
642.6
267.5
101.4
166.1
375.1
178.2
19.4
116.0
61.5
32.9
43.9
42.0
685.2
698.8
706.9 r
714.5 r
714.5
719.1
725.9
750.4
722.0
772.3
759.9
761.0
440.5
11.2
429.3
198.4
24.0
174.4
-42.3
82.0
505.2
10.3
494.9
192.9
21.3
171.6
-86.1
85.5
498.9
9.9
489.0
201.3
20.8
180.5
-81.8
90.9
495.1
10.1
485.0
213.8
21.6
192.1
-85.6
96.8
486.0
10.1
475.9
224.0
22.7
201.3
-83.7
92.7
466.3
9.8
456.5
233.8
23.1
210.6
-72.4
99.7
448.5
9.5
439.1
254.5
25.5
229.0
-74.4
99.1
423.7
9.5
414.2
283.5
29.9
253.7
-60.7
99.8
443.0
9.1
433.8
254.7
29.4
225.3
-73.0
98.8
431.9
9.0
422.9
290.2
25.6
264.6
-51.3
101.7
424.9
9.3
415.6
287.6
30.3
257.3
-54.6
101.1
418.9
9.5
409.4
294.5
32.1
262.3
-61.7
97.1
678.6
697.5
709.3
720.0
719.1
727.5
727.7
746.4
723.5
772.4
759.0
748.7
6.6
1.3
-2.4r
-5.5r
-4.6
-8.4
-1.8
4.0
-1.5
-.1
.9
12.3
Not seasonally adjusted
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Assets
Bank credit
Securities in bank credit
U.S. government securities
Trading account
Investment account
Other securities
Trading account
Investment account
Loans and leases in bank credit 2
Commercial and industrial
Real estate
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets 5
40 Total assets 6
41
42
43
44
45
46
47
48
Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
49 Total liabilities
50 Residual (assets less liabilities) 7
Footnotes appear on p. A21.
....
603.7
241.6
82.1
13.3
68.9
159.5
105.0
54.5
362.1
197.0
17.7
78.8
68.5
20.6
41.7
30.2
602.6
238.3
76.1
10.4
65.7
162.2
103.5
58.7
364.3
191.9
18.4
84.0
70.0
20.2
43.5
26.6
608.2 r
241.2
76.4
10.7
65.8
164.8
108.4
56.4
367.0 r
189.9
18.8
87.5 r
70.8
17.5
44.1
28.3
614.7'
250.0
81.8
13.0
68.8
168.1
109.8
58.4
364.8 r
188.3
18.8
87.2'
70.4
18.5
45.1
28.6
615.4
247.4
86.7
15.2
71.5
160.8
103.9
56.9
367.9
185.4
19.0
91.9
71.6
21.7
46.1
29.0
614.0
245.0
88.8
18.6
70.2
156.2
100.5
55.8
369.0
182.0
19.5
97.2
70.2
24.9
46.3
34.5
623.6
249.0
92.8
20.2
72.7
156.2
99.3
56.9
374.6
180.6
19.8
106.4
67.8
26.6
43.3
37.8
643.7
263.8
101.1
30.6
70.6
162.7
99.3
63.3
379.9
179.7
19.4
116.0
64.8
31.8
45.1
43.0
620.8
245.8
91.2
19.1
72.0
154.6
95.4
59.2
375.0
181.7
19.2
108.0
66.1
26.7
42.8
38.5
659.8
267.5
107.2
35.2
72.0
160.3
98.5
61.8
392.3
180.5
19.6
125.1
67.1
36.7
42.1
46.1
652.3
264.5
101.3
30.2
71.1
163.2
99.4
63.8
387.8
179.4
19.5
124.3
64.7
30.9
50.7
40.0
651.7
267.5
101.4
31.9
69.5
166.1
99.3
66.8
384.1
180.8
19.4
120.1
63.9
32.9
46.9
42.8
695.9
692.6
697.8 r
706.5'
711.7
719.4
730.9
763.2
728.4
784.2
773.4
773.9
452.8
11.9
440.9
198.4
24.0
174.4
-39.6
83.2
503.4
10.1
493.3
192.9
21.3
171.6
-88.8
84.1
489.8
9.8
480.0
201.3
20.8
180.5
-85.8
88.7
480.6
9.8
470.8
213.8
21.6
192.1
-87.6
95.6
474.0
10.3
463.7
224.0
22.7
201.3
-82.7
93.4
458.9
9.9
449.0
233.8
23.1
210.6
-73.7
98.9
452.1
9.6
442.5
254.5
25.5
229.0
-75.4
98.4
435.4
10.2
425.3
283.5
29.9
253.7
-58.6
101.4
449.7
9.4
440.3
254.7
29.4
225.3
-74.9
97.5
442.2
9.3
433.0
290.2
25.6
264.6
-51.3
101.7
435.9
10.1
425.8
287.6
30.3
257.3
-53.4
101.9
434.8
10.2
424.6
294.5
32.1
262.3
-57.0
100.2
694.9
691.6
694.0
702.4
708.6
718.0
729.5
761.8
727.0
782.9
772.1
772.5
1.0
1.0
3.8'
4.1'
3.1
1.4
1.4
1.4
1.4
1.4
1.4
1.4
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
A21
Assets and Liabilities 1 —Continued
F. Memo items
Billions of dollars
Monthly averages
Account
2002
2001
Dec.
Wednesday
June'
July'
Aug.'
Sept.'
figures
2002
Oct.'
Nov.'
Dec.
Dec. 4
D e c . 11
D e c . 18
D e c . 25
Not seasonally adjusted
MEMO
7
8
9
10
11
Large domestically
chartered
banks,
adjusted for
mergers
Revaluation gains on off-balance-sheet
items8
R e v a l u a t i o n losses on o f f - b a l a n c e sheet items8
M o r t g a g e - b a c k e d securities 9
Pass-through
C M O , R E M I C , and other
N e t u n r e a l i z e d gains (losses) on
a v a i l a b l e - f o r - s a l e securities 1 0
O f f - s h o r e credit t o U.S. r e s i d e n t s " . . . .
Securitized consumer loans12
C r e d i t c a r d s a n d related p l a n s
Other
Securitized business loans12
12
13
14
15
Small domestically
chartered
commercial
banks, adjusted
for
mergers
M o r t g a g e - b a c k e d securities 9
Securitized consumer loans12
Credit c a r d s a n d related p l a n s
Other
1
2
3
4
5
6
Foreign-related
institutions
16 R e v a l u a t i o n gains o n o f f - b a l a n c e sheet items8
17 R e v a l u a t i o n losses on o f f - b a l a n c e sheet items8
18 S e c u r i t i z e d b u s i n e s s l o a n s 1 2
80.6
92.9
105.8
112.3
119.1
110.9
117.1
124.4
106.5
120.7
118.8
130.9
68.4
311.5r
209.2r
102.2
75.7
313.0
224.9
88.0
89.7
320.4
236.7
83.7
94.2
338.5
253.7
84.8
100.5
343.9
255.0
88.9
94.2
355.2
261.7
93.5
100.8
370.4
274.6
95.8
105.6
363.1
265.6
97.4
89.7
378.4
277.7
100.7
101.2
374.4
275.3
99.1
101.0
350.5
254.5
96.0
112.7
354.4
258.6
95.8
4.6
19.1
140.5'
129.4'
11.2
19.7
6.7
19.6
140.0
126.9
13.1
16.9
8.3
19.1
144.1
128.1
16.0
17.1
9.1
19.0
141.5
125.5
16.0
17.8
11.5
19.0
140.6
125.0
15.6
17.7
12.5
18.4
142.7
127.5
15.2
17.5
11.8
18.5
146.8
131.4
15.3
17.1
11.0
18.7
148.3
133.2
15.0
16.9
10.1
18.6
148.6
133.4
15.2
17.0
10.9
18.7
148.5
133.4
15.1
17.0
10.8
19.1
148.6
133.5
15.0
16.9
11.2
18.7
147.8
132.8
15.0
16.8
275.1'
206.1'
197.7'
8.4
298.8
207.3
200.3
7.0
297.1
203.0
199.4
3.6
298.7
202.1
199.0
3.1
304.2
199.9
195.9
3.9
307.0
198.3
189.3
8.9
308.9
198.7
189.8
8.9
311.0
201.2
192.5
8.7
311.0
198.1
189.3
8.8
311.2
198.5
189.7
8.8
309.8
200.2
191.2
8.9
310.6
203.0
194.4
8.6
60.7
55.2
61.5
65.1
62.5
61.9
63.2
64.1
60.8
62.9
63.7
64.4
54.2
12.9
49.3
9.9
57.4
9.4
64.8
9.1
61.5
8.1
60.2
7.6
60.4
7.3
59.8
6.9
58.1
7.1
59.2
7.0
59.2
7.0
59.5
6.8
NOTE. T a b l e s 1.26, 1.27, a n d 1.28 h a v e b e e n r e v i s e d to reflect c h a n g e s in the B o a r d ' s H . 8
statistical release, " A s s e t s a n d Liabilities of C o m m e r c i a l B a n k s in the U n i t e d S t a t e s . " T a b l e
1.27, " A s s e t s a n d Liabilities of L a r g e W e e k l y R e p o r t i n g C o m m e r c i a l B a n k s , " a n d table 1.28,
" L a r g e W e e k l y R e p o r t i n g U.S. B r a n c h e s a n d A g e n c i e s of F o r e i g n B a n k s , " are n o l o n g e r
b e i n g p u b l i s h e d in the Bulletin. Instead, a b b r e v i a t e d b a l a n c e s h e e t s f o r b o t h l a r g e a n d small
d o m e s t i c a l l y c h a r t e r e d b a n k s h a v e b e e n i n c l u d e d in table 1.26, parts C a n d D . D a t a are b o t h
m e r g e r - a d j u s t e d a n d b r e a k - a d j u s t e d . In addition, d a t a f r o m large w e e k l y r e p o r t i n g U.S.
b r a n c h e s a n d a g e n c i e s of f o r e i g n b a n k s h a v e b e e n r e p l a c e d by b a l a n c e sheet e s t i m a t e s of all
f o r e i g n - r e l a t e d institutions a n d are included in table 1.26, part E. T h e s e d a t a are b r e a k adjusted.
T h e n o t - s e a s o n a l l y - a d j u s t e d d a ta f o r all tables n o w c o n t a i n a d d i t i o n a l b a l a n c e sheet i t e m s ,
w h i c h w e r e a v a i l a b l e as of O c t o b e r 2, 1996.
1. C o v e r s the f o l l o w i n g t y p e s of institutions in the fifty states a n d the District of C o l u m b i a :
d o m e s t i c a l l y c h a r t e r e d c o m m e r c i a l b a n k s that s u b m i t a w e e k l y report of c o n d i t i o n (large
d o m e s t i c ) ; o t h e r d o m e s t i c a l l y c h a r t e r e d c o m m e r c i a l b a n k s (small d o m e s t i c ) ; b r a n c h e s a n d
a g e n c i e s of f o r e i g n b a n k s , a n d E d g e A c t a n d a g r e e m e n t c o r p o r a t i o n s ( f o r e i g n - r e l a t e d institutions). E x c l u d e s I n t e r n a t i o n a l B a n k i n g Facilities. D a t a are W e d n e s d a y v a l u e s or p r o rata
a v e r a g e s of W e d n e s d a y v a l u e s . L a r g e d o m e s t i c b a n k s constitute a u n i v e r s e ; d a t a f o r small
d o m e s t i c b a n k s a n d f o r e i g n - r e l a t e d institutions are e s t i m a t e s b a s e d o n w e e k l y s a m p l e s a n d on
q u a r t e r - e n d c o n d i t i o n reports. D a t a are a d j u s t e d f o r b r e a k s c a u s e d b y reclassifications of
a s s e t s a n d liabilities.
T h e d a t a f o r l a r g e a n d small d o m e s t i c b a n k s p r e s e n t e d on p p . A 1 7 - 1 9 are a d j u s t e d to
r e m o v e the e s t i m a t e d e f f e c t s of m e r g e r s b e t w e e n these t w o g r o u p s . T h e a d j u s t m e n t f o r
m e r g e r s c h a n g e s p a s t l e v e l s t o m a k e t h e m c o m p a r a b l e with c u r r e n t levels. E s t i m a t e d
q u a n t i t i e s of b a l a n c e s h e e t i t e m s a c q u i r e d in m e r g e r s are r e m o v e d f r o m p a s t d a t a f o r the b a n k
g r o u p that c o n t a i n e d the a c q u i r e d b a n k a n d p u t into past d a t a f o r the g r o u p c o n t a i n i n g the
a c q u i r i n g b a n k . B a l a n c e sheet d a t a f o r a c q u i r e d b a n k s are o b t a i n e d f r o m Call R e p o r t s , a n d a
ratio p r o c e d u r e is used to a d j u s t p a s t levels.
2. E x c l u d e s federal f u n d s sold to, r e v e r s e R P s with, a n d l o a n s m a d e t o c o m m e r c i a l b a n k s
in the U n i t e d States, all of w h i c h are i n c l u d e d in " I n t e r b a n k l o a n s . "
3. C o n s i s t s of reverse R P s w i t h b r o k e r s a n d d e a l e r s a n d l o a n s to p u r c h a s e a n d carry
securities.
4. I n c l u d e s vault cash, c a s h i t e m s in p r o c e s s of collection, b a l a n c e s d u e f r o m d e p o s i t o r y
institutions, a n d b a l a n c e s d u e f r o m F e d e r a l R e s e r v e B a n k s .
5. E x c l u d e s the d u e - f r o m p o s i t i o n w i t h related f o r e i g n offices, w h i c h is i n c l u d e d in " N e t
d u e to r e l a t e d f o r e i g n o f f i c e s . "
6. E x c l u d e s u n e a r n e d i n c o m e , r e s e r v e s f o r losses on l o a n s a n d leases, a n d r e s e r v e s f o r
t r a n s f e r risk. L o a n s are r e p o r t e d g r o s s of t h e s e items.
7. T h i s b a l a n c i n g item is not i n t e n d e d as a m e a s u r e of e q u i t y capital f o r u s e in capital
a d e q u a c y analysis. O n a s e a s o n a l l y a d j u s t e d basis, this i t e m reflects a n y d i f f e r e n c e s in the
s e a s o n a l p a t t e r n s e s t i m a t e d f o r total a s s e t s a n d total liabilities.
8. Fair v a l u e of derivative c o n t r a c t s (interest rate, f o r e i g n e x c h a n g e rate, o t h e r c o m m o d i t y
and e q u i t y c o n t r a c t s ) in a g a i n / l o s s position, as d e t e r m i n e d u n d e r F A S B I n t e r p r e t a t i o n N o . 39.
9. I n c l u d e s m o r t g a g e - b a c k e d s e c u r i t i e s i s s u e d by U.S. g o v e r n m e n t a g e n c i e s , U.S.
g o v e r n m e n t - s p o n s o r e d enterprises, a n d p r i v a t e entities.
10. D i f f e r e n c e b e t w e e n fair v a l u e a n d historical cost f o r securities classified as a v a i l a b l e f o r - s a l e u n d e r F A S B S t a t e m e n t N o . 115. D a t a are r e p o r t e d net of tax e f f e c t s . D a t a s h o w n are
restated t o i n c l u d e an e s t i m a t e of these tax e f f e c t s .
11. M a i n l y c o m m e r c i a l a n d industrial loans but also i n c l u d e s a n u n k n o w n a m o u n t of credit
e x t e n d e d to o t h e r than n o n f i n a n c i a l b u s i n e s s e s .
12. Total a m o u n t o u t s t a n d i n g .
A22
1.32
DomesticNonfinancialStatistics • March 2003
COMMERCIAL PAPER OUTSTANDING
Millions of dollars, seasonally adjusted, end of period
Year ending December
2002
Item
1 All issuers
2
3
Financial companies 1
Dealer-placed paper, total 2
Directly placed paper, total 3
4 Nonfinancial companies 4
1997
1998
1999
2000
2001
June
July
Aug.
Sept.
Oct.
Nov.
966,699
1,163,303
1,403,023
1,615,341
1,438,764
1,327,569
1,345,922
1,375,414
1,338,119
1,350,182
1,351,428
513,307
252,536
614,142
322,030
786,643
337,240
973,060
298,848
989,364
224,553
986,489
169,193
959,798
206,942
863,215
343,733
856,037
322,729
973,150
219,581
982,239
211,574
200,857
227,132
279,140
343,433
224,847
171,887
179,182
168,466
159,353
157,451
157,615
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.
1.33
PRIME RATE CHARGED BY BANKS
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 communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and
services.
Short-Term Business Loans 1
Percent per year
Date of change
Period
Rate
2000—Jan.
1
Feb. 3
Mar. 22
May 17
8.50
8.75
9.00
9.50
2001—Jan.
Feb.
Mar.
Apr.
May
June
Aug.
Sept.
Oct.
Nov.
Dec.
4
1
21
19
16
28
22
18
3
7
12
9.00
8.50
8.00
7.50
7.00
6.75
6.50
6.00
5.50
5.00
4.75
2002—Nov.
7
4.25
Average
rate
2000
2001
2002
9.23
6.91
4.67
2000—Jan
Feb
Mar.
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
8.50
8.73
8.83
9.00
9.24
9.50
9.50
9.50
9.50
9.50
9.50
9.50
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
Average
rate
2001—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
9.05
8.50
8.32
7.80
7.24
6.98
6.75
6.67
6.28
5.53
5.10
4.84
Average
rate
2002—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.35
4.25
2003—Jan.
4.25
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
1.35
INTEREST RATES
A23
Money and Capital Markets
Percent per year;figuresare averages of business day data unless otherwise noted
2002, week ending
2002
2000
2001
2002
Sept.
Oct.
Nov.
Dec.
Nov. 2 9
Dec. 6
D e c . 13
Dec. 20
D e c . 27
M O N E Y MARKET INSTRUMENTS
1 Federal f u n d s 1 , 2 , 3
2 D i s c o u n t w i n d o w p r i m a r y credit 2 , 4
6.24
n.a.
3.88
n.a.
1.67
n.a.
1.75
n.a.
1.75
n.a.
1.34
n.a.
1.24
n.a.
1.27
n.a.
1.24
n.a.
1.23
n.a.
1.27
n.a.
1.23
n.a.
Commercial
paper3
Nonfinancial
3
1-month
4
2-month
5
3-month
6.27
6.29
6.31
3.78
3.68
3.65
1.67
1.67
1.69
1.73
1.72
1.72
1.72
1.70
1.70
1.34
1.35
1.36
1.31
1.32
1.31
1.30
1.33
1.33
1.29
1.33
1.31
1.32
1.30
1.31
1.32
1.32
1.32
1.33
1.32
1.31
6.28
6.30
6.33
3.80
3.71
3.65
1.68
1.69
1.70
1.74
1.74
1.74
1.73
1.72
1.71
1.34
1.37
1.37
1.31
1.32
1.32
1.25
1.33
1.34
1.32
1.33
1.33
1.32
1.31
1.32
1.30
1.32
1.32
1.31
1.32
1.32
6.35
6.46
6.59
3.84
3.71
3.66
1.72
1.73
1.81
1.78
1.76
1.74
1.77
1.73
1.69
1.39
1.39
1.40
1.37
1.34
1.36
1.35
1.36
1.39
1.37
1.36
1.39
1.37
1.34
1.36
1.37
1.34
1.36
1.37
1.35
1.35
12 E u r o d o l l a r deposits, 3 - m o n t h 3 , 8
6.45
3.70
1.73
1.75
1.73
1.39
1.35
1.37
1.36
1.35
1.34
1.34
U.S. Treasury
bills
Secondary market3,5
13
4-week
14
3-month
15
6-month
n.a.
5.82
5.90
2.43
3.40
3.34
1.60
1.61
1.68
1.65
1.63
1.60
1.60
1.58
1.56
1.24
1.23
1.27
1.18
1.19
1.24
1.24
1.21
1.27
1.22
1.20
1.27
1.20
1.19
1.25
1.18
1.20
1.24
1.11
1.16
1.23
6.11
6.26
6.22
6.16
6.20
6.03
6.23
3.49
3.83
4.09
4.56
4.88
5.02
5.63
2.00
2.64
3.10
3.82
4.30
4.61
5.43
1.72
2.00
2.32
2.94
3.50
3.87
4.87
1.65
1.91
2.25
2.95
3.54
3.94
5.00
1.49
1.92
2.32
3.05
3.64
4.05
5.04
1.45
1.84
2.23
3.03
3.63
4.03
5.01
1.55
2.07
2.50
3.26
3.84
4.19
5.14
1.53
2.01
2.44
3.24
3.84
4.17
5.13
1.47
1.87
2.27
3.06
3.65
4.04
5.01
1.43
1.83
2.23
3.02
3.63
4.05
5.04
1.41
1.71
2.08
2.89
3.47
3.92
4.91
n.a.
n.a.
5.41
4.90
5.07
5.10
5.06
5.18
5.16
5.04
5.10
4.99
5.58
6.19
5.71
4.99
5.75
5.15
4.87
5.64
5.04
4.58
5.31
4.74
4.66
5.47
4.88
4.77
5.62
4.95
4.70
5.57
4.85
4.88
5.75
5.00
4.83
5.68
4.94
4.70
5.57
4.83
4.65
5.52
4.82
4.63
5.50
4.79
7.98
7.49
7.10
6.73
6.93
6.88
6.77
6.91
6.87
6.77
6.79
6.70
7.62
7.83
8.11
8.37
7.08
7.26
7.67
7.95
6.49
6.93
7.18
7.80
6.15
6.63
6.76
7.40
6.32
6.73
6.95
7.73
6.31
6.71
6.89
7.62
6.21
6.63
6.80
7.45
6.37
6.76
6.90
7.60
6.33
6.73
6.88
7.55
6.20
6.65
6.80
7.45
6.23
6.64
6.83
7.45
6.14
6.56
6.73
7.38
1.15
1.32
1.61
1.80
1.86
1.73
1.77
1.69
1.73
1.75
1.79
1.79
6
7
8
9
10
11
56
Financial
1-month
2-month
3-month
Certificates
of deposit,
1 -month
3-month
6-month
secondary
market3,7
U . S . TREASURY N O T E S A N D B O N D S
16
17
18
19
20
21
22
Constant
1-year
2-year
3-year
5-year
7-year
10-year
20-year
Treasury
23
maturities9
long-term
average10,11
25 y e a r s a n d a b o v e
S T A T E AND L O C A L N O T E S AND B O N D S
Moody's
series12
24 A a a
25 B a a
26 Bond Buyer series 1 3
CORPORATE BONDS
27 S e a s o n e d issues, all i n d u s t r i e s 1 4
28
29
30
31
Rating
Aaa15
Aa
A
Baa
group
MEMO
Dividend-price
ratio'6
32 C o m m o n stocks
NOTE. S o m e of the d a t a in this table a l s o a p p e a r in the B o a r d ' s H . 1 5 ( 5 1 9 ) w e e k l y
statistical release. F o r o r d e r i n g a d d r e s s , see i n s i d e f r o n t cover.
1. T h e daily e f f e c t i v e f e d e r a l f u n d s rate is a w e i g h t e d a v e r a g e of rates on trades t h r o u g h
N e w York b r o k e r s .
2. W e e k l y figures are a v e r a g e s of s e v e n c a l e n d a r d a y s , e n d i n g o n W e d n e s d a y of the
c u r r e n t w e e k ; m o n t h l y figures i n c l u d e e a c h c a l e n d a r d a y in the m o n t h .
3. A n n u a l i z e d u s i n g a 3 6 0 - d a y y e a r or b a n k interest.
4 . T h e rate c h a r g e d f o r p r i m a r y credit u n d e r an a m e n d m e n t to the B o a r d ' s R e g u l a t i o n A ,
w h i c h b e c a m e e f f e c t i v e J a n u a r y 9, 2 0 0 3 . T h i s rate r e p l a c e s that f o r a d j u s t m e n t credit, w h i c h
w a s d i s c o n t i n u e d a f t e r J a n u a r y 8, 2 0 0 3 . F o r f u r t h e r i n f o r m a t i o n , see: http://
w w w . f e d e r a l r e s e r v e . g o v / b o a r d d o c s / p r e s s / b c r e g / 2 0 0 2 / 2 0 0 2 1 0 3 1 2 / d e f a u l t . h t m . T h e rate is that
r e p o r t e d f o r the F e d e r a l R e s e r v e B a n k of N e w York. Historical series f o r the rate on
a d j u s t m e n t credit is a v a i l a b l e at: h t t p : / / w w w . f e d e r a l r e s e r v e . g o v / r e l e a s e s . g o v / r e l e a s e s / h l 5 /
data.htm.
5. Q u o t e d on a d i s c o u n t basis.
6. Interest rates i n t e r p o l a t e d f r o m d a t a o n certain c o m m e r c i a l p a p e r trades settled by the
D e p o s i t o r y Trust C o m p a n y . T h e trades r e p r e s e n t sales of c o m m e r c i a l p a p e r by d e a l e r s or
direct issuers to i n v e s t o r s (that is, the o f f e r side). S e e the B o a r d ' s C o m m e r c i a l P a p e r w e b
pages (http://www.federalreserve.gov/releases/cp) for more information.
7. A n a v e r a g e of d e a l e r o f f e r i n g rates on nationally traded certificates of deposit.
8. B i d rates f o r e u r o d o l l a r d e p o s i t s c o l l e c t e d a r o u n d 9 : 3 0 a . m . E a s t e r n t i m e . D a t a are f o r
i n d i c a t i o n p u r p o s e s only.
9. Y i e l d s on actively t r a d e d i s s u e s a d j u s t e d to c o n s t a n t m a t u r i t i e s .
10. B a s e d on the u n w e i g h t e d a v e r a g e of the bid y i e l d s f o r all T r e a s u r y
fixed-coupon
securities w i t h r e m a i n i n g t e r m s to m a t u r i t y of 2 5 y e a r s a n d over.
11. A f a c t o r f o r a d j u s t i n g the daily l o n g - t e r m a v e r a g e in o r d e r to e s t i m a t e a 3 0 - y e a r r a t e
can b e f o u n d at h t t p : / / w w w . t r e a s . g o v / o f f i c e s / d o m e s t i c - f i n a n c e / d e b t - m a n a g e m e n t / i n t e r e s t - r a t e /
ltcompositeindex.html.
12. G e n e r a l obligation b o n d s b a s e d o n T h u r s d a y figures; M o o d y ' s I n v e s t o r s S e r v i c e .
13. State a n d local g o v e r n m e n t g e n e r a l o b l i g a t i o n b o n d s m a t u r i n g in t w e n t y y e a r s are u s e d
in c o m p i l i n g this index. T h e t w e n t y - b o n d i n d e x h a s a rating r o u g h l y e q u i v a l e n t to M o o d y ' s
A1 rating. B a s e d on T h u r s d a y figures.
14. D a i l y figures are a v e r a g e s of A a a , A a , A , a n d B a a y i e l d s f r o m M o o d y ' s I n v e s t o r s
Service. B a s e d on yields to m a t u r i t y on selected l o n g - t e r m b o n d s .
15. E f f e c t i v e D e c e m b e r 7, 2 0 0 1 , the M o o d y ' s A a a yield i n c l u d e s yields o n l y f o r industrial
firms. P r i o r to D e c e m b e r 7, 2 0 0 1 , the A a a yield r e p r e s e n t e d b o t h utilities a n d industrial.
16. S t a n d a r d & P o o r ' s c o r p o r a t e series. C o m m o n stock ratio is b a s e d o n the 5 0 0 s t o c k s in
the p r i c e index.
SOURCE: U.S. D e p a r t m e n t of the T r e a s u r y .
A24
1.36
DomesticNonfinancialStatistics • March 2003
STOCK MARKET
Selected Statistics
2002
Indicator
2000
2001
2002
Apr.
May
June
July
Aug.
Oct.
Sept.
Nov.
Dec.
Prices and trading volume (averages of daily figures)
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 - 5 0 )
2
Industrial
3
Transportation
Utility
4
Finance
5
6,806.46'
809.40
414.73
478.99
552.48
6,407.95'
749.46
444.45
377.72
596.61
5,571.46
656.44
430.63
260.50
554.88
6,212.88'
732.71
470.00
300.57
610.24
6,087.85'
718.12
459.55
287.10
603.15
5,755.89'
677.58
449.42
265.21
577.05
5,139.94'
603.04
416.07
230.21
524.01
5,200.62'
611.34
409.96
225.52
533.60
6 Standard & Poor's Corporation
(1941^13 - 10)'
1,427.22
1,194.18
993.94
1,112.03
1,079.27
1,014.05
903.59
912.55
922.22
879.08
860.11
915.09
935.10
911.59
840.76
1,026,867
51,437
1,216,529
68,074
1,411,689
n.a.
1,280,714
n.a.
1,215,786
n.a.
1,539,282
n.a.
1,848,962
n.a.
7 American Stock Exchange
(Aug. 31, 1973 - 50) 2
Volume of trading (thousands
8 New York Stock Exchange
9 American Stock Exchange
4,980.65'
589.14
388.19
210.76
506.05
4,862.70'
574.45
383.41
207.83
494.06
5,104.89'
597.75
405.03
229.41
523.50
5,075.76
593.15
401.39
236.71
519.72
867.81
854.63
909.93
899.18
843.89
852.03
807.38
820.62
823.77
1,317,105
n.a.
1,370,143
n.a.
1,619,896
n.a.
1,427,254
n.a.
1,210,332
n.a.
of shares)
Customer financing (millions of dollars, end-of-period balances)
10 M a r g i n credit at b r o k e r - d e a l e r s 3
198,790
150,450
134,380
150,940
150,860
146,270
136,160
132,800
130,210
130,570
133,060
134,380
Free credit balances at brokers4
11 Margin accounts 5
12 Cash accounts
100,680
84,400
101,640
78,040
95,690
73,340
92,140
68,540
92,950
66,120
95,830
68,280
98,080
68,860
95,400
63,700
98,630
67,550
96,620
66,780
91,240
67,380
95,690
73,340
Margin requirements (percent of market value and effective date) 6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. In July 1976 a financial group, composed of banks and insurance companies, was added
to the group of stocks on which the index is based. The index is now based on 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and
40 financial.
2. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting
previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has
included credit extended against stocks, convertible bonds, stocks acquired through the
exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds, and subscription issues was discontinued in
April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to
brokers and are subject to withdrawal by customers on demand.
5. Series initiated in June 1984.
6. Margin requirements, stated in regulations adopted by the Board of Governors pursuant
to the Securities Exchange Act of 1934, limit the amount of credit that can be used to
purchase and carry "margin securities" (as defined in the regulations) when such 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
1.40
A25
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
2001
2000
2002
Item
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
1 Federal debt o u t s t a n d i n g
5,803.5
5,800.6
5,753.9
5,834.5
5,970.3
6,032.4
6,153.3
6,255.4
6,433.0
2 Public debt securities
Held by public
3
Held by agencies
4
5,662.2
3,527.4
2,248.7
5,773.7
3,434.4
2,339.4
5,726.8
3,274.2
2,452.6
5,807.5
3,338.7
2,468.8
5,943.4
3,393.8
2,549.7
6,006.0
3,443.7
2,562.4
6,126.5
3,463.5
2,662.9
6,228.2
3,552.6
2,675.6
6,405.7
3,647.4
2,758.3
27.4
27.3
.1
26.8
26.8
.1
27.1
27.1
.0
27.0
27.0
.0
26.8
26.8
.0
26.4
26.4
.0
26.8
26.8
.0
27.2
27.2
.0
27.3
27.3
.0
5,580.5
5,692.5
5,645.0
5,732.6
5,871.4
5,935.1
6,058.3
6,161.4
6,359.4
5,580.2
.2
5,692.3
.2
5,644.8
.2
5,732.4
.2
5,871.2
.3
5,935.0
.2
6,058.1
.2
6,161.1
.3
6,359.1
.3
5,950.0
5,950.0
5,950.0
5,950.0
5,950.0
5,950.0
6,400.0
6,400.0
6,400.0
6
7
Agency securities
Held by public
Held by agencies
8 Debt subject to s t a t u t o r y limit
9 Public debt securities
10 Other debt'
MEMO
11 Statutory debt limit
1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District of Columbia stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCE. U.S. Department of the Treasury, Monthly Statement
United States and Monthly Treasury Statement.
of the Public Debt of the
Types and Ownership
Billions of dollars, end of period
2002
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
1?
n
14
15
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Inflation-indexed notes and bonds'
Nonmarketable 2
State and local government series
Foreign issues 3
Government
Public
Savings bonds and notes
Government account series 4
Non-interest-bearing
Bv holder*
16 U.S. Treasury and other federal agencies and trust funds
17 Federal Reserve Banks 6
18 Private investors
19
Depository institutions
20
Mutual funds
21
Insurance companies
22
State and local treasuries 7
Individuals
23
Savings bonds
Pension funds
74
75
Private
76
State and Local
27
Foreign and international 8
28
Other miscellaneous investors 7 - 9
1999
2001
2002
Qi
Q2
Q3
Q4
5,776.1
5,662.2
5,943.4
6,405.7
6,006.0
6,126.5
6,228.2
6,405.7
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
5,930.8
2,982.9
811.3
1,413.9
602.7
140.1
2,947.9
146.3
15.4
15.4
.0
181.5
2,574.8
12.7
6,391.4
3,205.1
888.8
1,580.8
588.7
146.9
3,186.3
153.4
11.2
11.2
.0
184.8
2,806.9
14.3
5,962.2
3,003.3
834.4
1,411.7
596.7
145.6
2,958.9
141.1
14.6
14.6
.0
183.6
2,589.7
43.8
6,087.0
3,024.8
822.5
1,446.9
592.9
147.5
3,062.2
142.8
13.3
13.3
.0
184.8
2,691.4
39.5
6,216.3
3,136.6
868.3
1,521.5
592.9
138.9
3,079.6
144.3
12.5
12.5
.0
185.6
2,707.3
12.0
6,391.4
3,205.1
888.8
1,580.8
588.7
146.9
3,186.3
153.4
11.2
11.2
.0
184.8
2,806.9
14.3
2,064.2
478.0
3,233.9
248.7
228.6
123.4
266.8
2,270.1
511.7
2,880.4
201.5
220.8
110.2
236.2
2,572.2
551.7
2,819.5
181.5
257.5
105.7
256.5
n.a.
629.4
n.a.
n.a.
n.a.
n.a.
n.a.
2,581.4
575.4
2,849.2
187.6
264.9
108.4
261.2
2,686.0
590.7
2,849.8
204.4
250.0
110.3
271.7
2,701.3
604.2
2,924.8
210.5
252.4
115.4
269.4
n.a.
629.4
n.a.
n.a.
n.a.
n.a.
n.a.
186.4
321.0
109.8
211.2
1,268.7
589.9
184.8
304.1
108.4
195.7
1,034.2
587.7
190.3
281.6
104.2
177.4
1,053.1
494.1
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
191.9
293.3
106.3
187.0
1,055.7
487.7
192.7
286.0
108.8
177.2
1,071.3
451.9
193.3
283.4
110.9
172.5
1,133.7
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
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 Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
3. Nonmarketable series denominated in dollars, and series denominated in foreign currency held by foreigners.
4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual
holdings; data for other groups are Treasury estimates.
6. U.S. Treasury securities bought outright by Federal Reserve Banks, see Bulletin table
1.18.
7. 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.
2000
8. 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.
9. Includes individuals, government-sponsored enterprises, brokers and dealers, bank
personal trusts and estates, corporate and noncorporate businesses, and other investors.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly Statement of the
Public Debt of the United States; data by holder, Federal Reserve Board of Governors, Flow
of Funds Accounts of the United States and U.S. Treasury Department, Treasury Bulletin,
unless otherwise noted.
A26
1.42
DomesticNonfinancialStatistics • March 2003
U.S. GOVERNMENT SECURITIES DEALERS
Transactions'
Millions of dollars, daily averages
2002
Sept.
By type of security
1 U.S. T r e a s u r y bills
T r e a s u r y c o u p o n securities by m a t u r i t y
2
T h r e e y e a r s or less
M o r e than three but less than or
3
equal to six y e a r s
4
M o r e than six but less than or e q u a l
to e l e v e n y e a r s
M o r e than e l e v e n
5
Inflation-indexed2
6
7
8
9
10
11
12
F e d e r a l a g e n c y and g o v e r n m e n t sponsored enterprises
D i s c o u n t notes
C o u p o n securities by m a t u r i t y
T h r e e years or less
M o r e than t h r e e y e a r s b u t less t h a n
or e q u a l to six y e a r s
M o r e than six y e a r s but less than
or equal to e l e v e n y e a r s . . . .
M o r e than e l e v e n y e a r s
Mortgage-backed
C o r p o r a t e securities
O n e y e a r or less
13
14
M o r e than o n e y e a r
15
16
17
18
19
20
21
22
By type of
counterparty
W i t h interdealer b r o k e r
U.S. T r e a s u r y
Federal a g e n c y a n d g o v e r n m e n t sponsored enterprises
Mortgage-backed
Corporate
With other
U.S. T r e a s u r y
Federal a g e n c y and g o v e r n m e n t sponsored enterprises
Mortgage-backed
Corporate
Oct.
2002, week ending
Nov.
Oct. 30
Nov. 13
Nov. 2 0
Nov. 2 7
Dec. 4
D e c . 11
D e c . 18
Dec. 25
46,861
44,804
48,070
47,376
48,003
54,630
43,156
48,074
46,650
49,102
43,060
37,679
133,211
133,181
141,467
144,196
136,338
156,502
117,133
159,943
131,140
112,904
97,605
102,826
106,075
114,643
118,430
109,668
143,887
121,503
122,395
95,173
100,771
107,472
87,610
56,505
83,783
22,090
2,439
99,139
21,405
4,122
98,012
20,833
2,603
92,675
20,452
3,737
115,775
20,685
3,410
118,456
26,370
2,408
90,931
21,121
2,531
78,117
16,598
2,325
80,059
19,019
1,914
82,733
19,169
3,274
65,588
17,393
2,536
47,865
12,380
2,265
49,573
50,271
51,785
48,678
54,698
55.383
52,351
45,143
56,129
51,714
59,092
50,202
11,389
11,841
12,727
14,536
13,776
15,684
12,861
10,072
9,312
10,000
9,062
9,828
10,317
9,301
8,893
6,829
7,877
8,577
11,565
8,094
4,847
12,860
5,563
3,664
7,337
1,147
6,776
1,325
7,383
1,219
4,228
831
6,523
1,202
5,178
1,378
9,563
1,031
7,661
1,377
7,349
801
7,235
1,313
6,205
676
6,820
808
186,023
191,937
194,006
131,645
164,887
287,422
211,256
131,296
164,112
250,141
155,212
99,579
106,097
18,433
101,115
16,294
111,148
22,421
95,235
17,405
110,984
22,812
119,849
19,890
120,220
22,993
101,266
24,053
81,049
19,955
106,654
18,201
125,831
21,111
100,301
13,047
184,949
197,089
205,144
194,377
228,772
228,274
186,794
192,175
174,715
178,506
148,043
113,090
10,217
58,896
373
10,473
55,734
387
10,018
49,075
431
11,031
42,141
431
11,172
43,165
394
10,763
71,907
307
10,705
52,025
562
8,175
34,248
428
8,204
40,764
432
9,903
52,998
620
7,078
40,057
665
7,097
26,086
278
209,510
220,204
224,271
223,726
239,325
251,594
210,472
208,055
204,838
196,146
165,749
146,429
69,548
127,127
124,156
69,041
136,203
117,022
71,989
144,931
133,138
64,073
89,504
112,208
72,904
121,722
133,403
75,437
215,515
139,431
76,666
159,231
142,651
64,172
97,048
124,892
70,234
123,348
100,572
73,219
197,143
124,235
73,521
115,155
146,277
64,226
73,494
113,070
NOTE. M a j o r c h a n g e s in the report f o r m filed b y p r i m a r y d e a l e r s i n d u c e d a b r e a k in the
d e a l e r d a t a series as of the w e e k e n d i n g J u l y 4, 2 0 0 1 . C u r r e n t w e e k l y d a t a m a y be f o u n d at the
Federal R e s e r v e B a n k of N e w York w e b site ( h t t p : w w w . n e w y o r k f e d . o r g / p i h o m e / s t a t i s t i c s )
u n d e r the P r i m a r y D e a l e r h e a d i n g .
1. T h e figures represent p u r c h a s e s a n d sales in the m a r k e t by the p r i m a r y U.S. g o v e r n m e n t
securities dealers r e p o r t i n g to the F e d e r a l R e s e r v e B a n k of N e w York. O u t r i g h t transactions
include all U.S. g o v e r n m e n t , f e d e r a l a g e n c y , g o v e r n m e n t - s p o n s o r e d e n t e r p r i s e , m o r t g a g e -
Nov. 6
b a c k e d , a n d c o r p o r a t e securities s c h e d u l e d f o r i m m e d i a t e a n d f o r w a r d delivery, as well as all
U.S. g o v e r n m e n t securities traded on a w h e n - i s s u e d b a s i s b e t w e e n the a n n o u n c e m e n t a n d
i s s u e date. D a t a d o not i n c l u d e t r a n s a c t i o n s u n d e r r e p u r c h a s e a n d r e v e r s e r e p u r c h a s e (resale)
a g r e e m e n t s . A v e r a g e s are b a s e d on the n u m b e r of t r a d i n g d a y s in the w e e k .
2. O u t r i g h t T r e a s u r y i n f l a t i o n - i n d e x e d securities ( T I I S ) t r a n s a c t i o n s are r e p o r t e d at p r i n c i pal value, e x c l u d i n g a c c r u e d interest, w h e r e principal v a l u e reflects the o r i g i n a l i s s u a n c e p a r
a m o u n t ( u n a d j u s t e d f o r inflation) t i m e s the p r i c e t i m e s the i n d e x ratio.
Federal Finance
1.43
U.S. GOVERNMENT SECURITIES DEALERS
A27
Positions and Financing1
Millions of dollars
2002, week ending
2002
Item, by t y p e of security
Sept.
Oct.
Nov.
O c t . 30
Nov. 6
Nov. 13
Nov. 2 0
Nov. 2 7
Dec. 4
D e c . 11
D e c . 18
Net outright positions2
8,379
12,301
21,827r
19,761
16,287
25,352
25,046
17,755
26,670
34,712
27,956
-17,680
-25,208
-25,283r
-19,784
-19,378
-27,268
-27,545
-26,591
-24,130
-20,421
-23,106
-35,388
-35,886
-30,766'
- 4 1,066
-31,991
-28,074
-31,684
-30,518
-33,030
-36,338
-33,501
-15,420
9,083
1,239
-13,591
6,885
2,260
~15,248r
l,106r
1,402'
-11,316
4,297
566
-12,125
1,489
228
-11,665
1,131
720
-17,696
1,607
927
-16,389
573
1,812
-21,479
361
5,495
-20,545
1,301
5,052
-20,125
913
4,580
49,345
51,159
51,259'
52,944
46,402
57,549
46,692
51,953
55,329
53,229
55,175
14,031
16,704
16,344'
17,635
15,400
16,319
17,292
16,435
15,867
18,822
18,444
1,826
785
-407'
-320
-1,764
-1,279
-307
878
1,107
713
1,169
2,242
2,303
2,717
2,252
1,556'
2,994
2,217
2,482
690
2,898
1,793
3,074
2,954
3,309
961
2,745
861
2,847
2,231
2,766
3,754
2,892
12 M o r t g a g e - b a c k e d
16,667
15,565
8,176
8,997
13,629
2,417
11,891
7,051
4,669
6,865
15,637
C o r p o r a t e securities
13
O n e y e a r or less
14
M o r e than o n e y e a r
23,363
48,908
24,010
51,861
21,645
50,912'
24,644
48,561
21,861
52,254
27,588
46,335
22,072
52,631
16,470
51,796
18,420
52,832
26,089
55,056
30,252
55,274
1 U.S. T r e a s u r y bills
T r e a s u r y c o u p o n securities b y m a t u r i t y
T h r e e y e a r s or less
M o r e than three y e a r s but less than
or e q u a l to six years
4
M o r e than six but less than
o r e q u a l to e l e v e n years
5
M o r e than e l e v e n
6
Inflation-indexed
2
3
7
8
9
10
11
Federal agency and governmentsponsored enterprises
Discount notes
C o u p o n securities, by m a t u r i t y
T h r e e y e a r s or less
M o r e than three y e a r s but less than
or equal to six y e a r s
M o r e than six but less than
or e q u a l to e l e v e n y e a r s
M o r e than e l e v e n
Financing3
Securities in, U.S. Treasury
15 O v e r n i g h t a n d c o n t i n u i n g
16 T e r m
Federal agency and governments p o n s o r e d enterprises
17 O v e r n i g h t a n d c o n t i n u i n g
18 T e r m
M o r t g a g e - b a c k e d securities
19 O v e r n i g h t a n d c o n t i n u i n g
20 Term
C o r p o r a t e securities
21 O v e r n i g h t a n d c o n t i n u i n g
22 T e r m
627,852
904,116
619,723
905,616
614,961
937,618'
589,729
954,104
638,874
939,740
623,270
975,976
649,316
880,865
545,752
962,001
629,076
919,406
643,349
965,753
586,712
1,010,804
156,069
306,858
157,351
314,993
145,420
315,176
156,398
321,660
152,871
313,358
160,910
327,393
144,090
307,624
124,797
314,905
145,595
308,558
144,826
313,885
142,661
315,348
44,642
278,235
41,613
280,317
48,995
277,966
42,430
283,536
60,626
264,648
55,376
275,969
48,869
281,206
36,532
286,387
40,216
282,049
42,235
288,335
29,626
284,767
50,351
25,606
49,081
26,306
49,184
26,247
48,740
26,681
48,855
26,499
49,599
26,621
51,008
26,175
48,027
25,680
47,322
26,366
48,783
25,567
47,420
24,042
477,054
1,363,411
465,644
1,366,558
456,710
1,404,106
450,481
1,419,579
495,162
1,390,367
478,104
1,451,324
479,639
1,348,935
376,716
1,433,237
463,040
1,382,172
482,234
1,439,232
420,215
1,478,663
596,372
829,047
565,825
837,262
573,787
875,065
540,078
889,161
578,135
882,193
580,756
913,939
616,134
814,690
507,121
908,160
605,574
833,761
616,166
896,457
585,059
921,011
279,838
237,666
292,282
235,801
276,128
245,811
303,501
236,777
283,435
235,654
300,538
249,153
272,542
239,956
244,436
259,896
286,870
239,120
287,362
245,639
275,938
254,196
303,749
176,871
319,058
172,948
316,240
170,818
306,332
170,392
311,270
158,121
310,033
158,107
335,515
189,453
316,211
180,315
295,757
160,232
304,599
171,289
307,090
186,603
127,796
19,734
132,186
23,097
133,692
20,946
135,430
24,791
132,565
22,574
137,006
20,808
135,343
20,297
131,552
21,592
129,358
18,015
135,864
17,976
139,661
16,746
1,150,894
1,231,403
1,147,149
1,232,858
1,139,287
1,279,914
1,122,791
1,283,897
1,148,750
1,262,433
1,170,074
1,305,156
1,193,299
1,234,632
1,038,786
1,339,821
1,156,998
1,221,855
1,178,292
1,301,205
1,144,365
1,348,686
MEMO
Reverse repurchase agreements
23 Overnight and continuing
24 Term
Securities out, U.S. Treasury
25 O v e r n i g h t a n d c o n t i n u i n g
26 Term
Federal a g e n c y a n d g o v e r n m e n t sponsored enterprises
27 O v e r n i g h t a n d c o n t i n u i n g
28 Term
M o r t g a g e - b a c k e d securities
29 Overnight and continuing
30 Term
C o r p o r a t e securities
31 O v e r n i g h t a n d c o n t i n u i n g
32 T e r m
MEMO
Repurchase agreements
33 Overnight and continuing
34 T e r m
NOTE. M a j o r c h a n g e s in the r e p o r t f o r m filed by p r i m a r y d e a l e r s i n c l u d e d a b r e a k in m a n y
series as of the w e e k e n d i n g July 4, 2 0 0 1 . C u r r e n t w e e k l y d a t a m a y b e f o u n d at the Federal
R e s e r v e B a n k of N e w York w e b site ( h t t p : / / w w w . n e w y o r k f e d . o r g / p i h o m e / s t a t i s t i c s ) u n d e r the
Primary Dealer heading.
1. D a t a f o r p o s i t i o n s a n d financing are o b t a i n e d f r o m reports s u b m i t t e d to the F e d e r a l
R e s e r v e B a n k of N e w York by the U.S. g o v e r n m e n t securities d e a l e r s on its p u b l i s h e d list of
p r i m a r y dealers. W e e k l y figures are c l o s e - o f - b u s i n e s s W e d n e s d a y data. P o s i t i o n s f o r c a l e n d a r
d a y s of the r e p o r t w e e k are a s s u m e d to be c o n s t a n t . M o n t h l y a v e r a g e s are b a s e d on the
n u m b e r of c a l e n d a r d a y s in the m o n t h .
2. N e t o u t r i g h t p o s i t i o n s i n c l u d e all U.S. g o v e r n m e n t , f e d e r a l a g e n c y , g o v e r n m e n t s p o n s o r e d enterprise, m o r t g a g e - b a c k e d , a n d c o r p o r a t e securities s c h e d u l e d f o r i m m e d i a t e a n d
f o r w a r d delivery, as well as U.S. g o v e r n m e n t securities traded o n a w h e n - i s s u e d basis
b e t w e e n the a n n o u n c e m e n t a n d issue date.
3. F i g u r e s c o v e r financing U.S. g o v e r n m e n t , f e d e r a l a g e n c y , g o v e r n m e n t - s p o n s o r e d enterprise, m o r t g a g e - b a c k e d , a n d c o r p o r a t e s e c u r i t i e s . F i n a n c i n g t r a n s a c t i o n s f o r T r e a s u r y
i n f l a t i o n - i n d e x e d securities ( T I I S ) are r e p o r t e d in actual f u n d s p a i d or r e c e i v e d , e x c e p t f o r
p l e d g e d securities. T I I S that are issued as p l e d g e d securities are r e p o r t e d at p a r value, w h i c h
is the v a l u e of the security at original i s s u a n c e ( u n a d j u s t e d f o r inflation).
A28
1.44
DomesticNonfinancialStatistics • March 2003
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
Debt Outstanding
Millions of dollars, end of period
2002
Agency
1998
1
F e d e r a l a n d federally sponsored agencies
2
Federal agencies
Defense Department 1
Export-Import Bank 2 - 3
Federal Housing Administration"
Government National Mortgage Association certificates of
participation 5
Postal Service 6
Tennessee Valley Authority
United States Railway Association 6
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Federally sponsored agencies 7
Federal Home Loan Banks
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Farm Credit Banks 8
Student Loan Marketing Association 9
Financing Corporation 1 ®
Farm Credit Financial Assistance Corporation 11
Resolution Funding Corporation 1 2
1999
2000
2001
June
July
Aug.
Sept.
Oct.
n.a.
n.a.
1,296,477
1,616,492
1,851,632
2,121,057
2,161,580
2,213,366
2,226,713
26,502
26,376
6
25,666
6
276
223
6
223
6
164
6
n.a.
n.a.
6
n.a.
205
126
255
6
n.a.
n.a.
n.a.
n.a.
26,828
26,826
26,541
26,274
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.
26,496
26,370
25,660
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1,269,975
1,590,116
2,207,212
2,213,143
2,226,549
529,005
360,711
1,825,966
594,404
2,120,781
382,131
287,396
623,740
565,071
651,253
604,853
460,291
63,488
35,399
547,619
642,700
659,258
603,135
789,900
8,170
68,883
41,988
8,170
45,375
8,170
763,500
76,673
48,350
8,170
643,102
601,363
789,000
1,261
29,996
1,261
29,996
1,261
29,996
29,996
1,261
29,996
44,129
42,152
40,575
39,096
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.
6,665
14,085
21,402
5,275
13,126
22,174
n.a.
n.a.
n.a.
n.a.
13,876
25,220
14,301
22,790
14,338
23,492
13,599
29,226
426,899
74,181
270
1,261
217
80,951
49,600
8,170
217
784,020
81,265
48,500
8,170
1,261
158
81,658
49,500
8,170
29,996
1,261
29,996
37,091
37,830
42,825
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.
304
6
n.a.
27,170
n.a.
n.a.
298
n.a.
318
6
n.a.
26,725
n.a.
n.a.
312
n.a.
n.a.
n.a.
668,703
623,267
800,300
82,741
679,209
50,800
8,170
1,261
29,996
625,328
804,800
n.a.
n.a.
n.a.
n.a.
n.a.
MEMO
19
F e d e r a l Financing B a n k debt 1 3
23
24
Lending to federal and federally sponsored
Export-Import Bank 3
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
25
26
27
Other lending14
Farmers Home Administration
Rural Electrification Administration
Other
20
21
22
9,500
14,091
20,538
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 Agriculture 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.
39,604
37,084
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
agencies
n.a.
n.a.
14,029
25,575
23,026
14,058
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
1.45
NEW SECURITY ISSUES
A29
Tax-Exempt State and Local Governments
Millions of dollars
2002
Type of issue or issuer,
or use
1999
2000
2001
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1 All issues, new a n d r e f u n d i n g 1
215,427
180,403
288,601'
33,813 r
38,916 r
27,993 r
31,879'
27,379 r
42,670'
35,965 r
27,391
By type of issue
2 General obligation
3 Revenue
73,308
142,120
64,475
115,928
100,519
170,047
10,446
22,413
16,166
20,149
10,130
15,642
10,226
18,692
9,562
17,751
16,075
24,074
8,159
24,942
7,909
18,961
By type of issuer
4 State
5 Special district or statutory authority 2
6 Municipality, county, or township
16,376
152,418
46,634
19,944
111,695
39,273
30,099
179,427
61,040
1,531
23,866
7,461
3,718
27,283
5,315
3,404
16,007
6,361
3,472
20,144
5,302
2,442
19,105
5,767
4,199
29,273
6,678
2,109
25,422
5,570
1,670
19,629
5,570
7 Issues f o r new capital
161,065
154,257
199,134'
2 l,101r
24,624'
19,766 r
20,972 r
15,126 r
28,685 r
25,331'
19,991
36,563
17,394
15,098
n.a.
9,099
47,896
38,665
19,730
11,917
n.a.
7,122
47,309
50,054
21,411
21,917
n.a.
6,607
55,733
6,027
1,795
1,785
n.a.
614
6,962
7,060
3,351
1,087
n.a.
631
7,653
4,205
3,251
1,660
n.a.
760
5,893
3,968
4,413
2,806
n.a.
283
6,537
3,529
1,398
2,038
n.a.
574
5,597
5,209
1,476
6,922
n.a.
1,225
6,996
3,743
1,250
8,379
n.a.
821
7,189
5,292
1,060
2,031
n.a.
796
4,992
8
9
10
11
12
13
By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
SOURCE. Securities Data Company beginning January 1990; Investment
before then.
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.
1.46
NEW SECURITY ISSUES
Dealer's
Digest
U.S. Corporations
Millions of dollars
2002
Type of issue, offering,
or issuer
1999
2000
2001'
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
1,105,535
1,079,727
1,541,821
116,952
123,894
149,753
68,426
97,665
135,176
93,439
119,659
2 Bonds 2
973,967
944,810
1,413,267
106,416
114,932
133,217
63,912
93,659
127,881
85,606
109,726
By type of offering
3 Sold in the United States
4 Sold abroad
851,352
822,012
122,798
1,356,879
56,389
101,427
122,615
4,989
105,070
9,862
121,491
11,725
60,549
3,362
90,215
3,444
123,449
4,432
81,409
4,197
104,112
5,614
24,703
18,370
8,734
0
4,506
3,068
0
0
65
0
3,525
1 A11 issues'
MEMO
5 Private placements, domestic
By industry group
6 Nonfinancial
7 Financial
302,256
258,804
19,804
14,960
95,128
56,288
78,699
19,988
107,893
14,906
70,700
22,029
70,675
27,693
105,524
7,624
686,006
459,560
953,707
35,741
671,711
8 Stocks 3
254,540'
311,941'
230,632
10,536
8,962
16,536
4,514
4,006
7,295
7,833
9,933
131,568
122,972'
134,917
177,024'
128,554
10,536
8,962
16,536
4,514
4,006
7,295
7,833
9,933
102,078
n.a.
n.a.
n.a.
n.a.
n.a.
110,284
118,369
21,284
16,548
1,833
2,681
539
3,467
4,541
By type of offering
9 Public
10 Private placement 4
By industry group
11 Nonfinancial
12 Financial
n.a.
n.a.
77,577
7,834
50,977
2,702
6,633
2,329
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.
n.a.
11,608
4,928
2,754
3,731
4,102
87,697
4,533
5,400
2. Monthly data include 144(a) offerings.
3. Monthly data cover only public offerings.
4. Data for private placements are not available at a monthly frequency.
SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve
System.
A30
1.47
DomesticNonfinancialStatistics • March 2003
OPEN-END INVESTMENT COMPANIES
Net Sales and Assets'
Millions of dollars
2002
Item
2001
2002
May
June
July
Aug.
Sept.
Oct.
Nov/
Dec.
1 Sales of own shares 2
1,806,474
1,827,331
154,987
138,520
170,946
151,136
125,408
164,959
137,914
135,669
2 Redemptions of own shares
3 Net sales 3
1,677,266
129,208
1,703,269
124,062
138,052
16,935
144,153
-5,633
200,148
-29,202
136,210
14,926
126,760
-1,352
167,039
-2,080
122,125
15,789
135,811
-142
4,689,624
4,119,237
4,693,928
4,434,603
4,124,186
4,170,641
3,899,858
4,059,765
4,249,351
4,119,237
219,620
4,470,004
209,104
3,910,133
243,755
4,450,173
208,390
4,226,213
199,586
3,924,600
220,425
3,950,216
199,778
3,700,080
204,019
3,855,746
219,213
4,030,138
209,104
3,910,133
4 Assets
4
5 Cash 5
6 Other
4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership, which
comprises substantially all open-end investment companies registered with the Securities and
Exchange Commission. Data reflect underwritings of newly formed companies after their
initial offering of securities.
1. Data 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.
1.51
DOMESTIC FINANCE COMPANIES
Assets and Liabilities1
Billions of dollars, end of period; not seasonally adjusted
2001
Account
1999
2000
2002
2001
Qi
Q2
Q3
Q4
Qi
Q2
Q3
954.5
319.3
459.1
176.1
988.8
324.6
481.9
182.3
967.8
329.3
451.1
187.4
948.3
340.1
447.0
161.3
930.0
329.8
443.0
157.2
941.9'
332.0'
449.4
945.4
334.5
445.5
165.3
ASSETS
1
2
3
4
Accounts receivable, gross 2
Consumer
Business
Real estate
5
6
LESS:
7
8
Accounts receivable, net
All other
9
Total assets
Reserves for unearned income
Reserves for losses
845.4
304.4
395.1
145.8
958.7
328.0
458.4
172.3
948.3
340.1
447.0
161.3
61.4
14.7
69.7
16.7
60.6
21.0
69.9
17.2
61.5
17.4
60.8
18.0
60.6
21.0
59.5
21.5
769.3
406.6
872.3
461.5
866.7
523.4
867.3
474.8
909.8
458.9
889.0
478.7
866.7
523.4
849.0
515.2
861.9'
530.6
865.4
556.7
1,175.9
1,333.7
1,390.1
1,342.1
1,368.7
1,367.7
1,390.1
1,364.2
1,392.5
1,422.1
160.5
58.5
21.6
58.0
22.1
LIABILITIES AND C A P I T A L
10
11
Bank loans
Commercial paper
35.4
230.4
35.9
238.8
50.8
158.6
41.6
180.9
45.3
181.6
44.5
171.0
50.8
158.6
49.4
137.0
56.9
130.8
143.1
12
13
14
87.8
429.9
237.8
154.5
102.5
502.2
301.8
152.5
99.2
567.4
325.5
188.6
97.2
533.8
325.2
15
Debt
Owed to parent
Not elsewhere classified
AH other liabilities
Capital, surplus, and undivided profits
163.5
93.4
542.1
336.3
170.0
91.7
555.8
327.6
177.2
99.2
567.4
325.5
188.6
82.6
574.4
329.1
191.7
83.3
597.2
331.5
192.9
82.9
584.9
341.9
194.6
16
Total liabilities a n d capital
1,175.9
1,333.7
1,390.1
1,342.1
1,368.7
1,367.7
1,390.1
1,364.2
1,392.5
1,422.3
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.
74.9
2. Before deduction for unearned income and losses. Excludes pools of securitized assets,
Securities Markets and Corporate Finance
1.52
DOMESTIC FINANCE COMPANIES
A31
Owned and Managed Receivables 1
Billions of dollars, amounts outstanding
2002
June
r
July
Aug.'
Sept.
Oct.'
Nov.
Seasonally adjusted
1 Total
2
3
4
Consumer
Real estate
Business
1,031.2
1,187.0
1,248.5
1,258.3
1,269.0
1,269.1
1,269.5
1,267.2
1,269.2
410.2
174.0 r
446.9
465.2
198.9 r
522.8
514.6
525.0
203.1
530.2
528.1
206.7 r
534.2 r
522.8
209.6
536.7
522.2
207.9'
539.4
517.2
211.6
538.4
514.4
213.9
540.8
201.T
526.2
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
3.5
36
Consumer
Motor vehicle loans
Motor vehicle leases
Revolving 2
Other 3
Securitized assets 4
Motor vehicle loans
Motor vehicle leases
Revolving
Other
Real estate
One- to four-family
Other
Securitized real estate assets 4
One- to four-family
Other
Business
Motor vehicles
Retail loans
Wholesale loans 5
Leases
Equipment
Loans
Leases
Other business receivables 6
Securitized assets 4
Motor vehicles
Retail loans
Wholesale loans
Leases
Equipment
Loans
Leases
Other business receivables 6
1,036.4
1,192.2
1,253.7
1,264.4
1,264.2
1,261.1
1,262.2
1,262.0
1,263.3
412.7
129.2
102.9
32.5
39.8
468.3
141.6
108.2
37.6
40.7
518.1
173.9
103.5
31.5
31.1
524.9
170.3
96.4
32.1
33.2
528.6 r
172.5 r
94.9
36.6
33.0
525.0
170.3
90.5
36.5
33.0
524.3
176.5'
88.5
37.3
32.3
518.9
169.9
86.7
37.4
31.3
517.7
160.3
85.2
37.2
31.4
73.1
9.7
6.7
18.8
174.0
108.2
37.6
97.1
6.6
19.6
17.1
198.9
130.6
41.7
131.9
6.8
25.0
14.3
207.7
120.1
41.2
142.4
6.2
29.2
15.0
203.1
121.8
38.7
141.9 r
6.1
28.9 r
14.7
206.7
125.7
38.7
144.4
6.0
29.9
14.4
209.6
128.7
38.8
138.9'
6.0'
30.5'
14.4'
207.9'
126.5
39.0
144.1
5.9
29.2
14.4
211.6
130.5
38.8
153.5
5.8
30.2
14.2
213.9
132.8
39.0
28.0
.2
449.6
69.4
21.1
34.8
13.6
238.7
64.5
174.2
87.0
24.7
1.9
525.0
75.5
18.3
39.7
17.6
283.5
70.2
213.3
99.4
40.7
5.7
527.9
54.0
16.1
20.3
17.6
289.4
77.8
211.6
103.5
40.9
1.7
536.5
59.9
17.0
25.8
17.1
288.0
78.9
209.2
101.5
40.6 r
1.7r
529.0'
56.7
17.5
22.3
16.9
286.0
80.0
206.1
102.8
40.4
1.7
526.4
56.0
17.2
22.2
16.6
287.5
81.4
206.1
99.8
40.1'
2.2'
530.0
56.9
17.6
23.3
15.9
289.2
82.8
206.4
99.4
40.1
2.2
531.5
57.4
18.1
23.5
15.9
287.2
80.9
206.4
96.7
39.9
2.2
531.7
60.3
17.7
26.7
15.9
286.0
80.2
205.8
95.3
31.5
2.9
26.4
2.1
14.6
7.9
6.7
8.4
37.8
3.2
32.5
2.2
23.1
15.5
7.6
5.6
50.1
5.1
42.5
2.5
23.2
16.4
6.8
7.7
45.5
2.4
40.8
2.3
21.7
15.0
6.7
19.9
41.5'
2.3'
36.9'
2.3'
21.6'
15.0'
6.7'
20.3'
41.0
2.2
36.5
2.3
22.0
15.4
6.6
20.1
43.8'
2.2'
39.3'
2.3'
21.6'
14.8'
6.7'
19.1'
47.0
1.9
42.8
2.3
23.9
17.2
6.7
19.2
47.0
1.9
42.8
2.3
23.9
17.2
6.7
19.1
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 Companies. 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 subsidiaries 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.
A32
1.53
DomesticNonfinancialStatistics • March 2003
MORTGAGE MARKETS
Mortgages on New Homes
Millions of dollars except as noted
2002
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Terms and yields in primary and secondary markets
PRIMARY M A R K E T S
1
2
3
4
5
Terms1
Purchase price (thousands of dollars)
A m o u n t of loan (thousands of dollars)
Loan-to-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount) 2
Yield (percent per year)
6 Contract rate 1
7 Effective rate 1 - 3
8 Contract rate ( H U D series) 4
234.5
177.0
77.4
29.2
.70
245.0
184.2
77.3
28.8
.67
261.1
197.0
77.8
28.9
.62
268.2
201.1
77.1
29.0
.56
268.2
201.6
77.5
29.1
.62
267.5
199.1
77.3
29.0
.59
266.7
201.1
77.6
29.1
.60
258.7
195.0
77.7
28.8
.63
256.7
193.3
77.4
28.4
.61
266.9
205.1
79.0
28.7
.64
7.41
7.52
n.a.
6.90
7.00
n.a.
6.35
6.44
n.a.
6.38
6.47
n.a.
6.28
6.37
n.a.
6.17
6.26
n.a.
6.09
6.17
n.a.
6.00
6.09
n.a.
5.99
6.08
n.a.
5.95
6.04
n.a.
n.a.
7.57
n.a.
6.36
n.a.
5.81
n.a.
6.03
n.a.
5.82
n.a.
5.53
n.a.
5.15
n.a.
5.31
n.a.
5.29
n.a.
5.17
SECONDARY MARKETS
Yield (percent per year)
9 F H A mortgages (section 203) 5
10 G N M A securities 6
Activity in secondary markets
FEDERAL N A T I O N A L M O R T G A G E ASSOCIATION
Mortgage holdings (end of
11 Total
12
FHA/VA insured
13
Conventional
period)
610,122
61,539
548,583
707,015
n.a.
n.a.
790,800
n.a.
n.a.
740,744
n.a.
n.a.
743,025
n.a.
n.a.
746,101
n.a.
n.a.
751,423
n.a.
n.a.
751,347
n.a.
n.a.
760,759
n.a.
n.a.
790,800
n.a.
n.a.
14 Mortgage transactions purchased (during period)
154,231
270,384
370,641
16,310
17,586
23,123
33,518
32,853
47,807
67,891
Mortgage
15 Issued 7
16 To sell 8
163,689
11,786
304,084
7,586
247,809
9,072
24.700
2,535
29,786
62
42,555
1,292
58,055
1,016
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
385,693
3,332
382,361
491,719
3,506
488,213
568,173
n.a.
n.a.
518,816
3,649
515,167
521,137
3,413
517,724
525,795
4,195
521,600
530,694
4,634
526,060
536,389
n.a.
n.a.
549,380
n.a.
n.a.
568,173
n.a.
n.a.
174,043
166,901
n.a.
389,611
n.a.
547,046
n.a.
30,767
n.a.
29,335
n.a.
34,937
n.a.
46,369
n.a.
60,516
n.a.
62,354
n.a.
73,184
169,231
417,434
n.a.
32,468
34,827
44,401
57,793
n.a.
n.a.
n.a.
commitments
(during
period)
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end
17 Total
18
FHA/VA insured
19
Conventional
Mortgage transactions
20 Purchases
21 Sales
ofperiodf
(during
period)
22 Mortgage commitments contracted (during period) 9
1. Weighted averages based on sample surveys of mortgages originated by major institutional lender groups for purchase of newly built homes; compiled by the Federal Housing
Finance Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the
seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end of ten years.
4. Average contract rate on new commitments for conventional first mortgages; from U.S.
Department of Housing and Urban Development (HUD). Based on transactions on the first
day of the subsequent month.
5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured by
the Federal Housing Administration (FHA) for immediate delivery in the private secondary
market. Based on transactions on first day of subsequent month.
6. Average net yields to investors on fully modified pass-through securities backed by
mortgages and guaranteed by the Government National Mortgage Association ( G N M A ) ,
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 H o m e Loan
Mortgage Corporation's mortgage commitments and mortgage transactions include activity
under mortgage securities swap programs, whereas the corresponding data for the Federal
National Mortgage Association exclude swap activity.
Real Estate
1.54
A3 3
MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
2002
2001
Type of holder and property
1998
2000
1999
Q3
Q4
Ql
Q2
Q3 P
1 All holders
5,715,556
6,320,690
6,885,547
7,407,530
7,589,968
7,754,015
7,971,417
8,209,266
By type of property
7 One- to four-family residences
3 Multifamily residences
4 Nonfarm, nonresidential
5
4,365,968
331,602
921,482
96,504
4,790,601
369,251
1,057,874
102,964
5,203,899
406,530
1,166,261
108,858
5,600,651
440,753
1,251,517
114,610
5,732,907
454,715
1,286,011
116,336
5,871,331
462,579
1,301,988
118,116
6,043,139
474,170
1,333,680
120,428
6,242,661
482,851
1,360,371
123,383
2,194,591
1,336,996
797,004
54,632
456,323
29,037
643,955
533,501
57,037
53,002
414
213,640
6,590
31,522
164,004
11,524
2,394,271
1,495,420
879,576
67,665
516,333
31,846
668,064
548,222
59,309
60,063
470
230,787
5,934
32,818
179,048
12,987
2,618,969
1,660,054
965,635
77,803
582,577
34,039
722,974
594,221
61,258
66,965
529
235,941
4,903
33,681
183,757
13,600
2,734,217
1,736,631
987,682
83,949
629,624
35,375
758,344
620,392
64,405
72,977
569
239,243
5,091
33,885
186,469
13,798
2,791,076
1,789,819
1,023,851
84,851
645,619
35,498
758,236
620,579
64,592
72,534
531
243,021
4,931
35,631
188,376
14,083
2,789,654
1,800,362
1,018,478
86,719
659,187
35,978
745,998
605,171
65,199
75,077
551
243,293
4,938
35,671
188,599
14,085
2,861,044
1,873,203
1,070,522
90,743
674,972
36,966
742,732
599,402
66,009
76,768
552
245,109
5,188
35,844
189,988
14,089
2,981,095
1,961,908
1,143,938
90,929
689,288
37,753
773,689
625,424
68,668
79,036
560
245,498
5,197
35,900
190,287
14,114
291,961
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
58
70
233
0
156,023
147,594
8,429
32,983
1,941
31,042
57,085
49,106
7,979
320,054
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
25
29
98
0
149,422
141,195
8,227
34,187
2,012
32,175
56,676
44,321
12,355
344,225
6
6
0
73,323
16,372
11,733
41,070
4,148
3,507
1,308
2,199
0
0
0
0
0
45
7
9
29
0
155,626
144,150
11,476
36,326
2,137
34,189
59,240
42,871
16,369
363,001
9
9
0
72,118
15,916
11,710
40,470
4,023
3,155
1,251
1,904
0
0
0
0
0
26
4
5
17
0
165,687
151,786
13,901
39,722
2,337
37,385
59,638
39,217
20,421
376,999
8
8
0
72,452
15,824
11,712
40,965
3,952
3,290
1,260
2,031
0
0
0
0
0
13
2
3
8
0
169,908
155,060
14,848
40,885
2,406
38,479
62,792
40,309
22,483
385,027
8
8
0
72,362
15,665
11,707
41,134
3,855
3,361
1,255
2,105
0
0
0
0
0
7
1
4
0
176,051
160,300
15,751
41,981
2,470
39,511
59,624
35,955
23,669
396,091
8
8
0
71,970
15,273
11,692
41,188
3,817
3,473
1,254
2,218
0
0
0
0
0
22
4
4
14
0
180,491
164,038
16,453
42,951
2,527
40,424
58,872
34,062
24,810
412,014
8
8
0
72,030
15,139
11,686
41,439
3,766
2,973
1,252
1,721
0
0
0
0
0
13
2
2
8
0
184,191
167,006
17,185
44,782
2,635
42,147
60,934
34,616
26,318
2,581,297
537,446
522,498
14,948
646,459
643,465
2,994
834,517
804,204
30,313
0
0
0
1
562,874
405,153
33,784
123,937
0
2,948,245
582,263
565,189
17,074
749,081
744,619
4,462
960,883
924,941
35,942
0
0
0
0
0
656,018
455,021
42,293
158,704
0
3,231,415
611,553
592,624
18,929
822,310
816,602
5,708
1,057,750
1,016,398
41,352
0
0
0
0
0
739,802
499,834
48,786
191,182
0
3,583,240
603,186
581,796
21,391
927,490
921,709
5,781
1,228,131
1,177,995
50,136
0
0
0
0
0
824,433
550,200
53,627
220,606
0
3,715,692
591,368
569,460
21,908
948,409
940,933
7,476
1,290,351
1,238,125
52,226
0
0
0
0
0
885,564
591,200
57,009
237,355
0
3,868,993
587,204
564,108
23,096
1,012,478
1,005,136
7,342
1,355,404
1,301,374
54,030
0
0
0
0
0
913,907
616,300
57,535
240,072
0
3,988,381
583,791
559,595
24,196
1,053,261
1,045,981
7,280
1,404,594
1,349,442
55,152
0
0
0
0
0
946,735
638,300
59,491
248,944
0
4,075,446
567,631
542,453
25,178
1,058,176
1,050,899
7,277
1,458,945
1,402,929
56,016
0
0
0
0
0
990,694
671,200
61,239
258,256
0
647,708
435,137
76,320
116,277
19,974
658,120
459,385
75,244
102,274
21,217
690,939
490,900
77,006
100,681
22,352
727,071
522,793
79,464
101,354
23,460
706,201
501,465
79,791
101,154
23,792
710,341
508,679
79,612
97,915
24,135
725,902
519,364
80,153
101,807
24,579
740,711
532,988
80,623
102,057
25,043
By type of holder
6 Major financial institutions
7
Commercial banks 2
8
One- to four-family
9
Multifamily
10
Nonfarm, nonresidential
11
Farm
12
Savings institutions 3
13
One- to four-family
14
Multifamily
15
Nonfarm, nonresidential
16
Farm
17
Life insurance companies
18
One- to four-family
19
Multifamily
Nonfarm, nonresidential
70
21
Farm
22 Federal and related agencies
23
Government National Mortgage Association
24
One- to four-family
25
Multifamily
76
Farmers Home Administration 4
27
One- to four-family
28
Multifamily
79
Nonfarm, nonresidential
30
Farm
31 Federal Housing Admin, and Dept. of Veterans Affairs
32
One- to four-family
33
Multifamily
34
Resolution Trust Corporation
35
One- to four-family
36
Multifamily
37
Nonfarm, nonresidential
38
Farm
39
Federal Deposit Insurance Corporation
40
One- to four-family
41
Multifamily
42
Nonfarm, nonresidential
43
Farm
44
Federal National Mortgage Association
45
One- to four-family
46
Multifamily
47
Federal Land Banks
48
One- to four-family
49
Farm
50
Federal Home Loan Mortgage Corporation
51
One- to four-family
52
Multifamily
53 Mortgage pools or trusts 5
54
Government National Mortgage Association
55
One- to four-family
56
Multifamily
57
Federal Home Loan Mortgage Corporation
58
One- to four-family
59
Multifamily
60
Federal National Mortgage Association
61
One- to four-family
62
Multifamily
63
Farmers Home Administration 4
64
One- to four-family
65
Multifamily
66
Nonfarm, nonresidential
67
Farm
68
Private mortgage conduits
69
One- to four-family 6
70
Multifamily
71
Nonfarm, nonresidential
72
Farm
73 Individuals and others 7
74
One- to four-family
75
Multifamily
76
Nonfarm, nonresidential
77
Farm
1
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.
1
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.
A34
1.55
DomesticNonfinancialStatistics • March 2003
CONSUMER CREDIT 1
Millions of dollars, amounts outstanding, end of period
2002
June
July
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
1 Total
2 Revolving
3 Nonrevolving 2
1,416,316
1,560,634
1,667,928
1,707,452
l,714,828 r
1,717,799
1,722,549
l,724,064 r
1,721,859
597,669
818,647
666,607
894,027
699,875
968,053
712,126
995,326
715,795'
999,033
719,483
998,317
721,274
1,001,274
723,695'
1,000,369'
722,122
999,737
Not seasonally adjusted
1,446,127
1,593,116
1,701,856
l,700,282 r
1,705,621
1,719,577
1,720,643
l,723,788 r
1,729,920
By major holder
Commercial banks
Finance companies
Credit unions
Savings institutions
Nonfinancial business
Pools of securitized assets 3
499,758
201,549
167,921
61,527
80,311
435,061
541,470
219,848
184,434
64,557
82,662
500,145
558,421
236,559
189,570
69,070
67,955
580,281
554,864
235,640
191,618
68,451
53,010
596,700
557,285
242,088
194,060
67,370
51,296
593,522
572,446
239,857
195,559
66,289
52,101
593,326
575,732
246,072
196,059
65,243
49,170
588,366
578,554
238,642'
197,213'
65,243
49,120
595,016
582,837
228,787
197,280
65,243
50,901
604,872
By major type of credit1
11 Revolving
12
Commercial banks
13
Finance companies
14
Credit unions
15
Savings institutions
16
Nonfinancial business
17
Pools of securitized assets 3
621,914
189,352
32,483
20,641
15,838
42,783
320,817
693,020
218,063
37,627
22,226
16,560
42,430
356,114
727,297
224,878
31,538
22,265
17,767
29,790
401,059
709,469
215,765
32,131
20,988
17,795
17,859
404,930
709,018
214,092
36,570
21,206
16,751
16,467
403,933
716,233
224,698
36,529
21,505
15,707
16,747
401,048
715,990
226,197
37,280
21,388
14,696
14,129
402,299
717,119'
226,023
37,424'
21,229'
14,696
14,100
403,646
721,650
228,484
37,158
21,356
14,696
15,298
404,658
18 Nonrevolving
19
Commercial banks
20
Finance companies
21
Credit unions
22
Savings institutions
23
Nonfinancial business
24
Pools of securitized assets 3
824,213
310,406
169,066
147,280
45,689
37,528
114,244
900,095
323,407
182,221
162,208
47,997
40,232
144,031
974,559
333,543
205,021
167,305
51,303
38,165
179,222
990,814
339,099
203,509
170,630
50,656
35,150
191,770
996,603
343,193
205,518
172,854
50,619
34,829
189,590
1,003,344
347,748
203,329
174,054
50,582
35,354
192,277
1,004,653
349,535
208,792
174,671
50,547
35,041
186,067
1,006,669'
352,531
201,218
175,984'
50,547
35,020
191,370
1,008,270
354,353
191,629
175,924
50,547
35,603
200,214
4 Total
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 CREDIT 1
Percent per year except as noted
2002
Item
1999
2000
2001
May
June
July
Aug.
Sept.
Oct.
Nov.
INTEREST RATES
Commercial banks2
1 48-nionth new car
2 24-month personal
8.44
13.39
9.34
13.90
8.50
13.22
7.74
12.57
n.a.
n.a.
n.a.
n.a.
5.95
11.28
n.a.
n.a.
n.a.
n.a.
5.67
10.78
Credit card plan
3 All accounts
4 Accounts assessed interest
15.21
14.81
15.71
14.91
14.89
14.44
13.55
13.34
n.a.
n.a.
n.a.
n.a.
13.37
13.26
n.a.
n.a.
n.a.
n.a.
13.13
12.78
Auto finance
5 New car
6 Used car
6.66
12.60
6.61
13.55
5.65
12.18
6.15
10.90
6.25
10.71
3.58
10.59
2.17
10.46
2.29
10.44
2.79
10.67
3.41
10.70
52.7
55.9
54.9
57.0
55.1
57.5
57.3
57.8
58.6
57.7
58.9
57.8
59.2
57.6
58.4
57.5
57.2
57.3
57.2
n.a.
92
99
92
99
91
100
92
101
91
100
95
100
97
100
97
100
96
100
95
n.a.
19,880
13,642
20,923
14,058
22,822
14,416
23,324
14,700
23,436
14,631
25,089
14,701
26,455
14,679
26,331
14,801
26,232
14,645
26,104
n.a.
companies
O T H E R TERMS3
Maturity (months)
7 New car
8 Used car
Loan-to-value
9 New car
10 Used car
ratio
Amount financed
1 1 New car
12 Used car
(dollars)
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
1.57
A3 5
FUNDS RAISED IN U.S. CREDIT MARKETS 1
Billions of dollars; quarterly data at seasonally adjusted annual rates
2002
2001
Transaction category or sector
Ql
Q2
Q3
Q4
Q1
Q2
Q3
Nonfinancial sectors
1 Total net b o r r o w i n g by domestic nonfinancial sectors . .
733.3
804.4
1,042.4
1,057.5
853.9
949.1
1,032.4
1,276.8
1,213.7
927.3
1,613.7
1,329.4
By sector and instrument
2 Federal government
3
Treasury securities
4
Budget agency securities and mortgages
144.9
146.6
-1.6
23.1
23.2
-.1
-52.6
-54.6
2.0
-71.2
-71.0
-.2
-295.9
-294.9
-1.0
-59.3
-57.0
-2.2
-215.8
-216.9
1.1
209.3
209.7
-.4
43.4
44.2
-.7
39.8
41.6
-1.8
526.0
524.2
1.8
265.7
264.2
1.6
5 Nonfederal
588.3
781.3
1,095.0
1,128.7
1,149.8
1,008.4
1,248.2
1,067.4
1,170.2
887.5
1,087.7
1,063.7
6
7
8
9
in
n
12
13
14
15
16
By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit
-.9
2.6
116.3
70.4
28.7
280.1
241.7
9.8
25.8
2.7
91.3
13.7
71.4
150.5
106.4
59.5
322.3
258.3
7.3
53.5
3.1
57.5
24.4
96.8
218.7
108.2
82.1
489.8
387.7
23.4
72.2
6.5
75.0
37.4
68.2
229.9
82.8
46.0
564.9
424.6
35.7
98.8
5.8
99.5
48.1
35.3
171.1
101.7
95.0
559.6
413.7
35.2
104.2
6.5
139.0
-199.2
102.9
399.5
-19.5
32.5
547.7
423.4
37.6
82.3
4.3
144.5
-133.4
107.3
419.5
-121.0
132.3
767.5
607.8
40.8
107.0
11.9
76.0
-66.1
70.0
187.9
-24.4
59.4
770.0
559.3
56.5
147.1
7.0
70.6
45.5
190.1
323.5
-164.5
-107.3
732.9
530.6
56.5
139.0
6.8
149.9
-155.7
70.3
233.8
-18.8
-20.6
696.8
601.1
29.2
59.6
6.9
81.7
-93.0
181.2
207.0
-192.8
77.2
831.8
657.4
44.3
121.0
9.1
76.4
-28.7
152.8
-23.4
-125.1
84.0
944.0
786.2
35.8
109.5
12.4
60.1
17
18
19
20
21
22
By borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government
339.8
255.3
183.1
67.3
4.9
-6.8
332.7
392.5
291.6
94.7
6.2
56.1
454.8
559.9
392.1
159.7
8.0
80.3
498.0
578.4
390.5
182.4
5.5
52.3
541.3
581.4
399.8
170.7
10.9
27.2
506.5
405.7
237.7
162.2
5.7
96.3
650.6
495.1
313.5
170.1
11.5
102.5
661.3
349.6
191.3
153.8
4.4
56.6
623.3
389.2
239.8
141.1
8.3
157.7
702.6
122.6
7.1
110.3
5.3
62.3
679.8
239.5
98.3
132.7
8.5
168.4
770.7
153.2
10.7
128.9
13.5
139.9
88.4
11.3
67.0
9.1
1.0
71.8
3.7
61.4
8.5
-1.8
43.2
7.8
34.9
6.6
-6.0
25.2
16.3
14.1
.5
-5.7
65.7
31.7
23.9
11.4
-1.3
-8.5
-33.8
21.4
14.3
-10.4
-50.5
-3.8
-15.8
-31.4
.5
-106.7
-25.2
-83.9
4.2
-1.8
16.0
5.9
29.7
-16.3
-3.3
75.3
64.8
-2.3
13.9
-1.2
15.0
36.3
-41.0
22.0
-2.3
-36.8
3.8
-27.6
-11.7
-1.3
821.7
876.2
1,085.6
1,082.6
919.6
940.6
981.9
1,170.1
1,229.6
1,002.6
1,628.8
1,292.6
23 Foreign net borrowing in United States
24
Commercial paper
25
Bonds
26
Bank loans n.e.c
27
Other loans and advances
28 Total domestic plus foreign
Financial sectors
29 Total net b o r r o w i n g by financial sectors
550.1
662.2
1,087.2
1,073.3
809.0
915.8
828.2
1,118.6
979.1
860.8
866.3
855.9
By instrument
30 Federal government-related
31
Government-sponsored enterprise securities
32
Mortgage pool securities
33
Loans from U.S. government
231.4
90.4
141.0
.0
212.9
98.4
114.6
.0
470.9
278.3
192.6
.0
592.0
318.2
273.8
.0
433.5
234.1
199.4
.0
432.6
262.3
170.3
.0
674.6
268.3
406.2
.0
818.4
326.2
492.2
.0
591.8
306.5
285.3
.0
691.1
191.3
499.8
.0
487.9
141.7
346.2
.0
425.6
253.2
172.4
.0
34 Private
35
Open market paper
36
Corporate bonds
37
Bank loans n.e.c
38
Other loans and advances
39
Mortgages
318.7
92.2
178.1
12.6
27.9
7.9
449.3
166.7
218.9
13.3
35.6
14.9
616.3
161.0
310.2
30.1
90.2
24.8
481.3
176.2
207.1
-14.2
107.1
5.1
375.5
127.7
199.3
-.2
42.5
6.2
483.3
-83.8
459.7
24.3
90.6
-7.5
153.7
-77.9
223.2
10.8
-18.7
16.2
300.2
-72.2
313.9
1.6
58.8
-1.9
387.3
-13.6
375.3
18.3
8.9
-1.6
169.7
-178.3
345.1
.2
-3.9
6.6
378.4
-109.1
431.9
31.9
16.7
7.0
430.3
84.3
194.7
82.2
71.9
-2.7
13.0
25.5
.1
1.1
90.4
141.0
150.8
50.6
4.1
11.9
-2.0
63.8
46.1
19.7
.1
.2
98.4
114.6
202.2
57.8
-A.6
39.6
8.1
79.9
72.9
52.2
.6
.7
278.3
192.6
321.4
57.1
1.6
62.7
7.2
40.0
67.2
48.0
2.2
.7
318.2
273.8
212.3
70.3
.2
6.3
-17.2
91.5
60.0
27.3
.0
-.7
234.1
199.4
189.7
81.2
.1
2.7
15.6
-.4
138.1
55.5
-.6
-2.4
262.3
170.3
320.5
-54.0
.7
-6.1
-23.7
55.3
-10.5
3.4
.8
.1
268.3
406.2
205.9
36.8
.6
10.5
35.6
-129.6
39.7
39.4
1.5
3.5
326.2
492.2
318.9
41.8
.8
-2.4
12.6
-155.7
44.1
-68.6
4.4
1.4
306.5
285.3
432.6
-25.3
.6
7.8
-18.9
9.1
24.3
-33.1
2.4
2.4
191.3
499.8
254.5
-31.2
.8
7.4
-15.7
13.3
-12.1
2.0
1.2
141.7
346.2
237.7
80.2
.7
25.3
17.5
12.4
111.3
-10.2
1.0
.7
253.2
172.4
203.0
106.4
.7
18.4
15.0
-16.2
40
41
42
43
44
45
46
47
48
49
50
51
By borrowing sector
Commercial banking
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations
A36
1.57
DomesticNonfinancialStatistics • March 2003
FUNDS RAISED IN U.S. CREDIT MARKETS '—Continued
Billions of dollars; quarterly data at seasonally adjusted annual rates
2002
2001
Transaction category or sector
1996
1997
1998
1999
2000
QI
Q2
Q3
Q4
Ql
Q2
Q3
All sectors
52 Total net borrowing, all sectors
53
54
55
56
57
58
59
60
Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit
1,371.7
1,538.5
2,172.8
2,155.9
1,728.6
1,856.5
1,810.1
2,288.7
2,208.7
1,863.4
2,495.1
2,148.5
102.6
376.3
2.6
361.3
92.1
57,7
287.9
91.3
184.1
236.0
71.4
430.8
128.2
93.2
337.2
57.5
193.1
418.3
96.8
563.7
145.0
166.3
514.6
75.0
229.9
520.7
68.2
451.2
69.0
147.4
570.0
99.5
207.6
137.6
35.3
394.3
112.8
136.2
565.9
139.0
-316.8
373.3
102.9
880.6
19.2
112.7
540.2
144.5
-215.1
458.8
107.3
626.9
-141.6
114.2
783.7
76.0
-163.5
1,027.8
70.0
417.9
-18.6
116.5
768.0
70.6
37.8
635.2
<90.1
728.4
-162.4
-101.8
731.3
149.9
-269.2
730.9
70.3
576.6
-25.7
703.4
81.7
-165.8
1,013.9
181.2
597.9
-139.0
91.5
838.8
76.4
59.4
691.4
152.8
143.7
-54.7
154.6
941.2
60.1
-4.6
Funds raised through mutual funds and corporate equities
61 Total net issues
233.4
181.8
114.4
158.1
194.6
230.8
407.2
133.4
375.5
438.3
284.0
-90.2
62 Corporate equities
Nonfinancial corporations
63
64
Foreign shares purchased by U.S. residents
65
Financial corporations
66 Mutual fund shares
-4.2
-69.5
82.8
-17.6
237.6
-83.3
-114.4
57.6
-26.5
265.1
-165.1
-267.0
101.3
.6
279.5
-33.1
-143.5
114.3
-4.0
191.2
-40.4
-159.7
103.6
15.7
235.0
114.8
-25.0
86.1
53.7
116.0
133.6
-70.7
222.9
-18.5
273.5
-27.0
-126.6
43.5
56.1
160.4
119.6
-25.0
74.7
69.9
255.9
51.4
-8.7
-5.9
65.9
386.9
183.9
18.5
80.9
84.5
100.0
-133.1
-139.0
-68.2
74.1
42.9
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
F.2 through F4. For ordering address, see inside front cover.
Flow of Funds
1.58
A3 7
SUMMARY OF FINANCIAL TRANSACTIONS 1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
2002
2001
Transaction category or sector
1996
1997
1998
1999
2000
Qi
Q2
Q3
Q4
Ql
Q2
Q3
N E T L E N D I N G IN C R E D I T M A R K E T S 2
1
7
3
4
5
6
7
8
9
10
11
1?
n
14
is
16
17
18
19
20
?l
??
74
?5
26
71
28
29
30
31
37
33
Total net lending in credit m a r k e t s
Domestic nonfederal nonfinancial sectors
Household
Nonfinancial corporate business
Nonfarm noncorporate business
State and local governments
Federal government
Rest of the world
Financial sectors
Monetary authority
Commercial banking
U.S.-chartered banks
Foreign banking offices in United States
Bank holding companies
Banks in U.S.-affiliated areas
Savings institutions
Credit unions
Bank personal trusts and estates
Life insurance companies
Other insurance companies
Private pension funds
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 (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations
1,371.7
1,538.5
2,172.8
2,155.9
1,728.6
1,856.5
1,810.1
2,288.7
2,208.7
1,863.4
2,495.1
2,148.5
108.2
148.1
-10.2
4.0
-33.7
-7.2
379.6
891.2
12.3
187.5
119.6
63.3
3.9
.7
19.9
25.5
-7.7
69.6
22.5
-4.1
35.8
88.8
48.9
5.2
97.1
141.0
120.5
18.9
8.2
4.4
-15.7
12.6
29.8
39.8
-12.7
2.6
.1
5.1
259.6
1,244.0
38.3
324.3
274.9
40.2
5.4
3.7
—4.7
16.8
-25.0
104.8
25.2
47.6
67.1
87.5
80.9
-2.8
106.3
114.6
163.8
23.1
-9.1
20.2
14.9
50.4
255.2
123.4
-16.0
13.3
134.5
13.5
172.5
1,731.6
21.1
305.6
312.1
-11.6
-.9
6.0
36.2
18.9
-12.8
76.9
5.8
-23.4
72.1
244.0
127.3
5.2
314.0
192.6
281.7
77.3
3.2
-5.1
6.8
-15.8
253.1
243.4
-15.6
-3.0
28.4
5.8
139.7
1,757.3
25.7
312.2
318.6
-17.0
6.2
4.4
67.7
27.5
27.8
53.5
-3.0
17.0
46.9
182.0
48.4
8.2
291.3
273.8
194.1
97.0
.3
-2.6
-34.7
124.0
-100.1
-103.1
5.0
-1.2
-.8
7.3
225.9
1,595.4
33.7
357.9
339.5
23.9
-12.2
6.7
56.2
28.0
.8
57.9
-8.7
33.4
54.6
143.0
21.0
-6.3
256.4
199.4
159.9
108.0
.2
-6.3
68.9
37.4
-115.9
-135.5
-22.5
3.2
38.9
4.4
325.7
1,642.3
39.0
130.4
92.3
34.5
7.3
-3.6
46.8
34.9
4.0
111.8
2.1
20.7
-70.7
326.4
93.0
-6.9
329.2
170.3
292.5
8.9
1.4
4.0
242.3
-137.9
-165.2
-174.4
-24.6
.3
33.5
9.4
254.9
1,711.1
26.9
107.8
156.5
-50.1
-2.8
4.2
55.8
9.6
5.5
143.6
.1
44.7
77.0
210.0
169.1
-4.9
297.2
406.2
177.6
112.1
1.1
1.1
53.4
-182.9
1.1
-5.6
-34.1
3.3
37.4
3.3
269.2
2,015.1
8.4
267.9
242.5
21.1
-1.4
5.7
-4.7
61.1
4.9
186.9
5.1
10.4
-74.2
339.3
102.7
24.4
274.3
492.2
293.4
—43.1
1.7
7.8
184.5
-128.0
16.4
-33.8
5.8
2.0
42.4
7.0
432.5
1,752.8
85.1
314.6
275.0
-7.8
13.6
33.9
73.1
60.5
8.9
81.3
28.5
5.3
-2.7
108.4
139.3
14.8
335.3
285.3
409.9
-100.5
1.2
14.0
-110.5
1.0
167.8
115.9
49.7
3.3
-1.1
4.7
171.8
1,519.1
81.6
188.9
168.2
2.1
12.0
6.6
12.3
58.3
11.3
260.6
36.7
27.4
70.5
-296.8
243.3
20.9
236.7
499.8
230.3
-28.2
1.6
26.3
-219.5
56.8
257.4
207.0
4.5
3.3
42.5
8.9
566.1
1,662.7
43.4
384.3
343.8
33.7
1.9
4.9
-23.5
41.1
11.4
175.1
35.4
45.9
-54.5
-122.3
42.0
2.2
129.0
346.2
215.5
39.6
1.4
31.8
403.0
-84.3
-233.8
-250.3
.8
-2.2
17.8
7.3
561.7
1,813.3
67.3
623.5
599.6
21.5
-1.6
4.0
80.7
39.9
4.9
229.1
35.3
35.5
-33.0
-42.1
164.8
11.6
174.8
172.4
180.4
79.1
1.5
25.0
-191.4
139.1
1,371.7
1,538.5
2,172.8
2,155.9
1,728.6
1,856.5
1,810.1
2,288.7
2,208.7
1,863.4
2,495.1
2,148.5
-6.3
-.5
.5
85.9
-51.6
15.7
97.2
114.0
145.4
41.4
-4.2
237.6
123.3
52.4
44.5
148.3
19.5
.7
-.5
.5
107.7
-19.7
41.2
97.1
122.5
155.9
120.9
-83.3
265.1
139.8
6.6
.0
.6
6.5
-31.8
47.3
152.4
91.8
287.2
91.3
-165.1
279.5
106.4
103.2
48.0
217.4
19.6
-.4
-4.0
2.4
135.1
15.1
-71.4
188.8
116.2
233.3
113.2
^10.4
235.0
170.2
146.1
50.2
209.0
21.7
-1.5
.0
-1.1
228.3
-141.8
164.1
266.9
133.9
578.4
-94.3
114.8
116.0
186.4
-91.1
62.3
295.9
4.3
4.7
.0
1.1
-175.9
-25.4
155.2
242.1
43.0
370.0
114.0
133.6
273.5
-119.6
-73.9
52.2
209.1
14.8
13.7
.0
.0
41.5
-1.1
212.1
230.3
19.5
386.1
215.6
-27.0
160.4
-^17.3
561.3
74.7
180.3
104.9
.2
.0
.0
17.9
41.5
278.9
329.7
77.8
379.8
-139.1
119.6
255.9
-96.5
-383.7
119.6
150.8
-67.0
-3.0
.0
.0
-59.1
-1.2
3.2
259.7
270.0
-315.7
-55.8
51.4
386.9
217.9
-190.7
93.9
134.1
20.4
12.9
.0
.0
89.3
-149.3
285.9
249.0
34.9
103.4
252.8
183.9
100.0
67.0
-129.4
92.2
145.5
5.6
.0
.0
40.0
48.7
284.6
325.6
28.1
-192.6
-135.9
-133.1
42.9
148.1
-118.2
117.4
263.4
-53.0
-40.7
56.6
62.4
26.8
-60.4
-5.1
-8.7
-3.0
1.0
61.0
15.0
151.2
45.1
131.1
249.1
169.8
-33.1
191.2
268.6
104.4
50.8
181.8
23.2
-8.1
RELATION OF LIABILITIES
TO F I N A N C I A L A S S E T S
34 Net flows t h r o u g h credit m a r k e t s
54
Other financial sources
Official foreign exchange
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank transactions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Corporate equities
Mutual fund shares
Trade payables
Security credit
Life insurance reserves
Pension fund reserves
Taxes payable
Investment in bank personal trusts
Noncorporate proprietors' equity
Miscellaneous
55
Total financial sources
35
36
37
38
39
40
41
4?
43
44
45
46
47
48
49
50
51
52
53
Liabilities not identified as assets (—)
56 Treasury currency
5 7 Foreign deposits
5 8 Net interbank liabilities
5 9 Security repurchase agreements
6 0 Taxes payable
6 1 Miscellaneous
Floats not included in assets (-)
Federal government checkable deposits
63 Other checkable deposits
6 4 Trade credit
62
65
Total identified to sectors as assets
111.0
59.3
201.4
22.3
-10.2
31.9
-26.4
35.2
-38.7
27.1
-19.7
31.7
-44.6
-1.8
26.5
-13.2
-51.8
493.8
-57.8
956.9
1,053.8
1,164.9
748.6
867.3
857.0
190.9
132.6
523.3
752.1
2,957.8
3,280.5
4,286.6
4,761.4
4,460.0
4,434.1
3,901.5
5,258.0
3,518.4
2,821.3
4,394.0
3,509.7
-.4
59.4
-.2
106.2
-19.9
63.2
28.0
-248.3
-.1
-8.5
-.7
42.6
-.7
130.9
-9.3
35.7
118.6
12.2
-349.8
26.2
-398.0
24.9
-253.8
84.5
-197.6
-17.3
31.1
-396.0
115.9
11.7
-290.4
.0
-28.7
22.6
-166.8
22.8
-36.6
39.4
19.7
-158.9
-1.4
54.5
7.4
110.4
25.4
-1.3
9.7
21.8
-277.2
-.5
-166.8
17.0
124.6
3.1
-538.9
-2.4
.1
-1.2
55.9
20.4
-3.6
182.1
3.8
57.7
-30.3
-86.9
152.8
5.5
522.4
-3.3
2.4
23.1
-177.4
-46.1
74.6
.5
-2.7
-3.9
-25.5
2.6
-3.1
-43.3
-7.4
-4.0
-25.7
-.8
2.8
9.0
1.7
64.9
3.6
26.1
48.1
64.7
3.9
28.6
-23.0
5.0
-49.3
-91.1
5.7
37.8
190.3
6.1
3.1
185.7
7.1
-72.7
28.0
7.6
-1.6
3,083.5
3,383.6
4,416.7
4,967.7
4,601.5
4,623.2
4,365.7
5,044.4
3,913.8
3,003.6
4,154.3
3,577.6
1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables
F. 1 and F.5. For ordering address, see inside front cover.
20.7
-75.9
2. Excludes corporate equities and mutual fund shares.
A38
1.59
DomesticNonfinancialStatistics • March 2003
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING 1
Billions of dollars, end of period
2001
Transaction category or sector
1997
1998
1999
2002
2000
Q2
Ql
Q3
Q4
Ql
Q2
Q3
Nonfinancial sectors
1 Total credit m a r k e t debt owed by
domestic nonfinancial sectors
By sector and instrument
2 Federal government
3
Treasury securities
4
Budget agency securities and mortgages
5 Nonfederal
15,243.1
16,285.5
17,377.6
18,250.6
18,498.8
18,673.4
18,988.9
19,369.2
19,601.0
19,915.4
20,257.3
3,804.8
3,778.3
26.5
3,752.2
3,723.7
28.5
3,681.0
3,652.7
28.3
3,385.1
3,357.8
27.3
3,408.8
3,382.0
26.8
3,251.4
3,224.3
27.0
3,320.0
3,293.0
27.0
3,379.5
3,352.7
26.8
3,430.3
3,404.0
26.3
3,451.4
3,424.6
26.8
3,540.8
3,513.6
27.2
11,438.3
12,533.3
13,696.7
14,865.5
15,090.1
15,422.0
15,669.0
15,989.7
16,170.7
16,464.1
16,716.4
6
7
8
9
10
11
12
13
14
15
16
By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit
168.6
1,367.5
1,610.9
1,040.4
825.1
5,154.3
3,978.3
284.6
801.4
90.0
1,271.6
193.0
1,464.3
1,829.6
1,148.6
907.2
5,644.1
4,366.0
308.0
873.6
96.6
1,346.6
230.3
1,532.5
2,059.5
1,231.4
953.5
6,243.4
4,790.6
343.9
1,006.5
102.3
1,446.1
278.4
1,567.8
2,230.6
1,333.1
1,059.6
6,803.0
5,204.3
379.2
1,110.7
108.9
1,593.1
253.2
1,597.5
2,330.4
1,320.7
1,073.6
6,929.3
5,299.4
388.6
1,131.3
110.0
1,585.3
223.3
1,629.8
2,435.3
1,293.6
1,103.6
7,128.2
5,458.4
398.8
1,158.0
113.0
1,608.1
201.3
1,635.3
2,482.3
1,285.1
1,110.1
7,324.4
5,602.1
412.9
1,194.8
114.6
1,630.5
190.1
1,685.4
2,563.2
1,251.4
1,088.8
7,507.6
5,734.6
427.0
1,229.6
116.3
1,703.3
167.5
1,707.5
2,621.6
1,237.3
1,089.2
7,670.4
5,873.4
434.3
1,244.5
118.1
1,677.2
148.4
1,758.2
2,673.4
1,192.1
1,105.6
7,886.0
6,045.4
445.4
1,274.7
120.4
1,700.3
142.2
1,783.8
2,667.5
1,159.1
1,118.2
8,125.1
6,245.2
454.4
1,302.1
123.4
1,720.6
17
18
19
20
21
22
By borrowing sector
Households
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government
5,556.9
4,761.9
3,382.0
1,224.0
155.9
1,119.5
6,011.8
5,321.7
3,774.1
1,383.7
163.9
1,199.8
6,510.0
5,934.5
4,199.0
1,566.1
169.4
1,252.1
7,070.4
6,515.9
4,598.9
1,736.8
180.2
1,279.3
7,139.3
6,643.3
4,686.1
1,777.5
179.7
1,307.5
7,315.1
6,769.0
4,763.7
1,820.1
185.2
1,337.8
7,486.9
6,841.4
4,798.1
1,857.4
185.9
1,340.6
7,680.8
6,926.4
4,845.1
1,893.6
187.7
1,382.5
7,794.2
6,973.7
4,865.2
1,921.3
187.1
1,402.8
7,979.0
7,035.5
4,889.0
1,954.6
191.8
1,449.6
8,178.3
7,065.5
4,885.2
1,985.6
194.7
1,472.6
23 Foreign credit m a r k e t d e b t held in
United States
607.9
651.3
676.7
742.3
740.4
726.1
701.7
704.9
724.2
725.6
719.1
24
25
26
27
65.1
427.7
52.1
63.0
72.9
462.6
58.7
57.1
89.2
476.7
59.2
51.6
120.9
500.6
70.5
50.3
112.8
505.9
74.1
47.5
110.1
502.0
66.2
47.7
106.3
481.0
67.3
47.0
106.7
488.4
63.2
46.6
123.6
487.9
66.7
46.0
130.2
477.6
72.2
45.5
134.0
470.7
69.3
45.0
15,851.0
16,936.8
18,054.3
18,993.0
19,239.2
19,399.4
19,690.6
20,074.1
20,325.2
20,641.0
20,976.3
Commercial paper
Bonds
Bank loans n.e.c
Other loans and advances
28 Total credit m a r k e t d e b t owed by nonfinancial
sectors, domestic a n d foreign
Financial sectors
29 Total credit m a r k e t d e b t owed by
financial sectors
5,458.0
6,545.2
7,618.5
8,439.5
8,647.8
8,851.0
9,121.3
9,397.2
9,591.4
9,803.4
10,007.3
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 paper
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
2,821.1
995.3
1,825.8
.0
2,636.9
745.7
1,568.6
77.3
198.5
46.8
3,292.0
1,273.6
2,018.4
.0
3,253.2
906.7
1,878.7
107.5
288.7
71.6
3,884.0
1.591.7
2,292.2
.0
3,734.6
1,082.9
2,085.9
93.2
395.8
76.7
4,317.4
1,825.8
2,491.6
.0
4,122.0
1,210.7
2,297.2
93.0
438.3
82.9
4,422.9
1,888.7
2,534.2
.0
4,224.8
1,180.8
2,414.8
97.3
450.9
81.1
4,591.6
1,955.8
2,635.7
.0
4,259.4
1,144.5
2,478.7
100.4
450.7
85.1
4,796.2
2,037.4
2,758.8
.0
4,325.2
1,110.2
2,562.9
100.2
467.2
84.6
4,944.1
2,114.0
2,830.1
.0
4,453.1
1,148.8
2,640.2
106.8
473.2
84.2
5,116.9
2,161.8
2,955.1
.0
4,474.5
1,090.9
2,730.3
105.1
462.4
85.9
5,238.9
2,197.2
3,041.6
.0
4,564.5
1,046.9
2,845.8
113.5
470.8
87.6
5,345.3
2,260.5
3,084.8
.0
4,662.0
1,049.5
2,901.2
133.2
491.2
86.9
40
41
42
43
44
45
46
47
48
49
50
51
52
By borrowing sector
Commercial banks
Bank holding companies
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Brokers and dealers
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Funding corporations
140.6
168.6
160.3
.6
1.8
995.3
1,825.8
1,076.6
35.3
568.3
16.0
96.1
372.6
188.6
193.5
212.4
1.1
2.5
1,273.6
2,018.4
1,398.0
42.5
625.5
17.7
158.8
412.6
230.0
219.3
260.4
3.4
3.2
1,591.7
2,292.2
1,610.3
25.3
695.7
17.8
165.1
504.0
266.7
242.5
287.7
3.4
2.5
1,825.8
2,491.6
1,812.0
40.9
776.9
17.9
167.8
503.7
273.8
266.5
295.1
3.2
1.9
1,888.7
2,534.2
1,884.5
35.0
756.2
18.1
166.2
524.3
274.7
269.0
294.4
3.5
1.9
1,955.8
2,635.7
1,937.3
43.9
769.0
18.2
168.9
478.6
281.4
272.7
305.6
3.8
2.8
2,037.4
2,758.8
2,020.3
47.1
771.2
18.5
168.3
433.6
296.0
266.1
295.1
4.9
3.1
2,114.0
2,830.1
2,131.4
42.3
776.7
18.6
170.2
448.4
295.8
269.0
280.5
5.5
3.7
2,161.8
2,955.1
2,187.3
38.4
760.8
18.8
172.1
442.6
310.4
264.2
275.3
6.0
4.0
2,197.2
3,041.6
2,248.2
42.8
784.9
19.0
178.4
431.3
331.6
271.4
274.5
6.3
4.2
2,260.5
3,084.8
2,302.3
46.6
802.9
19.2
183.0
420.1
All sectors
53 Total credit m a r k e t d e b t , domestic a n d foreign .
54
55
56
57
58
59
60
61
Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit
21,309.1
23,482.0
25,672.8
27,432.4
27,886.9
28,250.4
28,811.9
29,471.4
29,916.6
30,444.4
30,983.6
979.4
6,625.9
1,367.5
3,607.2
1,169.8
1,086.5
5,201.1
1,271.6
1,172.6
7,044.2
1,464.3
4,170.9
1,314.8
1,253.0
5,715.7
1,346.6
1,402.4
7,564.9
1,532.5
4,622.0
1,383.8
1,400.9
6,320.1
1,446.1
1,610.0
7,702.5
1,567.8
5,028.3
1,496.6
1,548.2
6,886.0
1,593.1
1,546.8
7,831.7
1,597.5
5,251.1
1,492.1
1,572.0
7,010.3
1,585.3
1,477.9
7,842.9
1,629.8
5,416.0
1,460.2
1,602.0
7,213.3
1,608.1
1,417.8
8,116.2
1,635.3
5,526.2
1,452.6
1,624.4
7,409.0
1,630.5
1,445.6
8,323.6
1,685.4
5,691.8
1,421.4
1,608.6
7,591.8
1,703.3
1,382.0
8,547.2
1,707.5
5,839.7
1,409.1
1,597.6
7,756.2
1,677.2
1,325.5
8,690.2
1,758.2
5,996.7
1,377.8
1,622.0
7,973.6
1,700.3
1,325.7
8,886.1
1,783.8
6,039.4
1,361.6
1,654.4
8,212.0
1,720.6
1. Data in this table 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
A3 9
SUMMARY OF FINANCIAL ASSETS AND LIABILITIES 1
Billions of dollars except as noted, end of period
2002
2001
Transaction category or sector
1997
1998
1999
2000
Ql
Q2
Q3
Q4
Ql
Q2
Q3
CREDIT M A R K E T D E B T O U T S T A N D I N G 2
21,309.1
23,482.0
25,672.8
27,432.4
27,886.9
28,250.4
28,811.9
29,471.4
29,916.6
30,444.4
30,983.6
3,110.2
2,193.5
257.5
54.2
605.0
205.4
2,097.7
15,895.8
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
674.6
632.5
721.9
901.1
93.3
938.3
1,825.8
937.7
568.2
32.1
50.6
182.6
166.7
3,357.4
2,308.9
241.5
67.5
739.4
219.0
2,278.2
17,627.4
452.5
4,336.1
3,761.4
504.5
26.5
43.8
964.7
324.2
194.1
1,828.0
521.1
651.2
704.6
965.9
1,028.4
98.5
1,252.3
2,018.4
1,219.4
645.5
35.3
45.5
189.4
152.3
3,671.5
2,613.2
226.0
64.4
767.8
258.0
2,354.6
19,388.8
478.1
4,648.3
4,080.0
487.4
32.7
48.3
1,032.4
351.7
222.0
1,886.0
518.2
668.2
751.4
1,147.8
1,076.8
106.8
1,543.5
2,292.2
1,413.6
742.5
35.6
42.9
154.7
276.0
3,542.8
2,481.5
231.0
63.2
767.0
265.3
2,621.1
21,003.3
511.8
5,006.3
4,419.5
511.3
20.5
55.0
1,088.6
379.7
222.8
1,943.9
509.4
701.6
806.0
1,290.9
1,097.8
100.5
1,807.1
2,491.6
1,585.4
850.5
35.9
36.6
223.6
313.4
3,488.1
2,440.5
206.2
64.0
777.4
266.4
2,706.0
21,426.4
523.9
5,013.8
4,420.8
516.6
22.3
54.1
1,100.5
387.0
223.8
1,969.6
510.0
706.8
788.3
1,404.2
1,113.9
98.7
1,877.7
2,534.2
1,650.9
848.0
36.2
37.6
317.7
283.7
3,426.6
2,370.4
203.0
64.1
789.1
268.7
2,766.8
21,788.2
535.1
5,041.5
4,463.5
501.3
21.6
55.1
1,116.1
392.4
225.2
2,004.8
510.0
718.0
807.6
1,414.3
1,160.3
97.5
1,956.1
2,635.7
1,696.6
878.5
36.5
37.9
288.4
235.7
3,409.2
2,354.6
195.0
64.9
794.6
269.6
2,837.5
22,295.7
534.1
5,100.6
4,513.5
509.3
21.3
56.5
1,118.1
408.4
226.4
2,054.8
511.3
720.6
789.0
1,494.9
1,188.2
103.6
2,026.1
2,758.8
1,773.3
859.5
36.9
39.8
366.4
184.9
3,463.3
2,380.6
212.2
65.4
805.1
271.3
2,954.4
22,782.4
551.7
5,210.5
4,610.1
510.7
24.7
65.0
1,131.4
421.2
228.6
2,074.8
518.4
721.9
788.4
1,536.9
1,223.8
107.3
2,114.3
2,830.1
1,878.7
844.8
37.2
43.3
316.0
203.0
3,476.0
2,401.4
202.7
66.2
805.6
272.5
3,000.6
23,167.5
575.4
5,231.3
4,629.3
507.7
27.7
66.6
1,134.7
434.3
231.4
2,136.9
527.6
728.7
806.0
1,496.4
1,276.8
112.5
2,163.8
2,955.1
1,928.5
832.4
37.6
49.9
299.6
208.6
3,519.6
2,425.1
207.8
67.1
819.7
274.7
3,139.1
23,511.0
590.7
5,328.3
4,719.7
512.6
28.1
67.9
1,130.9
447.7
234.3
2,180.1
536.4
740.2
792.4
1,419.3
1,291.6
113.1
2,199.9
3,041.6
1,983.9
845.6
38.0
57.9
352.7
186.6
3,447.7
2,351.3
209.8
66.5
820.1
276.5
3,283.3
23,976.0
604.2
5,476.1
4,858.3
521.2
27.7
68.8
1,153.9
458.5
235.5
2,241.0
545.3
749.1
784.1
1,405.7
1,335.0
116.0
2,245.5
3,084.8
2,032.4
856.9
38.3
64.1
339.6
206.3
21,309.1
23,482.0
25,672.8
27,432.4
27,886.9
28,250.4
28,811.9
29,471.4
29,916.6
30,444.4
30,983.6
48.9
9.2
19.3
618.5
219.4
1,286.1
2,474.2
713.4
1,042.5
822.4
2,989.4
469.1
665.0
7,323.4
1,967.4
151.1
942.5
6,733.1
60.1
9.2
19.9
642.3
189.4
1,333.3
2,626.5
805.3
1,329.7
913.8
3,613.1
572.2
718.3
8,208.4
2,073.8
170.7
1,001.0
7,633.7
50.1
6.2
20.9
703.6
202.4
1,484.5
2,671.6
936.4
1,578.8
1,083.6
4,538.5
676.6
783.9
9,065.3
2,342.4
193.9
1,130.4
8,500.3
46.1
2.2
23.2
824.5
221.2
1,413.1
2,860.4
1,052.6
1,812.1
1,196.8
4,434.6
822.7
819.1
9,069.0
2,512.6
215.6
1,095.8
9,427.9
42.8
2.2
22.9
881.6
156.7
1,404.9
2,962.7
1,077.0
1,994.7
1,187.4
3,990.4
799.3
823.0
8,584.0
2,536.4
223.3
1,007.9
9,862.5
43.4
2.2
23.2
837.6
158.7
1,448.4
2,992.4
1,087.3
2,014.7
1,206.6
4,259.5
781.5
840.3
8,862.6
2,498.4
222.5
1,063.3
10,140.3
49.0
2.2
23.2
848.0
166.5
1,485.1
3,047.6
1,094.2
2,115.4
1,253.9
3,753.1
919.9
844.0
8,281.0
2,502.4
251.4
955.4
10,545.9
46.8
2.2
23.2
908.9
187.7
1,601.4
3,127.6
1,121.1
2,240.7
1,233.6
4,135.5
825.9
880.0
8,694.0
2,493.4
229.9
1,025.3
10,091.1
45.7
2.2
23.2
894.1
157.6
1,567.2
3,229.6
1,178.9
2,202.6
1,220.4
4,247.0
778.0
904.2
8,822.2
2,526.0
241.3
1,035.2
10,104.6
52.0
2.2
23.2
916.5
130.9
1,640.0
3,257.6
1,188.7
2,150.3
1,273.7
3,926.6
746.2
915.2
8,328.1
2,533.2
252.9
970.1
10,369.1
53.1
2.2
23.2
926.5
146.8
1,698.0
3,338.5
1,197.7
2,105.9
1,233.1
3,418.9
714.7
928.3
7,737.4
2,587.8
240.3
888.2
10,882.0
53 Total liabilities
49,803.8
55,402.6
61,642.2
65,281.9
65,446.6
66,733.3
66,950.1
68,339.8
69,096.5
69,120.9
69,106.2
Financial
assets not included
in liabilities
(+)
54 Gold and special drawing rights
55 Corporate equities
5 6 H o u s e h o l d equity in n o n c o r p o r a t e b u s i n e s s
21.1
13,301.7
4,052.7
21.6
15,577.3
4,285.7
21.4
19,581.2
4,544.3
21.6
17,611.9
4,765.8
21.4
15,347.5
4,807.7
21.5
16,281.6
4,823.5
22.0
13,673.4
4,865.8
21.8
15,245.5
4,824.9
21.9
15,264.1
4,845.0
22.7
13,363.0
4,906.5
22.8
10,960.1
4,947.4
Liabilities
not identified
as assets
57 Treasury currency
58 Foreign deposits
59 Net interbank transactions
60 Security repurchase agreements
61 T a x e s p a y a b l e
62 Miscellaneous
-6.3
535.0
-32.2
172.9
104.2
-1,376.7
-6.4
542.8
-26.5
230.6
121.2
-1,956.2
-7.1
585.7
-28.5
266.4
121.9
-2,436.0
-8.5
627.4
-4.3
385.0
127.7
-2,968.9
-9.4
673.0
1.1
341.4
111.9
-2,919.9
-9.5
631.3
3.8
376.2
131.7
-2,862.5
-9.8
644.9
4.5
396.6
148.6
-2,692.6
-9.8
694.1
11.1
346.3
100.0
-3,203.2
-10.4
685.0
21.8
355.6
92.3
-3,178.9
-10.6
717.7
18.3
390.2
150.7
-3,223.2
-10.9
720.1
16.2
292.4
113.5
-3,030.3
-8.1
26.2
128.1
-3.9
23.1
84.8
-9.8
22.3
91.7
-2.3
24.0
117.7
-2.8
21.1
84.6
-4.8
25.5
63.8
-5.9
19.2
48.7
-14.1
28.6
134.0
32.4
26.3
87.8
61.3
31.4
40.3
72.2
25.8
39.2
67,636.1
76,277.7
87,182.4
89,383.3
87,322.3
89,504.4
86,957.2
90,345.2
91,115.7
89,237.0
86,798.1
1 Total credit m a r k e t assets
7 Domestic nonfederal nonfinancial sectors
3
Household
4
Nonfinancial corporate business
Nonfarm noncorporate business
5
6
State and local g o v e r n m e n t s
7 Federal government
8 Rest of the world
9 Financial sectors
10
Monetary authority
11
Commercial banking
1?
U.S.-chartered banks
N
F o r e i g n b a n k i n g offices in U n i t e d States
14
Bank holding companies
IS
B a n k s in U.S.-affiliated areas
16
Savings institutions
17
Credit unions
18
B a n k personal trusts and estates
19
Life insurance companies
70
Other insurance companies
71
Private pension funds
7?
State and local g o v e r n m e n t retirement f u n d s
73
Money market mutual funds
74
Mutual funds
75
Closed-end funds
76
Government-sponsored enterprises
77
Federally related mortgage pools
78
Asset-backed securities ( A B S s ) issuers
79
Finance companies
30
Mortgage companies
31
Real estate investment trusts ( R E I T s )
37
Brokers and dealers
Funding corporations
33
R E L A T I O N OF LIABILITIES
TO FINANCIAL ASSETS
34 Total credit m a r k e t debt
35
36
37
38
39
40
41
47
43
44
45
46
47
48
49
50
51
52
Other
liabilities
Official foreign e x c h a n g e
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank liabilities
Checkable deposits and currency
Small time and savings deposits
Large time deposits
M o n e y market fund shares
Security repurchase agreements
Mutual fund shares
Security credit
Life insurance reserves
Pension fund reserves
Trade payables
Taxes payable
I n v e s t m e n t in b a n k p e r s o n a l trusts
Miscellaneous
(-)
Floats not included
in assets
(-)
63 Federal government checkable deposits
64 Other checkable deposits
65 Trade credit
66 Totals identified to sectors as assets
1. D a t a i n t h i s t a b l e a l s o a p p e a r i n t h e B o a r d ' s Z . l ( 7 8 0 ) q u a r t e r l y s t a t i s t i c a l r e l e a s e , t a b l e s
L.l and L.5. For ordering address, see inside front cover.
2. E x c l u d e s c o r p o r a t e equities a n d m u t u a l f u n d shares.
A40
2.12
Domestic Nonfinancial Statistics • March 2003
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION 1
Seasonally adjusted
2002
Q1
Q2
2002
Q3
Q4
Output (1997=100)
Q1
Q2
2002
Q3
Q4
Capacity (percent of 1997 output)
Ql
Q2
Q3
Q4
Capacity utilization rate (percent) 2
1 Total i n d u s t r y
109.3
110.5
111.4
110.7
145.4
145.9
146.2
146.6
75.1
75.7
76.2
75.5
2 Manufacturing
Manufacturing (NAICS)
3
110.5
110.8
111.4
111.8
112.3
112.6
111.6
111.9
150.5
151.8
150.9
152.2
151.1
152.5
151.4
152.8
73.4
73.0
73.9
73.5
74.3
73.8
73.8
73.2
4
5
Durable manufacturing
Primary metal
119.7
84.9
121.2
85.6
122.3
85.9
121.8
88.0
171.5
112.7
172.5
112.0
173.4
111.4
174.2
110.8
69.8
75.3
70.2
76.4
70.5
77.1
69.9
79.4
6
7
8
9
Fabricated metal products
Machinery
Computer and electronic products
Electrical equipment, appliances,
and components
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
Nondurable manufacturing
Food, beverage, and tobacco products . . . .
Textile and product mills
98.0
87.5
216.2
99.1
88.6
219.6
99.5
88.7
222.6
99.4
87.0
223.6
139.0
129.9
344.0
139.3
129.9
350.1
139.4
129.9
355.4
139.6
129.9
360.3
70.5
67.3
62.9
71.2
68.2
62.7
71.3
68.3
62.6
71.2
67.0
62.1
97.6
112.8
98.3
116.8
97.7
121.7
98.2
119.8
129.6
144.9
129.1
145.9
128.6
147.1
128.2
148.4
75.3
77.9
76.1
80.0
75.9
82.7
76.6
80.7
90.8
99.1
100.8
82.1
87.6
99.7
100.8
83.3
85.9
100.1
100.1
82.9
85.7
99.2
99.2
82.2
145.7
127.9
125.9
112.8
145.5
127.7
125.8
112.3
145.3
127.5
125.7
111.7
145.1
127.3
125.6
111.1
62.3
77.5
80.1
72.8
60.2
78.1
80.2
74.2
59.1
78.5
79.7
74.2
59.1
77.9
79.0
74.0
91.7
103.3
104.9
103.6
105.2
94.2
103.3
105.3
106.6
104.6
95.7
102.3
106.4
107.3
106.0
95.4
102.0
105.1
105.6
106.5
114.5
114.7
141.0
134.8
131.1
114.2
114.9
141.2
134.2
130.3
114.0
115.2
141.2
133.6
129.5
113.8
115.7
141.3
132.9
128.7
80.1
90.1
74.4
76.9
80.3
82.5
89.9
74.6
79.4
80.3
84.0
88.7
75.3
80.4
81.8
83.9
88.2
74.3
79.4
82.7
20 Mining
21 Electric and gas utilities
94.0
105.6
93.4
110.2
93.5
112.5
93.3
110.9
110.3
123.5
110.2
125.5
110.1
127.6
110.2
129.7
85.2
85.5
84.8
87.8
84.9
88.2
84.7
85.5
MEMOS
22 Computers, communications equipment, and
semiconductors
282.2
290.3
295.5
298.6
456.8
466.7
475.3
483.3
61.8
62.2
62.2
61.8
23 Total excluding computers, communications
equipment, and semiconductors
99.6
100.6
101.3
100.6
130.3
130.4
130.5
130.6
76.5
77.1
77.6
77.0
24 Manufacturing excluding computers,
communications equipment, and
semiconductors
99.2
99.9
100.5
99.9
132.7
132.6
132.6
132.6
74.8
75.3
75.8
75.3
10
11
12
13
14
15
16
17
18
19
Paper
Petroleum and coal products
Chemical
Plastics and rubber products
Other manufacturing (non-NAICS)
Selected Measures
2.12
A41
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION 1 —Continued
Seasonally adjusted
1973
1975
Previous cycle 3
High
Low
High
Latest cycle 4
2002
2001
Series
Low
High
Low
Dec.
July
Aug.
Sept/
Oct.'
Nov.'
Dec."
Capacity utilization rate (percent) 2
1 Total i n d u s t r y
88.8
74.0
86.6
70.8
85.1
78.6
74.6
76.4
76.1
76.0
75.6
75.6
75.4
2 Manufacturing
Manufacturing (NAICS)
3
88.0
88.1
71.6
71.4
86.3
86.3
68.6
67.9
85.5
85.5
77.2
77.0
73.0
72.5
74.3
74.0
74.3
73.9
74.1
73.6
73.8
73.3
73.8
73.3
73.6
73.1
88.9
100.9
69.6
68.9
87.0
91.3
63.1
47.2
84.5
95.3
73.4
75.2
69.6
69.0
70.6
76.2
70.8
78.7
70.2
76.5
69.9
79.1
70.2
78.9
69.7
80.2
91.8
94.2
69.6
74.2
83.1
92.8
61.7
58.3
80.1
84.7
71.0
72.9
70.3
66.1
71.5
68.0
71.2
68.8
71.2
67.9
71.7
66.9
71.1
66.9
70.8
67.2
87.0
66.9
89.8
77.3
81.5
76.4
63.6
62.6
62.7
62.5
62.2
62.0
62.0
99.3
95.3
68.5
55.3
91.9
96.2
64.4
45.2
87.5
90.0
75.0
56.6
75.7
77.7
76.4
83.2
76.2
82.9
75.1
82.1
75.8
80.0
77.0
83.1
76.9
79.0
75.0
87.5
66.3
72.5
84.6
85.7
69.8
75.6
88.9
86.9
81.9
81.8
64.0
76.5
59.0
78.7
59.4
78.4
59.0
78.4
59.2
78.0
58.8
77.8
59.2
77.9
85.9
89.8
78.0
62.8
84.3
90.1
80.2
72.3
85.5
91.1
81.3
77.1
79.1
71.5
80.0
75.0
79.6
73.9
79.5
73.8
79.6
73.5
78.8
74.1
78.6
74.3
97.4
93.2
85.0
96.3
85.7
74.7
81.0
68.9
61.6
75.7
95.6
92.3
83.0
90.5
88.1
81.3
71.1
67.9
70.5
85.7
94.0
88.9
85.6
91.2
90.2
85.4
82.5
80.8
77.1
79.1
79.7
87.6
73.6
75.8
81.4
83.5
89.5
75.7
80.3
80.9
84.0
89.2
75.2
80.3
81.7
84.4
87.6
75.1
80.4
82.8
83.9
86.3
74.4
79.9
82.7
83.7
88.4
74.2
79.2
82.3
84.1
89.8
74.5
79.0
83.2
20 Mining
21 Electric and gas utilities
93.6
96.2
87.6
82.7
94.2
87.9
78.6
77.2
85.6
92.6
83.3
84.2
86.1
83.5
85.7
89.6
85.3
86.5
83.8
88.4
83.9
86.3
84.4
85.9
85.8
84.4
MEMOS
22 Computers, communications
equipment, and semiconductors .
84.5
63.1
89.9
75.6
80.4
74.6
62.5
62.1
62.4
62.0
61.9
61.7
61.7
23 Total excluding computers,
communications equipment,
and semiconductors
89.1
74.3
86.6
70.5
85.5
78.8
75.8
77.9
77.6
77.5
77.0
77.1
76.9
24 Manufacturing excluding computers
communications
equipment, and semiconductors .
88.3
71.9
86.3
68.1
86.1
77.3
74.2
75.9
75.9
75.7
75.4
75.4
75.2
4
5
Durable manufacturing
Primary metal
6
7
8
14
Fabricated metal products . . . .
Machinery
Computer and electronic
products
Electrical equipment,
appliances, and
components
Motor vehicles and parts
Aerospace and
miscellaneous
transportation equipment .
Nondurable manufacturing
Food, beverage, and tobacco
products
Textile and product mills . . . .
15
16
17
18
19
Paper
Petroleum and coal products . .
Chemical
Plastics and rubber products . .
Other manufacturing (non-NAICS).
9
10
11
12
13
Note. The statistics in the G. 17 release cover output, capacity, and capacity utilization in the
industrial sector, which the Federal Reserve defines are manufacturing, mining, and electric
and gas utilities. Manufacturing consists of those industries included in the North American
Industry Classification System, or NAICS, manufacturing plus those industries—logging and
newspaper, periodical, book and directory publishing—that have traditionally been considered manufacturing and included in the industrial sector.
1. Data in this table also 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 2002. The recent annual revision will be described in an
upcoming issue of the Bulletin.
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. Monthly highs, 1978-80; monthly lows, 1982.
4. Monthly highs, 1988-89; monthly lows, 1990-91.
A42
2.13
Domestic Nonfinancial Statistics • March 2003
INDUSTRIAL PRODUCTION
Indexes and Gross Value 1
Monthly data seasonally adjusted
_
up
1992
proportion
2001
2002
2002
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.'
Oct.'
Nov.'
Dec.P
Index (1997= 100)
MAJOR MARKETS
1 Total I P
2
3
4
6
7
8
y
10
n
12
13
14
15
Market groups
Final products and nonindustrial supplies
Consumer goods
Durable
Automotive products
Home electronics
Appliances, furniture, carpeting
Miscellaneous goods
Nondurable
Non-energy
Foods and tobacco
Clothing
Chemical products
Paper products
Energy
100.0
110.5
108.3
109.0
109.2
109.6
110.1
110.4
110.8
111.6
111.3
111.2
110.7
110.8
110.6
60.8
29.0
5.8
2.5
0.4
1.3
1.6
23.2
20.2
10.4
2.4
4.6
2.9
3.0
109.4
107.6
117.3
125.4
142.3
106.8
98.5
104.2
102.7
99.7
72.4
119.3
108.1
111.7
108.0
105.7
114.0
120.5
149.9
104.9
96.4
102.7
102.7
98.9
73.4
120.5
109.0
102.8
108.3
106.2
114.2
120.2
154.3
105.7
96.4
103.3
103.0
99.6
73.0
120.7
107.8
105.0
108.5
106.7
115.3
121.3
153.1
107.9
97.1
103.6
103.0
100.2
72.7
119.9
106.6
107.1
108.9
107.4
115.7
121.7
150.2
108.1
98.2
104.4
103.5
100.8
74.4
120.1
107.2
109.4
109.1
107.5
116.5
123.8
139.9
108.2
98.1
104.4
102.8
100.4
72.7
118.5
106.0
112.8
109.3
107.3
117.2
124.2
143.8
109.1
98.9
103.9
102.2
100.0
72.9
116.8
106.2
112.5
109.6
107.8
118.6
127.4
135.3
107.5
100.2
104.1
102.8
100.2
72.9
118.3
107.2
110.9
110.1
108.5
120.0
130.6
137.0
106.9
99.2
104.6
102.8
99.8
73.2
119.5
107.1
114.0
109.8
107.8
119.3
130.6
135.4
104.5
98.3
103.8
102.4
99.2
71.3
119.0
108.4
111.6
109.8
107.9
118.7
129.3
142.6
104.6
97.8
104.2
102.6
99.1
72.1
119.5
109.8
112.8
109.2
107.1
116.9
125.9
138.5
104.8
98.3
103.7
102.3
99.3
70.2
118.4
109.8
110.7
109.3
107.7
120.7
132.2
140.9
106.7
98.3
103.4
101.7
98.3
71.0
118.5
109.0
112.2
108.9
107.1
118.1
126.5
141.4
107.7
99.0
103.3
101.6
97.9
70.3
118.6
109.6
112.3
13.2
2.5
5.4
5.3
3.4
107.4
81.2
153.7
91.7
101.3
108.6
89.5
155.0
90.0
100.3
108.8
87.5
155.3
91.1
99.6
108.1
86.9
154.3
90.5
99.7
107.8
84.8
155.5
90.3
99.8
107.7
83.2
154.7
91.1
99.9
108.0
82.0
154.9
91.9
100.6
108.0
81.1
154.9
92.2
101.2
107.3
80.2
153.5
92.0
101.2
108.1
81.1
153.7
92.9
101.9
106.9
79.7
152.1
92.0
102.0
106.2
78.1
152.9
91.3
102.6
106.0
11A
152.1
91.5
102.1
105.5
74.6
152.3
91.7
103.3
16
IV
18
19
20
Business equipment
Transit
Information processing
Industrial and other
Defense and space equipment
21
22
Construction supplies
Business supplies
5.4
9.1
104.0
122.0
102.5
119.0
102.6
119.2
103.1
119.4
104.0
119.7
104.0
120.7
104.6
121.5
104.5
121.8
104.4
123.2
104.8
122.6
104.5
123.6
104.2
123.2
103.5
122.8
102.9
122.9
23 Materials
24
Non-energy
25
Durable
26
Consumer parts
21
Equipment parts
28
Other
29
Nondurable
30
Textile
31
Paper
32
Chemical
33
Energy
39.2
29.6
20.7
4.0
7.5
9.2
8.9
1.1
1.8
4.0
9.6
112.3
115.9
128.2
110.9
182.8
97.2
97.1
77.9
94.8
99.4
98.6
108.8
112.1
123.5
106.2
176.7
93.9
94.3
75.6
92.1
94.6
96.2
110.0
113.4
124.9
107.6
178.1
95.1
95.5
76.2
93.4
97.0
97.1
110.2
113.7
125.6
109.2
177.6
95.9
95.4
76.3
92.6
97.2
97.1
110.7
114.0
125.8
109.2
177.6
96.0
95.9
77.7
91.9
98.8
97.9
111.6
115.0
127.1
110.8
179.8
96.7
96.5
77.8
93.3
99.6
98.6
112.2
115.8
127.8
110.1
182.3
97.2
97.3
78.2
94.8
100.4
98.5
112.6
116.4
128.6
110.4
183.6
97.9
97.6
78.5
93.6
100.6
98.6
113.8
117.2
129.4
113.4
184.2
97.7
98.4
79.6
95.8
101.3
101.0
113.6
117.4
130.0
112.3
186.3
98.3
98.2
77.8
96.1
100.7
99.3
113.4
117.2
129.5
112.4
185.7
97.7
98.3
78.4
96.7
100.2
99.1
112.9
116.9
129.6
111.9
185.3
98.2
97.5
78.1
96.9
99.0
98.2
113.0
117.0
130.1
114.6
185.6
97.7
97.1
77.7
96.2
98.5
98.6
113.2
117.0
129.6
111.8
186.6
97.8
97.6
77.9
96.8
99.3
99.1
94.7
94.3
100.6
110.1
98.7
108.1
99.3
108.8
99.6
108.9
99.9
109.4
100.3
109.7
100.5
110.1
100.8
110.3
101.5
110.8
101.2
110.5
101.2
110.5
100.6
110.1
100.7
109.9
100.5
110.1
SPECIAL AGGREGATES
34 Total excluding computers, communication
equipment, and semiconductors
35 Total excluding motor vehicles and parts
Gross value (billions of 1996 dollars, annual rates)
36 Final p r o d u c t s a n d n o n i n d u s t r i a l
supplies
100.0
2,793.6
2,756.7
2,764.9
2,774.9
2,787.1
2,796.7
2,802.2
2,809.9
2,828.0
2,821.5
2,817.8
2,794.7
2,812.1
2,794.0
37 Final products
38
Consumer goods
39
Equipment total
77.2
51.9
25.3
2,018.6
1,384.6
624.9
1,993.4
1,358.7
628.6
2,001.1
1,365.3
629.2
2,006.4
1,371.5
627.5
2,013.9
1,380.1
625.4
2,020.7
1,386.3
625.3
2,021.4
1,384.8
628.1
2,028.7
1,390.2
629.9
2,042.2
1,404.1
627.9
2,038.1
1,395.9
633.6
2,031.4
1,394.3
627.7
2.011.5
1,379.1
623.6
2,031.1
1,398.4
621.8
2,016.3
1,387.4
618.4
40 Nonindustrial supplies
22.8
774.9
763.2
763.7
768.5
773.2
776.1
780.9
781.3
785.9
783.5
786.6
783.7
781.0
777.8
Selected Measures
2.13
INDUSTRIAL PRODUCTION
A43
Indexes and Gross Value 1 —Continued
Monthly data seasonally adjusted
Group
NAICS
code 2
1992
proportion
2002
2001
2002
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept. r
Oct/
Nov. r
Dec."
I n d e x ( 1 9 9 7 = 100)
INDUSTRY GROUPS
85.4
79.1
111.5
111.8
109.6
109.8
110.3
110.6
110.4
110.8
110.7
111.0
111.0
111.4
111.4
111.9
111.9
112.2
112.3
112.7
112.4
112.8
112.1
112.4
111.6
111.9
111.7
112.1
111.5
111.8
321
43.0
1.5
121.2
100.5
118.9
99.9
119.6
100.6
119.8
99.9
119.8
101.7
120.5
100.8
121.2
101.0
121.8
102.2
122.2
101.9
122.7
102.5
122.0
100.7
121.6
99.4
122.3
97.7
121.6
96.5
327
331
332
333
2.0
2.7
5.3
5.7
107.9
86.0
99.1
88.0
105.7
78.2
97.6
85.9
106.0
84.3
97.7
87.2
106.4
85.3
98.2
87.3
106.6
85.1
98.2
88.0
107.4
84.6
98.4
88.3
107.7
85.9
99.7
88.5
106.6
86.2
99.3
88.9
107.7
85.0
99.7
88.4
108.5
87.6
99.3
89.4
109.8
85.0
99.4
88.2
109.1
87.9
100.0
86.8
109.4
87.4
99.3
86.9
108.6
88.7
98.9
87.3
334
8.8
220.2
215.8
216.3
215.5
216.9
217.9
220.0
220.8
221.5
223.0
223.2
223.3
223.3
224.3
335
3361-3
2.5
5.7
98.0
117.2
98.3
112.0
98.4
111.8
97.7
113.4
96.8
113.3
97.2
115.9
98.9
115.8
98.7
118.6
98.4
122.1
98.0
122.0
96.5
121.1
97.3
118.3
98.7
123.4
98.5
117.6
3364-9
4.5
87.7
93.4
92.1
90.9
89.5
88.3
87.6
86.9
85.7
86.3
85.7
86.0
85.4
85.9
337
339
1.5
2.8
101.7
109.6
101.3
107.7
101.9
108.2
102.6
107.8
101.7
107.4
101.8
109.6
101.5
110.2
101.6
110.7
101.4
110.6
100.5
110.2
101.4
109.1
100.9
109.5
101.9
108.7
101.9
110.1
41 Manufacturing
Manufacturing (NAICS)
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Durable manufacturing
Wood products
Nonmetallic mineral
products
Primary metal
Fabricated metal products .
Machinery
Computer and electronic
products
Electrical equipment,
appliances, and
components
Motor vehicles and parts . .
Aerospace and
miscellaneous
transportation
equipment
Furniture and related
products
Miscellaneous
Nondurable manufacturing . .
Food, beverage, and
tobacco products . . . .
Textile and product mills . .
Apparel and leather
Paper
Printing and support
Petroleum and coal
products
Chemical
Plastics and rubber
products
Other manufacturing
(non-NAICS)
65 Mining
66 Utilities
Electric
67
Natural gas
68
69 Manufacturing excluding
computers, communications
equipment, and
semiconductors
70 Manufacturing excluding motor
vehicles and parts
36.1
99.6
98.0
98.8
99.0
99.5
99.5
99.7
99.9
100.4
100.0
100.0
99.4
99.1
99.2
311,2
313,4
315,6
322
323
10.9
1.8
2.2
3.3
2.8
100.3
82.7
72.2
94.3
98.0
99.7
80.9
73.2
91.5
95.6
100.2
81.7
72.9
91.9
97.8
100.8
81.8
72.5
91.8
96.9
101.4
83.0
74.1
91.6
95.2
101.0
82.9
72.5
93.0
95.5
100.6
83.6
72.7
95.0
96.2
100.9
83.4
72.6
94.7
95.5
100.5
83.9
73.0
95.2
98.4
100.0
82.5
71.2
95.8
98.6
99.9
82.3
71.8
96.1
99.9
100.0
81.9
70.1
95.5
100.1
99.0
82.3
70.9
95.2
99.7
98.7
82.4
70.3
95.6
100.0
324
325
1.4
10.3
102.7
105.4
100.3
103.7
102.4
104.9
104.0
104.6
103.5
105.2
104.2
105.1
103.4
105.0
102.4
105.7
103.0
106.9
102.7
106.2
101.0
106.1
99.7
105.1
102.2
104.8
104.0
105.3
326
3.4
106.0
102.5
102.5
103.3
105.1
105.7
106.7
107.4
107.5
107.3
107.2
106.4
105.4
104.9
1133,5111
4.3
105.7
107.1
105.8
104.9
105.0
104.1
104.2
105.5
105.0
105.8
107.1
106.7
106.0
106.9
21
2211,2
2211
2212
6.6
10.1
8.6
1.6
93.7
110.0
111.6
97.0
95.1
102.2
104.5
89.9
94.4
103.7
106.1
90.9
94.2
105.2
107.1
95.0
93.6
108.0
110.1
96.9
93.4
110.6
112.5
100.2
93.4
110.1
111.2
104.4
93.5
110.1
111.4
103.2
94.4
113.7
115.7
102.7
93.9
110.4
112.2
100.8
92.2
113.3
115.8
99.9
92.4
111.3
113.1
101.6
93.0
111.3
112.8
103.6
94.6
110.0
111.8
100.2
78.0
99.9
98.5
99.1
99.2
99.4
99.5
99.9
100.2
100.6
100.6
100.4
99.9
100.0
99.7
77.6
111.0
109.4
110.2
110.2
110.5
110.5
111.0
111.3
111.4
111.5
111.3
111.1
110.7
111.0
Note. The statistics in the G. 17 release cover output, capacity, and capacity utilization in the
industrial sector, which the Federal Reserve defines are manufacturing, mining, and electric
and gas utilities. Manufacturing consists of those industries included in the North American
Industry Classification System, or NAICS, manufacturing plus those industries—logging and
newspaper, periodical, book and directory publishing—that have traditionally been considered manufacturing and included in the industrial sector.
1. Data in this table appear in the B o a r d ' 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 2002. The recent annual revision will be described in an upcoming
issue of the Bulletin.
2. North American Industry Classification System.
A44
3.10
International Statistics • March 2003
U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly data seasonally adjusted except as noted1
2001
Item credits or debits
1 Balance
2002
2001
Q3
Q4
Ql
Q2
Q3 P
-91,331
-79,778
242,325
-322,103
807
2,345
23,908
-21,563
-1,538
-12,360
-95,086
-88,028
232,930
-320,958
6,521
8,102
28,602
-20,500
-1,581
-13,579
-112,454
-95,492
233,252
-328,744
-946
682
22,069
-21,387
-1,628
-16,016
-127,611
-109,313
244,540
-353,853
-5,287
-3,629
18,795
-22,424
-1,658
-13,011
-127,041
-110,861
249,409
-360,270
-2,959
-1,375
18,821
-20,196
-1,584
-13,221
-292,856
-262,237
957,146
-1,219,383
18,138
23,877
75,009
-51,132
-5,739
-48,757
-410,341
-378,681
1,064,239
-1,442,920
21,782
27,651
88,862
-61,211
-5,869
-53,442
2,750
-941
-486
77
143
133
42
172
8,747
0
10
5,484
3,253
-290
0
-722
2,308
-1,876
—4,911
0
-630
-3,600
-681
-3,559
0
-145
-3,242
-172
-199
0
-140
83
-142
390
0
-109
652
-153
-1,843
0
-107
-1,607
-129
-1,416
0
-132
-1,136
-148
^189,066
-76,263
-95,466
-128,436
-188,901
-605,258
-148,657
-150,805
-127,502
-178,294
-365,565
-128,705
-14,358
-94,662
-127,840
28,460
69,576
-9,479
10,087
-41,724
-100,032
-83,682
37,210
-26,090
-27,470
-26,441
727
65
2,047
-29,280
-129,278
-68,655
-16,693
-9,675
-34,255
25,164
46,419
-12,087
18,295
-27,463
22 Change in foreign official assets in United States (increase, +)
U.S. Treasury securities
23
24
Other U.S. government obligations
25
Other U.S. government liabilities 2
26
Other U.S. liabilities reported by U.S. banks 2
27
Other foreign official assets 3
43,666
12,177
20,350
-2,740
12,964
915
37,640
-10,233
40,909
-1,909
5,746
3,127
5,224
10,745
20,920
-1,882
-30,278
5,719
16,882
15,810
-216
89
-782
1,981
5,086
16,760
7,630
-504
-20,507
1,707
7,641
-582
7,296
-790
991
726
47,252
15,193
6,548
54
24,531
926
9,319
1,424
10,885
999
-4,824
835
28 Change in foreign private assets in United States (increase, +)
29
U.S. bank-reported liabilities 4
30
U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net
32
U.S. currency flows
33
Foreign purchases of other U.S. securities, net
34
Foreign direct investments in United States, net
698,813
54,232
78,383
-44,497
22,407
298,834
289,454
978,346
116,971
174,251
-76,965
1,129
455,213
307,747
747,582
110,667
82,353
-7,670
23,783
407,653
130,796
1,007
^15,567
-25,154
-15,470
8,203
64,787
14,208
245,711
85,598
1,170
27,229
10,497
99,320
21,897
105,855
-11,051
32,345
-7,282
4,525
71,095
16,223
157,055
32,240
21,056
-5,124
7,183
104,404
-2,704
139,191
8,299
15,961
54,691
2,556
46,647
11,037
-3,340
31,286
837
7
826
10,701
31,286
7
10,701
206
48,258
-10,286
58,544
205
-55,828
1,721
-57,549
208
24,668
10,019
14,649
200
54,183
1,256
52,927
223
•^15,612
-14,063
-31,549
2
3
4
5
6
7
8
y
10
n
on current account
Balance on goods and services
Exports
Imports
Income, net
Investment, net
Direct
Portfolio
Compensation of employees
Unilateral current transfers, net
2000
1999
Change in U.S. government assets other than official
reserve assets, net (increase, - )
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
17 Change in U.S. private assets abroad (increase, - )
18
Bank-reported claims 2
19
Nonbank-reported claims
U.S. purchase of foreign securities, net
20
21
U.S. direct investments abroad, net
35 Capital account transactions, net 5
36 Discrepancy
Due to seasonal adjustment
37
38
Before seasonal adjustment
-393,371
-358,290
998,022
-1,356,312
14,382
20,539
102,595
-82,056
-6,157
-49,463
MEMO
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)
8,747
-290
-4,911
-3,559
-199
390
-1,843
-1,416
46,406
39,549
7,106
16,793
5,590
8,431
47,198
8,320
1,621
12,000
-1,725
-4,081
3,382
-8,532
838
-1,299
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 depository1 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 of Current
Business.
Summary Statistics
3.12
A45
U.S. RESERVE ASSETS
Millions of dollars, end of period
2003
2002
Asset
1999
2000
2001
July
Aug.
74,696
June
Sept.
Oct.
Nov.
Dec.
Jan.e
1 Total
71,516
67,647
68,654
74,751
75,307
75,860
75,499
75,690
79,006
78,434
2 Gold stock 1
3 Special drawing rights 2 - 3
4 Reserve position in International Monetary
Fund 2
5 Foreign currencies 4
11,048
10,336
11,046
10,539
11,045
10,774
11,044
11,645
11,042
11,575
11,042
11,752
11,042
11,710
11,042
11,700
11,043
11,855
11,043
12,166
11,043
11,298
17,950
32,182
14,824
31,238
17,854
28,981
19,841
32,166
19,863
32,271
20,043
32,470
20,857
32,251
20,586
32,171
20,480
32,312
21,979
33,818
21,953
34,140
SDR holdings and reserve positions in the IMF also have been valued on this basis since July
1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the year
indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979—
$1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net transactions in SDRs.
4. Valued at current market exchange rates.
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
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
2002
Asset
1999
2000
June
1 Deposits
Held in custody
2 U.S. Treasury securities 2
3 Earmarked gold 3
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.P
71
215
61
90
164
86
150
89
78
136
102
632,482
9,933
594,094
9,451
592,630
9,099
619,226
9,077
635,036
9,071
638,003
9,064
644,381
9,057
647,165
9,050
669,092
9,045
678,106
9,045
683,837
9,045
1. Excludes deposits and U.S. Treasury securities held for international and regional
organizations
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury
securities, in each case measured at face (not market) value.
2003
2001
3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not
included in the gold stock of the United States.
A46
3.15
International Statistics • March 2003
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
2000
Item
1 Total1
By
2000
2001
2002
1999
Mar.6
Mar.6
Dec.
Dec.
Aug.
Sept.
Oct.
NOV.P
806,318
829,290
958,725
975,304
987,572
1,048,990
1,050,056
1,048,007
1,069,278
type
1
3
Liabilities reported b y b a n k s in the U n i t e d States2
U.S. T r e a s u r y bills a n d certificates3
138,847
156,177
136,577
164,781
136,577
164,781
144,593
123,429
161,719
138,281
188,805
143,028
136,639
153,010
185,187
188,474
138,082
190,111
4
U.S. T r e a s u r y b o n d s a n d notes
Marketable
422,266
430,243
5,734
91,955
465,111
82,917
186,522
450,832
5,348
221,521
454,306
3,411
244,707
450,371
3,040
268,493
446,860
3,058
271,923
446,307
3,078
273,509
462,884
3,097
275,104
244,805
12,503
73,518
463,703
7,523
4,266
251,815
13,683
77,195
474,269
7,979
4,349
238,548
15,016
70,884
612,116
13,504
8,655
240,325
13,727
70,442
626,017
14,690
10,101
243,452
13,440
71,103
635,180
15,167
9,228
255,235
10,886
62,026
693,752
15,257
11,832
260,423
10,097
62,227
690,902
14,514
11,891
254,345
10,300
64,289
692,351
15,524
11,196
265,784
10,975
63,000
701,158
15,253
13,106
Nonmarketable4
5
6,111
6 U.S. securities other than U.S. T r e a s u r y securities5
By
area
7 Europe1
8 Canada
9 Latin America and Caribbean
10 A s i a
12 O t h e r c o u n t r i e s
1. I n c l u d e s t h e B a n k f o r I n t e r n a t i o n a l S e t t l e m e n t s .
2. Principally d e m a n d deposits, t i m e deposits, bankers acceptances, c o m m e r c i a l paper,
negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes n o n m a r k e t a b l e certificates of indebtedness a n d T r e a s u r y bills issued to official
institutions of foreign countries.
4. E x c l u d e s notes issued to foreign official nonreserve agencies. Includes current value of
z e r o - c o u p o n Treasury b o n d issues to foreign g o v e r n m e n t s as follows: M e x i c o , beginning
M a r c h 1990, 30-year maturity issue; Venezuela, beginning D e c e m b e r 1990, 30-year maturity
issue; Argentina, beginning April 1993, 30-year maturity issue.
5. D e b t securities of U.S. g o v e r n m e n t c o r p o r a t i o n s and federally s p o n s o r e d agencies,
U.S. corporate stocks and bonds.
3.16
LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
5,734
6. D a t a
foreigners'
comparable
benchmark
dates.
in t h e t w o c o l u m n s s h o w n f o r this d a t e r e f l e c t d i f f e r e n t b e n c h m a r k b a s e s f o r
h o l d i n g s o f s e l e c t e d U . S . l o n g - t e r m s e c u r i t i e s . F i g u r e s i n t h e first c o l u m n a r e
t o t h o s e f o r e a r l i e r d a t e s ; figures i n t h e s e c o n d c o l u m n a r e b a s e d i n p a r t o n a
survey as of e n d - M a r c h 2 0 0 0 and are c o m p a r a b l e to those s h o w n for f o l l o w i n g
SOURCE. B a s e d o n U.S. D e p a r t m e n t of t h e T r e a s u r y d a t a a n d o n d a t a r e p o r t e d to t h e
T r e a s u r y b y b a n k s (including Federal R e s e r v e B a n k s ) a n d securities dealers in the U n i t e d
S t a t e s , a n d in p e r i o d i c b e n c h m a r k s u r v e y s o f f o r e i g n p o r t f o l i o i n v e s t m e n t i n t h e U n i t e d
States.
and
Reported by Banks in the United States 1
Payable in Foreign Currencies
Millions of dollars, end of period
2001
Item
1998
1999
Dec.
1 B a n k s ' liabilities
2 Banks' claims
Deposits
3
4
Other claims
5 Claims of banks' domestic customers2
101,125
78,162
45,985
32,177
20,718
1. D a t a o n c l a i m s e x c l u d e f o r e i g n c u r r e n c i e s h e l d b y U . S . m o n e t a r y a u t h o r i t i e s .
88,537
2002
2000
67,365
77,779
56,912
34,426
32,939
20,826
23,315
33,597
24,411
79,363
74,840
44,094
30,746
17,631
Mar.
June
Sept.
74,955
89,892
77,746
90,695
81,761
85,292
46,778
30,968
16,642
51,933
38,762
44,638
40,654
15,848
20,475
2. A s s e t s o w n e d b y c u s t o m e r s of t h e r e p o r t i n g b a n k l o c a t e d in t h e U n i t e d S t a t e s t h a t
represent claims on foreigners held by reporting b a n k s for the accounts of the d o m e s t i c
customers.
Nonbank-Reported
3.17
LIABILITIES TO FOREIGNERS
Data
A47
Reported by Banks in the United States 1
Payable in U.S. dollars
Millions of dollars, end of period
2002
Item
1999
2000
2001
May'
June'
July'
Aug.
Sept.'
Oct.'
NOV.P
B Y H O L D E R AND T Y P E OF LIABILITY
1
Total, all foreigners
2 Banks' own liabilities
3
Demand deposits
4
Time deposits 2
5
Other 3
6
Own foreign offices 4
7 Banks' custodial liabilities 5
8
U.S. Treasury bills and certificates 6
9
Short-term agency securities 7
Other negotiable and readily transferable
10
instruments 8
11
Other
12 Nonmonetary international and regional organizations 9
13
Banks' own liabilities
14
Demand deposits
15
Time deposits 2
16
Other 3
17
18
19
20
21
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Short-term agency securities 7
Other negotiable and readily transferable
instruments 8
Other
22 Official institutions 10
23
Banks' own liabilities
24
Demand deposits
25
Time deposits 2
26
Other 3
27
28
29
30
31
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Short-term agency securities 7
Other negotiable and readily transferable
instruments 8
Other
32 Banks"
33
Banks' own liabilities
34
Unaffiliated foreign banks
35
Demand deposits
36
Time deposits 2
37
Other 3
Own foreign offices 4
38
39
40
41
42
43
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Short-term agency securities 7
Other negotiable and readily transferable
instruments 8
Other
44 Other foreigners
45
Banks' own liabilities
46
Demand deposits
47
Time deposits 2
Other 3
48
49 Banks' custodial liabilities 5
50
U.S. Treasury bills and certificates 6
Short-term agency securities 7
51
52
Other negotiable and readily transferable
instruments 8
53
Other
1,408,740
1,511,410
l,655,348 r
1,726,164
1,741,987
1,723,335
l,782,832 r
1,769,232
1,861,732
1,795,330
971,536
42,884
163,620
155,853
609,179
1,077,636
33,365
187,883
171,401
684,987
l,181,097 r
33,603
155,466
199,737'
792,291'
1,219,532
32,060
136,664
235,816
814,992
1,198,735
34,600
130,682
237,490
795,963
1,178,576
32,558
124,167
257,097
764,754
1,224,916
31,428
125,270
261,964
806,254
1,218,213
32,027
120,348
277,640
788,198
1,305,746
31,607
127,915
268,324
877,900
1,241,875
34,599
125,270
261,648
820,358
437,204
185,676
n.a.
433,774
177,846
n.a.
474,251'
188,051'
65,534
506,632
193,330
77,706
543,252
210,411
86,015
544,759
224,629
71,211
557,916'
227,788'
73,724'
551,019
225,163
75,649
555,986
223,996
80,148
553,455
226,303
69,430
132,617
118,911
145,840
110,088
91,147
129,519'
97,316
138,280
97,950
148,876
106,697
142,222
110,171'
146,233'
107,779
142,428
107,746
144,096
107,756
149,966
15,276
14,357
98
10,349
3,910
12,542
12,140
41
6,246
5,853
10,830'
10,169
35
3,756
6,378
12,129
11,756
14
6,730
5,012
11,568
11,138
32
6,401
4,705
11,495
10,993
15
7,394
3,584
10,540
9,986
34
6,294
3,658
11,796
11,008
52
5,702
5,254
13,153
12,538
61
6,156
6,321
12,253
11,475
42
5,181
6,252
919
680
n.a.
402
252
n.a.
661'
600'
40
373
328
18
430
407
0
502
481
0
554
532
0
788
764
0
615
597
0
778
760
0
233
6
149
21
0
27
1
0
23
0
21
0
22
0
18
6
18
0
18
0
295,024
97,615
3,341
28,942
65,332
297,603
96,989
3,952
35,573
57,464
285,148
83,828
2,988
19,467
61,373
299,779
86,419
2,002
15,531
68,886
323,316
92,989
1,707
14,568
76,714
329,868
93,572
2,146
13,475
77,951
327,086'
89,340
1,946
14,405
72,989
328,215
96,513
1,900
13,275
81,338
325,113
91,468
2,915
13,902
74,651
328,193
93,144
3,664
12,753
76,727
197,409
156,177
n.a.
200,614
153,010
n.a.
201,320
161,719
36,351
213,360
162,034
49,266
230,327
175,686
51,531
236,296
187,997
45,184
237,746'
188,805'
45,131'
231,702
185,187
44,082
233,645
188,474
42,767
235,049
190,111
42,479
41,182
50
47,366
238
2,180
1,070
1,255
805
2,088
1,022
2,281
834
2,615'
1,195
1,489
944
1,624
780
1,658
801
900,379
728,492
119,313
17,583
48,140
53,590
609,179
972,932
821,306
136,319
15,522
66,904
53,893
684,987
1.071,890'
914,488'
122,197'
13,091
53,105
56,001'
792,291'
1,139,176
941,574
126,582
12,875
41,364
72,343
814,992
1,125,620
914,078
118,115
14,620
37,094
66,401
795,963
1,078,997
875,065
110,311
12,790
31,780
65,741
764,754
1,121,245'
911,686
105,432
11,804
33,899
59,729
806,254
1,108,102
901,654
113,456
11,391
30,936
71,129
788,198
1,214,241
998,917
121,017
10,989
35,672
74,356
877,900
1,149,792
936,391
116,033
12,193
36,876
66,964
820,358
171,887
16,796
n.a.
151,626
16,023
n.a.
157,402'
13,477
7,831
197,602
17,092
9,325
211,542
18,557
14,629
203,932
20,287
5,176
209,559'
20,913'
6,132'
206,448
20,509
10,221
215,324
19,680
18,131
213,401
18,887
9,626
45.695
109,396
36,036
99,567
33,102
102,992'
54,661
116,524
52,454
125,902
60,104
118,365
61,428'
121,086'
58,487
117,231
57,891
119,622
58,839
126,049
198,061
131,072
21,862
76,189
33,021
228,333
147,201
13,850
79,160
54,191
287,480'
172,612'
17,489
79,138
75,985'
275,080
179,783
17,169
73,039
89,575
281,483
180,530
18,241
72,619
89,670
302,975
198,946
17,607
71,518
109,821
323,961'
213,904
17,644
70,672
125,588
321,119
209,038
18,684
70,435
119,919
309,225
202,823
17,642
72,185
112,996
305,092
200,865
18,700
70,460
111,705
66,989
12,023
n.a.
81,132
8,561
n.a.
114,868
12,255
21,312
95,297
13,876
19,097
100,953
15,761
19,855
104,029
15,864
20,851
110,057'
17,538'
22,461'
112,081
18,703
21,346
106,402
15,245
19,250
104,227
16,545
17,325
45,507
9,459
62,289
10,282
55,844
25,457
41,373
20,951
43,385
21,952
44,291
23,023
46,106'
23,952'
47,785
24,247
48,213
23,694
47,241
23,116
30,345
n.a.
34,217
n.a.
20,440
150,806
24,337
154,803
28,943
159,627
29,399
180,775
29,847'
192,299
29,700
205,171
29,198
191,970
26,434
182,817
MEMO
54 Negotiable time certificates of deposits in custody for
foreigners
55 Repurchase agreements 7
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 deposit, which are included in "Other negotiable
and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
principally of amounts owed to the head office or parent foreign bank, and to foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term securities, held
by or through reporting banks for foreign customers.
6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
7. Data available beginning January 2001.
8. Principally bankers acceptances, commercial paper, and negotiable time certificates of
deposit.
9. 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.
10. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
11. Excludes central banks, which are included in "Official institutions."
A48
3.17
International Statistics • March 2003
LIABILITIES TO FOREIGNERS
Reported by Banks in the United States'—Continued
Payable in U.S. dollars
Millions of dollars, end of period
2002
Item
1999
2000
2001
May
June
July
Aug.
Sept.
Oct.
Nov. p
A R E A OR C O U N T R Y
56 Total, all foreigners
1,408,740
1,511,410
l,655,348 r
1,726,164' 1,741,987' 1,723,335' 1,782,832' 1,769,232' 1,861,732' 1,795,330
57 Foreign countries
1,393,464
1,498,867
l,644,518 r
l,714,035 r 1,730,419'
441,810
2,789
44,692
2,196
1,658
49,790
24,753
3,748
6,775
n.a.
8,143
1,327
2,228
5,475
10,426
4,652
63,485
7,842
172,687
n.a.
286
28,858
446,788
2,692
33,399
3,000
1,411
37,833
35,519
2,011
5,072
n.a.
7,047
2,305
2,403
19,018
7,787
6,497
74,635
7,548
167,757
n.a.
276
30,578
521,331
2,922
6,557
3,626
1,446
49,056
22,375
2,307
6,354
16,894
12,411
3,727
4,033
20,800
8,811
3,375
66,403
7,474
204,396
36,059
309
41,996
34,214
30,982
27,25 l r
24,778'
24,452'
26,629'
24,887'
24,946'
26,570'
24,381
117,495
18,633
12,865
7,008
5,669
1,956
1,626
30,717
4,415
1,142
2,386
20,192
10,886
120,041
19,451
10,852
5,892
4,542
2,112
1,601
32,166
4,240
1,427
3,003
24,730
10,025
118,025'
10,704
14,169
4,939
4,695
2,390
1,882
39,87 l r
3,610
1,359
3,172'
24,974
6,260
110,059'
11,703'
12.892
6,643
4,273
2,294
1,335
35,250
3,273
1,270
2,410
22,333
6,383
106,035'
11,408'
12,968
6,121
4,010
2,259
1,319
32,441'
3,894
1,417
2,373
21,738
6,087
105,762'
11,362'
12,537
6,394
3,872
2,324
1,323
33,301
3,143
1,502
1,885
21,771
6,348
106,466'
11,482'
12,051
5,798
3,718
2,266
1,384
34,916
3,154
1,353
2,614
21,547
6,183
104,148'
11,223'
11,583
5,494
4,509
2,374
1,535
32,486
3,225
1,369
2,613
21,355
6,382
106,888'
12,091'
11,581'
5,827
3,847
2,155
1,500
34,665'
3,574'
1,300
2,583
21,661
6,104'
103,939
11,643
10,275
5,363
4,644
2,254
1,382
32,606
3,659
1,361
2,589
22,309
5,854
94 Caribbean
Bahamas
95
96
Bermuda
97
British West Indies 17
98
Cayman Islands 17
99
Cuba
100
Jamaica
Netherlands Antilles
101
102
Trinidad and Tobago
Other Caribbean 16
103
461,200
135,811
7,874
312,278
n.a.
75
520
4,047
595
n.a.
573,337
189,298
9,636
367,197
n.a.
90
794
5,428
894
n.a.
665.797'
178,472'
10,539
n.a.
458,848'
88
1,182
3,264
1,269
12,135'
694,453'
172,138'
13,984'
n.a.
489,323'
93
996
3,307'
1,634
12,978'
701,778'
179,365'
16,420'
n.a.
484,453'
96
924
3,749'
1,593
15,178'
695,012'
160,425'
20,436'
n.a.
491,372'
92
931
3,94a
1,691
16,125'
735,460'
172,518'
24,968'
n.a.
509,570'
99
948
10,538'
1,803
15,016'
704,288'
166,477'
24,692'
n.a.
494,793'
92
932
4,381'
1,562
11,359'
721,354'
159,867'
23,158'
n.a.
519,782'
92
856
5,293'
1,471
10,835'
700,649
146,043
25,764
n.a.
509,380
94
827
5,476
1,580
11,485
104
319,489
305,554
294,496
316,486'
339,418'
329,479'
325,959'
324,958'
313,912'
315,088
12,325
13,603
27,701
7,367
6,567
7,488
159,075
12,988
3,268
6,050
21,314
41,743
16,531
17,352
26,462
4,530
8,514
8,053
150,415
7,955
2,316
3,117
23,763
36,546
10,498
17,633
26,494
3,708
12,383
7,870
155,314
9,019
1,772
4,743
20,035
25,027
22,410
21,733
32,076'
4,980
12,623
8,965
162,464'
6,592
1,544
5,060
16,894'
21,145'
20,779
23,480
32,902'
7,061
13,871
8,954
180,557'
6,826
1,754
5,966
15,348'
21,920'
18,106
19,068
34,485'
7,370
13,589
9,757
177,329'
7,038
2,080
4,591
14,233'
21,833'
18,808
20,103
31,003'
7,240
13,805
7,952
175,289'
6,845
1,572
5,113
15,434'
22,795'
14,621
21,726
31,663'
7,488
13,098
11,619
171,091'
6,562
2,064
5,044
15,992'
23,990'
15,852
23,269
30,073'
7,182
12,316
9,105
161,253'
6,287
1,589
7,021
14,351'
25,614'
14,439
23,517
32,291
7,489
12,895
8,870
162,114
6,481
1,452
8,692
11,473
25,375
9,468
2,022
179
1,495
14
2,914
2,844
10,824
2,621
139
1,010
4
4,052
2,998
11,365
2,778
274
839
4
4,377
3,093
11,675'
3,605
271'
653'
7
3,561
3,578
11,839'
3,672
346'
655'
n.a.
3,522
3,644
12,105'
3,411
297'
694'
1
3,757
3,945
12,098'
3,179
307
747'
n.a.
3,940
3,925
11,115'
2,538
329
747'
86
3,670
3,745
11,905'
2,545
335
662'
n.a.
4,635
3,728
11,631
2,484
255
695
2
4,983
3,212
124 Other countries
Australia
125
New Zealand 20
126
127
All other
9,788
8,377
n.a.
1,411
11,341
10,070
n.a.
1,271
6,253
5,599
242
412
8,144'
6,503'
1,152'
489
9,282'
7,858'
1,061'
363
9,093'
7,506'
1,230'
357
10,329'
8,593'
1,321'
415
10,033'
7,917'
1,592'
524
9,288'
7,547'
1,257'
484
11,697
9,330
2,121
246
128 Nonmonetary international and regional organizations
International 21
129
Latin American regional 22
130
Other regional 23
131
15,276
12,876
1,150
1,250
12,543
11,270
740
533
10,830'
9,331'
480
935
12,129
10,851
644
550
10,542
9,422
402
643
11,797'
9,567'
394
1,766
58 Europe
Austria
59
60
Belgium 12
61
Denmark
62
Finland
63
France
64
Germany
65
Greece
Italy
66
Luxembourg 1 2
67
Netherlands
68
69
Norway
Portugal
70
71
Russia
72
Spain
Sweden
73
74
Switzerland
Turkey
75
76
United Kingdom
Channel Islands and Isle of Man 1 3
77
78
Yugoslavia 14
Other Europe and other former U.S.S.R. 15
79
80 Canada
81 Latin America
82
Argentina
83
Brazil
84
Chile
85
Colombia
Ecuador
86
Guatemala
87
88
Mexico
Panama
89
90
Peru
91
Uruguay
92
Venezuela
93
Other Latin America 16
105
106
107
108
109
110
111
112
113
114
115
116
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries 18
Other
117
118
119
120
121
122
123
Egypt
Morocco
South Africa
Congo (formerly Zaire)
Oil-exporting countries 19
Other
12. Before January 2001, data for Belgium-Luxembourg were combined.
13. Before January 2001, these data were included in data reported for the United
Kingdom.
14. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
15. Includes the Bank for International Settlements and the European Central Bank. Since
December 1992, has included all parts of the former U.S.S.R. (except Russia), and Bosnia,
Croatia, and Slovenia.
16. Before January 2001, data for "Other Latin America" and "Other Caribbean" were
combined in "Other Latin America and Caribbean."
17. Beginning January 2001, data for the Cayman Islands replaced data for the British
West Indies.
548,440'
3,096
6,723
3,426'
1,198
36,174
26,799'
2,700
4,606'
23,589'
8,612'
7,681
4,905
24,211
9,764
5,677
114,780'
11,216
173,076'
38,725'
273
41,209'
537,615'
3,563
6,066
3,387'
1,197
35,390
25,203'
3,570
4,680'
24,173'
6,552'
11,164
4,616
25,060
11,032
4,176
100,117'
9,912'
176,926'
38,881'
267
41,683'
11,568
10,490
342
645
l,711,840 r 1,772,290' 1,757,435' l,848,579 r 1,783,077
533,760'
2,862
6,462
3,478'
3,503
39,809
27,832'
2,815
3,900'
24,294'
6,012'
14,540
3,496
24,189
10,394
4,815
85,613'
10,701
176,397'
39,432'
279
42,937'
11,495
10,097
386
894
557,091'
3,537
6,270
4,061'
1,498
35,447
27,081'
2,677
3,426'
25,436'
8,208'
10,047
3,055
24,196
12,423
5,709
102,088'
12,393
184,152'
38,215'
276
46,896'
577,947'
3,081
8,389
3,112'
1,259
37,915
31,334'
2,612
3,439'
25,750'
7,65c
17,747
3,695
25,252
12,596
4,137
105,386'
12,790'
183,756'
38,982'
280
48,785'
658,662'
3,053
7,420
3,004'
5,170
38,515'
31,558'
3,357
5,029'
25,680'
7,974'
18,895
3,220
24,407
12,825
4,857
182,152'
11,226
184,483'
40,070'
316
45,451'
13,153
11,725
561
789
615,692
2,439
8,020
3,340
2,631
40,646
32,053
3,353
5,566
27,720
8,638
14,681
3,093
25,466
15,575
3,859
141,123
11,748
181,921
38,889
332
44,599
12,253
10,582
478
1,120
18. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
19. Comprises Algeria, Gabon, Libya, and Nigeria.
20. Before January 2001, these data were included in "All other."
21. Principally the International Bank for Reconstruction and Development. Excludes
"holdings of dollars" of the International Monetary Fund.
22. Principally the Inter-American Development Bank.
23. Asian, African, Middle Eastern, and European regional organizations, except the Bank
for International Settlements, which is included in "Other Europe."
Nonbank-Reported
3.18
Data
Reported by Banks in the United States 1
BANKS' OWN CLAIMS ON FOREIGNERS
Payable in U.S. dollars
Millions of dollars, end of period
2002
Area or country
1999
2000
2001
May
June
July'
Aug.'
Sept.'
Oct.'
NOV.p
1 Total, all foreigners
793,139
904,642
l,055,069 r
l,089,443 r
l,lll,028r
1,048,304
1,086,297
1,064,643
1,136,002
1,096,183
2 Foreign countries
788,576
899,956
l,050,123 r
l,084,669 r
l,106,782 r
1,043,668
1,082,050
1,062,005
1,133,302
1,092,865
311,686
2,643
10,193
1,669
2,020
29,142
29,205
806
8,496
n.a.
11,810
1,000
1,571
713
3,796
3,264
79,158
2,617
115,971
n.a.
50
7,562
378,115
2,926
5,399
3,272
7,382
40,035
36,834
646
7,629
n.a.
17,043
5,012
1,382
517
2,603
9,226
82,085
3,059
144,938
n.a.
50
8,077
461,176 r
4,981 r
6,39 LR
1,105
10,350
60,620 r
29,902
330
4,205
1,267
15,908 r
6,236 r
1,603
594
3,260
12,544
87,333
2,124
201,183'
4,478
n.a.
6,762
51 l,308 r
3,558
4,019
1,062
14,279
58,156'
29,033
354
4,050
3,552
16,275'
8,288'
1,594
826
3,130
13,348
137,532
2,953
198,176'
3,835
1
7,287
504,071'
3,963
5,197
1,248
16,517
58,714'
28,891
330
4,378
3,547
16,421'
8,513'
1,780
1,145
3,081
13,814
119,244
2,662
203,608'
4,246
n.a.
6,772
464,450
4,046
7,126
856
13,718
59,052
26,156
393
5,568
3,526
13,660
9,420
1,995
867
3,336
14,932
87,969
2,410
198,133
4,962
n.a.
6,325
483,076
4,297
5,140
1,546
16,230
51,798
26,072
438
4,442
3,067
18,232
10,578
1,823
842
3,589
14,618
106,281
2,515
202,178
5,076
n.a.
4,314
470,315
4,336
4,689
1,483
15,812
51,083
23,344
408
4,942
2,847
17,691
11,036
2,006
801
4,675
13,970
103,920
2,474
194,757
5,926
n.a.
4,115
543,149
3,876
5,590
1,534
14,821
47,065
21,101
388
3,984
2,818
13,284
11,848
2,000
858
3,183
15,366
184,039
2,622
195,816
7,281
n.a.
5,675
490,654
4,224
5,784
940
9,028
54,089
22,103
331
3,945
3,224
15,572
11,464
2,134
787
4,776
15,239
134,425
2,532
183,305
11,466
n.a.
5,286
3 Europe
Austria
4
Belgium 2
5
Denmark
6
Finland
7
France
8
9
Germany
Greece
10
Italy
11
1? Luxembourg 2
13
Netherlands
Norway
14
IS Portugal
Russia
16
Spain
17
Sweden
18
19
Switzerland
Turkey
20
?l United Kingdom
Channel Islands and Isle of Man 3
72
Yugoslavia 4
23
Other Europe and other former U.S.S.R. 5
24
25 Canada
37,206
39,837
54,421
57,451
60,591'
63,235
60,310
62,836
57,522
59,871
?6 Latin America
Argentina
71
Brazil
?8
99
Chile
Colombia
30
31
Ecuador
3?
Guatemala
Mexico
33
Panama
34
35
Peru
Uruguay
36
Venezuela
37
Other Latin America 6
38
74,040
10,894
16,987
6,607
4,524
760
1,135
17,899
3,387
2,529
801
3,494
5,023
76,561
11,519
20,567
5,815
4,370
635
1,244
17,415
2,933
2,807
673
3,518
5,065
69,762
10,763
19,434
5,317
3,602
495
1,495
16,522
3,061
2,185
447
3,077
3,364
65,501'
9,234'
18,797
4,950
3,516
519
905
16,449'
2,750'
1,923
357
3,353
2,748
66,851
11,019
19,019
4,874
3,266
500
882
16,266
2,599
1,833
324
3,337
2,932
63,194
8,202
18,512
4,949
3,216
462
871
16,349
2,466
1,748
314
3,306
2,799
62,214
8,090
17,945
4,960
3,158
479
861
16,015
2,433
1,649
527
3,291
2,806
60,377
7,663
17,266
5,118
3,078
467
925
15,805
1,959
1,599
345
3,301
2,851
59,261
7,608
16,863
5,142
2,834
451
907
15,367
2,021
1,504
319
3,389
2,856
58,223
7,253
15,871
5,328
2,758
451
889
15,828
1,961
1,484
292
3,231
2,877
39 Caribbean
Bahamas
40
Bermuda
41
British West Indies 7
42
Cayman Islands 7
43
Cuba
44
45
Jamaica
46
Netherlands Antilles
Trinidad and Tobago
47
Other Caribbean 6
48
281,128
99,066
8,007
167,189
n.a.
295
5,982
589
n.a.
319,403
114,090
9,260
189,289
n.a.
0
355
5,801
608
n.a.
370,945
101,034
7,900
n.a.
250,376
n.a.
418
6,729
931
3,557
360,258
107,269
8,380
n.a.
234,758
n.a.
408
5,578
834
3,031
374,959'
108,369
11,088
n.a.
243,868'
n.a.
361
6,859
862
3,552'
345,580
96,886
11,723
n.a.
225,681
n.a.
350
6,387
881
3,672
367,915
95,704
11,847
n.a.
248,107
n.a.
353
7,334
877
3,693
347,755
91,146
11,304
n.a.
234,435
n.a.
463
6,194
916
3,297
356,635
96,126
12,196
n.a.
236,096
n.a.
429
7,427
920
3,441
372,513
93,814
9,902
n.a.
257,502
n.a.
393
6,744
910
3,248
75,143
77,829
85,882
83,214'
92,508'
99,551
100,484
112,440
109,359
104,181
2,110
1,390
5,903
1,738
1,776
1,875
28,641
9,426
1,410
1,515
14,267
5,092
1,606
2,247
6,669
2,178
1,914
2,729
34,974
7,776
1,784
1,381
9,346
5,225
2,073
4,407
9,995
1,348
1,752
4,396
34,125
10,622
2,587
2,499
7,882
4,196
4,857
3,262'
5,350
1,414
1,564
3,747
32,949'
13,384'
1,332
716
9,555
5,084
6,047
6,531'
5,596
1,462
1,571
3,411
36,413'
14,990'
1,995
730
9,061
4,701
7,832
6,954
6,614
1,083
1,553
4,647
35,947
18,065
1,857
1,160
8,960
4,879
5,904
7,443
6,531
1,293
1,457
4,952
37,559
18,961
1,593
1,175
8,975
4,641
7,256
8,656
8,481
1,258
1,426
5,067
45,058
17,404
2,134
1,841
8,619
5,240
8,515
8,599
5,778
999
1,390
4,710
42,252
19,439
1,843
1,205
9,253
5,376
6,575
7,034
6,849
921
1,360
3,836
47,071
14,293
1,555
756
8,251
5,680
6? Africa
63
Egypt
Morocco
64
65
South Africa
Congo (formerly Zaire)
66
Oil-exporting countries'
67
Other
68
2,268
258
352
622
24
276
736
2,094
201
204
309
0
471
909
2,095
416
106
710
n.a.
167
696
1,877
337
85
559
n.a.
247
649
2,069
418
79
649
n.a.
232
691
1,914
405
77
545
n.a.
227
660
1,887
324
72
601
n.a.
247
643
1,891
332
58
576
n.a.
303
622
1,790
326
50
554
n.a.
261
599
1,658
428
52
435
n.a.
225
518
69 Other countries
Australia
70
New Zealand 10
71
All other
72
7,105
6,824
n.a.
281
6,117
5,868
n.a.
249
5,842
5,455
349
38
5,060
4,633
406
21
5,733
5,272
455
6
5,744
5,345
392
7
6,164
5,616
541
7
6,391
5,589
789
13
5,586
5,088
485
13
5,765
5,303
439
23
11
73 Nonmonetary international and regional organizations
4,563
4,686
4,946
4,774
4,246
4,636
4,247
2,638
2,700
3,318
49 Asia
China
Mainland
50
Taiwan
51
Hong Kong
57
53
India
Indonesia
54
Israel
IS
Japan
56
Korea (South)
57
Philippines
58
59
Thailand
Middle Eastern oil-exporting countries 8
60
Other
61
0
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2. Before January 2001, combined data reported for Belgium-Luxembourg.
3. Before January 2001, data included in United Kingdom.
4. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
5. Includes the Bank for International Settlements and European Central Bank. Since
December 1992, has included all parts of the former U.S.S.R. (except Russia) and Bosnia,
Croatia, and Slovenia.
6. Before January 2001, "Other Latin America" and "Other Caribbean" were reported as
combined "Other Latin America and Caribbean."
7. Beginning 2001, Cayman Islands replaced British West Indies in the data series.
8. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
9. Comprises Algeria, Gabon, Libya, and Nigeria.
10. Before January 2001, included in "All other."
11. Excludes the Bank for International Settlements, which is included in "Other Europe."
A49
A50
3.19
International Statistics • March 2003
BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
Reported by Banks in the United States 1
Payable in U.S. dollars
Millions of dollars, end of period
2002
May
July'
Aug.'
Sept.'
1,048,304
61,067
720,252
91,946
24,449
67,497
175,039
1,086,297
61,541
758,173
86,225
19,051
67,174
180,358
1,322,094
Oct.'
NOV.P
1,136,002
63,404
807,006
94,610
26,742
67,868
170,982
1,096,183
56,235
777,034
98,792
28,210
70,582
164,122
1,252,079
1 Total
944,937
1,095,869
2 Banks' claims
Foreign public borrowers
3
4
Own foreign offices 2
Unaffiliated foreign banks
5
6
Deposits
7
Other
8
All other foreigners
793,139
35,090
529,682
97,186
34,538
62,648
131,181
904,642
37,907
630,137
95,243
23,886
71,357
141,355
l,055,069 r
49,404 r
749,124
100,367
26,189
74.178
156,174'
151,798
88,006
191,227
100,352
199,794
93,565
211,066
94,129
187,436
86,455
51,161
78,147
90,412
104,532
88,648
12,631
12,728
15,817
12,405
12,333
4,553
n.a.
4,257
n.a.
2,588
137,655
134,901
2,356
152,383
162,975
164,355
2,353
159,880
159,662
148,438
31,125
53,153
60,745'
48,488
60,480
57,572
53,100
52,470
55,284
46,840
9 Claims of banks' domestic customers 3
Deposits
10
11
Negotiable and readily transferable
instruments 4
12
Outstanding collections and other
claims
l,254,863
June'
r
1,089,443'
49,441'
782,253'
89,279
21,598
67,681
168,470'
1,111,028
51,250
793,890
92,152
24,012
68,140
173,736
1,064,643
61,297
734,051
94,274
24,213
70,061
175,021
MEMO
13 Customer liability on acceptances
14 Banks' loans under resale agreements 5
15 Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United States 6
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 and bankers acceptances, and commercial paper.
5. Data available beginning January 2001.
6. Includes demand and time deposits and negotiable and nonnegotiable certificates of
deposit denominated in U.S. dollars issued by banks abroad.
1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are
for quarter ending with month indicated.
Reporting banks include all types of depository institution as well as some brokers and
dealers.
2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
3.20
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Reported by Banks in the United States 1
Payable in U.S. dollars
Millions of dollars, end of period
2002
2001
Maturity, by borrower and area 2
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of one year or less
Foreign public borrowers
All other foreigners
Maturity of more than one year
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
1998
1999
Dec.
Mar.
June
Sept.P
250,418
267,082
274,009
305,326
307,305
316,596
330,137
186,526
13,671
172,855
63.892
9,839
54,053
187,894
22,811
165,083
79,188
12,013
67,175
186,103
21,399
164,704
87,906
15,838
72,068
200,240
27,501
172,739
105,086
21,324
83,762
187,488
26,736
160,752
119,817
28,167
91,650
202,952
26,781
176,171
113,644
23,939
89,705
214,599
32,106
182,493
115,538
28,751
86,787
68,679
10,968
81,766
18,007
1,835
5.271
80,842
7,859
69,498
21,802
1,122
6,771
142,464
8,323
151,840
43,371
2,263
11,717
83,233
10,072
70,648
29,693
1,104
5,490
79,182
7,733
68,824
24,553
1,124
6,072
82,220
8,069
78,762
28,375
918
4,611
86,522
6,357
80,156
36,608
896
4,060
14,923
3.140
33,442
10,018
1,232
1,137
22,951
3,192
39,051
11,257
1,065
1,672
57,770
3,174
82,684
19,536
1,567
5,954
34,230
3,633
47,382
15,190
769
3,882
43,284
3,623
48,744
19,553
720
3,893
39,208
3,480
51,292
15,025
907
3,732
38,571
4,146
47,961
20,720
812
3,328
Note. Owing to changes in reporting requirements, this table will be discontinued in the
third quarter of 2003 after publication of the end-December 2003 data.
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2000
2. Maturity is time remaining until maturity,
3. Includes nonmonetary international and regional organizations.
Nonbank-Reported
3.21
CLAIMS ON FOREIGN COUNTRIES
Data
A51
Held by U.S. and Foreign Offices of U.S. Banks'
Billions of dollars, end of period
iyys
2002
2001
2000
Area or country
tyyy
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
1,051.6
945.5
954.4
1,027.3
1,141.1
1,137.0
1,282.1
912.9 r
799.5
867. l r
851.2
217.7
10.7
18.4
30.9
11.5
7.8
2.3
8.5
85.4
16.8
25.4
243.4
14.3
2y.o
38.7
18.1
12.3
3.0
10.3
79.3
16.3
22.1
280.3
13.0
29.0
37.6
18.6
17.5
4.3
10.9
112.8
18.5
18.1
300.7
14.2
29.6
45.1
21.3
18.4
3.6
13.2
115.6
16.7
23.0
334.6
15.2
30.0
45.0
20.3
22.1
4.7
13.7
140.2
15.4
28.0
336.3
13.0
35.8
51.4
23.6
18.6
4.7
13.3
126.2
21.3
28.3
290.7
14.3
34.4
40.9
22.6
20.7
5.1
12.8
92.7
20.3
26.8
404.4
19.1
39.1
42.9
20.9
19.3
5.3
12.4
193.1
19.1
33.1
324.1'
16.4
34.1'
49.2
19.0
23.7'
5.5
13.5
110.4'
16.9
35.3
346.6'
17.0
43.5'
52.0
20.3
20.9
6.2
14.0
117.8
18.3
36.7
316.3
18.1
34.5
48.9
15.9
22.7
5.9
12.7
101.9
18.7
36.9
13 Other industrialized countries
14
Austria
15
Denmark
16
Finland
17
Greece
18
Norway
19
Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia
69.0
1.4
2.2
1.4
5.9
3.2
1.4
13.7
4.8
10.4
4.4
20.3
68.4
3.5
2.6
.9
6.0
3.3
1.0
12.1
4.8
6.8
3.8
23.5
73.7
3.5
1.8
2.8
6.4
8.5
1.5
10.5
5.6
8.3
4.2
20.5
74.5
4.1
1.9
1.5
8.3
8.3
2.0
10.3
5.9
6.5
3.6
22.1
75.2
3.8
3.1
1.4
4.1
10.2
1.9
12.4
5.0
7.1
4.1
21.9
70.0
3.6
2.7
1.2
3.6
7.9
1.4
12.4
4.5
6.9
3.8
22.1
70.6
4.4
2.7
1.3
3.6
6.2
1.4
13.7
4.1
7.2
4.4
21.6
70.4'
4.8
2.6
1.1
3.2
8.1
1.6
12.1
3.9
8.3
4.1
20.6
69.9
5.1
3.5
2.1
3.3
9.0
1.8
12.1
5.3
8.4
3.3
15.9
78.4
5.7
2.9
1.5
3.7
10.6
1.8
13.3
4.3
9.0
3.5
22.2
80.7
6.5
2.8
1.6
4.1
12.7
1.4
15.2
4.0
7.6
2.5
22.3
25 OPEC 2
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
27.1
1.3
3.2
4.7
17.0
1.0
31.4
.8
2.8
4.2
23.1
.5
31.4
.6
2.9
4.4
22.4
1.2
28.9
.6
2.5
4.6
20.3
.8
27.9
.6
2.7
4.4
19.7
.5
27.1
.6
2.6
4.2
19.3
.4
27.4
.6
2.6
4.0
19.9
.4
27.3
.6
2.4
3.7
20.3
.3
27.5
.6
2.4
3.6
20.6
.3
26.7
.6
2.2
3.3
20.2
.4
26.4
.5
2.4
3.0
20.1
.4
1 Total
2 G-10 countries and Switzerland
Belgium and Luxembourg
3
4
France
5
Germany
Italy
6
7
Netherlands
8
Sweden
Switzerland
9
10
United Kingdom
11
Canada
12
Japan
143.4
149.4
149.5
145.5
150.1
157.6
201.6
203.3
196.0'
195.1'
188.3
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other
23.1
24.7
8.3
3.2
18.9
2.2
5.4
23.2
27.7
7.4
2.5
18.7
1.7
5.9
21.4
28.5
7.3
2.4
17.5
2.1
6.2
21.4
28.8
7.6
2.4
15.7
2.0
6.3
20.9
29.4
7.3
2.4
16.7
2.0
8.6
19.8
30.9
7.0
2.4
16.3
2.0
8.3
19.2
30.9
6.4
2.5
60.0
1.9
8.1
19.2
28.0
7.0
2.5
68.2
1.8
8.9
12.8
26.6
7.1
2.4
67.1
1.5
7.9
12.3
24.8
7.1
2.4
63.5
1.5
7.4
9.0
21.9
6.8
2.2
57.9
1.4
7.2
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
3.0
13.3
5.5
1.1
13.7
5.6
5.1
4.7
2.9
3.6
12.0
7.7
1.8
15.2
6.1
6.2
4.1
2.9
3.4
12.8
5.8
1.1
21.4
6.9
4.7
3.9
1.7
2.9
10.8
9.1
2.7
15.5
7.1
5.1
4.0
1.9
3.2
11.2
6.5
2.2
19.9
6.5
5.2
4.2
1.7
6.7
10.7
11.8
2.0
19.3
6.7
5.4
4.2
1.8
5.9
10.8
14.1
3.2
19.3
6.1
5.2
3.9
1.6
5.0
12.2
6.9
3.7
18.5
6.7
5.6
5.1
1.9
7.0
12.6
6.3
2.4
22.5'
6.4
5.4
4.0
1.9
8.6
15.1'
5.9
2.4
24.6'
6.3
5.3
3.5
2.0
9.3
17.3
5.6
3.9
25.4
6.6
5.3
4.5
2.0
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 3
1.3
.5
.0
1.0
1.4
.4
.0
1.0
1.1
.4
.0
.8
1.1
.3
.0
.7
1.2
.3
.0
.7
1.2
.3
.0
.7
1.4
.3
.0
.8
1.2
.1
.0
.7
1.3
.1
.0
.7
1.5
.1
.0
.8
1.3
.1
.0
.7
5.5
2.2
3.3
5.2
1.6
3.6
9.0
1.4
7.6
10.1
1.0
9.1
9.5
1.5
8.0
9.5
1.5
8.0
10.2
1.6
8.5
10.1
1.6
8.5
10.6
2.8
7.9
11.9
2.8
9.0
12.8
2.6
10.2
93.9
35.4
4.6
12.8
2.6
3.9
59.9
13.7
8.0
1.3
1.7
3.9
59.4
9.3
6.3
5.9
1.9
2.5
76.3
13.5
9.0
14.6
1.9
3.2
71.4
7.0
7.9
13.6
2.9
3.8
58.1
.0
5.7
11.9
1.7
3.4
73.1
1.1
7.6
21.8
5.8
3.5
72.0
7.5
7.6
16.4
2.8
3.2
56.6
7.5
8.1
5.0
3.3
3.3
90.6
10.9
12.7
27.8
2.8
3.2
93.3
5.5
11.8
40.8
2.2
3.0
23.3
11.1
.2
495.1
2L0
10.1
.1
387.9
20^6
12.6
.1
351.1
187
15.2
.2
391.2
2L5
14.6
.1
472.4
223
12.9
.1
478.6
17.9
15.2
.0
608.7
18.9
15.5
.1
125.4
15.7
13.5
.0
114.8
16.5
16.6
.0
117.8
18.7
11.2
.0
133.4
31 Non-OPEC developing countries
52 Eastern Europe
53
Russia 4
54
Other
55 Offshore banking centers
56
Bahamas
57
Bermuda
58
Cayman Islands and other British West Indies
59
Netherlands Antilles
60
Panama 5
61
Lebanon
62
Hong Kong, China
63
Singapore
64
Other
65 Miscellaneous and unallocated 7
NOTE. Publication of table 3.21, "Claims on Foreign Countries Held by U.S. and Foreign
Offices of U.S. Banks," will be discontinued in the Federal Reserve Bulletin after the March
2003 issue. Table 3.21 was originally published as a more timely report of a geographic
breakdown of assets of foreign branches than the report released by the Federal Financial
Institutions Examination Council (FFIEC), FFIEC009 Country Exposure Report, which once
lagged by five months. Currently, the Country Exposure Report from FFIEC is being
published with a quarter lag and has more complete data on country risk exposure of U.S.
banks. The data are available on FFIEC's web site: http://www.lifiec.gov/el6.htm, or can be
obtained from Publications Services, Mail Stop 127, Board of Governors of the Federal
Reserve System, Washington, DC 20551, or call 202-452-3244 or 45.
1. The banking offices covered by these data include U.S. offices and foreign branches of
U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered
include U.S. agencies and branches of foreign banks. Beginning March 1994, the data include
large foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository
institutions as well as some types of brokers and dealers. To eliminate duplication, the data
are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign
branch of the same banking institution.
These data are on a gross claims basis and do not necessarily reflect the ultimate country
risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks
are available in the quarterly Country Exposure Lending Survey published by the Federal
Financial Institutions Examination Council.
2. Organization of Petroleum Exporting Countries, shown individually; other members of
OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United
Arab Emirates), and Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia. Beginning March 1994 includes Namibia.
4. As of December 1992, excludes other republics of the former Soviet Union.
5. Includes Canal Zone.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
A52
International Statistics • March 2003
3.22
LIABILITIES TO UNAFFILIATED FOREIGNERS
the United States
Reported by Nonbanking Business Enterprises in
Millions of dollars, end of period
2001
Type of liability, and area or country
1998
1999
2002
2000
June
Sept.
Dec.
Mar.
June
Sept.?
1 Total
46,570
53,044
73,904
68,028
53,526
66,718
74,280
70,179
68,366
2 Payable in dollars
3 Payable in foreign currencies
36,668
9,902
37,605
15,415
48,931
24,973
41,734
26,294
35,347
18,179
42,957
23,761
47,050
27,230
48,103
22,076
44,969
23,397
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
19,255
10,371
8,884
27,980
13,883
14,097
47,419
25,246
22,173
41,908
17,655
24,253
27,502
11,415
16,087
41,034
18,763
22,271
45,833
20,367
25,466
42,365
21,892
20,473
40,879
18,775
22,104
7 Commercial liabilities
8
Trade payables
y
Advance receipts and other liabilities
27,315
10,978
16,337
25,064
12,857
12,207
26,485
14,293
12,192
26,120
13,127
12,993
26,024
11,740
14,284
25,684
11,820
13,864
28,447
14,872
13,575
27,814
13,959
13,855
27,487
13,712
13,775
10
li
Payable in dollars
Payable in foreign currencies
26,297
1,018
23,722
1,318
23,685
2,800
24,079
2,041
23,932
2,092
24,194
1,490
26,683
1,764
26,211
1,603
26,194
1,293
12
13
14
li
16
17
18
By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
12,589
79
1,097
2,063
1,406
155
5,980
23,241
31
1,659
1,974
1,996
147
16,521
34,172
147
1,480
2,168
2,016
104
26,362
32,785
98
1,222
2,463
1,763
93
25,363
22,083
76
1,538
1,994
1,998
92
14,819
31,806
154
2,841
2,344
1,954
94
22,852
38,942
119
3,531
2,982
1,951
84
28,180
34,682
120
4,071
2,622
1,939
61
23,859
34,511
232
3,517
2,865
1,918
61
23,125
19
Canada
693
284
411
628
436
955
942
946
457
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,495
7
101
152
957
59
2
892
1
5
126
492
25
0
4,125
6
1,739
148
406
26
2
2,100
40
461
21
1,508
20
1
414
5
47
22
243
24
3
2,858
157
960
35
1,627
36
2
1,547
5
836
35
612
27
1
1,832
5
626
38
1,000
25
5
1,088
0
588
65
377
26
1
27
28
29
Asia
Japan
Middle Eastern oil-exporting countries'
3,785
3,612
0
3,437
3,142
4
7,965
6,216
11
5,639
3,297
8
3,869
3,442
9
5,042
3,269
10
4,010
3,299
15
4,491
2,387
14
4,442
2,447
16
30
31
Africa
Oil-exporting countries 2
28
0
28
0
52
0
61
0
59
5
53
5
122
91
120
91
128
91
665
98
694
695
672
320
270
294
253
10,030
278
920
1,392
429
499
3,697
9,262
140
672
1,131
507
626
3,071
9,629
293
979
1,047
300
502
2,847
8,723
297
665
1,017
343
697
2,706
8,855
160
892
966
343
683
2,296
9,230
99
735
908
1,163
790
2,280
8,372
105
701
584
463
637
2,747
8,468
94
827
570
765
749
2,551
8,704
134
709
856
1,182
592
2,288
32
33
34
35
36
37
38
39
All other
3
Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
1,390
1,775
1,933
1,957
1,569
1,633
1,798
2,027
1,672
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,618
14
198
152
10
347
202
2,310
22
152
145
48
887
305
2,381
31
281
114
76
841
284
2,293
31
367
279
21
762
218
2,879
44
570
312
28
884
242
2,729
52
591
290
45
901
166
3,454
23
433
277
67
1,457
281
2,746
12
422
320
46
958
204
2,850
14
468
290
47
997
327
48
49
50
Asia
Japan
Middle Eastern oil-exporting countries'
12,342
3,827
2,852
9,886
2,609
2,551
10,983
2,757
2,832
11,384
2,377
3,087
11,114
2,421
3,053
10,532
2,592
2,642
12,969
4,281
3,142
12,693
4,143
3,259
12,313
4,041
3,669
51
52
Africa
Oil-exporting countries 2
794
393
950
499
948
483
1,115
539
938
471
836
436
976
454
916
349
876
445
53
Other 3
1,141
881
614
648
669
724
878
964
1,072
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
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
the United States
A53
Reported by Nonbanking Business Enterprises in
Millions of dollars, end of period
2002
2001
Type of claim, and area or country
1998
1999
2000
June
Sept.
Dec.
Mar.
June
Sept. p
1 Total
77,462
76,669
90,157
97,470
94,076
113,155
115,743
116,137
112,114
? Payable in dollars
72,171
5,291
69,170
7,472
79,558
10,599
87,690
9,780
83,292
10,784
103,937
9,218
106,171
9,572
107,095
9,042
103,892
8,222
By type
4 Financial claims
5
Deposits
Payable in dollars
6
Payable in foreign currencies
7
Other financial claims
R
Payable in dollars
9
Payable in foreign currencies
10
46,260
30,199
28,549
1,650
16,061
14,049
2,012
40,231
18,566
16,373
2,193
21,665
18,593
3,072
53,031
23,374
21,015
2,359
29,657
25,142
4,515
61,891
25,381
23,174
2,207
36,510
32,038
4,472
60,015
22,391
19,888
2,503
37,624
32,076
5,548
81,287
29,801
27,850
1,951
51,486
46,621
4,865
85,381
41,813
40,002
1,811
43,568
39,553
4,015
87,324
42,136
40,323
1,813
45,188
41,875
3,313
84,033
38,074
36,382
1,692
45,959
42,734
3,225
11 Commercial claims
Trade receivables
17
Advance payments and other claims
13
31,202
27,202
4,000
36,438
32,629
3,809
37,126
33,104
4,022
35,579
30,631
4,948
34,061
29,328
4,733
31,868
27,586
4,282
30,362
25,597
4,765
28,813
24,252
4,561
28,081
23,506
4,575
14
15
Payable in dollars
Payable in foreign currencies
29,573
1,629
34,204
2,207
33,401
3,725
32,478
3,101
31,328
2,733
29,466
2,402
26,616
3,746
24,897
3,916
24,776
3,305
16
17
IS
19
?0
?1
22
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
12,294
661
864
304
875
414
7,766
13,023
529
967
504
1,229
643
7,561
23,136
296
1,206
848
1,396
699
15,900
23,975
262
1,376
1,163
1,072
653
15,913
23,069
372
1,682
1,112
954
665
15,670
26,118
625
1,450
1,068
2,138
589
16,510
35,933
751
3,489
4,114
3,253
308
17,910
36,863
797
3,921
3,972
3,995
1,010
16,037
31,967
656
3,854
4,292
4,024
1,135
11,310
2,503
2,553
4,576
4,787
4,254
6,193
5,471
5,537
5,485
41,201
976
918
2,127
32,965
3,075
83
35,001
1,197
611
1,892
27,350
2,777
79
37,511
1,332
704
2,036
29,591
2,823
60
38,822
715
1,157
2,226
30,859
2,871
71
3 Payable in foreign currencies
23
Canada
27,714
403
39
835
24,388
1,245
55
18,206
1,593
11
1,476
12,099
1,798
48
19,317
1,353
19
1,827
12,596
2,448
87
24,403
818
426
1,877
17,505
2,633
66
26,099
649
80
2,065
19,234
2,910
80
3,027
1,194
9
5,457
3,262
23
4,697
1,631
80
6,829
1,698
76
5,274
1,761
100
6,430
1,604
135
6,489
2,009
79
5,826
1,093
78
6,121
1,074
88
Africa
Oil-exporting countries 2
159
16
286
15
411
57
476
35
456
83
414
49
390
51
431
64
379
29
All other 3
563
706
894
1,421
891
931
2,097
1,156
1,259
13,246
238
2,171
1,822
467
483
4,769
16,389
316
2,236
1,960
1,429
610
5,827
15,938
452
3,095
1,982
1,729
763
4,502
14,469
403
3,190
1,993
863
473
. 3,724
14,381
354
3,062
1,977
844
514
3,571
14,036
268
2,922
1,662
529
611
3,839
12,708
272
2,883
1,198
415
436
3,579
11,861
207
2,828
1,163
379
472
3,387
11,971
253
2,972
1,158
409
403
3,206
74
?5
?6
?7
?8
?9
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
31
37
33
Asia
Japan
Middle Eastern oil-exporting countries'
34
35
36
37
38
39
40
41
4?
43
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
2,617
2,757
3,502
3,470
3,116
2,855
2,760
2,752
2,619
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
6,296
24
536
1,024
104
1,545
401
5,959
20
390
905
181
1,678
439
5,851
37
376
957
137
1,507
328
6,033
39
650
1,363
135
1,375
321
5,590
35
526
1,183
124
1,442
301
4,874
42
369
958
95
1,401
288
4,891
42
422
837
73
1,225
312
4,520
28
214
829
26
1,283
316
4,351
32
270
866
12
1,180
350
5?
53
54
Asia
Japan
Middle Eastern oil-exporting countries'
7,192
1,681
1,135
9,165
2,074
1,625
9,630
2,796
1,024
9,499
3,148
1,040
8,704
2,438
919
7,855
2,007
851
7,513
1,975
657
7,309
2,064
889
6,769
2,083
819
55
56
Africa
Oil-exporting countries 2
711
165
631
171
672
180
601
102
838
170
645
88
630
109
604
93
637
107
57
Other 3
1,140
1,537
1,572
1,507
1,432
1,603
1,860
1,767
1,734
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.
A54
3.24
International Statistics • March 2003
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
2002
Transaction, and area or country
2000
2002
2001
Jan.Nov.
May
June'
July'
Aug.'
Sept.'
Oct.'
NOV.P
257,265
252,651
206,729
213,195
297,181
293,565
264,362
257,882
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
3,605,196
3,430,306
3,051,332
2,934,942
2,942,155
2,895,040
274,543
274,890'
3 Net purchases, or sales ( - )
174,890
116,390
47,115
4 Foreign countries
174,903
116,187
164,656
5,727
31,752
4,915
11,960
58,736
n.a.
5,956
-17,812
9,189
12,494
2,070
415
5
248,561
244,551
318,210
308,557
-347R
4,010
9,653
4,614
-6,466
3,616
6,480
47,185
-325R
3,994
9,580
4,603
-6,451
3,610
6,473
88,099
5,914
8,415
10,919
3,456
38,493
-698
10,984
-5,154
1,789
20,726
6,788
-366
109
28,260
1,452
-640
3,752
1,769
14,551
-246
6,707
-13,129
-1,366
23,561
13,468
-60
3,212
-2,549'
-1,270
-48
41
89
-1,830'
-3
546
-703
-30
2,253
3,116
9
149
-656
-1,249
-131
36
-710
1,115
-2
373
-673
198
3,986
3,193
-1
767
3,204
38
-595
1,440
-341
1,828
73
1,939
-1,319
43
4,755
3,660
3
955
3,830
942
-328
900
-306
2,801
-47
1,336
-3,849
-58
3,231
2,249
-34
147
-5,154
-936
-1,175
4
-949
-1,232
-21
-772
-2,903
46
2,012
238
36
284
2,187
982
276
760
-176
1,403
94
342
-2,874
-90
3,985
-7
-22
82
4,407
-323
31
629
1,581
2,075
10
47
2,692
-232
-775
-961
-16
350
-11
203
-69
16
73
11
-15
6
7
1,208,386
871,416
1,942,690
1,556,745
2,346,801
2,002,438
219,525'
174,534'
204,478
171,609
221,130
205,389
220,918
189,016
208,602
183,671
217,402
185,366
268,479
227,942
22 Net purchases, or sales ( - )
336,970
385,945
344,363
44,991
32,869
15,741
31,902
24,931
32,036
40,537
23 Foreign countries
337,074
385,380
344,270
45,121
32,694
16,072
31,871
25,022
31,632
40,497
24
25
26
27
28
29
30
31
32
33
34
35
36
37
180,917
2,216
4,067
1,130
3,973
141,223
n.a.
13,287
59,444
2,076
78,794
39,356
938
1,618
195,412
5,028
12,362
1,538
5,721
152,772
2,000
4,595
77,019
2,338
106,400
33,687
760
-1,144
152,588
4,167
3,559
-410
8,544
98,683
10,214
1,133
75,454
2,379
108,495
43,588
832
3,389
19,149
350
132
—49
1,412
15,309
92
-193
15,618
-172
10,608
5,046
13
98
19,905
458
691
-518
1,109
12,902
-14
925
2,936
24
8,521
3,290
330
53
3,253
183
693
393
1,406
-233
-20
-610
1,840
125
10,336
4,754
112
1,016
10,891
483
366
55
1,825
3,690
1,203
166
9,706
578
9,026
1,975
77
1,427
11,758
252
-390
-35
356
7,374
1,342
-383
3,464
40
9,602
6,135
171
370
16,532
1,089
-71
149
355
9,852
2,239
540
4,339
196
10.126
5,505
-18
-83
16,714
372
211
-59
1,070
8,453
4,917
-757
5,471
372
18,374
10,456
56
267
566
93
175
-331
31
-91
404
40
5 Europe
6
France
7
Germany
Netherlands
8
y
Switzerland
10
United Kingdom
n Channel Islands and Isle of Man 1
12 Canada
13 Latin America and Caribbean
14 Middle East 2
15 Other Asia
lb
Japan
1/
18 Other countries
19 N o n m o n e t a r y in tern atio n a l a n d
regional organizations
-22
BONDS3
20 Foreign purchases
21 Foreign sales
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Channel Islands and Isle of Man 1
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries
38 N o n m o n e t a r y in tern ation a l a n d
regional organizations
-70
-130
Foreign securities
39 Stocks, net purchases, or sales ( - )
40
Foreign purchases
41
Foreign sales
42 Bonds, net purchases, or sales ( - )
Foreign purchases
43
44
Foreign sales
-13,088
1,802,185
1,815,273
^1,054
958,932
962,986
-50,113
1,397,664
1,447,777
30,502'
1,160,102'
1,129,600'
426
1,195,850
1,195,424
33,563
1,265,888
1,232,325
-7,855'
1 13,332'
121,187'
7,325'
125,354'
118,029'
-5,019
111,483
116,502
5,574
118,965
113,391
13,299
139,307
126,008
7,722
120,870
113,148
3,061
92,731
89,670
-1,749
112,167
113,916
790
87,080
86,290
1,064
126,078
125,014
-6,196
120,594
126,790
6,920
123,139
116,219
-1,004
101,813
102,817
2,269
144,719
142,450
45 Net purchases, or sales ( - ) , of stocks a n d b o n d s
-17,142
-I9,6IR
33,989
-530R
555
21,021
1,312
1,854
724
1,265
46 Foreign countries
-17,278
-19,023R
34,037
-579R
589
21,111
1,287
1,876
671
1,277
-25,386
-3,888
-15,688
24,488
20,970
943
2,253
-12,108'
2,943
4,315'
-11,869
-20,116
-557
-1,747
23,966
3,986
3,519
2,571
-7,080
-423
420
1,288'
57'
-1,815'
381
-518
-118
-372
^,666
2,239
2,621
342
-871
8
45
11,479
1,917
1,897
4,990
3,453
205
623
568
4
-755
1,028
379
393
49
1,420
-585
-521
1,018
-862
-39
583
679
-1,326
-32
1,694
13
104
-448
6,119
-204
518
-5,256
-6,617
100
0
-34
-90
25
-22
53
-12
47
48
49
50
51
52
53
Europe
Canada
Latin America and Caribbean
Asia
Japan
Africa
Other countries
54 N o n m o n e t a r y international a n d
regional organizations
150
-587
1. Before January 2001, data included in United Kingdom.
2. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar,
Saudi Arabia, and United Arab Emirates (Trucial States).
-51
49
3. 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
3.25
MARKETABLE U.S. TREASURY BONDS AND NOTES
A55
Foreign Transactions 1
Millions of dollars; net purchases, or sales (-) during period
Area or country
Jan.Nov.
July'
Aug/
Sept/
18,097
-3,226
31,141
6,652
18,987
18,331
-3,639
31,106
5,904
19,401
-1,886
252
-3,725
-84
171
-169
246
6,515
177
-2,775
-1,327
-6,859
1,349
-2,599
-14
-700
471
-705
-4,878
444
-227
-1,558
11,087
-138
-1,096
-265
1,436
234
1,150
12,703
-43
-2,894
2,236
640
-210
^169
61
-2,856
-203
-1,727
4,872
-116
1,288
-2,449
5,841
511
1,595
-139
538
1,652
2,137
-1,490
-299
1,336
3,717
6,469
160
3,385
2,924
6,020
2,499
299
516
4,745
-58
3,879
924
13,230
7,691
112
963
-11,841
-15
-7,444
-4,382
16,024
6,676
495
100
7,753
-79
5,516
2,316
9,987
13,096
-93
136
7,219
5
4,485
2,729
54
-1,313
12
428
-1,738
-1
339
-2,076
11,973
3,516
-17
-375
198
28
-234
-64
11
413
418
-A
35
-45
29
748
329
4
—414
314
-19
-3,639
635
—4,274
31,106
-3,511
34,617
5,904
-553
6,457
19,401
16,577
2,824
-412
-1
913
0
-160
1
May
1 Total estimated
-54,032
18,514
66,712
2 Foreign countries
-53,571
19,200
65,418
-50,704
73
-7,304
n.a.
2,140
1,082
-10,326
-33,669
n.a.
-2,700
-550
-20,604
-598
-1,668
462
-6,728
-1,190
1,412
-7,279
-179
^1,836
-1,634
-4J63
-6,274
1,932
-8,382
-1,408
-20,079
2,022
1,783
23,019
798
^t,448
-2,868
649
-166
-9,328
55
341
2,312
84
-229
454
-4,914
1,288
-11,581
5,379
1,639
10,580
-414
1,372
4,272
290
14,726
-10,744
36,332
16,114
-880
1,714
15,973
14
21,234
-5,275
53,251
28,396
751
3,074
1,933
6,000
-2,826
195
-38
706
—461
—483
76
-290
41
1,294
1,478
-3
-500
-240
-14
-53,571
-6,302
-47,269
19,200
3,474
15,726
65,418
8,578
56,840
-39
-69
30
8,210
2,161
6,049
18,331
-5,268
23,599
3,483
0
865
-268
-2
-26
-753
0
-148
0
-1,133
0
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Europe
Belgium 2
Germany
Luxembourg 2
Netherlands
Sweden
Switzerland
United Kingdom
Channel Islands and Isle of Man 3
Other Europe and former U.S.S.R
Canada
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other
22 Nonmonetary international and regional organizations
23
International
24
Latin American Caribbean regional
8,408
-39
8
7,939
6
-3,208
298
-867
85
-1,343
192
359
-1,396
793
-1,329
-21
MEMO
25 Foreign countries
26
Official institutions
27
Other foreign
Oil-exporting
28 Middle East 4
29 Africa 5
countries
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. Before January 2001, combined data reported for Belgium and Luxembourg.
3. Before January 2001, these data were included in the data reported for the United
Kingdom.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
A56
3.28
International Statistics • March 2003
FOREIGN EXCHANGE RATES AND INDEXES OF THE FOREIGN EXCHANGE VALUE OF THE U.S. DOLLAR 1
Currency units per U.S. dollar except as noted
2002
Aug.
Sept.
Oct.
2003
Nov.
Dec.
Jan.
Exchange rates
COUNTRY/CURRENCY UNIT
1
2
.3
4
5
6
7
8
9
10
11
12
Australia/dollar 2
Brazil/real
Canada/dollar
China, P.R./yuan
Denmark/krone
European Monetary Union/euro 3
Greece/drachma
Hong Kong/dollar
India/rupee
Japan/yen
Malaysia/ringgit
Mexico/peso
13
14
15
16
17
18
19
20
21
21
23
24
New Zealand/dollar 2
Norway/krone
Singapore/dollar
South Africa/rand
South Korea/won
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound 2
Venezuela/bolivar
58.15
1.8301
1.4855
8.2784
8.0953
0.9232
365.92
7.7924
45.00
107.80
3.8000
9.459
51.69
2.3527
1.5487
8.2770
8.3323
0.8952
n.a.
7.7997
47.22
121.57
3.8000
9.337
54.37
2.9213
1.5704
8.2770
7.8862
0.9454
n.a.
7.7997
48.63
125.22
3.8000
9.663
54.13
3.1082
1.5694
8.2767
7.5948
0.9781
n.a.
7.8008
48.62
118.99
3.8000
9.839
54.65
3.3548
1.5761
8.2760
7.5752
0.9806
n.a.
7.7999
48.46
121.08
3.8000
10.071
55.02
3.7966
1.5780
8.2772
7.5732
0.9812
n.a.
7.7995
48.39
123.91
3.8000
10.094
56.13
3.5924
1.5715
8.2772
7.4201
1.0013
n.a.
7.7994
48.29
121.61
3.8000
10.195
56.24
3.6268
1.5592
8.2777
7.2874
1.0194
n.a.
7.7988
48.15
121.89
3.8000
10.225
58.29
3.4375
1.5414
8.2775
6.9980
1.0622
n.a.
7.7994
47.96
118.81
3.8000
10.622
45.68
8.8131
1.7250
6.9468
1,130.90
76.964
9.1735
1.6904
31.260
40.210
151.56
680.52
42.02
8.9964
1.7930
8.6093
1,292.01
89.602
10.3425
1.6891
33.824
44.532
143.96
724.10
46.45
7.9839
1.7908
10.5176
1,250.31
95.773
9.7233
1.5567
34.536
43.019
150.25
1,161.19
46.35
7.6042
1.7553
10.5878
1,197.51
96.281
9.4610
1.4972
33.884
42.193
153.68
1,379.73
47.02
7.5018
1.7682
10.5967
1,211.61
96.207
9.3400
1.4931
34.573
42.893
155.63
1,458.39
48.18
7.4873
1.7843
10.3058
1,240.19
96.402
9.2846
1.4932
34.947
43.641
155.75
1,440.50
49.73
7.3157
1.7653
9.6509
1,210.20
96.426
9.0652
1.4658
34.673
43.353
157.11
1,358.61
51.08
7.1557
1.7532
8.9479
1,206.61
96.705
8.9303
1.4388
34.799
43.318
158.63
1,328.29
53.98
6.9138
1.7363
8.6949
1,176.45
96.813
8.6368
1.3765
34.571
42.773
161.75
1,714.45
Indexes 4
NOMINAL
25 Broad (January 1997=100)'
26 Major currencies (March 1973=100) 6
27 Other important trading partners (January
1997—100)
119.68'
98.31'
126.08'
104.28'
127.19'
102.85'
125.65'
100.15'
126.65'
100.43'
127.63'
100.93'
126.33'
99.53'
125.70'
98.62'
124.21
96.03
130.34'
136.36'
141.42'
142.07'
144. Iff
145.69'
144.85'
144.87'
145.72
104.32'
103.17'
110.28'
110.48'
110.66'
109.11'
109.58'
106.31'
110.33'
106.65'
111.03'
107.18'
109.55'
105.66'
108.75'
104.50'
107.65
102.31
114.54'
119.19'
122.01'
123.12'
124.49'
125.49'
123.96'
123.59'
123.99
REAL
28 Broad (March 1973-100) 5
29 Major currencies (March 1973=100) 6
30 Other important trading partners (March
1973-11X1)
1. Averages of certified noon buying rates in New York for cable transfers. Data in this
table also appear in the B o a r d ' 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. T h e 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
1,936.27
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 March 2003 Bulletin, revised index values resulting f r o m the periodic
revision of data that underlie the calculated trade weights are reported. For more information
on the indexes of the 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.
A57
Guide to Special Tables and Statistical Releases
SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference
Title and Date
Assets and liabilities of commercial
December 31, 2001
March 3 1 , 2 0 0 2
June 30, 2002
September 30, 2002
Terms of lending at commercial
February 2002
May 2002
August 2002
November 2002
Residential lending reported under the Home Mortgage
1988-2000
1989-2001
Community
2000
2001
development
2002
2002
2002
2003
A64
A58
A58
A58
May
August
November
February
2002
2002
2002
2003
A66
A60
A60
A60
May
August
November
February
2002
2002
2002
2003
A72
A66
A66
A66
August 2001
October 2001
January 2002
A76
A64
A64
September 2001
September 2002
A64
A58
for private mortgage
September 2001
September 2002
A73
A67
September 2001
September 2002
A76
A70
September 2001
September 2002
A79
A73
Issue
December 2002
Page
A66
banks
services
Disclosure
Act
insurance
and farms
lending reported under the Community
Reinvestment
Act
STATISTICAL RELEASES—A List of Statistical Releases Published by the Federal
is Printed Semiannually in the Bulletin
Schedule of anticipated release dates for periodic releases
May
August
November
February
banks
Pro forma financial statements for Federal Reserve priced
March 31, 2001
June 30, 2001
September 3 0 , 2 0 0 1
Small loans to businesses
1996-2000
1996-2001
Page
banks
Assets and liabilities of U.S. branches and agencies of foreign
December 31, 2001
March 31, 2002
June 30, 2002
September 30, 2002
Disposition of applications
1997-2000
1998-2001
Issue
Reserve
A58
Federal Reserve Bulletin • March 2003
Index to Statistical Tables
References are to pages A3-A56, 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, 30, 31
Federal Reserve Banks, 10
Foreign-related institutions, 20
Automobiles
Consumer credit, 34
Production, 42, 43
BANKERS acceptances, 5, 10
Bankers balances, 15-21 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 29
Rates, 23
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 40, 41
Capital accounts
Commercial banks, 15-21
Federal Reserve Banks, 10
Certificates of 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, 34
Real estate mortgages held, by holder and property, 33
Time and savings deposits, 4
Commercial paper, 22, 23, 30
Condition statements (See Assets and liabilities)
Consumer credit, 34
Corporations
Security issues, 29, 55
Credit unions, 34
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)
EURO, 56
FARM mortgage loans, 33
Federal agency obligations, 5, 9-11, 26, 27
Federal credit agencies, 28
Federal finance
Debt subject to statutory limitation, and types and ownership of
gross debt, 25
Federal Financing Bank, 28
Federal funds, 23
Federal Home Loan Banks, 28
Federal Home Loan Mortgage Corporation, 28, 32, 33
Federal Housing Administration, 28, 32, 33
Federal Land Banks, 33
Federal National Mortgage Association, 28, 32, 33
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 5, 10, 11, 25
Federal Reserve credit, 5, 6, 10, 12
Federal Reserve notes, 10
Federally sponsored credit agencies, 28
Finance companies
Assets and liabilities, 30
Business credit, 31
Loans, 34
Paper, 22, 23
Float, 5
Flow of funds, 35-39
Foreign currency operations, 10
Foreign deposits in U.S. banks, 5
Foreign exchange rates, 56
Foreign-related institutions, 20
Foreigners
Claims on, 46, 49-51, 53
Liabilities to, 45-48, 52, 54, 55
GOLD
Certificate account, 10
Stock, 5, 45
Government National Mortgage Association, 28, 32, 33
INDUSTRIAL production, 42, 43
Insurance companies, 25, 33
Interest rates
Bonds, 23
Consumer credit, 34
Federal Reserve Banks, 7
Money and capital markets, 23
Mortgages, 32
Prime rate, 22
International capital transactions of United States, 44—55
International organizations, 46, 47, 49, 52, 53
Investment companies, issues and assets, 30
Investments (See also specific types)
Commercial banks, 4, 15-21
Federal Reserve Banks, 10, 11
Financial institutions, 33
LIFE insurance companies (See Insurance companies)
Loans (See also specific types)
Commercial banks, 15-21
Federal Reserve Banks, 5-7, 10, 11
Financial institutions, 33
Insured or guaranteed by United States, 32, 33
MANUFACTURING
Capacity utilization, 40, 41
Production, 42, 43
Margin requirements, 24
Member banks, reserve requirements, 8
Mining production, 43
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, 30
Mutual savings banks (See Thrift institutions)
OPEN market transactions, 9
A59
PRICES
Stock market, 24
Prime rate, 22
Production, 42, 43
REAL estate loans
Banks, 15-21, 33
Terms, yields, and activity, 32
Type and holder and property mortgaged, 33
Reserve requirements, 8
Reserves
Commercial banks, 15-21
Depository institutions, 4 - 6
Federal Reserve Banks, 10
U.S. reserve assets, 45
Residential mortgage loans, 32, 33
Retail credit and retail sales, 34
SAVING
Flow of funds, 33, 34, 35-39
Savings deposits (See Time and savings deposits)
Savings institutions, 33, 34, 35-39
Securities (See also specific types)
Federal and federally sponsored credit agencies, 28
Foreign transactions, 54
New issues, 29
Prices, 24
Special drawing rights, 5, 10, 44, 45
State and local governments
Holdings of U.S. government securities, 25
New security issues, 29
Rates on securities, 23
Stock market, selected statistics, 24
Stocks (See also Securities)
New issues, 29
Prices, 24
Student Loan Marketing Association, 28
THRIFT institutions, 4 (See also Credit unions and Savings
institutions)
Time and savings deposits, 4, 13, 15-21
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 10
U.S. GOVERNMENT balances
Commercial bank holdings, 15-21
Treasury deposits at Reserve Banks, 5, 10
U.S. government securities
Bank holdings, 15-21, 25
Dealer transactions, positions, and financing, 27
Federal Reserve Bank holdings, 5, 10, 11, 25
Foreign and international holdings and transactions, 10, 25, 55
Open market transactions, 9
Outstanding, by type and holder, 25, 26
Rates, 23
U.S. international transactions, 44-55
Utilities, production, 43
VETERANS Affairs, Department of, 32, 33
WEEKLY reporting banks, 17, 18
YIELDS (See Interest rates)
A60
Federal Reserve Bulletin • March 2003
Federal Reserve Board of Governors
and Official Staff
A L A N GREENSPAN, Chairman
ROGER W . FERGUSON, JR., Vice Chairman
EDWARD M . GRAMLICH
SUSAN SCHMIDT BIES
OFFICE
DIVISION
OF BOARD
MEMBERS
DONALD J. WINN, Assistant to the Board and Director
LYNN S. Fox, Assistant to the Board
MICHELLE A. SMITH, Assistant
to the
Board
WINTHROP P. HAMBLEY, Deputy Congressional Liaison
JOHN LOPEZ, Special Assistant to the Board
ROSANNA PIANALTO-CAMERON, Special Assistant to the Board
DAVID W. SKIDMORE, Special Assistant to the Board
LEGAL
DIVISION
J. VIRGIL MATTINGLY, JR., General Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
STEPHANIE MARTIN, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel
ANN E. MISBACK, Assistant General Counsel
STEPHEN L. SICILIANO, Assistant General Counsel
KATHERINE H. WHEATLEY, Assistant General Counsel
CARY K. WILLIAMS, Assistant General Counsel
OFFICE
OF THE
JENNIFER J . JOHNSON,
SECRETARY
Secretary
ROBERT DEV. FRIERSON, Deputy
MARGARET M . SHANKS, Assistant
Secretary
Secretary
OF INTERNATIONAL
K A R E N H . JOHNSON,
FINANCE
Director
DAVID H . HOWARD, Deputy
Director
THOMAS A. CONNORS, Associate
Director
RICHARD T. FREEMAN, Deputy Associate Director
STEVEN B. KAMIN, Deputy Associate Director
WILLIAM L. HELKIE, Senior
Adviser
DALE W. HENDERSON, Senior Adviser
JON W. FAUST, Assistant Director
JOSEPH E. GAGNON, Assistant
MICHAEL P. LEAHY, Assistant
D. NATHAN SHEETS, Assistant
RALPH W. TRYON, Assistant
W I L L E N E A . JOHNSON,
DIVISION
Director
Director
Director
Director
Adviser
OF RESEARCH
DAVID J . STOCKTON,
AND
STATISTICS
Director
EDWARD C. ETTIN, Deputy
Director
DAVID W. WILCOX, Deputy
Director
MYRON L. KWAST, Associate
Director
STEPHEN D . OLINER, Associate
Director
PATRICK M . PARKINSON, Associate
Director
LAWRENCE SLIFMAN, Associate
Director
CHARLES S. STRUCKMEYER, Associate
Director
JOYCE K. ZICKLER, Deputy Associate
DIVISION OF BANKING
AND
REGULATION
RICHARD SPILLENKOTHEN,
SUPERVISION
Director
STEPHEN C. SCHEMERING, Deputy
Director
HERBERT A. BIERN, Senior Associate Director
ROGER T. COLE, Senior Associate Director
WILLIAM A. RYBACK, Senior Associate Director
GERALD A . EDWARDS, JR., Associate
Director
STEPHEN M . HOFFMAN, JR., Associate
Director
JAMES V. HOUPT, Associate
Director
JACK P. JENNINGS, Associate
Director
MICHAEL G. MARTINSON, Associate
Director
MOLLY S. WASSOM, Associate
Director
HOWARD A. AMER, Deputy Associate Director
NORAH M. BARGER, Deputy Associate Director
BETSY CROSS, Deputy Associate Director
DEBORAH P. BAILEY, Assistant
Director
BARBARA J. BOUCHARD, Assistant
Director
ANGELA DESMOND, Assistant
Director
JAMES A. EMBERSIT, Assistant
Director
CHARLES H. HOLM, Assistant
Director
WILLIAM G. SPANIEL, Assistant
Director
DAVID M . WRIGHT, Assistant
Director
WILLIAM C. SCHNEIDER, JR., Project Director,
National Information Center
Director
J. NELLIE LIANG, Assistant
Director
S. WAYNE PASSMORE, Assistant
Director
DAVID L. REIFSCHNEIDER, Assistant
Director
JANICE SHACK-MARQUEZ, Assistant
Director
WILLIAM L. WASCHER III, Assistant
Director
MARY M. WEST, Assistant
Director
A L I C E PATRICIA W H I T E , Assistant
Director
GLENN B. CANNER, Senior Adviser
DAVID S. JONES, Senior Adviser
THOMAS D. SIMPSON, Senior
DIVISION
OF MONETARY
VINCENT R . R E I N H A R T ,
DAVID E. LINDSEY, Deputy
BRIAN F. MADIGAN, Deputy
Adviser
AFFAIRS
Director
Director
Director
WILLIAM C. WHITESELL, Deputy Associate
Director
JAMES A. CLOUSE, Assistant
Director
WILLIAM B. ENGLISH, Assistant
Director
RICHARD D. PORTER, Senior
Adviser
NORMAND R.V. BERNARD, Special Assistant to the Board
A61
M A R K W . OLSON
B E N S . BERNANKE
DONALD L . K O H N
DIVISION OF
CONSUMER
AND COMMUNITY
AFFAIRS
DIVISION OF RESERVE BANK
AND PAYMENT
SYSTEMS
DOLORES S . SMITH,
LOUISE L . ROSEMAN,
Director
GLENN E. LONEY, Deputy
Director
SANDRA F. BRAUNSTEIN, Senior Associate
MAUREEN P. ENGLISH, Associate
ADRIENNE D . HURT, Associate
Director
Director
Director
IRENE SHAWN M C N U L T Y , Associate
Director
JAMES A . MICHAELS, Assistant
Director
TONDA E. PRICE, Assistant
Director
OFFICE OF
STAFF DIRECTOR
FOR
MANAGEMENT
STEPHEN R . MALPHRUS, Staff
SHEILA CLARK, EEO Programs
MANAGEMENT
W I L L I A M R . JONES,
Director
Director
DIVISION
Director
STEPHEN J. CLARK, Associate
Director
DARRELL R . PAULEY, Associate
Director
DAVID L. WILLIAMS, Associate
Director
CHRISTINE M . FIELDS, Assistant
Director
BILLY J. SAULS, Assistant
Director
DONALD A. SPICER, Assistant
Director
DIVISION
OF INFORMATION
TECHNOLOGY
MARIANNE M . EMERSON, Deputy
Director
MAUREEN T. HANNAN, Associate
Director
TILLENA G. CLARK, Assistant
Director
GEARY L. CUNNINGHAM, Assistant
Director
WAYNE A. EDMONDSON, Assistant
Director
Po KYUNG KIM, Assistant
Director
SUSAN F. MARYCZ, Assistant
SHARON L. MOWRY, Assistant
RAYMOND ROMERO, Assistant
ROBERT F. TAYLOR, Assistant
Director
Director
Director
Director
OPERATIONS
Director
PAUL W. BETTGE, Associate
Director
JEFFREY C. MARQUARDT, Associate
Director
KENNETH D. BUCKLEY, Assistant
Director
JOSEPH H . HAYES, JR., Assistant
Director
EDGAR A. MARTINDALE III, Assistant
Director
MARSHA W. REIDHILL, Assistant
Director
JEFF J. STEHM, Assistant
Director
JACK K. WALTON II, Assistant
Director
OFFICE
OF THE INSPECTOR
GENERAL
BARRY R. SNYDER, Inspector General
DONALD L. ROBINSON, Deputy Inspector
General
A62
Federal Reserve Bulletin • March 2003
Federal Open Market Committee
and Advisory Councils
FEDERAL
OPEN
MARKET
COMMITTEE
MEMBERS
A L A N GREENSPAN,
Chairman
WILLIAM J. M C D O N O U G H , Vice
Chairman
SUSAN SCHMIDT BIES
EDWARD M . GRAMLICH
MICHAEL H . MOSKOW
B E N S. BERNANKE
JACK G U Y N N
M A R K W . OLSON
J . ALFRED BROADDUS, JR.
DONALD L . KOHN
ROBERT T. PARRY
ROGER W . FERGUSON, JR.
ALTERNATE
MEMBERS
THOMAS M . H E O N I G
SANDRA PIANALTO
CATHY E . M I N E H A N
WILLIAM POOLE
JAMIE B . STEWART, JR.
STAFF
VINCENT R . REINHART, Secretary
and
NORMAND R . V . BERNARD, Deputy
GARY P. GILLUM, Assistant
Economist
CHRISTINE M . CUMMING, Associate
Secretary
Secretary
M I C H E L L E A . SMITH, Assistant
DAVID H . HOWARD, Associate
Counsel
THOMAS C . BAXTER, JR., Deputy
Economist
MARVIN S . GOODFRIEND, Associate
Secretary
J. VIRGIL MATTINGLY, JR., General
Economist
ROBERT A . EISENBEIS, Associate
General
Economist
Economist
WILLIAM C . H U N T E R , Associate
Counsel
J O H N P. JUDD, Associate
Economist
Economist
KAREN H . JOHNSON,
Economist
DAVID E . LINDSEY, Associate
DAVID J. STOCKTON,
Economist
CHARLES S . STRUCKMEYER, Associate
THOMAS A . CONNORS, Associate
Economist
DAVID W . WILCOX, Associate
D I N O KOS, Manager,
FEDERAL
ADVISORY
System
Open
Market
Economist
Economist
Account
COUNCIL
L . PHILLIP HUMANN,
President
A L A N G . MCNALLY, Vice
President
DAVID A . SPINA, F i r s t D i s t r i c t
A L A N G . MCNALLY, S e v e n t h D i s t r i c t
DAVID A . COULTER, S e c o n d D i s t r i c t
DAVID W . KEMPER, E i g h t h D i s t r i c t
R U F U S A . FULTON, J R . , T h i r d D i s t r i c t
JERRY A . GRUNDHOFER, N i n t h D i s t r i c t
MARTIN G . M C G U I N N , F o u r t h D i s t r i c t
CAMDEN R . F I N E , T e n t h D i s t r i c t
FRED L . G R E E N I I I , F i f t h D i s t r i c t
GAYLE M . EARLS, E l e v e n t h D i s t r i c t
L . PHILLIP H U M A N N , S i x t h D i s t r i c t
MICHAEL E . O ' N E I L L , T w e l f t h D i s t r i c t
JAMES ANNABLE,
WILLIAM J. KORSVIK,
Co-Secretary
Co-Secretary
Economist
A63
CONSUMER
ADVISORY
COUNCIL
RONALD A. REITER, San Francisco, California, Chairman
AGNES BUNDY SCANLAN, Boston, Massachusetts, Vice Chairman
ANTHONY S. ABBATE, Saddlebrook, New Jersey
JANIE BARRERA, San Antonio, Texas
KENNETH R BORDELON, Baton Rouge, Louisiana
SUSAN BREDEHOFT, Cherry Hill, New Jersey
MANUEL CASANOVA, JR., Brownsville, Texas
CONSTANCE K. CHAMBERLIN, Richmond, Virginia
ROBIN COFFEY, Chicago, Illinois
DAN DIXON, Washington, District of Columbia
THOMAS FITZGIBBON, Chicago, Illinois
JAMES GARNER, Baltimore, Maryland
CHARLES GATSON, Kansas City, Missouri
LARRY HAWKINS, Houston, Texas
W. JAMES KING, Cincinnati, Ohio
EARL JAROLIMEK, Fargo, North Dakota
THRIFT INSTITUTIONS
ADVISORY
J. PATRICK LIDDY, Cincinnati, Ohio
RUHI MAKER, Rochester, New York
OSCAR MARQUIS, Park Ridge, Illinois
ELSIE MEEKS, Kyle, South Dakota
PATRICIA MCCOY, Cambridge, Massachusetts
MARK PINSKY, Philadelphia, Pennsylvania
ELIZABETH RENUART, Boston, Massachusetts
DEBRA S. REYES, Tampa, Florida
BENSON ROBERTS, Washington, District of Columbia
BENJAMIN ROBINSON III, Charlotte, North Carolina
DIANE THOMPSON, East St. Louis, Illinois
HUBERT VAN TOL, Sparta, Wisconsin
CLINT WALKER, Wilmington, Delaware
COUNCIL
KAREN L. MCCORMICK, Port Angeles, Washington, President
WILLIAM J. SMALL, Defiance, Ohio, Vice President
MICHAEL J. BROWN, SR., Ft. Pierce, Florida
JOHN B. DICUS, Topeka, Kansas
RICHARD J. DRISCOLL, Arlington, Texas
CURTIS L. HAGE, Sioux Falls, South Dakota
OLAN O. JONES, JR., Kingsport, Tennessee
D. TAD LOWREY, Brea, California
GEORGE W. NISE, Philadelphia, Pennsylvania
KEVIN E. PIETRINI, Virginia, Minnesota
ROBERT F. STOICO, Swansea, Massachusetts
DAVID L. VIGREN, Rochester, New York
A64
Federal Reserve Bulletin • March 2003
Federal Reserve Board Publications
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When Is Your Check Not a Check?
A65
STAFF STUDIES: Only Summaries Printed in the
BULLETIN
Studies and papers on economic and financial subjects that are of
general interest. Staff Studies 1-158, 161, 163, 165, 166, 168, and
169 are out of print, but photocopies of them are available. Staff
Studies 165-174 are available on line at
www.federalreserve.gov/
pubs/staffstudies.
Requests to obtain single copies of any paper or
to be added to the mailing list for the series may be sent to
Publications.
1 6 7 . A SUMMARY OF MERGER PERFORMANCE STUDIES IN B A N K ING, 1 9 8 0 - 9 3 , AND AN ASSESSMENT OF THE " O P E R A T I N G
PERFORMANCE" AND " E V E N T S T U D Y " METHODOLOGIES,
by Stephen A. Rhoades. July 1994. 37 pp.
1 7 0 . T H E COST OF IMPLEMENTING CONSUMER FINANCIAL R E G U LATIONS: A N ANALYSIS OF EXPERIENCE WITH THE T R U T H
IN SAVINGS ACT, by Gregory Elliehausen and Barbara R.
Lowrey. December 1997. 17 pp.
1 7 1 . T H E COST OF B A N K REGULATION: A REVIEW OF THE E V I -
DENCE, by Gregory Elliehausen. April 1998. 35 pp.
1 7 2 . USING SUBORDINATED D E B T AS AN INSTRUMENT OF M A R -
1 5 9 . N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, b y N e l l i e L i a n g a n d
Donald Savage. February 1990. 12 pp.
1 6 0 . BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND M E D I U M - S I Z E D BUSINESSES, b y
Gregory E. Elliehausen and John D. Wolken. September
1 9 9 0 . 3 5 pp.
1 6 2 . EVIDENCE ON THE S I Z E OF BANKING MARKETS FROM M O R T GAGE LOAN RATES IN T W E N T Y CITIES, b y S t e p h e n A .
Rhoades. February 1992. 11 pp.
164. THE
1989-92
CREDIT
CRUNCH
FOR R E A L
ESTATE,
by
James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
KET DISCIPLINE, by Study Group on Subordinated Notes
and Debentures, Federal Reserve System. December 1999.
6 9 pp.
1 7 3 . IMPROVING PUBLIC DISCLOSURE IN BANKING,
by
Study
Group on Disclosure, Federal Reserve System. March 2000.
3 5 pp.
1 7 4 . B A N K MERGERS AND BANKING STRUCTURE IN THE U N I T E D
STATES, 1980-98, by Stephen Rhoades. August 2000. 33 pp.
1 7 5 . T H E FUTURE OF RETAIL ELECTRONIC PAYMENTS SYSTEMS:
INDUSTRY INTERVIEWS AND ANALYSIS, F e d e r a l R e s e r v e
Staff, for the Payments System Development Committee,
Federal Reserve System. December 2002. 27 pp.
A66
Federal Reserve Bulletin • March 2003
Maps of the Federal Reserve System
J
-
BOSTON
2 •
O
_
CLETCI.AND
4
9
3
P
a
"
N E W YORK
X I
„,
P H I A
RICHMOND
6 •
AIUNTA
i n
•
H
M
H
M
•HI
ALASKA
HAWAII
LEGEND
Both pages
•
Federal Reserve Bank city
•
Board of Governors of the Federal
Reserve System, Washington, D.C.
Facing page
• Federal Reserve Branch city
— Branch boundary
NOTE
The Federal Reserve officially identifies Districts by number and Reserve Bank city (shown on both pages) and by
letter (shown on the facing page).
In the 12th District, the Seattle Branch serves Alaska,
and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories as
follows: the New York Bank serves the Commonwealth
of Puerto Rico and the U.S. Virgin Islands; the San Francisco Bank serves American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. The Board of
Governors revised the branch boundaries of the System
most recently in February 1996.
A67
2-B
1-A
4 - D
3-C
5 - E
Mh
Baltimore
NY
y
\ f
Ml
MA
CR
Buffalo
"
MD
vJL^
Pittsburgh
PA
VAB
^
w\
NC
Cincinnati
•Charlotte
/
sr
" RI
BOSTON
NEW
PHILADELPHIA
YORK
RICHMOND
CLEVELAND
7 - G
6-F
• N a sh\ille
TN
Birmingham
AL - \
MS
•
7
Ml
Wl
\
-A
I )etroit 1
GA
MO
•L / I N .
Louisville
•
Jacksonville
TN
' Memphis
IN
New Orleans
Y
Mi^mi
CHICAGO
ATLANTA
9-1
ST. LOUIS
VRR
• l i e It
MB
ND
MN
ssi
SD
•
111
iAffej
^!*
w
MINNEAPOLIS
10-J
12-L
WY
NE
Omaha®
CO
KS
^ MO
a
Denver
NM
'
Oklahoma
• Citv
OK
KANSAS CITY
11-K
Salt Lake C ity
• L o s Angeles
San Antonio
DALLAS
SAN
FRANCISCO
A68
Federal Reserve Bulletin • March 2003
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
James J. Norton
Samuel O. Thier
Cathy E. Minehan
Paul M. Connolly
NEW YORK*
10045
Peter G. Peterson
John E. Sexton
Marguerite D. Hambleton
William J. McDonough
Jamie B. Stewart, Jr.
Buffalo
14240
PHILADELPHIA
19105
Glenn A. Schaeffer
Ronald J. Naples
Anthony M. Santomero
William H. Stone, Jr.
CLEVELAND*
44101
Jerry L. Jordan
Sandra Pianalto
Cincinnati
Pittsburgh
45201
15230
Robert W. Mahoney
Charles E. Bunch
Dennis C. Cuneo
Roy W. Haley
RICHMOND*
23219
J. Alfred Broaddus, Jr.
Walter A. Varvel
Baltimore
Charlotte
21203
28230
Wesley S. Williams, Jr.
Irwin Zazulia
Owen E. Herrnstadt
Michael A. Almond
Paula Lovell
David M. Ratcliffe
W. Miller Welborn
William E. Flaherty
Brian E. Keeley
Whitney Johns Martin
Dave Dennis
Jack Guynn
Patrick K. Barron
Robert J. Darnall
W. James Farrell
Timothy D. Leuliette
Michael H. Moskow
Gordon R. G. Werkema
Charles W. Mueller
Walter L. Metcalfe, Jr.
Vick M. Crawley
Norman Pfau, Jr.
Gregory M. Duckett
William Poole
W. LeGrande Rives
Ronald N. Zwieg
Linda Hall Whitman
Thomas O. Markle
Gary H. Stern
James M. Lyon
Terrence P. Dunn
Richard H. Bard
Robert M. Murphy
Patricia B. Fennell
A.F. Raimondo
Thomas M. Hoenig
Richard K. Rasdall
Ray L. Hunt
Patricia M. Patterson
Gail Darling
Lupe Fraga
Ron R. Harris
Robert D. McTeer, Jr.
Helen E. Holcomb
Nelson C. Rising
George M. Scalise
William D. Jones
Karla S. Chambers
H. Roger Boyer
Mic R. Dinsmore
Robert T. Parry
John F. Moore
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35242
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75201
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Barbara L. Walter 1
Barbara B. Henshaw
Robert B. Schaub
William J. Tignanelli 1
Dan M. Bechter 1
James M. McKee 1
Lee C. Jones
Christopher L. Oakley
James T. Curry III
Melvyn K. Purcell 1
Robert J. Musso 1
Glenn Hansen 1
Robert A. Hopkins
Thomas A. Boone
Martha Perine Beard
Samuel H. Gane
Maryann Hunter 1
Dwayne E. Boggs
Steven D. Evans
Robert W. Gilmer 3
Robert Smith III 1
James L. Stull 1
Mark L. Mullinix 2
Richard B. Hornsby
Andrea P. Wolcott
D.Kerry Webb 1
•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
3. Acting
A69
Publications of Interest
FEDERAL
RESERVE
REGULATORY
SERVICE
To promote public understanding of its regulatory functions, the Board publishes the Federal Reserve Regulatory Service, a four-volume loose-leaf service containing all Board regulations as well as related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are published separately as handbooks pertaining to monetary
policy, securities credit, consumer affairs, and the payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated monthly, and each contains citation indexes and a subject index.
The Monetary Policy and Reserve Requirements
Handbook contains Regulations A, D, and Q, plus
related materials.
The Securities Credit Transactions Handbook contains Regulations T, U, and X, dealing with extensions of credit for the purchase of securities, together
with related statutes, Board interpretations, rulings,
and staff opinions. Also included is the Board's list of
foreign margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, G, M, P, Z, AA, BB, and
DD, and associated materials.
GUIDE
TO THE FLOW
OF FUNDS
ACCOUNTS
A new edition of Guide to the Flow of Funds Accounts
is now available from the Board of Governors. The new
edition incorporates changes to the accounts since the
initial edition was published in 1993. Like the earlier
publication, it explains the principles underlying the
flow of funds accounts and describes how the accounts
are constructed. It lists each flow series in the Board's
flow of funds publication, "Flow of Funds Accounts of
the United States" (the Z.l quarterly statistical release),
The Payment System Handbook deals with expedited
funds availability, check collection, wire transfers, and
risk-reduction policy. It includes Regulations CC, J, and
EE, related statutes and commentaries, and policy
statements on risk reduction in the payment system.
For domestic subscribers, the annual rate is $200 for
the Federal Reserve Regulatory Service and $75 for
each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$250 for the service and $90 for each handbook.
The Federal Reserve Regulatory Service is also available on CD-ROM for use on personal computers. For a
standalone PC, the annual subscription fee is $300. For
network subscriptions, the annual fee is $300 for 1 concurrent user, $750 for a maximum of 10 concurrent
users, $2,000 for a maximum of 50 concurrent users,
and $3,000 for a maximum of 100 concurrent users.
Subscribers outside the United States should add $50
to cover additional airmail costs. For further information, call (202) 452-3244.
All subscription requests must be accompanied by a
check or money order payable to the Board of Governors of the Federal Reserve System. Orders should be
addressed to Publications, mail stop 127, Board of Governors of the Federal Reserve System, Washington, DC
20551.
and describes how the series is derived from source
data. The Guide also explains the relationship between
the flow of funds accounts and the national income and
product accounts and discusses the analytical uses of
flow of funds data. The publication can be purchased,
for $20.00, from Publications, Mail Stop 127, Board
of Governors of the Federal Reserve System, Washington, DC 20551.
A70
Federal Reserve Bulletin • March 2003
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 of release
H.3
Aggregate Reserves
Weekly/Thursday
H.4.1
Factors Affecting Reserve Balances
Weekly/Thursday
H.6
Money Stock
Weekly/Thursday
H.8
Assets and Liabilities of Insured Domestically Chartered
and Foreign Related Banking Institutions
Weekly/Monday
H.10
Foreign Exchange Rates
Weekly/Monday
H.15
Selected Interest Rates
Weekly/Monday
G.5
Foreign Exchange Rates
Monthly/end of month
G.17
Industrial Production and Capacity Utilization
Monthly/midmonth
G.19
Consumer Installment Credit
Monthly/fifth business day
Z. 1
Flow of Funds
Quarterly
@FedFRASER