Full text of Federal Reserve Bulletin : May 1991
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VOLUME 7 7 •
NUMBER 5 •
MAY 1991
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood
• Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman
The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions
expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics
Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
287 INTERNATIONAL
IN 1990
In 1990, for the third year in a row, the U.S.
current account deficit narrowed, falling
slightly below $100 billion. The merchandise trade deficit declined despite a sharp
increase in the value of oil imports, and the
surplus on other current account items,
such as services and investment income,
increased.
297 INDUSTRIAL
nomic Committee of the Congress, March
13, 1991.
TRANSACTIONS
PRODUCTION
Industrial production fell 0.8 percent in
February after declines of 1.1 percent and
0.5 percent respectively in December and
January. Total industrial capacity utilization fell 0.8 percentage point in February to
79.1 percent, its lowest level since late
1986.
311
ANNOUNCEMENTS
Policy to reduce impediments to lending by
banks and thrift institutions to creditworthy
borrowers.
Revisions to Regulation P.
Proposed enhancements to certain Federal
Reserve Bank services and proposed new
services related to checks not collected
through the Federal Reserve.
Changes in Board staff.
Publication of 77th Annual Report, 1990.
Publication of Annual Statistical
1980-89.
Digest,
313 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET COMMITTEE
300 STATEMENTS
TO THE CONGRESS
Alan Greenspan, Chairman, Board of Governors, discusses some of the most critical
considerations affecting the outlook for the
economy and the formulation of monetary
policy and some budgetary issues, and says
that it is not yet clear whether further
adjustments to policy will be required to
foster an upturn in output and employment,
before the House Committee on Ways and
Means, March 6, 1991.
305 Chairman Greenspan again discusses monetary policy and budgetary issues and says
that the budget accord, on the whole, provides a useful framework for conducting
fiscal policy, including sufficient flexibility
for specific tax and spending policies to be
altered to improve economic incentives or
to reset priorities, before the Joint Eco-
At its meeting on February 5 - 6 , 1991, the
Committee accepted the ranges for 1991
that it had established on a tentative basis in
July 1990. The latter ranges included expansion of 2Vi percent to 6V2 percent for M2
and 1 percent to 5 percent for M3, measured
from the fourth quarter of 1990 to the fourth
quarter of 1991. The monitoring range for
growth of total domestic nonfinancial debt
was set at 4V2 percent to 8V2 percent for
1991. In keeping with the Committee's
usual procedures under the HumphreyHawkins Act, the ranges would be reviewed at midyear, or sooner if deemed
necessary, in light of the behavior of the
aggregates and ongoing economic and financial developments.
With regard to the intermeeting period
ahead, the members adopted a directive
that called for maintaining the existing de-
gree of pressure on reserve positions. The
directive gave special weight to potential
developments that might require some easing during the intermeeting period. Accordingly, slightly greater reserve restraint might
be acceptable during the intermeeting period
or somewhat lesser reserve restraint would
be acceptable depending on progress toward
price stability, the strength of the business
expansion, the behavior of the monetary
aggregates, and developments in foreign exchange and domestic financial markets. The
reserve conditions contemplated at this
meeting were expected to be consistent with
some pickup in the growth of both M2 and
M3 to annual rates of around 3V2 percent to
4 percent over the three-month period from
December to March.
323 LEGAL
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
359 DIRECTORS OF FEDERAL
BANKS AND BRANCHES
RESERVE
List of Directors by Federal Reserve District.
AI FINANCIAL AND BUSINESS
STATISTICS
These tables reflect data available as of
March 27, 1991.
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A55 International Statistics
All
GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A78 BOARD OF GOVERNORS AND STAFF
A80 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A82 FEDERAL RESERVE
PUBLICATIONS
BOARD
A84 INDEX TO STATISTICAL
TABLES
A86 FEDERAL RESERVE
BANKS,
BRANCHES, AND OFFICES
A87 MAP OF FEDERAL RESERVE
SYSTEM
U.S. International Transactions in 1990
Lois Stekler, of the Board's Division of International Finance, prepared this article.
In 1990, for the third year in a row, the U.S.
current account deficit narrowed, falling slightly
below $100 billion. The merchandise trade deficit
declined despite a sharp increase in the value of
oil imports. In addition, the surplus on other
current account items, such as services and
investment income, increased (chart 1).
Changes in rates of economic growth in the
United States and abroad, oil price developments, and government transfers associated with
the crisis in the Persian Gulf heavily influenced
the quarterly pattern of adjustment in the current
account during 1990. The fluctuations in U.S.
price competitiveness resulting from the appreciation of the dollar against the currencies of
several major trading partners during 1989 and its
subsequent depreciation also influenced the pattern of trade during 1990.
Although the U.S. current account deficit narrowed in 1990, it remained substantial. Much of
the large net capital inflow that was necessarily
the counterpart of the deficit did not show up in
the recorded data, however. As a result, the
1. U.S. external balances
The shaded areas represent the net of unilateral transfers, services
transactions, and investment income.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts.
statistical discrepancy in the U.S. international
transactions accounts rose to a record $73 billion.
INFLUENCES ON U.S.
TRANSACTIONS
INTERNATIONAL
U.S. international transactions in 1990 were
shaped to a considerable extent by certain underlying economic factors. Perhaps most important
were changes in rates of economic growth in the
United States and abroad and changes in the
price competitiveness of U.S. products. During
the latter part of the year, Iraq's invasion of
Kuwait and the subsequent threat of military
conflict in the Persian Gulf produced additional
effects on U.S. international transactions. Oil
import prices rose, and foreign profits of U.S. oil
companies increased. Military exports and imports expanded, foreign governments made
transfers to the U.S. government to help defray
the costs of Desert Shield, and the U.S. government forgave Egyptian debt related to earlier
military sales. Also, foreign demand for U.S.
currency grew.
Relative
Growth
Rates
In 1990, U.S. economic growth slowed noticeably, and by the fourth quarter the economy
slipped into recession (table 1). In comparison
with the fourth quarter of 1989, little real growth
occurred in consumer spending or in producers'
durable equipment expenditures (excluding computers). The economic slowdown tended to depress the growth of U.S. demand for imported
goods and services and to reduce the profits
earned by foreign direct investors in the United
States.
Economic growth in major U.S. export markets abroad also slowed on average in 1990,
though not as sharply as U.S. growth did (table
1). The slowdown of growth abroad affected U.S.
288
1.
Federal Reserve Bulletin • May 1991
Growth of real GNP or GDP, selected countries, 1988-90
Percentage change at an annual rate, year over year except as noted
1990, quarter over quarter
1990
Q1
4.5
Other industrial countries3
Developing countries' . . .
4.0
4.4
3.2
3.4
.9
3.3
3.3
3.8
3.0
1.7
e
2.1
2.3
1.5
1.9*
3.1
4.4
.7
n.a.
e
Q2
Q3
Q4
.4
1.4
-1.8
.9®
.4
.9
n.a.
1.3®
1.0
1.4
n.a.
.1®
-1.3
1.8
n.a.
1. The GNP for foreign countries is the weighted average for the Group
of Ten (G-10) countries, other industrial countries, and developing countries.
The weights are based on U.S. bilateral nonagricultural exports.
2. The G-10 countries, excluding the United States, are Belgium-Luxembourg, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden,
Switzerland, and the United Kingdom.
3. The other industrial countries include Australia, Austria, Denmark,
Finland, Greece, Ireland, New Zealand, Norway, Portugal, South Africa,
Spain, and Turkey.
4. The GDP (not GNP) for developing countries is a weighted average for
the regions of Asia, Africa, the Middle East, the Western Hemisphere, and
Mexico,
n.a. Not available.
'Estimated using preliminary data, when available.
exports of goods and services and the profits
earned on U.S. direct investment abroad. Economic performance across countries varied considerably. For the Group of Ten (G-10) countries,
average growth slowed markedly after the first
quarter; during 1990 Canada and the United
Kingdom moved into recessions, but economic
activity continued strong in Germany and Japan.
Economic growth in the other industrial and
developing countries important to U.S. exports
was mixed as well. In Latin America, Mexico
was able to sustain fairly strong growth but other
countries, such as Argentina and Brazil, had
slowdowns or recessions that were associated
with stabilization programs. The newly industrializing economies of Asia (NIEs) continued to
grow rapidly.
1980s, a trend that suggests improved U.S. price
competitiveness (chart 2). However, the real
value of the dollar did rise on balance relative to
other G-10 currencies in 1989, to an average level
7 percent above that of 1988. The indicated
decline in U.S. price competitiveness probably
had a lingering negative effect on the U.S. trade
position in 1990. However, the subsequent decline in the dollar in the latter part of 1989 and in
1990 led to a cumulative improvement in U.S.
price competitiveness and appears to have had a
significant stimulative effect on net exports by
the last quarter of 1990.
Another aggregate measure indicating changes
in price competitiveness is unit labor costs in
manufacturing in the United States compared
U.S. Price
Competitiveness
2. Real exchange value of the dollar against
currencies of selected countries
Index, 1982= 100
The competitiveness of U.S. export and importcompeting industries depends on a variety of
factors, including relative productivity growth,
wage rates, the costs of inputs other than labor,
exchange rates, shifts in the composition of demand, and firms' pricing decisions and profit
margins. On an aggregate level, there are several
useful indicators of price competitiveness.
One overall measure of pressures on price
competitiveness is the real exchange rate: that is,
the nominal exchange rate adjusted for relative
inflation. The trend in the real exchange value of
the dollar relative to the currencies of major U.S.
trading partners has been down since the mid-
The real exchange value of the dollar is calculated using weighted
nominal exchange rates adjusted with weighted consumer prices. The
weights in the indexes are proportional to each country's share in world
exports plus imports during the years 1972-76. For the countries in the
G-10 index, see the note to table 1; the countries in the developingcountries index are Brazil, Hong Kong, Korea, Malaysia, Mexico,
the Philippines, Singapore, and Taiwan.
U.S. International Transactions in 1990
3. U.S. and foreign unit labor costs in manufacturing
1982
1984
1986
1988
1990
The foreign index includes Belgium, Canada, France, Germany,
Italy, Japan, the Netherlands, and the United Kingdom, and is constructed by weighting each country's unit labor costs by its share in
total manufacturing output.
SOURCE. Peter Hooper and Kathryn Larin, "International Comparison of Unit Labor Costs in Manufacturing," Review of Income and
Wealth, series 35 (December 1989), pp. 335-55. Measures of unit
labor costs are based partly on data published by the Bureau of
Labor Statistics.
with those in other industrial countries. As chart
3 indicates, translated into dollars an average of
unit labor costs for other major industrial countries has risen substantially relative to U.S. costs
as the dollar has fallen from its 1985 peak. At
present, manufacturing in the United States appears to have a significant cost advantage over
manufacturing in these other countries—a situation representing a shift from that in the first half
of the 1980s.
DEVELOPMENTS
IN MERCHANDISE
TRADE
Improvement in the U.S. merchandise trade
balance slowed in 1990, with the deficit narrowing only $6 billion for the year—half the rate of
2.
289
decline recorded in 1989. The increase in the
value of exports was almost matched by the
increase in the value of imports (table 2). Moreover, a comparison of the trade balance in the
fourth quarter of 1990 with that in the fourth
quarter of 1989 shows no improvement at all.
For the most part, the U.S. trade picture
continued to improve, but oil market developments masked this improvement in 1990. Excluding oil imports, the U.S. trade deficit decreased
$17 billion—less than the $23 billion improvement in 1989, but still substantial.
Exports
The value of U.S. agricultural exports declined
slightly in 1990 from the high 1989 level (table
2). Crop yields that were average to better than
average in the United States and in the rest of
the world allowed for a further replenishing of
stocks and resulted in the continued downward
drift of agricultural prices from the droughtinduced highs of 1988. The price of wheat led
the decline in agricultural export prices in 1990.
Strong world production of wheat and lackluster imports by the Soviet Union and China
resulted in a gradual erosion of prices over the
year.
Special factors influenced the quarterly pattern
of U.S. exports. Large purchases of corn by the
Soviet Union, which had resumed in the fourth
quarter of 1989, tailed off rapidly after the second
quarter of 1990. Exports of the new crop of
soybeans got off to a slow start late in 1990.
South America provided stiff competition for
U.S. products in a market hurt by dwindling
U.S. merchandise trade, 1988-90'
Billions of dollars, seasonally adjusted at annual rates
1989
Type of trade
1988
1989
1990
1990
Q4
Ql
Q2
Q3
04
Merchandise exports
Agricultural
Nonagricultural
320
38
282
361
42
319
389
40
349
367
41
326
384
44
341
386
41
345
385
39
346
402
38
364
Merchandise imports
Oil
Non-oil
447
40
408
475
51
424
498
62
436
482
53
429
491
62
429
479
49
431
504
63
441
517
75
442
-127
-115
-109
-115
-107
-93
-119
-115
Trade balance
1. Components may not add to totals because of rounding.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
U.S. international transaction accounts.
290
Federal Reserve Bulletin • May 1991
purchases by the Soviet Union and Pakistan
because of financial considerations.
The value of nonagricultural exports expanded
about 9 percent in 1990 (year over year), down
from an even stronger 13 percent pace in 1989.
As chart 4 indicates, increases in quantity accounted for most of the growth in value, and
these increases were concentrated in the first and
last quarters. The slowdown in economic growth
in the major U.S. trading partners after the first
quarter, however, negatively affected the expansion of the quantity of U.S. exports. The lingering negative effects of the decline in U.S. price
competitiveness in 1989 associated with the
higher exchange value of the dollar relative to the
average of other G-10 currencies also probably
contributed to the slowing of export growth.
Nevertheless, exports picked up strongly again
in the fourth quarter, despite continued slow
growth abroad on average, possibly because the
stimulative effects of the cumulative gains in
price competitiveness during 1990 began to show
through.
Over the four quarters of 1990, increases in the
quantity of exports were largest for consumer
goods, capital goods, and industrial supplies (table 3). However, the percentage increase in
exports of consumer goods and capital goods
other than computers was smaller over the four
quarters of 1990 than it was for the previous year.
Exports of automotive products were flat, while
exports of foods declined.
Export price increases (measured in dollars)
were rather modest over the four quarters of 1990
4. U.S. nonagricultural exports
3.
Changes in the quantity of U.S. exports, 1988-90
Percentage change, fourth quarter to fourth quarter
Quantity
Type of export
1988
Capital goods
Computers
Other
Automotive products
Consumer goods
Foods
Industrial supplies
Other
21
22
21
8
29
1
12
2
-
1989
1990
11
12
11
25
15
11
23
12
16
8
0
16
-7
11
-18
12
12
- 6
9
2
MEMO:
Agricultural
Nonagricultural
0
17
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
national income and product accounts.
and were about in line with increases in U.S.
domestic producer prices (weighted by export
shares). The fixed weight price index for U.S.
nonagricultural exports increased 4 percent between the fourth quarter of 1989 and the fourth
quarter of 1990. Small price increases (measured
in dollars), combined with the sharp depreciation
in the average foreign exchange value of the
dollar, imply that export prices of U.S. goods
measured in foreign currencies declined substantially on average. On the whole, U.S. exporters
appear to have taken advantage of the opportunity to improve their price competitiveness
abroad rather than to raise profit margins on their
foreign sales when the dollar fell.
In terms of destination, the growth in the value
of nonagricultural exports varied considerably
from country to country (table 4). The growth of
exports to Canada was sluggish, a development
that reflected that country's economic recession.
In contrast, exports to Western Europe, particularly consumer goods, commercial aircraft and
4.
U.S. nonagricultural exports, by region, 1988-90
Billions of dollars
Percentage
change
Value
Importing region
1988
1989
1990
All regions, total ..
282
319
349
9
Canada
Western Europe ..
70
78
30
18
86
76
91
36
22
94
79
104
40
26
101
3
14
12
17
8
Mexico
Other
1. Seasonally adjusted annual rate.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. national income and product accounts.
1990
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
U.S. international transaction accounts.
U.S. International Transactions in 1990
other capital goods, and industrial supplies, were
strong. Exports to Mexico also increased
sharply, particularly shipments of automotive
parts for use by Ford, General Motors, and
Chrysler in their Mexican plants. Led by increased deliveries of commercial aircraft and
consumer goods, exports to Japan grew 12 percent.
Imports
The value of non-oil imports rose about 3 percent
during 1990 (year over year). On a fourth-quarter-to-fourth-quarter basis, imports grew a modest 3 percent, despite the substantial depreciation
of the dollar relative to the currencies of major
U.S. trading partners during this period. Declines in the prices of many primary products
contributed to the overall weakness in import
prices. In addition, some exporters to the United
States, faced with slack demand, may well have
allowed their profit margins to decline rather than
suffer further declines in sales.
The quantity of U.S. non-oil imports also grew
slowly during 1990, largely because of the slowdown in U.S. economic activity (table 5). On a
fourth-quarter-to-fourth-quarter basis, imports of
capital goods other than computers and industrial
supplies were essentially flat, and imports of
consumer goods and foods, feeds, and beverages
declined. Growth of computer imports—at 9 percent—was far below the strong 1989 pace.
Imports of all automotive products were up
only slightly in 1990. Declines in imports of
trucks and parts nearly offset a sharp rise in
5.
Changes in the quantity of U.S. non-oil imports,
1988-90
imports of passenger cars. On a year-over-year
basis, the geographic pattern of car imports diverged considerably. The number of units imported from Canada, Mexico, and Germany rose
strongly; on the other hand, imports from Japan,
Korea, and Sweden dropped. For Japanese auto
makers, increased production at their U.S. plants
more than offset declines in imports. Sales of
Japanese nameplate cars were about 4 percent
higher in 1990 than in 1989, in contrast to the
decline in sales by U.S. Big Three auto makers.
While the value of U.S. non-oil imports overall
grew slowly in 1990, there were significant differences across countries of origin (table 6).
Automotive products accounted for more than
half of the sharp increase in non-oil imports from
Mexico, a result of increased production in Mexico by U.S. auto makers. Imports from Canada
rose slightly, while imports from Western Europe, particularly Germany, were somewhat
stronger. In contrast, imports from Japan, particularly capital goods and automotive products,
declined. There was also a decline in imports,
primarily consumer goods, from the Asian NIEs;
however, imports from other low-wage Asian
countries increased.
The value of oil imports jumped $11 billion in
1990 to $62 billion. On a fourth-quarter-to-fourthquarter basis, the increase was even larger—$22
billion at an annual rate. Price developments
accounted for most of the increase in value.
The price of imported oil, which had increased
in the fourth quarter of 1989 as a result of
extremely cold weather, fell almost continuously
in the first half of 1990 (see chart 5). Rapid
increases in OPEC production, combined with
6.
U.S. non-oil imports, by region, 1988-90
Billions of dollars
Percentage change, fourth quarter to fourth quarter
Quantity
1989
1990
Non-oil, total
Computers
All other
Industrial supplies....
Other capital goods...
Automotive
Consumer goods
Foods, feeds,, and
beverages
10
-1
5
6
-10
3
0
1
-2
-5
10
-4
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
national income and product accounts.
Percentage
change
Value
Type of import
1988
291
Exporting region
1988
1989
1990
1990
All regions, total ..
408
424
436
3
Canada
Western Europe ..
Japan
Asian NIEs'
Mexico
Other
80
98
90
63
20
58
83
97
93
63
23
65
86
103
90
61
25
72
3
6
-4
-3
11
10
1. Includes Hong Kong, Singapore, Taiwan, and Korea
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
U.S. international transaction accounts.
292
Federal Reserve Bulletin • May 1991
5. Oil prices
6. U.S. oil consumption, production, and imports
Dollars per barrel
Millions of barrels per day
1982
1984
1986
1988
1990
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis; Petroleum Intelligence Weekly, various issues.
SOURCE. U.S. Department of Energy, Energy Information Administration, Petroleum Supply Monthly, various issues.
milder weather in the first quarter, permitted a
restoration of previously depleted stocks as well
as softer prices. However, the OPEC agreement
in mid-July to limit production, followed shortly
by the invasion of Kuwait by Iraq, ended the
period of falling prices. The initial results of
Iraq's invasion of Kuwait were a reduction in
world production, precautionary stock building,
and a sharp increase in prices to a peak of $40 per
barrel for West Texas intermediate for several
days in early October. By November, rapid
increases in oil production, both within OPEC
and in the North Sea, had entirely offset the loss
of supply from Iraq and Kuwait (table 7). This
increase in production, coupled with slowing
world economic growth and a mild winter,
brought prices back to a range of $26 to $28 per
barrel in December and early January and left
world stocks at historically quite comfortable
levels. Oil markets reacted favorably to the success of Operation Desert Storm, and prices set-
tied at roughly $20 per barrel by the end of
March.
The volume of U.S. oil imports grew only 1
percent in 1990 (year over year), despite the
continued decline in U.S. oil production (chart
6). The decline in oil prices since 1982 has
discouraged expenditures on exploration and development in the United States and has resulted
in lower production. Imports in 1990 supplied
almost half of U.S. consumption, up from a range
of 35 percent to 40 percent in the early 1980s.
The volume of oil imports varied substantially
from quarter to quarter in 1990. An extremely
cold December in 1989 pushed stocks of petroleum and products in the United States well
below average historical levels by year-end. A
scramble by companies to replenish these stocks
in the first quarter resulted in imports averaging
8.9 million barrels per day—the highest rate of
imports since the first quarter of 1979—despite
unusually mild weather. Falling world oil prices
7.
World crude oil supply
Millions of barrels per day
1990
Item
1989
Ql
Q2
Q3
Q4
Production'
Saudi Arabia2
Iraq
Kuwait2
Other OPEC
Non-OPEC
5.1
2.8
1.8
12.0
36.8
5.7
3.0
2.1
12.8
36.9
5.6
3.1
1.9
12.9
36.8
6.4
1.3
.7
13.1
36.1
8.2
.4
.1
14.4
37.3
World total
58.4
60.5
60.3
57.7
60.4
.1
.5
2.7
-.8
.9
Stock change
1. Excludes natural gas liquids and lease condensates.
2. Includes half of Neutral Zone production through July 1990. Beginning
in August, all Neutral Zone production is attributed to Saudi Arabia.
Production quotas
set by OPEC
(July Accord)
5.4
3.1
1.5
12.5
SOURCES. International Energy Agency, Monthly Oil Market Report;
Petroleum & Energy Intelligence Weekly, Inc., Petroleum Market Intelligence;
Central Intelligence Agency, International Energy Statistical Review, monthly.
U.S. International Transactions in 1990
in the second quarter encouraged additional
stockbuilding from the healthy first-quarter levels and, coupled with further declines in U.S.
crude oil production (especially in Alaska), kept
imports relatively high through July.
The invasion of Kuwait by Iraq boosted precautionary stockbuilding of petroleum products
in the United States, which fueled continued
strength in imports in the third quarter. However, in contrast to the rest of the world, stocks
in the United States were worked off in the fourth
quarter and at the end of the first quarter of 1991
stood somewhat below historical average levels.
These stocks were drawn down as refineries cut
production in the face of weak economic activity
and mild winter weather to perform needed maintenance. Imports for the fourth quarter fell below
7.2 million barrels per day in the face of these
drawdowns of stocks.
Unilateral
293
Transfers
In recent years, unilateral transfers have
amounted to net outflows averaging about $15
billion per year, largely composed of U.S. government grants and pensions to foreign residents.
However, the crisis in the Persian Gulf had a
significant effect on the level of transfers for the
fourth quarter of 1990, and, as a result, the
outflow for the year rose to $21 billion. The
United States forgave Egypt's debt related to
earlier military sales (an outflow of approximately $7 billion). On the other hand, the U.S.
government received significant transfers from
other governments to help defray the costs of
Desert Shield (about $4 billion). Substantially
larger contributions by foreign governments to
help cover the costs of Desert Storm are expected in 1991.
Services
NONTRADE
CURRENT
ACCOUNT
The surplus on nontrade current account grew
from $5 billion in 1989 to $9 billion in 1990 (table
8). Increases in net receipts of investment income and net exports of services were partly
offset by an increase in net U.S. unilateral transfers abroad.
8.
Net services, which include military exports and
imports, also reflected the effects of the crisis in
the Persian Gulf. Military sales rose $2 billion in
1990, largely a result of increased deliveries of
equipment to coalition partners in the Middle
East. It should be noted, however, that shipments of material and equipment from the United
U . S . nontrade current account transactions, 1 9 8 6 - 9 0 '
Billions of dollars
1. Details may not add to totals because of rounding.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
U.S. international transaction accounts.
294
Federal Reserve Bulletin • May 1991
States for use by U.S. troops abroad are not
counted as exports. Military expenditures abroad
also rose in 1990, by $2 billion, because of
increased purchases abroad associated with operations in the Middle East. This total does not
include in-kind supplies (for example, fuel, water, and housing) provided to U.S. forces by
other countries.
The net balance on services other than military
sales and expenditures continued to improve, a
trend that reflected the U.S. comparative advantage in producing certain kinds of services and
the same relative price and income movements
that have led to continued improvements in the
U.S. trade balance. In line with the growing
importance of services in U.S. international
transactions, both exports and imports of services grew more rapidly than trade in goods.
Travel and passenger fares accounted for nearly
half of the increase in service receipts; the same
two categories plus other ^transportation accounted for more than half the increase in payments.
Investment
Income
Net investment income was positive in 1990, in
contrast to a small negative amount in 1989 (table
8). Increases in net direct investment receipts
outweighed increases in net portfolio investment
payments. Direct investment receipts were larger
than those in 1989, mainly because of temporary
spikes in petroleum prices and profits: Income of
affiliates of U.S. petroleum companies abroad
(before capital gains or losses) increased 30 percent. In contrast, income reported by manufacturing affiliates abroad declined, despite the recent rapid growth in U.S. direct investment
abroad and the lower foreign exchange value of
the dollar, which tends to inflate the dollar value
of profits earned by U.S. companies in other
countries. Recessions in Canada and the United
Kingdom, countries that account for about onethird of all U.S. direct investments abroad,
tended to depress incomes earned by U.S. investors.
The returns reported by foreigners on their
direct investments in the United States generally
have been low in recent years, and income in
1990 was depressed further by the slowdown in
U.S. economic activity. Since the beginning of
1987, foreigners have added more than $200
billion to their direct investments in the United
States, but reported income payments on all
direct investments of foreigners in the United
States were lower in 1990 than they were in 1987.
Net portfolio investment payments increased
only slightly, despite continued growth in U.S.
net international indebtedness. The deterioration in the net portfolio position was masked in
part by the decision to forgive Egypt's military
sales debt and the accounting treatment that
credited cumulative interest arrears as paid in
the fourth quarter. A decline in average interest
rates also tempered somewhat the growth in net
payments.
CAPITAL ACCOUNT TRANSACTIONS
THE STATISTICAL
DISCREPANCY
AND
The net capital inflows that were the counterpart
to continuing U.S. current account deficits went
largely unrecorded in 1990 (table 9). As a result,
the statistical discrepancy in the U.S. international transactions accounts reached $73 billion.
In principle, the sum of all transactions in the
U.S. balance of payments accounts, a doubleentry bookkeeping system, should equal zero.
For each transaction there should be two equal
entries of opposite sign. In practice, the recorded
accounts never sum exactly to zero because the
data that reflect the debit and credit counterparts
of each single transaction generally are obtained
from different sources. The statistical discrepancy recorded for the international transactions
account is the net of errors and omissions in all
the components.
A positive statistical discrepancy represents
some combination of net unrecorded exports to
foreigners of goods, services, and investment
income and net unreported capital inflows from
abroad. While errors and omissions do occur in
the reporting of current account transactions as
well as capital account transactions, the more
than three-fold increase in the statistical discrepancy from $22 billion in 1989 was probably
accounted for largely by net unreported private
capital flows. The actual current account is not
likely to have improved by the additional $50
billion represented by the increase in the statis-
U.S. International Transactions in 1990
9.
C o m p o s i t i o n o f U . S . capital
flows,
295
1986-90
^
1989
1990
-128.9
-110.0
-99.3
38.6
-15.3
31.6
8.8
-25.3
1.2
30.8
-2.2
3.0
102.9
-5.3
10.5
42.4
-23.8
1988
Current account balance
Official capital, net
Foreign official assets in the United States
U.S. official reserve assets
39.5
-3.9
3.0
Other U.S. government assets
98.7 «
Private capital, net
Net inflow reported by U.S. banking offices .
Securities transactions, net
Private foreign net purchases of the following:
U.S. Treasury securities
U.S. corporate bonds1
U.S. corporate stocks
U.S. net purchases of foreign securities . . .
Direct investment, net
Foreign direct investment in the United States
U.S. direct investment abroad1
Other
Statistical discrepancy
§gg
-21.9
45.7
72.2
-26.5
4.3
1.1
16.7
-14.8
-26.8
-8.4
25.7
-34.2
6.3
22.4
73.0
30.0
27.8
6.6
6.8
-8.4
20.6
•
1. Transactions with finance affiliates in the Netherlands Antilles have been
excluded from direct investment outflows and added to foreign purchases of
U.S. securities.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
U.S. international transaction accounts.
tical discrepancy between 1989 and 1990. Based
on past history, the recorded improvement in the
current account in 1990 was no smaller than
would have been expected, given movements in
relative prices and incomes. Changes in holdings
of official monetary authorities also are likely to
be reported accurately, especially since a large
part of official reserves in the United States are
held on a custodial basis at the Federal Reserve
Bank of New York. In addition, foreign data
sources do not give any indication of large increases in official dollar holdings that did not
show up in the U.S. statistics.
One obvious omission from the data on private
capital flows is increases in foreign holdings of
U.S. currency. Fragmentary evidence indicates a
sharp rise in net shipments of U.S. currency
abroad by banks in 1990.1 Increased foreign
demand for U.S. currency could well have been
stimulated by increased political and economic
instability in many parts of the world.
An increase in foreign holdings of U.S. currency could explain only part of the statistical
discrepancy in 1990. However, pinpointing exactly where the other errors and omissions
occurred is difficult. In recent decades, financial
innovation, technological change, deregulation
of financial markets, and elimination of capital
controls have all contributed to the increasing
internationalization of financial markets. New
channels for capital flows involving new instruments and new participants have developed;
therefore information from a limited number of
large financial intermediaries and corporations
located in the United States no longer covers
the bulk of international capital flows. These
developments have made the tracking of international capital flows far more problematical at
a time when obtaining additional resources to
devote to data collection has been difficult.
Recorded capital flows indicate an increase in
net inflows reported by banks. However, net
inflows resulting from securities transactions and
direct investment were down sharply, and other
recorded capital inflows were small. Relative
interest rate movements made dollar assets less
attractive relative to assets denominated in yen
or marks and made raising funds in the United
States to finance acquisitions and operations
more attractive for multinational corporations.
1. Transactions that result in increased foreign holdings of
U . S . currency do not always contribute net to the statistical
discrepancy. In a system of double-entry bookkeeping, it
depends on whether the other side of the transaction is
reported or omitted as well. In the case of net shipments of
currency abroad by banks, the other side of the transaction
(the payment to the bank for the currency) is reported and
does contribute to a positive discrepancy.
296
Federal Reserve Bulletin • May 1991
Despite continued large-scale acquisitions of
U.S. businesses by foreigners, the direct investment capital inflow fell from $72 billion in 1989 to
only $26 billion in 1990; the capital outflow
reported by U.S. direct investors abroad increased from $32 billion in 1989 to a record $36
billion in 1990.
Nevertheless, as long as the United States runs
substantial current account deficits and net official capital inflows are small, the sum of recorded
and unrecorded net private capital inflows must
be large and positive: That is, the balance of
payments accounts must sum to zero. Changes in
relative interest rates can be reflected in changes
in exchange rates and shifts in the composition of
capital flows, but not, initially at least, in shifts in
realized net capital flows overall. Only over time,
as the current account responds to a decline in
the dollar's value, can realized net capital inflows
decline. The recorded data on private capital
flows in 1990, which show a sharp decline in net
inflows, should be viewed with suspicion.
INTERNATIONAL
INVESTMENT
POSITION
Although continuing U.S. current account deficits and net capital inflows certainly imply faster
growth of foreign assets in the United States than
of U.S. assets abroad, the Bureau of Economic
Analysis (BEA) did not publish an overall estimate of the net U.S. international investment
position last year. BEA argued that, because
some components of the investment position are
measured at historical cost while others are measured at current market value, adding components based on such a mix of valuations would
not provide a useful indicator of the level of the
investment position. The valuation of direct investment at historical cost may very well understate the net investment position because U.S.
direct investment abroad is much older on average than foreign direct investment in the United
States. BEA is preparing alternative estimates of
the direct investment position based on market
value and replacement cost for publication later
this year.
Not all significant corrections to the data tend
to increase the net investment position of the
United States. The investment position is estimated using data on recorded capital flows.
However, the statistical discrepancy in the U.S.
international transactions accounts since 1975
has tended to be both large and positive, cumulating to more than $275 billion. If, as suspected,
unrecorded capital inflows account for a significant part of the cumulative positive discrepancy,
then net foreign assets in the United States are
underestimated to that extent.
PROSPECTS FOR 1991
The U.S. current account deficit is likely to
shrink rapidly in 1991 if oil prices remain at about
their current level. An important, but transitory,
factor behind the expected improvement in the
current account is substantial unilateral transfers
from foreign governments to cover the costs of
Desert Storm. In addition, the U.S. recession
will cut temporarily into U.S. imports of goods
and services and payments of profits on foreign
direct investment in the United States. Moreover, the imprdvement in U.S. price competitiveness resulting from the substantial depreciation of the foreign exchange value of the dollar in
1990 is likely to continue to have favorable
effects on the trade balance in 1991. These favorable effects will diminish subsequently, especially if the recent strengthening of the dollar
persists.
297
Industrial Production and Capacity Utilization
Released, for publication on March 15
Industrial production fell 0.8 percent in February
after declines of 1.1 percent and 0.5 percent
respectively in December and January. Assemblies of autos and trucks fell more than 5 percent,
retracing their January rise. Excluding motor
vehicles and parts, production decreased 0.7
percent in February—about the same as declines
in the previous three months. Total industrial
capacity utilization fell 0.8 percentage point in
February to 79.1 percent, its lowest level since
late 1986. At 105.7 percent of its 1987 annual
average, industrial production in February was
2.6 percent below its level a year ago.
In market groups, in February, output of con-
Industrial production indexes
Twelve-month percent change
Twelve-month percent change
Products
1986
1987
1988
1989
1990
1986
1991
1987
1988
1989
1990
1991
Capacity and industrial production
Ratio scale, 1987 production = 100
— Total industry
_
Capacity
—
^ "
—~
Production
1
1
1
1
1
1
Ratio scale, 1987 production =100
— 140
_
120
1
— Manufacturing
140
Capacity
1
1
1
"
120
100
100
/
— 80
1
—•—
1
1
1
1
1
Production
— 80
I I
Percent of capacity
Percent of capacity
Manufacturing
Total industry
90
90
Utilization
80
80
70
1
1979
1
1981
1
1
1983
1
1
1985
1
1
1987
1
1
1989
All series are seasonally adjusted. Latest series, February.
1
70
1
1991
1
1979
1
1981
1
1
1
1983
1
1
1985
1
1
1987
1
1
1989
1
1991
298
sumer goods excluding autos and trucks fell 0.5
percent, about the same rate of decline as in
December and January. Production of appliances, carpeting, furniture, and electricity for
residential use fell last month, more than offsetting a sharp jump in consumer fuel, particularly
gasoline. Output of business equipment other
than motor vehicles decreased 0.4 percent further in February, reflecting sizable declines in
both industrial and farm equipment; production
of information-processing equipment, which includes computers, posted gains in both January
and February. Output of construction supplies
fell 1.1 percent in February, continuing the
sharp contraction that began in August.
For the third successive month, the rate of
decline in the output of materials exceeded that
of products, owing mainly to widespread cutbacks in production of durable materials, particularly parts used by the motor vehicle industry and basic metals. Production of nondurable
materials was about unchanged in February,
after having fallen in each of the three preceding
months; last month, a rise in the output of paper
materials about matched declines in textiles and
chemicals. Production of energy materials was
reduced again in February because electricity
generation dropped sharply.
In industry groups, manufacturing output fell
0.8 percent in February, and the factory utilization rate fell 0.8 percentage point to 78.0 percent,
its lowest rate since December 1983. Once again,
declines occurred in most major industries, although they were more pronounced in durable
manufacturing. Output in primary metals fell
sharply for the third consecutive month; iron and
steel output dropped about IVi percent in both
January and February, lowering its utilization
rate to less than 69 percent. The utilization rate
for lumber and products also fell sharply because
output fell 3.5 percent.
Utilization in manufacturing has been falling
rapidly since September after having edged down
throughout the summer. The principal contribu-
1987 = 100
Percentage change from preceding month
Nov/
Dec/
Jan. p
Feb. p
Nov/
Dec/
Jan/
Feb. p
Percentage
change,
Feb. 1990
to
Feb. 1991
Total index
108.3
107.2
106.6
105.7
-1.5
-1.1
-.5
-.8
-2.6
Previous estimates
108.2
107.0
106.5
-1.6
-1.1
-.4
Major market groups
Products, total
109.3
108.4
107.9
107.2
-1.6
-.7
-.5
-.7
-2.0
Consumer goods
Business equipment
Construction supplies
Materials
106.5
122.9
101.8
106.8
105.5
121.6
100.8
105.2
105.4
121.2
98.6
104.5
104.6
120.4
97.5
103.4
-1.9
-2.0
-1.3
-1.4
-.9
-1.1
-1.0
-1.6
-.1
-.3
-2.1
-.6
-.7
-.7
-1.1
-1.1
-2.2
.3
-9.9
-3.4
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
108.9
109.9
107.7
103.3
106.9
107.4
107.6
107.2
103.2
108.5
106.9
107.0
106.8
102.5
107.6
106.0
105.7
106.5
103.3
104.1
-1.6
-2.4
-.6
.7
-2.0
-1.4
-2.1
-.5
-.1
-1.4
-.5
-.5
-.4
-.7
-.8
-.8
-1.3
-.2
.8
-3.3
-3.3
-4.6
-1.6
2.3
.1
Industrial production
1990
1991
1991
1990
Percent of capacity
Capacity utilization
Average,
1967-90
Low,
1982
High,
1988-89
1990
1991
1990
Feb.
Nov/
Dec/
Jan/
Feb. p
Capacity
growth,
Feb. 1990
to
Feb. 1991
Total industry
82.2
71.8
85.0
83.3
81.6
80.5
79.9
79.1
2.5
Manufacturing
Advanced processing
Primary processing
Mining
Utilities
81.5
81.1
82.4
87.4
86.8
70.0
71.4
66.8
80.6
76.2
85.1
83.6
89.0
87.2
92.3
83.0
81.7
86.1
87.4
82.5
80.7
79.6
83.2
90.6
83.8
79.4
78.6
81.3
90.7
84.9
78.8
78.1
80.4
90.1
84.1
78.0
77.5
79.2
90.9
81.2
2.9
3.3
2.2
-1.7
1.6
r Revised,
p Preliminary.
NOTE. Indexes are seasonally adjusted.
Industrial Production and Capacity Utilization
tors to this drop have been motor vehicles and
related industries, although declines also have
been recorded in almost all industries.
Output at mines increased 0.8 percent in
299
February, mainly reflecting a gain of 4 percent
in coal production. Production at utilities fell
3.3 percent as relatively mild winter weather
continued.
300
Statements to the Congress
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve System,
before the Committee on Ways and Means, U.S.
House of Representatives, March 6, 1991.
I am pleased to have the opportunity to appear
before you again. As you know, the Federal
Reserve's semiannual "Monetary Policy Report
to the Congress" and testimony, which were
submitted to the Congress two weeks ago, provided an extensive review of recent and prospective economic developments and of monetary
policy actions and intentions. 1 Rather than take
you through the details of that report this morning, I would like, first, to focus on a few of the
most critical considerations affecting the outlook
for the economy and the formulation of monetary
policy and, then, to turn briefly to budgetary
issues.
THE ECONOMIC OUTLOOK AND
MONETARY POLICY
The recently available readings on business activity indicate that the economic contraction that
began during the latter part of 1990 has continued
in recent months. However, the incoming information, on balance, does not suggest that the
recession is becoming more serious than we
thought a month ago when we formulated our
economic projections for 1991. At that time, the
"central tendency" forecast of the Federal Open
Market Committee (FOMC) members and other
Reserve Bank presidents anticipated an upturn in
1. See "Monetary Policy Report to the Congress," Federal
Reserve Bulletin, vol. 77 (March 1991), pp. 147-64 and
"Statement by Alan Greenspan, Chairman, Board of Governors of the Federal Reserve System, before the Committee
on Banking, Housing, and Urban Affairs, U.S. Senate, February 20, 1991," Federal Reserve Bulletin, vol. 77 (April
1991), pp. 240-46.
real activity later this year, with real GNP ending
1991 between 3A percent and Wi percent higher
than it was in the fourth quarter of 1990.
In discussing those projections, we stressed
the extent to which uncertainties associated both
with the situation in the Gulf and with several
unresolved problems in the economy made the
outlook unusually difficult to assess; to a somewhat lesser extent, that is still the case. Certainly, the successful end to the hostilities in the
Gulf has removed a troublesome uncertainty and
should provide some lift to consumer and business confidence. But the other factors that we
noted earlier—concerns about credit availability
and problems in real estate markets—continue to
restrain activity and to weigh importantly on
business thinking.
The restraint on credit availability at depository
institutions represents a continuing clear risk to
the outlook and, therefore, is a critical challenge
for policy. To date, our assessment is that reduced demand for credit stemming from the weakness in real activity accounts for most of the
recent contraction in bank lending. Nonetheless,
developments on the supply side also have had a
noticeable effect. The surveys of senior loan officers that are conducted by the Federal Reserve
at three-month intervals have shown progressive
tightening of business credit terms since last
spring. Banks report that they have been applying
more stringent credit standards and have made
the price and nonprice terms of business credit
less favorable to a wide range of customers.
Several factors underlie these changes in lending practices. Given the uncertain economic environment, banks are appropriately taking a
closer look at prospective borrowers in some
specific industries. But what is of most concern
to us is restraint on lending by commercial bankers to otherwise creditworthy customers. For
borrowers whose riskiness has been essentially
unaffected by the recession or by developments
in specific markets, the reluctance of banks to
301
lend seems to arise from attempts to bolster
capital positions. Banks are trying to raise capital-asset ratios, or at least hold down declines in
those ratios that might result from losses on
outstanding loans. In some cases, loan losses and
pressures on capital may be exacerbated by the
degree to which examination standards are forcing loans to be written down inappropriately or
by market reaction to aggregated data on problem credits on certain categories of loans.
Information from our surveys and estimates of
funds supplied in financial markets indicate that
the majority of those borrowers who have been
turned away or who have been discouraged from
borrowing at depository institutions have been
able to find financing elsewhere. But one must
assume that the alternatives, when they exist, are
only available at a higher price. The problems of
locating other sources of credit may be especially
severe for some types of borrowers—small businesses and those in commercial real estate, for
instance—who may not have ready access to
securities markets. How much production has
been lost as a result of sound projects cut back or
unable to go forward because of a rise in financing costs or because of an actual or feared
lack of financing is difficult to assess. But it is
clear that the restraint on credit availability,
along with the deterioration in profits, began to
enter importantly in business decisionmaking
even before the onset of the recession.
Several steps that should relieve constraints on
credit supplies have been taken by the Federal
Reserve. These steps include lowering interest
rates, reducing reserve requirements, and working with other depository supervisory agencies to
identify and correct practices that may be unnecessarily discouraging the flow of funds to creditworthy borrowers. Taken together, these steps
may well prove sufficient to foster the growth of
credit needed to finance economic expansion.
But we recognize the risk that problems in this
area could persist and could warrant further
actions.
Another clear negative in the outlook remains
the real estate sector, the problems of which
have exacerbated the difficulties of financial institutions. In the commercial sector, the overhang of vacant space is still substantial, implying
that further declines in new construction will
probably occur, even during a period of renewed
economic growth. Beyond the impact on new
construction, the existence of a sizable stock of
underused properties whose asset values have
declined has repercussions for financial institutions that are carrying them on their balance
sheets.
The most notable feature of the current downturn has been the marked erosion of business
attitudes and consumer confidence that occurred
after July. In the business sector, the clearest
manifestation of the deterioration in attitudes
was the rapidity with which producers moved to
cut output and to pare inventories in response to
actual or anticipated weakness in sales. Judging
from readings of anticipated hiring, inventory
accumulation, and capital spending, businesses
remained in this cautious stance early this year,
awaiting firm indications of the timing and
strength of any recovery in demand.
Consumer confidence also registered an unprecedented plunge between July and October
last year, which probably was an element depressing business expectations for sales. Such a
decline in sentiment also might have been expected to result in a rise in precautionary saving.
But, income growth also was depressed, and
when the sudden rise in oil prices forced households to devote a significantly higher share of
their disposable income to energy bills, both
saving and spending, in real terms, were cut back
sharply.
It would be most unwise to ignore the possibility that all or some combination of these
negative factors could cause the contraction in
economic activity to last longer or be more
serious than is currently anticipated.
Nonetheless, several elements appear to be
moving into place that should enhance prospects
for recovery. On balance, when these positive
forces are weighed with the negatives, the scales
appear to tip slightly in favor of suggesting that
the current downturn might well prove milder
than most of the recessions in the past forty
years.
One important factor on the positive side of the
outlook is the sharp drop in petroleum prices that
accompanied the military flare-up in the Gulf.
The price of gasoline by late February apparently
was back to its late-July level; the cost of home
302
Federal Reserve Bulletin • May 1991
heating oil should retreat further as well in coming months. While the secondary effects of the
cutbacks in employment and income are still
running their course, the relief from lower energy
prices, along with a potential boost to confidence
from the end of the Gulf war, should be laying the
groundwork for some firming in consumer spending in coming months.
Indeed, in the days after the termination of
hostilities, the anecdotal reports of increased
traffic in real estate offices and auto showrooms
raise the possibility that stronger consumer demand may be emerging. But, I would caution that
such early signals can be quite difficult to read,
particularly at this time of the year. Typically,
sales of houses and autos surge in March. For
example, as the weather improves, sales of new
and existing homes register their sharpest monthto-month gains between February and March—
jumps of 35 percent and 25 percent respectively.
The usual over-the-month pickup in domestic car
sales also is sizable (almost 19 percent). What is
difficult to judge from the very recent reports is
how much more than the seasonal rise, if any, is
occurring as psychology improves. Hard economic data for the period after the successful
ground war will not be available for some weeks.
Another important influence that is expected
to provide support for economic activity as the
year progresses is the decline in interest rates,
which began a year and a half ago but was
especially sharp in the past few months. Since
late October, when the budget accord was
reached and economic activity showed clear
signs of weakening, the Federal Reserve has
moved aggressively in a series of actions to ease
money market conditions. Because a lessening of
cost pressures has improved the outlook for
prices, the easing of policy has been possible
without raising new concerns in financial markets
about inflation prospects. Such concerns could
have had adverse consequences for the foreign
exchange value of the dollar and for longer term
interest rates.
But, in the prevailing circumstances, the substantial drop in short-term market rates was
accompanied by a net decline in long-term rates
as well. In particular, fixed-rate mortgage interest rates are near their lowest levels since the late
1970s, and the resulting improvement in the
aflfordability of single-family housing eventually
should show through in a pickup in sales and
homebuilding. Other sectors also are expected to
respond to lower financing costs as the year
progresses. Although interest rates have risen a
bit in recent weeks, this rise should not materially interfere with an upturn in activity. The
increase seems to reflect new optimism about the
prospects for the U.S. economy as the Gulf war
has come to a successful conclusion. Indeed,
yields on non-investment-grade bonds actually
declined in response to that expectation.
Since the onset of the recession last year, the
areas of greatest concern in the economy have
been those areas related to domestic spending
because it has been in those sectors—consumption, homebuilding, nonresidential construction,
and business inventory investment—that the
dropoff in activity has been most pronounced.
Nonetheless, it is also important to consider how
domestic production has been affected by trends
in exports and imports in recent months and to
assess prospects for sustained stimulus from net
exports.
Viewed at the manufacturing level, the sources
of changes in production can be examined by
combining monthly data on factory output, inventories, and sales with data on international
trade flows. A comparison of the six-month period before the downturn in industrial activity
last October and the four months of contraction
through January offers some interesting results.
In the six months before the downturn, manufacturing production was rising at an annual rate
of about 2¥i percent, boosted considerably by a
recovery in motor vehicle assemblies from the
very low levels earlier in the year. Domestic
demand for business equipment and for industrial
materials also was relatively robust, although
rising imports drained some of that strength away
from domestic producers. At the same time,
export demand was providing little impetus to
manufacturing production. The slowdown in exports of industrial goods marked a sharp departure from the trend over the preceding four
years, when the share of exports in our factory
output rose 5 percentage points to 133/4 percent.
However, since the peak in industrial production last September, the situation has reversed.
Between last September and this January, there
Statements to the Congress
has been a resumption of growth in foreign
demand for U.S.-manufactured goods and a reduction in domestic demand for imported manufactured products and materials, including oil.
For example, imports as a proportion of our
overall domestic demand for manufactured
goods stabilized late last year. When combined
with rising exports, net imports of industrial
goods as a proportion of manufacturing production declined from about AVA percent late last
summer to less than 4 percent at the turn of the
year. These developments have cushioned the
steep declines that have occurred as production
has responded unusually promptly to the weakness in the domestic economy. Cutbacks in domestic purchases and inventory holdings of a
wide range of domestically manufactured consumer goods, business equipment, construction
supplies, and industrial materials have more than
accounted for the drop of almost 4 percent (not
annualized) in manufacturing industrial production between September and January.
The brisk expansion in nonagricultural merchandise exports late last year occurred in a
variety of industrial supplies and materials, as
well as in consumer goods and many types of
capital equipment. The sharpest gains were in
shipments destined for countries in Western Europe. This increase in export growth came despite a weakening of activity in several of our key
markets abroad, and it undoubtedly reflected the
gains in U.S. international price competitiveness
that had been building for some time.
As a result of the decline in the foreign exchange value of the dollar and only moderate
increases in U.S. export prices, the average price
of U.S. exports measured in terms of foreign
currencies has fallen nearly 15 percent since
mid-1989; at the same time, the prices of goods
produced abroad have been rising. In the past,
such gains in U.S. price competitiveness have
led to significant growth in our exports, and if the
recent improvement is sustained, continued expansion of U.S. exports would seem to be in
train. Even if growth abroad were to slow somewhat, an increasing share of foreign markets
would provide considerable support for our exports.
Of course, the prospects for sustained strong
growth in our exports of goods and services
303
depend importantly on the outlook for economic
activity among our trading partners as well.
Among the major foreign industrial countries,
significant divergences in economic performance
emerged last year and are likely to continue this
year. Canada and the United Kingdom both
moved into recession in 1990, and signs of a
turnaround in both cases are not yet evident.
In contrast to the weakness in those two
countries, activity remains vigorous in Germany,
where the stimulus of reunification between East
and West Germany has produced rapid real
growth and has sustained very high rates of
utilization in industry in the western region.
Indeed, the continued strength of aggregate demand in Germany has been a major cause of
recent upward movements in German interest
rates. In Japan, despite some indications of a
moderation in economic growth, prospects for a
continued expansion are still favorable. On balance, it is quite possible that growth among our
major industrial trading partners will strengthen
somewhat later this year, particularly if those
countries experiencing recession start to recover.
Among developing countries, recent economic
performance has been uneven as well. Mexico
continues to achieve success in maintaining
growth while pursuing economic reforms. However, in other Western Hemisphere countries,
slowdown or even recession has accompanied
current programs aimed at macroeconomic stabilization. The crisis in the Persian Gulf has
disrupted output for some Middle East countries
but has permitted other developing-country exporters of oil to expand. In the period ahead, the
reconstruction in the Middle East is likely to
provide a significant boost to the exports of the
United States and of several other industrial
countries. Indeed, U.S. firms already are contracting to begin work in Kuwait as soon as
circumstances permit.
The Gulf war has been overshadowing developments elsewhere, particularly in Europe, and
in the sphere of international trade negotiations;
these factors have potentially important implications for both the U.S. economy and the economies of our major trading partners. As the Western European economies move closer to the 1992
single internal market, they will benefit from
304
Federal Reserve Bulletin • May 1991
structural adjustment and increased competition.
A stronger, more vibrant European economy in
the long run will be a more vigorous trading
partner for the U.S. economy. In addition, progress in the historic transformation of the economies of Eastern Europe can be expected to lead
to new opportunities for U.S. producers of consumer and capital goods. As these economies
become more fully integrated into the world
trading order, they will broaden opportunities for
two-way trade with mutual benefits to all.
The focus on our export prospects highlights
the importance of a successful conclusion to the
Uruguay Round of trade negotiations. Indeed,
the costs of a failure of that effort could be
serious. We all would lose opportunities to
strengthen trade flows and realize efficiencies
that could enhance standards of living worldwide. It certainly would be unfortunate if, instead, moves toward protectionism elicited retaliation, which would have particularly adverse
consequences for U.S. producers just when their
competitive position is so strong.
Taken together, the favorable factors at work
abroad and the stimulative forces in train in the
domestic economy suggest the likelihood of a
pickup in aggregate demand over coming
months. And, with inventories relatively lean at
most businesses, a recovery in demand should
show through fairly promptly in a higher level of
production.
Our monetary policy objective for 1991 is to
promote economic recovery and to sustain
growth at a rate that is consistent with progress
over time toward price stability. Whether further
adjustments to policy will be required to foster an
upturn in output and employment is not yet clear.
Any decision in that regard will depend on how
trends in real activity, inflation, and the monetary aggregates unfold.
FISCAL POLICY
CONSIDERATIONS
Until clear signs of a recovery in economic
activity emerge, fiscal policymakers are likely to
remain under persistent pressure to take actions
to offset other contractionary forces. Concerns
about the appropriateness of maintaining a policy
of fiscal restraint during a period of weak eco-
nomic performance are understandable. However, they must be balanced against the benefits
that will flow from adhering to a budget strategy
that is geared to the longer-run needs of the
economy. Those needs can best be met by keeping the underlying or "structural" deficit firmly
on a downward path, even as the actual deficit is
being swollen temporarily by the effects of a
weak economy.
In light of these considerations, voting to suspend the enforcement provisions of the budget
reconciliation act would be a mistake. Together
with the Administration, you worked long and
hard last year to reach an acceptable package of
tax and spending changes and budget process
reforms. The budget agreement gave financial
markets some assurance of stability and of future
easing of federal credit demands. Undercutting
this commitment now risks adverse effects on
long-term interest rates and thus might well be
self-defeating.
The new budget procedures make it easier than
under the previous Gramm-Rudman-Hollings
procedures for fiscal policy to have a stabilizing
effect on the economy. Among other things,
because the focus over the next several years is
on the reduction in the deficit brought about by
legislative action, rather than the level of the
deficit per se, the need for policy adjustments to
offset the effects of changes in economic conditions has been eliminated. As a consequence, the
automatic stabilizers that are in place can function as intended.
Moreover, the historical evidence on the implementation of discretionary countercyclical fiscal policy is not encouraging. In the past, programs designed to stimulate the economy during
a contraction frequently did not come on stream
until well after the recovery was under way. If
assessments of prospects for a turnaround in the
economy this year are on target, the adoption of
new programs now may only end up repeating
that pattern.
The military operations in the Gulf will cause
some unplanned addition to spending in the current fiscal year. Defense purchases already have
been raised somewhat by the war, and, as weapons are replaced, the new production will boost
GNP. Current estimates suggest that a substantial part of the incremental expense ultimately
Statements to the Congress
305
will be paid by other nations, cushioning the
effect on the budget deficit. Moreover, it is
important to bear in mind that the successful
conclusion of the Gulf war now ensures that
these expenditures will be limited, with only
minimal consequences for the thrust of longerterm fiscal policy.
On the whole, the budget accord provides a
useful framework for conducting fiscal policy
over the longer run. It provides sufficient flexibility for specific tax and spending policies to
be altered, if deemed desirable, to improve
economic incentives or to reset priorities. Such
specific changes in fiscal policy tools are possible while still moving along a steady path
toward fiscal balance. That path promises to
improve prospects for increased capital accumulation and higher productivity. It will complement monetary policy in the attainment of
the nation's overall economic objectives for the
longer run.
•
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve System,
before the Joint Economic Committee,
U.S.
Congress, March 13, 1991.
reduced cost pressures on prices and provided
scope for a further easing of monetary policy last
Friday. The combination of lower interest rates,
the reduction in oil prices, and the resolution of
the situation in the Gulf continue, on balance, to
suggest an upturn in real activity later this year,
in line with the "central tendency" forecast of
the Federal Open Market Committee (FOMC)
members and other Reserve Bank presidents that
we presented a month ago.
In discussing those projections, we stressed
the extent to which uncertainties associated both
with the situation in the Gulf and with several
unresolved problems in the economy made the
outlook unusually difficult to assess; to a somewhat lesser extent, that is still the case. Certainly, the successful end to the hostilities in the
Gulf has removed a troublesome uncertainty and
should provide some lift to consumer and business confidence. But the other factors that we
noted earlier—concerns about credit availability
and problems in real estate markets—continue to
restrain activity and to weigh importantly on
business thinking.
The restraint on credit availability at depository institutions represents a continuing clear
risk to the outlook and, therefore, is a critical
challenge for policy. To date, our assessment is
that reduced demand for credit stemming from
the decline in real activity accounts for most of
the recent weakness in bank lending. Nonetheless, developments on the supply side also have
had a noticeable effect. The surveys of senior
loan officers that are conducted by the Federal
Reserve at three-month intervals have shown
progressive tightening of business credit terms
I am pleased to have the opportunity to appear
before you again. As you know, the Federal
Reserve's semiannual "Monetary Policy Report
to the Congress" and testimony, which were
submitted to the Congress last month, provided
an extensive review of recent and prospective
economic developments and of monetary policy
actions and intentions. 1 Rather than take you
through the details of that report this morning, I
would like, first, to focus on a few of the most
critical considerations affecting the outlook for the
economy and the formulation of monetary policy
and, then, to turn briefly to budgetary issues.
THE ECONOMIC OUTLOOK AND
MONETARY POLICY
The recently available readings on business activity indicate that the economic contraction that
began during the latter part of 1990 continued
through February. The economic data of the past
few weeks also included further indications of
1. See "Monetary Policy Report to the Congress," Federal
Reserve Bulletin, vol. 77 (March 1991), pp. 147-64 and
"Statement by Alan Greenspan, Chairman, Board of Governors of the Federal Reserve System, before the Committee
on Banking, Housing, and Urban Affairs, U.S. Senate, February 20, 1991," Federal Reserve Bulletin, vol. 77 (April
1991), pp. 240-46.
306
Federal Reserve Bulletin • May 1991
since last spring. Banks report that they have
been applying more stringent credit standards
and have made the price and nonprice terms of
business credit less favorable to a wide range of
customers.
Several factors underlie these changes in lending practices. Given the uncertain economic environment, banks are appropriately taking a
closer look at prospective borrowers in some
specific industries. But what is of most concern
to us is restraint on lending by commercial bankers to otherwise creditworthy customers. For
borrowers whose riskiness has been essentially
unaffected by the recession or by developments
in specific markets, the reluctance of banks to
lend seems to arise from attempts to bolster
capital positions. Banks are trying to raise capital-asset ratios, or at least hold down declines in
those ratios that might result from losses on
outstanding loans. In some cases, loan losses and
pressures on capital may be exacerbated by the
degree to which examination standards are forcing loans to be written down inappropriately or
by market reaction to aggregated data on problem credits on certain categories of loans.
Information from our surveys and estimates of
funds supplied in financial markets indicate that
the majority of those borrowers who have been
turned away or who have been discouraged from
borrowing at depository institutions have been
able to find financing elsewhere. But one must
assume that the alternatives, when they exist, are
only available at a higher price. The problems of
locating other sources of credit may be especially
severe for some types of borrowers—small businesses and those in commercial real estate, for
instance—who may not have ready access to
securities markets. How much production has
been lost as a result of sound projects cut back or
unable to go forward because of a rise in financing costs or because of an actual or feared
lack of financing is difficult to assess. But it is
clear that the restraint on credit availability,
along with the deterioration in profits, began to
enter importantly in business decisionmaking
even before the onset of the recession.
Several steps that should relieve constraints on
credit supplies have been taken by the Federal
Reserve. These steps include lowering interest
rates, reducing reserve requirements, and work-
ing with other depository supervisory agencies to
identify and correct practices that may be unnecessarily discouraging the flow of funds to creditworthy borrowers. Taken together, these steps
may well prove sufficient to foster the growth of
credit needed to finance economic expansion.
But we recognize the risk that problems in this
area could persist and could warrant further
actions.
Another clear negative in the outlook remains
the real estate sector, whose problems have
exacerbated the difficulties of financial institutions. In the commercial sector, the overhang of
vacant space is still substantial, implying that
further declines in new construction will probably occur, even during a period of renewed
economic growth. Beyond the impact on new
construction, the existence of a sizable stock of
underused properties whose asset values have
declined has repercussions for financial institutions that are carrying them on their balance
sheets.
The most notable feature of the current downturn has been the marked erosion of business
attitudes and consumer confidence that occurred
after July. In the business sector, the clearest
manifestation of the deterioration in attitudes
was the rapidity with which producers moved to
cut output and to pare inventories in response to
actual or anticipated weakness in sales. Judging
from readings of anticipated hiring, inventory
accumulation, and capital spending, businesses
remained in this cautious stance early this year,
awaiting firm indications of the timing and
strength of any recovery in demand.
Consumer confidence also registered an unprecedented plunge between July and October
last year, which probably was an element depressing business expectations for sales. Such a
decline in sentiment also might have been expected to result in a rise in precautionary saving.
But, income growth also was depressed, and
when the sudden rise in oil prices forced households to devote a significantly higher share of
their disposable income to energy bills, both
saving and spending, in real terms, were cut back
sharply.
It would be most unwise to ignore the possibility that all or some combination of these
negative factors could cause the contraction in
Statements to the Congress
economic activity to last longer or be more
serious than is currently anticipated.
Nonetheless, several elements appear to be
moving into place that should enhance prospects
for recovery. On balance, when these positive
forces are weighed with the negatives, the scales
appear to tip slightly in favor of suggesting that
the current downturn might well prove milder
than most of the recessions in the past forty
years.
One important factor on the positive side of the
outlook is the sharp drop in petroleum prices that
accompanied the onset of the war in the Gulf.
The price of gasoline is back to its late-July level;
the cost of home heating oil should retreat further
as well in coming months. While the secondary
effects of the cutbacks in employment and income are still running their course, the relief
from lower energy prices, along with the apparent boost to confidence from the end of the Gulf
war, should be laying the groundwork for some
firming in consumer spending in coming months.
Indeed, in the days after the termination of
hostilities, the anecdotal reports of increased
traffic in real estate offices and auto showrooms
raise the possibility that stronger consumer demand may be emerging. But, I would caution that
such early signals can be quite difficult to read,
particularly at this time of the year. Typically,
sales of houses and autos surge in March. For
example, as the weather improves, sales of new
and existing homes register their sharpest monthto-month gains between February and March—
jumps of 35 percent and 25 percent respectively.
The usual over-the-month pickup in domestic car
sales also is sizable (almost 19 percent). What is
difficult to judge from the very recent reports is
how much more than the seasonal rise, if any, is
occurring as psychology improves. Hard economic data for the period after the successful
ground war will not be available for some weeks.
Another important influence that is expected
to provide support for economic activity as the
year progresses is the decline in interest rates,
which began more than a year and a half ago but
was especially sharp in the past few months.
Since late October, when the budget accord was
reached and economic activity showed clear
signs of weakening, the Federal Reserve has
moved aggressively in a series of actions to ease
307
money market conditions. Because a lessening of
cost pressures has improved the outlook for
prices, the easing of policy has been possible
without raising new concerns in financial markets
about inflation prospects. Such concerns could
have had adverse consequences for the foreign
exchange value of the dollar and for long-term
interest rates.
But, in the prevailing circumstances, the substantial drop in short-term market rates was
accompanied by a net decline in long-term rates
as well. In particular, fixed-rate mortgage interest rates are near their lowest levels since the late
1970s, and the resulting improvement in the
affordability of single-family housing eventually
should show through in a pickup in sales and
homebuilding. Other sectors also are expected to
respond to lower financing costs as the year
progresses. Although long-term interest rates
have risen a bit in recent weeks, this rise should
not materially interfere with an upturn in activity. The increase seems to reflect new optimism
about the prospects for the U.S. economy as the
Gulf war has come to a successful conclusion.
Indeed, yields on non-investment-grade bonds
actually declined in response to that expectation.
Since the onset of the recession last year, the
areas of greatest concern in the economy have
been those areas related to domestic spending,
because it has been in those sectors—consumption, homebuilding, nonresidential construction,
and business inventory investment—that the
dropoff in activity has been most pronounced.
Nonetheless, it is also important to consider how
domestic production has been affected by trends
in exports and imports in recent months and to
assess prospects for sustained stimulus from net
exports.
Viewed at the manufacturing level, the sources
of changes in production can be examined by
combining monthly data on factory output, inventories, and sales with data on international
trade flows. A comparison of the six-month period before the downturn in industrial activity
last October and the four months of contraction
through January offers some interesting results.
In the six months before the downturn, manufacturing production was rising at an annual rate
of about 2Vi percent, boosted considerably by a
recovery in motor vehicle assemblies from the
308
Federal Reserve Bulletin • May 1991
very low levels earlier in the year. Domestic
demand for business equipment and for industrial
materials also was relatively robust, although
rising imports drained some of that strength away
from domestic producers. At the same time,
export demand was providing little impetus to
manufacturing production. The slowdown in exports of industrial goods marked a sharp departure from the trend over the preceding four
years, when the share of exports in our factory
output rose 5 percentage points to 133/4 percent.
However, since the peak in industrial production last September, the situation has reversed.
Between last September and this January, there
has been a resumption of growth in foreign
demand for U.S.-manufactured goods and a reduction in domestic demand for imported manufactured products and materials, including oil.
For example, imports as a proportion of our
overall domestic demand for manufactured
goods stabilized late last year. When combined
with rising exports, net imports of industrial
goods as a proportion of manufacturing production declined from about 4lA percent late last
summer to less than 4 percent at the turn of the
year. These developments have cushioned the
steep declines that have occurred as production
has responded unusually promptly to the weakness in the domestic economy. Cutbacks in domestic purchases and inventory holdings of a
wide range of domestically manufactured consumer goods, business equipment, construction
supplies, and industrial materials have more than
accounted for the drop of almost 4 percent (not
annualized) in manufacturing industrial production between September and January.
The brisk expansion in nonagricultural merchandise exports late last year occurred in a
variety of industrial supplies and materials, as
well as in consumer goods and many types of
capital equipment. The sharpest gains were in
shipments destined for countries in Western Europe. This increase in export growth came despite a weakening of activity in several of our key
markets abroad, and it undoubtedly reflected the
gains in U.S. international price competitiveness
that had been building for some time.
As a result of the decline in the foreign exchange value of the dollar and only moderate
increases in U.S. export prices, the average price
of U.S. exports measured in terms of foreign
currencies has fallen nearly 15 percent since
mid-1989; at the same time, the prices of goods
produced abroad have been rising. In the past,
such gains in U.S. price competitiveness have
led to significant growth in our exports, and if the
recent improvement is sustained, continued expansion of U.S. exports would seem to be on
track. Even if growth abroad were to slow somewhat, an increasing share of foreign markets
would provide considerable support for our exports.
Of course, the prospects for sustained strong
growth in our exports of goods and services
depend importantly on the outlook for economic
activity among our trading partners as well.
Among the major foreign industrial countries,
significant divergences in economic performance
emerged last year and are likely to continue this
year. Canada and the United Kingdom both
moved into recession in 1990, and signs of a
turnaround are not yet evident in either case.
In contrast to the weakness in those two
countries, activity remains vigorous in Germany,
where the stimulus of reunification between East
and West Germany has produced rapid real
growth and has sustained very high rates of
utilization in industry in the western region.
Indeed, the continued strength of aggregate demand in Germany has been a major cause of
recent upward movements in German interest
rates. In Japan, despite some indications of a
moderation in economic growth, prospects for a
continued expansion are still favorable. On balance, it is quite possible that growth among our
major industrial trading partners will strengthen
somewhat later this year, particularly if those
countries experiencing recession start to recover.
Among developing countries, recent economic
performance has been uneven as well. Mexico
continues to achieve success in maintaining
growth while pursuing economic reforms. However, in other Western Hemisphere countries,
slowdown or even recession has accompanied
current programs aimed at macroeconomic stabilization. The crisis in the Persian Gulf has
disrupted output for some Middle East countries
but has permitted other developing-country exporters of oil to expand. In the period ahead, the
Statements to the Congress
reconstruction in the Middle East is likely to
provide a significant boost to the exports of the
United States and of several other industrial
countries.
The Gulf war has been overshadowing developments elsewhere, particularly in Europe, and
in the sphere of international trade negotiations;
these factors have potentially important implications for both the U.S. economy and the
economies of our major trading partners. As the
Western European economies move closer to
the 1992 single internal market, they will benefit
from structural adjustment and increased competition. A stronger, more vibrant European
economy in the long run will be a more vigorous
trading partner for the U.S. economy. In addition, progress in the historic transformation of
the economies of Eastern Europe can be expected to lead to new opportunities for U.S.
producers of consumer and capital goods. As
these economies become more fully integrated
into the world trading order, they will broaden
opportunities for two-way trade with mutual
benefits to all.
The focus on our export prospects highlights
the importance of a successful conclusion to the
Uruguay Round of trade negotiations. Indeed,
the costs of a failure of that effort could be
serious. We all would lose opportunities to
strengthen trade flows and realize efficiencies
that could enhance standards of living worldwide. It certainly would be unfortunate if, instead, moves toward protectionism elicited retaliation, which would have particularly adverse
consequences for U.S. producers just when their
competitive position is so strong.
Taken together, the favorable factors at work
abroad and the stimulative forces in train in the
domestic economy suggest the likelihood of a
pickup in aggregate demand over coming
months. And, with inventories relatively lean at
most businesses, a recovery in demand should
show through fairly promptly in a higher level of
production.
Our monetary policy objective for 1991 is to
promote economic recovery and to sustain
growth at a rate that is consistent with progress
over time toward price stability. Whether further
adjustments to policy will be required to foster an
upturn in output and employment is not yet clear.
309
Any decision in that regard will depend on how
trends in real activity, inflation, and the monetary aggregates unfold.
FISCAL POLICY
CONSIDERATIONS
Until clear signs of a recovery in economic
activity emerge, fiscal policymakers are likely to
remain under persistent pressure to take actions
to offset other contractionary forces. Concerns
about the appropriateness of maintaining a policy
of fiscal restraint during a period of weak economic performance are understandable. However, they must be balanced against the benefits
that will flow from adhering to a budget strategy
that is geared to the longer-run needs of the
economy. Those needs can best be met by keeping the underlying or "structural" deficit firmly
on a downward path, even as the actual deficit is
being swollen temporarily by the effects of a
weak economy.
In light of these considerations, voting to suspend the enforcement provisions of the budget
reconciliation act would be a mistake. Together
with the Administration, you worked long and
hard last year to reach an acceptable package of
tax and spending changes and budget process
reforms. The budget agreement gave financial
markets some assurance of stability and of a
future easing of federal credit demands. Undercutting this commitment now risks adverse effects on long-term interest rates and thus might
well be self-defeating.
The new budget procedures make it easier than
under the previous Gramm-Rudman-Hollings
procedures for fiscal policy to have a stabilizing
effect on the economy. Among other things,
because the focus over the next several years is
on the reduction in the deficit brought about by
legislative action, rather than the level of the
deficit per se, the need for policy adjustments to
offset the effects of changes in economic conditions has been eliminated. As a consequence, the
automatic stabilizers that are in place can function as intended.
Moreover, the historical evidence on the implementation of discretionary countercyclical fiscal
policy is not encouraging. In the past, programs
designed to stimulate the economy during a con-
310
Federal Reserve Bulletin • May 1991
traction frequently did not come on stream until
well after the recovery was under way. If assessments of prospects for a turnaround in the economy this year are on target, the adoption of new
programs now may only end up repeating that
pattern.
The military operations in the Gulf will cause
some unplanned addition to spending in the current fiscal year. Defense purchases already have
been raised somewhat by the war, and, as weapons are replaced, the new production will boost
GNP. Current estimates suggest that a substantial
part of the incremental expense ultimately will be
paid by other nations, cushioning the effect on the
budget deficit. Moreover, it is important to bear in
mind that the successful conclusion of the Gulf
war now ensures that these expenditures will be
limited, with only minimal consequences for the
longer-term thrust of fiscal policy.
On the whole, the budget accord provides a
useful framework for conducting fiscal policy.
It provides sufficient flexibility for specific tax
and spending policies to be altered, if deemed
desirable, to improve economic incentives or to
reset priorities. Such specific changes in fiscal
policy tools are possible while still moving
along a steady path toward fiscal balance. That
path promises to improve prospects for increased capital accumulation and higher productivity. It will complement monetary policy
in the attainment of the nation's overall economic objectives for the longer run.
•
311
Announcements
POLICY TO REDUCE IMPEDIMENTS
TO LENDING BY BANKS AND
THRIFT INSTITUTIONS
TO CREDITWORTHY BORROWERS
A series of supervisory steps designed to reduce
impediments to lending by banks and thrift institutions to creditworthy borrowers was announced
on March 1, 1991, by the federal bank and thrift
supervisors. The agencies issuing a statement on
the changes are the Office of the Comptroller of
the Currency, the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the
Office of Thrift Supervision.
In announcing the changes, the agencies said
that the intent of this effort is to contribute to a
climate in which banks and thrift institutions will
make loans to creditworthy borrowers and work
constructively with borrowers experiencing financial difficulties in ways that are consistent
with safe and sound banking practices.
The joint policies clarify that the supervisory
evaluation of real estate loans is based on the
ability of the collateral to generate cash flow over
time, not on its immediate liquidation value;
these policies encourage banks to disclose additional information about nonaccrual loans, to
make sound loans to creditworthy borrowers,
and to facilitate the workout of problem loans.
The agencies are also considering the merits of
proposed guidelines that address the accrual of
income on certain loans that have been partially
charged off. The agencies and the Securities and
Exchange Commission (SEC) will both solicit
public comment on the proposed guidelines. Any
formal guidance issued will be based on the
comments received from the public and ongoing
discussions between the agencies and the SEC.
The supervisory statements and clarifications
will be sent to field examiners and supervisory
personnel.
REGULATION P:
REVISIONS
The Federal Reserve Board announced on March
25, 1991, revisions to Regulation P (Minimum
Security Devices and Procedures for Federal
Reserve Banks and State Member Banks). The
revisions become effective May 1, 1991.
The revisions update the current rules adopted
in 1969, simplify and clarify the rule's existing
areas of flexibility, eliminate many obsolete or
technical requirements, particularly those in appendix A, and delete references to required reports after elimination of reporting requirements
in this area by the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989.
The revisions do not otherwise substantively
change the regulation, which is already relatively
brief and flexible, and add no new regulatory
burden.
PROPOSED ACTIONS
The Federal Reserve Board issued for public
comment on March 6, 1991, proposed enhancements to certain Federal Reserve Bank services
and proposed new services related to checks not
collected through the Federal Reserve. Comments are due by June 28, 1991.
CHANGES IN BOARD
STAFF
The Board of Governors announced on March
28, 1991, the appointment of Kathleen M. O'Day
to the official staff as Assistant General Counsel.
She will assist the Legal Division on international
banking issues, including managing cases arising
under the International Banking Act and the
Bank Holding Company Act.
312
Federal Reserve Bulletin • May 1991
In addition, the Board of Governors announced the promotion of Scott G. Alvarez from
Assistant General Counsel to Associate General
Counsel. Mr. Alvarez will continue to be responsible for the Banking Structure Program in the
Legal Division.
Ms. O'Day joined the Board's staff in 1978 as
an attorney. She was promoted to Senior Counsel in 1983. Ms. O'Day holds a B.A. from Assumption College and a J.D. from Boston College
Law School.
ANNUAL REPORT:
PUBLICATION
The 77th Annual Report, 1990, of the Board of
Governors of the Federal Reserve System, covering operations for the calendar year 1990, is
available for distribution. Copies may be obtained on request to Publications Services,
Board of Governors of the Federal Reserve
System, Washington, D.C. 20551. A separately
printed companion document, entitled Annual
Report: Budget Review, 1990-91, describes the
budgeted expenses of the Federal Reserve System for 1991 and compares them with expenses
for 1989 and 1990; it is also available from
Publications Services.
ANNUAL STATISTICAL DIGEST, 1 9 8 0 - 8 9 :
PUBLICATION
The Annual Statistical Digest, 1980-89 is now
available. This ten-year Digest is designed as a
compact source of economic, and especially financial, data. The Digest provides a single
source of historical continuations of the statistics
carried regularly in the Federal Reserve Bulletin.
This issue of the Digest covers 1980-89. It
serves to maintain the historical series first published in Banking and Monetary Statistics, 19411970, and the Digest for 1970-79 and yearly
issues thereafter. A Concordance of Statistics
will be included with all orders. The Concordance provides a guide to tables that cover the
same material in the previous two years' issues
of the Digest, the ten-year Digest for 1980-89,
and the Bulletin.
Copies of the Digest at $25.00 each are available from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
313
Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON FEBRUARY
5-6,1991
1. Domestic Policy Directive
The information reviewed at this meeting suggested
that economic activity had weakened further. A
persisting low level of consumer confidence, related
partly to the uncertainties surrounding the Persian
Gulf situation, and reduced real disposable incomes
continued to depress consumer demand; and business investment spending, especially for structures,
remained in a downtrend. With businesses attempting to maintain tight control over inventories as
demand weakened, industrial production and nonfarm payroll employment had declined sharply.
Broad measures of prices indicated some moderation
of inflation toward the end of 1990, largely as a
result of lower energy prices. The latest data
suggested some deceleration in wages and overall
labor costs.
Total nonfarm payroll employment fell sharply in
January, and a larger drop than previously reported
was now indicated for December. The contraction in
employment in January was especially heavy in the
construction sector, only partly reflecting unseasonably wet weather in some sections of the country,
and widespread job losses were registered in
manufacturing, notably in durable goods. The
civilian unemployment rate edged higher in January
to 6.2 percent.
Industrial output declined markedly in the fourth
quarter, and partial data suggested a further drop for
January. A sizable portion of the reduction reflected
cutbacks in the production of motor vehicles, but
output also was down in most other industries.
Declines in production were especially large for
computers, construction supplies, and a wide range
of non-auto consumer durables. Capacity utilization
in manufacturing continued to fall in December; in
most industries, operating rates were down substantially from their recent peaks and from their longerrun averages.
Partly reflecting lackluster sales during the holiday
season, consumer spending in real terms was soft in
the fourth quarter. Outlays for goods were considerably below the levels seen earlier in the year, and
while spending for services rose further, the fourthquarter gain was well below that recorded in previous
quarters. Total private housing starts declined
substantially further in the fourth quarter; sales of
new homes remained weak through year-end, and
home prices continued to slip.
Shipments of nondefense capital goods were about
unchanged in the fourth quarter. Aircraft purchases
remained at the robust third-quarter level, while
business outlays for motor vehicles dropped sharply
after a third-quarter spike in fleet sales. Outside the
transportation sector, equipment spending advanced
appreciably, mainly reflecting strong increases in
spending for computers. New orders for business
equipment pointed to a softening in spending for
such goods in coming months. Available data
indicated that nonresidential construction activity
fell sharply in the fourth quarter. In a period of weak
sales, total manufacturing and trade inventories,
measured on a constant-cost basis, increased a little
further on balance over October and November, and
the ratio of stocks to sales rose only slightly,
reflecting strong efforts by businesses to keep
inventories in line with sales.
In the October-November period, strong exports
cushioned to some extent the drop in production and
output in the United States; nonagricultural exports
were up substantially over the third-quarter average,
with substantial increases recorded in all major trade
categories except aircraft and computers. Despite
the strength in exports, the nominal U.S. merchandise trade deficit for the two months combined was at
a higher rate than in the third quarter because of
rising oil prices, which brought a sharp increase in
the value of oil imports. Growth in most major
foreign industrial countries appeared to have slowed
somewhat in the fourth quarter. In many of these
countries, lower oil prices late in the year had
brought some moderation in consumer price
inflation.
314
Federal Reserve Bulletin • May 1991
In December, a sizable decline in producer prices
of finished goods more than offset the November
rise, as prices of both food and energy products
moved sharply lower. For other finished goods,
producer prices increased in the fourth quarter at
about the moderate pace evident in the three previous
quarters. Lower oil prices and a slowing in food
price increases also damped the rise in consumer
prices in December. Excluding the food and energy
components, consumer inflation was a little lower
on balance in November and December than in
earlier months of 1990. Total compensation costs of
private industry workers rose more slowly in the
fourth quarter and also increased a bit less for the
year than in 1989.
At its meeting on December 18, the Committee
adopted a directive that called for an initial slight
reduction in the degree of pressure on reserve
positions and for giving particular weight to potential
developments that might require some further easing
later in the intermeeting period. To reflect the tilt
toward further easing, the directive indicated that,
subsequent to the initial move, somewhat lesser
reserve restraint would be acceptable, or slightly
greater reserve restraint might be acceptable, during
the intermeeting period depending on progress
toward price stability, the strength of the business
expansion, the behavior of the monetary aggregates,
and developments in foreign exchange and domestic
financial markets. The Committee also noted that
open market operations might need to take account
of a possible reduction in the discount rate early in
the intermeeting period. The contemplated reserve
conditions were expected to be consistent with
expansion of M2 and M3 over the period from
November through March at annual rates of about 4
and 1 percent respectively.
Immediately after the Committee meeting, the
Board of Governors approved a reduction in the
discount rate from 7 to 6V2 percent; afterwards,
open market operations were directed at allowing
part of this decline to show through to short-term
interest rates more generally. Another easing step
was taken in early January in response to weak
money growth and considerable softness in the
economy. Subsequently, on February 1, the Board
approved a further reduction in the discount rate to
6 percent; this action was taken in response to
indications that economic activity was slackening
further, growth in money and credit continued
sluggish, and inflation pressures were abating. In
this instance, open market operations permitted the
full reduction in the discount rate to be reflected in
money market rates. Adjustment plus seasonal
borrowing fluctuated widely over the intermeeting
period; borrowing was well above expected levels
during much of the period as banks adapted to the
phase-out of the reserve requirement on nonpersonal
time deposits and net Eurocurrency liabilities; the
phase-out reduced required reserve balances to
levels that at times proved to be insufficient for the
clearing needs of many banks.
The federal funds rate averaged around 1XA percent just before the December meeting. Late in the
intermeeting period, after the two cuts in the discount
rate and the monetary easing through open market
operations, the federal funds rate averaged a little
above
percent. Over the intermeeting period,
however, the funds rate was unusually volatile; key
factors behind this volatility included the phase-out
of the nontransaction reserve requirement, balancesheet adjustments undertaken near year-end, and
some reserve projection misses near the ends of
maintenance periods. Other short-term interest rates
also fell considerably over the intermeeting period;
private money market rates declined more than
Treasury bill rates, reflecting a reduction in the
pronounced risk premiums that had been built into
private short-term rates ahead of year-end. Yields in
longer-term markets were unchanged to down
slightly, and broad indexes of stock prices rose
appreciably on balance over the period.
In foreign exchange markets, the trade-weighted
value of the dollar in terms of the other G-10
currencies advanced in the early part of the intermeeting period as market participants sought a safe
haven for their funds in the face of diminishing
prospects for a peaceful settlement in the Persian
Gulf region. The dollar also was buoyed, especially
against the German mark, by market perceptions
that political conditions were deteriorating in the
Soviet Union. The early successes of the Allied
forces in the Gulf war brought a reduction in safehaven demands, and the dollar began to decline in
the latter half of January. After an increase in the
German Bundesbank's official lending rates and the
reduction the next day in the Federal Reserve's
discount rate, the dollar dropped sharply. On
balance, the dollar was down somewhat over the
intermeeting period.
Record of Policy Actions of the Federal Open Market Committee 315
Growth of M2 remained sluggish in December
and January, running at a pace below the path
expected by the Committee; expansion of M3 picked
up in January from the very slow pace of previous
months. The continuing weakness in M2 despite an
appreciable narrowing in opportunity costs appeared to reflect in part heightened concerns about
the financial condition of many depository institutions in the wake of the closing of privately insured
banks and credit unions in Rhode Island and the
failure of the Bank of New England. For the year
1990, M2 and M3 grew at rates in the lower portions
of the Committee's ranges. Expansion of total
domestic nonfinancial debt appeared to have been
near the midpoint of its monitoring range for the
year.
The staff projection prepared for this meeting,
which was assembled against the background of the
outbreak of hostilities in the Persian Gulf region,
pointed to some further decline in economic activity
in the near term. The length and intensity of the war
was a matter of conjecture, but the projection was
based on the assumption that the war would end
within the next few months and would have little
further effect on world oil supplies and the level of
oil prices. The projection also assumed that constraints on the supply of credit would persist to some
degree through the rest of the year. In the near term,
concerns emanating from the war, reduced credit
availability, and financial fragility were expected to
continue to damp consumer and business confidence
and, by depressing private domestic demand, to
push manufacturing activity still lower. Subsequently, economic growth was expected to resume
in association with the support provided by further
gains in exports, the stimulative effects of sharp
declines in oil prices and short-term interest rates,
and some improvement in consumer and business
sentiment as the war drew to a close. Increases in
business orders and sales could be expected to bring
a prompt pickup in production, given lean inventories, and with some lag a rise in business spending
for investment goods other than commercial structures; severe problems of excess supply were
expected to inhibit any recovery in commercial
construction for an extended period. With oil prices
lower and some added slack expected in resource
utilization, the staff projected a slowing in the pace
of increases in prices and labor costs in coming
quarters.
In the Committee's review of economic developments, members commented that the outbreak of
war in the Persian Gulf region had heightened the
already substantial uncertainties bearing on the
outlook for the economy. A relatively mild recession
followed by a moderate upturn in economic activity
was still regarded as a reasonable expectation,
assuming that the war would not be prolonged and
that oil prices would remain at substantially reduced
levels. However, the risks clearly were on the
downside, and a very sluggish recovery or indeed a
deep and relatively long recession could not be ruled
out. Business and consumer confidence, a critical
factor underlying the economic outlook, already
was quite negative and was subject to further erosion
stemming from financial strains and credit constraints in the domestic economy as well as from
unpredictable developments in the Middle East. On
the positive side, members saw growing indications
of some moderation in underlying inflation pressures; and in light of the increasing slack in labor and
capital markets and the slower growth of money
over a period of years, they believed that considerable progress in reducing inflation was likely to be
made in the year ahead.
In conformance with the practice at meetings
when the Committee establishes its long-run ranges
for growth of the money and debt aggregates, the
Committee members and the Federal Reserve Bank
presidents not currently serving as members had
prepared projections of economic activity, the
unemployment rate, and inflation for the year 1991.
For the period from the fourth quarter of 1990 to the
fourth quarter of 1991, the forecasts for growth of
real GNP had a central tendency of % percent to
IV2 percent. These forecasts assumed an upturn in
economic activity later in the year and subsequent
expansion at a pace that was consistent with
continued progress toward price stability. Estimates
of the civilian rate of unemployment in the fourth
quarter of 1991 were concentrated in a range of 6V2
percent to 7 percent. On the assumption that oil
prices would remain near their recent levels and in
the context of reduced pressures on resources, all of
the members expected a sizable decline in the rate of
inflation from the pace in 1990; as measured by the
consumer price index, the central tendency of their
projections was in a range of 3 lA percent to 4 percent
for the year, compared with an actual rise of
6VA percent in 1990. Forecasts of growth in nominal
316
Federal Reserve Bulletin • May 1991
GNP had a central tendency of 3% percent to
5 V* percent.
In their comments about the prospects for business
activity, the members gave considerable attention to
the uncertainties and concerns that were exerting a
depressing effect on business and consumer confidence. The rapidly evolving situation in the Middle
East undoubtedly was contributing an element of
caution to spending plans, but the problems of many
financial institutions and the financial difficulties of
heavily indebted business firms and individuals were
adding to the generally somber economic climate.
Not only had financial problems affected attitudes,
but constraints on the availability of credit to many
borrowers with limited or no access to alternative
sources of financing were having a retarding effect
on business activity and could limit the vigor of the
expected expansion. Many financial problems were
the legacy of financial excesses of the past decade,
notably those associated with the financing of
speculative real estate ventures and highly leveraged
restructurings of business firms. While some
progress was being made in addressing such problems, a good deal of time undoubtedly would be
needed before many troubled lending institutions
again became important suppliers of new credit and
before many business firms were able to access
credit sufficient to support increases in spending.
Such financial difficulties were likely to have
continuing effects on business and consumer attitudes and to constrain business activity to some
extent even if there were a relatively prompt end to
the hostilities in the Middle East. Nonetheless,
members pointed to a number of promising developments bearing on the prospects for the economy,
notably the substantial declines that had occurred in
interest rates, including key long-term rates, the
sharp drop in oil prices, and the improved competitive position of U.S. businesses in world markets
stemming from the depreciation of the dollar.
Members also noted that despite the generally
negative sentiment in the business community and
among many consumers, the performance of the
stock market, including the shares of banking
organizations, had been surprisingly strong; while
such a development had to be interpreted with
caution in terms of its implications for future
business activity, it suggested that many investors
viewed the economic outlook with some degree of
optimism.
Turning to current and prospective developments
in different parts of the country and sectors of the
economy, members reported further indications of
some softening in business conditions in several
regions, including areas where business activity
previously had been relatively well maintained in
comparison with national trends. Much of the
weakness tended to be concentrated in manufacturing, primarily the production of motor vehicles and
associated inputs and of other durable goods, and in
construction. At the same time, however, there were
indications that business conditions were no longer
deteriorating in some areas and might indeed be
improving somewhat with attendant gains in local
business confidence. The outbreak of war seemed to
be having little effect thus far on overall domestic
manufacturing activity, though some firms were
reported to have increased their production of
defense-related goods.
The prospects for consumer spending remained
the key uncertainty in the outlook for overall economic activity. It was unclear at this point how
consumers would respond to unfolding developments in the Middle East. There were widespread
reports that retail sales had dropped sharply after the
outbreak of hostilities in mid-January, but that
development seemed to represent at least in part a
temporary reaction associated with the diversion of
attention to the reporting of military events. Indeed,
there were indications or at least expectations among
businessmen that consumer behavior would return
to a more normal pattern, though perhaps tending to
the weak side, in the period ahead. For the present,
however, consumer sentiment clearly remained
depressed, and many anxious consumers seemed
unwilling, or at least reluctant, to make discretionary
purchases. As a consequence business contacts,
such as those in the motor vehicles industry,
remained concerned about the outlook for sales at
least for the nearer term. Over time, the end of
hostilities in the Middle East would improve
consumer confidence, and the drop in oil prices, if
sustained, would have a positive effect on consumer
purchasing power.
A significant rebound in consumer spending was
likely to be followed fairly promptly by increased
production of consumer goods, given generally lean
business inventories, and with some lag by greater
output of producer equipment. At the same time,
construction activity would probably remain de-
Record of Policy Actions of the Federal Open Market Committee 317
pressed in light of the high vacancy rates in existing
commercial structures across the country and the
weakness in residential real estate markets in many
areas. Construction expenditures by state and local
governments also appeared likely to be restrained,
given the financial problems of many of these
governments, but members noted that some major
public works projects had been financed or were
under way in a few areas.
Members continued to anticipate further expansion in exports stemming importantly from the
nation's improved competitive position associated
with the substantial decline in the foreign exchange
value of the dollar. Views differed to some extent,
however, with regard to the strength and potential
contribution of the export sector to domestic economic activity. Some members stressed that relatively depressed economic conditions in a number of
major foreign industrial nations were likely to limit
U.S. exports to those countries. Moreover, developments in the Middle East already had curbed foreign
sales of some domestic goods, notably agricultural
products. At the same time, many manufacturing
firms continued to report receptive export markets,
and production for such markets was helping to
offset weakness in domestic demand. However, a
substantial further decline in the foreign exchange
value of the dollar would not be a welcome
development; such a decline, should it occur, might
well foster higher domestic bond yields and could
give rise to protectionist reactions abroad to the
detriment of further gains in U.S. exports.
With regard to the outlook for inflation, the
members saw favorable prospects for considerable
progress in the year ahead. There were growing
indications that the core rate of inflation would trend
down. Currently available statistics might not yet be
fully capturing the extent of the underlying improvement in inflation, though it already was clear that
some downward adjustment was occurring in the
crucial area of wages. With regard to future
prospects, several members stressed that the slowing
in monetary growth over a period of years was likely
to be reflected increasingly in lower inflation. The
slack in labor and capital resources probably would
have a restraining effect on underlying inflation
pressures over the next several quarters. Evidence
of such a development included indications of strong
competition in markets for a wide range of products
and reports of adjustments in the pricing policies of
many business firms. The members recognized that
the effects of earlier declines in the dollar on the
prices of imported goods and competing domestic
products would tend to maintain some upward
pressure on the overall price level for a time;
however, they assumed for the purpose of their
forecasts that there would not be any further change
in the value of the dollar of a magnitude that would
affect domestic prices over the projection horizon
and that oil prices would remain near recent lower
levels.
Against the background of the members' views on
the economic outlook and in keeping with the
requirements of the Full Employment and Balanced
Growth Act of 1978 (the Humphrey-Hawkins Act),
the Committee reviewed the ranges for growth of the
monetary and debt aggregates in 1991 that it had
established on a tentative basis in July 1990. The
tentative ranges included expansion of 2lA percent to
6Vz percent for M2 and 1 percent to 5 percent for
M3, measured from the fourth quarter of 1990 to the
fourth quarter of 1991. The monitoring range for
growth of total domestic nonfinancial debt had been
set provisionally at AVz percent to 8^2 percent for
1991. The ranges for M2 and nonfinancial debt
involved reductions of Vi percentage point from
those that were reaffirmed in July for the year 1990;
the M3 range for 1990 had been lowered by
1 Vi percentage points in July and no further reduction
had been made in the tentative M3 range for 1991.
In the Committee's discussion of the ranges for
1991, which mainly focused on M2, most of the
members indicated a preference for affirming the
ranges that had been established on a tentative basis
in July. Insofar as could be judged under present
circumstances, the tentative ranges offered in this
view the best prospects of balancing and accommodating the Committee's objectives of a prompt
recovery in business activity and continuing progress
toward reducing inflation. Many of the members
conceded that in light of the current uncertainties
surrounding the relationship between money growth
and economic performance, somewhat higher or
somewhat lower ranges also were defensible. For
example, it was unclear to what extent the relatively
slow growth of M2 in relation to that of nominal
income, allowing for the effects of movements in
interest rates, would persist during the year ahead; a
return to a more normal pattern in this relationship
would have a substantial effect on the rate of M2
318
Federal Reserve Bulletin • May 1991
growth that was consistent with a satisfactory economic performance. The Committee needed to be
prepared to revise those ranges at midyear as interim
economic or financial developments might warrant.
Members also noted the risk that market participants
might misinterpret the implications of any changes
in the ranges for the conduct of monetary policy
during the year. Increasing the ranges could raise
questions about the System's commitment to its
anti-inflationary goals, while lowering them, especially in the context of already weak money growth,
could lead to concerns about the System's objective
of fostering an upturn in business activity. Moreover,
a reduction in the M2 range might have to be
reversed later if the behavior of money resumed a
more normal pattern in relation to income; such a
reversal would interrupt the Committee's practice of
gradually reducing its growth ranges and could have
adverse repercussions on the credibility of the
System's anti-inflationary policy. Accordingly, most
of the members concluded that the tentative range
for M2, which already incorporated a reduction
from 1990, represented an appropriately balanced
approach, based on current expectations with regard
to the behavior of velocity, to promoting the
Committee's objectives.
Expressing a differing opinion, two members
indicated that they preferred a somewhat higher
range for M2, in part to provide a better signal of the
System's determination to cushion the recession and
foster a quick recovery in business activity. The
midpoint of the higher range would call for some
make-up of the shortfall in M2 growth from the
midpoints of the ranges established for this aggregate
in recent years. Moreover, growth of M2 at or near
the bottom of the tentative range would pose an
unacceptable risk of inadequate monetary stimulus
that could fail to cushion possible further deterioration in the economy. On the other hand, a preference
was expressed for a somewhat lower range to
underline the System's commitment to price stability.
The midpoint of such a range would not imply a
change from the average growth of recent years, and
the upper end would trigger a prompter policy
response should the recovery be stronger than
anticipated with potential inflationary implications.
With regard to M3, all of the members favored
adoption of the tentative range that had been set
provisionally in July. While that range was unchanged from that for 1990, as revised at midyear, it
incorporated a substantial reduction from the M3
ranges of previous years. The members anticipated
that growth of M3 would remain below that of M2 as
a consequence of the continuing restructuring of
thrift depository institutions this year and the
likelihood of restrained growth in bank credit. However, the effect on overall credit growth seemed
likely to be attenuated by the continuing rechanneling
of credit extensions through financial markets or
lenders other than depository institutions. In the
circumstances, a relatively low range for M3 was
expected to prove consistent with the Committee's
goals for the economy.
All of the members found acceptable the monitoring range of 4V2 percent to 8V2 percent that the
Committee had established on a provisional basis for
growth of total domestic nonfinancial debt in 1991.
That range, which represented a further step in a
series of annual reductions, took into account the
prospect that federal borrowing was likely to be
robust in 1991, owing in part to borrowing associated
with outlays by the Resolution Trust Corporation
but more generally to the likely weakness of federal
revenues in a year of relatively sluggish economic
activity. On the other hand, growth in borrowing by
domestic nonfederal sectors was expected to moderate. Demands for credit would be held down by
limited expansion in domestic spending and the
increased caution on the part of both businesses and
households in taking on debt, while the terms and
conditions set by many suppliers of credit would
remain tight.
At the conclusion of the Committee's discussion,
all but one of the members indicated that they
favored or could accept the ranges for 1991 that the
Committee had established on a tentative basis at its
meeting in July 1990. In keeping with the Committee's usual procedures under the Humphrey-Hawkins Act, the ranges would be reviewed at midyear, or
sooner if deemed necessary, in light of the behavior
of the aggregates and ongoing economic and financial developments. The Committee approved the
following paragraph for inclusion in the domestic
policy directive:
The Federal Open Market Committee seeks monetary
and financial conditions that will foster price stability,
promote a resumption of sustainable growth in output,
and contribute to an improved pattern of international
transactions. In furtherance of these objectives, the
Committee at this meeting established ranges for growth
Record of Policy Actions of the Federal Open Market Committee
of M2 and M3 of 2Vi to 6V2 percent and 1 to 5 percent,
respectively, measured from the fourth quarter of 1990 to
the fourth quarter of 1991. The monitoring range for
growth of total domestic nonfinancial debt was set at AXA
to 8V2 percent for the year. With regard to M3, the
Committee anticipated that the ongoing restructuring of
thrift depository institutions would continue to depress its
growth relative to spending and total credit. The behavior
of the monetary aggregates will continue to be evaluated
in the light of progress toward price level stability,
movements in their velocities, and developments in the
economy and financial markets.
Votes for this action: Messrs. Greenspan, Corrigan,
Angell, Black, Keehn, Kelley, LaWare, Mullins, Parry,
and Ms. Seger. Vote against this action: Mr. Forrestal.
Mr. Forrestal dissented because he wanted to
retain the 1990 range of 3 to 7 percent for M2 growth
in 1991. He was concerned that monetary growth in
1990 was the lowest since monetary targeting began.
Moreover, in the current recessionary environment,
the 3 to 7 percent range with its somewhat higher
minimum growth rate would provide a better basis
for conveying and implementing the Committee's
goals of fostering a prompt upturn in economic
activity and subsequent expansion at a sustained and
acceptable pace. In addition, the midpoint of this
range appeared to be consistent with continued
progress toward price stability.
In the Committee's discussion of policy for the
intermeeting period ahead, all of the members
endorsed a proposal to maintain unchanged conditions in reserve markets, at least initially, following
this meeting. In reaching their decision, members
took into account the considerable easing of monetary policy that had been implemented in a series of
steps over the course of recent months, including the
reduction in the discount rate and related decrease in
money market interest rates within the last few days.
The System's policy actions, in the context of a
weakening economy and moderating cost pressures,
had induced a considerable decline in interest rates,
but sufficient time had not yet elapsed for the effects
of the lower rates to be felt in the economy or indeed
to any measurable extent in the growth of the
monetary aggregates. A number of members also
commented on the possibility that further easing so
soon after the recent policy moves could result in
undesirable downward pressure on the dollar in
foreign exchange markets. In these circumstances,
while views differed with regard to the potential
319
need for further easing moves, the members agreed
that for now it was desirable to pause and assess the
course of the economy and the effects of past policy
actions.
As they had at other recent meetings, many of the
members expressed concern about the very sluggish
expansion of M2 and M3 over the past several
months. This weakness in monetary growth in turn
appeared to be associated with the current constraints
on the availability of credit from depository institutions and the shortfalls in aggregate spending and
income. According to a staff analysis prepared for
this meeting, a steady policy course was likely to be
consistent with some acceleration in monetary
growth over the first quarter because earlier declines
in market interest rates had reduced the opportunity
costs of holding deposit accounts, and the staff
assumed some strengthening of aggregate spending
over the balance of the quarter. The incomplete data
available thus far for the latter part of January tended
to support this staff analysis. The members recognized that the short-run behavior of these monetary
measures needed to be interpreted with caution and
that easing reserve conditions too much would incur
the risk of stimulating a sharp rebound in monetary
growth and in inflationary pressures once the economic recovery had gathered some momentum.
Nonetheless, several members emphasized the
desirability of giving relatively high priority to
achieving satisfactory rates of growth in reserves
and money, especially under prevailing economic
and financial conditions.
In the course of the Committee's consideration of
possible intermeeting adjustments to the degree of
reserve pressure, most of the members expressed a
preference for continuing to tilt the directive toward
possible easing during the weeks ahead. In this
view, the downside risks to the economy and the
potential for inadequate monetary growth made it
likely that any intermeeting adjustment would be in
the direction of easier reserve conditions. Several
members also noted that the Committee needed to
place a high premium on avoiding any tendency for
the weakness in the economy to cumulate because
they were more concerned about the severe consequences of a potentially deep and prolonged recession than those of a sharp rebound in the economy,
especially given current financial strains and fragilities in the economy. Accordingly, the Committee
should be willing to ease in response to evidence of
320
Federal Reserve Bulletin • May 1991
additional weakness in the economy and abatement
of inflationary pressures; the need for further easing
might be signaled in part by a continuing shortfall in
monetary growth. In following such a policy, however, a number of members stressed that the
Committee would need to be prepared to tighten
policy promptly down the road in the event that
inflationary pressures should threaten to re-emerge.
A few members, while acknowledging the potential
need for some easing, preferred not to bias the
directive in either direction. In this view, there were
considerable risks of overreacting to indications of a
weakening economy, particularly since conditions
for a recovery in economic activity already appeared
to be in place and weak data for the period at the start
of the Persian Gulf war might well reflect what
would prove to be a short-lived development.
At the conclusion of the Committee's discussion,
all of the members indicated that they favored a
directive that called for maintaining the existing
degree of pressure on reserve positions. They also
noted their preference or acceptance of a directive
that gave special weight to potential developments
that might require some easing during the intermeeting period. Accordingly, the Committee decided
that slightly greater reserve restraint might be
acceptable during the intermeeting period or somewhat lesser reserve restraint would be acceptable
depending on progress toward price stability, the
strength of the business expansion, the behavior of
the monetary aggregates, and developments in foreign exchange and domestic financial markets. The
reserve conditions contemplated at this meeting
were expected to be consistent with some pickup in
the growth of M2 and M3 to annual rates of around
3 Vi percent to 4 percent over the three-month period
from December to March.
At the conclusion of the meeting, the following
domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests
further weakening in economic activity. Total nonfarm
payroll employment fell sharply further in December and
January, reflecting widespread job losses that were
especially pronounced in manufacturing and construction;
the civilian unemployment rate rose to 6.2 percent in
January. Industrial output declined markedly in the fourth
quarter, in part because of sizable cutbacks in the
production of motor vehicles, and partial data suggest a
further drop in January. Consumer spending has remained
soft. Advance indicators of business capital spending
point to considerable weakness in investment in coming
months. Residential construction has declined substantially further in recent months. The nominal U.S.
merchandise trade deficit narrowed in November, as the
value of imports declined more than that of exports; the
average deficit for October and November exceeded that
for the third quarter. Increases in consumer prices
moderated and producer prices changed little in November
and December, largely as a result of a softening in energy
prices. The latest data suggest some further deceleration
in wages and overall labor costs.
Short-term interest rates have fallen considerably since
the Committee meeting on December 18, while rates in
longer-term markets are unchanged to down slightly. The
Board of Governors approved a reduction in the discount
rate from 7 to 6V2 percent on December 18 and a further
reduction to 6 percent on February 1. In foreign exchange
markets, the trade-weighted value of the dollar in terms of
the other G-10 currencies has declined somewhat on
balance over the intermeeting period.
Growth of M2 remained sluggish in December and
January; expansion of M3 picked up in January from the
very slow pace of recent months. For the year 1990, M2
and M3 expanded at rates in the lower portions of the
Committee's ranges for the year. Expansion of total
domestic nonfinancial debt appears to have been near the
midpoint of its monitoring range for the year.
The Federal Open Market Committee seeks monetary
and financial conditions that will foster price stability,
promote a resumption of sustainable growth in output,
and contribute to an improved pattern of international
transactions. In furtherance of these objectives, the
Committee at this meeting established ranges for growth
of M2 and M3 of 2xh to 6V2 percent and 1 to 5 percent,
respectively, measured from the fourth quarter of 1990 to
the fourth quarter of 1991. The monitoring range for
growth of total domestic nonfinancial debt was set at 4l/i
to 8V2 percent for the year. With regard to M3, the
Committee anticipated that the ongoing restructuring of
thrift depository institutions would continue to depress its
growth relative to spending and total credit. The behavior
of the monetary aggregates will continue to be evaluated
in the light of progress toward price level stability,
movements in their velocities, and developments in the
economy and financial markets.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. Depending upon
progress toward price stability, trends in economic
activity, the behavior of the monetary aggregates, and
developments in foreign exchange and domestic financial
markets, slightly greater reserve restraint might or
somewhat lesser reserve restraint would be acceptable in
the intermeeting period. The contemplated reserve
conditions are expected to be consistent with growth of
both M2 and M3 over the period from December through
March at annual rates of about 3V2 to 4 percent.
Record of Policy Actions of the Federal Open Market Committee
Votes for the paragraph on short-run policy implementation: Messrs. Greenspan, Corrigan, Angell, Black,
Forrestal, Keehn, Kelley, LaWare, Mullins, Parry, and
Ms. Seger. Votes against this action: None.
2. Agreement to "Warehouse"Foreign
Currencies
At its meeting on March 27, 1990, the Committee
approved an increase, if requested by the Treasury,
from $10 billion to $15 billion in the amount of
eligible foreign currencies that the System would be
prepared to "warehouse" for the Treasury and the
Exchange Stabilization Fund (ESF). The purpose of
the warehousing facility is to supplement the
resources of the Treasury and the ESF for financing
321
their purchases of foreign currencies. System
holdings of foreign currencies under the facility had
risen to $9.0 billion, based on acquisition costs, in
March 1990, but subsequent ESF repayments had
reduced the total to $4.5 billion by November 1,
1990.
At this meeting, the Committee decided to reduce
the limit to $10.0 billion. Such a limit would provide
an adequate cushion of unused capacity and thus
maintain operational flexibility to respond on short
notice to unanticipated developments.
Votes for this action: Messrs. Greenspan, Corrigan,
Angell, Black, Forrestal, Keehn, Kelley, LaWare,
Mullins, Parry, and Ms. Seger. Votes against this
action: None.
323
Legal Developments
FINAL RULE—REVISION
TO REGULATION
P
The Board of Governors is amending 12 C.F.R. Part
216, its Regulation P (Security Devices and Procedures) to reflect changes in the technology of security
devices, and to implement changes made by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA"). The revision incorporates amendments made to the Bank Protection Act of
1968 by FIRREA and provides banks with the flexibility to avoid the technical obsolescence that occurred with the existing regulation.
Effective May 1, 1991, 12 C.F.R. Part 216 is revised
as follows:
Section 216.2—Designation of security officer.
Upon becoming a member of the Federal Reserve
System, a state bank's board of directors shall designate a security officer who shall have the authority,
subject to the approval of the board of directors to
develop, within a reasonable time, but no later than
180 days, and to administer a written security program
for each banking office.
4. Section 216.3 is revised to read as follows:
Section 216.3—Security program.
Part 216—Security Procedures
Section
Section
Section
Section
Section
216.1
216.2
216.3
216.4
216.5
Authority, purpose, and scope
Designation of security officer
Security program
Report
Federal Reserve Banks
1. The authority citation for Part 216 continues to read
as follows:
Authority:
12 U . S . C . §§ 1881-1884.
2. Section 216.1 is revised to read as follows:
S e c t i o n 2 1 6 . 1 — A u t h o r i t y , p u r p o s e , and s c o p e .
(a) This regulation is issued by the Board of Governors
of the Federal Reserve System (the "Board") pursuant
to section 3 of the Bank Protection Act of 1968
(12 U.S.C. § 1882). It applies to Federal Reserve
Banks and state banks that are members of the Federal
Reserve System. It requires each bank to adopt appropriate security procedures to discourage robberies,
burglaries, and larcenies, and to assist in the identification and prosecution of persons who commit such acts.
(b) It is the responsibility of the member bank's board
of directors to comply with this regulation and ensure
that a written security program for the bank's main
office and branches is developed and implemented.
3. Section 216.2 is revised to read as follows:
(a) Contents of security program. The security program shall:
(1) establish procedures for opening and closing for
business and for the safekeeping of all currency,
negotiable securities, and similar valuables at all
times;
(2) establish procedures that will assist in identifying
persons committing crimes against the institution
and that will preserve evidence that may aid in their
identification and prosecution. Such procedures
may include, but are not limited to:
(i) maintaining a camera that records activity in
the banking office;
(ii) using identification devices, such as prerecorded serial-numbered bills, or chemical and
electronic devices; and
(iii) retaining a record of any robbery, burglary, or
larceny committed against the bank;
(3) provide for initial and periodic training of officers
and employees in their responsibilities under the
security program and in proper employee conduct
during and after a burglary, robbery, or larceny; and
(4) provide for selecting, testing, operating, and
maintaining appropriate security devices, as specified in paragraph (b) of this section.
(b) Security devices. Each member bank shall have, at
a minimum, the following security devices:
(1) a means of protecting cash and other liquid
assets, such as a vault, safe, or other secure space;
324
Federal Reserve Bulletin • May 1991
(2) a lighting system for illuminating, during the
hours of darkness, the area around the vault, if the
vault is visible from outside the banking office;
(3) tamper-resistent locks on exterior doors and
exterior windows that may be opened;
(4) an alarm system or other appropriate device for
promptly notifying the nearest responsible law enforcement officers of an attempted or perpetrated
robbery or burglary; and
(5) such other devices as the security officer determines to be appropriate, taking into consideration:
(i) the incidence of crimes against financial institutions in the area;
(ii) the amount of currency and other valuables
exposed to robbery, burglary, and larceny;
(iii) the distance of the banking office from the
nearest responsible law enforcement officers;
(iv) the cost of the security devices;
(v) other security measures in effect at the banking office; and
(vi) the physical characteristics of the structure of
the banking office and its surroundings.
5. Section 216.4 is revised to read as follows:
Section 216.4—Report.
The security officer for each member bank shall report
at least annually to the bank's board of directors on the
implementation, administration, and effectiveness of
the security program.
6. Section 216.5 is revised to read as follows:
Section 216.5—Federal Reserve Banks.
Each Reserve Bank shall develop and maintain a
written security program for its main office and
branches subject to review and approval of the Board.
Orders Approved Under Section 3 of the Bank
Holding Company Act
Cherokee Bancorp
Centre, Alabama
Order Denying Formation of a Bank Holding
Company
Cherokee Bancorp, Centre, Alabama ("Cherokee"),
has applied for the Board's approval, pursuant to
section 3(a)(1) of the Bank Holding Company Act
("BHC Act") (12 U.S.C. § 1842(a)(1)) to become a
bank holding company by acquiring approximately 85
percent of the voting shares of Farmers and Merchants
Bank, Centre, Alabama ("Bank").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 10,287 (1990)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
Cherokee is a nonoperating company formed for the
purpose of acquiring Bank. Bank is the 87th largest
commercial banking organization in Alabama, controlling deposits of $29.5 million, representing less than
1 percent of the total deposits in commercial banking
organizations in the state. 1
In evaluating this application, the Board is required,
under section 3 of the BHC Act, to consider the
financial and managerial resources of Cherokee and
Bank and the effect of the proposed acquisition on
those resources and on the future prospects of both
Cherokee and Bank. The Board previously has stated
that a bank holding company should serve as a source
of financial and managerial strength to its subsidiary
banks, and that the Board would closely examine the
condition of an applicant and its subsidiaries in each
case with this consideration in mind. 2 The Board also
has cautioned against the assumption of substantial
debt by a bank holding company because of concern
that a holding company with substantial debt would
not have the financial flexibility necessary to meet
unexpected problems in its subsidiary banks and could
be forced to place substantial demands on its subsidiary banks to meet its debt servicing requirements. 3
The Board notes that Bank is in weakened financial
condition and is in need of financial and managerial
support. While this proposal would inject new capital
into Bank, debt constitutes a significant proportion of
Cherokee's financing of this proposal. Cherokee
projects that it will be able to reduce the acquisition
debt in a manner consistent with Board policy. In light
of the historical performance and the overall financial
condition of Bank and Cherokee, however, Cherokee's earnings projections appear to be overly optimistic. Upon careful evaluation of more conservative
projections, and based on more recent performance of
Bank, it is the Board's judgment that, at this time,
Cherokee would not have sufficient financial flexibility
to service its debt without unduly straining the re-
1. Banking data are as of June 30, 1990.
2. 12 C.F.R. 225.4(a).
3. See St. Croix Valley Bancshare, Inc., 75 Federal Reserve Bulletin
575 (1989); F.N.B.A. Holding Company, Inc., 75 Federal Reserve
Bulletin 711 (1989).
Legal Developments
sources of the Bank. Moreover, based on the record, it
does not appear that Cherokee would have the financial resources to meet any unexpected problems that
may arise at Bank.
In addition, Bank's management would remain substantially the same after consummation of this proposal and current management has not demonstrated
that it can provide the improvement in the performance of Bank necessary to support the debt contemplated by this proposal. Based on the record, it does
not appear that Cherokee would be able to serve as a
source of financial or managerial strength or would
have the resources to meet any unexpected problems
that may arise at its bank subsidiary. Accordingly,
based on a review of all the facts of record, including
relevant examination materials, the Board concludes
that considerations relating to financial and managerial
resources are not consistent with approval. Considerations relating to competitive factors, future prospects
and the convenience and needs of the community do
not lend sufficient weight to warrant approval of this
application.
Based on all of the facts of record in this case, the
Board believes that adverse considerations relating to
financial and managerial resources of Cherokee and
Bank are not outweighed by any other factors. Accordingly, it is the Board's judgment that approval of
this application would not be in the public interest and
that the application should be, and hereby is, denied.
By order of the Board of Governors, effective
March 4, 1991.
Voting for this action: Chairman Greenspan and Governors
Seger, LaWare, and Mullins. Absent and not voting: Governors Angell and Kelley.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
Citicorp
New York, New York
Order Approving
Company
the Acquisition
of a Bank
Holding
Citicorp, N e w York, N e w York ("Citicorp"), a bank
holding company within the meaning of the Bank
Holding Company Act ("BHC Act"), has applied
under
section
3(a)(3)
of
the
BHC
Act
(12 U.S.C. § 1842(a)(3)) to acquire all of the voting
shares of De Anza Holding Corporation, Sunnyvale,
California ("De Anza)", and thereby indirectly acquire De Anza's subsidiary bank, De Anza Bank,
Sunnyvale, California ("Bank").
325
Notice of the application, affording interested persons an opportunity to comment, has been published
(55 Federal Register 43,035 (1990)). The time for filing
comments has expired, and the Board has considered
the application and all comments received in light of
the factors set forth in section 3(c) of the BHC Act.
Section 3(d) of the BHC Act (12 U.S.C. § 1842(d)),
the Douglas Amendment, prohibits the Board from
approving an application by a bank holding company
to acquire control of any bank located outside the bank
holding company's home state unless such acquisition
"is specifically authorized by the statute laws of the
State in which [the] bank is located, by language to
that effect and not merely by implication." 1 Citicorp's
home state is N e w York. 2
Effective January 1, 1991, the California interstate
banking statute expressly authorizes bank holding
companies located in other states to acquire existing
California banks and bank holding companies, if there
is substantial reciprocity between California law and
the law of the home state of the acquiring out-of-state
bank holding company. 3 The laws of N e w York provide for similar reciprocal out-of-state acquisitions by
expressly authorizing out-of-state bank holding companies to acquire N e w York banking institutions, if the
laws of the acquiring out-of-state bank holding company's home state permit reciprocal acquisitions by
N e w York bank holding companies and these laws are
not unduly restrictive in administering such reciprocity. 4 The California Superintendent of Banks has determined that the N e w York interstate banking statute
is substantially reciprocal with California law. 5 Based
on the foregoing, the Board has determined that the
proposed acquisition is specifically authorized by the
statute laws of California and that Board approval is
not barred by the Douglas Amendment.
Citicorp is the largest banking organization in N e w
York, operating two subsidiary banks with total deposits of $47.1 billion, representing approximately 18.0
percent of the total deposits in commercial banks in
N e w York. 6 Citicorp also controls commercial bank-
1. 12 U.S.C. § 1842(d).
2. A bank holding company's home state is that state in which the
operation of the bank holding company's subsidiary banks were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
3. California law also requires that the acquisition not have an
adverse effect upon the public convenience in California and that the
California Superintendent of Banks approve the transaction. Cal. Fin.
Code §§ 3753, 3756 (West 1991).
4. New York Banking Law § 142-b (McKinney 1990). California
law does not impose unduly restrictive conditions on acquisitions by
New York bank holding companies.
5. See Letter dated January 2, 1991, from James Gilleran, Superintendent of Banks.
6. State deposit data are as of June 30, 1990. Market deposit data are
as of June 30, 1988.
326
Federal Reserve Bulletin • May 1991
ing organizations in ten other states. In California,
Citicorp operates a federal savings bank, Citibank
Federal Savings Bank, Oakland, California ("Citibank
Savings"). Citibank Savings is the 12th largest thrift
institution in California, with total deposits of $4.8
billion, representing 2.0 percent of the total deposits of
thrift institutions in California. De Anza is the 365th
largest commercial banking organization in California,
operating a single subsidiary bank, with deposits of
$31.1 million, representing less than one percent of the
total deposits in commercial banks in California.
Based upon the facts of record, the Board concludes
that the consummation of this proposal would not have
a significantly adverse effect upon the concentration of
banking resources in California or N e w York.
Citicorp, through Citibank Savings, competes directly with De Anza in the San Francisco Vicinity
Rand McNally Metropolitan Area ("RMA") banking
market. 7 Citicorp is the fourth largest depository organization in that market with $3.1 billion in deposits,
representing approximately 4.1 percent of the total
deposits held by banks and savings associations operating in the market ("market deposits"). 8 De Anza is
the 104th largest depository organization in the market, with approximately $30 million in deposits, representing less than one percent of market deposits. Upon
consummation of this proposal, Citicorp would remain
the fourth largest depository organization in the market, with $3.1 billion in deposits, representing approximately 4.1 percent of market deposits. 9 The Herfindahl-Hirschman Index ("HHI"), upon consummation,
would increase by less than one point to 1031. 10 Based
on these and other facts of record, the Board concludes that the acquisition would not have a significant
adverse effect on competition in the San Francisco
vicinity RMA banking market. Consummation also
7. The San Francisco Vicinity RMA market is approximated by San
Francisco County and portions of San Mateo, Santa Clara, Alemeda,
Contra Costa, Solano, Napa, Sonoma, and Marin counties, all in
California.
8. The Board previously has indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. Midwest Financial Group, 75 Federal Reserve
Bulletin 386 (1989); CB&T Bancshares, Inc., 75 Federal Reserve
Bulletin 381 (1989); National City Corporation, 70 Federal Reserve
Bulletin 743 (1984). The Board believes that the record in this case
supports the inclusion of thrift institutions on a 50 percent weighted
basis in the calculation of market share in this market and the deposits
in Citibank Savings on a 100 percent weighted basis.
9. The pre-consummation and post-consummation market share
data are based on calculations in which the deposits of Citibank
Savings have been included on a 100 percent weighted basis, and the
deposits of all other savings associations in the market have been
included on a 50 percent weighted basis.
10. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (1984), a market in which the post-merger
HHI is between 1000 and 1800 is considered moderately concentrated.
In such markets, the Justice Department is unlikely to challenge a
merger if the increase in the HHI is less than 100 points.
would not result in a significant adverse effect on
probable future competition in any relevant banking
market.
The Board has considered the financial and managerial resources and future prospects of Citicorp and
De Anza, and has determined in the context of this
application that these factors are consistent with approval. In addition, considerations relating to the
convenience and needs of the communities to be
served also are consistent with approval of this application.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. In granting this approval, the
Board has relied upon Citicorp's commitments and
representations, and this approval is conditioned upon
Citicorp obtaining all required State approvals. This
transaction shall not be consummated before the thirtieth calendar day following the effective date of this
Order, or later than three months after the effective
date of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of N e w York, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
March 18, 1991.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, and LaWare. Abstaining from this action:
Governor Mullins.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
Key Centurion Bancshares, Inc.
Charleston, West Virginia
Order Approving
Company
the Acquisition
of a Bank
Holding
Key Centurion Bancshares, Inc., Charleston, West
Virginia ("Key Centurion"), a bank holding company
within the meaning of the Bank Holding Company Act
("BHC Act"), has applied under section 3 of the BHC
Act (12 U.S.C. § 1842) to acquire Southern Bankshares, Inc., Beckley, West Virginia ("Southern"),
and thereby indirectly acquire both Beckley National
Bank, Beckley, West Virginia, and M & M Financial
Corporation, an intermediate bank holding company
of Southern, and its wholly owned subsidiary, Merchants & Miners National Bank of Oak Hill, both in
Oak Hill, West Virginia.
Notice of the applications, affording interested persons an opportunity to submit comments, has been
duly published (55 Federal Register 53,055 (1990)).
Legal Developments
The time for filing comments has expired, and the
Board has considered the applications and all comments received in light of the factors set forth in
section 3(c) of the BHC Act.
Key Centurion, which operates 15 banking subsidiaries located in West Virginia and one banking subsidiary located in Kentucky, is the largest banking
organization in West Virginia, controlling approximately $1.8 billion in deposits in West Virginia, representing 12.1 percent of the total deposits in commercial banking organizations in the state. 1 Southern is the
12th largest banking organization in West Virginia,
controlling approximately $256.1 million in deposits in
West Virginia, representing 1.8 percent of the total
deposits in commercial banking organizations in the
state. Upon consummation of the proposed acquisition, Key Centurion would remain the largest commercial banking organization in West Virginia, controlling
approximately $2.1 billion in deposits in West Virginia, representing 13.9 percent of the total deposits in
commercial banking organizations in the state. Consummation of the proposal would not result in significantly adverse effects on the concentration of banking
resources in West Virginia.
Both Key Centurion and Southern compete directly
in the Beckley, West Virginia, banking market. 2 Key
Centurion is the sixth largest commercial banking
organization in the market, controlling approximately
$46.8 million in deposits, representing 4.9 percent of
the total deposits in commercial banking organizations
in the market. Southern is the largest commercial
banking organization in the market, controlling approximately $255.0 million in deposits, representing
26.6 percent of the total deposits in commercial banking organizations in the market. Upon consummation
of this proposal, Key Centurion would become the
largest commercial banking organization in the market, controlling approximately $301.8 million in deposits, representing 31.5 percent of the total deposits in
commercial banking organizations in the market. The
proposed transaction would increase the HerfindahlHirschman Index ("HHI") in the Beckley banking
market by 261 points to 2051. 3
1. State banking data are as of September 30, 1990. Market share
data are as of June 30, 1989.
2. The Beckley banking market is approximated by the West
Virginia Counties of Raleigh; Summers; and Fayette (excluding the
towns of Montgomery and Smithers); and the town of Whitesville in
Boone County, West Virginia.
3. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 2, 1984), any market in which the
post-merger HHI is over 1800 is considered highly concentrated, and
the Justice Department is likely to challenge a merger that increases
the HHI by more than 50 points unless other factors indicate that the
merger will not substantially lessen competition. The Justice Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
327
Several factors mitigate the potential anticompetitive effects of this proposal. Twelve commercial banks
would remain as competitors upon consummation of
this proposal. The Board has also considered the
presence of thrift institutions in this market in its
analysis of the proposal. 4
In addition, there are indications that the Beckley
market is attractive for entry. The Beckley market is
the largest of 45 markets in West Virginia that do not
include a Metropolitan Statistical Area ("MSA") and
has a higher population per banking office than similar
West Virginia banking markets, both of which would
tend to enhance its attractiveness for entry. On average, banks in this market have higher total amounts of
deposits per banking office and experience a higher
return on assets than banks in other non-MSA West
Virginia banking markets, factors which would also
make entry relatively attractive. The market's attractiveness for entry was demonstrated in 1990 when a
banking subsidiary of West Virginia's seventh largest
bank holding company established a branch in the
Beckley market on a de novo basis. 5 Finally, because
West Virginia law has permitted statewide branching
since 1984 and nationwide reciprocal branching since
1988,6 there are many potential entrants to the Beckley
banking market. 7
In light of all the facts in this case, including the
presence of thrift institutions in the market, the Beckley market's attractiveness for entry, and the substantial number of competitors that would remain in the
market, the Board does not believe that the proposed
acquisition would result in a significantly adverse
effect on competition in the Beckley banking market.
The financial and managerial resources of Key Centurion and Southern and their future prospects are
consistent with approval. Considerations relating to
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by at least 200 points. The
Justice Department has stated that the higher than normal HHI
thresholds for screening bank mergers for anticompetitive effects
implicitly recognizes the competitive effects of limited-purpose lenders and other non-depository financial entities.
4. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, Key Centurion
would control 4.7 percent of market deposits and Southern would
control 25.4 percent. The HHI would increase by 237 points to 1875.
The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. Midwest Financial Group, 75 Federal Reserve
Bulletin 386 (1989); CB&T Bancshares, Inc., 75 Federal Reserve
Bulletin 381 (1989); National City Corporation, 70 Federal Reserve
Bulletin 743 (1984).
5. The deposits of this branch were not included in the HHI
calculation for this market since the branch opened after the date for
which market deposit data are available.
6. W. Va. Code §§ 31A-8A-7; 31A-8-12.
7. For example, there are currently seven West Virginia bank
holding companies among the ten largest bank holding companies in
the state that do not have a banking presence in the Beckley market.
328
Federal Reserve Bulletin • May 1991
the convenience and needs of the communities to be
served also are consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The transactions shall not
be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended by the Board or by the
Federal Reserve Bank of Richmond, acting pursuant
to delegated authority.
By order of the Board of Governors, effective
March 18, 1991.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, and Mullins.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
The Moorcroft Corporation
Moorcroft, Wyoming
Moorcroft State Bank
Moorcroft, Wyoming
North Platte Corporation
Torrington, Wyoming
Dawson Corporation
Lexington, Nebraska
Order Approving the Merger of Bank Holding
Companies, the Merger of Banks, the
Establishment
of a Branch, and an Investment in Bank Premises
The Moorcroft Corporation, Moorcroft, Wyoming
("Moorcroft"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied under section 3 of the BHC Act
(12 U . S . C . § 1842) to merge with The Newcastle
Corporation ("Newcastle"), and thereby indirectly
acquire National Bank of Newcastle ("Newcastle
Bank"), both in N e w Castle, Wyoming. In connection
with this application, North Platte Corporation, Torrington, Wyoming ("North Platte"), and Dawson Corporation, Lexington, Nebraska ("Dawson"), bank
holding companies within the meaning of the BHC
Act, have applied under section 3 of the BHC Act to
retain a nonvoting equity interest in excess of 25
percent in Moorcroft. This proposal represents a corporate reorganization with no change in ownership. 1
Moorcroft State Bank ("Moorcroft Bank"), Moorcroft's member bank subsidiary, has also applied
under the Bank Merger Act (12 U . S . C . § 1828 (c)) to
merge with Newcastle Bank with Moorcroft Bank as
the surviving entity. In addition, Moorcroft Bank has
applied to establish a branch at the present location of
Moorcroft Bank under section 9 of the Federal Reserve Act (12 U.S.C. § 321) and for permission to
make an additional investment in bank premises pursuant to section 24A of the Federal Reserve Act
(12 U.S.C. § 371(d)).
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 47,806 (1990)). As
required by the Bank Merger Act, reports on the
competitive effects of the merger were requested from
the United States Attorney General, the Office of the
Comptroller of the Currency, and the Federal Deposit
Insurance Corporation. The time for filing comments
has expired, and the Board has considered the applications and all comments received in light of the
factors set forth in section 3(c) of the BHC Act and in
the Bank Merger Act.
Section 3(d) of the BHC Act, the Douglas Amendment, prohibits the Board from approving an application by a bank holding company to acquire control of
any bank located outside of the bank holding company's home state, unless such acquisition is "specifically authorized by the statute laws of the State in
which [the] bank is located, by language to that effect
and not merely by implication." 2 Dawson's home
state is Nebraska and all of Moorcroft's and Newcastle's banks are located in Wyoming. 3
Wyoming law authorizes financial institutions located
in any state to acquire Wyoming financial institutions
that have been chartered to do business in Wyoming for
at least three years. 4 Both Moorcroft and Newcastle
and their banking subsidiaries have been chartered to
do business in Wyoming for at least three years. In light
of the foregoing, the Board has determined that the
proposed acquisition is specifically authorized by the
statute laws of Wyoming and that Board approval of the
proposal is not barred by the Douglas Amendment.
Moorcroft is the 47th largest banking organization in
Wyoming, controlling approximately $9.4 million in
1. All of the institutions involved in this proposal are part of the
Dinsdale family chain banking organization.
2. 12 U.S.C. § 1842(d).
3. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
4. Wyo. Stat. § 13-9-303 (1990).
Legal Developments
deposits in Wyoming, representing 0.2 percent of the
total deposits in commercial banking organizations in
the state. 5 Newcastle is the 39th largest banking organization in Wyoming, controlling approximately $17.2
million in deposits in Wyoming, representing 0.5 percent of the total deposits in commercial banking organizations in the state. Upon consummation of the
proposed acquisition, Moorcroft would become the
30th largest commercial banking organization in Wyoming, controlling approximately $26.6 million in deposits in Wyoming, representing 0.7 percent of the
total deposits in commercial banking organizations in
the state. North Platte is the 14th largest banking
organization in Wyoming, controlling approximately
$66.9 million in deposits in Wyoming, representing 1.7
percent of the total deposits in commercial banking
organizations in the state. Upon consummation of the
proposed acquisition, North Platte would become the
10th largest commercial banking organization in Wyoming, controlling approximately $93.5 million in deposits in Wyoming, representing 2.4 percent of the
total deposits in commercial banking organizations in
the state. Consummation of the proposal would not
result in significantly adverse effects on the concentration of banking resources in Wyoming.
North Platte, Dawson and Moorcroft (collectively,
"Applicants") and Newcastle do not compete directly
with each other in any banking market. Accordingly,
consummation of this proposal would not have any
significantly adverse effect on the concentration of
banking resources or result in any significantly adverse
effect upon existing competition in any relevant banking market. In light of the existence of numerous
potential entrants into the relevant banking markets,
the Board has concluded that consummation of this
proposal would not result in a significantly adverse
effect on probable future competition in any relevant
market.
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the record of the subsidiary banks of Applicants and Newcastle under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). The
CRA requires the federal financial supervisory agencies to encourage financial institutions to help meet the
credit needs of the local communities in which they
operate consistent with the safe and sound operation
of such institutions. To accomplish this end, the CRA
requires the appropriate federal supervisory authority
to "assess an institution's record of meeting the credit
needs of its entire community, including low- and
moderate-income neighborhoods, consistent with the
5. State banking data are as of December 31, 1989.
329
safe and sound operation of the institution," and to
take this record into account in its evaluation of bank
holding company applications.
In this regard, the Board has received comments
relating to Moorcroft Bank ("Moorcroft Protestants")
and North Platte's subsidiary bank, Citizens National
Bank & Trust Company, Torrington, Wyoming ("Citizens Bank Protestants"). 6 The Moorcroft Protestants
have objected to the removal of Moorcroft Bank's
president; the proposed operation of Moorcroft Bank
as a branch in Moorcroft, Wyoming; an alleged overall
lack of consideration for local depositors' concerns
and credit needs in the proposal; and alleged statements inconsistent with the spirit of the CRA. 7 The
Citizens Bank Protestants have raised concerns regarding Citizens Bank's foreclosure practices for farm
loans guaranteed by the Farmers Home Administration ("FmHA"), alleged undue pressure and harassment to obtain loan payments, and an alleged general
lack of financial support to the community. 8
The Board has carefully reviewed the CRA performance record of Applicants and Newcastle and their
bank subsidiaries, as well as the comments received
and Applicants' response to those comments, in light
of the CRA, the Board's regulations, and the jointly
issued Statement of the Federal Financial Supervisory
Agencies Regarding the Community Reinvestment Act
("Agency CRA Statement").' 5 The Agency CRA
Statement provides guidance regarding the types of
policies and procedures that the supervisory agencies
believe financial institutions should have in place in
order to fulfill their responsibilities under the CRA on
an ongoing basis, and the procedures that the supervisory agencies will use during the application process
to review an institution's CRA compliance and performance. The Agency CRA Statement also suggests that
decisions by agencies to allow financial institutions to
expand will be made pursuant to an analysis of the
overall CRA performance of the institution. 10
6. The Board also has considered additional comments filed on this
application after the close of the comment period. Under the Board's
rules, the Board may in its discretion take into consideration the
substance of such comments. 12 C.F.R. 262.3(e).
7. The Moorcroft Protestants have submitted signatures of numerous Moorcroft Bank depositors and local residents. The statements
alleged to be inconsistent with the spirit of the CRA occurred in a
public meeting to discuss the proposed reorganization. The Board has
reviewed these statements in light of the entire record relating to CRA
performance.
8. These Protestants and other commenters have also alleged that
Citizens Bank and other affiliated institutions "siphon" profits off the
communities they serve. However, these commenters have alleged no
facts to support this comment and the record in this application,
including relevant examination reports, contain no evidence of this
practice.
9. 54 Federal Register 13,742 (1989).
10. Id.
330
Federal Reserve Bulletin • May 1991
Initially, the Board notes that all of the subsidiary
banks of Applicants and Newcastle have received satisfactory ratings from their primary regulators in the
most recent examinations of their CRA performance. 11
The Agency CRA Statement provides that, although
CRA examination reports do not provide conclusive
evidence of an institution's CRA record, these reports
will be given great weight in the applications process. 1 2
In addition, Applicants and Newcastle have in place
the types of programs outlined in the Agency CRA
Statement as essential to an effective CRA program.
For example, a review of the CRA program at Moorcroft Bank indicates that Moorcroft Bank actively participates in local community organizations and makes
agricultural, consumer and real estate loans. Moorcroft
Bank also participates in loan programs such as the
FmHA, Small Business Administration, Federal Housing Administration and Veterans Administration, as
well as the Wyoming Link Deposit program, which
promotes job creation and preservation. Moorcroft
Bank also advertises its programs in local news publications. In addition, Applicants' principal has represented that, subject to considerations relating to the
safety and soundness of banking practices, no change in
the availability or types of credit or services at Moorcroft Bank will result from the proposed restructuring. 13
Regarding the Citizens Bank Protestants, the Board
notes that Citizens Bank is an active agricultural
lender in Goshen County, Wyoming. Since December
1989, Citizens Bank has invested in the community
through the purchase of municipal warrants for the
Goshen County Irrigation District Project, the Mitchell Irrigation District Project, the Goshen County
Nursing Home Project, and the Goshen County Library Board. Citizens Bank has made numerous
FmHA guaranteed loans over the last five years and
during this period, FmHA has only been asked to
honor its guarantee on three of these loans, all of
which were in default at least 120 days before FmHA
became financially involved.
For the foregoing reasons, and based upon the
overall CRA record of Applicants and Newcastle and
their subsidiary banks and other facts of record, the
Board concludes that convenience and needs considerations, including the record of performance under
the CRA of Moorcroft Bank and Citizens Bank, are
consistent with approval of these applications. In
11. All other banks in the chain controlled by the Dinsdale family
have also received satisfactory ratings from their primary regulators in
the most recent examinations of their CRA performance.
12. Id. at 13,745.
13. As part of Applicants' plans for restructuring, the bank's
president was replaced.
addition, the Board does not believe that all the facts
of record support Protestants' allegations of inappropriate loan practices. 14 The Board also determines that
the financial and managerial resources and future
prospects of Applicants are consistent with approval
of these applications.
Moorcroft Bank has also applied under section 9 of
the Federal Reserve Act (12 U.S.C. § 321 et seq.) to
establish a branch at its present location. The present
site of Newcastle Bank will become the main office of
Moorcroft Bank following the merger. The Board has
considered the factors it is required to consider when
reviewing applications for establishing branches pursuant to section 9 of the Federal Reserve Act
(12 U.S.C. § 322) and finds those factors to be consistent with approval.
Moorcroft Bank has also requested permission under section 24A of the Federal Reserve Act to make an
additional investment in bank premises in connection
with this proposal. The additional investment will be
used to acquire the Newcastle Bank premises. The
Board concludes that Moorcroft Bank's additional
investment in bank premises will support Moorcroft
Bank's acquisition of the Newcastle Bank premises,
and is consistent with approval.
Based on all the foregoing and other facts of record,
the Board has determined that the applications should
be, and hereby are, approved. The transactions shall
not be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Kansas City,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
March 4, 1991.
Voting for this action: Chairman Greenspan and Governors
Seger, LaWare, and Mullins. Absent and not voting: Governors Angell and Kelley.
JENNIFER J. JOHNSON
Associate
Secretary
of the
Board
14. The Citizens Bank Protestants also have raised issues regarding
two specific loan transactions with the Protestants and their families.
These transactions were the subject of civil litigation in which both the
bank and the Protestants had an opportunity to present facts in
support of their positions. The Board also notes that no civil judgments of wrongdoing were entered against Citizens Bank and that one
of the principals alleged to have caused these Protestants harm is
deceased. Other allegations of wrongdoing in another individual loan
transaction regarding an affiliated bank which is not involved in this
transaction, First National Bank, Mitchell, Nebraska, were resolved
by a court-approved settlement. In light of all the facts of record,
including reports of examinations by the primary regulators of these
banks, the Board does not believe these allegations warrant denial of
the proposal.
Legal Developments
Orders Issued Under Section 4 of the Bank
Holding Company Act
Banc One Corporation
Columbus, Ohio
Order Approving Application to Engage in Asset
Management, Servicing, and Collection Activities
Banc One Corporation, Columbus, Ohio ("Banc One"), a
bank holding company within the meaning of the Bank
Holding Company Act ("BHC Act"), has applied under section 4(c)(8) of the BHC Act, (12 U.S.C.
§ 1843(c)(8)) and section 225.23(a)(3) of the Board's
Regulation Y (12 C.F.R. 225.23(a)(3)), to engage
de novo in asset management, servicing, and collection
activities through Banc One Management and Consulting Corporation, Columbus, Ohio ("BOMCC").
BOMCC would provide asset management services
to the Resolution Trust Corporation ("RTC") and the
Federal Deposit Insurance Corporation ("FDIC"). In
addition, Banc One proposes to provide these services
both to unaffiliated third party investors that purchase
pools of assets that have been assembled by the RTC
or the FDIC from troubled financial institutions, and
generally to unaffiliated financial institutions with troubled assets. 1
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (56 Federal Register 4829 (1991)). The time
for filing comments has expired, and the Board has
considered the application and all comments received
in light of the factors set forth in section 4(c)(8) of the
BHC Act.
Banc One, with total consolidated assets of $43.6
billion, is the 16th largest banking organization in the
nation. Banc One operates 53 subsidiary banks and
engages directly and through subsidiaries in a variety
of permissible nonbanking activities. 2
Under the proposal, BOMCC would not acquire an
ownership interest in the assets that it manages or in the
institutions for which it provides asset management
services. 3 In addition, BOMCC would not engage in
1. Banc One must obtain the prior approval of the Board before
providing asset management services in connection with pools of
assets that were not originated or held by financial institutions and
their affiliates.
2. Data are as of December 31, 1990.
3. Asset management encompasses the liquidation (or other disposition) of loans and their underlying collateral, including real estate
and other assets acquired through foreclosure or in satisfaction of
debts previously contracted ("DPC property"). Specific individual
activities include: classifying and valuing loan portfolios; filing reviews of loan documentation; developing collection strategies; negotiating renewals, extensions, and restructuring agreements: initiating
foreclosure, bankruptcy, and other legal proceedings, where appropriate; and developing and implementing market strategies for the sale
331
providing real property management or real estate
brokerage services as part of its proposed activities. 4
The Board has previously determined that providing
asset management services for assets originated by
financial institutions and their bank holding company
affiliates is an activity that is closely related to banking
for purposes of the BHC Act. 5 Banc One has proposed
to conduct these activities under the same terms, and
subject to the same conditions as in previous Board
orders regarding this activity.
In this regard, Banc One has made commitments to
address the concerns raised in NCNB Corporation and
First Florida regarding a bank holding company's
ability to control an institution through the terms of an
asset management agreement without the necessary
regulatory approvals. For example, Banc One has
committed that it will not own the stock of, or be
represented on the board of directors of any unaffiliated institution for which BOMCC provides asset
management services. In addition, Banc One has
committed that BOMCC will not establish policies or
procedures of general applicability, and that
BOMCC's services for unaffiliated financial institutions would be limited to asset management, servicing,
and collection activities. 6
The type of asset management activities proposed by
Banc One are the same as those previously approved by
the Board in NCNB Corporation. Financial institutions
and their affiliates would be the originators of the assets
managed by BOMCC. Accordingly, Banc One would
only manage assets that its financial institution affiliates
would have authority to originate and own.
The Board is also required to determine whether the
performance of the proposed activity by Banc One is a
proper incident to banking—that is, whether the proor refinancing of individual loans and for the packaging and sale of
whole or securitized loan portfolios. In addition, Banc One would
conduct and review (either directly or through independent contractors) appraisals and environmental inspections; provide asset valuations; perform cash flow and asset review analyses; contract with and
supervise independent property managers; and lease (either directly
or through independent contractors) real estate and other DPC property. Banc One also would dispose of DPC property by developing and
implementing marketing strategies for the sale of DPC property, either
individually or packaged for investors or developers.
4. Banc One will contract with independent third parties to obtain
these services for assets under BOMCC's management.
5. See NCNB Corporation, 11 Federal Reserve Bulletin 124 (1991);
First Florida Banks, Inc., 74 Federal Reserve Bulletin 111 (1988). The
Management Consignment Program referenced in First Florida involved corporations managing assets of failed financial institutions
acquired by the Federal Home Loan Bank Board. In First Florida the
Board also permitted bank holding companies to provide asset management services for thrifts managed by the Federal Savings and Loan
Insurance Corporation.
6. Banc One also will provide its services for a limited period of
time. The Board notes that, while Banc One will manage assets on an
ongoing basis, the owner of the assets will retain the right to make all
final decisions regarding asset dispositions and to terminate Banc One
as an asset manager.
332
Federal Reserve Bulletin • May 1991
posed activity "can reasonably be expected to produce benefits, such as greater convenience, increased
competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts
of interests, or unsound banking practices."
12 U . S . C . § 1843(c)(8).
Consummation of the proposal can reasonably be
expected to result in public benefits. Banc One's
proposal would facilitate the disposal of assets of
financial institutions in receivership as well as financial
institutions with troubled financial assets. Moreover,
the efficient disposition of such assets can reasonably
be expected to produce benefits to the public. BOMCC
will own no equity in the institutions for which it
provides asset management services or in the assets
that it manages. Banc One's de novo entry into the
market will increase competition for these services.
Banc One has indicated that it may, in certain
instances, seek approval to acquire institutions whose
assets are being managed by BOMCC. In NCNB
Corporation and First Florida, the Board expressed
concern that a bank holding company might obtain
confidential information in the course of providing its
asset management services that would provide the
bank holding company with a competitive advantage
over other institutions in the bidding process for the
failed institution under management. The Board also
noted that such information could give the managing
bank holding company a competitive advantage over
the ultimate acquiror of the failed institution in markets where they both compete.
To address these concerns, Banc One has committed that it will establish and implement procedures to
preserve the confidentiality of information obtained in
the course of providing asset management services. 7
These procedures will prevent the use of information
obtained by BOMCC through its asset management
activities in the course of preparing any bid that Banc
One may prepare to acquire the institution managed by
BOMCC, and will prevent Banc One from competing
unfairly against the winning bidder in the relevant
market.
There is no evidence in the record to indicate that
consummation of this proposal is otherwise likely to
result in any significantly adverse effects, such as
undue concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound banking
practices. Accordingly, on the basis of all of the facts
of record and commitments made by Banc One, the
Board concludes that the public benefits that would
7. Banc One's procedures will be subject to review by the Federal
Reserve System.
result from approval of this application outweigh any
potential adverse effects, and that the public interest
factors it must consider under section 4(c)(8) of the
BHC Act are consistent with approval. The financial
and managerial resources of Banc One and its subsidiaries are also consistent with approval.
Based upon the foregoing and all of the other facts of
record, including commitments made by Banc One
and conditions in this Order, the Board has determined
to approve, and hereby does approve, this application.
The Board's determination is subject to all of the
conditions set forth in the Board's Regulation Y,
including those in sections 225.4(d) and 225.23(b), and
to the Board's authority to require modification or
termination of the activities of a bank holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's Regulations and Orders issued thereunder.
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Cleveland, acting pursuant to delegated authority.
By order of the Board of Governors, effective
March 25, 1991.
Voting for this action action: Chairman Greenspan and
Governors Angell, Kelley, LaWare, and Mullins.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
Citicorp
New York, New York
Order Approving
Association
the Acquisition
of a
Savings
Citicorp, N e w York, N e w York ("Citicorp"), a bank
holding company within the meaning of the Bank Holding Company Act ("BHC Act"), has applied for the
Board's approval pursuant to section 4(c)(8) of the
BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23(a)
of the Board's Regulation Y (12 C.F.R. 225.23(a)), to
acquire Brookfield Bancshares Corporation, Brookfield, Illinois ("Brookfield"), and Brookfield's wholly
owned subsidiary, Brookfield Federal Bank for Savings, Brookfield, Illinois, a savings association
("Brookfield Savings"). 1
1. Citicorp is proposing to merge Brookfield Savings into Citibank,
Federal Savings Bank, Oakland, California ("Citibank FSB (California)"), a wholly owned subsidiary of Citicorp. Citicorp will create a
shell subsidiary of Citicorp Mortgage, Inc., St. Louis, Missouri
Legal Developments
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 49,704 (1990)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the BHC Act.
The Board has determined that the operation of a
savings association is closely related to banking and
permissible for bank holding companies. 12 C.F.R.
225.25(b)(9). In making this determination, the Board
required that savings associations acquired by bank
holding companies conform their direct and indirect
activities to those permissible for bank holding companies under section 4 of the BHC Act. Citicorp has
committed to conform all activities of Brookfield Savings to the requirements of section 4 and Regulation
Y. 2 In order to approve the application, the Board also
is required by section 4(c)(8) of the BHC Act to
determine that the ownership and operation of Brookfield Savings by Citicorp "can reasonably be expected
to produce benefits to the public . . . that outweigh
possible adverse effects, such as undue concentration
of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices."
12 U.S.C. § 1843(c)(8).
Citicorp, with total consolidated assets of $217
billion, operates 11 banking and savings association
subsidiaries in Arizona, Delaware, Florida, Maine,
Maryland, Nevada, New York, and South Dakota.
Citicorp also engages through several subsidiaries in
permissible nonbanking activities.
Citicorp is the sixth largest depository organization
in Illinois and controls deposits of approximately $3.6
billion, representing 3.0 percent of the total deposits in
banks and savings associations in the state. 3 Brookfield Bancshares is the 87th largest depository organization in Illinois, controlling deposits of $213.5 mil("CMI"), which subsidiary will be merged into Brookfield. CMI then
will dissolve Brookfield and cause Brookfield to merge with and into
Citibank FSB (California), the surviving entity. Citicorp has recently
merged its Washington, D.C. and Illinois savings association subsidiaries into Citibank FSB (California).
2. Brookfield Savings owns three subsidiaries that are engaged
wholly or partly in activities that are permissible for bank holding
companies under the BHC Act: Brookfield Service Corporation
("BSC"), which is engaged in insurance agency activities; as well as
West-Cook DuPage Development Company ("West-Cook") and
Hutchinson Homes, Inc. ("Hutchinson"), both of which engage in
real estate development activities. Citicorp has committed that it will
not undertake any new real estate development activities following its
acquisition of Brookfield Savings, and will divest West-Cook and
Hutchinson within two years of the date of consummation of this
proposal. Citicorp also has committed that it will terminate any
impermissible insurance activities of BSC upon consummation of this
proposal and will cease renewing existing policies within a reasonable
time.
3. State deposit data are as of December 31, 1988. Market data are
as of June 30, 1989.
333
lion. After consummation of the proposed acquisition,
Citicorp would remain the sixth largest depository
organization in Illinois, controlling total deposits of
approximately $3.8 billion, representing 3.1 percent of
the total deposits in banks and savings associations in
the state. In the Board's view, consummation of the
proposal would not have a significantly adverse effect
on the concentration of resources in depository institutions in Illinois.
Citicorp and Brookfield Savings compete directly in
one banking market in Illinois. In the Chicago banking
market, 4 Citicorp is the sixth largest depository organization, controlling $3.5 billion in deposits, representing 3.0 percent of the total deposits in banks and
savings associations in the market ("market deposits"). Brookfield Savings is the 81st largest depository
institution, controlling less than one percent of market
deposits. Upon consummation of this proposal, Citicorp would remain the sixth largest depository organization in the Chicago market, with 3.2 percent of
market deposits. The Chicago banking market is considered to be unconcentrated, with the four largest
depository institutions currently controlling 36.1 percent of the market deposits. After consummation of
the proposal, the market would remain unconcentrated, and the Herfindahl-Hirschman Index ("HHI")
would increase by one point, to a level of 485. 5 Based
on all the facts of record, the Board has determined
that consummation of this proposal would not have a
significantly adverse effect on the concentration of
resources or on competition in any relevant banking
market.
In light of the considerations discussed above, and
based on all of the facts of record, the Board has
determined that consummation of this proposal is not
likely to result in any other significantly adverse
effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of interests,
or unsound banking practices. Financial and manage-
4. The Chicago banking market consists of Cook, DuPage, and Lake
Counties, all in Illinois.
5. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (1984), a market in which the post-merger
HHI is between 1000 and 1800 is considered moderately concentrated.
In such markets, the Justice Department is unlikely to challenge a
merger if an increase in the HHI is less than 100 points. Any market
in which the post-merger HHI is over 1800 is considered to be highly
concentrated, and the Justice Department is likely to challenge a
merger that increases the HHI by more than 50 points, unless other
factors indicate that the merger will not substantially lessen competition. The Justice Department has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating anticompetitive effects) unless the postmerger HHI market is at least 1800 and the merger increases the HHI
by at least 200 points. The Justice Department has stated that the
higher than normal HHI thresholds for screening bank mergers for
anticompetitive effects implicitly recognizes the competitive effect of
limited-purpose lenders and other non-depository financial entities.
334
Federal Reserve Bulletin • May 1991
rial factors in the context of this application are
consistent with approval. Accordingly, based on the
consideration of all of the facts of record, the Board
has determined that the balance of the public interest
factors that it is required to consider under section
4(c)(8) of the BHC Act is favorable and consistent with
approval of Citicorp's application to acquire Brookfield Savings.
Accordingly, the Board has determined that the
proposed application pursuant to section 4(c)(8) of the
BHC Act should be, and hereby is, approved. This
determination is subject to all the conditions set forth
in the Board's Regulation Y, including sections
225.4(d) and 225.23(b)(3), and to the Board's authority
to require such modification or termination of the
activities of a bank holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with, or to prevent evasion of, the provisions and purposes of the BHC Act and the Board's
regulations and orders issued thereunder.
The transactions approved in this Order shall be
made not later than three months after the effective
date of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of N e w York, pursuant to delegated authority.
By order of the Board of Governors, effective
March 18, 1991.
Voting for this action action: Chairman Greenspan and
Governors Angell, Kelley, and LaWare. Abstaining from this
action: Governor Mullins.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
First Interstate Bancorp
Los Angeles, California
Order Approving Application to Engage in Asset
Management,
Servicing, and Collection
Activities
First Interstate Bancorp, Los Angeles, California
("First Interstate"), a bank holding company within
the meaning of the Bank Holding Company Act
( " B H C Act"), has applied under section 4(c)(8) of the
BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.23(a)(3) of the Board's Regulation Y (12 C.F.R.
225.23(a)(3)), to engage de novo in asset management,
servicing, and collection activities through FAES,
Inc., Denver, Colorado ("FAES").
F A E S would provide asset management services to
the Resolution Trust Corporation ("RTC") and the
Federal Deposit Insurance Corporation ("FDIC"). In
addition, First Interstate proposes to provide these
services both to unaffiliated third party investors that
purchase pools of assets that have been assembled by
the RTC or the FDIC from troubled financial institutions, and generally to unaffiliated financial institutions
with troubled assets. 1
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 29,667 (1990)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 4(c)(8)
of the BHC Act.
First Interstate, with total consolidated assets of
$51.4 billion, is the 11th largest banking organization in
the nation. First Interstate operates 25 subsidiary
banks and engages directly and through subsidiaries in
a variety of permissible nonbanking activities. 2
Under the proposal, FAES would not acquire an
ownership interest in the assets that it manages or in
the institutions for which it provides asset management services. 3 In addition, FAES would not engage
in providing real property management or real estate
brokerage services as part of its proposed activities. 4
The Board has previously determined that providing
asset management services for assets originated by
financial institutions and their bank holding company
affiliates is an activity that is closely related to banking
for purposes of the BHC Act. 5 First Interstate has
proposed to conduct these activities under the same
1. First Interstate must obtain the prior approval of the Board before
providing asset management services in connection with pools of
assets that were not originated or held by financial institutions and
their affiliates.
2. Data are as of December 31, 1990.
3. Asset management encompasses the liquidation (or other disposition) of loans and their underlying collateral, including real estate
and other assets acquired through foreclosure or in satisfaction of
debts previously contracted ("DPC property"). Specific individual
activities include: classifying and valuing loan portfolios; filing reviews of loan documentation; developing collection strategies; negotiating renewals, extensions, and restructuring agreements; initiating
foreclosure, bankruptcy, and other legal proceedings, where appropriate; and developing and implementing market strategies for the sale
or refinancing of individual loans and for the packaging and sale of
whole or securitized loan portfolios. In addition, First Interstate
would conduct and review (either directly or through independent
contractors) appraisals and environmental inspections; provide asset
valuations; perform cash flow and asset review analyses; contract
with and supervise independent property managers; and lease (either
directly or through independent contractors) real estate and other
DPC property. First Interstate also would dispose of DPC property by
developing and implementing marketing strategies for the sale of DPC
property, either individually or packaged for investors or developers.
4. First Interstate will contract with independent third parties to
obtain these services for assets under FAES's management.
5. See NCNB Corporation, 77 Federal Reserve Bulletin 124 (1991);
First Florida Banks, Inc., 74 Federal Reserve Bulletin 111 (1988). The
Management Consignment Program referenced in First Florida involved corporations managing assets of failed financial institutions
acquired by the Federal Home Loan Bank Board. In First Florida the
Board also permitted bank holding companies to provide asset management services for thrifts managed by the Federal Savings and Loan
Insurance Corporation.
Legal Developments
terms, and subject to the same conditions as in previous Board orders regarding this activity.
In this regard, First Interstate has made commitments to address the concerns raised in NCNB Corporation and First Florida regarding a bank holding
company's ability to control an institution through the
terms of an asset management agreement without the
necessary regulatory approvals. For example, First
Interstate has committed that it will not own the stock
of, or be represented on the board of directors of any
unaffiliated institution for which FAES provides asset
management services. In addition, First Interstate has
committed that FAES will not establish policies or
procedures of general applicability, and that FAES's
services for unaffiliated financial institutions would be
limited to asset management, servicing, and collection
activities. 6
The type of asset management activities proposed
by First Interstate are the same as those previously
approved by the Board in NCNB Corporation. Financial institutions and their affiliates would be the originators of the assets managed by FAES. Accordingly,
First Interstate would only manage assets that its
financial institution affiliates would have authority to
originate and own.
The Board is also required to determine whether the
performance of the proposed activity by First Interstate is a proper incident to banking—that is, whether
the proposed activity "can reasonably be expected to
produce benefits, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices."
12 U.S.C. § 1843(c)(8).
Consummation of the proposal can reasonably be
expected to result in public benefits. First Interstate's
proposal would facilitate the disposal of assets of
financial institutions in receivership as well as financial
institutions with troubled financial assets. Moreover,
the efficient disposition of such assets can reasonably
be expected to produce benefits to the public. FAES
will own no equity in the institutions for which it
provides asset management services or in the assets
that it manages. First Interstate's de novo entry into
the market will increase competition for these services.
First Interstate has indicated that it may, in certain
instances, seek approval to acquire institutions whose
6. First Interstate also will provide its services for a limited period
of time. The Board notes that, while First Interstate will manage
assets on an ongoing basis, the owner of the assets will retain the right
to make all final decisions regarding asset dispositions and to terminate First Interstate as an asset manager.
335
assets are being managed by FAES. In NCNB Corporation and First Florida, the Board expressed concern
that a bank holding company might obtain confidential
information in the course of providing its asset management services that would provide the bank holding
company with a competitive advantage over other
institutions in the bidding process for the failed institution under management. The Board also noted that
such information could give the managing bank holding company a competitive advantage over the ultimate acquiror of the failed institution in markets where
they both compete.
To address these concerns, First Interstate has
committed that it will establish and implement procedures to preserve the confidentiality of information
obtained in the course of providing asset management
services. 7 These procedures will prevent the use of
information obtained by FAES through its asset management activities in the course of preparing any bid
that First Interstate may prepare to acquire the institution managed by FAES, and will prevent First
Interstate from competing unfairly against the winning
bidder in the relevant market.
There is no evidence in the record to indicate that
consummation of this proposal is otherwise likely to
result in any significantly adverse effects, such as
undue concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound banking
practices. Accordingly, on the basis of all of the facts
of record and commitments made by First Interstate,
the Board concludes that the public benefits that
would result from approval of this application outweigh any potential adverse effects, and that the public
interest factors it must consider under section 4(c)(8)
of the BHC Act are consistent with approval. The
financial and managerial resources of First Interstate
and its subsidiaries are also consistent with approval.
Based upon the foregoing and all of the other facts of
record, including commitments made by First Interstate and conditions in this Order, the Board has
determined to approve, and hereby does approve, this
application. The Board's determination is subject to all
of the conditions set forth in the Board's Regulation Y,
including those in sections 225.4(d) and 225.23(b), and
to the Board's authority to require modification or
termination of the activities of a bank holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's Regulations and Orders issued thereunder.
7. First Interstate's procedures will be subject to review by the
Federal Reserve System.
336
Federal Reserve Bulletin • May 1991
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of San
Francisco, acting pursuant to delegated authority.
By order of the Board of Governors, effective
March 25, 1991.
Voting for this action action: Chairman Greenspan and
Governors Angell, Kelley, La Ware, and Mullins.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
Grenada Sunburst System Corporation
Grenada, Mississippi
Order Approving Application to Provide
Stand-Alone
Investment Advisory Services, to Offer Investment
Advisory and Securities Brokerage Services on a
Combined Basis, and to Act as a "Riskless
Principal" in Buying and Selling Securities
Grenada Sunburst System Corporation, Grenada, Mississippi ("Grenada"), a bank holding company within
the meaning of the Bank Holding Company Act
("BHC Act"), has applied for the Board's approval
under
section
4(c)(8)
of
the
BHC
Act
(12 U . S . C . § 1843(c)(8)), for its de novo subsidiary,
Sunburst Financial Group, Inc., Jackson, Mississippi
("Sunburst"), to provide stand-alone investment advisory services, to offer investment advisory and securities brokerage services on a combined basis to
institutional and retail customers ("full-service brokerage"), as well as to purchase and sell all types of
securities on the order of investors as a "riskless
principal."
Grenada, with approximately $1.8 billion in consolidated assets, operates banking subsidiaries in Mississippi and Louisiana. Grenada is the third largest banking organization in Mississippi and the 13th largest
banking organization in Louisiana. 1 Grenada engages
directly and through subsidiaries in a variety of permissible nonbanking activities. Sunburst, a de novo
subsidiary, will be a broker-dealer registered with the
Securities Exchange Commission and subject to the
recordkeeping, reporting, fiduciary standards, and
other requirements of the Securities Exchange Act of
1934 and the National Association of Securities Dealers.
Notice of the application, affording interested persons an opportunity to submit comments, has been
1. Asset data are as of September 30, 1990. Rankings are as of June
30, 1990.
duly published (56 Federal Register 3473 (1991)). The
time for filing comments has expired and the Board has
considered the application and all comments received
in light of the public interest factors set forth in section
4(c)(8) of the BHC Act.
Sunburst proposes to provide stand-alone investment advisory services, as well as full-service brokerage services. The Board has previously determined by
regulation that the provision of investment advisory
services is a permissible nonbanking activity for bank
holding companies under section 4(c)(8) of the BHC
Act and section 225.25(b)(4) of Regulation Y,
12 C.F.R. 225.25(b)(4). Sunburst proposes to engage
in this activity subject to the limitations contained in
the Board's Regulation Y. The Board also has determined by order that full-service brokerage is a permissible nonbanking activity for bank holding companies. 2 Sunburst proposes to engage in full-service
brokerage in accordance with all of the conditions set
forth in those orders.
In addition, Sunburst will provide discretionary
investment management for institutional customers
only, under terms and conditions previously approved
by the Board. 3 Such discretionary investment management services will not be provided for retail customers.
Grenada also proposes that Sunburst act as a "riskless principal" in buying and selling securities. The
Board previously has determined by order that, subject to certain prudential limitations established to
address the potential for conflicts of interests, unsound
banking practices or other adverse effects, the proposed "riskless principal" activities are so closely
related to banking as to be a proper incident thereto
within the meaning of section (4)(c)(8) of the BHC Act.
The Board also has determined that acting as agent in
purchasing and selling securities on the order of investors as a "riskless principal" does not constitute
underwriting and dealing in securities for purposes of
section 20 of the Glass-Steagall Act, and that revenue
derived from this activity is not subject to the 10
percent revenue limitation on ineligible securities underwriting and dealing. 4 Grenada has committed that
Sunburst will conduct its "riskless principal" activities using the same methods and procedures, and
subject to all of the prudential limitations approved by
2. See PNC Financial Corporation, 75 Federal Reserve Bulletin 396
(1989) ("PNC"); Bankers Trust New York Corporation, 74 Federal
Reserve Bulletin 695 (1988) ("Bankers Trust /")
3. See J.P. Morgan and Company, Inc., 73 Federal Reserve
Bulletin 810 (1987); The Chase Manhattan Corporation, 74 Federal
Reserve Bulletin 704 (1988).
4. See J.P. Morgan and Company, Inc., 76 Federal Reserve
Bulletin 26 (1990) ("J.P. Morgan"); Bankers Trust New York Corporation, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust II").
Legal Developments
the Board in the Bankers Trust II and J.P. Morgan
orders.
Under the framework established in this and prior
decisions, consummation of this proposal is not likely
to result in any significantly adverse effects, such as
undue concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound banking
practices. Consummation of the proposal would provide added convenience to Grenada's customers. In
addition, the Board expects that the de novo entry of
Grenada into the market for these services would
increase the level of competition among providers of
these services. Accordingly, the Board has determined
that performance of the proposed activities by
Grenada can reasonably be expected to produce public
benefits which would outweigh adverse effects under
the proper incident to banking standard of section
4(c)(8) of the BHC Act.
Based on the above, the Board has determined to,
and hereby does, approve the application subject to all
of the terms and conditions set forth in this order, and
in the above-noted Board orders that relate to these
activities. The Board's determination is also subject to
all of the conditions set forth in the Board's Regulation
Y, including those in sections 225.4(d) and 225.23(b),
and to the Board's authority to require modification or
termination of the activities of a bank holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's regulations and orders issued thereunder.
This transaction shall not be consummated later
than three months after the effective date of this order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of St. Louis,
pursuant to delegated authority.
By order of the Board of Governors, effective
March 27, 1991.
Voting for this action action: Chairman Greenspan and
Governors Angell, Kelley, LaWare, and Mullins.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
337
of the BHC Act (12 U . S . C . § 1843(c)(8)), and section
225.23(a)(3) of the Board's Regulation Y (12 C.F.R.
225.23(a)(3)) to engage de novo through its subsidiary,
Mitsubishi Capital Market Services, Inc., N e w York,
N e w York ("Company"), in the following activities:
(1) Intermediating in the international swap markets
by acting as an originator and principal in interest
rate swap and currency swap transactions;
(2) Acting as an originator and principal with respect
to certain interest rate and currency risk-management products such as caps, floors and collars, as
well as options on swaps, caps, floors and collars
("swap derivative products");
(3) Acting as a broker or agent with respect to the
foregoing transactions or instruments; and
(4) Acting as adviser to institutional customers regarding financial strategies involving interest rate
and currency swaps and swap derivative products.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 52,218 (1990)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 4 of the
BHC Act.
With total consolidated assets equivalent to approximately $354 billion, Mitsubishi is the fourth largest
banking organization in the world. 1 In the United
States, Mitsubishi owns a bank subsidiary in San
Francisco, California; an agency in Houston, Texas;
and branches in N e w York, N e w York; Chicago,
Illinois; and Los Angeles, California. It engages in
limited trust activities, lending, investment advising,
and real and personal property leasing through subsidiaries in N e w York, N e w York, and futures commission merchant activities through a subsidiary in Chicago, Illinois.
The Board previously has determined by order that
the proposed activities are closely related to banking
and permissible for bank holding companies within the
meaning of section 4(c)(8) of the BHC Act. 2 Mitsubishi
proposes to engage in these swap activities in accordance with all of the provisions and conditions set forth
in these orders. 3
The Mitsubishi Bank, Limited
Tokyo,Japan
Order Approving Application to Engage in Various
Interest Rate and Currency Swap
Activities
The Mitsubishi Bank, Limited, Tokyo, Japan ("Mitsubishi"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
applied for the Board's approval under section 4(c)(8)
1. Asset and ranking data are as of March 31, 1990.
2. See, e.g., The Sanwa Bank, Limited, 77 Federal Reserve Bulletin
64 (1991); The Fuji Bank, Limited, 76 Federal Reserve Bulletin 768
(1990); The Sumitomo Bank, Limited, 75 Federal Reserve Bulletin 582
(1989).
3. As proposed by Mitsubishi, Company typically would be willing,
at the request of a customer, to price and enter into a swap or swap
derivative product transaction either as purchaser or seller. Mitsubishi
undertakes that Company will not exceed the position limits, described below, established from time to time with respect to its swap
and swap derivative products. As indicated above, the Board previ-
338
Federal Reserve Bulletin • May 1991
In order to approve this application, the Board is
required to determine that the performance of the
proposed activities by Mitsubishi "can reasonably be
expected to produce benefits to the public . . . that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." 12 U.S.C. § 1843(c)(8).
Company appears to be capable of managing the
risks associated with the proposed activities. Mitsubishi, which has extensive experience in lending and
financing services worldwide, has undertaken to provide credit screening for all potential counterparties of
Company through its credit desk services in New
York, New York. In appropriate cases, Company will
obtain a letter of credit on behalf of, or collateral from,
a counterparty. In addition, Company will establish
separate credit risk exposure limits for each swap
counterparty. Company will monitor this exposure on
an ongoing basis, in the aggregate and with respect to
each counterparty. Senior management will be periodically informed of the potential risk to which Company
is exposed.
In order to manage the risk associated with adverse
changes in interest or currency exchange rates ("price
risk"), Company will seek to match all the swaps and
related instruments in which it is principal and will
hedge any unmatched positions pending a suitable
match. Company will not enter into unmatched or
unhedged swaps for its own account for speculative
purposes. Company's management will set absolute
limits on the level of risk to which its swap portfolio
may be exposed. Company's exposure to price risk
will be monitored by both business management and
internal auditing personnel to guarantee compliance
with the risk limitations imposed by management.
Auditing personnel will report directly to senior management to ensure that any violations of portfolio risk
limitations are reported and corrected.
With respect to the risk associated with the potential
for differences between the floating rate indices on two
matched or hedged swaps ("basis risk"), Company's
management will impose absolute limits on the aggregate basis risk to which Company's swaps portfolio
may be exposed. If the level of risk threatens to
exceed the limits at any time, Company will actively
seek to enter into matching transactions for its unmatched, hedged positions. Company's internal auditing staff, together with management, will monitor
ously has approved these activities as permissible for bank holding
companies. Mitsubishi has characterized these activities as "marketmaking" in swaps and swap derivative products.
compliance with the management-imposed basis risk
limits. 4
In addition, Company intends to minimize operations risk through the recruitment and training of an
experienced back-office support staff and the use of a
separate operational and data processing structure for
processing swap and hedging transactions.
In order to minimize any possible conflicts of interests between Company's role as a principal or broker
in swap transactions and its role as advisor to potential
counterparties, Company will disclose to each customer the fact that Company may have an interest as a
counterparty principal or broker in the course of
action ultimately chosen by the customer. Also, in any
case in which Company has an interest in a specific
transaction as an intermediary or principal, Company
will advise its customer of that fact before recommending participation in that transaction. 5 In addition,
Company's advisory services will be offered only to
sophisticated institutional customers who would be
unlikely to place undue reliance on investment advice
received and better able to detect investment advice
motivated by self-interest. 6
The Board has expressed its concerns regarding
conflicts of interests and related adverse effects that,
absent certain limitations, may be associated with
financial advisory activities. In order to address these
potential adverse effects, Mitsubishi has committed
that:
(1) Company's financial advisory activities will not
encompass the performance of routine tasks or
operations for a client on a daily or continuous
basis;
4. Mitsubishi will monitor risk factors unique to options on a
"real-time" basis and has established risk limits with respect to all of
these factors. Mitsubishi is setting limits on other risks related to
options besides volatility risk.
5. In any transaction in which Company arranges a swap transaction
between an affiliate and a third party, the third party will be informed
that Company is acting on behalf of an affiliate.
6. Mitsubishi defines an institutional customer as:
(A) a bank (acting in an individual or fiduciary capacity), an
insurance company, a registered investment company under the
Investment Company Act of 1940, or a corporation, partnership,
trust, proprietorship, organization or institutional entity with assets
exceeding $1 million that regularly engages in transactions in
securities;
(B) an employee benefit plan with assets exceeding $1 million or
whose investment decisions are made by a bank, insurance company or investment advisor registered under the Investment Advisers Act of 1940;
(C) a natural person whose individual net worth (or joint net worth
with his or her spouse) at the time of receipt of Company's services
exceeds $1 million;
(D) a broker-dealer or options trader registered under the Securities
Exchange Act of 1934; or other securities, investment or banking
professional;
(E) any government or government entity; or
(F) an entity all of the equity owners of which are institutional
customers.
Legal Developments
(2) Disclosure will be made to each potential client
of Company that Company is an affiliate of Mitsubishi;
(3) Company will not make available to Mitsubishi
or any of Mitsubishi's subsidiaries confidential information received from Company's clients, except
with the client's consent; and
(4) Advice rendered by Company on an explicit fee
basis will be without regard to correspondent balances maintained by a client of Company at Mitsubishi or any of Mitsubishi's depository subsidiaries.
In every case involving a nonbanking acquisition by
a bank holding company under section 4 of the BHC
Act, the Board considers the financial condition and
resources of the applicant and its subsidiaries and the
effect of the transaction on these resources. 7 After
making adjustments to reflect Japanese banking and
accounting principles, including consideration of a
portion of unrealized appreciation in Mitsubishi's portfolio of equity securities, the Board concludes that
financial considerations are consistent with approval
of this application. The managerial resources of Mitsubishi are also consistent with approval.
Consummation of the proposal would provide added
convenience to Mitsubishi's customers. In addition,
the Board expects that the de novo entry of Mitsubishi
into the market for these activities would increase the
level of competition among providers of these services. Under the framework established in this and
prior decisions, consummation of this proposal is not
likely to result in any significant adverse effects, such
as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound
banking practices. Accordingly, the Board has determined that the performance of the proposed activities
by Mitsubishi can reasonably be expected to produce
benefits to the public.
Based on the above, the Board has determined to,
and hereby does, approve the application subject to
the commitments made by Mitsubishi, as well as all of
the terms and conditions set forth in this order and in
the above-noted Board orders that relate to these
activities. The Board's determination is also subject to
all of the conditions set forth in Regulation Y, including those in sections 225.4(d) and 225.23(b), and to the
Board's authority to require modification or termination of the activities of a bank holding company or any
of its subsidiaries as the Board finds necessary to
assure compliance with, and to prevent evasion of, the
7. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal
Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal
Bulletin 155, 156 (1987).
Reserve
Reserve
339
provisions of the BHC Act and the Board's regulations
and orders issued thereunder.
This transaction shall not be consummated later
than three months after the effective date of this order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of San Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
March 13, 1991.
Voting for this action action: Governors Angell, Kelley,
LaWare, and Mullins. Absent and not voting: Chairman
Greenspan.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
The Sumitomo Bank, Limited
Osaka, Japan
Order Approving Application
Nonbanking
Activities
to Engage in Certain
The Sumitomo Bank, Limited, Osaka, Japan ("Sumitomo"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
applied for the Board's approval under section 4(c)(8)
of the BHC Act (12 U . S . C . § 1843(c)(8)) for its wholly
owned subsidiary, Sumitomo Bank Securities, Inc.,
N e w York, N e w York ("Company") to engage
de novo in the following activities:
(1) To act as agent in the private placement of all
types of securities, including providing related advisory services;
(2) To buy and sell all types of securities on the
order of investors as a "riskless principal";
(3) To provide investment advisory and brokerage
services on a combined basis ("full-service brokerage") to retail and institutional customers;
(4) To provide investment advisory services to retail
and institutional customers pursuant to sections
225.25(b)(4)(i)-(v) of Regulation Y (12 C.F.R.
225.25(b)(4)(i)-(v));
(5) To provide securities brokerage services and
related securities credit services pursuant to section
225.25(b)(15) of the Board's Regulation Y
(12 C.F.R. 225.25(b)(15)>; and
(6) To underwrite and deal in obligations of the
United States, general obligations of the states and
their political subdivisions, and other obligations
that a state member bank of the Federal Reserve
System may underwrite and deal in ("bank-eligible
340
Federal Reserve Bulletin • May 1991
securities") pursuant to section 225.25(b)(16) of the
Board's Regulation Y (12 C.F.R. 225.25(b)(16)).»
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (56 Federal Register 2181 (1991)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the BHC Act.
Sumitomo, with total consolidated assets of $406.6
billion, is the third largest banking organization in the
world. 2 Sumitomo controls banks in California and
Hawaii. In addition, Sumitomo operates branches in
California, Illinois, and New York, and agencies in
California, Georgia, and Texas. Sumitomo also engages in various nonbanking activities through a number of subsidiaries. Company will be a broker-dealer
registered with the Securities Exchange Commission
and subject to the record keeping, reporting, fiduciary
standards, and other requirements of the Securities
Exchange Act of 1934 and the National Association of
Securities Dealers.
Private Placement
Activities
and "Riskless
Principal"
The Board previously has determined by order that,
subject to certain prudential limitations that address
the potential for conflicts of interests, unsound banking practices or other adverse effects, the proposed
private placement and "riskless principal" activities
are so closely related to banking as to be a proper
incident thereto within the meaning of section 4(c)(8)
of the BHC Act. The Board also has determined that
acting as agent in the private placement of securities,
and purchasing and selling securities on the order of
investors as a "riskless principal" do not constitute
underwriting and dealing in securities for purposes of
section 20 of the Glass-Steagall Act, and that revenue
derived from these activities is not subject to the 10
percent revenue limitation on ineligible securities underwriting and dealing. 3 Sumitomo has committed that
Company will conduct its private placement and "risk-
1. Company will also engage in the following incidental activities:
engaging in repurchase and reverse repurchase transactions on such
securities, collateralized borrowing and lending of such securities, and
providing clearing, settling, accounting, record keeping and other
ancillary services to those counterparties with which it deals that do
not maintain accounts with clearing agencies. The Nippon Credit
Bank, Ltd., 75 Federal Reserve Bulletin 308 (1989); The Long-Term
Credit Bank of Japan, 14 Federal Reserve Bulletin 573 (1988); The
Sanwa Bank, Limited, 74 Federal Reserve Bulletin 578 (1988).
2. Data are as of March 31, 1990.
3. J.P. Morgan and Company, Inc., 76 Federal Reserve Bulletin 26
(1990) {"J.P. Morgan")-, Bankers Trust New York Corporation, 75
Federal Reserve Bulletin 829 (1989) ("Bankers Trust").
less principal" activities using the same methods and
procedures, and subject to the same prudential limitations established by the Board in approving this activity, as modified to reflect Sumitomo's status as a
foreign bank. 4
Sumitomo has proposed to have its U.S. affiliates,
branches or agencies extend credit to an issuer whose
debt securities have been placed by Company where
the proceeds would be used to pay the principal
amount of the securities at maturity. Sumitomo has
committed that these extensions of credit will conform
to the limitations set forth in the Board's decision in
J.P. Morgan, including the requirements that a period
of at least three years elapse from the time of the
placement of the securities to the decision to extend
credit, that Sumitomo maintain adequate documentation of these transactions and decisions, and that the
extensions of credit meet prudent and objective standards, as well as the standards set out in section 23B of
the Federal Reserve Act. 5 The Federal Reserve Bank
of San Francisco will closely review loan documentation of U.S. affiliates to ensure that an independent
and thorough credit evaluation has been undertaken
with respect to the participation of the bank in these
credit extensions to issuers of securities privately
placed by an agent affiliated with the bank.
Sumitomo also has proposed to have Company
place securities with its parent holding company or
with a nonbank subsidiary of the parent company
consistent with the Board's ruling in J.P. Morgan. In
this regard, Sumitomo will establish both individual
and aggregate limits on the investment by affiliates of
Company in any particular issue of securities that is
placed by Company and will establish appropriate
internal policies, procedures, and limitations regarding
the amount of securities of any particular issue placed
by Company that may be purchased by Sumitomo and
each of its nonbanking subsidiaries, individually and in
the aggregate. 6 These policies and procedures, as well
as the purchases themselves, will be reviewed by the
Federal Reserve Bank of San Francisco.
4. Creditanstalt-Bankverein, 11 Federal Reserve Bulletin 183 (1991);
The Mitsui Taiyo Kobe Bank, Limited, 11 Federal Reserve Bulletin
116 (1991); Canadian Imperial Bank of Commerce/The Royal Bank of
Canada/Barclays PLC, 76 Federal Reserve Bulletin 158 (1990); J.P.
Morgan; Bankers Trust.
5. 12 U.S.C. § 371c-l.
6. The limit established shall not exceed 50 percent of the issue
being placed. Additionally, in the development of these policies and
procedures, Sumitomo will incorporate, with respect to placements of
securities, the limitations established by the Board in condition 12 of
its order regarding aggregate exposure of Sumitomo's U.S. subsidiaries and offices on a consolidated basis to any single customer whose
securities are underwritten or dealt in by Company. J.P. Morgan &
Company, Incorporated, The Chase Manhattan Corporation, Bankers Trust New York Corporation, Citicorp and Security Pacific
Corporation, 75 Federal Reserve Bulletin 192 (1989).
Legal Developments
Brokerage, Investment
Dealing
Activities
Advisory,
Underwriting
and
The Board previously has determined by order that
full-service brokerage is a permissible nonbanking
activity for bank holding companies under section
4(c)(8) of the BHC Act. 7 Sumitomo proposes to engage
in full-service brokerage in accordance with all of the
conditions set forth in these orders.
In addition, Company will provide discretionary
investment management for institutional customers
only, under the same terms and conditions as previously approved by the Board. 8 Such discretionary
investment management services will not be provided
for retail customers.
Sumitomo also proposes that Company engage in
investment advisory and securities brokerage activities on a separate basis pursuant to the Board's
Regulation Y . 9 Finally, Sumitomo proposes that Company underwrite and deal in securities that state member banks are permitted to underwrite and deal in
under section 16 of the Banking Act of 1933, 10 and as
permitted by section 225.25(b)(16) of the Board's
Regulation Y . u
Financial Factors,
Considerations
Managerial
Resources
and
Other
In order to approve this application, the Board is
required to determine that the performance of the
proposed activities of Sumitomo "can reasonably be
expected to produce benefits to the public . . . that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." 12 U . S . C . § 1843(c)(8).
In every case involving a nonbanking acquisition by
a bank holding company under section 4 of the BHC
Act, the Board considers the financial condition and
resources of the applicant and its subsidiaries and the
effect of the transaction on these resources. 1 2 After
making adjustments to reflect Japanese banking and
accounting principles, including consideration of a
portion of unrealized appreciation in Sumitomo's portfolio of equity securities consistent with the Basle
7. See PNC Financial Corporation, 75 Federal Reserve Bulletin 396
(1989); Bankers Trust New York Corporation, 74 Federal Reserve
Bulletin 695 (1988).
8. See J.P. Morgan and Company, Inc., 73 Federal Reserve
Bulletin 810 (1987).
9. 12 C.F.R. 225.25(b)(4) and (15).
10. 12 U.S.C. §§ 24 (Seventh) and 335.
11. 12 C.F.R. 225.25(b)(16).
12. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve
Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve
Bulletin 155, 156 (1987).
341
capital framework, Sumitomo's capital ratio meets
United States standards. Accordingly, the Board concludes that financial considerations are consistent with
approval of this application. The managerial resources
of Sumitomo are also consistent with approval.
Consummation of the proposal would provide added
convenience to Sumitomo's customers. In addition,
the Board expects that the de novo entry of Sumitomo
into the market for these services would increase the
level of competition among providers of these services. Under the framework established in this and
prior decisions, consummation of this proposal is not
likely to result in any significant adverse effects, such
as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound
banking practices. Accordingly, the Board has determined that the performance of the proposed activities
by Sumitomo can reasonably be expected to produce
benefits to the public.
Based on the foregoing and other facts of record, the
Board has determined to, and hereby does, approve
the application subject to the commitments made by
Sumitomo, as well as all of the terms and conditions
set forth in this order and in the above-noted Board
orders that relate to these activities. The Board's
determination is also subject to all of the conditions set
forth in Regulation Y, including those in sections
225.4(d) and 225.23(b), and to the Board's authority to
require modification or termination of the activities of
a bank holding company or any of its subsidiaries as
the Board finds necessary to assure compliance with,
and to prevent evasion of, the provisions of the BHC
Act and the Board's regulations and orders issued
thereunder.
This transaction shall not be consummated later
than three months after the effective date of this order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of San Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
March 6, 1991.
Voting for this action action: Governors Angell, LaWare,
and Mullins. Voting against this action: Governor Seger.
Absent and not voting: Chairman Greenspan and Governor
Kelley.
JENNIFER J. JOHNSON
Associate
Dissenting
Statement
Secretary
of Governor
of the Board
Seger
I dissent from the Board's action in this case. I believe
that foreign banking organizations whose capital,
based on U . S . accounting principles, is below the
342
Federal Reserve Bulletin • May 1991
Board's minimum capital guidelines for U.S. banking
organizations have an unfair competitive advantage in
the United States over domestic banking organizations. In my view, such foreign organizations should
be judged against the same financial and managerial
standards, including the Board's capital adequacy
guidelines, as are applied to domestic banking organizations. Specifically, I believe that the capital adequacy of foreign banking organizations should be
measured without giving these organizations the benefit of adjustments that are not available to United
States banking organizations.
In addition, I am concerned that while some progress is being made in opening Japanese markets to
U.S. banking organizations and other financial institutions, U.S. banking organizations, in my opinion, are
still far from being afforded the full opportunity to
compete in Japan.
March 6, 1991
U.S. Bancorp
Portland, Oregon
Order Approving
Association
the Acquisition
of a Savings
U.S. Bancorp, Portland, Oregon ("U.S. Bancorp"), a
bank holding company within the meaning of the Bank
Holding Company Act ("BHC Act"), has applied
pursuant to section 4(c)(8) of the BHC Act
(12) U.S.C. § 1843(c)(8)) to acquire HeartFed Financial Corporation, Auburn, California ("HeartFed"),
and its wholly owned subsidiary, Heart Federal Savings and Loan Association, Auburn, California
("Heart Savings"), a savings association, pursuant to
section 225.25(b)(9) of the Board's Regulation Y
(12 C.F.R. 225.25(b)(9)).'
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 42,896 (1990)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the BHC Act.
The Board has previously determined that the operation of a savings association is closely related to
banking and permissible for bank holding companies.
12 C.F.R. 225.25(b)(9). In making this determination,
1. U.S. Bancorp is proposing to merge HFF Merger Corp., an
interim corporation organized solely to facilitate the acquisition, into
HeartFed, after which HeartFed will be dissolved or merged with and
into U.S. Bancorp. Heart Savings thereafter will be a direct savings
association subsidiary of U.S. Bancorp.
the Board required that savings associations acquired
by bank holding companies conform their direct and
indirect activities to those permissible for bank holding
companies under section 4 of the BHC Act. U.S.
Bancorp has committed to conform all activities of
HeartFed to the requirements of section 4 and Regulation Y. 2 In order to approve the application, the
Board also is required by section 4(c)(8) of the BHC
Act to determine that the ownership and operation of
HeartFed by U.S. Bancorp "can reasonably be expected to produce benefits to the public . . . that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." 12 U.S.C. § 1843(c)(8).
U.S. Bancorp, which operates eight subsidiary
banks in Washington, Oregon, California and Utah, is
the 73rd largest depository organization in California,
controlling deposits of $230.1 million, representing
less than 1 percent of the total deposits in the state. 3
Heart Savings operates offices in several Northern
California counties, and is the 62nd largest depository
organization in California, controlling deposits of
$704.6 million. After consummation of the proposed
acquisition, U.S. Bancorp will be the 17th largest
depository organization in California with aggregate
deposits of $934.7 million, representing less than one
percent of the total deposits in the state. In the Board's
view, consummation of the proposal would not have a
significantly adverse effect on the concentration of
resources in depository institutions in California.
U.S. Bancorp and Heart Savings compete directly
in two banking markets in California. 4 In the Placer
County banking market, 5 U.S. Bancorp is the eighth
largest of thirteen depository institutions, controlling
$24.3 million in deposits, representing 4.2 percent of
deposits of banks and thrift institutions in the market
2. HeartFed currently engages indirectly in impermissible real
estate and insurance activities through two existing subsidiaries. U.S.
Bancorp has committed to divest itself of impermissible real estate
investment and development activities within two years of consummation of the proposal. No new impermissible projects or investments
will be undertaken during this period. U.S. Bancorp also has committed not to engage in any impermissible securities activities, and to
terminate any impermissible insurance activities on consummation.
HeartFed may continue to service outstanding insurance policies sold
by HeartFed for a period of two years from consummation of the
proposal without renewing those policies.
3. State and market deposit data are as of June 30, 1989.
4. The pre-consummation market share statistics are based on
calculations in which the deposits of HeartFed and all other savings
associations are included at 50 percent. Upon consummation,
HeartFed will be affiliated with a commercial banking organization;
thus, on a pro forma basis, the deposits of HeartFed are included at
100 percent, while the deposits of other savings associations continue
to be included at 50 percent unless otherwise indicated.
5. The Placer County banking market consists of the cities and
towns of Auburn, Colfax, Foresthill, Lincoln, and Meadow Vista, all
in Placer County, California.
Legal Developments
("market deposits"). Heart Savings is the third largest
depository institution in the market, controlling $63.6
million in deposits, representing 10.9 percent of market deposits. Upon consummation of this proposal,
U . S . Bancorp would remain the third largest depository organization in the Placer County market, with
15.1 percent of market deposits, and the HerfindahlHirschman Index ("HHI") would increase by 204
points, to a level of 1456. 6
In the Sacramento banking market, 7 U . S . Bancorp
is the 26th largest of 51 depository institutions, controlling $62.6 million in deposits, representing less
than one percent of deposits of banks and thrift
institutions in the market. Heart Savings is the 25th
largest depository institution in the market, controlling
$65.2 million in deposits, representing less than one
percent of market deposits. Upon consummation of
this proposal, U.S. Bancorp would become the 16th
largest depository organization in the Sacramento
market, with 1.4 percent of market deposits. Based on
all the facts of record, the Board has determined that
consummation of this proposal would not have a
significantly adverse effect on the concentration of
resources or on competition in any relevant banking
market.
The financial and managerial resources of U.S.
Bancorp, HeartFed, and their depository institution
subsidiaries are, in the context of this proposal, consistent with approval. Upon consummation of this
proposal, U.S. Bancorp, HeartFed and their respective depository institution subsidiaries would meet all
applicable capital requirements. There is no evidence
in the record that consummation of this proposal is
likely to result in any significantly adverse effects,
such as undue concentration of resources, decreased
or unfair competition, conflicts of interest, or unsound
banking practices. Based on all the facts of record, the
Board has determined that the balance of the public
6. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (1984), a market in which the post-merger
HHI is between 1000 and 1800 is considered moderately concentrated.
The Justice Department has indicated that in such markets it is
unlikely to challenge a merger if an increase in the HHI is less than 100
points. Any market in which the post-merger HHI is over 1800 is
considered highly concentrated, and the Justice Department has
indicated that it is likely to challenge a merger that increases the HHI
by more than 50 points unless other factors indicate that the merger
will not substantially lessen competition. The Justice Department has
informed the Board that a bank merger or acquisition generally will
not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the
merger increases the HHI by at least 200 points. The Justice Department has stated that the higher than normal HHI thresholds for
screening bank mergers for anticompetitive effects implicitly recognizes the competitive effect of limited-purpose lenders and other
nondepository financial entities.
7. The Sacramento banking market is approximated by the Sacramento RMA, which consists of portions of El Dorado, Placer,
Sacramento and Yolo Counties, all in California.
343
interest factors that it is required to consider under
section 4(c)(8) of the BHC Act is favorable and consistent with approval.
Accordingly, the Board has determined that the
proposed application pursuant to section 4(c)(8) of the
BHC Act should be, and hereby is, approved. This
determination is subject to all the conditions set forth
in the Board's Regulation Y, including sections
225.4(d) and 225.23(b)(3), and to the Board's authority
to require such modification or termination of the
activities of a bank holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with, or to prevent evasion of, the provisions and purposes of the BHC Act and the Board's
regulations and orders issued thereunder.
The transactions approved in this Order shall be
made not later than three months after the effective
date of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of San Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
March 25, 1991.
Voting for this action action: Chairman Greenspan and
Governors Angell, Kelley, LaWare, and Mullins.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Norwest Corporation
Minneapolis, Minnesota
Order Approving
Companies
the Merger of Bank
Holding
Norwest Corporation, Minneapolis, Minnesota ("Norwest"), a bank holding company within the meaning of
the Bank Holding Company Act ( " B H C Act"), has
applied for the Board's approval under section 3(a)(5)
of the BHC Act (12 U.S.C. § 1842(a)(5)) to merge with
United Banks of Colorado, Inc., Denver, Colorado
("United Banks"), and thereby to acquire the 40
subsidiary banks of United Banks listed in the Appendix to this Order. Norwest has also applied for the
Board's approval under section 4(c)(8) of the BHC Act
to acquire the nonbanking subsidiaries of United
Banks listed in the Appendix.
Notices of the applications, affording interested
persons an opportunity to submit comments, have
been duly published (55 Federal Register 46,577 and
46,997 (1990)). The time for filing comments has ex-
344
Federal Reserve Bulletin • May 1991
pired, and the Board has considered the applications
and all comments received in light of the factors set
forth in sections 3(c) and 4(c)(8) of the BHC Act.
Section 3(d) of the BHC Act, the Douglas Amendment, prohibits the Board from approving an application by a bank holding company to acquire control of
any bank located outside of the bank holding company's home state, unless such acquisition is "specifically authorized by the statute laws of the State in
which [the] bank is located, by language to that effect
and not merely by implication." 1 Norwest's home
state is Minnesota, and United Banks's home state is
Colorado. 2 Under the statute laws of Colorado, effective January 1, 1991, any out-of-state bank holding
company may acquire financial institutions located in
Colorado so long as certain requirements are met. 3
Norwest's acquisition meets all of these requirements. 4 Accordingly, Norwest's proposal to acquire
United Banks is not barred by the Douglas Amendment.
Norwest, with total deposits of $19.9 billion, operates 34 banking subsidiaries located in Minnesota,
Wisconsin, Wyoming, Illinois, Indiana, Arizona,
Iowa, Montana, Nebraska, North Dakota, and South
Dakota. 5 Norwest is the second largest banking organization in Minnesota, controlling approximately $10.6
billion in deposits in Minnesota, representing 25.0
percent of the total deposits in commercial banking
organizations in the state. United Banks is the largest
banking organization in Colorado, controlling deposits
of $5.1 billion, representing 22.9 percent of the total
deposits in commercial banking organizations in the
state. Upon consummation of the proposed acquisition, Norwest would become the largest commercial
banking organization in Colorado, controlling deposits
1. 12 U.S.C. § 1842(d).
2. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
3. These requirements include that the Colorado bank holding
company must have been in operation since July 1,1988, or for at least
five years at the time of the acquisition; the acquiring bank holding
company may not control more than 25 percent of the aggregate of all
federally-insured financial institution deposits in Colorado; the acquiring bank holding company must have a total capital to total assets ratio
of 6 percent or more; the name that the acquiring bank holding
company proposes to use for the conduct of business in Colorado is
not identical to or deceptively similar to the name of an existing
Colorado bank or bank holding company or likely to cause the public
to be confused, deceived, or mistaken; and the acquiring bank holding
company must receive a certificate from the Colorado banking board
certifying that the acquisition complies with Colorado law.
4. United Banks has been in operation since July 1, 1988; Norwest
will not control 25 percent or more of the aggregate of all federallyinsured financial institution deposits in Colorado; and Norwest has a
total capital to total assets ratio that exceeds 6 percent.
5. Data are as of September 30, 1990, and are adjusted for all
Norwest acquisitions that have been approved through December 31,
1990.
of $5.1 billion in Colorado, representing 22.9 percent
of the total deposits in commercial banking organizations in the state. Consummation of the proposal
would not result in significantly adverse effects on the
concentration of banking resources in Minnesota or
Colorado.
Norwest does not compete directly with United
Banks in any banking market. Accordingly, consummation of this proposal would not result in a significantly adverse effect on competition in any relevant
banking market. In light of the existence of numerous
potential entrants into the relevant banking markets,
consummation of this proposal also would not result in
a significantly adverse effect on probable future competition in any relevant market.
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the record of the subsidiary banks of both
Norwest and United Banks under the Community
Reinvestment
Act
(12 U.S.C. § 2901 et
seq.)
("CRA"). The CRA requires the federal financial
supervisory agencies to encourage financial institutions to help meet the credit needs of the local communities in which they operate consistent with the safe
and sound operation of such institutions. To accomplish this end, the CRA requires the appropriate federal supervisory authority to "assess an institution's
record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the institution," and to take this record into
account in its evaluation of bank holding company
applications. 6
In this regard, the Board has received comments
from community groups and individuals (collectively,
"Protestants") critical of the CRA performance of
Norwest and United Banks. 7 Protestants generally
allege that Norwest has failed to meet the credit and
servicing needs of low- and moderate-income and
minority communities, primarily in the MinneapolisSt. Paul and Duluth areas, as well as Minnesota farm
communities. The Board addressed these CRA issues
in its recent Order approving Norwest's application to
acquire Chalfen Bankshares, Inc., Anoka, Minnesota
("Chalfen"). 8 Protestants, however, have raised addi-
6. 12 U.S.C. § 2903.
7. The Board also has considered comments on this application filed
after the close of the comment period which raise substantially similar
issues. Under the Board's rules, the Board may in its discretion take
into consideration the substance of such comments. 12 C.F.R.
212.3(e).
8. See Norwest Corporation, 77 Federal Reserve Bulletin 110
(1991). In that case, the Board reviewed the CRA record of Norwest
and its subsidiary banks with regard to the credit and servicing needs
of low-and moderate-income, minority and farm communities and
found that record to be consistent with approval.
Legal Developments
tional concerns. These issues include:
(i) the accessibility and advertisement of Norwest's Community Home Ownership Program
("CHOP") to low- and moderate-income communities;
(ii) Norwest's mortgage subsidiary's record of
lending to low- and moderate-income communities in Milwaukee, Wisconsin; and
(iii) United Banks's record of meeting the credit
needs of small businesses and low- and moderateincome communities in Denver, Colorado. 9
The Board has carefully reviewed the CRA performance record of Norwest, United Banks, and their
bank subsidiaries, as well as the comments of Protestants and Norwest's response to those comments, in
light of the CRA, the Board's regulations, and the
jointly issued Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement"). 10 The
Agency CRA Statement provides guidance regarding
the types of policies and procedures that the supervisory agencies believe financial institutions should have
in place in order to fulfill their responsibilities under
the CRA on an ongoing basis, and the procedures that
the supervisory agencies will use during the application process to review an institution's CRA compliance and performance. The Agency CRA Statement
also suggests that decisions by agencies to allow
financial institutions to expand will be made pursuant
to an analysis of the overall CRA performance of the
institution. 11
Initially, the Board notes that all of the subsidiary
banks of both Norwest and United Banks have received satisfactory ratings from their primary regulators in the most recent examinations of their CRA
performance. The Agency CRA Statement provides
that, although CRA examination reports do not provide conclusive evidence of an institution's CRA
record, these reports will be given great weight in the
applications process. 12
As a result of a recent corporate reorganization,
Norwest's nonbank subsidiary, Norwest Mortgage,
Inc. ("Norwest Mortgage"), now handles most mortgage lending for Norwest and administers CHOP.
Individuals in the Minneapolis-St. Paul area can apply
for purchase money mortgages through CHOP at
twelve offices, six of which are offices of Norwest's
9. Protestants also have requested that Norwest honor agreements
made by United Banks with community groups. Protestants also
believe that United Banks should expand its affirmative action program and implement a community monitoring program.
10. 54 Federal Register 13,742 (1989).
11 .Id.
12. Id. at 13,745.
345
subsidiary banks and six of which are offices of Norwest Mortgage. Four of these offices are located within
Minneapolis-St. Paul and in or near low- and moderate-income communities, including two downtown offices that are accessible from low- and moderateincome communities by public transportation.
Norwest's promotional materials indicate that applications for second mortgages under CHOP for home
improvement and consumer loans are available
through all Norwest offices in the Minneapolis-St. Paul
area. 13 Norwest has stated that its MinneapolisSt. Paul bank branches will promote CHOP. Norwest
has also placed advertisements for CHOP in community newspapers, including those servicing low- and
moderate-income communities.
With regard to Protestants' allegations regarding
United Banks's record under the CRA, the record
indicates that United Banks has been active in extending conventional home purchase, housing rehabilitation and small business loans, as well as participating
in government-guaranteed loan programs for housing
and small businesses. United Banks's lead bank recently opened an office in the Five Points area of
Denver, which is predominately low- and moderateincome, in order to strengthen its lending activity to
low- and moderate-income communities. United
Banks's Home Mortgage Disclosure Act ("HMDA")
data indicate that United Banks's loan policies do not
discriminate against low- and moderate-income or
minority communities in Denver. 14 In addition, Nor-
13. The Board notes that Norwest's CHOP initiative was begun less
than a year ago and has not yet been fully implemented. For example,
some features of the program—down payment assistance, coordination with community mortgage counseling agencies, and special price
limits to accommodate duplex purchases—have been implemented
only recently. In addition, the Board has reviewed Protestants'
allegations regarding Norwest's record of meeting the credit needs of
low- and moderate-income communities in Milwaukee, Wisconsin.
Protestants allege that there have been some disparities in the 1989
HMDA data for Norwest Mortgage in Milwaukee. During the past
year, however, Norwest has expanded its presence in Milwaukee by
acquiring its first bank in that city. The bank has recently announced
a plan to provide increased funding for inner city housing and
commercial and economic development loans. In addition, the bank
will continue to provide its no-minimum balance checking accounts
and review the feasibility of opening new branches in low- and
moderate-income areas. The Board expects Norwest to continue its
record of improvement under the CRA, including full implementation
of its CRA program in Milwaukee. The Board will continue to
consider Norwest's progress in meeting the needs of low- and moderate-income communities, including Milwaukee, in future applications to expand its deposit-taking operations.
14. The 1989 HMDA data show that United Banks made 13.2
percent of its mortgage loans in low- and moderate-income neighborhoods and 8.7 percent of its mortgage loans in integrated and predominately minority census tracts. In both instances, these percentages
exceeded the percentages for aggregate HMDA-reporting lenders. In
addition, in low- and moderate-income areas in Denver, United Banks
made twice as many loans in predominately minority census tracts
(per owner-occupied unit) as in predominately nonminority census
tracts.
346
Federal Reserve Bulletin • May 1991
west has indicated that it will apply its CRA program
to the subsidiary banks of United Banks, including its
Community Marketing Initiative, which requires each
subsidiary bank to develop an outreach program to
provide for an ongoing assessment of community
financial service needs.
For the foregoing reasons, and based upon the
overall CRA record of Norwest and its subsidiary
banks and other facts of record, the Board concludes
that convenience and needs considerations, including
the record of performance under the CRA of Norwest
and United Banks, are consistent with approval of this
application. 15 The Board also determines that the
financial and managerial resources and future prospects of Norwest, United Banks, and their subsidiaries
are consistent with approval of this application.
Norwest also has applied, pursuant to section 4(c)(8)
of the BHC Act, to acquire lending, data processing
and insurance subsidiaries of United Banks. The
Board has determined by regulation that each of these
activities is permissible for bank holding companies
under section 4(c)(8) of the BHC Act, 1 6 and Norwest
proposes to conduct these activities in accordance
with the Board's regulations. Norwest operates nonbanking subsidiaries engaged in lending, data processing and insurance activities that compete with
United Banks in these activities. Each of these
subsidiaries has a small market share, and there
are numerous competitors for these services. As a
result, consummation of this proposal would have a
de minimis effect on existing competition for these
services, and the Board concludes that the proposal
would not result in a significant adverse effect on
competition in any relevant market. Furthermore, there
is no evidence in the record to indicate that approval of
this proposal would result in any significantly adverse
effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of interests,
or unsound banking practices. Accordingly, the Board
has determined that the balance of public interest
15. Several Protestants also have requested that the Board hold a
public hearing or meeting to assess further facts surrounding the CRA
performance of Norwest and United Banks. Under the Board's rules,
the Board may, in its discretion, hold a public hearing or meeting on
an application to clarify factual issues related to the application and to
provide an opportunity for testimony, if appropriate. 12 U.S.C.
§§ 262.3(e) and 262.25(d).
The Board has carefully considered Protestants' request for a public
meeting or hearing in this case. In the Board's view, the parties have
had ample opportunity to present submissions, and have submitted
substantial written comments that have been considered by the Board.
In light of these facts, the Board has determined that a public meeting
or hearing is not necessary to clarify the factual record in these
applications, or is otherwise warranted in this case. Accordingly,
Protestants' request for a public meeting or hearing on this application
is hereby denied.
16. 12 C.F.R. 225.25(b)(1), (7), (8X0, and (8)(vii).
factors it must consider under section 4(c)(8) of the
BHC Act is favorable and consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The bank acquisitions shall
not be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Minneapolis,
acting pursuant to delegated authority. The determinations as to Norwest's nonbanking activities are
subject to all of the conditions contained in the
Board's Regulation Y , including those in sections
225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and
225.23(b)(3)), and to the Board's authority to require
such modification or termination of the activities of a
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with, or
prevent evasions of, the provisions and purposes of
the BHC Act and the Board's regulations and orders
issued thereunder.
By order of the Board of Governors, effective
March 4, 1991.
Voting for this action: Chairman Greenspan and Governors
Seger, La Ware, and Mullins. Absent and not voting: Governors Angell and Kelley.
JENNIFER J. JOHNSON
Associate
Secretary
of the
Board
Appendix
Norwest will acquire the following banks:
(1) United Bank of Boulder, N . A . , Boulder, Colorado.
(2) United Bank of Colorado Springs, N . A . , Colorado Springs, Colorado.
(3) United Bank of Denver, N . A . , Denver, Colorado.
(4) United Bank of Fort Collins, N . A . , Fort Collins,
Colorado.
(5) United Bank of Greeley, N . A . , Greeley, Colorado.
(6) United Bank of Montrose, N . A . , Montrose,
Colorado.
(7) United Bank of Steamboat Springs, N . A . ,
Steamboat Springs, Colorado.
(8) United Bank of Sterling, N . A . , Sterling, Colorado.
(9) United Bank of Grand Junction - Downtown,
N . A . , Grand Junction, Colorado.
(10) United Bank of Brighton, N . A . , Brighton, Colorado.
Legal Developments
(11) United Bank of Aurora, N.A., Aurora, Colorado.
(12) United Bank of Ignacio, N.A., Ignacio, Colorado.
(13) United Bank of Pueblo, N.A., Pueblo, Colorado.
(14) United Bank of Littleton, N.A., Littleton, Colorado.
(15) United Bank of Broomfield, N.A., Broomfield,
Colorado.
(16) United Bank of Sunset Park, N.A., Pueblo,
Colorado.
(17) United Bank of Lakewood, N.A., Lakewood,
Colorado.
(18) United Bank of Northglenn, N.A., Northglenn,
Colorado.
(19) United Bank of Lasalle, N.A., Lasalle, Colorado.
(20) United Bank of Grand Junction, N.A., Grand
Junction, Colorado.
(21) United Bank of Delta, N.A., Delta, Colorado.
(22) United Bank of Bear Valley, N.A., Denver,
Colorado.
(23) United Bank of Colorado Springs - East, N.A.,
Colorado Springs, Colorado.
(24) United Bank of Southglenn, N.A., Arapahoe
County, Colorado.
(25) United Bank of Longmont, N.A., Longmont,
Colorado.
(26) United Bank of Durango, N.A., Durango, Colorado.
(27) United Bank of Skyline, N.A., Denver, Colorado.
(28) United Bank of Buckingham Square, N.A.,
Aurora, Colorado.
(29) United Bank of Monaco, N.A., Denver, Colorado.
(30) United Bank of Garden of the Gods, N.A.,
Colorado Springs, Colorado.
(31) United Bank of Arvada, N.A., Arvada, Colorado.
(32) United Bank of Fort Collins - South, N.A., Fort
Collins, Colorado.
(33) United Bank of Arapahoe, N.A., Englewood,
Colorado.
(34) United Bank of Southwest Plaza, N.A., Jefferson County, Colorado.
(35) United Bank of Cherry Creek, N.A., Denver,
Colorado.
(36) United Bank of Highlands Ranch, N.A., Highlands Ranch, Colorado.
(37) United Bank of Academy Place, N.A., Colorado Springs, Colorado.
(38) United Bank of Aurora - City Center, N.A.,
Aurora, Colorado.
347
(39) United Bank of Aurora - South, N.A., Aurora,
Colorado.
(40) United Bank of Westminster, N.A., Westminster, Colorado.
Norwest will acquire the following nonbanking subsidiaries:
(1) United Banks Financial Services Corporation,
and Spectrum Properties, Inc., both of Denver, Colorado, and thereby engage in commercial finance activities;
(2) United Banks Service Company, Englewood,
Colorado, and thereby engage in data processing activities;
(3) Fidelity National Life Insurance Company and
IntraWest Insurance Company, both of Denver, Colorado, and thereby engage in credit insurance activities;
(4) United Banks Insurance Services, Inc., Denver,
Colorado, and its wholly-owned subsidiary, Lincoln
Agency Inc., Phoenix, Arizona, and Tempe, Arizona,
and thereby engage in insurance agency activities.
Orders Issued Under Federal Reserve Act
Fifth Third Bank
Cincinnati, Ohio
Fifth Third Bank
Columbus, Ohio
Order Approving
the Establishment
of Branches
Fifth Third Bank, Cincinnati, Ohio ("Fifth Third Cincinnati"), has applied, pursuant to section 9 of the
Federal Reserve Act (12 U.S.C. § 321 et seq.)
("FRA"), to establish three full-service branches at
9990 Montgomery Road and 6150 Glenway Avenue,
both in Cincinnati, Ohio, and at 11905 Superior Avenue, Cleveland, Ohio, and to establish 73 Customer
Bank Communication Terminals ("CBCTs") throughout Ohio at locations listed in the Appendix. Fifth
Third Bank, Columbus, Ohio ("Fifth Third Columbus"), also has applied, pursuant to section 9 of the
FRA, to establish a full-service branch at 250 Wilson
Road, Columbus, Ohio, and to establish 21 CBCTs
throughout Ohio at locations listed in the Appendix.
Notice of these applications, affording interested
persons an opportunity to submit comments, has been
duly published. The time for filing comments has
expired, and the Board has considered the applications
and all comments received in light of the factors
contained in section 9 of the FRA.
348
Federal Reserve Bulletin • May 1991
Fifth Third Cincinnati and Fifth Third Columbus are
both subsidiary banks of Fifth Third Bancorp, Cincinnati, Ohio ("Bancorp"), which operates subsidiary
banks in Ohio, Indiana, and Kentucky. Fifth Third
Cincinnati, Bancorp's lead bank, has its main office in
Cincinnati, Ohio, and operates branches in Cincinnati,
Hamilton and Middletown Counties, Dayton, and
Cleveland, all in Ohio. Fifth Third Columbus has its
main office and branches in Columbus, Ohio, and also
two branches in Fayette County, Ohio.
In reviewing an application for a deposit facility,
including the establishment of a domestic branch or
other facility with the ability to accept deposits, the
Board is required, under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"), to
consider the institution's record of serving the credit
needs of the community, including low- and moderateincome neighborhoods. The CRA requires the federal
financial supervisory agencies to encourage financial
institutions to help meet the credit needs of the local
communities in which they operate consistent with the
safe and sound operation of such institutions. To
accomplish this end, the CRA requires the appropriate
federal supervisory authority to "assess an institution's record of meeting the credit needs of its entire
community, including low- and moderate-income
neighborhoods, consistent with the safe and sound
operation of the institution." 1
In this regard, the Board has considered comments
filed by the Cincinnati Branch of the National Association for the Advancement of Colored People, the
Ohio Community Reinvestment Alliance, and the Coalition of Neighborhoods, all in Cincinnati, Ohio (collectively, "Protestants"). 2 Protestants generally allege
that the performance of Fifth Third Cincinnati and
Fifth Third Columbus under the CRA:
(i) does not include sufficient components of effective CRA programs, including ascertainment of
the credit needs of the communities, marketing of
products, and managerial oversight;
(ii) reflects minimal participation in CRA-related
programs;
(iii) results in insufficient lending in low-income
and minority communities; and
(iv) does not contain adequate policies governing
branch locations and closings.
The Board has carefully reviewed the CRA performance record of Fifth Third Cincinnati and Fifth Third
Columbus, as well as Protestants' comments and the
1. 12 U.S.C. § 2901.
2. The Board also has considered additional comments filed by
several Protestants after the close of the comment period. Under the
Board's rules, the Board may in its discretion take into consideration
the substance of such comments. 12 C.F.R. 262.3(e).
banks' responses to those comments, in light of the
CRA, the Board's regulations, and the Statement of
the Federal Financial Supervisory Agencies Regarding
the Community Reinvestment Act ("Agency CRA
Statement"). 3 The Agency CRA Statement provides
guidance regarding the types of policies and procedures that the supervisory agencies believe financial
institutions should have in place in order to fulfill their
responsibilities under the CRA on an ongoing basis
and the procedures that the supervisory agencies will
use during the application process to review an institution's CRA compliance and performance. The
Agency CRA Statement also suggests that decisions
by agencies to allow financial institutions to expand
will be made pursuant to an analysis of the institution's
overall CRA performance and will be based on the
actual record of performance of the institution. 4
Initially, the Board notes that Fifth Third Cincinnati
and Fifth Third Columbus have both received a satisfactory rating from their primary regulator in the most
recent examination of their CRA performance. 5 The
Agency CRA Statement provides that a CRA examination is an important and often controlling factor
particularly where, as in this case, the specific issues
raised by the protests were incorporated in the reviews
of the banks. 6 Accordingly, the Board has considered
the allegations of Protestants discussed below in light
of these satisfactory ratings.
Components
of CRA
Programs
Protestants allege deficiencies in both banks' programs
for ascertaining the credit needs of their communities,
marketing of products, and managerial oversight. 7
Regarding Fifth Third Cincinnati, Protestants allege
that the bank lacks interest in meeting with low- and
moderate-income communities, directs its marketing
efforts toward wealthy, non-minority communities,
3. 54 Federal Register 13,742 (1989).
4. Id.
5. The Federal Reserve Bank of Cleveland conducted CRA compliance examinations for Fifth Third Cincinnati and Fifth Third Columbus as of October 15, 1990.
6. 54 Federal Register at 13,745.
7. Protestants also allege that the CRA public comment files in both
banks were inadequately maintained. Although these files generally
complied with the Board's regulations, the examiners found certain
deficiencies in the descriptions of community delineations and listings
of the types of credit products available. The banks have committed to
correct these deficiencies, and the Board expects these deficiencies to
be resolved promptly. Protestants also charged that both banks have
not employed minorities in decision-making positions. While the
Board fully supports affirmative programs designed to promote equal
opportunity in every aspect of a bank's personnel policies and
practices in the employment, development, advancement, and treatment of employees and applicants for employment, the Board believes
that the alleged deficiencies in the banks' general personnel practices
are beyond the scope of factors assessed under the CRA.
Legal Developments
and has failed to act on suggestions by the City of
Cincinnati in a report regarding the commercial credit
needs of the city's minority businesses. 8 In addition,
Protestants allege that Fifth Third Columbus's marketing is ineffective for low-income communities, has
failed to use minority media advertising, and is premised on a survey designed for Cincinnati instead of
Columbus.
Fifth Third Cincinnati and Fifth Third Columbus
have adopted many of the elements of an effective
CRA program as outlined in the Agency CRA Statement. Both banks have a CRA officer responsible for
coordinating CRA activities throughout the banks.
Frequent calls in the communities are made by the
CRA officer and banking center managers. 9 Ascertainment efforts and CRA activities are reviewed on a
regular basis by oversight committees made up of
senior management, banking center managers, and
representatives from the lending, marketing, and community affairs departments. 10 CRA program developments are in turn periodically reported to both banks'
boards of directors which review the overall CRA
program in their respective banks. 11 In the case of
Fifth Third Columbus, a recent survey of credit needs
in its market was completed in conjunction with the
Ohio State Legal Services Association and a local
minority businessman who is also a community organizer.
Fifth Third Cincinnati and Fifth Third Columbus
market their credit products by means of traditional
media such as television, radio, and local newspapers
8. The report by the City of Cincinnati does not contain specific
recommendations nor have Protestants identified recommendations
that Fifth Third Cincinnati has failed to adopt. Although not a
recommendation in the report, Fifth Third Cincinnati has formed a
Minority Business Development Committee, which meets bi-monthly
to discuss minority business development concerns and review all
declined minority business applications for ways to help with future
credit requests.
9. The policies of both banks require bank center managers to make
26 calls per month on small- and medium-size businesses within the
service area. In addition, real estate loan originators are required to
target calling efforts on minority realtors to increase the banks'
penetration in minority communities as well as low- and moderateincome areas.
10. Fifth Third Columbus has also formed specific groups such as
the community development lending group and the small business
lending group that meet regularly to discuss ways to increase the
bank's lending to low- and moderate-income areas and small businesses.
11. The examination report of Fifth Third Cincinnati notes weaknesses in loan application and review procedures employed by senior
management including the board of directors. The bank has indicated
that it will implement a system to analyze the bank's Home Mortgage
Disclosure Act ("HMDA") data which will be presented to the bank's
executive committee periodically and to the board of directors on an
annual basis. The Board expects Fifth Third Cincinnati to implement
appropriate formal systems of review with senior management and
board of director oversight to correct these deficiencies.
349
as well as in minority publications. 12 Although the
record reveals that both banks are making efforts to
market their products in low- and moderate-income
communities, some weaknesses exist in the effectiveness of the banks' advertising efforts in these communities. Both banks have committed to review their
marketing strategies and to increase their efforts in
reaching these markets.
Participation
in CRA-Related
Programs
Protestants have criticized both banks for insufficient
participation in CRA-related programs. 13 Specifically,
Protestants note that Fifth Third Cincinnati does not
participate in Ohio's State Bond Money Program
which is designed to assist low- and moderate-income
home buyers purchasing their first home. 14 Fifth Third
Columbus and Fifth Third Cincinnati are also criticized for their minimal participation in governmentassisted programs to aid the poor. 15
Fifth Third Cincinnati participates in various federal
government loan programs, including SBA, FHA, VA,
and guaranteed-student loan programs. 16 The bank
also participates in several State of Ohio programs for
home purchase or home improvement. Fifth Third
Cincinnati participates in the Withrow Linked Deposit
Loan Program to provide borrowers with below-market interest rates for home purchase loans and the
Ohio Energy Action Loan Program, which targets
energy saving home improvements. The bank also
12. For example, Fifth Third Columbus has advertised in minority
publications such as Call and Post, The Blue Chip Profile, and The
Main Street Business Journal.
13. Although Protestants have alleged that Fifth Third Cincinnati
has attempted to tie improving its CRA performance to obtaining
partial management of the city's Retirement System Pension Fund, in
the Board's view, the facts in the record do not support this allegation.
14. Protestants also contend that both banks have historically made
an inadequate amount of charitable contributions. Each bank has a
foundation officer responsible for the administration of foundation
funding and philanthropic projects. For example, Fifth Third Cincinnati provides assistance to the United Way and other communityoriented programs such as Cincinnati Youth Collaborative (a program
to reduce the drop-out rate by focusing on jobs and education),
INROADS (placement of minority youths in businesses), and Partners
in Education (a mentor program for bank employees and junior high
students). Since the previous examination, Fifth Third Cincinnati has
awarded $3.6 million in grants and $7.5 million in contributions to
nonprofit organizations, all of which benefit low- and moderateincome communities.
15. Protestants allege that Fifth Third Columbus does not cash
government checks for non-depositors. However, the bank does cash
State Warrant checks and offers several free or low-cost checking
accounts for low-income individuals and senior citizens. Fifth Third
Cincinnati also offers a Senior Citizen Checking Account which
provides discounts to senior citizens for checking services.
16. Since becoming an FHA and VA lender in 1988, Fifth Third
Cincinnati has lent $1.1 million (1988), $5.5 million (1989), and $8.2
million (first 9 months of 1990) under these programs. In addition,
Fifth Third Cincinnati has made $14.6 million in guaranteed student
loans (first 9 months of 1990) and $2.3 million in SBA small business
loans (first 9 months of 1990).
350
Federal Reserve Bulletin • May 1991
participates in the Neighborhood Lending Program in
Dayton, which provides, in connection with the City
of Dayton, discounts on mortgage loans to individuals
in low- and moderate-income communities. Fifth
Third Cincinnati also offers the Good Neighbor Program, which provides loan discounts for families with
an income of under $35,000 to purchase homes in one
of Cincinnati's 38 Community Development Block
Grant communities. 17
Fifth Third Columbus also participates in programs
designed to assist the housing needs of low- and
moderate-income families. The bank recently announced the Community Home Buyers Program, a
mortgage lending program developed in conjunction
with General Electric to provide flexible, affordable
mortgage loans to families with low- and moderateincomes. The bank is also participating with the Columbus Housing Partnership ("CHP") to increase
housing loans to low- and moderate-income communities in Columbus and contributes a loan origination fee
to the CHP for each loan the bank makes to targeted
low- and moderate-income areas. 18 Fifth Third Columbus has recently been approved as a FHA and VA
lender and acts as an agent for its affiliated banks in
offering guaranteed student loans.
Lending in Low- and Moderate-Income
Communities
Protestants allege that Fifth Third Cincinnati and Fifth
Third Columbus have invested minimal amounts in
Ohio's minority communities. In the case of Fifth
Third Cincinnati, the Protestants suggest that the
bank's lending patterns indicate discriminatory lending practices. According to Protestants, Fifth Third
Columbus's lending patterns suggest disinvestment in
minority and low-income communities.
Fifth Third Cincinnati's delineated community includes minority and low- and moderate-income communities in Cincinnati, where its main office is located,
as well as Hamilton and Middletown Counties, Dayton, and Cleveland. Data available under HMD A show
that the overall trend in the number of mortgage loans
by Fifth Third Cincinnati in all segments of low- and
moderate-income tracts in Cincinnati has been increasing over the last few years, while loans to upperincome areas have been decreasing. These data also
17. Although few loans have been originated in this relatively new
program, Fifth Third Cincinnati has committed $13.2 million over the
next two years. It has also indicated that it will be extending its
participation in the Good Neighbor Program to its Dayton branch, at
which time it intends to phase out its participation in the Neighborhood Lending Program.
18. In addition, Fifth Third Columbus works with CHP to provide
funding for the purchase and rehabilitation of housing in low- and
moderate-income communities.
demonstrate that, overall, Fifth Third Cincinnati made
more loans per 1,000 owner-occupied units in the lowand moderate-income tracts in Cincinnati than in the
upper-income tracts. 19 Fifth Third Columbus's delineated community includes low- and moderate-income
communities in Columbus. The Board notes that there
are some disparities in the HMDA data for Fifth Third
Columbus's lending in Columbus. The recent examinations of both banks, however, found no evidence of
loan discrimination against individuals in minority and
low- and moderate-income communities.
As previously noted, Fifth Third Cincinnati and
Fifth Third Columbus have committed to take steps to
target additional marketing toward minority and lowand moderate-income communities and to improve
their lending performance to these areas. These steps
will include increasing the amount of funds available
for marketing the banks' products in low- and moderate-income neighborhoods. The Board directs that
both banks report quarterly to the Federal Reserve
Bank of Cleveland and that the Reserve Bank carefully
monitor compliance with these commitments. The
Reserve Bank will also report to the Board regarding
the extent to which the banks have implemented their
improvements in the areas of weakness previously
noted and the progress made in correcting these deficiencies. The Agency CRA Statement provides that,
while commitments for future action are not viewed as
part of the CRA record of performance of the financial
institution, commitments for such improvement can be
used to address specific problems in an otherwise
satisfactory record. In this case, in light of the banks'
overall satisfactory CRA performance, the Board believes it appropriate to consider the steps that the
banks have committed to take to address weaknesses
identified in the record.
Branch Locations
and
Closings
Protestants question the policies governing branch
locations and closings for both banks. According to
Protestants, Fifth Third Cincinnati is closing branches
in low- and moderate- income areas while opening
branches in upper-income areas. Fifth Third Columbus's branches are alleged to be in locations that are
inconvenient to low-income and minority residents.
In the year and one-half period between its last two
CRA examinations, Fifth Third Cincinnati has opened
19. Fifth Third Cincinnati's Cleveland branch has only been in
operation for one year and HMDA data for 1990 are not yet available.
The Board also notes that the HMDA data for Fifth Third Cincinnati
show some weaknesses in the bank's pattern of lending in Dayton and
in Hamilton and Middletown Counties. The Board expects Fifth Third
Cincinnati to address these disparities and the bank's progress will be
considered in reviews of future applications.
Legal Developments
ten branches and closed three. Four of the newly
opened branches were located in high-income areas
while five were located in middle-income areas and
one was located in a low-income area. All of the three
closed branches were in middle- and high-income
areas. The Superior Avenue full-service branch in
Cleveland that Fifth Third Cincinnati has requested to
open in this application will be located in a low- and
moderate-income and predominately minority area.
Fifth Third Columbus has not closed any branches.
Fifth Third Columbus has four of its seventeen
branches located in low-income areas and five located
in middle-income areas. Examiners determined that
Fifth Third Columbus's branches were at locations
accessible to all segments of its service community.
Both banks have a closure, consolidation and reduction-in-service policy that addresses the need to
identify and serve the needs of the banks' communities. These policies outline the factors to be considered
when opening and closing banking centers. In addition, these policies require advance notice to the
community explaining the rationale for closing a banking center and providing alternatives for continued
service to the affected community.
For the reasons discussed above, the Board believes
that, on balance, and subject to the commitments to
address the deficiencies noted in both banks' performance under the CRA, the CRA records of Fifth Third
Cincinnati and Fifth Third Columbus are consistent
with approval of these applications. 20 The Board expects both banks to continue their record of improvement under the CRA and to report on their progress in
addressing the areas of weakness in their performance
as previously discussed.
The Board also concludes that the financial conditions of both banks, the general character of their
managements, and the proposed exercise of corporate
powers are consistent with approval and the purposes
of section 9 of the FRA.
Based on all the foregoing and other facts of record,
including the commitments to improve both banks'
CRA performance, the Board has determined that the
applications should be, and hereby are, approved.
20. Protestants have requested that the Board hold a public hearing
or meeting to assess further facts surrounding the banks' CRA
performance. Generally under the Board's rules, the Board may, in its
discretion, hold a public hearing or meeting on an application to clarify
factual issues related to the application and to provide an opportunity
for testimony, if appropriate. 12 U.S.C. §§ 262.3(e) and 262.25(d).
The Board has carefully considered these requests. In the Board's
view, the parties have had ample opportunity to present submissions,
and Protestants have submitted substantial written comments that
have been considered by the Board. In light of these facts, the Board
has determined that a public meeting or hearing is not necessary to
clarify the factual record in these applications, or otherwise warranted
in this case. Accordingly, the requests for a public meeting or hearing
on these applications are hereby denied.
351
By order of the Board of Governors, effective
March 22, 1991.
Voting for this action: Chairman Greenspan and Governors
Angell, LaWare, and Mullins. Absent and not voting: Governor Kelley.
JENNIFER J. JOHNSON
Associate
Secretary
of the Board
Appendix
Fifth Third Cincinnati will establish the following
CBCTs:
(1) 1294 North Fairfield Road, Beavercreek, Ohio;
(2) 1024 South Smithville Road, Dayton, Ohio;
(3) 875 Central Avenue, Springboro, Ohio;
(4) 7747 Old Troy Pike, Huber Heights, Ohio;
(5) 425 Dayton Avenue, Xenia, Ohio;
(6) 3243 West Seibenthaler Avenue, Dayton, Ohio;
(7) 855 Union Road, Englewood, Ohio;
(8) 2100 Beechmont Avenue, Mt. Washington,
Ohio;
(9) 1783 Ohio Pike, S.R. 125, Amelia, Ohio;
(10) 5740 Harrison Pike, Dent, Ohio;
(11) 420 Wells Mill Road, Oxford, Ohio;
(12) 8241 Vine Street, Cincinnati, Ohio;
(13) 7545 Beechmont Avenue, Cincinnati, Ohio;
(14) 1555 Wayne Avenue, Dayton, Ohio;
(15) 1220 East Central Avenue, Miamisburg S/C,
Ohio;
(16) 700 Spinning Road, Spinning Plaza, Dayton,
Ohio;
(17) 726 East Main Street, Lebanon, Ohio;
(18) 2900 West Street, Route 22 & 3, Maineville,
Ohio;
(19) 954 East McMillan, Wallnut Hills, Ohio;
(20) 960 Enright Avenue, Price Hill, Ohio;
(21) 8800 Beechmont Avenue, Cherry Grove, Ohio;
(22) 1244 Rombach Avenue, Wilmington, Ohio;
(23) 1864 Seymour Avenue, Hillcrest Square, Cincinnati, Ohio;
(24) 1606 North Bend Road, College Hill, Ohio;
(25) University of Dayton, 300 College Park, Dayton, Ohio;
(26) Salem Mall, 5200 Salem Avenue, Trotwood,
Ohio;
(27) Wright State University, 3640 Colonel Glenn
Highway, Fairborn, Ohio;
(28) Kenwood Towne Centre # 1, 7875 Montgomery
Road, Cincinnati, Ohio;
(29) Kenwood Towne Centre # 2 , 7875 Montgomery
Road, Cincinnati, Ohio;
(30) West & Wooster Pike, Mariemont, Ohio;
352
Federal Reserve Bulletin • May 1991
(31) 516 East Cherry Street, Blanchester, Ohio;
(32) 11973 Lebanon Pike, Sharonville, Ohio;
(33) 6950 Miami Avenue, Madeira, Ohio;
(34) 1 West Corry Street, University Plaza,
Cincinnati, Ohio;
(35) 800 Main Street, Clermont S/C, Milford, Ohio;
(36) 6150 Glenway Avenue, Western Hills Plaza,
Cincinnati, Ohio;
(37) 6020 Chambersburgh Road, Huber Heights, Ohio;
(38) 3484 Towne Boulevard, Franklin, Ohio;
(39) 5021 Vine Street, St. Bernard, Ohio;
(40) 575 West Main Street, Batavia, Ohio;
(41) 1420 Vine Street, Cincinnati, Ohio;
(42) 2435 Harrison Avenue, Westwood, Ohio;
(43) 4840 Glenway Avenue, Cincinnati, Ohio;
(44) 250 South Miami Avenue, Cleves, Ohio;
(45) 430 Oxford State Road, Middletown, Ohio;
(46) 3829 Montgomery Road, Norwood Plaza, Ohio;
(47) 2830 Colerain Avenue, Camp Washington, Ohio;
(48) 8120 Hamilton Avenue, Mt. Healthy, Ohio;
(49) 3760 Paxton Avenue, Hyde Park Plaza, Cincinnati, Ohio;
(50) 26350 Great Northern Mall, N. Olmsted, Ohio;
(51) 6677 Pearl Road, Parma Heights, Ohio;
(52) 5400 Northfield Road, Maple Heights, Ohio;
(53) 1395 Som Center Road, Mayfield Heights,
Ohio;
(54) 1650 Snow Road, Parma, Ohio;
(55) 1225 W. Pleasant Valley Road, Parma, Ohio;
(56) 5132 Wilson Mills, Richmond Heights, Ohio;
(57) 1499 Columbia Road, Westlake, Ohio;
(58) 11501 Buckeye Road, Cleveland, Ohio;
(59) 3024 Clark Avenue, Cleveland, Ohio;
(60) 33311 Aurora Road, Solon, Ohio;
(61) 4798 Ride Road, Brooklyn, Ohio;
(62) 7300 St. Clair Avenue, Cleveland, Ohio;
(63)
(64)
(65)
(66)
(67)
(68)
(69)
(70)
(71)
(72)
(73)
10950 Lorain Avenue, Cleveland, Ohio;
18501 Neff Road, Cleveland, Ohio;
8009 Day Drive, Parma, Ohio;
4934 Turney Road, Garfield Heights, Ohio;
14225 Pearl Road, Strongville, Ohio;
23949 Chagrin Boulevard, Beachwood, Ohio;
14100 Detroit Avenue, Lake wood, Ohio;
6711 Broadway Avenue, Cleveland, Ohio;
Pavillion Mall, Beachwood, Ohio;
Harvard & Lee, Cleveland, Ohio; and
230 H o w e Avenue, Cuyahoga Falls, Ohio.
Fifth Third Columbus will establish the following
CBCTs:
(1) 6962 East Main Street, Reynoldsburg, Ohio;
(2) 5991 Sunbury Road, Westerville, Ohio;
(3) 2913 Olentangy River Road, Columbus, Ohio;
(4) 60 Worthington Square S/C, Worthington, Ohio;
(5) 299 West Bridge Street, Dublin, Ohio;
(6) 1350 North High Street, Columbus, Ohio;
(7) 4656 Cemetary Road, Hilliard, Ohio;
(8) 3471 North High Street, Columbus, Ohio;
(9) 1630 Morse Road, Columbus, Ohio;
(10) 4850 East Min Street, Whitehall, Ohio;
(11) 560 East Livingston, Columbus, Ohio;
(12) 83 Hamilton Road North, Gahanna, Ohio;
(13) 120 Robinwood Avenue, Whitehall, Ohio;
(14) 4485 Refugee Road, Columbus, Ohio;
(15) 2433 East Dublin-Granville, Columbus, Ohio;
(16) 2000 East Main Street, Columbus, Ohio;
(17) 3559 South High Street, Columbus, Ohio;
(18) 3353 Cleveland Avenue, Columbus, Ohio;
(19) 2474 Stringtown Road, Grove City, Ohio;
(20) 55 West Schrock Road, Westerville, Ohio; and
(21) 159 South Sandusky Street, Delaware, Ohio.
ORDERS ISSUED UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY,
ACT CTIRREA
ORDERS'')
AND
ENFORCEMENT
Recent orders have been issued by the Staff Director of the Division of Banking Supervision and Regulation and the
General Counsel of the Board as listed below. Copies are available upon request to the Freedom of Information
Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
Bank Holding Company
Bank of North America Bancorp,
Inc.,
Miami, Florida
Acquired
Thrift
Commonwealth Federal
Savings and Loan
Association,
Fort Lauderdale,
Florida (Boca Raton,
Florida Branch)
Surviving
Bank(s)
Bank of North
America,
Miami, Florida
Approval
Date
March 8, 1991
Legal Developments
353
FIRREA Orders—Continued
Bank Holding Company
Community Bancshares, Inc.,
Noblesville, Indiana
First Chicago Corporation,
Chicago, Illinois
First of America Bank
Corporation,
Kalamazoo, Michigan
Flagler Bank Corporation,
West Palm Beach, Florida
Resource Bancshares
Corporation,
Columbia, South Carolina
SouthTrust Corporation,
Birmingham, Alabama
APPLICATIONS APPROVED
By the Secretary
of the
Acquired
Thrift
Surviving
Bank(s)
Colonial Central Savings
Bank, F.S.B.,
Mt. Clemens, Michigan
(Lapel, Indiana Branch)
Horizon Savings Bank,
F.S.B.,
Wilmette, Illinois
Primebank, Federal
Savings Bank,
Grand Rapids,
Michigan
Central Savings and Loan
Association,
Stuart, Florida
Poughkeepsie Savings
Bank, F . S . B . ,
Poughkeepsie,
N e w York
(3 Spartanburg, South
Carolina Branches and
Landrum, South
Carolina Branch)
Commonwealth Federal
Savings and Loan
Association,
Fort Lauderdale,
Florida
(Home Depot Branch,
St. Petersburg, Florida)
Summitville Bank and
Trust Co.,
Summitville,
Indiana
The First National
Bank of Chicago,
Chicago, Illinois
First of America
Bank-Holland,
N.A.,
Holland, Michigan
Flagler National Bank,
West Palm Beach,
Florida
Republic National
Bank,
Columbia, South
Carolina
SouthTrust Bank of
Pinellas County,
St. Petersburg,
Florida
UNDER BANK HOLDING COMPANY
Approval
Date
March 7, 1991
March 8, 1991
March 1, 1991
March 8, 1991
March 15, 1991
March 8, 1991
ACT
Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 4
Applicant(s)
First of America Bank Corporation,
Kalamazoo, Michigan
Bank(s)
First of America Information Systems,
Inc.,
Peoria, Illinois
Effective
^ate
March 1, 1991
354
Federal Reserve Bulletin • May 1991
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)
Beaman Bancshares, Inc.,
Beaman, Iowa
Citizens Bancorp, Inc.,
Morris, Minnesota
Community Bancshares, Inc.,
Noblesville, Indiana
Community Financial Holding
Company,
Westmont, N e w Jersey
Community Group, Inc.,
Chattanooga, Tennessee
Farmers Savings Bank Employee
Stock Ownership Plan & Trust,
West Union, Iowa
First American Financial
Corporation,
Sulphur Springs, Texas
First Bank Corp.,
Fort Smith, Arkansas
First Berlin Bancorp., Inc.,
Berlin, Wisconsin
First National Bancorporation of
Stoughton,
Stoughton, Wisconsin
F N C Bancorp, Inc.,
Douglas, Georgia
Founders Financial Corporation,
Naples, Florida
Founders Financial Corporation,
Naples, Florida
Greater Southwest Bancshares,
Inc., Employee Stock
Ownership Plan,
Irving, Texas
Reserve
Bank
Bank(s)
Farmers State Bank,
Beaman, Iowa
Citizens Bank,
Morris, Minnesota
Summitville Bank and
Trust Co.,
Summitville, Indiana
Community National
Bank of N e w Jersey,
Westmont, N e w Jersey
Consolidated
Bancorporation, Inc.,
Chattanooga,
Tennessee
BJS, Inc.,
West Union, Iowa
First American Bank of
Sulphur Springs, N . A . ,
Sulphur Springs, Texas
Sequoyah County
Bankshares, Inc.,
Sallisaw, Oklahoma
The First National Bank
of Berlin,
Berlin, Wisconsin
The First National Bank
of Stoughton,
Stoughton, Wisconsin
First National Bank of
Coffee County,
Douglas, Georgia
Colonial National Bank,
Fort Myers, Florida
Colonial National Bank,
Fort Myers, Florida
Greater Southwest
Bancshares, Inc.,
Irving, Texas
Bank of the West,
Irving, Texas
Effective
Date
Chicago
February 22, 1991
Minneapolis
February 22, 1991
Chicago
March 7, 1991
Philadelphia
March 4, 1991
Atlanta
February 28, 1991
Chicago
February 28, 1991
Dallas
March 14, 1991
St. Louis
February 22, 1991
Chicago
March 13, 1991
Chicago
March 11, 1991
Atlanta
March 1, 1991
Atlanta
March 4, 1991
Atlanta
March 4, 1991
Dallas
March 1, 1991
Legal Developments
355
Section 3—Continued
Applicant(s)
Heartland Bancorporation,
Aurora, Nebraska
Husker Bank Holding Company,
Inc.,
Lincoln, Nebraska
Jefferson County Bancorp, Inc.,
Jefferson, Wisconsin
KSB Financial, Inc.,
Kingston, Michigan
Midwest Banco Corporation,
Cozad, Nebraska
Mountain Holding Corporation,
Tucker, Georgia
National Banc of Commerce
Company,
Charleston, West Virginia
People's Bank of Brevard, Inc.,
Cocoa, Florida
The Peoples Holding Company,
Fort Walton Beach, Florida
Peoples Preferred Bancshares,
Inc.,
Colquitt, Georgia
Routt County National Bank
Corporation,
Steamboat Springs, Colorado
SB Holdings, Inc.,
Douglasville, Georgia
Texhoma Bancshares, Inc.,
Texhoma, Oklahoma
Tifton Banks, Inc.,
Tifton, Georgia
United Community Bancorp,
Inc.,
Greenfield, Illinois
U.S.B. Holding Company, Inc.,
Nanuet, New York
Reserve
Bank
Bank(s)
Farmers State Bank and
Trust Company,
Aurora, Nebraska
Crete State Corporation,
Crete, Nebraska
Republic Bank of
Nebraska,
Columbus, Nebraska
Jefferson County Bank,
Jefferson, Wisconsin
The Kingston State Bank,
Kingston, Michigan
Enders Company,
Enders, Nebraska
Mountain National Bank,
Tucker, Georgia
Lavalette State Bank,
Lavalette,
West Virginia
People's Bank of
Brevard,
Cocoa, Florida
Peoples Federal Savings
Bank,
Fort Walton Beach,
Florida
The Peoples Bank,
Colquitt, Georgia
First National Bank of
Steamboat Springs,
Steamboat Springs,
Colorado
Southern National Bank,
Douglasville, Georgia
First National Bank of
Texhoma,
Texhoma, Oklahoma
Tifton Bank & Trust
Company,
Tifton, Georgia
Peoples State Bank of
Gillespie,
Gillespie, Illinois
The New Milford Bank
and Trust Company,
Inc.,
New Milford,
Connecticut
Effective
Date
Kansas City
February 21, 1991
Kansas City
March 8, 1991
Chicago
March 19, 1991
Chicago
February 22, 1991
Kansas City
March 13, 1991
Atlanta
March 4, 1991
Richmond
March 12, 1991
Atlanta
February 27, 1991
Atlanta
March 8, 1991
Atlanta
March 11, 1991
Kansas City
March 8, 1991
Atlanta
March 1, 1991
Kansas City
March 8, 1991
Atlanta
March 6, 1991
St. Louis
March 4, 1991
New York
March 19, 1991
356
Federal Reserve Bulletin • May 1991
Section 4
Nonbanking
Activity/Company
Applicant(s)
A B N AMRO Holding N . V . ,
Amsterdam, The Netherlands
Stichting Prioriteit A B N AMRO
Holding,
Amsterdam, The Netherlands
Stichting Administratiekantoor
A B N AMRO Holding,
Amsterdam, The Netherlands,
Albemene Bank Nederland, N.V.,
Amsterdam, The Netherlands,
A B N AMRO North America, Inc.,
Chicago, Illinois
La Salle National Corporation,
Chicago, Illinois
Community Bancshares, Inc.,
Noblesville, Indiana
East Ridge Bancshares, Inc.,
East Ridge, Tennessee
Great Lakes Financial
Resources, Inc. Employee
Stock Ownership Plan,
Home wood, Illinois
Norwest Corporation,
Minneapolis, Minnesota
Resource Bancshares
Corporation,
Columbia, South Carolina
United Bancshares, Inc.,
Lincoln, Nebraska
APPLICATIONS APPROVED
Citizens Bank & Trust Company,
Blackstone, Virginia
The Peoples Bank,
Pratt, Kansas
United Jersey Bank,
Hackensack, N e w Jersey
Effective
Date
Investment and Capital
Management Corp,
Chicago, Illinois Chemical
Investment Group,
Chicago, Illinois
Chicago
March 8, 1991
Community Federal Savings
Bank,
Lapel, Indiana
Mortgage South of Tennessee,
Inc.,
East Ridge, Tennessee
Great Lakes Financial
Resources, Inc.,
Home wood, Illinois
Allied Mortgage Corporation,
Chicago, Illinois
Simons and Gregoire Agency,
Inc.,
Marshall, Minnesota
Interim Federal Savings Bank,
Columbia,
South Carolina
Vistar Financial Services, Inc.,
Lincoln, Nebraska
Chicago
March 7, 1991
Atlanta
March 13, 1991
Chicago
February 27, 1991
Minneapolis
March 18, 1991
Richmond
March 15, 1991
Kansas City
March 19, 1991
UNDER BANK MERGER
Applicant(s)
Reserve
Bank
ACT
Bank(s)
First Colonial Savings Bank,
Hopewell, Virginia
Sharon Valley State Bank,
Sharon, Kansas
United Jersey
Bank/Northwest,
Randolph, N e w Jersey
Reserve
Bank
Effective
Date
Richmond
March 8, 1991
Kansas City
March 8, 1991
N e w York
March 15, 1991
Legal Developments
PENDING CASES INVOLVING
GOVERNORS
THE BOARD OF
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.
Fields v. Board of Governors, No. 3:91CV069 (N.D.
Ohio, filed February 5, 1991). Appeal of denial of
request for information under the Freedom of Information Act.
State of Illinois v. Board of Governors, N o . 90-3824
(7th Circuit, appeal filed December 19, 1990). Appeal of injunction restraining the Board from providing state examination materials in response to a
Congressional subpoena. On November 30, 1990,
the U . S . District Court for the Northern District of
Illinois issued a preliminary injunction preventing
the Board and the Chicago Reserve Bank from
providing documents relatingto the state examination in response to the subpoena. The House Committee on Banking, Finance and Urban Affairs has
appealed the injunction. The Board's brief is due on
April 15, 1991.
Citicorp v. Board of Governors,
N o . 9 0 - 4 1 2 4 (2d
Circuit, filed October 4, 1990). Petition for review
of Board order requiring Citicorp to terminate
certain insurance activities conducted pursuant to
Delaware law by an indirect nonbank subsidiary.
The Delaware Bankers Association and the State
of Delaware have intervened on behalf of petitioners, and insurance trade associations have intervened on behalf of the Board in the action. Awaiting decision.
Stanley v. Board of Governors,
N o . 90-3183 (7th
Circuit, filed October 3, 1990). Petition for review of
Board order imposing civil money penalties on five
former bank holding company directors. Awaiting
scheduling of oral argument.
Sibille v. Federal Reserve Bank of New York and
Board of Governors, N o . 90-CIV-5898 (S.D. N e w
York, filed September 12, 1990). Appeal of denial of
Freedom of Information Act request.
Kuhns v. Board of Governors, N o . 90-1398 (D.C. Cir.,
filed July 30, 1990). Petition for review of Board
order denying request for attorney's fees pursuant
to Equal A c c e s s to Justice Act. Awaiting decision.
May v. Board of Governors, N o . 90-1316 (D.C. Cir.,
filed July 27, 1990). Appeal of District Court order
dismissing plaintiff's action under Freedom of Information and Privacy Acts. Board's motion for summary affirmance filed October 12, 1990.
Burke v. Board of Governors,
No. 90-9509 (10th
Circuit, filed February 27, 1990). Petition for review
357
of Board orders assessing civil money penalties and
issuing orders of prohibition. Oral argument is
scheduled for May 7.
Rutledge v. Board of Governors, N o . 90-7599 (11th
Cir., filed August 21, 1990). Appeal of district court
grant of summary judgment for defendants in tort
suit challenging Board and Reserve Bank supervisory actions. The Court of Appeals summarily affirmed the lower court on January 17, 1991.
Kaimowitz v. Board of Governors, N o . 90-3067 (11th
Cir., filed January 23, 1990). Petition for review of
Board order dated December 22, 1989, approving
application by First Union Corporation to acquire
Florida National Banks. Petitioner objects to approval on Community Reinvestment Act grounds.
Babcock and Brown Holdings,
Inc. v. Board of
Governors, N o . 89-70518 (9th Cir., filed November 22, 1989). Petition for review of Board determination that a company would control a proposed
insured bank for purposes of the Bank Holding
Company Act. Oral argument is scheduled for
April 9.
Consumers Union of U.S., Inc. v. Board of Governors, N o . 90-5186 (D.C. Cir., filed June 29, 1990).
Appeal of District Court decision upholding amendments to Regulation Z implementing the Home
Equity Loan Consumer Protection Act. Awaiting
decision.
Synovus Financial Corp. v. Board of Governors, N o .
89-1394 (D.C. Cir., filed June 21, 1989). Petition for
review of Board order permitting relocation of a
bank holding company's national bank subsidiary
from Alabama to Georgia. Oral argument was held
on October 11, 1990. On December 10, the Justice
Department filed a brief on behalf of the Board and
the Office of the Comptroller of the Currency in
response to a request from the court regarding an
issue in the case.
MCorp v. Board of Governors,
N o . 89-2816 (5th
Cir., filed May 2, 1989). Appeal of preliminary
injunction against the Board enjoining pending and
future enforcement actions against a bank holding
company now in bankruptcy. On May 15, 1990, the
Fifth Circuit vacated the district court's order
enjoining the Board from proceeding with enforcement actions based on section 23A of the Federal
Reserve Act, but upheld the district court's order
enjoining such actions based on the Board's
source-of-strength doctrine. 900 F.2d 852 (5th Cir.
1990). On March 4, 1991, the Supreme Court
granted the parties' cross-petitions for certiorari,
N o s . 90-913, 90-914. The Board's brief is due on
April 18, 1991.
MCorp v. Board of Governors,
No. CA3-88-2693
(N.D. Tex., filed October 10, 1988). Application for
358
Federal Reserve Bulletin • May 1991
injunction to set aside temporary cease and desist
orders. Stayed pending outcome of MCorp v. Board
of Governors, 900 F.2d 852 (5th Cir. 1990).
White v. Board of Governors, No. CU-S-88-623-RDF
(D. N e v . , filed July 29, 1988). Age discrimination
complaint. Board's motion to dismiss or for summary judgment was denied on January 3, 1991.
Awaiting trial date.
WRITTEN AGREEMENTS
RESERVE BANKS
APPROVED BY
FEDERAL
The Bank of the West
Irving, Texas
FINAL ENFORCEMENT ORDERS ISSUED BY THE
BOARD OF GOVERNORS
The Federal Reserve Board announced on March 12,
1991, the execution of a Written Agreement between
the Federal Reserve Bank of Dallas and H. Gary
Blankenship, the Bank of the West, Greater Southwest Bancshares, Inc., and Greater Southwest Bancshares, Inc. Employee Stock Ownership Plan, Irving,
Texas.
Banca Nazionale Del Lavoro
Rome, Italy
Sterling Bancorp, Inc.
St. Albans, West Virginia
The Federal Reserve Board announced on March 11,
1991, the issuance of a Cease and Desist Order against
Banca Nazionale Del Lavoro, Rome, Italy, and its
Atlanta, Georgia agency and N e w York, N e w York
branch.
The Federal Reserve Board announced on March 15,
1991, the execution of a Written Agreement between
the Federal Reserve Bank of Richmond, the Commissioner of Banking, State of West Virginia, and Sterling
Bancorp, Inc., St. Albans, West Virginia.
BCCI Holdings (Luxembourg) S.A.
Luxembourg, Luxembourg
United American Bank of Central Florida
Orlando, Florida
The Federal Reserve Board announced on March 4,
1991, the joint issuance, with the superintendent of
Banks of the State of N e w York, of an Order against
BCCI Holdings (Luxembourg) S.A., Luxembourg,
and Bank of Credit and Commerce International S.A.,
Luxembourg.
The Federal Reserve Board announced on March 5,
1991, the execution of a Written Agreement between
the Federal Reserve Bank of Atlanta, the State Comptroller and Banking Commissioner of the State of
Florida, and the United American Bank of Central
Florida, Orlando, Florida.
359
Directors of
Federal Reserve Banks and Branches
Regional decentralization and a combination of
governmental and private characteristics are important hallmarks of the uniqueness of the Federal Reserve System. Under the Federal Reserve
Act, decentralization was achieved by division of
the country into twelve regions called Federal
Reserve Districts and the establishment in each
District of a separately incorporated Federal
Reserve Bank, with its own board of directors.
The blending of governmental and private characteristics is provided through ownership of the
stock of the Reserve Bank by member banks in
its District who also elect the majority of the
board of directors, and by the general supervision of the Reserve Banks by the Board of
Governors, an agency of the federal government.
The Board also appoints a minority of each board
of directors. Thus, there are essential elements of
regional participation and counsel in the conduct
of the System's affairs for which the Federal
Reserve relies in an important way on the contributions of the directors of the Federal Reserve
Banks and Branches.
The following list of directors of Federal Reserve Banks and Branches shows for each director the class of directorship, the principal business affiliation, and the date the current term
expires. Each Federal Reserve Bank has nine
members on its board of directors: The member
banks elect the three Class A and three Class B
directors, and the Board of Governors appoints
the three directors in Class C. Directors are
DISTRICT
chosen without discrimination as to race, creed,
color, sex, or national origin.
Class A directors of each Reserve Bank represent the stockholding member banks of the Federal Reserve District. Class B and Class C directors represent the public and are chosen with
due, but not exclusive, consideration of the interests of agriculture, commerce, industry, services, labor, and consumers; they may not be
officers, directors, or employees of any bank. In
addition, Class C directors may not be stockholders of any bank. The Board of Governors designates annually one Class C director as chairman
of the board of directors of each District Bank,
and designates another Class C director as deputy chairman.
Each of the twenty-five Branches of Federal
Reserve Banks has a board of either seven or five
directors, a majority of whom are appointed by
the parent Federal Reserve Bank; the others are
appointed by the Board of Governors. One of the
Board's appointees is designated annually as
chairman of the board of that Branch in a manner
prescribed by the parent Federal Reserve Bank.
The names of the chairman and deputy chairman of the board of directors of each Reserve
Bank and of the chairman of each Branch are
published monthly in the Federal Reserve Bulletin
1. The current list appears on page A86 of this Bulletin.
Term
expires
Dec. 31
L—BOSTON
Class A
William H. Chadwick
Terrence Murray
Norman F.C. Kent
Vice Chairman of the Board and Chief Operating Officer, Banknorth
Group, Inc., Burlington, Vermont
Chairman of the Board, President, and Chief Executive Officer,
Fleet/Norstar Financial Group, Inc., Providence, Rhode Island
President, First National Bank of Portsmouth, Portsmouth,
N e w Hampshire
1991
1992
1993
360
Federal Reserve Bulletin • May 1991
DISTRICT
1—Continued
Term
expires
Dec. 31
Class B
Edward H. Ladd
Joan T. Bok
Stephen R. Levy
Chairman and Chief Executive Officer, Standish, Ayer and Wood,
Inc., Boston, Massachusetts
Chairman of the Board, N e w England Electric System,
Westborough, Massachusetts
Chairman of the Board and Chief Executive Officer, Bolt Beranek
and Newman, Inc., Cambridge, Massachusetts
1991
Chairman of the Board and Chief Executive Officer, N e w England
Medical Center, Inc., Boston, Massachusetts
Maurits C. Boas Professor of International Economics, Harvard
University, Cambridge, Massachusetts
1991
1992
1993
Class C
Dr. Jerome H. Grossman
Richard N . Cooper
1993
Vacancy
DISTRICT 2—NEW
1992
YORK
Class A
John F. McGillicuddy
Victor J. Riley, Jr.
Barbara Harding
Chairman of the Board and Chief Executive Officer, Manufacturers
Hanover Trust Company, N e w York, N e w York
Chairman of the Board, President, and Chief Executive Officer,
KeyCorp, Albany, N e w York
Chairman of the Board and Chief Executive Officer, Phillipsburg
National Bank and Trust Company, Phillipsburg, N e w Jersey
1991
Chairman of the Board and Chief Executive Officer, Bristol-Myers
Squibb Company, N e w York, N e w York
Chairman of the Board and Chief Executive Officer,
International Paper, Purchase, N e w York
Chairman and Chief Executive Officer, ITT Corporation, N e w York,
N e w York
1991
Chairman and Chief Executive Officer, American International
Group, Inc., N e w York, N e w York
Presiding Partner, Simpson Thacher & Bartlett, N e w York,
N e w York
President, Barnard College, N e w York, N e w York
1991
1992
1993
Class B
Richard L. Gelb
John A. Georges
Rand V. Araskog
1992
1993
Class C
Maurice R. Greenberg
Cyrus R. Vance
Ellen V. Futter
1992
1993
—Buffalo Branch
Appointed by the Federal Reserve Bank
Richard H. Popp
Robert G. Wilmers
Wilbur F. Beh
Susan A. McLaughlin
Operating Partner, Southview Farm, Castile, N e w York
Chairman of the Board and Chief Executive Officer, Manufacturers
and Traders Trust Company, Buffalo, N e w York
President and Chief Executive Officer, F N B of Rochester,
Rochester, N e w York
President, Eastman Savings and Loan Association, Rochester,
N e w York
1991
1991
1992
1993
Directors of Federal Reserve Banks and Branches
361
Term
expires
Dec. 31
DISTRICT
2—Continued
Buffalo Branch—Continued
Appointed by the Board of Governors
Mary Ann Lambertsen
Herbert L. Washington
Joseph J. Castiglia
DISTRICT
Vice President—Human Resources and Information Systems,
Fisher-Price, Division of The Quaker Oats Company,
East Aurora, N e w York
HLW Fast Track, Inc., Rochester, N e w York
President and Chief Executive Officer, Pratt & Lambert, Inc.,
Buffalo, N e w York
1991
1992
1993
3—PHILADELPHIA
Class A
H. Bernard Lynch
Samuel A. McCullough
Gary F. Simmerman
President and Chief Executive Officer, The First National Bank of
Wyoming, Wyoming, Delaware
Chairman of the Board and Chief Executive Officer,
Meridian Bancorp, Inc., Reading, Pennsylvania
President and Chief Executive Officer, United Jersey Bank/South,
N . A . , Cherry Hill, N e w Jersey
1991
1992
1993
Class B
Nicholas Riso
David W. Huggins
James M. Mead
Executive Vice President, A H O L D , U . S . A . , Harrisburg,
Pennsylvania
President, R M S Technologies, Inc., Marlton, N e w Jersey
President, Capital Blue Cross, Harrisburg, Pennsylvania
1991
1992
1993
Class C
Donald J. Kennedy
Peter A. Benoliel
Jane G. Pepper
DISTRICT
Business Manager, International Brotherhood of Electrical Workers,
Local Union No. 269, Trenton, N e w Jersey
Chairman of the Board, Quaker Chemical Corporation,
Conshohocken, Pennsylvania
President, The Pennsylvania Horticultural Society,
Philadelphia, Pennsylvania
1991
1992
1993
4—CLEVELAND
Class A
William T. McConnell
Frank Wobst
Alfred C. Leist
President, The Park National Bank, Newark, Ohio
Chairman of the Board and Chief Executive Officer,
Huntington Bancshares Incorporated, Columbus, Ohio
President, Chairman, and Chief Executive Officer, Apple Creek
Banking Company, Apple Creek, Ohio
1991
1992
President and Chief Executive Officer, Battelle Memorial Institute,
Columbus, Ohio
Chairman of the Board, Clearcreek Properties, Lexington, Kentucky
Former President, The Limited Stores, Inc., Columbus, Ohio
1991
1993
Class B
Douglas E. Olesen
Laban P. Jackson, Jr.
Verna K. Gibson
1992
1993
362
Federal Reserve Bulletin • May 1991
DISTRICT
Term
expires
Dec. 31
4—Continued
Class C
John R. Miller
A. William Reynolds
John R. Hodges
Former President and Chief Operating Officer, The Standard Oil
Company (Ohio), Cleveland, Ohio
Chairman and Chief Executive Officer, GenCorp, Fairlawn, Ohio
President, Ohio AFL-CIO, Columbus, Ohio
1991
1992
1993
—Cincinnati Branch
Appointed by the Federal Reserve Bank
Allen L. Davis
Clay Parker Davis
Jack W. Buchanan
Harry A. Shaw III
President and Chief Executive Officer, The Provident Bank,
Cincinnati, Ohio
President and Chief Executive Officer, Citizens National Bank,
Somerset, Kentucky
President, Sphar & Company, Inc., Winchester, Kentucky
Chairman and Chief Executive Officer, Huffy Corporation,
1991
1992
1993
1993
Dayton, Ohio
Appointed by the Board of Governors
Kate Ireland
Eleanor Hicks
Marvin Rosenberg
National Chairman of the Board, Frontier Nursing Service,
Wendover, Kentucky
Advisor for International Liaison, Protocol, and Services and
Associate Professor of Political Science, University of Cincinnati,
Cincinnati, Ohio
Partner, Towne Properties, Ltd., Cincinnati, Ohio
1991
1992
1993
—Pittsburgh Branch
Appointed by the Federal Reserve Bank
E. James Trimarchi
William F. Roemer
George A. Davidson, Jr.
I.N. Rendall Harper, Jr.
President and Chief Executive Officer, First Commonwealth
Financial Corporation, Indiana, Pennsylvania
Chairman and Chief Executive Officer, Integra Financial
Corporation, Pittsburgh, Pennsylvania
Chairman of the Board and Chief Executive Officer,
Consolidated Natural Gas Company, Pittsburgh, Pennsylvania
President, American Micrographics Company, Inc., Monroeville,
Pennsylvania
1991
1992
1993
1993
Appointed by the Board of Governors
Jack B. Piatt
Robert P. Bozzone
Sandra L. Phillips
DISTRICT
Chairman of the Board, Millcraft Industries, Inc., Washington,
Pennsylvania
President and Chief Executive Officer, Allegheny Ludlum
Corporation, Pittsburgh, Pennsylvania
Executive Director, Pittsburgh Partnership for Neighborhood
Development, Pittsburgh, Pennsylvania
1991
Chairman of the Board and President, Merchants & Miners National
Bank, Oak Hill, West Virginia
Chairman, President, and Chief Executive Officer,
Virginia Community Bank, Louisa, Virginia
Chairman, President, and Chief Executive Officer,
South Carolina National Bank, Columbia, South Carolina
1991
1992
1993
5—RICHMOND
Class A
C.R. Hill, Jr.
A. Pierce Stone
James G. Lindley
1992
1993
Directors of Federal Reserve Banks and Branches
DISTRICT
Term
expires
Dec. 31
5—Continued
Class B
Edward H. Co veil
R.E. Atkinson, Jr.
Paul A. DelaCourt
363
President, The Covell Company, Easton, Maryland
Chairman, Dilmar Oil Company, Inc., Florence, South Carolina
Chairman, The North Carolina Enterprise Corporation,
Raleigh, North Carolina
1991
1992
1993
Partner, McGuire, Woods, Battle & Boothe, Richmond, Virginia
President, Faison Associates, Charlotte, North Carolina
Executive Director, Consumer Federation of America,
Washington, D.C.
1991
1992
1993
Class C
Anne Marie Whittemore
Henry J. Faison
Stephen Brobeck
—Baltimore Branch
Appointed by the Federal Reserve Bank
H. Grant Hathaway
Joseph W. Mosmiller
Richard M. Adams
Daniel P. Henson III
Chairman of the Board, Maryland National Bank, Baltimore,
Maryland
Chairman of the Board, Loyola Federal Savings and Loan
Association, Baltimore, Maryland
Chairman and Chief Executive Officer, United Bankshares, Inc.,
Parkersburg, West Virginia
Senior Development Director, Struever Bros., Eccles & Rouse,
Inc., Baltimore, Maryland
1991
1991
1992
1993
Appointed by the Board of Governors
Thomas R. Shelton
John R. Hardesty, Jr.
William H. Wynn
President, Case Foods, Inc., Salisbury, Maryland
President, Preston Energy, Inc., Kingwood, West Virginia
International President, United Food and Commercial Workers
International Union, A F l ^ C I O & CLC, Washington, D.C.
1991
1992
1993
—Charlotte Branch
Appointed by the Federal Reserve Bank
Crandall C. Bowles
L. Glenn Orr, Jr.
David B. Jordan
Jim M. Cherry, Jr.
President, The Springs Company, Lancaster, South Carolina
Chairman, President, and Chief Executive Officer, Southern
National Corporation, Lumberton, North Carolina
President, Chief Executive Officer, and Director, Omni Capital
Group, Inc. and O M N I B A N K , Salisbury, North Carolina
President and Chief Executive Officer, Williamsburg First National
Bank, Kingstree, South Carolina
1991
1991
1992
1993
Appointed by the Board of Governors
Harold D. Kingsmore
Anne M. Allen
William E. Masters
President and Chief Operating Officer, Graniteville Company,
Graniteville, South Carolina
President, Anne Allen & Associates, Inc., Greensboro, North
Carolina
President, Perception, Inc., Easley, South Carolina
1991
1992
1993
364
Federal Reserve Bulletin • May 1991
DISTRICT
Term
expires
Dec. 31
6—ATLANTA
Class A
Virgil H. Moore, Jr.
W.H. Swain
James B. Williams
Chairman of the Board and Chief Executive Officer, First Farmers
and Merchants National Bank, Columbia, Tennessee
Chairman of the Board, First National Bank, Oneida, Tennessee
President and Chief Executive Officer, SunTrust Banks, Inc.,
Atlanta, Georgia
1991
Co-Owner, Gemini Springs Farm, DeBary, Florida
Chairman of the Board and President, Sherman International
Corporation, Birmingham, Alabama
Chairman of the Board and Chief Executive Officer, Rubenstein
Brothers, Inc., N e w Orleans, Louisiana
1991
1992
1992
1993
Class B
Saundra H. Gray
J. Thomas Holton
Andre M. Rubenstein
1993
Class C
Larry L. Prince
Leo Benatar
Edwin A. Huston
Chairman and Chief Executive Officer, Genuine Parts Company,
Atlanta, Georgia
Chairman of the Board and President, Engraph, Inc.,
Atlanta, Georgia
Senior Executive Vice President-Finance, Ryder System, Inc.,
Miami, Florida
1991
1992
1993
—Birmingham Branch
Appointed by the Federal Reserve Bank
Shelton E. Allred
William F. Childress
Robert M. Barrett
Julian W. Banton
Chairman of the Board, President, and Chief Executive Officer,
Frit Industries, Inc., Ozark, Alabama
President, First American Federal Savings and Loan Association,
Huntsville, Alabama
Chairman and President, The First National Bank, Wetumpka,
Alabama
Chairman, President, and Chief Executive Officer, SouthTrust Bank
1991
1991
1992
1993
of Alabama, N . A . , Birmingham, Alabama
Appointed by the Board of Governors
Roy D. Terry
Nelda P. Stephenson
Donald E. Boomershine
President and Chief Executive Officer, Terry Manufacturing
Company, Inc., Roanoke, Alabama
President, Nelda Stephenson Chevrolet, Inc., Florence, Alabama
President, Better Business Bureau of Central Alabama, Inc.,
Birmingham, Alabama
1991
1992
1993
—Jacksonville Branch
Appointed by the Federal Reserve Bank
Perry M. Dawson
Samuel H. Vickers
Merle L. Graser
Hugh H. Jones, Jr.
President and Chief Executive Officer, Suncoast Schools Federal
Credit Union, Tampa, Florida
Chairman, President, and Chief Executive Officer,
Design Containers, Inc., Jacksonville, Florida
Chairman and Chief Executive Officer, First National Bank
of Venice, Venice, Florida
Chairman of the Board and Chief Executive Officer, Barnett Bank
of Jacksonville, N . A . , Jacksonville, Florida
1991
1991
1992
1993
Directors of Federal Reserve Banks and Branches
DISTRICT
6—Continued
Jacksonville Branch—Continued
Appointed by the Board of Governors
President and Chief Executive Officer, BAMSI, Inc.,
Titusville, Florida
Vice Chairman of the Board, President, and Chief Executive Officer,
Sunshine Jr. Stores, Inc., Panama City, Florida
General Partner, Sunshine Cafes and Vice President,
Vista Landscaping, Orlando, Florida
Hugh M. Brown
Lana Jane Lewis-Brent
Joan Dial Ruffier
365
Term
expires
Dec. 31
1991
1992
1993
—Miami Branch
Appointed by the Federal Reserve Bank
Roberto G. Blanco
A. Gordon Oliver
Steven C. Shimp
Pat L. Tornillo, Jr.,
Vice Chairman of the Board and Chief Financial Officer, Republic
National Bank of Miami, Miami, Florida
Chairman, President, and Chief Executive Officer, Citizens and
Southern National Bank of Florida, Fort Lauderdale, Florida
President, O-A-K/Florida, Inc., Fort Myers, Florida
Executive Vice President, United Teachers of Dade, Miami, Florida
1991
1992
1993
1993
Appointed by the Board of Governors
Dorothy C. Weaver
Jose L. Saumat
Michael T. Wilson
President, Intercap Equities, Inc., Coral Gables, Florida
President, Greater Miami Trading, Inc., Miami, Florida
President, Vinegar Bend Farms, Inc., Belle Glade, Florida
1991
1992
1993
—Nashville Branch
Appointed by the Federal Reserve Bank
William Baxter Lee III
Edwin W. Moats, Jr.
James D. Harris
Williams E. Arant, Jr.
Chairman of the Board and President, Southeast Services
Corporation, Knoxville, Tennessee
Chairman of the Board and Chief Executive Officer, Metropolitan
Federal Savings and Loan Association, Nashville, Tennessee
President and Chief Executive Officer, Brentwood National Bank,
Brentwood, Tennessee
President and Chief Executive Officer, First National Bank of
1991
1991
1992
1993
Knoxville, Knoxville, Tennessee
Appointed by the Board of Governors
Shirley A. Zeitlin
Harold A. Black
Victoria B. Jackson
President, Shirley Zeitlin & Co. Realtors, Nashville, Tennessee
Professor and Head, Department of Finance, College of Business
Administration, University of Tennessee, Knoxville, Tennessee
President and Chief Executive Officer, Diesel Sales and Service,
Inc. and Prodiesel, Inc., Nashville, Tennessee
1991
1992
1993
—New Orleans Branch
Appointed by the Federal Reserve Bank
Joel B. Bullard, Jr.
Stanley S. Scott
Earl W. Lundy
A. Hartie Spence
President, Joe Bullard Automotive Companies, Mobile, Alabama
President, Crescent Distributing Company, Harahan, Louisiana
Chairman of the Board and Chief Executive Officer, First National
Bank of Vicksburg, Vicksburg, Mississippi
President, Calcasieu Marine National Bank, Lake Charles,
Louisiana
1991
1991
1992
1993
366
Federal Reserve Bulletin • May 1991
DISTRICT 6—Continued
New Orleans Branch—Continued
TERM
Dec™
Appointed by the Board of Governors
JoAnn Slaydon
Vacancy
Victor Bussie
President, Slaydon's Ltd., Baton Rouge, Louisiana
President, Louisiana AFI^CIO, Baton Rouge, Louisiana
1991
1992
1993
DISTRICT 7—CHICAGO
Class A
John W. Gabbert
B.F. Backlund
David W. Fox
President and Chief Executive Officer, First of America
Bank-LaPorte, N.A., LaPorte, Indiana
Chairman of the Board and Chief Executive Officer,
Bartonville Bank, Bartonville, Illinois
Chairman, President, and Chief Executive Officer, The Northern
Trust Corporation and The Northern Trust Company,
Chicago, Illinois
1991
President, Naylor Farms, Inc., Jefferson, Iowa
Financial Consultant, Green Bay, Wisconsin
Associate Professor of Management, Krannert Graduate School of
Management, Purdue University, West Lafayette, Indiana
1991
1992
1993
Chairman of the Board and Chief Executive Officer,
Wisconsin Energy Corporation, Milwaukee, Wisconsin
Chairman of the Board, President, and Chief Executive Officer,
NICOR, Inc., Naperville, Illinois
President, Chicago Federation of Labor and Industrial Union
Council, AFL-CIO, Chicago, Illinois
1991
1992
1993
Class B
Max J. Nay lor
Paul J. Schierl
A. Charlene Sullivan
Class C
Charles S. McNeer
Richard G. Cline
Robert M. Healey
1992
1993
—Detroit Branch
Appointed by the Federal Reserve Bank
Robert J. Mylod
Norman F. Rodgers
Charles E. Allen
William E. Odom
Chairman of the Board, President, and Chief Executive Officer,
Michigan National Corporation, Farmington Hills, Michigan
President and Chief Executive Officer, Hillsdale County National
Bank, Hillsdale, Michigan
President and Chief Executive Officer, Graistone Realty Advisors,
Inc., Detroit, Michigan
Chairman, Ford Motor Credit Company, Dearborn, Michigan
1991
1992
1993
1993
Appointed by the Board of Governors
Phyllis E. Peters
J. Michael Moore
Beverly Beltaire
Director, Professional Standards Review, Deloitte & Touche,
Detroit, Michigan
Chairman of the Board and Chief Executive Officer,
Invetech Company, Detroit, Michigan
President, P R Associates, Inc., Detroit, Michigan
1991
1992
1993
Directors of Federal Reserve Banks and Branches
DISTRICT 8—ST.
Term
expires
Dec. 31
LOUIS
Class A
Henry G. River, Jr.
W.E. Ayres
Ray U. Tanner
367
President and Chief Executive Officer, First National Bank in
Pinckneyville, Pinckneyville, Illinois
Chairman of the Board and Chief Executive Officer, Simmons First
National Bank of Pine Bluff, Pine Bluff, Arkansas
Chairman of the Board and Chief Executive Officer, Jackson
National Bank and Volunteer Bancshares, Inc.,
Jackson, Tennessee
1991
1992
1993
Class B
Thomas F. McLarty III
Frank M. Mitchener, Jr.
Warren R. Lee
Chairman of the Board and Chief Executive Officer, Arkla, Inc.,
Little Rock, Arkansas
President, Mitchener Farms, Inc., Sumner, Mississippi
President, W.R. Lee & Associates, Inc., Louisville, Kentucky
1991
1992
1993
Class C
Robert H. Quenon
H. Edwin Trusheim
Janet McAfee Weakley
Chairman, Peabody Holding Company, Inc., St. Louis, Missouri
Chairman of the Board and Chief Executive Officer, General
American Life Insurance Company, St. Louis, Missouri
President, Janet McAfee, Inc., St. Louis, Missouri
1991
1992
1993
—Little Rock Branch
Appointed by the Federal Reserve Bank
Barnett Grace
Patricia M. Townsend
James V. Kelley III
Mahlon A. Martin
Chairman and Chief Executive Officer, First Commercial Bank,
N . A . , Little Rock, Arkansas
President, Townsend Company, Stuttgart, Arkansas
Chairman, President, and Chief Executive Officer, First United
Bancshares, Inc., El Dorado, Arkansas
President, Winthrop Rockefeller Foundation, Little Rock, Arkansas
1991
1992
1993
1993
Appointed by the Board of Governors
James R. Rodgers
L. Dickson Flake
William E. Love
Airport Manager, Little Rock Regional Airport,
Little Rock, Arkansas
President, Barnes, Quinn, Flake & Anderson, Inc.,
Little Rock, Arkansas
President, Sound-Craft Systems, Inc., Morrilton, Arkansas
1991
1992
1993
-Louisville Branch
Appointed by the Federal Reserve Bank
Douglas M. Lester
Morton Boyd
Laura M. Douglas
Vacancy
Chairman of the Board, President, and Chief Executive Officer,
Trans Financial Bancorp, Inc., Bowling Green, Kentucky
Chairman and Chief Executive Officer, First Kentucky National
Corporation, Louisville, Kentucky
Legal Director, Metropolitan Sewer District, Louisville, Kentucky
1991
1992
1993
1993
368
Federal Reserve Bulletin • May 1991
Term
expires
Dec. 31
DISTRICT
8—Continued
Louisville Branch—Continued
Appointed by the Board of Governors
Lois H. Gray
Daniel L. Ash
John A. Williams
Chairman of the Board, James N. Gray Construction
Company, Inc., Glasgow, Kentucky
President and Plant Manager (Retired), Rohm and Haas Kentucky
Incorporated, Louisville, Kentucky
Chairman and Chief Executive Officer, Computer Services, Inc.,
Paducah, Kentucky
1991
1992
1993
—Memphis Branch
Appointed by the Federal Reserve Bank
James L. Magee
Michael J. Hennessey
Thomas M. Garrott
Larry A. Watson
Chairman and Chief Executive Officer, Farmers Bank & Trust
Company, Blytheville, Arkansas
President, Munro & Company, Inc., Wynne, Arkansas
President and Chief Operating Officer, National Bank of Commerce
and National Commerce Bancorporation, Memphis, Tennessee
Chairman of the Board and President, Liberty Federal Savings
1991
1992
1993
1993
Bank, Paris, Tennessee
Appointed by the Board of Governors
Katherine Hinds Smythe
Sandra B. SandersonChesnut
Seymour B. Johnson
DISTRICT
President, Memorial Park, Inc., Memphis, Tennessee
President and Chief Executive Officer, Sanderson Plumbing
Products, Inc., Columbus, Mississippi
Owner, Kay Planting Company, Indianola, Mississippi
1991
1992
1993
9—MINNEAPOLIS
Class A
James H. Hearon III
Rodney W. Fouberg
Charles L. Seaman
Chairman of the Board and Chief Executive Officer, National City
Bank, Minneapolis, Minnesota
Chairman of the Board, Farmers and Merchants Bank and Trust
Co., Aberdeen, South Dakota
President and Chief Executive Officer, First State Bank of Warner,
Warner, South Dakota
1991
President, Trubilt Auto Body, Inc., Eau Claire, Wisconsin
Partner, Triple Adams Farms, Minot, North Dakota
President, St. John Forest Products, Inc., Spalding, Michigan
1991
1992
1993
Professor, Consumption and Consumer Economics, Department of
Agricultural and Applied Economics, University of Minnesota,
St. Paul, Minnesota
Chairman of the Board and Chief Executive Officer,
Opus Corporation, Minneapolis, Minnesota
President and Chief Executive Officer, Pioneer Metal Finishing,
Minneapolis, Minnesota
1991
1992
1993
Class B
Duane E. Dingmann
Bruce C. Adams
Earl R. St. John, Jr.
Class C
Jean D. Kinsey
Gerald A. Rauenhorst
Delbert W. Johnson
1992
1993
Directors of Federal Reserve Banks and Branches
DISTRICT
Term
expires
Dec. 31
9—CONTINUED
—Helena
369
Branch
Appointed by the Federal Reserve Bank
Beverly D. Harris
Robert T. Gerhardt
Nancy M. Stephenson
President, Empire Federal Savings and Loan Association,
Livingston, Montana
Chairman, President, and Chief Executive Officer, First Interstate
Bank of Montana, N . A . , Kalispell, Montana
Executive Director, Neighborhood Housing Services, Great Falls,
Montana
1991
1992
1992
Appointed by the Board of Governors
James E. Jenks
J. Frank Gardner
Jenks Farms, Hogeland, Montana
President, Montana Resources, Inc., Butte, Montana
DISTRICT 10—KANSAS
1991
1992
CITY
Class A
Robert L. Hollis
Harold L. Gerhart, Jr.
Roger L. Reisher
Chairman of the Board and Chief Executive Officer, First National
Bank and Trust Co. of Okmulgee, Okmulgee, Oklahoma
Chairman and Chief Executive Officer, First National Bank,
Newman Grove, Nebraska
Co-Chairman of the Board, FirstBank Holding Company of
Colorado, Lakewood, Colorado
1991
1992
1993
Class B
President, CF & I Steel Corporation, Pueblo, Colorado
Chairman of the Board and Chief Executive Officer, Kerr-McGee
Corporation, Oklahoma City, Oklahoma
Buffalo, Oklahoma
Frank J. Yaklich, Jr.
Frank A. McPherson
Don E. Adams
1991
1992
1993
Class C
Burton A. Dole, Jr.
Fred W. Lyons, Jr.
Thomas E. Rodriguez
—Denver
Chairman of the Board and President, Puritan-Bennett Corporation,
Overland Park, Kansas
President, Marion Merrell D o w Inc., Kansas City, Missouri
President and General Manager, Thomas E. Rodriguez &
Associates, P.C., Aurora, Colorado
1991
1992
1993
Branch
Appointed by the Federal Reserve Bank
Norman R. Corzine
W. Richard Scarlett III
Henry A. True III
Peter R. Decker
President and Chief Executive Officer, First National Bank in
Albuquerque, Albuquerque, N e w Mexico
Chairman of the Board and Chief Executive Officer, Jackson State
Bank, Jackson Hole, Wyoming
Partner, True Companies, Casper, Wyoming
President, Decker & Associates, Denver, Colorado
1991
1991
1992
1993
Appointed by the Board of Governors
Barbara B. Grogan
Sandra K. Woods
Gilbert Sanchez
President, Western Industrial Contractors, Inc., Denver, Colorado
Vice President, Corporate Real Estate, Adolph Coors Company,
Golden, Colorado
President, N e w Mexico Highlands University, Las Vegas,
N e w Mexico
1991
1992
1993
370
Federal Reserve Bulletin • May 1991
DISTRICT 10—CONTINUED
TERM
expires
—Oklahoma City Branch
Dec. 31
Appointed by the Federal Reserve Bank
C. Kendric Fergeson
W. Dean Hidy
John Wm. Laisle
Chairman of the Board and Chief Executive Officer, The National
Bank of Commerce, Altus, Oklahoma
Chairman of the Board, Triad Bank, N.A., Tulsa, Oklahoma
President, MidFirst Bank, SSB, Oklahoma City, Oklahoma
1991
1992
1992
Appointed by the Board of Governors
Ernest L. Holloway
William R. Allen
President, Langston University, Langston, Oklahoma
President and Chief Executive Officer, Union Equity Cooperative
Exchange, Enid, Oklahoma
1991
1992
—Omaha Branch
Appointed by the Federal Reserve Bank
Sheila Griffin
John T. Selzer
John R. Cochran
Associate Director for Audience and Program Development, Lied
Center for Performing Arts, University of Nebraska-Lincoln,
Lincoln, Nebraska
Chairman of the Board and Chief Executive Officer, FirsTier Bank,
N.A., Scottsbluff, Nebraska
President and Chief Executive Officer, Norwest Bank, Nebraska,
1991
1991
1992
N.A., Omaha, Nebraska
Appointed by the Board of Governors
LeRoy W. Thom
Herman Cain
DISTRICT
President, T-L Irrigation Company, Hastings, Nebraska
President and Chief Executive Officer, Godfather's Pizza, Inc.,
Omaha, Nebraska
1991
1992
Chairman of the Board and Chief Executive Officer, Gulf National
Bank, Texas City, Texas
Chairman of the Board, Tanglewood Bank, N.A., Houston, Texas
Chairman of the Board, Frost National Bank, San Antonio, Texas
1991
President, Yates Drilling Company, and Executive Vice President,
Yates Petroleum Corporation, Artesia, New Mexico
President, Texas Research League, Austin, Texas
Farmer, Roscoe, Texas
1991
Chairman of the Board and Chief Executive Officer, The Tetra
Group, Inc., Dallas, Texas
Chairman of the Board and Chief Executive Officer, Linbeck
Construction Corporation, Houston, Texas
Chairman and Chief Executive Officer, Cisneros Asset Management
Co., San Antonio, Texas
1991
11—DALLAS
Class A
Charles T. Doyle
Robert G. Greer
T.C. Frost
1992
1993
Class B
Peyton Yates
Gary E. Wood
J.B. Cooper, Jr.
1992
1993
Class C
Hugh G. Robinson
Leo E. Linbeck, Jr.
Henry G. Cisneros
1992
1993
Directors of Federal Reserve Banks and Branches
DISTRICT 11—CONTINUED
371
TERM
expires
—El Paso Branch
Dec. 31
Appointed by the Federal Reserve Bank
Humberto F. Sambrano
Wayne Merritt
Ben H. Haines, Jr.
Alvin T. Johnson
President, SamCorp General Contractors, El Paso, Texas
President, Claydesta National Bank, Midland, Texas
President, First National Bank of Dona Ana County, Las Cruces,
New Mexico
Senior Vice President and Founder, Management Assistance
Corporation of America, El Paso, Texas
1991
1992
1993
1993
Appointed by the Board of Governors
Donald G. Stevens
W. Thomas Beard III
Diana S. Natalicio
Owner, Stevens Oil Company, Roswell, New Mexico
President, Leoncita Cattle Company, Alpine, Texas
President, The University of Texas at El Paso, El Paso, Texas
1991
1992
1993
—Houston Branch
Appointed by the Federal Reserve Bank
Jeff Austin, Jr.
Jenard M. Gross
Walter E. Johnson
Clive Runnells
President, First National Bank of Jacksonville, Jacksonville, Texas
President, Gross Builders, Inc., Houston, Texas
President and Chief Executive Officer, Southwest Bank of Texas,
Houston, Texas
President and Director, Runnells Cattle Company, Bay City, Texas
1991
1992
1993
1993
Appointed by the Board of Governors
Gilbert D. Gaedcke, Jr.
Judy Ley Allen
Milton Carroll
Chairman of the Board and Chief Executive Officer, Gaedcke
Equipment Company, Houston, Texas
Partner and Administrator, Allen Investments, Houston, Texas
President, Instrument Products, Inc., Houston, Texas
1991
1992
1993
—San Antonio Branch
Appointed by the Federal Reserve Bank
Jane Flato Smith
Gregory W. Crane
Javier Garza
Sam R. Sparks
Investor and Rancher, San Antonio, Texas
Chairman of the Board, President, and Chief Executive Officer,
Broadway National Bank, San Antonio, Texas
Executive Vice President, The Laredo National Bank, Laredo,
Texas
President, Sam R. Sparks, Inc., Santa Rosa, Texas
1991
1992
1993
1993
Appointed by the Board of Governors
Roger R. Hemminghaus
Lawrence E. Jenkins
Erich Wendl
Chairman of the Board, President, and Chief Executive Officer,
Diamond Shamrock, Inc., San Antonio, Texas
Vice President (Retired), Lockheed Missiles and Space Company,
Austin, Texas
President, Maverick Markets, Inc., Corpus Christi, Texas
1991
1992
1993
372
Federal Reserve Bulletin • May 1991
DISTRICT 12—SAN
FRANCISCO
Class A
William E.B. Siart
Warren K.K. Luke
Richard L. Mount
Term
expires
Dec. 31
President, First Interstate Bancorp, Los Angeles, California
President and Director, Hawaii National Bancshares, Inc., and Vice
Chairman of the Board, Hawaii National Bank, Honolulu, Hawaii
Chairman, President, and Chief Executive Officer, Saratoga
Bancorp, Saratoga, California
1991
1992
Chairman, Tooley & Company, Investment Builders, Los Angeles,
California
President, Portland General Electric, Portland, Oregon
Co-Chairman of the Board, Nordstrom, Inc., Seattle, Washington
1991
President and Chief Executive Officer, Chambers Communications
Corp., Eugene, Oregon
Chairman of the Board and Chief Executive Officer, The Times
Mirror Company, Los Angeles, California
Chairman of the Board, President, and Chief Executive Officer,
Kaiser Foundation Health Plan, Inc., and Kaiser Foundation
Hospitals, Oakland, California
1991
1993
Class B
William L. Tooley
E. Kay Stepp
John N. Nordstrom
1992
1993
Class C
Carolyn S. Chambers
Robert F. Erburu
James A. Vohs
1992
1993
—Los Angeles Branch
Appointed by the Federal Reserve Bank
David R. Lovejoy
Ignacio E. Lozano, Jr.
Fred D. Jensen
Anita Landecker
Former Vice Chairman of the Board, Security Pacific National
Bank, Los Angeles, California
Editor-in-Chief, La Opinion, Los Angeles, California
Chairman of the Board, President, and Chief Executive Officer,
National Bank of Long Beach, Long Beach, California
Director of California Programs, Local Initiatives Support
Corporation, Los Angeles, California
1991
1991
1992
1993
Appointed by the Board of Governors
Harry W. Todd
Yvonne Brathwaite Burke
Donald G. Phelps
Managing Partner, Carlisle Enterprises, L.P., Coronado, California
Partner, Jones, Day, Reavis & Pogue, Los Angeles, California
Chancellor, Los Angeles Community College District, Los Angeles,
California
1991
1992
1993
—Portland Branch
Appointed by the Federal Reserve Bank
Stuart H. Compton
Cecil W. Drinkward
Stephen G. Kimball
Chairman of the Board and Chief Executive Officer, Pioneer Trust
Bank, N.A., Salem, Oregon
President and Chief Executive Officer, Hoffman Construction
Company, Portland, Oregon
President and Chief Executive Officer, Baker Boyer Bancorp,
Walla Walla, Washington
1991
1993
1993
Directors of Federal Reserve Banks and Branches
DISTRICT 12—Continued
Portland Branch—Continued
373
Term
Dec'n
Appointed by the Board of Governors
William A. Hilliard
Wayne E. Phillips, Jr.
Ross R. Runkel
Editor, The Oregonian, Portland, Oregon
Vice President, Phillips Ranch, Inc., Baker, Oregon
Director, Willamette University Center for Dispute Resolution,
Salem, Oregon
1991
1992
1993
—Salt Lake City Branch
Appointed by the Federal Reserve Bank
Gerald R. Christensen
Ronald S. Hanson
Curtis H. Eaton
Virginia P. Kelson
President and Chairman, First Federal Savings Bank,
Salt Lake City, Utah
President, Zions First National Bank, Salt Lake City, Utah
Vice President; Manager, Community Banking Area; and Member of
the Board of Directors, First Security Bank of Idaho, N.A.,
Twin Falls, Idaho
Partner, Ralston & Associates, Salt Lake City, Utah
1991
1992
1993
1993
Appointed by the Board of Governors
D.N. Rose
Gary G. Michael
Constance G. Hogland
President and Chief Executive Officer, Mountain Fuel Supply
Company, Salt Lake City, Utah
Chairman and Chief Executive Officer, Albertson's, Inc., Boise,
Idaho
Executive Director, Boise Neighborhood Housing Services, Inc.,
Boise, Idaho
1991
1992
1993
—Seattle Branch
Appointed by the Federal Reserve Bank
Robert P. Gray
H.H. Larison
B.R. Beeksma
Gerry B. Cameron
President, National Bank of Alaska, Anchorage, Alaska
President, Columbia Paint & Coatings, Spokane, Washington
Chairman of the Board, InterWest Savings Bank, Oak Harbor,
Washington
President and Chief Operating Officer, U.S. Bank of Washington,
N.A., Seattle, Washington
1991
1992
1993
1993
Appointed by the Board of Governors
Bruce R. Kennedy
Judith M. Runstad
George F. Russell, Jr.
Chairman, Alaska Air Group, Inc., Seattle, Washington
Managing Partner, Foster Pepper and Shefelman, Seattle,
Washington
Chairman, President and CEO, Frank Russell Company, Tacoma,
Washington
1991
1992
1993
1
Financial and Business Statistics
CONTENTS
WEEKLY REPORTING COMMERCIAL BANKS
Domestic Financial Statistics
Assets and liabilities
A19 All reporting banks
A21 Branches and agencies of foreign banks
MONEY STOCK AND BANK CREDIT
A3
A4
A5
A6
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds — Large member banks
FINANCIAL MARKETS
A22 Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates—money and capital markets
A24 Stock market—Selected statistics
A25 Selected financial institutions - Selected assets
and liabilities
POLICY INSTRUMENTS
A7
A8
A9
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Federal Reserve open market transactions
FEDERAL RESERVE BANKS
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
FEDERAL FINANCE
A27
A28
A29
A29
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U. S. Treasury - Types
and ownership
A30 U.S. government securities
dealers—Transactions
A31 U.S. government securities dealers—Positions
and financing
A32 Federal and federally sponsored credit
agencies —Debt outstanding
MONETARY AND CREDIT AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
COMMERCIAL BANKING INSTITUTIONS
All Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
SECURITIES MARKETS AND
CORPORATE FINANCE
A33 New security issues—State and local
governments and corporations
A34 Open-end investment companies—Net sales
and asset position
A34 Corporate profits and their distribution
A34 Total nonfarm business expenditures on new
plant and equipment
A35 Domestic finance companies-Assets and
liabilities and business credit
2
Federal Reserve Bulletin • May 1991
Domestic Financial Statistics — Continued
REAL ESTATE
A56 Foreign branches of U. S. banks—Balance
sheet data
A58 Selected U.S. liabilities to foreign official
institutions
A36 Mortgage markets
A37 Mortgage debt outstanding
REPORTED BY BANKS
IN THE UNITED STATES
CONSUMER INSTALLMENT CREDIT
A3 8 Total outstanding and net change
A39 Terms
FLOW OF FUNDS
A58
A59
A61
A62
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks'own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A62 Banks' own claims on unaffiliated foreigners
A63 Claims on foreign countries - Combined
domestic offices and foreign branches
A40 Funds raised in U.S. credit markets
A42 Direct and indirect sources of funds to credit
markets
A43 Summary of credit market debt outstanding
A44 Summary of credit market claims, by holder
REPORTED BY NONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES
Domestic Nonfinancial Statistics
A64 Liabilities to unaffiliated foreigners
A65 Claims on unaffiliated foreigners
SELECTED MEASURES
A45 Nonfinancial business activity —Selected
measures
A46 Labor force, employment, and unemployment
A47 Output, capacity, and capacity utilization
A48 Industrial production—Indexes and gross value
A50 Housing and construction
A51 Consumer and producer prices
A52 Gross national product and income
A53 Personal income and saving
International Statistics
SUMMARY STATISTICS
A54
A55
A55
A55
U.S. international transactions - Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
SECURITIES HOLDINGS AND TRANSACTIONS
A66 Foreign transactions in securities
A67 Marketable U.S. Treasury bonds and
notes-Foreign transactions
INTEREST AND EXCHANGE RATES
A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A69 Foreign exchange rates
A71 Guide to Tabular Presentation,
Statistical Releases, and Special
Tables
SPECIAL TABLE
All
Assets and liabilities of commercial banks,
December 3 1 , 1 9 9 0
Money Stock and Bank Credit
1.10
A3
R E S E R V E S , M O N E Y STOCK, L I Q U I D A S S E T S , A N D D E B T M E A S U R E S
Annual rates of change, seasonally adjusted in percent1
1990
1991
1990
Monetary and credit aggregates
Reserves of depository
Total
Required
Nonborrowed
Monetary base
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
12
n
14
15
16
17
18
19
Q2
Q3
Q4
Oct.
Nov.
Dec.
Jan.'
Feb.
2.4
2.5
-3.9
8.2
-1.4
-.9
-1.0
7.4
-1.4
-1.5
2.0
8.6
1.7
-.2
4.7
9.0
-9.4
-8.3
-5.2
7.6
3.1
1.1
6.8
5.4
15.3
.9
13.5
7.7
6.2
-3.9
2.1
18.4
9.8
17.5
15.4
16.4
5.2
6.2
2.9
2.8
6.3'
4.2
3.9
1.3
.9
7.0'
3.1
1.7
.7'
14.1
8.6
10.6
n.a.
n.a.
institutions2
1
2
3
4
Nontransaction
10 In M25
11 In M3 only6
Q1
3.7
3.0
1.6
1.9'
7.1r
3.4
2.2
1.1'
1.7'
6.0'
-.9
1.4
.8'
.1'
4.7'
3.1
.2
-.1'
1.1'
6.1'
5.1'
1.9
1.0
3.3
2.3
4.6
components
Time and savings deposits
Commercial banks
Savings
MMDAs
Small-denomination time7 4
Large-denomination time •
Thrift institutions
Savings
MMDAs
Small-denomination time
Large-denomination time
Money market mutual funds
20 General purpose and broker-dealer
21 Institution-only
Debt components4
22 Federal
23 Nonfederal
6.5
-9.7
3.8
-9.1
2.7
-3.9
1.8
-3.6'
2.2
-1.7'
-.7
-1.5'
1.2
-3.7'
.8
13.0
6.8
19.1
9.6
10.4
7.8
-.8
4.1
9.6
12.7
-2.9
5.9
8.2
15.5
-2.2
5.2
3.5
11.5
-8.5
6.7
1.9
18.0
-12.6
3.6
2.2
2.7'
1.9
7.3
3.2
17.5'
-4.3
12.0
-2.5
7.2
23.9
11.3
17.2
8.2
19.8
1.7
2.7
-3.2
-23.0
2.2
.4
-7.4
-28.7
-3.3
-7.7
-11.1
-27.3
-7.3
-7.2
-7.9
-26.3
-10.6
-11.9
-13.2
-24.7
-5.6
-5.5
-1.5
-29.9
-8.5
-16.7
-13.6
-39.3
-4.5
-1.9
-10.2
-30.7
9.1
8.5
-11.3
-31.6
18.1
9.1
4.7
14.8
10.0
21.6
11.2
30.4
8.8
35.1
4.6
9.0
16.4
51.8
29.7
42.0
14.1
84.9
6.8
6.2r
9.7
6.2'
14.4r
4.9'
11.4'
4.3'
15.5'
3.2'
13.1'
2.5'
10.9
2.6
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with regulatory changes in reserve requirements. (See also table 1.20.)
3. Seasonally adjusted, break-adjusted monetary base consists of (1) seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all 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.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions, less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCD), 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.
M2: Ml plus overnight (and continuing contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, money market
deposit accounts (MMDAs), savings and small-denomination time deposits
(time deposits—including retail RPs—in amounts of less than $100,000), and
balances in both taxable and tax-exempt general purpose and broker-dealer
money market mutual funds. Excludes individual retirement accounts (IRA)
and Keogh balances at depository institutions and money market funds. Also
excludes all balances held by U.S. commercial banks, money market funds
(general purpose and broker-dealer), foreign governments and commercial
banks, and the U.S. government.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by all depository institutions, term Eurodollars held by U.S. residents at foreign branches of U.S. banks worldwide and at all
5.6'
4.4'
n.a.
n.a.
banking offices in the United Kingdom and Canada, and balances in both taxable
and tax-exempt, institution-only money market mutual funds. Excludes amounts
held by depository institutions, the U.S. government, money market funds, and
foreign banks and official institutions. Also subtracted is the estimated amount of
overnight RPs and Eurodollars held by institution-only money market mutual
funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial
sectors are monthly averages, derived by averaging adjacent month-end levels.
Growth rates for debt reflect adjustments for discontinuities over time in the levels
of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker-dealer), MMDAs, and savings and small time
deposits.
6. Sum of large time deposits, term RPs, term Eurodollars of U.S. residents,
and money market fund balances (institution-only), less a consolidation adjustment that represents the estimated amount of overnight RPs and Eurodollars held
by institution-only money market mutual funds.
7. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
8. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
9. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
A4
DomesticNonfinancialStatistics • May 1991
1.11
R E S E R V E S O F D E P O S I T O R Y I N S T I T U T I O N S A N D R E S E R V E B A N K CREDIT
Millions of dollars
Monthly averages of
daily figures
Factors
Weekly averages of daily figures for week ending
1991
1990
1991
Dec.
Jan.
Feb.
Jan. 16
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Feb. 27
291,223
284,701
286,467
283,623
280,967
286,334
285,477
285,706
286,980
287,851
239,499
3,144
234,665
2,165
235,257
3,542
235,214
405
232,843
0
234,862
3,797
233,094
3,343
236,243
898
235,574
4,341
235,783
5,603
6,342
121
0
6,342
223
0
6,342
331
0
6,342
126
0
6,342
0
0
6,342
266
0
6,342
402
0
6,342
73
0
6,342
303
0
6,342
675
0
508
78
23
1,727
40,077
11,058
10,018
20,368
52
32
29
1,077
39,661
11,058
10,018
20,429
145
36
34
874
39,907
11,058
10,018
20,471
365
23
26
1,600
39,522
11,058
10,018
20,424
1,292
32
30
891
39,539
11,058
10,018
20,434
213
43
38
768
40,006
11,058
10,018
20,444
39
27
21
1,163
41,046
11,058
10,018
20,454
30
27
20
1,170
40,904
11,058
10,018
20,464
203
46
33
927
39,212
11,058
10,018
20,474
265
43
60
161
38,920
11,058
10,018
20,484
283,000
552
284,549
572
284,133
576
284,584
567
283,705
576
283,126
578
282,944
584
283,967
558
284,780
590
284,535
569
5,809
251
8,701
252
11,221
223
5,320
242
5,494
254
14,064
241
11,182
213
11,187
215
9,728
221
13,345
235
2,078
226
3,097
188
2,777
195
4,355
196
2,871
173
2,829
217
2,766
202
2,674
184
2,805
210
2,849
188
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2
3
4
5
6
7
8
9
10
11
12
13
14
U.S. government securities1, 2
Bought outright-system account
Held under repurchase agreements . . .
Federal agency obligations
Bought outright
Held under repurchase agreements . . .
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account .
Treasury currency outstanding
ABSORBING RESERVE F U N D S
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19
Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks3
9,170
8,467
9,246
8,377
8,513
8,690
9,649
9,612
8,936
9,017
31,582
20,379
19,643
21,483
20,893
18,111
19,467
18,851
21,261
18,672
End-of-month figures
Wednesday figures
1991
1990
1991
Dec.
Jan.
Feb.
Jan. 16
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Feb. 27
301,882
299,857
298,834
285,489
291,434
285,659
282,526
285,495
290,125
286,231
235,090
17,013
234,306
14,888
236,636
14,768
235,871
0
238,717
0
234,234
2,359
232,099
0
234,881
2,578
235,204
6,118
236,235
3,580
6,342
1,341
0
6,342
2,186
0
6,342
1,266
0
6,342
0
0
6,342
0
0
6,342
866
0
6,342
0
0
6,342
196
0
6,342
181
0
6,342
575
0
112
55
23
2,222
39,685
11,058
10,018
20,388
89
39
52
531
41,425
11,058
10,018
20,454
402
47
57
1,073
38,245
11,058
10,018
20,494
50
34
28
3,719
39,446
11,059
10,018
20,424
5,071
40
32
1,536
39,696
11,059
10,018
20,434
51
41
44
1,685
40,038
11,058
10,018
20,444
17
25
11
3,066
40,967
11,058
10,018
20,454
51
33
18
713
40,684
11,058
10,018
20,464
591
45
63
2,276
39,305
11,058
10,018
20,474
29
40
56
216
39,159
11,058
10,018
20,484
286,949
561
283,004
590
285,151
605
284,091
576
283,890
576
282,780
590
283,419
553
284,411
589
285,234
597
284,691
605
8,960
369
27,810
271
23,898
329
5,099
213
11,079
188
16,884
225
9,856
234
11,012
210
15,782
235
13,300
301
2,253
242
2,766
183
2,854
171
4,355
195
2,871
161
2,829
197
2,766
202
2,674
177
2,805
188
2,849
184
8,147
9,820
8,216
8,190
8,429
8,506
9,366
8,719
8,819
8,746
35,866
16,944
19,181
24,273
25,752
15,169
17,660
19,243
18,016
17,114
SUPPLYING RESERVE FUNDS
23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33
34
35
36
U.S. government securities1, 2
Bought outright-system account
Held under repurchase agreements . . .
Federal agency obligations
Bought outright
Held under repurchase agreements . . .
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account .
Treasury currency outstanding
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
39 Treasury
40
Foreign
41
Service-related balances and
adjustments
42
Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks3
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Beginning with the May 1990 Bulletin, this table has been revised to
correspond with the H.4.1 statistical release.
3. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Components may not add to totals because of rounding.
Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS
AS
Depository Institutions1
Millions of dollars
Monthly averages9
Reserve classification
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks2
Total vault cash
Applied vault cash 4 ,
Surplus vault cash
Total reserves
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks
1991
1988
1989
1990
1990
Dec.
Dec.
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan/
Feb.
37,837
28,204
25,909
2,295
63,746
62,699
1,047
1,716
130
1,244
35,436
29,822
27,374
2,448
62,810
61,888
922
265
84
20
30,237
31,777
28,884
2,893
59,120
57,456
1,665
326
76
23
32,448
30,842
28,280
2,562
60,728
59,860
868
927
430
127
33,303
30,625
28,149
2,476
61,452
60,544
909
624
418
6
32,127
31,515
28,925
2,590
61,052
60,206
847
410
335
18
33,382
31,086
28,663
2,423
62,045
61,099
947
230
162
24
30,237
31,777
28,884
2,893
59,120
57,456
1,665
326
76
23
22,023
33,220
28,969
4,250
50,992
48,824
2,168
534
33
27
19,825
33,477
28,724
4,753
48,548
46,742
1,807
252
37
34
Biweekly averages of daily figures for weeks ending
1990
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks2
Total vault cash
Applied vault cash
Surplus vault cash
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks8
Oct. 31
Nov. 14
Nov. 28
Dec. 12
Dec. 26
Jan. 9
Jan. 23
Feb. 6'
Feb. 20
Mar. 6
31,365
31,418
28,756
2,662
60,121
59,471
650
397
307
26
33,821
30,656
28,293
2,363
62,114
61,132
982
282
195
25
32,848
31,631
29,125
2,506
61,972
61,006
966
193
140
25
34,046
30,293
28,027
2,266
62,073
61,513
561
130
87
25
28,413
32,690
29,621
3,069
58,034
56,113
1,922
504
79
22
26,198
32,783
28,876
3,908
55,074
51,481
3,592
295
41
22
21,193
32,050r
28,222
3,828
49,415
48,478
937
884
28
28
18,776
35,759
30,384
5,375
49,160
46,439
2,721
191
35
30
20,049
33,341
28,638
4,703
48,687
46,934
1,753
179
37
27
20,218
32,005
27,629
4,376
47,847
46,634
1,214
426
41
50
1. These data also appear in the Board's H.3 (502) release. For address, see inside front cover.
2. Excludes required clearing balances and adjustments to compensate for float
and includes other off-balance sheet "as-of' adjustments.
3. Total "lagged" vault cash held by those depository institutions currently
subject to reserve requirements. Dates refer to the maintenance periods in which
the vault cash can be used to satisfy reserve requirements. Under contemporaneous reserve requirements, maintenance periods end 30 days after the lagged
computation periods in which the balances are held.
4. All vault cash held during the lagged computation period by "bound"
institutions (i.e., those whose required reserves exceed their vault cash) plus the
amount of vault cash applied during the maintenance period by "nonbound"
institutions (i.e., those whose vault cash exceeds their required reserves) to
1991
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. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
9. Data are prorated monthly averages of biweekly averages.
A6
DomesticNonfinancialStatistics • May 1991
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Large Banks1
Averages of daily figures, in millions of dollars
1990, week ending Monday 2
Maturity and source
1
2
3
4
5
6
7
8
Federal funds purchased, repurchase agreements, and
other selected borrowing in immediately
available
funds
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
foreign official institutions, and U.S. government
agencies
For one day or under continuing contract
For all other maturities
Repurchase agreements on U.S. government and federal
agency securities in immediately available funds
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
MEMO: Federal funds loans and resale agreements in
immediately available funds in maturities of one day
or under continuing contract
9 To commercial banks in the United States
10 To all other specified customers 3
Oct. 29
Nov. 5
Nov. 12
Nov. 19
Nov. 26
Dec. 3
Dec. 10
Dec. 17
75,748
20,036
82,906
19,286
83,216
19,113
87,080
19,428
82,126
21,122
83,431
19,755
88,675
20,403
83,932
19,750
34,674
20,107
38,560
20,656
36,566
21,600
37,728
21,121
34,159
23,295
36,220
20,933
35,472
21,495
34,350
20,976
16,691
23,144
15,620
22,952
15,314
23,366
13,700
21,972
11,585
21,976
12,015
21,258
9,971
20,222
9,542
18,797
30,612
13,302
30,586
13,818
29,738
13,370
31,667
13,665
27,725
17,193
30,998
13,248
29,936
12,912
29,794
12,064
47,006
16,645
49,786
16,663
45,086
15,976
50,258
17,843
46,826
16,466
47,141
17,078
46,871
17,362
44,446
20,409
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
These data also appear in the Board's H.5 (507) release. For address, see inside
front cover.
2. Beginning with the August Bulletin data appearing are the most current
available. To obtain data from May 1, 1989, through April 16, 1990, contact the
Dec. 24
Division of Applications Development and Statistical Services, Financial Statement Reports Section, (202) 452-3349.
3. Brokers and nonbank dealers in securities; other depository institutions;
foreign banks and official institutions; and United States government agencies.
Policy Instruments
1.14
A7
FEDERAL RESERVE B A N K INTEREST RATES
Percent per year
Current and previous levels
Extended credit 2
Adjustment credit
and
Seasonal credit1
Federal Reserve
Bank
On
3/25/91
Effective
date
6
2/1/91
2/1/91
2/1/91
2/1/91
2/1/91
2/4/91
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
6
After 30 days of borrowing 3
First 30 days of borrowing
Previous
rate
On
3/25/91
Effective
date
Previous
rate
On
3/25/91
Effective
date
Previous
rate
6
2/1/91
2/1/91
2/1/91
2/1/91
2/1/91
2/4/91
6 Vi
6.75
3/21/91
3/21/91
3/21/91
3/21/91
3/21/91
3/21/91
7.05
6V1
2/1/91
2/4/91
2/1/91
2/1/91
2/1/91
2/1/91
6V1
2/1/91
2/4/91
2/1/91
2/1/91
2/1/91
2/1/91
6
6 Vi
6.75
3/21/91
3/21/91
3/21/91
3/21/91
3/21/91
3/21/91
Effective date
3/7/91
3/7/91
3/7/91
3/7/91
3/7/91
3/7/91
3/7/91
3/7/91
3/7/91
3/7/91
3/7/91
3/7/91
7.05
Range of rates for adjustment credit in recent years 4
Effective date
In effect Dec. 31, 1977.
1978—Jan.
9
20
May 11
12
July
Aug.
Sept.
Oct.
Nov.
3
10
21
22
16
20
1
3
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
Range (or
level)—
All F.R.
Banks
6
6 - 6 </i
6 V2
F.R.
Bank
of
N.Y.
6
m
6
Vi
6V1-I 7
7
7
i-m
IV*
71/4
73/4
8
8-8V!>
8>/>
8VS-9V5
9
Vi
10
10-101/*!
lOVl
1014-11
11
11-12
12
71/4
73/4
8
8
8
9
9
Vi
Vi
Vi
Vi
10
lO 1 ^
10M>
11
11
12
12
Effective
1981-—May
—May
Nov.
Dec.
-July
1982--July
70
23
Aug. 7
3
16
27
30
Oct. 1?
n
Nov. ??
76
Dec. 14
15
17
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13
13
12
11
11
10
10
11
12
13
llVi
10-10!^
10
9W-10
9Vi
9-9Vl
9
8Vi-9
8Vi-9
10
10
9
9l/i
9
9
9
%Vi
8V1
7\
14
14
13
13
12
11V5-12
76
Dec. 74
Nov.
F.R.
Bank
of
N.Y.
1 IVi I IVi
ll-UVi II
11
11
10^
\m
SVl-9
9
8Vl-9
1. Adjustment credit is available on a short-term basis to help depository
institutions meet temporary needs for funds that cannot be met through reasonable alternative sources. After May 19, 1986, the highest rate established for loans
to depository institutions may be charged on adjustment credit loans of unusual
size that result from a major operating problem at the borrower's facility.
Seasonal credit is available to help smaller depository institutions meet regular,
seasonal needs for funds that cannot be met through special industry lenders and
that arise from a combination of expected patterns of movement in their deposits
and loans. A temporary simplified seasonal program was established on Mar. 8,
1985, and the interest rate was a fixed rate Vi percent above the rate on adjustment
credit. The program was reestablished for 1986 and 1987 but was not renewed for
1988.
2. Extended credit is available to depository institutions, when similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than 30 days, a flexible rate
somewhat above rates on market sources of funds ordinarily will be charged, but
13-14
14
13-14
13
12
9
13
1984-—Apr.
1980—Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
5
8
7
6
4
Range (or
level)—
All F.R.
Banks
Vi
m
m
9
Effective date
1985—May 20
24
1986—Mar.
7
10
Apr. 21
July 11
Aug. 21
22
1987—Sept.
1988—Aug.
Vi
lVl-%
IVi
1-lVl
7
6V1-I
6
5Vl-6
5 Vi
5Vi-6
m
IVi
1
1
6 Vi
6
m
SVi
11
6
6
6
9
6-6
6
Vl
Vi
6
11
1989—Feb. 24
27
1990—Dec. 19
1991—Feb.
9
8V4
8
4
Range (or
level)—
All F.R.
Banks
41
In effect Mar. 25, 1991
6V4-7
7
Vi
6 - 6 Vl
6
Vi
1
7
6
6
6
6
6
6
Vi
in no case will the rate charged be less than the basic discount rate plus 50 basis
points. The flexible rate is reestablished on the first business day of each
two-week reserve maintenance period. At the discretion of the Federal Reserve
Bank, the time period for which the basic discount rate is applied may be
shortened.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual
Statistical
Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the
formula for applying the surcharge was changed from a calendar quarter to a
moving 13-week period. The surcharge was eliminated on Nov. 17, 1981.
A8
DomesticNonfinancialStatistics • May 1991
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits
Type of deposit, and
deposit interval
Net transaction accounts3'
Percent of
deposits
Effective date
3
12
12/18/90
12/18/90
0
12/27/90
0
12/27/90
4
1. Required reserves must be held in the form of deposits with Federal Reserve
Banks or vault cash. Nonmember institutions may maintain reserve balances with
a Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions. For previous reserve requirements, see earlier editions of the Annual
Report or the Federal Reserve Bulletin. Under provisions of the Monetary
Control Act, depository institutions include commercial banks, mutual savings
banks, savings and loan associations, credit unions, agencies and branches of
foreign banks, and Edge corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 20, 1988, the exemption was raised from $3.2
million to $3.4 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net NOW
accounts (NOW accounts less allowable deductions); and (2) net other transaction
accounts. The exemption applies only to accounts that would be subject to a 3
percent reserve requirement.
3. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
Depository institution requirements
after implementation of the
Monetary Control Act
three per month for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts subject to the rules that permit no more
than six preauthorized, automatic, or other transfers per month, of which no more
than three can be checks, are not transaction accounts (such accounts are savings
deposits).
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 each year. Effective Dec. 18,
1990 for institutions reporting quarterly and Dec. 25, 1990 for institutions
reporting weekly, the amount was increased from $40.4 million to $41.1 million.
5. The reserve requirements on nonpersonal time deposits with an original
maturity of less than 1-1/2 years were reduced from 3 percent to 1-1/2 percent on
the maintenance period that began December 13, 1990, and to zero for the
maintenance period that began December 27, 1990, for institutions that report
weekly. The reserve requirement on nonpersonal time deposits with an original
maturity of 1-1/2 years or more has been zero since October 6, 1983.
6. For institutions that report quarterly, the reserves on nonpersonal time
deposits with an original maturity of less than 1-1/2 years were reduced from 3
percent to zero on January 17, 1991.
7. The reserve requirements on Euroccurrency liabilities were reduced from 3
percent to zero in the same manner and on the same dates as were the reserves on
nonpersonal time deposits with an original maturity of less than 1-1/2 years (see
notes 5 and 6).
Policy Instruments
A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1991
1990
Type of transaction
1988
1989
1990
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
U . S . TREASURY SECURITIES
Outright transactions (excluding matched
transactions)
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
4
8,223
587
241,876
2,200
14,284
12,818
231,211
12,730
24,739
7,291
231,386
4,400
287
0
16,159
0
4,264
68
21,912
0
631
0
19,041
0
933
0
19,271
0
6,658
0
25,981
0
0
2,350
16,939
3,000
0
120
19,747
1,000
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
2,176
0
23,854
-24,588
0
327
0
28,848
-25,783
500
425r
0
25,638
-27,424
0
0
0
1,321
-3,577
0
0
0
3,235
-4,550
0
0
0
1,010
0
0
0
0
1,934
0
0
325
0
3,531
-4,315
0
0
0
1,991
0
0
0
0
989
0
0
10
11
1?
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
5,485
800
-17,720
22,515
1,436
490
-25,534
23,250
250'
200'
-21,770
25,410
0
0
-1,234
3,577
0
0
-2,188
4,200
0
0
-1,010
0
0
0
-1,677
0
0
0
-3,258
3,915
0
200
-1,991
0
0
0
-778
0
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,579
175
-5,946
1,797
287
29
-2,231
1,934
0
100'
-2,186
789
0
0
-87
0
0
0
-697
0
0
0
0
0
0
0
-256
0
0
0
127
0
0
100
0
0
0
0
-212
0
18
19
70
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,398
0
-188
275
284
0
-1,086
600
0
0
-1,681
1,226
0
0
0
0
0
0
-350
350
0
0
0
0
0
0
0
0
0
0
-400
400
0
0
0
0
0
0
0
0
18,863
1,562
2,200
16,617
13,337
13,230
25,414'
7,591'
4,400
287
0
0
4,264
68
0
631
0
0
933
0
0
6,983
0
0
0
2,650
3,000
0
120
1,000
1,323,480 1,369,052
1,326,542 1,363,434
95,144
95,787
113,647
110,635
120,036
120,280
127,265
129,722
116,601
114,488
125,844
123,442
130,751
126,141
219,632
202,551
13,106
11,447
26,700
23,764
31,9%
34,932
19,844
19,844
36,457
34,105
45,684
31,022
36,337
38,462
1
?
5
6
7
8
9
All maturities
V Gross purchases
?3 Gross sales
24 Redemptions
Matched transactions
Gross sales
26 Gross purchases
Repurchase
agreements2
?7 Gross purchases
28 Gross sales
1,168,484
1,168,142
152,613
151,497
129,518
132,688
15,872
-10,055
24,886'
2,590
4,121
-2,060
3,390
7,222
6,608
-7,855
0
0
587
0
0
442
0
0
183
0
0
33
0
0
37
0
0
0
0
0
34
0
0
0
0
0
1
0
0
0
57,259
56,471
38,835
40,411
41,836
40,461
4,697
4,137
7,130
5,944
7,394
8,580
5,913
5,913
2,774
2,504
2,091
1,021
4,416
3,571
35 Net change in federal agency obligations
198
-2,018
1,192
527
1,149
-1,186
-34
270
1,070
845
36 Total net change in System Open Market
Account
16,070
-12,073
26,078'
3,117
5,270
-3,247
3,356
7,492
7,678
-7,010
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase
agreements2
33 Gross purchases
34 Gross sales
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not add to
totals because of rounding.
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
A10
DomesticNonfinancialStatistics • May 1991
1.18 FEDERAL RESERVE BANKS
Millions of dollars
Condition and Federal Reserve Note Statements1
End of month
Wednesday
1990
1991
Account
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Feb. 27
Dec. 31
1991
Jan. 31
Feb. 28
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3
11,058
10,018
611
11,058
10,018
634
11,058
10,018
653
11,058
10,018
656
11,058
10,018
661
11,058
10,018
535
11,058
10,018
611
11,058
10,018
653
Loans
4
To depository institutions
5 Other
Acceptances
held under repurchase agreements
6
Federal agency obligations
7
Bought outright
Held under repurchase agreements
8
U.S. Treasury securities
Bought outright
9
Bills
10
Notes
Bonds
11
Total bought outright2
12
Held
under repurchase agreements
13
14 Total U.S. Treasury securities
136
0
0
0
6,342
866
53
0
0
0
6,342
0
102
0
0
0
6,342
1%
700
0
0
0
6,342
181
125
0
0
0
6,342
572
190
0
0
0
6,342
1,341
180
0
0
0
6,342
2,186
506
0
0
0
6,342
1,266
111,664
91,407
31,163
234,234
2,359
236,592
109,529
91,407
31,163
232,099
0
232,099
112,311
91,407
31,163
234,881
2,578
237,459
112,634
91,307
31,263
235,204
6,118
241,322
113,215
91,757
31,263
236,235
3,580
239,815
112,520
91,407
31,163
235,090
17,013
252,103
111,736
91,407
31,163
234,306
14,888
249,194
113,616
91,757
31,263
236,636
14,768
251,404
15 Total loans and securities
243,936
238,493
244,098
248,544
246,856
259,975
257,901
259,517
6,650
875
9,249
881
5,141
882
10,534
886
4,859
884
6,106
872
5,160
875
5,064
884
32,838
6,308
33,842
6,301
33,457
6,234
33,463
4,824
33,499
4,867
32,633
6,376
33,879
6,704
32,611
5,211
312,294
310,477
311,546
319,983
312,702
327,573
326,206
325,016
263,537
264,152
265,190
266,012
265,472
267,657
263,751
265,915
17,926
16,884
225
197
21,122
9,856
234
202
21,578
11,012
210
177
20,975
15,782
235
188
20,072
13,300
301
184
38,658
8,960
369
242
19,902
27,810
271
183
22,109
23,898
329
171
35,232
31,414
32,977
37,180
33,858
48,228
48,165
46,505
5,019
3,195
5,544
3,201
4,661
3,363
7,972
3,438
4,626
3,377
3,540
3,301
4,470
3,588
4,380
3,424
306,982
304,311
306,190
314,601
307,333
322,727
319,974
320,224
2,450
2,423
438
2,451
2,423
1,292
2,471
2,423
462
2,475
2,423
484
2,479
2,423
467
2,423
2,423
0
2,450
2,423
1,359
2,475
2,262
54
33 Total liabilities and capital accounts
312,294
310,477
311,546
319,983
312,702
327,573
326,206
325,016
34 MEMO: Marketable U.S. Treasury securities held in
custody for foreign and international accounts
252,4%
251,193
253,250
250,470
253,419
247,521
255,092
257,639
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies
19 All other'
20 Total assets
LIABILITIES
21 Federal Reserve notes
Deposits
?.? To depository institutions
U.S. Treasury—General account
23
Foreign—Official accounts
24
Other
25
26 Total deposits
77 Deferred credit items
28 Other liabilities and accrued dividends
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding issued to bank
LESS: Held by bank
36
Federal Reserve notes, net
37
Collateral held against notes net:
Gold certificate account
38
Special drawing rights certificate account
39
Other eligible assets
40
41
U.S. Treasury and agency securities
306,722
43,185
263,537
307,418
43,266
264,152
309,167
43,977
265,190
309,963
43,951
266,012
309,954
44,482
265,472
304,829
37,172
267,657
306,681
42,930
263,751
310,176
44,261
265,915
11,058
10,018
0
242,460
11,058
10,018
4,635
238,441
11,058
10,018
117
243,997
11,058
10,018
0
244,936
11,058
10,018
0
244,3%
11,058
10,018
0
246,581
11,058
10,018
0
242,675
11,058
10,018
0
244,839
42 Total collateral
263,537
264,152
265,190
266,012
265,472
267,657
263,751
265,915
1. Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover. Components may not add to totals because of
rounding.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within 90 days.
5. 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
End of month
Wednesday
2
3
7
Within 15 days
16 days to 90 days
16 days to 90 days
9 U.S. Treasury securities—Total
10 Within 15 days'
11
16 days to 90 days
13
14
Over 1 year to 5 years
Over 5 years to 10 years
16 Federal agency obligations—Total
17 Within 15 days'
18
16 days to 90 days
20
21
Over 1 year to 5 years
Over 5 years to 10 years
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Dec. 31
Jan. 30
Feb. 27
5,143
5,141
2
0
136
136
0
0
53
40
13
0
102
91
11
0
700
700
0
0
190
186
4
0
136
136
0
0
125
125
4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
238,717
12,074
55,549
74,541
58,510
13,306
24,736
236,592
12,567
54,302
73,169
58,510
13,306
24,736
232,098
11,922
50,133
73,100
58,901
13,306
24,736
237,459
15,753
54,271
70,492
58,901
13,306
24,736
241,322
14,173
58,638
71,002
59,549
13,284
24,676
235,090
5,516
57,538
75,428
58,749
13,121
24,736
237,000
12,567
54,302
73,169
58,510
13,306
24,736
236,238
9,319
57,895
71,166
59,549
13,634
24,676
6,342
219
884
1,533
2,495
1,022
188
7,207
1,035
864
1,548
2,550
1,022
187
6,342
55
963
1,563
2,550
1,022
188
6,538
281
878
1,563
2,590
1,037
187
6,523
569
575
1,563
2,590
1,037
187
6,342
200
737
1,639
2,555
1,022
188
7,208
1,035
864
1,548
2,550
1,022
188
6,342
304
657
1,608
2,548
1,037
187
1. Holdings under repurchase agreements are classified as maturing within 15
days in accordance with maximum maturity of the agreements.
1991
1990
1991
Type and maturity groupings
NOTE: Components may not sum to totals because of rounding,
A12
DomesticNonfinancialStatistics • May 1991
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1990
Item
1987
Dec.
1988
Dec.
1989
Dec.
July
Total reserves3
?.
3
4
5
Nonborrowed reserves 4
>
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base 6
6 Total reserves7
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves8
Monetary base9
Sept.
Oct.
Nov.
Dec.
Jan/
Feb.
58.59
60.59
60.03
60.53
59.32
59.75
60.08
59.61
59.76
60.53
60.84
61.33
57.82
58.30
57.55
258.18
58.88
60.12
59.55
275.40
59.77
59.79
59.11
285.28
60.20
60.22
58.86
309.73
58.56
58.84
58.46
298.01
58.82
58.95
58.88
301.08
59.46
59.46
59.17
304.47
59.20
59.22
58.76
306.38
59.53
59.56
58.82
307.76
60.20
60.22
58.86
309.73
60.30
60.33
58.67
314.47
61.08
61.11
59.53
318.76
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
7
8
9
10
Aug.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
1
1991
1990
Dec.
Not seasonally adjusted
60.07
62.22
61.67
62.18
59.47
59.21
59.81
59.24
60.02
62.18
62.50
60.29
59.30
59.78
59.03
262.00
60.50
61.75
61.17
279.54
61.40
61.42
60.75
289.45
61.86
61.88
60.52
314.03
58.71
58.99
58.61
299.90
58.29
58.41
58.34
301.46
59.19
59.20
58.90
303.56
58.83
58.85
58.40
305.00
59.79
59.82
59.08
308.71
61.86
61.88
60.52
314.03
61.97
61.99
60.33
315.57
60.04
60.07
58.48
315.32
62.14
63.75
62.81
59.12
60.94
60.73
61.45
61.05
62.05
59.12
50.99
48.55
61.36
61.85
61.09
266.06
1.05
.78
62.03
63.27
62.70
283.00
1.05
1.72
62.54
62.56
61.89
292.55
.92
.27
58.79
58.82
57.46
313.70
1.66
.33
60.19
60.47
60.08
303.39
.86
.76
59.80
59.93
59.86
304.99
.87
.93
60.83
60.83
60.54
307.21
.91
.62
60.64
60.66
60.21
308.85
.85
.41
61.82
61.84
61.10
312.69
.95
.23
58.79
58.82
57.46
313.70
1.66
.33
50.46
50.48
48.82
309.30
2.17
.53
48.30
48.33
46.74
308.51
1.81
.25
N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 1 0
11 Total reserves11
12 Nonborrowed reserves
3
N Nonborrowed reserves plus extended credit
14 Required reserves
12
15 Monetary base
16 Excess reserves13
17 Borrowings from the Federal Reserve
1. Latest monthly and biweekly figures are available from the Board's H.3(502)
statistical release. Historical data and estimates of the impact on required reserves
of changes in reserve requirements are available from the Monetary and Reserves
Projections Section. Division of Monetary Affairs. Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
2. Figures reflect adjustments for discontinuities or "breaks" associated with
regulatory changes in reserve requirements.
3. Seasonally adjusted, break adjusted total reserves equal seasonally adjusted,
break-adjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally
adjusted, break-adjusted total reserves (line 1) less total borrowings of depository
institutions from the Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves, the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9)
plus excess reserves (line 16).
8. To adjust required reserves for discontinuities because of regulatory changes
in reserve requirements, a multiplicative procedure is used to estimate what
required reserves would have been in past periods had current reserve requirements been in effect. Break-adjusted required reserves includes required reserves
against transactions deposits and nonpersonal time and savings deposits (but not
reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves
(line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3)
(for all quarterly reporters on the "Report of Transaction Accounts, Other
Deposits and Vault Cash" and for all those weekly reporters whose vault cash
exceeds their required reserves) the break-adjusted difference between current
vault cash and the amount applied to satisfy current reserve requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with changes in reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to
satisfy reserve requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted,
consists of (1) total reserves (line 11), plus (2) required clearing balances and
adjustments to compensate for float at Federal Reserve Banks, plus (3) the
currency component of the money stock, plus (4) (for all quarterly reporters on
the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current
reserve requirements. After the introduction of CRR, currency and vault cash
figures are 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
M O N E Y STOCK, LIQUID ASSETS, A N D DEBT MEASURES1
Billions of dollars, averages of daily figures
1991
1990
Item"1
1987
Dec.
1988
Dec.
1989
Dec.
1990
Dec.
Nov.
Dec.
Jan.'
Feb.
825.4
3,330.5
4,113.0'
4,964.3'
10,450.0'
826.7
3,333.4
4,124.4
4,973.8
10,490.4
836.4
3,357.3
4,160.9
n.a.
n.a.
251.6
8.4
272.9
293.9
255.1
8.2
276.2
296.8
2,506.7
791.0
2,521.0
803.6
Seasonally adjusted
1
2
3
4
5
Ml
M2
M3
L
Debt
6
7
8
9
Ml components
Currency
Travelers checks 4
Demand deposits5
Other checkable deposits6
Nontransactions
10 In M2
11 In M3 only 8
components
749.7
2,910.1
3,677.4
4,337.0
8,345.1
786.4
3,069.9
3,919.1
4,676.0
9,107.6
793.6
3,223.1
4,055.2
4,889.9
9,790.4
196.8
7.0
286.5
259.3
212.0
7.5
286.3
280.7
222.2
7.4
278.7
285.2
2,160.4
767.3
2,283.5
849.3
2,429.5
832.1
825.4
3,330.5
4,113.0r
4,964.3'
10,450.0r
823.3
3,325.8
4,110.7r
4,960.7'
10,405.9'
246.4
8.4
276.9
293.7
245.0
8.4
277.2
292.8
246.4
8.4
276.9
293.7
2,505.1
782.5'
2,502.5
784.9'
2,505.1
782.5'
12
13
14
15
Time and Savings accounts
Commercial banks
Savings deposits
Money market deposit accounts
Small time deposits 9 .
Large time deposits 10, 11
178.3
356.4
388.0
326.6
192.1
350.2
447.5
368.0
187.7
353.0
531.4
401.9
199.4
378.4
598.0
386.0
198.2
377.4
589.4'
387.4
199.4
378.4
598.0
386.0
201.4
377.6
601.6
393.7
203.3
383.0
605.7
400.2
16
17
18
19
Thrift institutions
Savings deposits
Money market deposit accounts
Small time deposits 9
Large time deposits 10
233.7
168.5
529.7
162.6
232.3
151.2
584.3
174.3
216.4
133.1
614.5
161.6
211.4
127.6
566.9
121.0
212.9
129.4
573.4
125.1
211.4
127.6
566.9
121.0
210.6
127.4
562.1
117.9
212.2
128.3
556.8
114.8
Money market mutual funds
20 General purpose and broker-dealer
21 Institution-only
221.7
88.9
241.1
86.9
313.6
101.9
347.7
125.7
343.0
120.5
347.7
125.7
356.3
130.1
360.5
139.3
1,957.9
6,387.2
2,114.2
6,993.4
2,268.1
7,522.3
2,532.8r
7,917.2'"
2,505.4'
7,900.5'
2,532.8'
7,917.2'
2,555.9
7,934.5
n.a.
n.a.
844.3
3,344.5
4,125.r
4,982.8'
10,437.4'
833.2
3,343.7
4,130.6
4,989.9
10,480.2
823.4
3,348.1
4,149.0
n.a.
n.a.
249.8
7.8
277.7
297.9
252.6
7.8
268.1
294.8
Debt components
22 Federal debt
23 Nonfederal debt
Not seasonally adjusted
24
25
26
27
28
Ml
M2
M3
L
Debt
29
30
31
32
Ml components
Currency
Travelers checks 4
Demand deposits5
Other checkable deposits6
Nontransactions
33 In M2
34 In M3 only
components
766.2
2,923.0
3,690.3
4,352.8
8,329.1
804.2
3,083.3
3,931.5
4,691.8
9,093.2
811.9
3,236.6
4,067.0
4,907.4
9,775.9
199.3
6.5
298.6
261.8
214.8
6.9
298.9
283.5
225.3
6.9
291.5
288.2
2,156.8
767.3
2,279.1
848.2
844.3
3,344.5
4,125.f
4,982.8'
10,437.4'
826.1
3,329.5
4,117.7'
4,965.4'
10,376.7'
249.6
7.8
289.9
296.9
245.7
8.0
280.5
291.9
249.6
7.8
289.9
296.9
2,424.7
830.4
2,500.3r
780.6'
2,503.3
788.3'
2,500.3r
780.6'
2,510.5
786.9
2,524.7
801.0
35
36
37
38
Time and Savings accounts
Commercial banks
Savings deposits
Money market deposit accounts
Small time deposits9.
Large time deposits10, 11
176.8
359.0
387.2
325.8
190.6
353.2
446.0
366.8
186.4
356.5
529.2
400.4
197.7
381.6
596.0
386. r
197.9
379.7
588.4
389.9
197.7
381.6
596.0
386.1'
199.9
380.5
602.0
392.0
201.6
384.5
606.3
398.7
39
40
41
42
Thrift institutions
Savings deposits
Money market deposit accounts
Small time deposits9.
Large time deposits 10
231.4
168.6
529.5
163.3
229.9
151.6
583.8
175.2
214.2
133.7
613.8
162.6
209.6
128.7
565.0
121.0
212.6
130.1
572.5
125.9
209.6
128.7
565.0
121.0
209.0
128.4
562.5
117.4
210.5
128.8
557.4
114.4
Money market mutual funds
43 General purpose and broker-dealer
44 Institution-only
221.1
89.6
240.7
87.6
313.5
102.8
347.8
127.0
344.5
121.2
347.8
127.0
356.6
134.8
364.7
144.0
Repurchase agreements and Eurodollars
45 Overnight
46 Term
83.2
197.1
83.4
227.7
77.3
179.8
73.9
160.0'
77.7
165.2'
73.9
160.0'
71.5
158.0
71.1
158.4
1,955.6
6,373.5
2,111.8
6,981.4
2,265.9
7,509.9
2,532.1
7,905.4'
2,498.8
7,877.9'
2,532.1
7,905.4'
2,557.8
7,922.4
Debt components
47 Federal debt
48 Nonfederal debt
For notes see following page.
n.a.
n.a.
A14
DomesticNonfinancialStatistics • May 1991
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
release. Historical data are available from the Money and Reserves Projection
Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions less cash items in
the process of collection and Federal Reserve float; and (4), other checkable
deposits (OCD) 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.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all depository institutions and overnight Eurodollars issued to U.S.
residents by foreign branches of U.S. banks worldwide, money market deposit
accounts (MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both
taxable and tax-exempt general purpose and broker-dealer money market mutual
funds. Excludes individual retirement accounts (IRA) and Keogh balances at
depository institutions and money market funds. Also excludes all balances held
by U.S. commercial banks, money market funds (general purpose and brokerdealer), foreign governments and commercial banks, and the U.S. government.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by all depository institutions, term Eurodollars held by U.S. residents at foreign branches of U.S. banks worldwide and at all
banking offices in the United Kingdom and Canada, and balances in both taxable
and tax-exempt, institution-only money market mutual funds. Excludes amounts
held by depository institutions, the U.S. government, money market funds, and
foreign banks and official institutions. Also subtracted is the estimated amount of
overnight RPs and Eurodollars held by institution-only money market mutual
funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Debt data are based on monthly
averages.
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those due to depository institutions, the U.S. government, and foreign banks
and official institutions, less cash items in the process of collection and Federal
Reserve float.
6. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions.
7. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker-dealer), MMDAs, and savings and small
time deposits.
8. Sum of large time deposits, term RPs, term Eurodollars of U.S. residents,
and money market fund balances (institution-only), less a consolidation adjustment that represents the estimated amount of overnight RPs and Eurodollars held
by institution-only money market funds.
9. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
Monetary and Credit Aggregates
1.22
A15
B A N K DEBITS A N D DEPOSIT TURNOVER1
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1990'
Bank group, or type of customer
1988'
1989'
1990
July
Sept.
Oct.
Nov.
Seasonally adjusted
DEBITS TO
Demand deposits
1 All insured banks
2
Major New York City banks
Other banks
3
4 ATS-NOW accounts4
5 Savings deposits 3
Aug.
219,795.7
115,475.6
104,320.2
2,478.1
537.0
256,150.4
129,319.9
126,830.5
2,910.5
547.5
278,202.3
131,740.9
146,461.4
3,344.7
558.2
274,559.5
129,034.4
145,525.1
3,417.0
583.4
295,570.0
144,314.2
151,255.8
3,549.5
599.8
267,680.2
126,088.7
141,591.5
3,110.7
523.6
295,490.0
136,082.4
159,407.6
3,449.3
573.7
294,468.6
140,531.5
153,937.1
3,479.2
565.8
270,911.4
129,636.7
141,274.7
3,310.2
519.9
622.9
2,897.2
333.3
13.2
2.9
735.1
3,421.5
408.3
15.2
3.0
801.4
3,802.2
468.8
16.4
2.9
794.8
3,715.5
468.4
16.8
3.0
851.9
4,119.5
484.9
17.4
3.1
764.8
3,717.9
447.9
15.1
2.7
865.9
4,280.5
515.1
16.8
2.9
857.1
4,320.4
494.9
16.8
2.9
789.7
3,926.2
455.6
15.9
2.6
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts4
Savings deposits
Not seasonally adjusted
DEBITS TO
3
Demand deposits
11 All insured banks
12 Major New York City banks
13 Other banks
14 ATS-NOW accounts4
15 MMDA
16 Savings deposits5
219,790.4
115,460.7
104,329.7
2,477.3
2,342.7
536.3
256,133.2
129,400.1
126,733.0
2,910.7
2,677.1
546.9
277,719.5
131,784.7
145,934.8
3,339.2
2,928.1
557.1
277,167.8
130,100.1
147,067.7
3,353.0
3,042.6
596.0
302,515.9
147,040.1
155,475.8
3,570.5
3,189.2
599.6
257,936.7
121,343.4
136,593.3
3,131.6
2,775.9
513.6
298,947.2
142,664.0
156,283.2
3,462.0
3,095.5
616.3
277,536.6
133,220.6
144,316.0
3,259.5
2,805.0
505.1
279,499.3
133,491.9
146,007.4
3,394.4
2,990.3
520.9
622.8
2,896.7
333.2
13.2
6.6
2.9
735.4
3,426.2
408.0
15.2
7.9
2.9
800.6
3,809.9
467.3
16.4
8.0
2.9
794.7
3,777.1
467.9
16.7
8.3
3.0
887.4
4,395.6
505.7
17.7
8.6
3.1
744.4
3,607.3
436.6
15.4
7.5
2.6
870.9
4,376.5
503.1
17.1
8.3
3.1
800.0
4,067.4
459.3
15.8
7.4
2.6
777.1
3,758.7
450.4
16.0
7.9
2.7
DEPOSIT TURNOVER
17
18
19
20
21
22
Demand deposits3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts4
MMDA®
Savings deposits 5
1. Historical tables containing revised data for earlier periods may be obtained
from the Monetary and Reserves Projections Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data are
available beginning December 1978.
5. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
6. Money market deposit accounts.
A16
DomesticNonfinancialStatistics • May 1991
1.23 LOANS AND SECURITIES
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1990
1991
Category
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Seasonally adjusted
1 Total loans and securities2
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
5 Commercial and industrial . . . . .
6
Bankers acceptances held 3 ...
7
Other commercial and
industrial
8
U.S. addressees4
9
Non-U.S. addressees4
10 Real estate
11
Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15 State and political
subdivisions
16 Foreign banks
17 Foreign official institutions
18 Lease financing receivables
19 All other loans
2,633.2
2,648.1
2,655.4
2,670.1
2,683.0
2,704.9
2,708.0
2,713.6
2,716.6
2,723.6
2,721.2'
2,735.1
420.3
180.4
2,032.5
643.5
7.5
426.4
180.2
2,041.5
645.9
7.6
430.3
178.2
2,046.9
644.3
7.6
438.4
177.5
2,054.2
645.3
7.8
442.8
177.3
2,062.9
644.4
7.6
445.7
178.8
2,080.4
645.1
7.4
450.1
178.8
2,079.0
644.7
7.5
453.1
177.8
2,082.7
643.7
7.3
454.0
175.9
2,086.7
646.5
7.4
454.2
175.6
2,093.8
648.1
7.5
454.1'
177.7'
2,089.4'
644.3
7.7
458.0
177.6
2,099.5
643.9
6.8
636.0
631.0
4.9
782.7
379.4
37.0
638.3
634.0
4.3
790.8
377.8
36.8
636.7
632.2
4.4
798.9
378.4
35.5
637.4
633.2
4.3
805.9
377.6
35.0
636.7
632.5
4.3
814.5
376.4
38.7
637.7
633.4
4.3
818.0
378.2
44.6
637.1
632.6
4.5
822.5
378.6
41.3
636.4
631.7
4.7
827.7
379.7
40.5
639.1
634.0
5.1
832.0
378.7
39.6
640.5
635.3
5.2'
836.5
378.9
40.6
636.6'
631.1
5.5
837.3'
375.9'
43.2
637.1
631.5
5.5
842.6
377.7
43.2
33.7
30.8
34.0
30.8
34.1
31.0
34.4
31.1
34.7
31.3
35.0
31.5
35.2'
31.8
34.8r
32.2
34.6'
32.5
34.7'
33.0
34.2'
33.6
35.3
33.7
38.6
8.3
3.2
32.4
43.0
38.2
8.6
3.3
32.4
42.8
37.9
8.7
3.3
32.6
42.3
37.3
7.4
3.2
32.4
44.5
36.4
7.0
3.2
32.6
43.6
35.8
7.9
3.2
32.7
48.2
35.2
8.1
3.3
32.8
45.5'
35. 1'
9.0
3.2
33.3
43.6'
34.8r
8.2
3.2
32.9
43.6r
34.2
7.4
3.2
32.7
44.6'
33.5
6.6
3.0
32.4
45.5'
33.4
6.9
3.1
32.8
46.9
Not seasonally adjusted
20 Total loans and securities2
2,630.0
2,647.7
2,654.5
2,670.8
2,677.5
2,700.1
2,707.0
2,715.5
2,720.1
2,730.5
2,721.0
2,737.3
21 U.S. government securities
22 Other securities
23 Total loans and leases
24
Commercial and industrial . . . . .
25
Bankers acceptances held 3 ...
26
Other commercial and
industrial
27
U.S. addressees
28
Non-U.S. addressees4
29
Real estate
30
Individual
31
Security
32
Nonbank financial
institutions
33
Agricultural
34
State and political
subdivisions
35
Foreign banks
36
Foreign official institutions
37
Lease financing receivables
38
All other loans
423.8
179.7
2,026.4
645.8
7.5
427.5
179.5
2,040.7
650.6
7.4
430.3
178.0
2,046.2
648.3
7.6
437.1
177.5
2,056.3
647.7
8.0
439.9
176.4
2,061.1
644.6
7.3
444.0
179.1
2,077.1
643.5
7.2
448.2
179.0
2,079.8
640.9
7.5
450.8
178.0
2,086.7
641.2
7.4
454.1
176.6
2,089.3
644.5
7.6
451.5
176.3
2,102.7
648.0
7.7
455.8
177.9
2,087.3'
641.1
7.6
463.9
177.3
2,096.1
643.0
7.0
638.4
633.6
4.7
779.4
376.6
38.1
643.2
638.6
4.6
788.4
375.1
38.3
640.8
636.3
4.5
798.0
376.6
34.9
639.7
635.5
4.3
806.0
375.6
37.1
637.3
632.9
4.4
814.9
374.1
38.6
636.3
631.8
4.5
819.9
377.4
43.9
633.4
628.8
4.6
824.2
380.4
40.3
633.8
629.1
4.7
830.3
380.6
39.5
636.9
631.9
5.0
834.0
379.8
38.5
640.3
635.1
5.2
837.9
383.8
40.0
633.4'
628.2
5.3
837.1
380.1'
41.0
636.1
630.6
5.5
839.5
377.1
44.8
33.0
29.5
33.7
29.8
33.8
30.6
34.5
31.4
34.6
32.1
35.0
32.5
34.9'
32.9
34.7'
33.1
ss.tr
32.9
36.1'
32.9
34.7'
32.9
34.9
32.7
38.6
7.9
3.2
32.4
42.0
38.2
8.3
3.3
32.4
42.5
37.8
8.6
3.3
32.5
41.6
37.2
7.5
3.2
32.2
43.9
36.2
7.1
3.2
32.4
43.3
35.7
8.0
3.2
32.6
45.4
35.2
8.2
3.3
32.8
46.8'
35.1'
9.3
3.2
33.3
46.3'
34.7'
8.4
3.2
33.1
45.3'
34.0
7.6
3.2
32.8
46.5'
34.1
6.6
3.0
32.8
43.7'
33.5
6.8
3.1
32.9
47.7
1. Data have been revised to reflect new benchmark and seasonal adjustments.
Historical data may be obtained from the Division of Monetary Affairs, Banking
and Money Market Statistics section, Board of Governors of the Federal Reserve
System, Washington, D.C., 20551. These data also appear in the Board's G.7
(407) release. For address, see inside front cover.
2. Excludes loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
Commercial Banking Institutions
1.24
A17
MAJOR N O N D E P O S I T F U N D S O F C O M M E R C I A L B A N K S 1
Monthly averages, billions of dollars
1990
Source
Seasonally adjusted
1 Total nondeposit funds2
—
2 Net balances due to related foreign offices3 —
3 Borrowings from other than commercial banks
in United States4
4
Domestically chartered banks
5
Foreign-related banks
Not seasonally adjusted
—
6 Total nondeposit funds2
7 Net balances due to related foreign offices . . .
8
Domestically chartered banks
Foreign-related banks
9
10 Borrowings from other than commercial banks
in United States4
11
Domestically chartered banks
12
Federal funds and security RP
borrowings
13
Other6
.
14 Foreign-related banks6
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct/
Nov.
Dec.
Jan.'
Feb.
270.9
19.0
268.9
18.7
269.0
25.8
272.3
17.2
281.1
19.0
283.8'
19.0
283.0'
21.5
291.6
29.9
292. 1'
30.1
287.4'
34.5'
276.8
33.4
265.1
24.6
251.8
197.2
54.6
250.3
193.7
56.6
243.2
186.6
56.5
255.1
196.8
58.3
262.0
201.6
60.4
264.8
202.2
62.6
261.4'
198.8
62.7'
261.8
196.9
64.9
262. r
195.1
67.0'
252.9'
187.2
65.7'
243.4
182.4
61.0
240.5
177.6
62.9
276.5
18.3
-11.5
29.8
269.7
16.7
-10.6
27.3
277.3
28.5
-1.3
29.8
275.1
17.4
-6.1
23.5
277.2
16.6r
-5.8
22.4
282.5
18.5
-3.4
21.9
278.6'
21.5
-4.2
25.7
288.5
29.6
30.6
293.3'
30.8
.6
30.2
281.9'
37.1
-4.2
41.3
272.2
33.1
-15.3
48.4
268.1
24.5
-15.2
39.8
258.2
202.3
253.0
194.8
248.8
191.6
257.7
197.7
260.6
199.1
264.0
201.7
257.0'
195.6
259.0
195.0
262.5'
197.6
244.8'
182.9
239.1
177.9
243.6
179.8
197.8
4.5
55.9
191.0
3.7
58.2
188.3
3.4
57.2
194.6
3.2
60.0
196.2
2.9
61.5
198.1
3.6
62.3
191.6
4.0
61.5r
191.7
3.2
64.0
194.8
2.9
64.9'
180.1
2.8
61.9'
174.7
3.2
61.2
177.1
2.8
63.7
459.0
458.8
456.2
453.9
454.4
454.0
451.5
451.0
451.9
450.5
449.2
450.1
443.6
445.4
438.0
440.4
435.2
437.8
431.8
431.8
440.9
439.2
450.3
448.9
19.8
16.7
21.3
20.0
19.2
25.2
20.6
20.9
15.0
15.2
32.7
23.5
26.0
31.0
22.3
20.9
25.2
19.2
24.4
23.0
25.8
29.4
33.4
39.3
-1.0
MEMO
Gross large time deposits
Seasonally adjusted
Not seasonally adjusted
U.S. Treasury demand balances at commercial
banks8
17 Seasonally adjusted
18 Not seasonally adjusted
15
16
1. Data have been revised to reflect new benchmark and seasonal adjustments.
Historical data may be obtained from the Division of Monetary Affairs, Banking
and Money Market Statistics section, Board of Governors of the Federal Reserve
System, Washington, D.C., 20551. Commercial banks are those in the 50 states
and the District of Columbia with national or state charters plus agencies and
branches of foreign banks, New York investment companies majority owned by
foreign banks, and Edge Act corporations owned by domestically chartered and
foreign banks.
These data also appear in the Board's G.10 (411) release. For address, see
inside front cover.
2. Includes federal funds, RPs, and other borrowing from nonbanks and net
balances due to related foreign offices.
3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and
U.S. branches and agencies of foreign banks with related foreign offices plus net
positions with own IBFs.
4. Other borrowings are borrowings through any instrument, such as a
promissory note or due bill, given for the purpose of borrowing money for the
banking business. This includes borrowings from Federal Reserve Banks and
from foreign banks, term federal funds, loan RPs, and sales of participations in
pooled loans.
5. Based on daily average data reported weekly by approximately 120 large
banks and quarterly or annual data reported by other banks.
6. Figures are partly daily averages and partly averages of Wednesday data.
7. Time deposits in denominations of $100,000 or more. Estimated averages of
daily data.
8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at commercial banks. Averages of daily data.
A18
DomesticNonfinancialStatistics • May 1991
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series1
Billions of dollars
1990
1991
Account
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
2,839.0
583.0
413.1
170.0
23.9
2,232.1
190.5
2,041.5
650.4
790.2
376.7
224.2
2,847.1
587.2
417.8
169.3
21.4
2,238.5
192.8
2,045.7
645.8
801.7
376.6
221.7
2,871.6
589.8
422.2
167.6
23.7
2,258.1
202.2
2,055.9
646.9
807.9
376.8
224.3
2,878.8
588.3
421.7
166.6
27.7
2,262.8
204.8
2,057.9
641.5
816.0
374.8
225.6
2,896.8
597.2
429.1
168.0
29.3
2,270.4
200.1
2,070.3
639.7
820.1
379.4
231.1
2,887.1
601.7
434.5
167.2
21.4
2,264.0
191.0
2,073.0
639.7
825.0
381.2
227.1
2,931.3
604.9
438.0
166.8
27.4
2,299.0
207.9
2,091.2
643.4
831.5
380.8
235.5
2,925.1
603.3
437.6
165.7
25.0
2,296.9
207.0
2,089.8
644.4
833.7
380.5
231.2
2,936.9
605.6
439.6
166.0
22.0
2,309.3
204.0
2,105.3
650.8
838.3
384.7
231.5
2,908.7
612.8
447.6
165.2
24.1
2,271.8
193.3
2,078.6
637.2
836.9
378.6
225.9
2,924.9
614.0
449.5
164.5
26.9
2,283.9
185.0
2,099.0
645.1
840.1
376.4
237.4
210.6
31.5
28.5
80.1
237.7
27.6
29.9
100.7
219.6
31.8
28.9
86.2
210.7
29.8
28.8
79.6
207.7
30.0
30.3
77.5
213.7
33.6
29.3
81.1
220.8
29.7
29.4
85.4
216.7
33.0
32.8
78.4
217.9
23.4
32.0
86.0
199.2
16.5
30.4
74.7
204.5
18.1
29.8
79.9
26.3
44.2
32.0
47.5
27.7
45.0
27.3
45.2
27.3
42.5
27.0
42.8
28.5
47.8
28.4
44.2
29.6
46.8
28.1
49.6
27.7
49.0
A L L COMMERCIAL BANKING
INSTITUTIONS 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other
Total cash assets
Reserves with Federal Reserve Banks.
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets
19
Other assets
204.8
197.0
207.5
205.3
220.8
226.6
230.1
226.6
245.1
249.9
259.6
20
Total assets/total liabilities and capital
3,254.4
3,281.8
3,298.6
3,294.8
3,325.3
3,327.4
3,382.2
3,368.5
3,399.9
3,357.8
3,388.9
21
22
23
24
25
26
27
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
2,258.3
600.9
548.8
1,108.6
563.9
216.0
216.2
2,295.3
618.1
554.5
1,122.7
546.1
223.3
217.1
2,282.4
598.6
556.4
1,127.5
572.6
223.9
219.7
2,290.9
590.1
561.3
1,139.5
562.1
220.5
221.2
2,296.5
589.1
565.6
1,141.8
579.9
226.2
222.8
2,300.1
595.3
563.5
1,141.3
570.9
233.1
223.4
2,332.0
612.1
570.5
1,149.4
591.0
236.0
223.3
2,319.9
598.1
573.1
1,148.8
570.6
255.3
222.7
2,363.4
637.1
573.3
1,152.9
548.7
264.4
223.5
2,334.6
587.9
573.9
1,172.8
529.8
268.8
224.6
2,365.0
594.1
583.5
1,187.3
515.4
282.3
226.2
428.2
430.9
436.1
440.4
446.3
445.1
454.2
451.9
451.1
459.4
463.7
178.7
177.6
177.4
175.6
180.2
178.0
178.1
176.4
176.5
177.5
177.2
2,584.1
551.9
398.0
154.0
23.9
2,008.3
148.9
1,859.3
524.0
753.9
376.7
204.7
2,589.5
558.6
404.8
153.7
21.4
2,009.5
144.2
1,865.4
521.4
764.5
376.6
202.9
2,608.3
559.2
407.7
151.5
23.7
2,025.5
153.3
1,872.2
520.1
769.7
376.8
205.5
2,614.4
557.3
406.5
150.8
27.7
2,029.4
153.7
1,875.7
517.3
776.7
374.8
206.9
2,631.8
566.1
414.1
152.0
29.3
2,036.4
153.7
1,882.6
514.0
779.5
379.4
209.8
2,620.5
569.0
417.9
151.2
21.4
2,030.0
146.0
1,884.0
513.2
784.0
381.2
205.7
2,658.4
571.5
420.9
150.6
27.4
2,059.5
164.0
1,895.5
515.4
789.8
380.8
209.5
2,645.1
569.8
420.8
149.1
25.0
2,050.3
157.4
1,892.9
513.4
791.6
380.5
207.4
2,654.2
570.5
421.7
148.8
22.0
2,061.7
160.0
1,901.7
512.7
796.4
384.7
207.9
2,628.0
575.3
426.5
148.7
24.1
2,028.6
151.7
1,876.9
504.2
794.0
378.6
200.2
2,642.3
577.4
429.3
148.2
26.9
2,038.0
150.9
1,887.0
508.4
797.1
376.4
205.1
186.3
29.8
28.5
78.7
209.7
26.6
29.9
99.3
193.3
30.9
28.9
84.2
184.7
28.9
28.8
78.1
181.7
28.0
30.3
75.9
187.0
32.1
29.2
79.0
189.3
28.5
29.4
83.6
187.7
31.5
32.8
76.4
188.3
23.0
32.0
83.9
166.6
15.3
30.3
72.9
172.7
17.0
29.8
78.2
24.6
24.7
30.0
23.9
25.9
23.4
25.6
23.4
25.0
22.5
25.1
21.5
26.6
21.2
26.2
20.9
27.6
21.8
26.2
22.0
25.8
21.9
MEMO
28
29
U.S. government securities (including
trading account)
Other securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 3
30
31
32
33
34
35
36
37
38
39
40
41
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other
42
43
44
45
46
Total cash assets
Reserves with Federal Reserve Banks.
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets
47
48
Other assets
133.5
136.0
141.2
139.1
145.6
152.3
153.6
155.0
167.8
166.9
171.3
49
Total assets/liabilities and capital
2,903.9
2,935.2
2,942.9
2,938.2
2,959.1
2,959.7
3,001.3
2,987.8
3,010.3
2,961.4
2,986.3
50
51
52
53
54
55
56
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
2,175.7
591.3
545.8
1,038.6
406.4
109.5
212.4
2,213.0
608.3
551.6
1,053.2
393.6
115.1
213.4
2,200.0
588.5
553.4
1,058.1
410.3
116.5
216.2
2,209.2
580.2
558.3
1,070.7
396.0
115.3
217.7
2,214.9
578.8
562.6
1,073.5
404.3
120.7
219.2
2,220.1
584.4
560.4
1,075.3
395.8
124.1
219.7
2,253.8
601.5
567.4
1,085.0
400.4
127.5
219.6
2,243.3
587.7
569.8
1,085.8
394.1
131.5
219.0
2,283.5
626.1
570.0
1,087.4
375.6
131.4
219.8
2,236.2
577.4
570.6
1,088.1
380.1
124.2
220.9
2,255.2
583.8
580.2
1,091.2
371.8
136.8
222.6
57
58
Real estate loans, revolving
Real estate loans, other
53.2
700.7
54.1
710.3
55.0
714.7
56.3
720.4
57.7
721.7
58.6
725.4
60.6
729.2
61.1
730.5
61.7
734.7
62.9
731.1
63.3
733.8
MEMO
1. Back data are available from the Banking and Monetary Statistics section,
Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
These data also appear in the Board's weekly H.8 (510) release.
Figures are partly estimated. They include all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries. Loan and securities data
for domestically chartered commercial banks are estimates for the last Wednesday of the month based on a sample of weekly reporting banks and quarter-end
condition report data. Data for other banking institutions are estimates made for
the last Wednesday of the month based on a weekly reporting sample of
foreign-related institutions and guarter-end condition reports.
2. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
Weekly Reporting Commercial Banks
A19
1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
1991
Account
Jan. 16
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Feb. 27
Jan. 2
Jan. 9
133,136
177,443
10,057
167,386
80,976
96,234
180,405
12,251
168,154
80,824
107,866
180,439
13,314
167,124
79,871
115,389
182,704
13,122
169,581
81,188
93,599
182,598
11,770
170,828
81,572
95,300
185,685
13,568
172,116
81,960
95,552
187,472
14,832
172,640
81,965
112,066
188,605
16,397
172,208
82,117
98,762
186,968
14,239
172,730
82,577
18,775
37,783
29,851
60,873
1,136
59,736
29,976
3,688
26,288
29,760
10,464
18,646
38,466
30,218
60,444
904
59,539
29,919
3,706
26,214
29,620
10,920
18,709
38,832
29,712
60,704
1,030
59,674
29,843
3,735
26,108
29,832
12,278
18,746
39,217
30,430
60,387
916
59,471
29,785
3,756
26,029
29,686
11,581
18,468
39,586
31,202
60,434
925
59,509
29,688
3,746
25,943
29,821
11,326
17,865
40,850
31,441
60,432
1,216
59,216
29,372
3,756
25,616
29,844
12,293
17,905
40,963
31,807
60,222
1,101
59,121
29,299
3,740
25,559
29,823
11,614
18,617
39,703
31,772
60,293
1,097
59,196
29,223
3,716
25,507
29,973
11,188
18,331
39,773
32,048
60,544
1,347
59,197
29,090
3,702
25,388
30,108
11,278
88,472
60,865
22,786
4,821
1,067,960
322,406
1,446
320,960
319,294
1,666
78,990
55,143
19,813
4,033
1,057,597
319,169
1,497
317,673
316,341
1,332
71,850
46,441
22,132
3,276
1,060,475
319,237
1,482
317,756
316,291
1,465
74,920
52,451
19,869
2,600
1,060,078
318,765
1,495
317,269
315,775
1,494
75,526
53,339
19,062
3,126
1,053,061
318,154
1,473
316,681
315,358
1,323
87,864
58,080
25,385
4,399
1,054,525
320,033
1,607
318,426
317,040
1,386
74,645
50,272
20,742
3,631
1,055,749
319,623
1,579
318,045
316,522
1,522
80,606
53,076
24,511
3,018
1,059,192
320,246
1,674
318,571
317,156
1,416
73,718
47,963
21,870
3,884
1,057,032
320,763
1,523
319,240
317,842
1,399
399,682
35,330
364,352
200,762
51,092
22,861
4,222
24,009
13,019
6,259
21,078
1,452
25,136
27,075
4,307
37,446
1,026,206
164,187
400,427
35,409
365,018
198,590
48,552
21,674
3,656
23,222
13,222
6,021
21,242
1,382
21,993
26,998
4,305
38,135
1,015,157
159,749
400,950
35,576
365,374
197,875
49,634
24,132
2,662
22,840
14,435
6,008
21,295
1,146
22,613
27,281
4,314
38,493
1,017,668
161,426
400,662
35,604
365,058
197,379
51,338
24,816
4,388
22,134
14,169
5,924
21,193
1,186
22,215
27,248
4,251
38,750
1,017,077
157,236
400,488
35,657
364,831
196,404
47,153
21,542
3,243
22,368
13,469
5,858
21,092
1,170
21,938
27,336
4,249
38,849
1,009,964
162,560
400,555
35,676
364,879
195,577
48,093
22,032
3,333
22,728
13,754
5,798
20,904
1,152
21,347
27,312
4,207
39,221
1,011,096
166,265
400,538
35,764
364,774
195,150
48,931
23,089
2,969
22,873
14,723
5,787
20,856
1,205
21,552
27,383
4,215
38,054
1,013,481
165,577
401,089
35,598
365,491
195,317
49,171
23,024
3,423
22,724
16,197
5,738
20,816
1,233
22,019
27,367
4,228
37,997
1,016,967
162,883
400,812
35,559
365,253
194,931
48,763
23,226
3,017
22,520
15,143
5,731
20,802
1,316
21,429
27,342
4,218
38,006
1,014,808
164,024
1,660,781
1,601,899
1,612,230
1,619,293
1,596,007
1,618,936
1,608,562
1,632,608
1,610,103
ASSETS
1 Cash and balances due from depository institutions
? U.S. Treasury and government securities
Trading account
4
Investment account
5
Mortgage-backed securities'
6
All other maturing in
7
One year or less
8
Over one through five years
9
Over five years
10 Other securities
Trading account
11
1? Investment account
State and political subdivisions, by maturity
N
14
One year or less
IS
Over one year
16
Other bonds, corporate stocks, and securities
17 Other trading account assets
18 Federal funds sold2
19 To commercial banks in the U.S
70 To nonbank brokers and dealers
71
To others3
?? Other loans and leases, gross
73 Commercial and industrial
74
Bankers' acceptances and commercial paper
75
All other
76
U.S. addressees
Non-U.S. addressees
27
78
79
30
31
3?
33
34
35
36
37
38
39
40
41
4?
43
44
45
Real estate loans
Revolving, home equity
All other
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions . . .
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other loans
Lease financing receivables
LESS: Unearned income —
Loan and lease reserve3
Other loans and leases, net
Other assets
46 Total assets
Footnotes appear on the following page.
A20
DomesticNonfinancialStatistics • May 1991
1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1991
Account
Jan. 2
Jan. 9
Jan. 16
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Feb. 27
47 Deposits
48
Demand deposits
49
Individuals, partnerships, and corporations
50
Other holders
51
States and political subdivisions
52
U.S. government
53
Depository institutions in the United States
54
Banks in foreign countries
55
Foreign governments and official institutions
56
Certified and officers' checks
57 Transaction balances other than demand deposits
58
Nontransaction balances
59
Individuals, partnerships, and corporations
60
Other holders
61
States and political subdivisions
62
U.S. government
63
Depository institutions in the United States
64
Foreign governments, official institutions, and banks
65 Liabilities for borrowed money 5
66
Borrowings from Federal Reserve Banks
67
Treasury tax and loan notes
68
Other liabilities for borrowed money 6
69 Other liabilities (including subordinated notes and
debentures)
1,167,944
278,832
218,324
60,508
9,346
4,834
28,339
6,976
884
10,129
91,165
797,947
762,833
35,114
28,314
1,004
5,306
490
283,616
336
13,992
269,288
1,112,654
225,097
181,495
43,602
6,599
1,884
19,736
6,008
694
8,680
89,240
798,317
763,187
35,130
28,201
994
5,464
470
274,686
540
9,856
264,290
1,117,851
229,172
184,959
44,213
6,617
4,076
19,926
5,036
589
7,968
87,839
800,839
764,918
35,922
28,855
941
5,597
529
281,568
10
20,174
261,384
1,105,514
223,942
177,418
46,525
7,302
1,941
21,816
6,658
637
8,172
84,254
797,317
761,219
36,098
29,044
856
5,682
516
301,294
4,889
28,988
267,417
1,089,936
213,853
172,109
41,744
6,756
1,511
18,896
4,984
637
8,960
82,988
793,096
757,266
35,829
28,734
869
5,731
495
292,930
0
28,200
264,731
1,105,362
218,833
176,618
42,215
6,507
1,419
19,375
5,278
701
8,934
86,962
799,567
762,689
36,878
29,606
864
5,906
502
302,514
0
28,228
274,285
1,100,158
217,141
176,436
40,705
6,199
1,186
18,052
4,820
819
9,629
84,688
798,329
761,161
37,168
30,014
865
5,801
489
292,875
0
28,012
264,862
1,114,940
228,6%
181,508
47,188
7,074
1,608
22,031
5,156
699
10,621
85,254
800,989
763,669
37,320
30,177
873
5,788
481
299,806
525
28,756
270,525
1,099,336
216,608
173,674
42,934
6,787
1,627
17,994
4,921
676
10,929
84,413
798,314
760,760
37,555
30,644
875
5,559
476
287,479
0
29,199
258,281
99,280
103,587
101,801
101,255
102,305
100,043
103,517
106,108
111,559
70 Total liabilities
1,550,839
1,490,928
1,501,220
1,508,063
1,485,171
1,507,919
1,496,550
1,520,854
1,498,374
109,942
110,971
111,010
111,230
110,835
111,017
112,012
111,754
111,729
Total loans and leases, gross, adjusted, plus securities .. 1,321,486
212,521
Time deposits in amounts of $100,000 or more
1,247
Loans sold outright to affiliates, total9
714
Commercial and industrial
533
Other
23,317
Foreign branch credit extended to U.S. residents
-17,154
Net due to related institutions abroad
1,311,538
213,259
1,256
724
532
24,476
-9,531
1,315,173
213,817
1,276
736
540
24,837
-13,009
1,312,403
212,740
1,266
730
536
24,905
-13,058
1,308,064
209,768
1,275
737
538
24,961
-15,265
1,320,687
211,262
1,279
743
536
24,884
-18,304
1,316,342
210,117
1,284
746
537
25,528
-15,150
1,323,783
209,579
1,284
748
537
26,078
-12,185
1,318,351
207,798
1,293
753
539
26,036
-7,031
LIABILITIES
71 Residual (Total assets minus total liabilities)7
MEMO
72
73
74
75
76
77
78
1. Includes certificates of participation, issued or guaranteed by agencies of the
U.S. government, in pools of residential mortgages.
2. Includes securities purchased under agreements to resell.
3. Includes allocated transfer risk reserve.
4. Includes NOW, ATS, and telephone and pre-authorized transfer savings
deposits.
5. Includes borrowings only from other than directly related institutions.
6. Includes federal funds purchased and securities sold under agreements to
repurchase.
7. This balancing item is not intended as a measure of equity capital for use in
capital adequacy analysis.
8. Excludes loans to and federal funds transactions with commercial banks in
the United States.
9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank
affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
10. Credit extended by foreign branches of domestically chartered weekly
reporting banks to nonbank U.S. residents. Consists mainly of commercial and
industrial loans, but includes an unknown amount of credit extended to other than
nonfinancial businesses.
NOTE. Data that formerly appeared on table 1.28 Asset and Liabilities of Large
Weekly Reporting Commercial Banks in New York City may be obtained from the
Board's H.4.2 (504) statistical release. For address see inside front cover.
Weekly Reporting Commercial Banks
1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS 1
Liabilities
A21
Assets and
Millions of dollars, Wednesday figures
1991
Account
1 Cash and balances due from depository
institutions
2 U.S. Treasury and government agency
securities
3 Other securities
4 Federal funds sold1
5 To commercial banks in the United States . . .
6 To others
7 Other loans and leases, gross
8 Commercial and industrial
9
Bankers acceptances and commercial
paper
All other
10
U.S. addressees
11
Non-U.S. addressees
17
13
Loans secured by real estate
14 To financial institutions
15
Commercial banks in the United States..
16
Banks in foreign countries
Nonbank financial institutions
17
18 For purchasing and carrying securities —
19 To foreign governments and official
institutions
All other3
70
21 Other assets (claims on nonrelated parties) ..
22 Total assets4
23
24
25
76
27
28
29
30
31
3?
33
34
35
36
37
Deposits or credit balances due to other
than directly related institutions
Demand deposits
Individuals, partnerships, and
corporations
Other
Nontransaction accounts
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions6
Federal funds purchased
From commercial banks in the
United States
From others
Other liabilities for borrowed money
To commercial banks in the
United States
To others
Other liabilities to nonrelated parties
38 Total liabilities8
Jan. 2
Jan. 9
Jan. 16
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Feb. 27
18,381
17,531
17,989
19,072
18,317
19,135
17,842
17,228
17,867
13,669
7,624
7,729
4,739
2,989
137,190
80,078
13,627
7,595
8,577
3,686
4,890
136,325
80,559
13,250
7,698
8,832
3,726
5,107
136,638
80,948
13,082
7,592
10,572
5,584
4,988
135,724
81,959
13,082
7,576
9,696
3,953
5,743
136,822
82,084
11,781
7,805
7,357
5,317
2,040
142,833
82,902
12,140
7,858
8,097
5,702
2,395
139,242
81,374
13,031
7,838
7,038
4,191
2,847
139,143
81,063
13,686
7,788
9,020
5,885
3,135
138,297
80,636
3,189
79,713
78,001
1,713
26,859
28,389
21,360
931
6,097
1,379
3,062
78,312
76,650
1,662
26,773
26,835
20,063
840
5,931
1,451
3,122
77,941
76,223
1,718
27,044
26,248
19,478
1,032
5,738
1,635
2,973
77,663
75,810
1,853
27,099
25,801
18,869
1,276
5,656
1,414
2,238
77,839
75,902
1,937
27,232
24,662
17,806
1,193
5,663
1,611
2,588
77,971
76,053
1,918
27,331
23,600
16,410
1,403
5,787
1,250
2,446
78,502
76,562
1,940
27,529
23,171
15,848
1,442
5,882
1,577
2,273
79,686
77,688
1,998
27,637
21,642
14,403
1,590
5,649
1,176
2,111
79,973
77,990
1,983
27,845
21,773
14,177
1,514
6,082
1,645
221
3,083
33,806
209
2,599
33,691
215
2,938
33,623
213
3,133
33,631
222
3,386
33,838
250
3,335
33,027
213
3,200
33,043
204
3,105
31,053
290
3,185
31,291
234,903
232,571
233,970
239,537
237,106
240,479
241,123
239,100
240,767
49,653
4,677
52,963
4,296
56,877
4,665
60,434
3,948
63,467
4,030
65,716
3,993
69,203
4,007
70,332
4,046
73,281
4,019
3,147
1,530
44,976
2,808
1,487
48,668
3,038
1,627
52,212
2,709
1,239
56,486
2,637
1,394
59,436
2,610
1,384
61,723
2,452
1,555
65,196
2,521
1,525
66,286
2,462
1,558
69,262
33,788
11,188
36,487
12,181
38,904
13,308
41,534
14,952
43,913
15,523
46,234
15,489
48,837
16,358
50,242
16,044
52,438
16,824
102,803
43,057
105,614
47,233
95,701
36,364
99,537
38,924
93,491
36,788
98,136
42,198
95,226
40,342
92,744
42,011
90,136
36,641
23,558
19,498
59,747
24,135
23,098
58,381
15,487
20,877
59,337
16,356
22,569
60,613
17,096
19,692
56,703
18,601
23,598
55,937
15,840
24,502
54,884
17,954
24,057
50,733
14,974
21,667
53,495
31,254
28,492
33,882
29,186
29,196
32,702
29,806
29,531
32,905
29,057
31,556
33,495
26,821
29,882
33,396
24,134
31,804
32,526
24,156
30,729
32,497
21,326
29,407
30,372
21,818
31,678
30,084
234,903
232,571
233,970
239,537
237,106
240,479
241,123
239,100
240,767
143,099
35,625
141,571
27,278
143,382
33,179
144,037
28,028
143,666
28,013
146,027
21,907
146,845
20,378
146,983
21,802
149,046
22,832
MEMO
39 Total loans (gross) and securities adjusted9 ..
40 Net due to related institutions abroad
1. Includes securities purchased under agreements to resell.
2. Includes transactions with nonbank brokers and dealers in securities.
3. Includes lease financing receivables.
4. Includes net due from related institutions abroad for U.S. branches and
agencies of foreign banks having a net due from position.
5. Includes other transaction deposits.
6. Includes borrowings only from other than directly related institutions.
7. Includes securities sold under agreements to repurchase.
8. Includes net due to related institutions abroad for U.S. branches and
agencies of foreign banks having a net due to position.
9. Excludes loans to and federal funds transactions with commercial banks in
the U.S. At the district level this also excludes trading account securities.
A22
DomesticNonfinancialStatistics • May 1991
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1991
1990
1986
Dec.
1987
Dec.
1989
Dec.
1988
Dec.
1990
Dec/
Aug.
Sept.
Oct.
Nov.
Dec.'
Jan.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
Financial companies'
Dealer-placed paper2
Total
Bank-related (not seasonally
adjusted)3
Directly placed paper
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies
329,991'
358,997'
458,464'
530,123'
566,688
551,399'
562,508'
561,148'
564,482'
566,688
569,378
101,707
102,742'
159,777'
186,343'
218,953
200,302'
205,093
205,673'
211,986'
218,953
216,148
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2,265
1,428
1,248
151,897'
174,332'
194,931'
212,640'
201,862
204,693'
206,079'
205,420'
204,191'
201,862
202,997
40,860
77,712'
43,173
81,923'
43,155
103,756'
n.a.
131,140'
n.a.
145,873
n.a.
146,404'
n.a.
151,336'
n.a.
150,055'
n.a.
148,305'
n.a.
145,873
n.a.
150,233
Bankers dollar acceptances (not seasonally adjusted)6
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
11
12
13
64,974
70,565
66,631
62,972
54,771
52,324
50,469
52,093
53,968
54,771
56,498
13,423
11,707
1,716
10,943
9,464
1,479
9,086
8,022
1,064
9,433
8,510
924
9,017
7,930
1,087
9,944
7,895
2,049
9,366
7,944
1,421
9,189
7,868
1,321
8,751
7,535
1,217
9,017
7,930
1,087
10,029
8,539
1,490
0
1,317
50,234
0
965
58,658
0
1,493
56,052
0
1,066
52,473
0
918
44,836
0
1,560
40,821
0
1,333
39,770
0
1,145
41,760
0
880
44,337
0
918
44,836
0
927
45,542
14,670
12,960
37,344
16,483
15,227
38,855
14,984
14,410
37,237
15,651
13,683
33,638
13,096
12,703
26,481
13,188
12,221
26,915
12,723
11,889
25,856
12,408
13,238
26,447
12,758
13,865
27,345
13,096
12,703
26,481
14,284
12,870
n.a.
1. Institutions engaged primarily in activities such as, but not limited to,
commercial savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities.
2. Includes all financial company paper sold by dealers in the open market.
3. Beginning January 1989, bank-related series have been discontinued.
4. As reported by financial companies that place their paper directly with
investors.
5. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. Beginning January 1988, the number of respondents in the bankers acceptance survey were reduced from 155 to 111 institutions—those with $100 million
or more in total acceptances. The panel is revised every January and currently has
about 100 respondents. The current reporting group accounts for over 90 percent
of total acceptances activity.
1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per year
Period
Date of change
1988— Feb.
May
July
Aug.
Nov.
2
11
14
11
28
8.50
9.00
9.50
10.00
10.50
1989—Feb. 10
24
June 5
July 31
11.00
11.50
11.00
1990— Jan.
8
10.00
1991—Feb.
4
9.00
10.50
Average
rate
1988
1989
1990
9.32
10.87
10.01
1988— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
8.75
8.51
8.50
8.50
8.84
9.00
9.29
9.84
10.00
10.00
10.05
10.50
NOTE. These data also appear in the Board's H.15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Period
1989—Jan. ...
Feb. ..
Mar. ..
Apr. ..
May ...
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec. ..
Average
rate
10.50
10.93
11.50
11.50
11.50
11.07
10.98
10.50
10.50
10.50
10.50
10.50
Period
1990—Jan. ...
Feb. ..
Mar. ..
Apr. ..
May ...
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec.
1991—Jan. ,
Feb.
Mar.
Financial Markets
1.35
A23
I N T E R E S T R A T E S M o n e y and Capital Markets
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1988
1989
1991, week ending
1991
1990
Instrument
1990
Nov.
Dec.
Jan.
Feb.
Jan. 25
Feb. 1
Feb. 8
Feb. 15
Feb. 2 2
MONEY MARKET RATES
1
2
3
4
5
6
7
8
9
10
11
17
N
14
15
16
17
18
19
20
Discount window boirowing 2,11
Commercial paper3, '
6-month
Finance paper, directly placed 3,4 ' 6
6-month
Bankers acceptances3'4'
6-month
Certificates of deposit, secondary
market3'8
Eurodollar deposits, 3-month3'9
U.S. Treasury bills
Secondary market3.
1-year
Auction average3' •
1-year
7.57
6.20
9.21
6.93
8.10
6.98
7.81
7.00
7.31
6.79
6.91
6.50
6.25
6.00
6.88
6.50
7.46
6.50
6.32
6.07
6.29
6.00
6.26
6.00
7.58
7.66
7.68
9.11
8.99
8.80
8.15
8.06
7.95
7.84
7.91
7.74
8.28
7.80
7.49
7.12
7.10
7.02
6.53
6.49
6.41
6.83
6.92
6.86
6.90
6.89
6.82
6.44
6.41
6.36
6.47
6.45
6.36
6.51
6.48
6.42
7.44
7.38
7.14
8.99
8.72
8.16
8.00
7.87
7.53
7.64
7.75
7.42
7.62
7.32
6.95
6.95
6.92
6.59
6.31
6.38
6.14
6.68
6.77
6.55
6.76
6.73
6.47
6.32
6.29
6.06
6.31
6.34
6.07
6.25
6.39
6.16
7.56
7.60
8.87
8.67
7.93
7.80
7.82
7.58
7.60
7.25
6.96
6.84
6.36
6.22
6.76
6.63
6.67
6.54
6.28
6.14
6.30
6.15
6.38
6.24
7.59
7.73
7.91
7.85
9.11
9.09
9.08
9.16
8.15
8.15
8.17
8.16
7.92
8.03
7.95
8.04
8.27
7.82
7.64
7.87
7.10
7.17
7.17
7.23
6.45
6.52
6.51
6.60
6.77
6.94
6.97
7.20
6.77
6.84
6.85
6.95
6.40
6.45
6.45
6.70
6.38
6.44
6.44
6.50
6.44
6.54
6.54
6.50
6.67
6.91
7.13
8.11
8.03
7.92
7.50
7.46
7.35
7.06
7.03
6.85
6.74
6.70
6.61
6.22
6.28
6.25
5.94
5.93
5.91
6.12
6.20
6.19
6.17
6.19
6.13
5.94
5.91
5.87
5.87
5.87
5.84
5.94
5.93
5.93
6.68
6.92
7.17
8.12
8.04
7.91
7.51
7.47
7.36
7.07
7.04
6.81
6.81
6.76
6.58
6.30
6.34
6.22
5.95
5.93
5.85
6.14
6.21
6.22
6.28
5.97
5.94
n.a.
n.a.
n.a.
5.86
5.85
5.85
n.a.
7.65
8.10
8.26
8.53
8.57
8.55
7.89
8.16
8.26
7.31
7.60
7.74
7.05
7.31
7.47
6.64
7.13
7.38
6.27
6.87
7.08
6.58
7.09
7.35
6.51
7.03
7.29
6.23
6.81
7.01
6.20
6.79
6.98
6.30
6.91
7.12
8.47
8.71
8.85
8.96
8.50
8.52
8.49
8.45
8.37
8.52
8.55
8.61
8.02
8.28
8.39
8.54
7.73
8.00
8.08
8.24
7.70
7.97
8.09
8.27
7.47
7.73
7.85
8.03
7.66
7.92
8.04
8.22
7.60
7.87
8.02
8.19
7.41
7.69
7.82
8.01
7.39
7.66
7.78
7.97
7.51
7.76
7.86
8.03
8.98
8.58
8.74
8.60
8.31
8.33
8.12
8.28
8.25
8.08
8.05
8.13
7.36
7.83
7.68
7.00
7.40
7.23
6.96
7.29
7.27
6.75
7.22
7.18
6.63
7.10
7.09
6.57
7.17
7.08
n.a.
n.a.
6.91
6.51
7.10
7.06
6.66
7.13
7.00
6.31
7.07
6.86
6.21
6.93
6.81
6.45
6.98
6.97
10.18
9.71
9.94
10.24
10.83
10.20
9.66
9.26
9.46
9.74
10.18
9.79
9.77
9.32
9.56
9.82
10.36
10.01
9.85
9.30
9.59
9.88
10.62
10.07
9.63
9.05
9.39
9.64
10.43
9.95
9.62
9.04
9.37
9.61
10.45
9.83
9.36
8.83
9.16
9.38
10.07
9.54
9.61
9.05
9.36
9.58
10.44
9.80
9.55
9.00
9.33
9.54
10.34
9.65
9.40
8.87
9.21
9.40
10.13
9.53
9.31
8.77
9.12
9.34
10.00
9.46
9.34
8.81
9.14
9.36
10.04
9.53
9.23
3.64
9.05
3.45
n.a.
8.88
3.91
8.72
3.74
8.71
3.82
8.46
3.35
8.69
3.75
8.61
3.64
8.57
3.43
8.44
3.32
8.41
3.34
5.94
5.91
CAPITAL MARKET RATES
21
22
23
24
25
26
21
28
29
30
31
32
33
34
35
36
37
38
39
U.S. Treasury notes and bonds
Constant maturities13
1-year
2-year
3-year
5-year
7-year
10-year
30-year
Composite14
Over 10 years (long-term)
State and local notes and bonds
Moody's series
Aaa
Baa
Bond Buyer series 10
Corporate bonds
Seasoned issues
All industries
Aaa
Aa
A
Baa
A-rated, recently offered utility bonds
MEMO: Dividend/price ratio19
Preferred stocks
Common stocks
..
1. The daily effective federal funds rate is a weighted average of rates on
trades through N.Y. brokers.
2. Weekly figures are averages of 7 calendar days ending on Wednesday of the
current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Quoted on a discount basis.
5. An average of offering rates on commercial paper placed by several leading
dealers for firms whose bond rating is AA or the equivalent.
6. An average of offering rates on paper directly placed by finance companies.
7. Representative closing yields for acceptances of the highest rated money
center banks.
8. An average of dealer offering rates on nationally traded certificates of
deposit.
9. Bid rates for Eurodollar deposits at 11 a.m. London time.
10. One of several base rates used by banks to price short-term business loans.
11. Rate for the Federal Reserve Bank of New York.
12. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.
13. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
14. Unweighted average of rates on all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower"bond.
15. General obligation based on Thursday figures; Moody's Investors Service.
16. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
17. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
18. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
19. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
A24
1.36
DomesticNonfinancialStatistics • May 1991
STOCK M A R K E T
Selected Statistics
1990
Indicator
1988
1989
1991
1990
July
June
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
Utility
4
5
Finance
6 Standard & Poor's Corporation
(1941-43 = 10)1
149.97
180.83
134.09
72.22
127.41
180.13
228.04
174.90
94.33
162.01
183.48
225.81
158.64
90.61
133.23
196.68
242.42
177.37
93.65
147.93
196.61
245.86
173.18
89.85
143.11
181.45
226.73
147.41
85.81
128.14
173.22
216.81
136.95
83.30
118.59
168.05
208.58
131.99
87.27
108.01
172.21
212.81
132.96
89.69
113.76
179.57
221.86
141.31
91.56
122.18
177.95
220.69
145.89
88.59
121.39
197.75
246.74
166.06
92.08
141.03
265.88
323.05
334.63
360.39
360.03
330.75
315.41
307.12
315.29
328.75
325.49
362.26
7 American Stock Exchange
(Aug. 31, 1973 = 50?
295.08
356.67
338.36
361.62
359.09
333.49
318.53
296.67
294.88
305.54
304.08
338.11
161,386
9,955
165,568
13,124
156,842
13,155
153,634
12,421
160,490
12,529
174,446
15,881
142,054
11,668
159,590
11,294
149,916
10,368
155,836
11,620
166,323
10,870
226,635
16,649
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers
32,740
34,320
28,210
31,720
32,130
30,350
29,640
28,650
27,820
28,210
27,390
28,860
Free credit balances at brokers'
11 Margin-account5
12 Cash-account
5,660
16,595
7,040
18,505
8,050
19,285
6,490
15,625
6,385
17,035
7,140
16,745
7,285
16,185
7,245
15,820
7,300
17,025
8,050
19,285
7,435
18,825
7,190
19,435
Margin requirements (percent of market value and effective date)6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. New series beginning June 1984.
6. These regulations, adopted by the Board of Governors pursuant to the
Securities Exchange Act of 1934, limit the amount of credit to purchase and carry
"margin securities" (as defined in the regulations) when such credit is collateralized by securities. Margin requirements on securities other than options are the
difference between the market value (100 percent) and the maximum loan value of
collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15,
1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968;
and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market-value of the stock underlying the option. On
Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
1.37 SELECTED FINANCIAL INSTITUTIONS
Financial Markets
A23
Sept.
Nov.
Dec.
Selected Assets and Liabilities
Millions of dollars, end of period
1990
Account
1988
1989
Mar.
Apr.
May
June
July
Aug.
Oct.
SAIF-insured institutions
1 Assets
2 Mortgages
3 Mortgage-backed
securities
Contra-assets to
4
mortgage assets' .
5 Commercial loans
6 Consumer loans
7
Contra-assets to nonmortgage loans .
8 Cash and investment
securities
9 Other5
1,197,787 l,174,615 r l,162,561 r 1,157,157' 1,124,895' 1,115,363
1,350,500
1,249,055
1,223,350
1,210,338
1,107,485
1,083,631
764,513
733,729
717,687
715,422
708,550
691,239
689,080'
684,967'
665,955'
662,451
653,512
633,957
214,587
170,532
167,683
166,167
165,741
159,173
158,I46r
156,398'
154,196'
153,425
155,577
155,360
37,950
33,889
61,922
25,457
32,150
58,685
23,073
31,069
56,805
21,999
30,931
56,639
22,044
30,351
55,659
20,337
28,753
55,171
19,550
28,483
54,667'
19,321
27,868
53,387'
18,460'
26,775'
50,517'
17,031
26,053
49,323
16,908
25,249
48,552
16,926
24,233
47,218
3,056
3,592
2,476
2,227
1,771
1,980
1,978'
186,986
129,610
166,053
116,955
162,313
113,341
153,346
112,059
152,391
108,910
155,674
106,922
150,396'
103,318'
10 Liabilities and net worth . 1,350,500
1,249,055
1,223,350
1,210,338
945,656
252,230
124,577
127,653
27,556
23,612
929,910
246,875
117,489
129,386
25,997
20,568
916,069
246,646
115,620
131,026
27,341
20,282
11
12
13
14
15
16
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
971,700
299,400
134,168
165,232
24,216
n.a.
1,956'
1,712
1,676
1,942
148,041'
99,827'
145,304
97,550
146,020
97,159
146,517
95,215
1,197,787 1,174,615' 1,162,561' 1,157,157' 1,124,895' 1,115,363
1,107,485
1,083,631
846,820
202,316
100,493
101,823
26,135
32,214
835,532
195,619
100,391
95,228
21,247
31,234
902,653
241,943
114,047
127,896
28,807
24,379
890,497
230,169
109,733
120,436
25,151
28,803
885,272
222,442
106,127
116,315
26,749'
28,099
2,022
153,052'
102,829'
878,730
221,872
105,882
115,990
28,240
28,316'
857,687'
212,224'
101,731'
110,493'
23,861'
31,124'
851,810
206,771
100,574
106,197
25,585
31,197
SAIF-insured federal savings banks
17 Assets
425,966
498,522
595,644
593,345
570,795
583,392
580,847
584,632
591,136
588,880
585,847
576,531
18 Mortgages
19 Mortgage-backed
securities
20 Contra-assets to
mortgage assets' .
21 Commercial loans
22 Consumer loans
23
Contra-assets to nonmortgage loans .
24 Finance leases plus
interest
25 Cash and investment . . .
26 Other
230,734
283,844
332,995
333,300
317,985
323,516
328,236
328,895
332,927
332,431
328,122
320,233
64,957
70,499
80,059
81,030
77,781
78,001
80,474
80,994
82,418
82,219
84,190
81,205
13,140
16,731
24,222
13,548
18,143
28,212
11,844
20,366
20,365
11,590
20,324
20,324
10,798
19,713
32,407
10,200
19,683
32,745
9,227
18,810
31,003
9,339
18,662
31,183
9,964
18,767
30,750
9,578
18,458
30,682
9,305
18,197
30,421
9,591
17,674
29,933
889
1,193
1,001
908
707
970
870
813
980
572
809
990
880
61,029
35,412
1,101
64,538
39,981
n.a.
76,158
46,371
n.a.
72,618
46,180
n.a.
70,999
44,840
n.a.
75,081
47,723
n.a.
71,354
44,150
n.a.
73,756
44,129
n.a.
73,602
46,043
n.a.
75,117
45,287
n.a.
72,454
45,319
n.a.
75,940
45,008
27 Liabilities and net worth .
425,966
498,522
595,644
593,345
570,795
583,392
580,847
584,632
591,136
588,880
585,847
576,531
28
29
30
31
32
33
298,197
99,286
46,265
53,021
8,075
20,218
360,547
108,448
57,032
51,416
9,041
22,716
433,000
126,253
63,550
62,703
9,435
24,169
429,469
126,240
63,120
63,120
9,982
23,505
413,009
123,415
61,057
62,358
10,307
21,138
427,379
121,721
60,666
61,055
8,889
21,944
423,472
118,393
61,287
57,106
9,245
26,424
424,260
120,592
62,209
58,383
10,128
26,420
434,705
119,991
61,605
58,386
8,253
24,859
436,080
115,472
60,256
55,216
9,063
24,837
436,903
111,270
60,265
51,005
9,824
24,931
434,297
107,270
59,949
47,321
8,193
24,172
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
A26
DomesticNonfinancialStatistics • May 1991
1.37—Continued
1990
Account
1988
1989
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
f
f
f
1
1
1
n.a.
1
n.a.
n.a.
1
Credit unions4
34 Total assets/liabilities
and capital
174,593
183,688
192,718
193,208
195,020
195,302
194,523
196,625
197,272
35
36
114,566
60,027
120,666
63,022
126,690
66,028
127,250
65,958
128,648
66,372
128,142
67,160
127,564
66,959
128,715
67,910
129,086
68,186
113,191
73,766
39,425
159,010
104,431
54,579
122,608
80,272
42,336
167,371
109,653
57,718
121,660
79,407
42,253
175,942
115,714
60,228
122,616
80,205
42,411
175,745
115,554
60,191
123,205
80,550
42,655
176,701
116,402
60,299
123,968
81,063
42,905
178,127
116,717
61,408
124,343
81,063
43,280
176,360
115,305
61,056
126,156
82,040
44,116
178,081
116,411
61,670
127,341
82,823
44,518
177,532
115,469
62,063
Federal
State
37 Loans outstanding
38
Federal
39
State
40 Savings
41
Federal
42
State
1
I
•
Life insurance companies5
43 Assets
44
45
46
47
48
49
50
51
52
53
54
Securities
Government
United States6
State and local
Foreign
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
1,299,756
1,376,660
1,387,463
178,141
153,361
9,028
15,752
663,677
538,063
125,614
254,215
39,908
57,439
106,376
195,287
167,735
10,963
16,589
705,070
570,245
134,825
264,865
44,188
63,144
104,106
202,962
175,156
11,818
15,988
709,470
588,251
121,219
266,063
44,544
60,641
103,783
1. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
mortgage loans, contracts, and pass-through securities include loans in process,
unearned discounts and deferred loan fees, valuation allowances for mortgages
"held for sale," and specific reserves and other valuation allowances.
2. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
nonmortgage loans include loans in process, unearned discounts and deferred loan
fees, and specific reserves and valuation allowances.
3. Holding of stock in Federal Home Loan Bank and Finance leases plus
interest are included in "Other" (line 9).
4. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
5. Data are no longer available on a monthly basis for life insurance companies.
6. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
7. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
NOTE. SAIF-insured institutions: Estimates by the OTS for all institutions
insured by the SAIF and based on the OTS thrift Financial Report.
SAIF-insured federal savings banks: Estimates by the OTS for federal savings
banks insured by the SAIF and based on the OTS thrift Financial Report.
Credit unions: Estimates by the National Credit Union Administration for
federally chartered and federally insured state-chartered credit unions serving
natural persons.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other assets."
Financial Markets A23
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1988
Fiscal
year
1989
Fiscal
year
1990'
1990
Oct.
Nov.
Dec.
Jan.
Feb.
78,528'
24,332
82,012'
80,599'
1,413
20,848
-2,071
22,919
77,061'
57,101'
19,960
108,346'
89,433'
18,912
-31,285
-32,332
1,048
70,507'
45,531'
24,976
118,218'
96,769'
21,448
-47,711
-51,238
3,528
101,900'
82,059'
19,841
109,212'
94,679'
14,532
-7,311
-12,620
5,309
100,713'
70,023
30,690
98,952'
79,035'
19,918
1,760
-9,012
10,772
67,657
45,954
22,063
93,737
72,570
21,167
-26,080
-26,976
8%
Sept.
U.S. budget1
1 Receipts, total
On-budget
3 Off-budget
4 Outlays, total
5 On-budget
6
Off-budget
7 Surplus, or deficit ( - ) , total
8
On-budget
9
Off-budget
2
10
11
12
Source of financing (total)
Borrowing from the public
Operating cash (decrease, or increase ( - ) ) .
Other
1991
102,86c
908,166
666,675
241,491
1,063,318
860,627
202,691
-155,151'
-193,952
38,800
990,701
727,035
263,666
1,144,020
933,107'
210,911
-153,32(y
-206,072'
52,753'
1,031,228
749,574
281,654
1,251,618
1,026,551
225,065
-220,390
-276,977
56,590
166,139
-7,962
-3,026'
141,806
3,425
8,089'
264,453
818
-44,881
-2,595
17,832
-421
32,265
4,720
-5,700
46,776
12,533
-11,59
19,700
-9,286
-3,103
31,764
-30,627
-2,897
34,611
2,341
-10,872
44,398
13,023
31,375
40,973
13,452
27,521
40,155
7,638
32,517
40,155
7,638
32,517
35,435
7,607
27,828
22,902
5,495
17,406
32,188
8,960
23,228
62,815
27,810
35,006
60,474
23,898
36,577
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to
international monetary fund; other cash and monetary assets; accrued interest
payable to the public; allocations of special drawing rights; deposit funds;
miscellaneous liability (including checks outstanding) and asset accounts;
seigniorage; increment on gold; net gainAoss for U.S. currency valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold.
SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government and the Budget of the U.S. Government.
A28
1.39
DomesticNonfinancialStatistics • May 1991
U.S. B U D G E T RECEIPTS A N D OUTLAYS1
Millions of dollars
Calendar year
Source or type
Fiscal
year
1989
Fiscal
year
1990
1989
1990
1990
HI
H2
HI
1991
H2
Dec.
Jan.
Feb.
RECEIPTS
1 All sources
2 Individual income taxes, net
Withheld
3
4
Presidential Election Campaign Fund
5
Nonwithheld
6
Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Employment taxes and
contributions2
Self-employment taxes and
11
contributions3
12 Unemployment insurance
13 Other net receipts4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts
990,701
1,031,229'
527,574
470,276'
548,861'
503,119'
101,90c
100,713'
67,657
445,690
361,386
32
154,839
70,567
466,884
390,480
32
149,189
72,817
233,572
174,230
28
121,563
62,251
218,706
193,2%
3
33,303
7,898
243,087
190,219
30
117,675
64,838
230,745
207,469
3
31,728
8,455
46,471
44,560
0
2,605
694
50,882
29,390
0
21,799
308
27,929
32,737
4
1,186
5,998
117,015
13,723
110,017
16,510
61,585
7,259
52,269
6,842
58,830
8,326
54,044
7,603
23,425
902
5,025
1,197
3,611
1,116
359,416
380,047
200,127
162,574
210,476
178,468
25,480
39,604
29,872
332,859
353,891
184,569
152,407
195,269
167,224
24,918
38,472
27,824
18,504
22,011
4,546
21,795
21,635
4,522
16,371
13,279
2,277
1,947
7,909
2,260
19,017
12,929
2,278
2,638
8,9%
2,249
0
217
345
1,795
778
354
1,445
1,678
370
34,386
16,334
8,745
22,839
35,345
16,707
11,500
27,237r
16,814
7,918
4,583
10,235
16,799
8,667
4,451
13,651'
18,153
8,0%
6,442
12,106'
17,535
8,568
5,333
16,029'
3,005
1,281
741
2,399'
2,931
1,324
906
1,237'
2,594
1,215
772
2,780
1,144,020
l,251,618r
565,425
587,394'
640,867'
647,222'
109,212'
98,952'
93,737
303,559
9,574
12,838
3,702
16,182
16,948
299,335
13,760
14,420
2,470
17,009
11,998
148,098
6,567
6,238
2,221
7,022
9,619
149,613
5,971
7,091
1,449
9,183
4,132
152,733
6,770
6,974
1,216
7,343
7,450
153,757
8,943
8,081
979
9,930
6,878
26,021
488
1,486
190
1,138
2,742
21,874
395
1,013
71
1,398
1,516
25,732
929
1,188
31
1,183
578
29,091
27,608
5,361
67,495
29,495
8,466
4,129
12,953
1,833
22,295
14,982
4,879
38,672
13,754
3,987
37,491
16,218
3,939
4,597
2,919
-37
-144
2,658
663
-2,257
2,134
494
OUTLAYS
18 All types
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
29 Health
30 Social security and medicare
31 Income security
32
33
34
35
36
37
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest6
Undistributed offsetting receipts7
36,694
37,479
18,083
18,663
19,537
18,988
3,863
4,045
3,509
48,390
317,506
136,031
58,101
346,383
148,299
24,078
162,195
70,937
25,339
162,322
67,950
29,488
175,997
78,475
31,424
176,353
75,948
5,206
29,301
13,904
5,663
30,625
14,299
5,464
30,476
15,475
30,066
9,422
9,124
n.a.
169,317
-37,212
29,112
10,076
10,822
n.a.
183,790
-36,615
14,891
4,801
3,858
0
86,009
-18,131
14,864
4,909'
4,760
n.a.
87,927
-18,935
15,217
4,868'
4,916
n.a.
91,155
-17,688
15,479
5,265'
6,982
n.a.
94,650
-19,829
2,446
846'
976
n.a.
16,362
-2,891
%2
951'
1,071
n.a.
16,064
-4,172
1. Functional details do not add to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
total for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
2,591
1,010
147
n.a.
16,782
-11,730
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf, U.S. government contributions for employee retirement, and contributions to the Defense
Cooperation Account.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1990.
Federal Finance
A29
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1989
1988
1990
Item
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
1 Federal debt outstanding
2,707.3
2,763.6
2,824.0
2,881.1
2,975.5
3,081.9
3,175.5
3,266.1
3,397.3
2 Public debt securities
Held by public
3
4
Held by agencies
2,684.4
2,095.2
589.2
2,740.9
2,133.4
607.5
2,799.9
2,142.1
657.8
2,857.4
2,180.7
676.7
2,953.0
2,245.2
707.8
3,052.0
2,329.3
722.7
3,143.8
2,368.8
775.0
3,233.3
2,437.6
795.8
3,364.8
n.a.
n.a.
22.9
22.6
.3
22.7
22.3
.4
24.0
23.6
.5
23.7
23.5
.1
22.5
22.4
.1
29.9
29.8
.2
31.7
31.6
.2
32.8
32.6
.2
5 Agency securities
6
Held by public
7
Held by agencies
n.a.
n.a.
n.a.
2,669.1
2,725.6
2,784.6
2,829.8
2,921.7
2,988.9
3,077.0
3,161.2
3,281.7
9 Public debt securities
10 Other debt 1
2,668.9
.2
2,725.5
.2
2,784.3
.2
2,829.5
.3
2,921.4
.3
2,988.6
.3
3,076.6
.4
3,160.9
.4
3,281.3
.4
11 MEMO: Statutory debt limit
2,800.0
2,800.0
2,800.0
2,870.0
3,122.7
3,122.7
3,122.7
3,195.0
4,145.0
8 Debt subject to statutory limit
1. Includes guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
1.41 GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCES. Treasury Bulletin and Monthly Statement
United States.
of the Public Debt of the
Types and Ownership
Billions of dollars, end of period
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable'
State and local government series
Foreign issues
Government
Public
Savings bonds and n o t e s . . .
Government account series
14 Non-interest-bearing debt
15
16
17
18
19
20
21
22
23
24
25
26
By holder*
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local Treasurys
Individuals
Savings bonds
Other securities
Foreign and international5
Other miscellaneous investors 6
1987
Ql
Q2
Q3
Q4
2,431.7
2,684.4
2,953.0
3,364.8
3,052.0
3,143.8
3,233.3
3,364.8
2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0
.0
99.2
461.3
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
.0
107.6
575.6
2,931.8
1.945.4
430.6
1.151.5
348.2
986.4
163.3
6.8
6.8
.0
115.7
695.6
3,362.0
2,195.8
527.4
1,265.2
388.2
1,166.2
160.8
43.5
43.5
124.1
813.8
3,029.5
1,995.3
453.1
1,169.4
357.9
1,034.2
163.5
37.1
37.1
.0
118.0
705.1
3,121.5
2,028.0
453.5
1,192.7
366.8
1,093.5
164.3
36.4
36.4
.0
120.1
758.7
3,210.9
2,092.8
482.5
1,218.1
377.2
1,118.2
161.3
36.0
36.0
.0
122.2
779.4
3,362.0
2,195.8
527.4
1,265.2
388.2
1,166.2
160.8
43.5
43.5
.0
124.1
813.8
2.8
21.3
21.2
2.8
22.4
22.3
22.4
2.8
477.6
222.6
1,731.4
201.5
14.6
104.9
84.6
284.6
589.2
238.4
1,858.5
193.8
707.8
228.4
2,015.8
11.8
107.3
87.1
313.6
14.4
107.9
98.7
337.1
722.7
219.3
2,115.1
182.0
31.3
108.0
102.2
342.0
775.0
231.4
2,141.8
195.0
28.1
n.a.
112.1
n.a.
795.8
232.5
2,207.3
n.a.
n.a.
n.a.
114.6
n.a.
101.1
71.3
299.7
569.1
109.6
79.2
362.2
593.4
117.7
93.8
393.4
672.5
119.9
95.0
386.9
749.5
121.9
n.a.
392.7
n.a.
123.9
n.a.
n.a.
n.a.
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. Treasury agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds
are actual holdings; data for other groups are Treasury estimates.
1990
6.6
6.6
180.6
.0
n.a.
5. Consists of investments of foreign and international accounts. Excludes
non-interest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder and the
Treasury Bulletin.
A30
1.42
DomesticNonfinancialStatistics • May 1991
U.S. G O V E R N M E N T SECURITIES DEALERS
Transactions 1
Millions of dollars, daily averages
1991, week ending
Item
Nov.
Dec.
Jan.
Jan. 2
Jan. 9
Jan. 16
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Feb. 27
IMMEDIATE TRANSACTIONS 2
By type of security
U.S. government securities
1
Bills
Coupon securities
2
Maturing in less than 3.5 years
Maturing in 3.5 to 7.5 years...
3
4
Maturing in 7.5 to 15 years....
Maturing in 15 years or more..
5
Federal agency securities
Debt
6
Maturing in less than 3.5 years
7
Maturing in 3.5 to 7.5 years...
Maturing in 7.5 years or more
8
Mortgage-bac ked
Pass-throughs
9
10
All others
By type of counterparty
Primary dealers and brokers
11
U.S. government securities....
Federal agency
12
Debt securities
13
Mortgage backed securities .
Customers
14 U.S. government securities
Federal agency
15
Debt securities
16
Mortgage-backed securities .
32,259
32,387
35,403
31,087
39,907
36,908
37,132
28,449
40,113
30,613
30,502
29,602
33,722
25,249
15,451
15,364
28,498
24,702
11,161
13,055
38,084
28,005
10,873
14,905
25,299
17,613
5,081
7,568
40,250
33,281
12,498
17,105
32,314
27,219
8,466
13,455
48,320
29,319
12,060
17,415
32,661
25,534
10,583
13,780
57,607
32,135
21,879
18,902
40,351
32,022
18,236
20,719
39,528
29,310
13,714
18,192
36,705
29,987
12,721
14,384
4,562
626
605
4,968
509
614
4,716
453
1,079
5,129
201
344
5,410
544
2,261
4,210
486
1,292
4,459
427
583
4,671
392
505
4,456
786
923
4,026
721
806
3,531
508
613
3,872
457
465
8,646
1,440
12,308
1,340
10,991
1,066
8,502
502
15,847
1,128
10,970
1,172
8,615
1,042
9,468
1,106
11,283
1,277
11,728
1,456
7,788
1,205
10,060
1,715
74,510
66,700
78,825
48,160
91,380
71,471
92,219
67,754
102,536
87,010
81,696
77,562
1,900
5,036
1,842
7,230
1,985
6,048
1,537
4,982
2,780
8,019
2,123
6,151
1,537
5,187
1,702
5,355
1,878
5,591
1,699
6,401
1,170
4,663
1,148
5,957
47,535
43,102
48,445
38,487
51,661
46,891
52,026
43,253
68,100
54,932
49,549
45,836
3,894
5,050
4,248
6,418
4,263
6,008
4,136
4,022
5,435
8,956
3,864
5,991
3,932
4,470
3,865
5,219
4,286
6,969
3,854
6,783
3,482
4,331
3,646
5,817
5,402
4,833
6,339
2,228
7,624
5,259
10,793
3,089
7,506
3,642
4,344
3,677
1,556
797
1,295
10,185
1,093
810
1,037
7,861
1,470
804
861
9,362
646
510
864
4,477
1,669
829
1,100
12,065
1,126
883
871
8,582
1,298
849
795
11,562
1,839
750
532
7,256
2,873
910
1,594
9,051
2,012
1,103
2,253
10,928
2,398
734
699
9,606
2,012
827
1,199
8,269
47
57
36
113
36
39
121
40
62
30
6
11
26
4
190
116
21
44
72
150
26
320
4
15
53
9
26
177
59
31
201
6
72
126
19
80
9,025
1,151
6,603
780
9,203
1,112
3,598
434
12,348
1,369
11,465
1,034
9,498
1,268
5,741
974
9,199
1,477
11,688
702
11,168
1,268
6,995
930
FUTURE AND FORWARD
TRANSACTIONS 4
By type of deliverable security
U.S. government securities
17 Bills
Coupon securities
18
Maturing in less than 3.5 years
19
Maturing in 3.5 to 7.5 years...
20
Maturing in 7.5 to 15 years . . .
21
Maturing in 15 years or more..
Federal agency securities
Debt
22
Maturing in less than 3.5 years
23
Maturing in 3.5 to 7.5 years...
24
Maturing in 7.5 years or more
Mortgage-backed
25
Pass-throughs
26
All others
OPTION TRANSACTIONS 5
By type of underlying securities
U.S. government securities
Bills
Coupon securities
28
Maturing in less than 3.5 years
29
Maturing in 3.5 to 7.5 years . . .
30
Maturing in 7.5 to 15 years
31
Maturing in 15 years or more..
Federal agency securities
Debt
32
Maturing in less than 3.5 years
33
Maturing in 3.5 to 7.5 years...
34
Maturing in 7.5 years or more
Mortgage-backed
35
Pass-throuehs
36
All others
27
63
10
64
0
58
14
38
160
120
78
236
0
661
240
202
2,299
650
270
195
1,648
1,136
245
187
2,669
735
241
62
1,048
1,631
84
192
2,580
1,112
414
163
3,299
920
90
215
3,426
715
394
231
2,032
2,764
244
180
2,601
1,281
437
285
2,436
1,012
274
225
3,511
1,651
253
177
2,268
5
0
1
1
0
0
22
0
0
0
0
0
0
1
1
0
1
0
0
0
0
101
0
0
1
0
0
0
0
0
7
1
0
0
0
4
370
0
382
0
356
2
284
0
538
0
274
0
331
8
306
0
376
0
645
0
191
0
285
2
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Averages for transactions are based on the
number of trading days in the period. Immediate, forward, and future transactions
are reported at principal value, which does not include accrued interest; option
transactions are reported at the face value of the underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Transactions for immediate delivery include purchases or sales of securities
(other than mortgage-backed agency securities) for which delivery is scheduled in
five business days or less and "when-issued" securities that settle on the issue
date of offering. Transactions for immediate delivery of mortgage-backed securities
include purchases and sales for which delivery is scheduled in thirty days or less.
Stripped securities are reported at market value by maturity of coupon or corpus.
3. Includes securities such as CMOs, REMICs; IOs, and POs.
4. Futures transactions are standardized agreements arranged on an exchange.
Forward transactions are agreements made in the over-the-counter market that
specify delayed delivery. All futures transactions are included regardless of time
to delivery. Forward contracts for U.S. government securities and federal agency
debt securities are included when the time to delivery is more than five days.
Forward contracts for mortgage-backed securities are included when the time to
delivery is more than thirty days.
5. Options transactions are purchases or sales of put and call options, whether
arranged on an organized exchange or in the over-the-counter market and include
options on futures contracts on U.S. government and federal agency securities.
Federal Finance
1.43 U.S. GOVERNMENT SECURITIES DEALERS
A31
Positions and Financing1
Millions of dollars
1990
1991
1990,
week
ending
Jan.
Dec. 26
Item
Nov.
Dec.
1991, week ending
Jan. 2
Jan. 9
Jan. 16
Jan. 23
Jan. 30
Feb. 6
Feb. 13
Feb. 20
Positions2
NET IMMEDIATE 3
1
2
3
4
5
6
7
8
9
10
11
12
13
By type of security
U.S. government securities
Bills
Coupon securities
Maturing in less than 3.5 years
Maturing in 3.5 to 7.5 years
Maturing in 7.5 to 15 years
Maturing in 15 years or more
Federal agency securities
Debt
Maturing in less than 3.5 years
Maturing in 3.5 to 7.5 years
Maturing in 7.5 years or more
Mortgage-backed
Pass-throughs
All others
Other money market instruments
Certificates of deposit
Commercial paper
Bankers' acceptances
17,283
10,781
11,211
12,237
10,004
11,307
15,836
12,181
10,434
10,156
-1,868
424
-7,187
-6,890
-9,599 -10,498
4,136
902
-6,831
-13,960
559
-768
-7,520
-14,961
5,193
-3,413
-7,441
-13,985
5,082
-1,857
-8,500
-13,324
8,664
-5,528
-7,308
-12,030
7,773
-4,118
-4,794
-10,988
12,253
-6,142
-4,474
-12,617
3,327
1,968
4,201
3,287
2,046
7,962
5,617
1,821
7,569
3,428
1,824
7,573
3,892
1,975
7,363
3,968
2,240
7,485
4,461
2,184
7,088
5,291
2,162
7,062
20,680
12,693
22,564
12,076
27,809
11,022
22,343
10,961
21,408
9,988
21,778
10,360
23,495
10,158
27,571
11,033
25,590
10,473
2,936
6,243
1,041
2,725
7,816
693
2,271
6,762
732
2,584
6,200
1,072
3,040
6,162
960
3,043
5,759
999
3,189
6,531
1,214
3,488
7,441
1,105
3,161
5,633
942
2,796
5,708
1,039
-19,084
-21,345
-21,009
-22,834
-23,447
-23,467
-19,460
-18,872
-19,314
-19,301
-14,857
-1,347
-3,308
-1,000
-5,865
-1,273
-3,147
-917
-5,487
-2,231
-3,851
-456
-6,516
-1,919
-4,178
-734
-5,934
-1,363
-3,791
-1,270
-5,838
-1,688
-3,103
-676
-3,837
-2,518
-2,571
-920
-5,764
705
-2,867
-937
-6,157
-1,565
-2,887
-328
-7,048
-2,617
-2,013
-776
-5,043
-1,334
-2,131
-621
-3,906
69
45
-35
189
54
-117
236
15
-84
149
93
-76
132
51
-67
123
-34
-76
189
-37
-92
225
110
-124
434
10
-50
267
25
-66
359
214
-39
234
75
-47
-11,250
-2,604
-9,587
-2,150
-11,001
-547
-8,133
-1,880
-10,757
-1,241
-15,511
-1,100
-10,196
-285
-8,911
31
-9,161
-677
-13,079
-266
-18,492
-1,043
-14,658
-674
85,459
0
0
48,860
0
0
53,410
0
0
49,743
45,519
0
0
47,017
0
0
61,280
0
0
56,755
0
0
50,752
0
0
54,058
0
0
19,020
0
0
4,907
0
0
11,077
14,443
11,468
3,964
-6,343
-6,674
-10,609
7,333
-1,780
-7,711
-9,616
4,315
-1,311
-7,520
-13,762
12,751
4,471
1,662
4,656
3,867
2,135
4,407
4,006
1,930
7,392
4,032
2,143
4,465
21,001
12,067
21,431
12,881
23,290
10,665
1,993
5,995
1,407
2,526
7,132
863
-10,671
-1,605
-890
-1,726
-5,330
FUTURE AND FORWARD 5
By type of deliverable security
U.S. government securities
14 Bills
Coupon securities
15 Maturing in less than 3.5 years
16 Maturing in 3.5 to 7.5 years
17 Maturing in 7.5 to 15 years
18 Maturing in 15 years or more
Federal agency securities
Debt
19 Maturing in less than 3.5 years
20 Maturing in 3.5 to 7.5 years
21 Maturing in 7.5 years or more
Mortgage-backed
22 Pass-throughs
23 All others
Other money market instruments
24 Certificates of deposit
25 Commercial paper
26 Bankers' acceptances
0
0
Financing6
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Reverse repurchase agreements
Overnight and continuing
Term
Repurchase agreements
Overnight and continuing
Term
Securities borrowed
Overnight and continuing
Term
Securities lent
Overnight and continuing
Term
Collateralized loans
Overnight and continuing
Term
MEMO: Matched book7
Reverse repurchases
Overnight and continuing
Term
Repurchases
Overnight and continuing
Term
169,357
224,231
145,088
211,555
161,799
222,596
132,538
216,107
148,182
183,698
168,573
214,825
160,269
230,712
158,837
226,668
163,110
225,547
163,877
248,830
158,693
246,055
169,523
233,033
235,064
205,441
244,723
176,412
261,845
189,444
242,359
181,651
254,613
143,930
263,060
183,723
268,767
193,099
258,038
196,142
258,273
195,086
271,015
208,564
258,164
219,607
284,136
201,160
48,043
22,067
55,446
22,406
53,229
24,357
54,971
22,970
54,080
22,685
54,913
23,950
53,648
25,409
52,199
24,576
51,965
24,099
52,860
23,451
48,922
22,235
49,962
22,978
5,518
1,922
6,176
1,206
6,463
719
6,615
1,936
6,600
832
6,773
401
6,452
829
6,352
835
6,196
778
6,751
725
6,375
784
7,207
871
4,434
1,078
6,097
890
5,950
1,066
7,449
695
5,736
396
5,457
918
5,930
779
6,062
1,392
6,291
1,320
6,806
1,384
5,640
1,572
4,639
1,648
105,308
179,011
94,705
168,822
106,486
181,794
85,221
170,680
97,987
146,342
109,437
179,319
103,973
186,140
104,915
185,169
109,985
183,574
106,930
203,506
107,462
200,490
112,897
190,709
126,078
152,980
123,020
129,305
141,455
140,092
115,356
130,387
126,933
104,515
145,740
136,971
142,360
139,944
138,640
144,241
142,516
146,257
146,452
161,940
134,462
168,977
147,567
153,053
1. Data for positions and financing are obtained from reports submitted to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Weekly figures are close-of-business Wednesday data; monthly figures are averages of weekly data. Data for positions and
financing are averages of close-of-business Wednesday data.
2. Securities positions are reported at market value.
3. Net immediate positions include securities purchased or sold (other than
mortgage-backed agency securities) that have been delivered or are scheduled to
be delivered in five business days or less and "when-issued" securities settle on
the issue date of offering. Net immediate positions of mortgage-backed securities
include securities purchased or sold that have been delivered or are scheduled to
be delivered in thirty days or less.
4. Includes securities such as CMOs, REMICs, IOs, and POs.
5. Futures positions are standardized contracts arranged on an exchange.
Forward positions reflect agreements made in the over-the-counter market that
specify delayed delivery. All futures positions are included regardless of time to
delivery. Forward contracts for U.S. government securities and for federal
agency debt securities are included when the time to delivery is more than five
business days. Forward contracts for mortgage-backed securities are included
when the time to delivery is more than thirty days.
6. Overnight financing refers to agreements made on one business day that
mature on the next business day; continuing contracts are agreements that remain
in effect for more than one business day but have no specific maturity and can be
terminated without a requirement for advance notice by either party; term
agreements have a fixed maturity of more than one business day.
7. Matched-book data reflect financial intermediation activity in which the
borrowing and lending transactions are matched. Matched-book data are included
in the financing breakdowns listed above. The reverse repurchase and repurchase
numbers are not always equal due to the "matching" of securities of different
values or types of collateralization.
A32
1.44
DomesticNonfinancialStatistics • May 1991
F E D E R A L A N D F E D E R A L L Y SPONSORED CREDIT AGENCIES
Debt Outstanding
Millions of dollars, end of period
1990
1987
1986
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department1
Export-Import Bank2,3
4
Federal Housing Administration4
5
Government National Mortgage Association participation
6
certificates
Postal Service
7
8 Tennessee Valley Authority
United States Railway Association
9
10 Federally sponsored agencies7
Federal Home Loan Banks
11
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks8
15
Student Loan Marketing Association
16 Financing Corporation10
17 Farm Credit Financial Assistance Corporation
18 Resolution Funding Corporation
1988
1991
1989
Sept.
Oct.
Nov.
Dec.
Jan.
307,361
341,386
381,498
411,805
421,308
431,519
430,842
434,668
0
36,958
33
14,211
138
37,981
13
11,978
183
35,668
8
11,033
150
35,664
7
10,985
328
42,420
7
11,346
357
42,685
7
11,346
382
42,191
7
11,346
387
42,159
7
11,376
393
42,141
7
11,376
329
2,165
3,104
17,222
85
1,615
6,103
18,089
0
0
6,142
18,335
0
0
6,445
17,899
0
0
6,948
23,762
0
0
6,948
24,002
0
0
6,948
23,510
0
0
6,948
23,435
0
0
6,948
23,481
0
270,553
88,758
13,589
93,563
62,478
12,171
0
0
0
303,405
115,727
17,645
97,057
55,275
16,503
1,200
0
0
345,830
135,836
22,797
105,459
53,127
22,073
5,850
690
0
375,407
136,108
26,148
116,064
54,864
28,705
8,170
847
4,522
378,388
116,336
27,985
118,826
54,382
33,376
8,170
1,261
18,052
388,834
117,120
29,073
119,775
56,788
33,592
8,170
1,261
23,055
388,651
116,627
30,035
122,257
53,469
33,777
8,170
1,261
23,055
392,509
117,895
30,941
123,403
53,590
34,194
8,170
1,261
23,055
0
115,402
0
125,849
53,717
0
0
0
29,996
157,510
152,417
142,850
134,873
173,318
180,538
177,620
179,083
181,062
14,205
2,854
4,970
15,797
85
11,972
5,853
4,940
16,709
0
11,027
5,892
4,910
16,955
0
10,979
6,195
4,880
16,519
0
11,340
6,698
4,880
14,382
0
11,340
6,698
4,880
14,622
0
11,340
6,698
4,850
14,130
0
11,370
6,698
4,850
14,055
0
11,370
6,698
4,850
14,101
0
65,374
21,680
32,545
59,674
21,191
32,078
58,496
19,246
26,324
53,311
19,265
23,724
52,049
19,042
64,927
52,324
18,966
71,708
52,324
18,968
69,310
52,324
18,890
70,896
52,169
18,906
72,968
MEMO
19 Federal Financing Bank debt13
20
71
22
23
24
Lending to federal and federally sponsored
Export-Import Bank
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association
Other Lending14
25 Farmers Home Administration
76 Rural Electrification Administration
27
agencies
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
, 5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown in line 17.
9. Before late 1981, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 21.
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. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
14. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
Securities Market and Corporate Finance
1.45 NEW SECURITY ISSUES
A33
Tax-Exempt State and Local Governments
Millions of dollars
1991
1990
Type of issue or issuer,
or use
1988
1990'
1989
July
Aug.
Sept.
Oct.'
Nov.
Dec.
Jan.'
Feb.
114,522
113,646
120,339
8,513
10,899
13,930
8,512
9,961
12,250
7,230
10,156
Type of issue
2 General obligation
3 Revenue
30,312
84,210
35,774
77,873
39,610
81,295
2,624
5,889
3,400
7,499
3,763
10,167
3,530
4,982
3,024
6,937
3,536
8,714
2,343
4,887
4,838
5,318
Type of issuer
4 State
5 Special district and statutory authority
6 Municipalities, counties, and townships
8,830
74,409
31,193
11,819
71,022
30,805
15,149
72,661
32,510
%5
5,883
1,666
1,568
6,%2
2,369
2,317
8,188
3,425
1,470
4,512
2,530
1,337
5,879
2,745
1,3%
7,032
3,822
713
4,563
1,954
1,938
5,306
2,912
7 Issues for new capital, total
79,665
84,062
103,235
7,123
9,061
12,713
7,936
9,058
10,707
6,977
9,753
15,021
6,825
8,4%
19,027
5,624
24,672
15,133
6,870
11,427
16,703
5,036
28,894
17,042
11,650
11,739
23,099
6,117
34,607
1,413
683
694
1,741
509
2,083
1,345
540
1,002
2,554
700
2,919
1,472
920
687
3,995
674
4,%5
1,743
1,069
806
1,153
497
2,668
1,009
727
1,301
1,992
540
4,392
1,418
2,008
776
2,001
933
3,571
1,079
711
1,1%
891
607
2,393
1,409
43
1,816
803
602
5,080
1 All issues, new and refunding1
Use of
proceeds
9 Transportation
10 Utilities and conservation
11 Social welfare
13 Other purposes
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning 1986.
1.46 NEW SECURITY ISSUES
SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data/
Bond Buyer Municipal Data Base beginning 1986. Public Securities Association
for earlier data.
U.S. Corporations
Millions of dollars
1991
1990
Type of issue or issuer,
or use
1988
1989
1990
July
Aug.
Sept.
Oct.
Nov.
Dec.
1 All issues
410,707
376,435'
234,853'
29,157
19,966
13,758'
14,917
20,361
24,944'
20,879'
2 Bonds 2
352,906
318,564'
234,853
26,284
17,719
12,950'
14,491
19,399
23,709'
19, m r
Type of offering
3 Public, domestic
4 Private placement, domestic .
5. Sold abroad
202,028
127,700
23,178
181,084'
114,629
22,851
188,361'
n.a.
23,054'
22,823'
n.a.
3,461'
14,414
n.a.
3,305
11,754'
n.a.
1,1%
12,582
n.a.
1,909
17,534
n.a.
1,865
22,003
n.a.
1,706
18,414'
n.a.
676'
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
70,569
62,089
10,075
19,528
5,952
184,692
76,345
49,342'
10,105
17,059
8,503
157,213
38,168'
10,704
4,922'
13,788'
4,86C
138,979'
4,093'
3,135
1,001
2,561
411
15,084'
270
703
137
12,771'
854
234
489'
818
68
10,488
2,588'
138
533
928
268
10,036'
3,521'
548
230
7%
288
14,016'
12 Stocks2
57,802
57,870
2,873
2,247
Type
13 Preferred
14 Common
15 Private placement 3
6,544
35,911
15,346
6,194
26,030
25,647
3,998
19,443
n.a.'
310
2,563
n.a.
350
1,897
n.a.
7,608
8,449
1,535
1,898
515
37,798
9,308
7,446
1,929
3,090
1,904
34,028
n.a.
5,026
126
4,229
416
11,055
265
748
21
348
507
6
7
8
9
10
11
16
17
18
19
20
21
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures which represent gross proceeds of issues maturing in more than one
year, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.
2. Monthly data include only public offerings.
0
29
1,799
2,015'
1,822
0
173
0
862
6,582'
794
453
2,168
2,782'
980
351'
1,958'
1,393'
669'
13,042'
11,626'
426
962
1,235
1,789
145
663
n.a.
100
327
550
412
n.a.
265
970
n.a.
175
1,614
n.a.
125
251
71
139
172
60
194
7
297
154
42
0
0
462
0
110
0
0
0
39
0
218
215
400
574
5
288
6
1,327
46
3. Data are not available on a monthly basis. Before 1987, annual totals include
underwritten issues only.
SOURCES. IDD Information Services, Inc., the Board of Governors of the
Federal Reserve System, and before 1989, the U.S. Securities and Exchange
Commission.
A34
DomesticNonfinancialStatistics • May 1991
1.47 OPEN-END INVESTMENT COMPANIES
Net Sales and Asset Position
Millions of dollars
1990
Item
1989
1991
1990
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
INVESTMENT COMPANIES 1
1 Sales of own shares2
306,445
345,780
28,301
29,444
29,227
23,387
27,511
25,583
34,553
38,339
2 Redemptions of own shares3
3 Net sales
272,165
34,280
289,573
56,207
23,340
4,961
22,933
6,511
24,837
4,390
21,053
2,334
23,112
4,399
22,085
3,498
29,484
5,069
27,653
10,686
4 Assets4
553,871
570,744
582,190
586,526
554,722
535,787
538,306
557,676
570,744
593,096
5 Cash position5
6 Other
44,780
509,091
48,638
522,106
49,861
532,329
48,944
537,582
51,103
503,619
51,128
484,659
51,847
486,459
52,829
504,847
48,638
522,106
54,825
538,271
4. Market value at end of period, less current liabilities.
5. Also includes all U.S. government securities and other short-term debt
securities.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
1. Data on sales and redemptions exclude money market mutual funds but
include limited maturity municipal bond funds. Data on asset positions exclude
both money market mutual funds and limited maturity municipal bond funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund
to another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1988
Account
1988
1989
1989
1990
1990
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2
3
4
5
6
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
337.6
316.7
136.2
180.5
110.0
70.5
311.6
307.7
135.1
172.6
123.5
49.1
298.7
307.4
135.0
172.4
133.9
38.6
349.6
331.1
142.1
189.1
115.3
73.8
327.3
335.1
148.3
186.7
119.1
67.6
321.4
314.6
140.8
173.8
122.1
51.7
306.7
291.4
127.8
163.6
125.0
38.6
290.9
289.8
123.5
166.3
127.7
38.6
296.8
296.9
129.9
167.1
130.3
36.8
306.6
299.3
133.1
166.1
133.0
33.2
300.7
318.5
139.1
179.4
135.1
44.3
7 Inventory valuation
8 Capital consumption adjustment
-27.0
47.8
-21.7
25.5
-13.6
4.9
-22.5
40.9
-43.0
35.2
-23.1
29.9
-6.1
21.4
-14.5
15.6
-11.4
11.3
-.5
7.7
-19.8
2.0
SOURCE. Survey of Current Business (Department of Commerce).
1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1989
Industry
1989
1990
1990
1991
1991
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Ql
1 Total nonfarm business
507.40
533.91
546.67
502.05
514.95
519.58
532.45
535.49
534.86
532.84
557.92
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
82.56
101.24
83.70
108.60
83.01
110.57
82.44
98.47
83.60
102.40
83.41
108.47
86.35
105.02
84.34
110.82
82.67
111.81
81.42
106.74
82.79
108.28
9.21
9.81
9.38
9.24
9.24
9.38
9.58
9.84
9.98
9.84
10.24
6.26
6.73
5.85
6.30
9.02
6.14
6.62
10.82
6.35
5.81
6.84
5.78
6.36
8.89
5.78
6.80
5.75
5.69
6.45
9.35
6.33
6.66
9.36
5.84
5.60
10.05
5.76
6.48
7.31
6.63
6.22
11.03
6.51
44.81
21.47
229.28
43.99
22.97
243.39
45.72
22.16
252.04
46.37
21.72
225.39
44.44
20.75
233.50
44.66
21.15
234.25
43.37
22.34
243.66
42.62
21.65
244.37
43.63
23.85
241.51
46.34
24.05
244.02
47.33
24.43
261.08
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other2
•Trade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
Domestic Finance Companies
A35
Assets and Liabilities1
1.51 DOMESTIC FINANCE COMPANIES
Billions of dollars, end of period
1990
1989
1985
Account
1987
1986
Ql
Q2
Q3
Q4
Ql
Q2
Q3
ASSETS
Accounts receivable, gross2
111.9
157.5
28.0
297.4
134.7
173.4
32.6
340.6
141.1
207.4
39.5
388.1
139.1
243.3
45.1
427.5
143.9
250.9
47.1
441.9
146.3
246.8
48.7
441.8
140.8
256.0
48.9
445.8
137.9
262.9
52.1
452.8
138.6
274.8
55.4
468.8
140.9
275.4
57.7
474.0
ft
39.2
4.9
41.5
5.8
45.3
6.8
51.0
7.4
52.2
7.5
52.9
7.7
52.0
7.7
51.9
7.9
54.3
8.2
55.1
8.6
7
8
253.3
45.3
293.3
58.6
336.0
58.3
369.2
75.1
382.2
81.4
381.3
85.2
386.1
91.6
393.0
92.5
406.3
95.5
410.3
102.8
298.6
351.9
394.2
444.3
463.6
466.4
477.6
485.5
501.9
513.1
18.0
99.2
18.6
117.8
16.4
128.4
11.3
147.8
12.1
149.0
12.2
147.2
14.5
149.5
13.9
152.9
15.8
152.4
15.6
148.6
n.a.
n.a.
59.8
140.5
63.5
38.8
n.a.
n.a.
60.3
145.1
61.8
39.8
n.a.
n.a.
63.8
147.8
62.6
39.4
n.a.
n.a.
70.5
145.7
61.7
40.7
n.a.
n.a.
72.8
153.0
66.1
41.8
n.a.
n.a.
82.0
156.6
68.7
41.6
463.6
466.4
477.6
485.5
501.9
513.1
1
4
Less:
S
9
LIABILITIES
10
11
Debt
13
14
15
16
17
12.7
94.4
17.5
117.5
28.0
137.1
n.a.
41.5
32.8
44.1
36.4
52.8
31.5
n.a.
n.a.
56.9
133.6
58.1
36.6
18
298.6
351.9
394.2
444.3
P
1. Components may not sum to totals because of rounding.
1.52 DOMESTIC FINANCE COMPANIES
2. Excludes pools of securitized assets.
Business Credit Outstanding and Net Change1
Millions of dollars, seasonally adjusted
1991
1990
Type
1
?
3
4
5
6
7
8
Retail financing of installment sales
Equipment
Pools of securitized assets2
All other
Pools of securitized assets
Leasing
9
10
11 Pools of securitized assets2
1? Loans on commercial accounts receivable and factored
commercial accounts receivable
13 All other business credit
1988
1989
199C
Aug.
Sept.
Oct.
Nov.
Dec/
Jan.
234,578
258,504
292,117
283,043
285,654
287,921
287,819
292,117
294,133
36,957
28,199
n.a.
39,139
29,674
698
37,756
31,867
951
38,610
30,707
987
38,470
30,607
946
39,150
30,487
902
38,600
30,729
927
37,756
31,867
951
38,062
31,984
911
32,357
5,954
9,312
n.a.
33,074
6,8%
9,918
0
31,385
11,504
9,043
2,950
34,429
9,812
9,707
650
37,082
9,791
9,597
863
35,258
10,698
9,477
679
33,111
10,847
9,447
649
31,385
11,504
9,043
2,950
32,467
11,543
9,381
2,836
24,875
57,658
n.a.
27,074
68,112
1,247
39,622
75,240
1,849
30,942
78,714
1,703
30,453
79,158
1,655
31,303
80,833
1,724
31,601
81,427
1,884
39,622
75,240
1,849
39,303
76,576
1,854
18,103
21,162
19,081
23,590
23,231
26,720
19,974
26,809
20,538
26,495
20,740
26,670
21,652
26,944
23,231
26,720
22,130
27,086
Net change (during period)
14
Retail financing of installment sales
15
16
17
2
Pools of securitized assets
Wholesale
Automotive
Equipment
All other
Pools of securitized assets2
Leasing
?? Automotive
?3
24 Pools of securitized assets
?5 Loans on commercial accounts receivable and factored
commercial accounts receivable
26 All other business credit
18
19
70
21
22,434
22,580
31,396
5,427
2,611
2,267
-101
4,298
2,015
819
1,386
n.a.
2,182
1,475
-26
-1,383
2,195
253
-321
84
187
-141
-100
-41
680
-120
-44
-549
243
25
-844
1,138
24
306
118
-40
2,288
377
983
n.a.
716
940
605
0
-1,689
2,389
-874
2,950
1,271
-118
-16
650
2,653
-21
-110
213
-1,823
907
-120
-184
-2,147
149
-29
-30
-1,727
657
-404
2,301
1,083
39
338
-114
2,777
9,752
n.a.
2,201
9,187
526
12,548
7,128
602
731
2,398
-57
-488
444
-48
850
1,675
69
298
594
160
8,021
-6,188
-35
-319
1,337
5
-65
4,119
979
3,7%
4,149
3,131
-103
721
564
-314
202
175
912
273
1,579
-223
-1,101
366
1. These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
2. Data on pools of securitized assets are not seasonally adjusted,
A36
1.53
DomesticNonfinancialStatistics • May 1991
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1990
Item
1988
1989
1991
1990
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)
Contract rate (percent per year)
Yield (percent per year)
7 OTS series3
8 HUD series4
150.0
110.5
75.5
28.0
2.19
8.81
159.6
117.0
74.5
28.1
2.06
9.76
153.2
112.4
74.8
27.3
1.93
9.68
161.5
118.3
74.5
27.2
2.07
9.75
156.6
114.8
74.7
27.2
1.78
9.60
146.1
105.1
73.5
26.9
1.80
9.68
151.5
111.2
75.0
27.1
1.68
9.61
156.3
115.4
74.9
28.6
1.85
9.45
148.3
112.3
77.2
28.1
1.75
9.36
153.2
113.8
76.3
28.3
1.73
9.28
9.18
10.30
10.11
10.21
10.01
10.08
10.11
10.12
9.90
10.18
9.98
10.11
9.90
9.86
9.76
9.66
9.65
9.53
9.57
9.49
10.49
9.83
10.24
9.71
10.17
9.51
10.28
9.59
10.24
9.65
10.23
9.66
9.81
9.46
9.66
9.08
9.58
8.87
9.57
8.66
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (HUD series)5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
Mortgage transactions (during period)
14 Purchases
Mortgage
commitments1
15 Issued (during period)
16 To sell (during period)9
101,329
19,762
81,567
104,974
19,640
85,335
113,329
21,028
92,302
113,507
21,101
92,406
113,718
21,364
92,354
114,216
21,495
92,721
115,085
21,530
93,555
116,628
21,751
94,877
117,445
21,854
95,591
118,284
21,947
96,337
23,110
22,518
23,959
2,134
2,123
2,077
2,078
2,410
1,781
1,792
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2,302
761
2,073
644
1,849
92
2,426
0
2,104
0
1,889
2r
1,779
0
21,301
524
20,777
21,857
518
21,339
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10,637
9,918'
n.a.
4,507
n.a.
4,465
12,938
n.a.
n.a.
FEDERAL H O M E LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period)9
17 Total
18 FHA/VA
19 Conventional
15,105
620
14,485
20,105
590
19,516
20,419
547
19,871
20,564
541
20,023
20,508
536
19,972
20,790
530
20,260
Mortgage transactions (during period)
20 Purchases
21 Sales
44,077
39,780
78,588
73,446
75,517
73,817''
5,417
4,808
5,798
5,707
6,118
5,734
Mortgage
commitments10
22 Contracted (during period)
66,026
88,519
5,646
6,643
10,972
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at
the end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month. Large
monthly movements in average yields may reflect market adjustments to changes
in maximum permissable contract rates.
6. Average net yields to investors on Government National Mortgage Asso-
102,401
6,981
6,314'
10,164
ciation guaranteed, mortgage-backed, fully modified pass-through securities,
assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages
carrying the prevailing ceiling rate. Monthly figures are averages of Friday figures
from the Wall Street Journal.
1. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the FNMA-GNMA tandem plans.
8. Does not include standby commitments issued, but includes standby
commitments converted.
9. Includes participation as well as whole loans.
10. Includes conventional and government-underwritten loans. FHLMC's
mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for FNMA exclude swap
activity.
Real Estate
A37
1.54 MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1990
Type of holder, and type of property
Q4
Q1
Q2
Q3'
1 All holders
3,265,352'
3,552,716'
3,858,580
3,552,716'
3,693,622'
3,757,289'
3,813,083
2
3
4
5
2,184,449'
290,651'
704,970'
85,282'
2,408,575'
302,537'
757,538'
84,066'
2,690,678
300,173
783,498
84,231
2,408,575'
302,537'
757,538'
84,066'
2,530,708'
304,758'
774,253'
83,903'
2,593,951'
300,644'
778,694'
84,000'
2,643,112
301,756
783,916
84,299
1,826,706'
669,237
317,585
33,158
302,989
15,505
1,927,883'
763,415
368,518
37,996
340,204
16,697
1,918,662
841,814
427,740
36,180
360,243
17,651
1,927,883'
763,415
368,518
37,996
340,204
16,697
1,935,745'
783,542'
381,221'
36,833'
348,676'
16,812'
1,937,175'
811,407'
405,545'
37,274'
351,412'
17,176'
1,930,841
828,178
418,225
36,737
355,843
17,373
924,606
671,722
110,775
141,433
676
232,863'
11,164'
24,56c
187,549'
9,590'
37,846
910,254
669,220
106,014
134,370
650
254,214'
12,231'
26,907'
205,472'
9,604'
45,476
809,829
610,809
91,789
106,708
524
267,018
12,837
28,171
215,121
10,890
48,777
910,254
669,220
106,014
134,370
650
254,214'
12,231'
26,907'
205,472'
9,604'
45,476
891,921
658,405
103,841
129,056
619
260,282'
12,525'
27,555'
210,422'
9,780'
45,808
860,903'
642,110'
97,359'
120,866'
568'
264,865'
12,740'
28,027'
214,024'
10,075'
47,104
836,600
626,789
94,714
114,567
530
266,063
12,773
23 Federal and related agencies
24
Government National Mortgage Association..
25
1- to 4-family
26
Multifamily
27
Farmers Home Administration
28
1- to 4-family
29
Multifamily
30
Commercial
31
Farm
200,570
26
26
209,498
23
23
247,693
21
21
209,498
23
23
216,146
22
22
227,818'
21
242,695
21
21
42,018
18,347
8,513
5,343
9,815
41,176
18,422
9,054
4,443
9,257
41.324
18,494
9,623
4,671
8,536
41,176
18,422
9,054
4,443
9,257
41,125
18,419
9,199
4,510
8,997
41,175
18,434
9,361
4,545
8,835
41,269
18,476
9,477
4,608
32
33
34
35
36
37
38
39
40
41
42
43
5,973
2,672
3,301
103,013
95,833
7,180
32,115
1,890
30,225
17,425
15,077
2,348
6,087
2,875
3,212
110,721
102,295
8,426
29,640
8,570
3,362
5,208
115,508
104,900
6,087
2,875
3,212
110,721
102,295
8,426
29,640
1,210
28,430
21,851
18,248
3,603
6,355
3,027
3,328
112,353
103,300
9,053
29,325
1,197
19,823
16,772
3,051
6,792
3,054
3,738
112,855
103,431
9,424
29,595
1,741
27,854
19,979
17,316
2,663
7,938
3,248
4,690
113,718
103,722
9,996
29,441
1,766
27,675
20,508
17,810
2,697
44 Mortgage pools or trusts 6
45
Government National Mortgage Association..
46
1- to 4-family
47
Multifamily
48
Federal Home Loan Mortgage Corporation . .
49
1- to 4-family
50
Multifamily
51
Federal National Mortgage Association
52
1- to 4-family
53
Multifamily
54
Farmers Home Administration
55
1- to 4-family
56
Multifamily
57
Commercial
58
Farm
811,847'
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
946,766'
368,367
358,142
10,225
272,870
266,060
6,810
228,232
219,577
8,655
80
21
1,101,589
404,076
393,656
10,419
309,486
301,450
8,036
303,880
295,438
8,442
68
17
946,766'
368,367
358,142
10,225
272,870
266,060
6,810
228,232
219,577
8,655
80
21
984,811'
376,962
366,300
10,662
281,736
274,084
7,652
246,391
237,916
8,475
76
20
1,024,893'
385,456
374,960
10,496
295,340
287,232
8,108
263,330
254,811
8,519
72
19
1,060,640
394,859
384,474
10,385
301,797
293,721
8,077
38
40
26
33
24
27
26
33
25
31
24
30
24
29
59 Individuals and others 7
60
1- to 4-family
61
Multifamily
62
Commercial
63
Farm
426,229'
259,971'
79,209'
67,618'
19,431'
590,637
402,385
80,978
87,995
19,278
468,569'
294,517'
81,634'
73,023'
19,395'
567,403'
382,343'
82,040'
83,557'
19,463'
578,908
393,027
80,636
85,865
19,379
1- to 4-family
Multifamily
Commercial
Farm
6 Selected financial institutions
7
Commercial banks
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12
13
14
15
16
17
18
19
20
21
22
3
Savings institutions
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
.
Finance companies
Federal Housing and Veterans Administration
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation . .
1- to 4-family
Multifamily
0
0
1. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers
to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLIC-insured institutions include loans in process and other
contra assets (credit balance accounts that must be subtracted from the corresponding gross asset categories to yield net asset levels).
4. Assumed to be entirely 1- to 4-family loans.
0
0
10,608
29,145
1,210
1,820
28,430
21,851
18,248
3,603
27.325
20,525
17,870
2,655
0
468,569'
294,517'
81,634'
73,023'
19,395'
0
0
0
0
28,128
0
556,92C
374,143'
83,666'
79,576'
19,536'
21
0
0
28,100
214,585
10,605
49,784
0
281,806
273,335
8,471
70
18
0
5. Farmers Home Administration-guaranteed securities sold to the Federal
Financing Bank were reallocated from FmHA mortgage pools to FmHA mortgage
holdings in 1986:4, because of accounting changes by the Farmers Home
Administration.
6. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated. Includes private pools which are not
shown as a separate line item.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.
A38
DomesticNonfinancialStatistics • May 1991
1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars, amounts outstanding, end of period
1991
1990
Holder, and type of credit
1989
1990r
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec/
Jan.
Seasonally adjusted
1 Total
716,624
739,014
724,485
724,601
729,329
732,385
735,222
736,595
739,357
739,014
736,572
2
3
4
5
290,770
197,110
22,343
206,401
285,336
218,235
21,816
213,628
288,931
207,153
22,815
205,585
287,168
208,362
22,733
206,338
286,791
212,138
22,795
207,605
285,283
214,492
22,976
209,635
285,261
216,804
22,672
210,484
284,402
218,381
22,491
211,320
284,483
219,757
22,518
212,599
285,336
218,235
21,816
213,628
283,383
219,502
22,684
211,002
Automobile
Revolving
Mobile home
Other
Not seasonally adjusted
6 Total
727,561
750,941
720,045
722,953
727,196
734,511
737,260
737,252
740,346
750,941
740,420
By major holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings institutions
Gasoline companies
Pools of securitized assets 2 ..
343,865
140,832
90,875
42,638
57,228
3,935
48,188
351,695
136,154
91,203
42,111
49,594
4,747
75,437
339,328
138,384
89,913
37,347
53,301
4,024
57,748
335,998
138,642
90,137
37,382
52,902
4,192
63,700
339,124
138,7%
90,631
36,804
52,503
4,3%
64,942
342,987
139,4%
91,306
37,231
52,399
4,722
66,370
344,941
140,890
91,311
36,682
51,358
4,723
67,355
344,875
141,329
91,406
36,047
50,787
4,718
68,090
346,128
139,195
91,174
37,470
50,310
4,701
71,368
351,695
136,154
91,203
42,111
49,594
4,747
75,437
345,070
134,739
90,287
39,828
49,117
4,748
76,631
By mqjor type of credit3
14 Automobile
15 Commercial banks
16 Finance companies
17 Pools of securitized assets 2
290,421
126,613
82,721
18,191
284,908
126,117
74,397
24,198
287,140
127,056
78,927
20,151
287,254
126,988
78,273
21,043
287,479
126,986
77,716
21,692
288,221
128,079
77,205
21,562
289,255
128,937
78,116
21,239
287,730
128,133
78,033
20,786
285,877
127,039
75,224
23,159
284,908
126,117
74,397
24,198
281,541
124,486
72,015
25,513
18 Revolving
19 Commercial banks
20
Retailers
21
Gasoline companies
22
Pools of securitized assets 2
208,188
130,956
37,967
3,935
22,977
230,456
133,295
37,535
4,747
43,887
204,854
125,433
32,857
4,024
30,913
206,820
122,116
32,884
4,192
36,076
209,582
124,569
32,325
4,3%
36,786
213,119
125,967
32,735
4,722
38,194
214,853
126,995
32,212
4,723
39,606
216,285
127,950
31,601
4,718
40,798
219,713
129,111
32,993
4,701
41,797
230,456
133,295
37,535
4,747
43,887
224,046
128,817
35,330
4,748
44,302
22,283
9,155
4,716
21,757
9,934
3,956
22,610
9,295
5,224
22,644
9,2%
5,266
22,873
9,443
5,328
23,033
9,541
5,358
22,815
9,3%
5,423
22,720
9,363
5,400
22,646
9,351
5,364
21,757
9,934
3,956
22,818
9,838
5,141
206,669
77,141
53,395
4,671
7,020
213,820
82,349
57,801
4,576
7,352
205,441
77,544
54,233
4,490
6,684
206,235
77,598
55,103
4,498
6,581
207,252
78,126
55,752
4,479
6,464
210,138
79,400
56,933
4,4%
6,614
210,337
79,613
57,351
4,470
6,510
210,517
79,429
57,8%
4,446
6,506
212,110
80,627
58,607
4,477
6,412
213,820
82,349
57,801
4,576
7,352
212,015
81,929
57,583
4,498
6,816
7
8
9
10
11
12
13
23 Mobile home
24 Commercial banks
25
Finance companies
26 Other
27
Commercial banks
28
Finance companies
29
Retailers
30
Pools of securitized assets 2
1. The Board's series cover most short- and intermediate-term credit extended
to individuals that is scheduled to be repaid (or has the option of repayment) in
two or more installments.
These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.
Consumer Installment Credit
A39
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent unless noted otherwise
1990
Item
1988
1989
1991
1990
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
INTEREST RATES
1
2
3
4
5
6
Commercial banks2
48-month new c a r
24-month personal
120-month mobile home
Credit card
Auto finance companies
New car
Used car
10.85
14.68
13.54
17.78
12.07
15.44
14.11
18.02
11.78
15.46
14.02
18.17
n.a.
n.a.
n.a.
n.a.
11.89
15.46
14.09
18.18
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
11.62
15.69
13.99
18.23
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
12.60
15.11
12.62
16.18
12.54
15.99
12.68
15.96
12.62
15.98
12.34
16.03
12.57
16.12
12.74
16.07
12.86
16.04
12.99
15.70
56.2
46.7
54.2
46.6
54.6
46.1
54.9
46.2
54.8
46.2
54.3
46.1
54.6
46.1
54.6
46.0
54.7
45.8
54.9
47.4
94
98
91
97
87
95
86
96
86
96
85
95
85
95
85
95
85
94
88
96
11,663
7,824
12,001
7,954
12,071
8,289
12,125
8,401
11,939
8,415
11,837
8,403
11,917
8,423
11,986
8,494
12,140
8,530
12,229
8,600
O T H E R TERMS 4
7
8
9
10
11
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
1. These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. Data for midmonth of quarter only.
3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies.
A40
1.57
DomesticNonfinancialStatistics • May 1991
F U N D S R A I S E D I N U . S . CREDIT M A R K E T S
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1989
Transaction category, sector
1986
1987
1988
1989
1990
1990
Q2
Q3
Q4
Ql r
Q2'
Q3'
Q4
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors..
836.9
687.0
760.8
678.2
662.1
666.8
678.8
620.2
788.6
611.8
687.2
561.0
By sector and instrument
2 U.S. government
3 Treasury securities
4
Agency issues and mortgages
215.0
214.7
.4
144.9
143.4
1.5
157.5
140.0
17.4
151.6
150.0
1.6
272.5
264.4
8.2
100.1
95.0
5.1
173.9
166.8
7.1
185.0
189.6
-4.6
247.3
217.8
29.6
228.2
222.9
5.4
286.1
287.5
-1.3
328.4
329.4
-1.0
5 Private domestic nonfinancial sectors
6 Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
621.9
465.8
22.7
126.8
316.3
218.7
33.5
73.6
-9.5
542.1
453.2
49.3
79.4
324.5
234.9
24.4
71.6
-6.4
603.3
459.2
49.8
102.9
306.5
231.0
16.7
60.8
-2.1
526.6
379.8
30.4
73.7
275.7
218.0
16.4
42.7
-1.5
389.6
309.6
19.4
61.5
228.7
214.4
-.7
14.8
.2
566.7
390.1
28.7
86.5
275.0
211.3
21.4
41.5
.9
504.9
369.2
34.1
62.7
272.4
221.0
11.8
40.9
-1.3
435.2
347.0
19.1
87.4
240.5
214.3
9.5
19.9
-3.2
541.3
393.7
13.0
45.2
335.6
272.8
22.1
40.1
.5
383.6
318.9
24.7
75.2
218.9
228.2
-18.2
10.9
-1.9
401.0
282.8
29.8
46.0
207.0
179.3
3.1
22.7
1.9
232.6
243.0
10.1
79.6
153.3
177.4
-9.7
-14.6
.2
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
156.1
58.0
66.9
-9.3
40.5
88.9
33.5
10.0
2.3
43.2
144.1
50.2
39.8
11.9
42.2
146.8
39.1
39.9
20.4
47.4
80.0
18.4
-3.0
9.7
54.9
176.5
36.9
45.1
39.5
55.0
135.6
37.1
50.8
16.9
30.9
88.2
44.1
7.7
-6.9
43.3
147.6
14.9
18.7
69.6
44.3
64.7
10.5
6.5
-6.2
53.9
118.2
26.6
5.6
17.3
68.7
-10.4
21.6
-43.0
-41.7
52.6
19
20
21
22
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
621.9
36.2
293.0
292.7
-16.3
99.2
209.7
542.1
48.8
302.2
191.0
-10.6
77.9
123.7
603.3
45.6
314.9
242.8
-7.5
65.7
184.6
526.6
29.6
285.0
211.9
1.6
50.8
159.5
389.6
14.6
260.1
114.9
3.0
14.3
97.6
566.7
33.3
264.0
269.4
-5.0
56.9
217.4
504.9
28.6
290.8
185.4
-2.1
40.2
147.3
435.2
16.5
291.8
126.9
8.9
35.0
83.1
541.3
8.9
335.0
197.4
6.3
44.4
146.8
383.6
17.7
269.7
96.2
-4.8
5.2
95.8
401.0
28.7
246.8
125.6
5.2
22.3
98.1
232.6
3.1
189.0
40.4
5.1
-14.5
49.8
26 Foreign net borrowing in United States
27
Bonds
28
Bank loans n.e.c
29
Open market paper
30
U.S. government loans
9.7
3.1
-1.0
11.5
-3.9
4.5
7.4
-3.6
2.1
-1.4
6.3
6.9
-1.8
8.7
-7.5
10.9
5.3
-.1
13.3
-7.5
23.3
21.1
-2.8
12.3
-7.4
-6.9
11.5
-3.2
-6.6
-8.7
30.4
8.1
3.7
20.7
-2.1
16.9
-1.0
-4.3
22.2
.1
-3.5
28.1
-6.7
-16.4
-8.5
42.5
27.4
-2.0
23.1
-6.1
32.9
3.2
1.9
27.3
.5
21.2
25.7
-4.3
15.3
-15.5
31 Total domestic plus foreign
846.6
691.5
767.1
689.1
685.4
659.9
709.2
637.1
785.1
654.3
720.1
582.2
Financial sectors
32 Total net borrowing by financial sectors
285.1
300.2
247.6
205.5
199.4
154.1
123.9
187.3
198.6
172.6
170.9
255.4
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
154.1
15.2
139.2
-.4
171.8
30.2
142.3
-.8
119.8
44.9
74.9
.0
151.0
25.2
125.8
.0
170.6
22.6
148.0
.0
128.8
22.5
106.3
.0
124.8
13.2
111.6
.0
156.4
-4.7
161.1
.0
176.2
14.3
162.0
.0
183.8
17.0
166.8
.0
137.5
20.6
116.9
.0
184.8
38.8
146.1
.0
131.0
82.9
.1
4.0
24.2
19.8
128.4
78.9
.4
-3.2
27.9
24.4
127.8
51.7
.3
1.4
54.8
19.7
54.5
36.8
.0
1.8
26.9
-11.0
28.8
44.1
.7
.7
8.0
-24.7
25.3
28.5
.0
-.1
10.1
-13.1
-.9
26.7
.3
2.0
11.0
-41.0
30.9
39.6
-.4
4.2
36.3
-48.8
22.3
37.7
-.7
-2.2
9.5
-22.0
-11.3
64.0
.8
-.6
-44.6
-30.9
33.5
22.3
2.6
1.9
37.2
-30.5
70.5
52.4
.0
3.8
29.8
-15.5
43
285.1
300.2
247.6
205.5
199.4
154.1
123.9
187.3
198.6
172.6
170.9
255.4
44
45
46
47
48
49
50
51
52
53
14.9
139.2
131.0
-3.6
15.2
20.9
4.2
54.7
.8
39.0
29.5
142.3
128.4
6.2
14.3
19.6
8.1
40.8
.3
39.1
44.9
74.9
127.8
-3.0
5.2
19.9
1.9
67.7
3.5
32.5
25.2
125.8
54.5
-1.4
6.2
-14.1
-1.4
46.3
-1.9
20.8
22.6
148.0
28.8
-1.1
-27.7
-32.4
-.1
50.9
-.3
39.5
22.5
106.3
25.3
2.5
2.9
-16.3
.0
40.4
-2.8
-1.4
13.2
111.6
-.9
3.5
16.5
-44.7
-2.3
23.5
-3.1
5.7
-4.7
161.1
30.9
-.7
-3.9
-56.2
.7
52.6
.1
38.2
14.3
162.0
22.3
-4.9
-10.0
-15.8
-8.3
27.1
-.5
34.7
17.0
166.8
-11.3
-7.9
-32.2
-53.5
6.5
27.5
-2.0
50.3
20.6
116.9
33.5
-12.5
-40.2
-36.5
.3
91.3
1.3
29.7
38.8
146.1
70.5
21.0
-28.5
-24.0
1.1
57.8
-.1
43.3
33
34
35
36
37 Private financial sectors
38
Corporate bonds
39
Mortgages
40
Bank loans n.e.c
41
Open market paper
42
Loans from Federal Home Loan Banks
By sector
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Mutual savings banks
Finance companies
REITs
SCO Issuers
Flow of Funds
A41
1.57—Continued
1989
Transaction category, sector
1986
1987
1988
1989
1990
1990
Q2
Q3
Q4
Ql r
Q2'
Q3r
Q4
All sectors
54 Total net borrowing
55
56
57
58
59
60
61
62
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
63 MEMO: U.S. government, cash balance
Totals net of changes in U.S. government cash balances
64 Net borrowing by domestic nonfinancial
65 Net borrowing by U.S. government
884.8
814.0
833.0
824.4
983.7
826.8
891.0
837.5
302.6
30.4
115.8
275.7
39.1
41.5
60.6
28.9
443.1
19.4
126.7
229.4
18.4
-5.1
30.0
22.8
228.9
28.7
126.5
275.0
36.9
41.9
42.9
33.2
298.7
34.1
97.6
272.7
37.1
56.5
48.5
-12.2
341.4
19.1
125.9
240.1
44.1
7.5
51.6
-5.4
423.6
13.0
111.0
334.9
14.9
9.8
62.6
13.9
412.1
24.7
166.6
219.7
10.5
4.0
-27.7
17.0
423.6
29.8
71.4
209.5
26.6
9.4
81.9
38.8
513.3
10.1
157.7
153.4
21.6
-43.5
3.3
21.6
10.4
-5.9
8.6
20.7
-22.7
-7.3
22.9
-38.1
21.1
28.3
750.4
147.1
684.1
157.5
653.6
264.0
646.1
79.4
701.6
196.7
627.6
192.4
765.7
224.4
649.9
266.3
666.1
265.1
532.6
300.1
1,131.7
991.7
369.5
22.7
212.8
316.4
58.0
69.9
26.4
56.1
317.5
49.3
165.7
324.9
33.5
3.2
32.3
65.5
277.2
49.8
161.5
306.7
50.2
39.4
75.4
54.4
.0
-7.9
836.9
215.0
694.9
152.8
1,014.7
894.5
External corporate equity funds raised in United States
66 Total net share issues
67
68
69
70
71
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
86.8
10.9
-124.2
-63.7
17.2
-43.0
-61.0
14.9
-4.7
51.3
-9.6
31.7
159.0
-72.2
73.9
-63.0
-75.5
14.6
-2.1
1.1
-125.3
-129.5
3.3
.9
41.3
-105.1
-124.2
2.4
16.7
66.9
-49.7
-63.0
6.1
7.2
34.0
-77.0
-98.7
4.3
17.4
57.9
-118.9
-146.3
-.1
27.5
72.4
-57.6
-79.3
4.5
17.2
53.1
-57.8
-69.0
10.0
1.3
76.5
-25.2
-48.0
.3
22.5
51.7
-61.3
-74.0
12.6
.1
86.2
-54.4
-61.0
1.5
5.1
11.6
1.2
A42
1.58
DomesticNonfinancialStatistics • May 1991
D I R E C T A N D I N D I R E C T S O U R C E S O F F U N D S TO C R E D I T M A R K E T S
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1989
Transaction category, or sector
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
2
3
4
5
6
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to thrifts
Other loans and securities
1986
1987
1989
1988
1990
1990
Q2
Q3
Q4
Ql'
Q2'
Q3r
Q4
836.9
687.0
760.8
678.2
662.1
666.8
678.8
620.2
788.6
611.8
687.2
561.0
280.2
69.4
136.3
19.8
54.7
248.8
70.1
139.1
24.4
15.1
210.7
85.2
86.3
19.7
19.4
187.6
30.7
137.9
-11.0
30.0
278.7
15.5
79.9 -103.3
179.0
119.7
-24.7
-13.1
44.5
12.1
218.3
115.7
127.7
-41.0
15.8
203.8
27.1
178.3
-48.8
47.1
234.4
17.3
182.2
-22.0
56.8
314.3
97.1
206.7
-30.9
41.3
316.1
134.9
160.8
-30.5
50.9
249.9
70.2
166.3
-15.5
28.9
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency and foreign borrowing not in line 1
11
Sponsored credit agencies and mortgage pools
12 Foreign
9.7
153.3
19.4
97.8
-7.9
169.3
24.7
62.7
-9.4
112.0
10.5
97.6
-2.4
125.3
-7.3
72.1
34.0
170.1
8.1
66.4
-6.0
28.0
-1.6
-4.9
-9.3
126.4
-31.2
132.4
5.7
158.4
-4.6
44.2
33.5
184.2
-6.3
22.9
41.3
166.3
40.4
66.4
59.1
155.6
24.4
77.0
2.0
174.4
-25.9
99.4
154.1
9.7
171.8
4.5
119.8
6.3
151.0
10.9
170.6
23.3
128.8
-6.9
124.8
30.4
156.4
16.9
176.2
-3.5
183.8
42.5
137.5
32.9
184.8
21.2
Private domestic funds advanced
13 Total net advances
14 U.S. government securities
15
State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
720.5
300.1
22.7
89.7
115.9
212.0
19.8
614.5
247.4
49.3
66.9
120.2
155.2
24.4
676.2
192.1
49.8
91.3
161.3
201.4
19.7
652.5
271.9
30.4
66.1
96.5
176.6
-11.0
577.3
363.2
19.4
67.7
34.8
67.6
-24.7
773.3
332.2
28.7
91.1
113.0
195.2
-13.1
615.7
183.0
34.1
65.6
105.1
186.9
-41.0
589.7
314.3
19.1
70.6
45.5
91.5
-48.8
727.0
406.2
13.0
57.0
112.7
116.1
-22.0
523.8
314.9
24.7
81.7
3.3
68.3
-30.9
541.5
288.8
29.8
47.2
21.6
123.6
-30.5
517.1
443.0
10.1
84.8
1.5
-37.7
-15.5
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
21
Commercial banking
22
Savings institutions
23
Insurance and pension funds
24
Other finance
730.0
198.1
107.6
160.1
264.2
528.4
135.4
136.8
179.7
76.6
562.3
156.3
120.4
198.7
86.9
511.1
394.1
177.3
119.9
-90.9 -141.0
177.9
226.1
246.8
189.1
345.9
623.4
600.9
183.7
160.9
184.3
-42.3 -135.8 -201.9
136.1
205.1
188.1
294.2
161.9
436.0
379.9
188.1
-56.6
168.8
79.5
25 Sources of funds
26
Private domestic deposits and RPs
27
Credit market borrowing
28
Other sources
29
Foreign funds
30
Treasury balances
31
Insurance and pension reserves
32
Other, net
730.0
277.1
131.0
321.8
12.9
1.7
119.9
187.3
528.4
162.8
128.4
237.1
43.7
-5.8
135.4
63.9
562.3
229.2
127.8
205.3
9.3
7.3
177.6
11.0
511.1
225.2
54.5
231.4
-9.9
-3.4
140.5
104.2
394.1
72.8
28.8
292.5
46.5
5.3
209.2
31.5
600.9
267.4
25.3
308.2
-35.4
13.9
123.2
206.4
345.9
284.4
-.9
62.3
30.4
-19.9
82.6
-30.8
623.4
208.0
30.9
384.6
-20.6
5.0
193.9
206.3
379.9
113.0
22.3
244.6
46.4
13.1
144.8
40.3
275.8
36.7
-11.3
250.3
13.4
-13.4
219.2
31.1
404.8
91.8
33.5
279.6
122.2
18.2
219.8
-80.7
515.8
49.6
70.5
395.6
4.2
3.4
252.8
135.2
Private domestic nonfinancial investors
33 Direct lending in credit markets
34
U.S. government securities
35
State and local obligations
36
Corporate and foreign bonds
37
Open market paper
38
Other
121.5
27.0
-19.9
52.9
9.9
51.7
214.6
86.0
61.8
23.3
15.8
27.6
241.7
129.0
53.5
-9.4
36.4
32.2
195.9
134.3
28.4
.7
5.4
27.1
212.0
198.4
-1.3
-26.6
15.9
25.6
197.7
136.2
5.1
9.4
17.8
29.2
268.9
196.8
39.0
-4.7
21.4
16.4
-2.8
4.3
12.8
14.6
-64.6
30.1
369.3
250.7
.4
38.0
45.3
34.9
236.8
186.2
13.0
-27.2
39.8
24.9
170.1
178.1
16.0
-82.4
13.7
44.8
71.9
178.5
-34.3
-34.8
-35.3
-2.1
39 Deposits and currency
40
Currency
41
Checkable deposits
42
Small time and savings accounts
43
Money market fund shares
44
Large time deposits
45
Security RPs
46
Deposits in foreign countries
297.5
14.4
96.4
120.6
43.2
-3.2
20.2
5.9
179.3
19.0
-.9
76.0
28.9
37.2
21.6
-2.5
232.8
14.7
12.9
122.4
20.2
40.8
32.9
-11.2
241.3
11.7
1.5
100.5
85.2
23.1
14.9
4.4
100.1
22.6
-1.0
67.5
62.4
-45.8
-10.5
4.7
290.6
12.8
-41.7
99.0
119.2
61.1
29.8
10.4
261.8
6.0
14.7
163.1
116.7
-23.8
13.7
-28.6
230.6
10.1
65.8
109.1
65.6
-13.4
-19.2
12.4
138.0
26.1
-11.0
111.3
72.2
-24.6
-34.9
-1.1
60.3
23.1
-4.2
29.3
4.7
-15.4
22.3
.6
137.8
32.2
16.9
63.0
110.9
-78.8
-20.2
13.9
64.3
9.1
-5.6
66.6
62.0
-64.2
-9.1
5.6
47 Total of credit market instruments, deposits, and
currency
419.0
393.9
474.5
437.2
312.1
488.3
530.7
227.7
507.3
297.1
307.9
136.2
48
49
50
33.1
101.3
110.7
36.0
86.0
106.4
27.5
83.2
106.9
27.2
78.3
62.2
40.7
68.3
113.0
2.3
77.7
-40.3
30.8
56.2
162.8
32.0
105.7
23.6
29.9
52.3
69.3
48.0
52.7
79.8
43.9
74.8
199.2
42.9
99.7
103.6
86.8
10.9
-124.2
-63.7
17.2
-43.0
-61.0
14.9
-4.7
51.3
-9.6
31.7
159.0
-72.2
50.9
35.9
73.9
-63.0
32.0
-21.2
41.3
1.1
-125.3 -105.1
17.2
-2.9
-121.4 -80.9
66.9
-49.7
30.1
-12.9
34.0
57.9
-77.0 -118.9
-14.1
6.1
-28.9 -67.1
72.4
-57.6
76.9
-62.1
53.1
-57.8
42.1
-46.8
76.5
-25.2
72.1
-20.8
51.7
-61.3
-36.5
26.9
86.2
-54.4
42.8
-11.0
7
8
9
10
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
MEMO: Corporate equities not included above
51 Total net issues
52
Mutual fund shares
53
Other equities
54 Acquisitions by financial institutions
55 Other net purchases
NOTES BY LINE NUMBER.
1. Line 1 of table 1.57.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33.
Also sum of lines 28 and 47 less lines 40 and 46.
18. Includes farm and commercial mortgages.
26. Line 39 less lines 40 and 46.
27. Excludes equity issues and investment company shares. Includes line 19.
29. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates, less
claims on foreign affiliates and deposits by banking in foreign banks.
30. Demand deposits and note balances at commercial banks.
275.8
404.8
515.8
126.1
60.7
104.6
-210.3 -167.4 -129.6
238.9
265.5
231.0
121.1
236.6
319.2
31. Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 13 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 38 includes mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
Flow of Funds
A43
1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING
Billions of dollars; period-end levels.
1990
1989
Transaction category, sector
1986
1987
1988
1989
Q4
Q3
Q2
Ql
Q2'
Q3'
Q4
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
7,646.3
8,343.9
9,096.0
9,805.2
9,438.7
9,605.1
9,805.2
10,069.4'
10,226.6
10,394.1
10,579.9
By sector and instrument
2 U.S. government
3
Treasury securities
4
Agency issues and mortgages
1,815.4
1,811.7
3.6
1,960.3
1,955.2
5.2
2,117.8
2,095.2
22.6
2,269.4
2,245.2
24.2
2,165.7
2,142.1
23.6
2,206.1
2,180.7
25.4
2,269.4
2,245.2
24.2
2,360.9
2,329.3
31.6
2.401.7
2.368.8
32.9
2,470.2
2,437.6
32.6
2,568.9
2,536.5
32.4
5 Private domestic nonfinancial sectors
6
Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
5,831.0
3.962.7
679.1
669.4
2,614.2
1.720.8
246.2
551.4
95.8
6.383.6
4,427.9
728.4
748.8
2.950.7
1,943.1
270.0
648.7
88.9
6,978.2
4,886.4
790.8
851.7
3.243.8
2.173.9
286.7
696,4
86.8
7,535.8
5,283.3
821.2
925.4
3,536.6
2,404.3
304.4
742.6
85.3
7,273.0
5,091.4
804.9
887.9
3,398.6
2,287.6
298.3
725.9
86.8
7,399.0
5,189.9
816.4
903.5
3,470.0
2,347.6
301.2
734.9
86.3
7,535.8
5,283.3
821.2
925.4
3,536.6
2,404.3
304.4
742.6
85.3
7,708.6'
5,449.4'
822.4
936.7'
3,690.4'
2,530.7'
303.7'
772.1'
83.9'
7,824.9
5.533.8
827.4
955.5
3.750.9
2,594.0
298.9
773.9
84.0
7,923.9
5,610.6
838.0
%7.0
3,805.6
2,643.1
299.8
778.4
84.3
8,011.0
5,678.2
840.6
986.9
3,850.7
2,690.7
298.1
777.7
84.2
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
1,868.2
659.8
666.0
62.9
479.6
1,955.7
693.2
673.3
73.8
515.3
2,091.9
743.5
713.1
85.7
549.6
2,252.6
790.6
763.0
107.1
591.9
2,181.6
756.7
740.3
110.1
574.5
2,209.1
771.0
750.7
113.3
574.1
2,252.6
790.6
763.0
107.1
591.9
2,259.1'
774.3
756.2'
126.0
602.6
2,291.2
783.3
761.6
128.7
617.6
2,313.3
793.9
761.1
131.8
626.5
2,332.8
809.0
760.2
116.9
646.8
19
20
21
22
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
5,831.0
510.1
2,5%. 1
2,724.8
156.6
997.6
1,570.6
6,383.6
558.9
2,879.1
2,945.6
145.5
1,075.4
1,724.6
6,978.2
604.5
3,191.5
3,182.2
137.6
1,145.1
1,899.5
7,535.8
634.1
3.501.8
3,400.0
139.2
1.195.9
2,064.8
7,273.0
619.9
3,330.7
3.322.5
139.5
1.177.6
2,005.3
7,399.0
629.9
3.411.4
3,357.6
139.2
1,183.0
2.035.5
7,535.8
634.1
3.501.8
3,400.0
139.2
1.195.9
2,064.8
7,708.6'
634.3
3,625.0'
3,449.3'
137.4'
1,208.0'
2,103.9'
7,824.9
637.6
3,699.7
3,487.6
140.2
1,208.9
2,138.6
7,923.9
647.9
3,768.4
3,507.6
141.5
1,209.8
2,156.3
8,011.0
648.8
3.834.1
3.528.2
140.9
1,210.2
2,177.1
238.3
74.9
26.9
37.4
99.1
244.6
82.3
23.3
41.2
97.7
253.9
89.2
21.5
49.9
93.2
261.5
94.5
21.4
63.0
82.6
252.2
92.1
21.5
52.7
85.8
257.7
94.2
22.6
57.5
83.4
261.5
94.5
21.4
63.0
82.6
260.4
102.1
19.0
59.3
80.0
272.0
107.7
19.3
65.1
80.0
279.3
108.6
19.8
71.5
79.4
284.8
115.6
18.6
75.3
75.3
7,884.7
8,588.5
9,349.9
10,066.8
9,690.8
9,862.8
10,066.8
10,329.8'
10,498.7
10,673.3
10,864.7
26 Foreign credit market debt held in
United States
27
Bonds
28
Bank loans n.e.c
29
Open market paper
30
U.S. government loans
31 Total domestic plus foreign
Financial sectors
32 Total credit market debt owed by
financial sectors
33
34
35
36
37
38
39
40
41
42
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan B a n k s . . .
43 Total, by sector
44
45
46
47
48
49
50
51
52
53
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Mutual savings banks
Finance companies
REITs
SCO issuers
1,529.8
1,836.8
2,084.4
2,322.4
2,234.1
2,263.8
2,322.4
2,356.3
2,403.3
2,444.4
2,520.2
810.3
273.0
531.6
5.7
719.5
287.4
2.7
36.1
284.6
108.6
978.6
303.2
670.4
5.0
858.2
366.3
3.1
32.8
322.9
133.1
1,098.4
348.1
745.3
5.0
986.1
418.0
3.4
34.2
377.7
152.8
1,249.3
373.3
871.0
5.0
1,073.0
482.7
3.4
36.0
409.1
141.8
1,169.5
369.0
795.6
5.0
1,064.6
466.1
3.5
33.8
399.4
161.9
1,203.6
370.4
828.2
5.0
1,060.2
472.7
3.5
34.1
398.8
151.1
1,249.3
373.3
871.0
5.0
1,073.0
482.7
3.4
36.0
409.1
141.8
1,286.1
376.0
905.2
5.0
1,070.2
491.7
3.2
33.2
409.1
132.9
1,328.0
378.9
944.2
5.0
1,075.3
508.2
3.5
34.8
402.5
126.3
1,365.4
381.9
978.5
5.0
1,079.0
513.6
4.1
34.9
408.4
117.9
1,418.5
3%.0
1,017.5
5.0
1,101.8
526.8
4.1
36.7
417.1
117.1
1,529.8
1,836.8
2,084.4
2,322.4
2,234.1
2,263.8
2,322.4
2,356.3
2,403.3
2,444.4
2,520.2
278.7
531.6
719.5
75.6
116.8
119.8
8.6
328.1
6.5
64.0
308.2
670.4
858.2
81.8
131.1
139.4
16.7
378.8
7.3
103.1
353.1
745.3
986.1
78.8
136.2
159.3
18.6
446.1
11.4
135.7
378.3
871.0
1,073.0
77.4
142.5
145.2
17.2
4%.2
10.1
184.4
374.0
795.6
1,064.6
75.7
141.2
167.9
17.7
478.0
10.6
173.5
375.4
828.2
1,060.2
77.0
144.0
155.7
17.5
481.2
10.0
174.9
378.3
871.0
1,073.0
77.4
142.5
145.2
17.2
496.2
10.1
184.4
381.0
905.2
1,070.2
73.4
141.5'
137.1
15.4
499.6'
10.1
193.1
383.8
944.2
1,075.3
73.3
133.8
125.6
16.7
510.3
9.8
205.7
386.8
978.5
1,079.0
70.7
122.5
115.1
17.3
530.1
10.2
213.1
400.9
1,017.5
1,101.8
76.3
114.7
112.7
17.1
546.6
10.3
224.0
All sectors
54 Total credit market debt
9,414.4
10,425.3
11,434.3
12,389.1
11,925.0
12,126.6
12,389.1
12,686.1'
12,902.0
13,117.7
55
56
57
58
59
60
61
62
2,620.0
679.1
1,031.7
2,617.0
659.8
729.0
384.9
693.1
2,933.9
728.4
1,197.4
2,953.8
693.2
729.5
437.9
751.1
3.211.1
790.8
1,358.9
3.247.2
743.5
768.9
513.4
800.5
3,513.7
3,330.3
804.9
1,446.1
3,402.1
756.7
795.6
562.2
827.1
3,404.7
816.4
1.470.5
3.473.6
771.0
807.4
569.6
813.5
3,513.7
3,642.0
822.4
1,530.5'
3,693.6'
774.3
808.4'
594.5
820.5
3,724.8
827.4
1,571.4
3,754.3
783.3
815.7
596.3
828.9
,830.6
838.0
,589.3
,809.7
793.9
815.8
611.7
828.8
U.S. government securities..
State and local obligations...
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
821.2
1,502.6
3,540.1
790.6
820.3
579.2
821.4
821.2
1,502.6
3,540.1
790.6
820.3
579.2
821.4
A44
1.60
DomesticNonfinancialStatistics • May 1991
S U M M A R Y OF CREDIT MARKET CLAIMS, BY HOLDER
Billions of dollars, except as noted; period-end levels.
1989
Transaction category, or sector
1986
1988
1987
1990
1989
Q2
Q3
Q4
Ql r
Q2'
Q3r
Q4
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
7,646.3
8,343.9
9,096.0
9,805.2
9,438.7
9,605.1
9,805.2
By public agencies and foreign
2 Total held
3
U.S. government securities
4
Residential mortgages
5
FHLB advances to thrifts
6
Other loans and securities
1,779.4
509.8
678.5
108.6
482.4
2,006.6
570.9
814.1
133.1
488.6
2,199.7
651.5
900.4
152.8
495.1
2,379.3
682.1
1,038.4
141.8
517.0
2,263.5
642.7
954.4
161.9
504.5
2,317.4
668.6
991.1
151.1
506.6
2,379.3
682.1
1,038.4
141.8
517.0
2,419.9
679.2
1,077.7
132.9
530.2
2,503.0
706.9
1,126.5
126.3
543.3
2,582.0
737.4
1,171.8
117.9
555.0
2,656.5
762.0
1,215.9
117.1
561.4
7 Total held, by type of lender
8
U.S. government
9
Sponsored credit agencies and mortgage pools . . .
10 Monetary authority
11 Foreign
1,779.4
255.3
835.9
205.5
482.8
2,006.6
240.0
1,001.0
230.1
535.5
2,199.7
217.6
1,113.0
240.6
628.5
2,379.3
207.1
1,238.2
233.3
700.6
2,263.5
211.5
1,157.8
238.4
655.7
2,317.4
207.8
1,193.5
227.6
688.5
2,379.3
207.1
1,238.2
233.3
700.6
2,419.9
216.2
1,274.0
224.4
705.2
2,503.0
227.8
1,315.0
237.8
722.4
2,582.0
242.0
1,358.0
240.8
741.3
2,656.5
241.2
1,406.8
241.4
767.1
Agency and foreign debt not in line 1
Sponsored credit agencies and mortgage pools . . .
Foreign
810.3
238.3
978.6
244.6
1,098.4
253.9
1,249.3
261.5
1,169.5
252.2
1,203.6
257.7
1,249.3
261.5
1,286.1
260.4
1,328.0
272.0
1,365.4
279.3
1,418.5
284.8
Private domestic holdings
14 Total private holdings
15 U.S. government securities
16 State and local obligations
17
Corporate and foreign bonds
18
Residential mortgages
19 Other mortgages and loans
20
LESS: Federal Home Loan Bank advances
6,915.6
2,110.1
679.1
606.6
1,288.5
2,339.8
108.6
7,560.4
2,363.0
728.4
674.3
1,399.0
2,528.7
133.1
8,248.5
2,559.7
790.8
765.6
1,560.2
2,724.9
152.8
8,936.8
2,831.6
821.2
831.6
1,670.4
2,923.8
141.8
8,596.9
2,687.6
804.9
797.7
1,631.5
2,837.0
161.9
8,749.0
2,736.1
816.4
814.5
1,657.7
2,875.3
151.1
8,936.8
2,831.6
821.2
831.6
1,670.4
2,923.8
141.8
9,196.0
2,962.8
822.4
847.6
1,756.7
2,939.4
132.9
9,323.7
3,017.9
827.4
866.2
1,766.4
2,972.1
126.3
9,456.7
3,093.2
838.0
878.5
1,771.1
2,993.8
117.9
9,626.7
3,220.3
840.6
899.3
1,772.9
3,010.6
117.1
Private financial intermediation
21 Credit market claims held by private financial
institutions
27. Commercial banking
23
Savings institutions
24
Insurance and pension funds
25
Other finance
6,018.0
2,187.6
1,297.9
1,525.4
1,007.1
6,564.5
2,323.0
1,445.5
1,705.1
1,091.0
7,128.6
2,479.3
1,567.7
1,903.8
1,177.9
7,662.7
2,656.6
1,480.7
2,081.6
1,443.8
7,424.6
2,549.0
1,561.0
1,999.0
1,315.6
7,507.8
2,599.6
1,530.3
2,031.6
1,346.2
7,662.7
2,656.6
1,480.7
2,081.6
1,443.8
7,850.5
2,680.4
1,461.3
2,152.5
1,556.4
7,915.0
2,720.7
1,409.5
2,198.4
1,586.4
8,000.6
2,751.1
1,371.5
2,242.5
1,635.5
8,123.5
2,776.5
1,339.7
2,307.6
1,699.6
26 Sources of funds
27
Private domestic deposits and RPs
28
Credit market debt
6,018.0
3,199.0
719.5
6,564.5
3,354.2
858.2
7,128.6
3,599.1
986.1
7,662.7
3,824.3
1,073.0
7,424.6
3,679.1
1,064.6
7,507.8
3,742.5
1,060.2
7,662.7
3,824.3
1,073.0
7,850.5
3,846.6
1,070.2
7,915.0
3,837.6
1,075.3
8,000.6
3,852.9
1,079.0
8,123.5
3,897.0
1,101.8
29
30
31
32
33
2,099.5
18.6
27.5
1,398.5
655.0
2,352.1
62.3
21.6
1,527.8
740.3
2,543.5
71.5
29.0
1,692.5
750.5
2,765.5
61.6
25.6
1,826.0
852.3
2,680.9
49.4
34.4
1,770.0
827.2
2,705.1
55.0
30.3
1,785.7
834.0
2,765.5
61.6
25.6
1,826.0
852.3
2,933.7
63.4
16.7
1,861.5
992.1
3,002.1
66.3
32.1
1,907.7
996.0
3,068.8
94.1
36.6
1,940.6
997.5
3,124.7
108.2
30.9
1,996.7
988.8
Private domestic nonfinancial investors
34 Credit market claims
35
U.S. government securities
36 Tax-exempt obligations
37
Corporate and foreign bonds
38
Open market paper
39
Other
1,617.0
848.7
212.6
90.5
145.1
320.1
1,854.1
936.7
274.4
114.0
178.5
350.4
2,106.0
1,072.2
340.9
100.4
218.0
374.4
2,347.1
1,206.4
369.3
130.5
228.7
412.1
2,236.9
1,122.9
353.8
128.2
236.7
395.3
2,301.5
1,171.3
363.1
131.1
239.3
396.8
2,347.1
1,206.4
369.3
130.5
228.7
412.1
2,415.6
1,256.2
362.5
152.1
230.1
414.8
2,484.1
1,288.7
368.5
156.2
247.2
423.3
2,535.0
1,332.3
372.4
151.8
247.9
430.6
2,605.0
1,414.4
368.1
138.4
244.6
439.5
40 Deposits and currency
41
Currency
42
Checkable deposits
43
Small time and savings accounts
44
Money market fund shares
45
Large time deposits
46
Security RPs
47
Deposits in foreign countries
3,410.1
186.3
516.6
1,948.3
268.9
336.7
128.5
24.8
3,583.9
205.4
515.4
2,017.1
297.8
373.9
150.1
24.3
3,832.3
220.1
527.2
2,156.2
318.0
414.7
182.9
13.1
4,073.6
231.8
528.7
2,256.7
403.3
437.8
197.9
17.6
3,926.2
226.4
495.0
2,189.3
362.1
435.7
196.9
20.7
3,979.0
224.4
486.1
2,224.4
391.0
440.0
200.9
12.1
4,073.6
231.8
528.7
2,256.7
403.3
437.8
197.9
17.6
4,094.9
234.4
501.2
2,289.4
436.7
431.1
188.3
13.9
4,096.7
242.7
510.7
2,292.3
426.3
415.8
192.5
16.4
4,118.3
247.2
501.2
2,302.4
454.5
407.1
187.9
18.3
4,173.7
254.4
527.7
2,324.2
465.7
392.0
187.4
22.3
48 Total of credit market instruments, deposits, and
currency
12
13
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
10,069.4 10,226.6 10,394.1 10,579.9
5,027.2
5,438.0
5,938.2
6,420.7
6,163.0
6,280.5
6,420.7
6,510.6
6,580.7
6,653.3
6,778.7
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
22.6
87.0
501.3
23.4
86.8
597.8
23.5
86.4
700.1
23.6
85.7
762.3
23.4
86.4
705.1
23.5
85.8
743.5
23.6
85.7
762.3
23.4
85.4
768.6
23.8
84.9
788.7
24.2
84.6
835.4
24.5
84.4
875.2
MEMO: Corporate equities not included above
52 Total market value
3,360.6
3,325.0
3,619.8
4,378.9
4,069.7
4,395.4
4,378.9
4,170.3
4,336.4
3,846.4
3,995.8
53
54
Mutual fund shares
Other equities
413.5
2,947.1
460.1
2,864.9
478.3
3,141.6
555.1
3,823.8
514.8
3,555.0
543.9
3,851.5
555.1
3,823.8
550.3
3,620.0
587.9
3,748.5
547.3
3,299.1
579.9
3,415.9
55
56
Holdings by financial institutions
Other holdings
974.6
2,385.9
1,039.5
2,285.5
1,176.1
2,443.7
1,492.3
2,886.6
1,343.0
2,726.8
1,478.5
2,917.0
1,492.3
2,886.6
1,435.6
2,734.6
1,543.0
2,793.4
1,312.1
2,534.3
1,408.3
2,587.4
49
50
51
NOTES BY LINE NUMBER.
1. Line 1 of table 1.59.
2. Sum of lines 3 - 6 or 8-11.
6. Includes farm and commercial mortgages.
12. Credit market debt of federally sponsored agencies, and net issues of
federally related mortgage pool securities.
14. Line 1 less line 2 plus line 12 and 13. Also line 21 less line 28 plus line 34.
Also sum of lines 29 and 48 less lines 41 and 47.
19. Includes farm and commercial mortgages.
27. Line 40 less lines 41 and 47.
28. Excludes equity issues and investment company shares. Includes line 20.
30. Foreign deposits at commercial banks plus bank borrowings from foreign
affiliates, less claims on foreign affiliates and deposits by banking in foreign banks.
31. Demand deposits and note balances at commercial banks.
32. Excludes net investment of these reserves in corporate equities.
33. Mainly retained earnings and net miscellaneous liabilities.
34. Line 14 less line 21 plus line 28.
35-39. Lines 15-19 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 39 includes mortgages.
41. Mainly an offset to line 10.
48. Lines 34 plus 40, or line 14 less line 29 plus 41 and 47.
49. Line 2/line 1 and 13.
50. Line 21/line 14.
51. Sum of lines 11 and 30.
52-54. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Stop 95, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Selected Measures
2.10 NONFINANCIAL BUSINESS ACTIVITY
A45
Selected Measures
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1990
1988
Measure
1989
1990
July
1 Industrial production (1987 = 100)'
105.4
108.1
109.2
110.1
Market groupings
Products, total (1987 = 100)
Final, total (1987 = 1 0 0 )
Consumer goods (1987 = 100)
Equipment (1987 = 100)
Intermediate (1987 = 100)
Materials (1987 = 100)
105.3
105.6
104.0
107.6
104.4
105.6
108.6
109.1
106.7
112.3
106.8
107.4
110.1
110.9'
107.3
115.5'
107.7
107.8'
110.9
111.7
107.8
108.9
109.9
110.8
2
3
4
5
6
7
Industry
groupings
8 Manufacturing (1987 = 100)
Capacity utilization (percent)
9
10
11
12
13
14
15
16
17
18
19
20
116.8
108.3
108.8
110.9
111.7
107.5
117.2
108.4
109.6
Aug.
110.9
111.9
107.8
117.2
107.9
109.7
111.4
112.6
108.7
117.8
107.4
109.4
109.9
108.3'
107.2
106.6'
111.0
109.3'
110.2'
108.6
117.0
107.0
108.3
106.5
115.1'
106.2'
106.8'
108.4
109.2
105.5
113.9
106.1
105.2
107.9
112.3
110.7
108.9
107.4
107.2
108.8'
108.2
105.4'
113.3'
104.5'
104.6
112.7
104.1
103.4
106.9
106.0
KM^
2
83.9
83.9
82.3
83.1
83.1
82.2
80.7
79.4
78.8
78.0
166.7
172.9
153.3'
164.0
153.0
149.0
146.0
147.0
146.0
130.0
132.0
133.0
128.0
131.5'
104.0'
98.7'
93.8'
142.9'
272.7
258.9
203.1
270.1
240.7
133.8
102.7
96.8
91.5
146.8
289.0
272.2
205.0
286.1
249.7'
134.4
103.4
97.3
92.0
147.4
288.7
272.8
206.8
285.8
248.9
134.3
103.1
97.2
92.0
147.3
290.1
274.4
206.9
286.9
250.1
134.1
102.8
96.9
91.7
147.3
290.8
274.5
206.7
287.6
250.2
134.1
102.4
96.6
91.2
147.4
292.2
276.4
207.0
288.7
252.4
133.9
96.3
90.9
147.4
292.1
274.8
206.0
288.6
252.7
133.6
100.7
95.2
89.6
147.4
293.3
274.8
202.9
289.9
252.7
133.4
100.3
95.0
89.3
147.2
294.9
277.1
205.5
291.4
248.2
133.1
99.3'
94.6
132.9
98.9
93.9
147.2
293.6
275.7
202.5
289.9
244.8'
147.1
n.a.
n.a.
n.a.
n.a.
246.7
124.0
113.6
130.7
119.2
129.9
117.8
130.4
131.6
119.3
132.7
120.4
133.5
122.3
133.8
122.9
133.8
121.9
134.6
121.9
134.8
121.2
Manufacturing
Construction contracts (1982 = 100) 3 ...
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production- worker
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income 3
Retail sales 6
PRICES7
21
Consumer (1982-84 = 100)
22
Producer finished goods (1982 = 100)
103.4'
98.3'
93.5'
138.3'
253.2
244.6
196.5
252.2
228.0
118.3
108.0
1. A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision" in the Federal Reserve Bulletin, vol. 76
(April 1990), pp. 187-204.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
Feb.
Nov.
Sept.
118.2
101.8
ss^
88.2
6. Based on Bureau of Census data published in Survey of Current Business.
1. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the latest month are preliminary and the
prior three months have been revised. See "Recent Developments in Industrial
Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp.
411-35.
A46
2.11
Domestic Nonfinancial Statistics • May 1991
LABOR FORCE, EMPLOYMENT, A N D U N E M P L O Y M E N T
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1990
Category
1988'
1989'
1991
1990
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.'
Feb.
HOUSEHOLD SURVEY DATA
1
Noninstitutional population1
2 Labor force (including Armed Forces)1
3 Civilian labor force
2
4
5
Nonagricultural industries
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force)
8 Not in labor force
186,837
188,601
190,216
190,275
190,411
190,568
190,717
190,854
190,999
191,116
191,248
123,893
121,669
126,077
123,869
126,954
124,787
126,848
124,709
126,855
124,705
127,137
124,970
127,067
124,875
126,880
124,723
127,307
125,174
126,777
124,638
127,209
125,076
111,800
3,169
114,142
3,199
114,728
3,186
114,774
3,108
114,538
3,152
114,689
3,194
114,558
3,175
114,201
3,185
114,321
3,253
113,759
3,163
113,6%
3,222
6,701
5.5
62,944
6,528
5.3
62,524
6,874
5.5
63,262
6,827
5.5
63,427
7,015
5.6
63,556
7,087
5.7
63,431
7,142
5.7
63,650
7,337
5.9
63,974
7,600
6.1
63,692
7,715
6.2
64,339
8,158
6.5
64,039
105,536
108,413
110,330
110,740
110,613
110,612
110,432
110,165
110,004'
109,771
109,587
19,350
713
5,110
5,527
25,132
6,649
25,669
17,386
19,426
700
5,200
5,648
25,851
6,724
27,096
17,769
19,131
745
5,229
5,841
26,225
6,842
28,287
18,440
19,084
735
5,194
5,846
26,222
6,852
28,387
18,293
19,019
736
5,176
5,870
26,214
6,851
28,440
18,306
18,951
733
5,093
5,870
26,147
6,843
28,475
18,320
18,744
738
5,029
5,866
26,082
6,833
28,548
18,325
18,693'
740
4,983'
5,882'
26,001'
6,829'
28,573'
18,303'
18,614
737
4,833
5,884
25,984
6,820
28,619
18,280
18,487
739
4,860
5,848
25,892
6,810
28,647
18,304
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
19,064
735
5,205
5,838
26,151
6,833
28,209
18,295r
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
Selected Measures
A47
2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally a d j u s t e d
1990
Series
Ql
Q2
Q3
Q4'
108.3
109.2
2 Manufacturing
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
109.4
110.2
110.5
111.1
Q2
Q3
Q4
Ql
108.5
109.0
130.3
132.1
131.1
133.0
131.9
134.0
132.8
135.0
Q2
Q4'
Q3
Utilization rate (percent)
Capacity (percent of 1987 output)
Output (1987 = 100)
1 Total industry
Ql
83.1
82.7
81.7
83.5
83.7
82.8
82.9
80.8
82.9
79.8
79.2
76.8
83.8
82.9
85.3
80.9
77.8
67.2
Primary processing
Advanced processing
106.4
110.5
106.3
112.1
107.6
112.8
104.6
111.0
124.1
135.8
124.8
136.9
125.5
138.0
126.1
139.1
85.7
81.4
85.2
81.9
85.8
81.7
Durable
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment . . .
110.4
105.1
106.1
107.1
104.6
124.4
111.1
91.5
112.4
102.3
107.4
107.5
107.1
126.7
112.2
102.6
113.6
101.5
112.2
114.3
109.2
128.5
112.4
103.7
110.0
95.7
107.2
110.0
103.4
126.5
109.9
89.4
136.1
123.0
127.2
132.0
120.4
151.5
137.3
132.2
137.1
123.5
127.4
132.2
120.6
153.1
138.7
132.4
138.0
124.0
127.7
132.5
120.9
154.7
140.0
132.7
139.0
124.6
127.9
132.7
121.1
156.3
141.4
132.9
81.1
85.5
83.4
81.1
86.9
82.1
80.9
69.2
82.0
82.8
84.2
81.3
88.8
82.8
80.9
77.5
82.3
81.8
87.9
86.3
90.3
83.1
80.3
78.2
111.6
113.6
114.5
113.4
133.4
134.3
135.2
136.1
83.6
84.6
84.7
83.3
Nondurable
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
70
71 Utilities
22 Electric
107.7
101.1
103.9
109.9
111.7
109.9
107.5
102.4
104.5
109.9
116.3
106.0
108.1
101.3
107.2
110.8
117.2
110.0
107.8
98.1
105.8
109.9
118.2
107.4
126.9
115.9
113.9
133.4
126.1
121.1
127.9
116.3
114.5
134.6
128.4
121.2
128.9
116.6
115.1
135.9
130.6
121.3
129.9
117.0
115.7
137.1
132.9
121.4
84.8
87.2
91.2
82.4
88.6
90.7
84.0
88.1
91.3
81.6
90.6
87.4
83.8
86.9
93.2
81.5
89.7
90.7
82.9
83.9
91.4
80.1
88.9
88.5
101.3
105.7
108.4
102.5
107.8
111.0
103.4
110.5
112.9
103.0
108.2
111.0
115.6
126.1
121.2
115.0
126.6
121.9
114.5
127.1
122.6
114.0
127.6
123.2
87.6
83.8
89.4
89.1
85.2
91.1
90.3
86.9
92.1
90.4
84.8
90.1
Previous cycle2
High
Low
Latest cycle3
High
Low
1991
1990
Feb.
July
Aug.
Sept.
Oct.
Nov/
Dec/
Jan/
Feb."
Capacity utilization rate (percent)
23 Total industry
89.2
72.6
87.3
71.8
83.3
83.8
83.7
83.6
83.0
81.6
80.5
79.9
79.1
24 Manufacturing
88.9
70.8
87.3
70.0
83.0
83.1
82.9
82.8
82.2
80.7
79.4
78.8
78.0
25
26
Primary processing
Advanced processing
92.2
87.5
68.9
72.0
89.7
86.3
66.8
71.4
86.1
81.7
86.1
81.8
86.1
81.6
85.1
81.8
84.3
81.3
83.2
79.6
81.3
78.6
80.4
78.1
79.2
77.5
77
28
79
30
31
3?
33
34
35
Durable
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts . . . .
Aerospace and miscellaneous
transportation equipment..
88.8
90.1
100.6
105.8
92.9
96.4
87.8
93.4
68.5
62.2
66.2
66.6
61.3
74.5
63.8
51.1
86.9
87.6
102.4
110.4
90.5
92.1
89.4
93.0
65.0
60.9
46.8
38.3
62.2
64.9
71.1
44.5
81.3
84.8
84.8
83.8
86.4
82.0
80.8
71.2
82.3
83.6
86.4
83.5
90.9
83.2
80.4
77.4
82.3
81.0
89.8
89.3
90.5
83.2
80.4
76.1
82.2
80.7
87.4
86.0
89.6
82.8
80.1
81.0
81.2
78.9
85.0
83.2
87.7
82.2
78.6
78.1
79.1
76.6
85.3
84.8
85.9
80.8
78.1
64.5
77.3
74.8
81.3
80.6
82.3
79.7
76.6
59.0
76.7
75.9
77.3
74.3
81.9
78.9
75.7
62.3
75.5
73.1
73.7
68.8
81.3
78.3
74.7
59.9
77.0
66.6
81.1
66.9
83.9
85.4
84.4
84.3
84.0
83.1
82.8
81.6
80.5
36
37
38
39
Nondurable
Textile mill products
Paper and products
Chemicals and products
87.9
92.0
96.9
87.9
102 0
96.7
71.8
60.4
69.0
69.9
50 6
81.1
87.0
91.7
94.2
85.1
90.9
89.5
76.9
73.8
82.0
70.1
63.4
68.2
85.3
88.9
92.3
82.8
88.9
92.4
84.1
88.3
93.8
81.5
90.5
91.1
83.8
86.1
92.5
81.8
89.7
90.8
83.6
86.3
93.3
81.4
88.9
90.1
83.6
86.6
92.5
81.0
90.0
89.5
82.9
83.3
90.9
80.2
90.2
88.9
82.3
81.7
91.0
79.2
86.6
87.0
81.8
81.9
89.6
78.8
81.4
80.2
89.4
78.5
86.9
89.8
90.6
83.8
88.9
90.7
84.9
90.2
90.1
84.1
89.4
90.9
81.2
86.2
41
Petroleum products
47
43 Utilities
44 Electric
94.4
95.6
99.0
88.4
82.5
82.7
96.6
88.3
88.3
80.6
76.2
78.7
1. These data also appear in the Board's G.17 (419) release. For address, see
inside front cover. For a detailed description of the series, see "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76
(June 1990), pages 411-35.
87.4
82.5
88.4
90.7
86.4
91.6
89.4
87.6
92.7
90.9
86.7
91.9
89.9
85.6
91.2
2. Monthly high 1973; monthly low 1975.
3. Monthly highs 1978 through 1980; monthly lows 1982.
A48
Domestic Nonfinancial Statistics • May 1991
2.13 INDUSTRIAL PRODUCTION
Indexes and Gross Value1
M o n t h l y d a t a a r e seasonally a d j u s t e d
_
1987
proportion
1990
1991
1990
avg.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov/
Dec/
Jan/
Feb.p
Index (1987 = 100)
MAJOR MARKET
100.0
109.2
108.5
108.9
108.8
109.4
110.1
110.4
110.5
110.6
109.9
108.3
107.2
106.6
105.7
2 Products
3 Final products
4
Consumer goods
5
Durable consumer goods
6
Automotive products
7
Autos and trucks
8
Autos, consumer
9
Trucks, consumer
10
Auto parts and allied goods...
11
Other
12
Appliances, A/C, and TV
13
Carpeting and furniture
14
Miscellaneous home goods . . .
15
Nondurable consumer goods
16
Foods and tobacco
17
Clothing
18
Chemical products
19
Paper products
20
Energy
21
Fuels
22
Residential utilities
60.8
46.0
26.0
5.6
2.5
1.5
.9
.6
1.0
3.1
.8
.9
1.4
20.4
9.1
2.6
3.5
2.5
2.7
.7
2.0
110.1
110.9
107.3
106.2
102.3
97.4
92.2
106.1
109.6
109.4
102.0
104.9
116.4
107.6
105.9
95.7
113.2
119.7
105.9
102.9
107.0
109.4
109.7
107.0
106.2
99.3
92.7
86.9
102.3
109.4
111.6
107.8
104.7
118.2
107.2
106.2
99.6
112.0
117.6
101.5
106.6
99.6
110.1
110.7
107.5
110.8
109.3
107.7
100.5
120.0
111.6
112.0
108.1
105.9
118.0
106.6
105.8
97.0
111.0
116.4
103.1
101.8
103.6
109.8
110.4
107.2
107.3
102.4
95.8
87.7
109.3
112.2
111.2
104.4
107.5
117.3
107.1
105.6
96.0
113.5
118.1
104.1
101.6
105.0
110.5
111.2
107.4
109.3
107.0
105.6
96.8
120.4
108.9
111.1
103.6
107.6
117.5
106.9
105.2
96.4
113.0
118.6
104.1
98.2
106.3
110.9
111.7
107.8
112.1
112.2
112.9
103.8
128.3
111.2
112.0
107.5
107.8
117.2
106.6
104.4
95.7
112.8
118.3
105.3
102.6
106.3
110.9
111.7
107.5
108.3
106.7
104.8
98.0
116.1
109.5
109.5
100.2
106.0
116.9
107.3
105.1
95.6
112.4
120.3
106.7
104.6
107.5
110.9
111.9
107.8
107.4
104.6
101.5
97.2
108.8
109.3
109.6
101.9
104.9
116.8
107.9
105.7
94.6
114.3
119.3
109.0
106.0
110.0
111.4
112.6
108.7
110.4
111.8
113.0
111.5
115.4
110.0
109.3
101.0
106.0
116.1
108.2
105.3
95.3
115.1
121.9
108.0
105.6
108.9
111.0
112.3
108.6
106.9
107.1
107.5
104.6
112.2
106.4
106.8
94.6
103.8
115.5
109.1
106.7
94.2
115.9
123.4
108.8
104.0
110.6
109.3
110.2
106.5
99.4
93.5
84.2
80.7
90.2
107.3
104.1
90.8
99.2
114.6
108.5
107.8
91.7
113.5
122.8
106.4
101.1
108.4
108.4
109.2
105.5
96.0
86.7
74.6
77.2
70.2
104.9
103.4
89.9
101.0
112.4
108.1
107.4
91.8
112.6
122.7
106.4
98.1
109.4
107.9
108.8
105.4
96.9
89.8
79.6
83.2
73.7
105.2
102.5
92.5
99.0
110.3
107.7
106.7
90.6
114.3
120.7
106.3
99.2
108.9
107.2
108.2
104.6
94.8
86.1
75.2
79.1
68.6
102.5
101.6
91.2
97.1
110.3
107.3
106.4
91.1
114.4
119.9
104.6
103.0
105.2
23
24
25
26
27
28
29
30
31
32
33
Equipment, total
Business equipment
Information processing and related ..
Office and computing
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
20.0
13.9
5.6
1.9
4.0
2.5
1.2
1.9
5.4
.6
.2
115.5
123.1
127.3
149.8
115.3
129.9
96.8
118.5
97.3
109.0
90.8
113.3
120.1
124.7
144.3
113.4
122.7
91.7
117.4
97.6
100.1
94.3
114.9
122.2
126.0
147.2
113.9
130.6
104.5
117.8
97.5
106.0
92.9
114.7
121.6
126.4
149.3
114.2
126.2
95.2
117.6
97.3
114.3
89.7
116.2
123.5
126.6
148.9
115.8
132.5
105.7
119.4
97.6
118.6
91.3
116.8
124.4
126.3
150.6
116.0
137.4
112.2
119.9
97.6
119.5
92.8
117.2
125.0
128.0
152.7
117.2
135.5
103.1
119.2
97.8
116.2
90.0
117.2
125.4
128.5
152.2
117.9
135.4
101.5
119.8
97.7
106.9
93.4
117.8
126.4
129.5
153.6
117.4
140.5
111.0
118.5
97.3
107.4
91.8
117.0
125.4
130.1
155.3
115.4
137.5
106.5
117.0
97.3
107.1
89.0
115.1
122.9
128.8
149.8
115.3
126.3
83.9
117.6
96.2
109.7
87.3
113.9
121.6
128.0
148.9
112.7
123.5
75.3
119.0
95.8
107.3
83.4
113.3
121.2
128.5
150.1
111.4
125.5
79.8
115.3
94.5
106.4
83.1
112.7
120.4
129.3
152.1
110.2
122.7
75.5
112.9
94.4
108.2
77.3
34
35
36
Intermediate products, total
Construction supplies
Business supplies
14.7
6.0
8.7
107.7
105.2
109.4
108.4
108.2
108.5
108.2
107.3
108.9
108.0
106.4
109.1
108.3
105.5
110.2
108.3
106.0
109.8
108.4
106.7
109.5
107.9
105.3
109.7
107.4
103.8
109.9
107.0
103.1
109.7
106.2
101.8
109.2
106.1
100.8
109.9
104.9
98.6
109.3
104.1
97.5
108.7
37 Materials, total
38 Durable goods materials
39
Durable consumer parts
40
Equipment parts
41 Other
42
Basic metal materials
43 Nondurable goods materials
44
Textile materials
45
Pulp and paper materials
46
Chemical materials
47
Other
48 Energy materials
49
Primary energy
50
Converted fuel materials
39.2
19.4
4.2
7.3
7.9
2.8
9.0
1.2
1.9
3.8
2.1
10.9
7.2
3.7
107.8
111.8
104.0
118.1
110.2
111.9
106.0
96.7
106.4
106.7
109.5
102.1
101.3
103.5
107.1
110.8
102.8
117.6
108.7
109.9
105.8
96.2
105.3
107.3
108.8
101.7
102.1
100.9
107.1
110.9
104.5
117.6
108.1
107.5
105.2
94.9
103.0
107.5
108.7
102.0
101.2
103.4
107.3
110.9
103.2
117.4
108.9
110.2
106.1
95.6
106.0
107.4
109.8
101.8
100.3
104.6
107.7
112.5
108.5
118.1
109.6
109.2
105.2
97.4
104.5
105.4
109.8
101.1
100.1
102.9
108.8
113.8
108.5
119.1
111.8
113.6
106.1
99.4
104.8
107.3
108.8
102.1
101.2
103.9
109.6
114.0
108.1
119.2
112.4
115.5
107.8
100.2
109.0
108.5
109.9
103.3
103.3
103.4
109.7
114.9
110.4
119.4
113.1
116.3
106.8
97.8
106.9
108.0
109.3
103.0
102.1
104.9
109.4
114.1
109.0
119.8
111.6
115.8
106.9
98.1
109.4
106.6
110.1
103.0
101.0
107.0
108.3
112.5
106.0
118.6
110.4
112.0
106.5
97.9
108.6
105.6
110.8
102.3
100.7
105.3
106.8
110.4
98.5
117.4
110.2
112.7
105.6
95.1
107.2
105.8
109.4
101.6
101.4
102.0
105.2
107.5
91.4
116.9
107.4
109.3
104.4
90.8
108.5
104.5
107.9
101.6
101.5
101.9
104.5
106.9
93.9
115.4
105.8
105.5
104.0
92.1
105.6
104.2
108.8
100.8
101.1
100.2
103.4
105.0
91.7
114.2
103.6
102.2
103.9
90.9
106.1
103.8
109.2
100.2
101.4
97.9
97.3
95.3
109.5
109.8
108.9
109.2
109.0
109.2
109.2
109.5
109.5
109.7
110.0
110.2
110.6
110.8
110.7
110.9
110.6
110.7
110.0
110.2
109.0
109.4
108.1
108.6
107.3
107.7
106.6
107.0
1
Total index
SPECIAL AGGREGATES
51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts...
53 Total excluding office and computing
machines
54 Consumer goods excluding autos and
trucks
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding office and
computing equipment
58 Materials excluding energy
97.5
108.2
107.6
108.0
107.8
108.4
109.1
109.3
109.4
109.5
108.8
107.3
106.1
105.5
104.5
24.5
23.3
107.9
107.5
107.8
107.6
107.5
108.0
107.9
107.5
107.6
107.8
107.5
108.1
107.6
107.6
108.2
107.7
108.4
108.7
108.7
108.6
107.9
106.5
107.4
105.4
106.9
105.3
106.4
104.6
12.7
125.7
122.9
124.0
124.2
125.3
125.6
127.2
127.8
128.0
127.2
126.8
126.1
125.3
124.8
12.0
28.4
118.8
110.0
116.2
109.2
118.2
109.1
117.2
109.4
119.4
110.2
120.2
111.4
120.5
112.1
121.1
112.3
122.0
111.8
120.6
110.6
118.6
108.9
117.1
106.5
116.6
105.9
115.3
104.6
Selected Measures
A49
2.13—Continued
Groups
SIC
code
1987
proportion
1991
1990
1990
avg.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov/
Dec/
Jan/
Feb."
Index (1987 = 100)
MAJOR INDUSTRY
100.0
109.2
108.5
108.9
108.8
109.4
110.1
110.4
110.5
110.6
109.9
108.3
107.2
106.6
105.7
2 Manufacturing
3 Primary processing
4 Advanced processing
84.4
26.7
57.7
109.9
106.3
111.6
109.6
106.9
110.9
109.8
106.0
111.7
109.5
105.9
111.3
110.3
106.1
112.4
110.8
107.0
112.6
111.1
107.9
112.5
111.1
108.0
112.5
111.2
106.9
113.2
110.7
106.2
112.8
108.9
104.9
110.8
107.4
102.7
109.6
106.9
101.8
109.2
106.0
100.5
108.7
5
6
7
8
Durable
24
Lumber and products . . .
25
Furniture and fixtures . . .
Clay, glass, and stone
32
products
33
Primary metals
331,2
Iron and steel
Raw steel
333-6,9
Nonferrous
Fabricated metal
34
products
35
Nonelectrical machinery.
Office and computing
357
machines
36
Electrical machinery
Transportation
37
equipment
Motor vehicles and
371
parts
Autos and light
trucks
Aerospace and miscellaneous transportation equipment.. 372-6,9
38
Instruments
Miscellaneous
39
manufacturers
47.3
2.0
1.4
111.6
101.6
105.9
110.7
104.3
104.8
111.9
105.0
105.9
111.1
103.3
107.6
112.6
101.7
108.0
113.4
102.0
108.7
113.4
103.6
108.0
113.5
100.5
106.7
113.8
100.3
106.9
112.5
98.2
104.4
109.9
95.5
102.3
107.6
93.3
102.1
107.0
94.7
99.1
105.7
91.4
98.4
2.5
3.3
1.9
.1
1.4
105.7
108.4
109.9
109.6
106.2
108.0
107.9
110.6
109.0
104.0
107.7
105.4
106.1
105.9
104.3
105.1
106.4
106.7
104.9
105.9
106.4
106.2
105.5
107.6
107.1
106.1
109.5
110.3
111.8
108.3
106.0
110.3
110.6
113.9
109.8
106.6
114.6
118.3
118.5
109.4
104.5
111.6
113.9
111.6
108.4
104.4
108.6
110.3
112.8
106.2
103.8
109.1
112.6
109.5
104.1
100.8
104.0
107.0
100.6
99.8
99.1
98.9
98.7
104.7
99.3
98.5
94.4
91.5
95.0
98.6
5.4
8.6
105.9
126.6
105.6
124.2
105.5
125.2
105.0
125.7
107.1
126.9
106.7
127.5
107.7
128.3
107.9
128.8
106.8
128.5
106.4
128.1
104.3
126.3
101.8
125.0
101.6
124.2
100.3
123.7
2.5
8.6
149.8
111.4
144.3
111.0
147.3
112.3
149.3
111.3
149.0
112.4
150.6
112.8
152.7
112.2
152.2
112.5
153.6
112.5
155.3
110.8
149.8
110.4
148.9
108.7
150.1
107.7
152.1
106.7
95.9
1.2
120.0
118.1
Nondurable
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing ..
Chemicals and products .
Petroleum products
Rubber and plastic
products
Leather and products . . .
20
21
22
23
26
27
28
29
37.2
8.8
1.0
1.8
2.4
3.6
6.4
8.6
1.3
107.8
107.6
98.6
100.8
98.8
105.3
112.0
110.2
108.2
108.3
107.4
102.3
103.0
102.1
105.0
112.1
110.5
112.0
30
31
3.0
.3
110.2
100.0
109.1
102.9
34 Mining
35 Metal
36 Coal
37 Oil and gas extraction
38 Stone and earth minerals ..
10
11,12
13
14
7.9
.3
1.2
5.7
.7
102.5
153.2
113.2
95.5
119.4
491.3PT
492,3PT
7.6
6.0
1.6
1 Total index
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
39 Utilities
40 Electric
41 Gas
9.8
105.5
103.5
107.9
105.1
109.0
111.0
109.3
107.9
111.1
109.2
100.1
96.6
98.0
4.7
96.8
94.1
103.5
95.8
104.0
108.0
102.7
101.0
107.5
103.8
85.8
78.5
83.0
79.9
2.3
96.6
91.8
106.7
94.6
104.3
111.6
103.8
100.9
112.8
107.1
83.7
74.9
80.1
75.8
5.1
3.3
113.3
116.9
111.9
116.2
111.9
115.7
113.4
115.8
113.5
116.5
113.8
115.0
115.2
116.9
114.1
117.5
114.2
118.4
114.0
118.1
113.1
118.1
113.0
118.2
111.6
118.9
110.3
119.3
118.6
118.6
119.1
119.6
120.4
121.8
121.3
121.5
122.5
118.8
115.3
115.3
107.2
107.1
100.0
99.8
99.8
102.8
111.4
109.5
109.1
107.5
107.0
98.8
100.9
98.7
105.3
112.0
110.3
106.8
107.4
106.8
97.2
102.7
99.2
104.0
112.8
109.2
104.6
107.6
106.1
95.6
103.6
99.3
104.2
112.0
110.3
106.5
108.1
107.1
98.5
102.9
99.2
107.8
111.4
110.4
110.5
108.1
107.7
96.3
100.4
98.8
106.5
110.9
111.1
110.2
108.0
107.6
96.4
100.7
98.4
107.5
111.6
110.9
109.3
108.4
108.8
97.8
101.2
97.2
106.8
112.9
110.7
108.6
107.7
109.6
99.0
97.4
95.5
105.1
112.4
110.0
107.8
107.2
109.1
100.8
95.6
94.7
105.4
113.3
108.9
105.6
106.8
108.5
100.5
96.0
93.1
104.0
112.9
108.8
105.5
106.5
108.6
99.5
94.1
93.6
104.0
112.4
108.6
109.0
109.8
103.3
109.0
102.6
110.9
103.5
112.8
102.0
110.9
102.5
112.0
99.6
110.3
100.3
110.6
95.3
109.6
89.9
106.7
92.6
107.9
89.8
105.8
88.2
101.0
143.4
111.9
94.1
120.0
101.1
141.4
112.9
94.6
116.5
102.9
152.7
114.2
95.7
120.2
102.2
148.7
110.0
96.0
119.9
102.2
156.7
113.5
94.6
121.1
104.0
164.8
118.5
95.5
121.8
102.4
155.7
110.2
95.8
120.1
103.9
163.6
116.8
95.8
121.7
102.6
146.8
114.7
95.8
118.0
103.3
153.4
112.9
97.3
113.5
103.2
162.1
110.6
96.7
118.1
102.5
156.2
108.4
96.5
117.0
103.3
155.8
112.9
96.9
116.0
108.0
110.8
97.3
104.0
107.1
92.3
106.2
109.7
93.3
106.7
109.7
95.5
107.1
110.3
95.2
109.7
113.1
97.4
109.7
112.1
100.7
111.4
113.6
103.3
110.3
112.9
100.9
109.2
112.1
98.1
106.9
109.6
97.0
108.5
111.4
97.7
107.6
110.5
96.8
104.1
106.7
94.3
79.8
110.7
110.5
110.2
110.3
110.7
111.0
111.6
111.7
111.4
111.1
110.3
109.1
108.3
107.6
82.0
108.7
108.6
108.7
108.3
109.2
109.6
109.8
109.9
110.0
109.4
107.7
106.2
105.6
104.7
SPECIAL AGGREGATES
42 Manufacturing excluding
motor vehicles and
parts
43 Manufacturing excluding
office and computing
machines
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET
44 Products, total
1734.8 1,910.6 1,903.3 1,922.6 1,906.2 1,922.2 1,937.0 1,923.5 1,929.5 1,941.6 1,939.6 1,887.5 1,858.1 1,856.7 1,845.2
45 Final
46 Consumer goods
47 Equipment
48 Intermediate
1350.9 1,496.7 1,488.3 1,507.5 1,493.9 1,506.0 1,523.4 1,508.7 1,516.3 1,529.1 1,523.7 1,475.8 1,449.1 1,453.0 1,445.2
868.2 854.8 856.0 851.5
882.2 888.6 893.4 883.9 885.9 893.8 886.0 885.9 895.2 892.7
833.4
597.0 593.7
614.4
599.8 614.1 610.0 620.1 629.6 622.7 630.4 633.9 631.0 607.6 594.3
517.5
415.9
414.9
413.1
412.5
416.2
413.6
411.7 409.0 403.7 400.1
414.0 415.0 415.1 412.3
384.0
1. These data also appear in the Board's G. 17 (419) release. For requests see
address inside front cover.
A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
A50
Domestic Nonfinancial Statistics • May 1991
2.14 HOUSING AND CONSTRUCTION
M o n t h l y figures a r e at seasonally a d j u s t e d annual rates e x c e p t as noted.
1990
Item
1988
1989
1991
199C
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.'
Dec.'
Jan.
Private residential real estate activity (thousands of units)
N E W UNITS
1 Permits authorized
1-family
2
3 2-or-more-family
1,456
994
462
1,339
932
407
1,096
792
304
1,108
813
295
1,065
802
263
1,108
796
312
1,082
780
302
1,050
762
288
992
737
255
920
708
212
906
671
235
844
645
199
797
609
188
4 Started
5
1-family
6 2-or-more-family
1,488
1,081
407
1,376
1,003
373
1,193
895
298
1,217
901
316
1,208
897
311
1,187
890
297
1,155
876
279
1,131
835
2%
1,106
858
248
1,026
839
187
1,130
769
361
971
751
220
850
652
198
919
570
350
850
535
315
715
451
264
875r
558r
317
857
546
311
847'
538'
309
831'
528'
303'
790'
503'
287
766
497'
269'
756
486
270
747
479
268
726
467
259
1,530
1,085
445
1,423
1,026
3%
1,308
965
342
1,310'
943r
367'
1,351'
1,001'
350'
1,294'
950T
344'
1,312'
988'
324'
1,307'
950'
357'
1,314'
963'
351'
1,275'
345'
1,246
922
324
1,151
873
278
1,096
816
280
13 Mobile homes shipped
218
198
188
190
190
190
187
193
184
186
181
167
168
Merchant builder activity in
1-family units
14 Number sold
15 Number for sale, end of period1
675
368'
650
363'
536
319
534'
363
535'
359'
549'
354
541
350'
525'
345
504'
338
465'
334
486
327
465
319
408
316
7 Under construction, end of period' .
8
1-family
9 2-or-more-family
10 Completed
11
1-family
12 2-or-more-family
Price (thousands of dollars)2
Median
Units sold
Average
17 Units sold
16
815
517
298
93(Y
113.3
120.4
122.3
130.0
125.0
125.0
118.7
118.4
113.0
120.0
118.9
126.9
121.8
139.0
148.3
148.9
153.4
150.6
150.4
149.8
144.7
142.1
153.0'
143.6
152.2
156.2
18 Number sold
3,594
3,439
3,316
3,37(y
3,350'
3,370'
3,320'
3,410'
3,160'
3,070'
3,150
3,130
2,900
Price of units sold
(thousands of dollars)
19 Median
20 Average
89.2
112.5
92.y
118.0
95.2
118.3
95.7r
117.9'
95.2'
118.5'
98.9'
122.5'
98.1'
121.1'
97.2'
120.7'
94.4
116.8'
92.9
115.9
92.0
115.6
91.7
114.1
95.6
123.0
EXISTING UNITS (1-family)
Value of new construction3 (millions of dollars)
CONSTRUCTION
21 Total put in place
422,076 432,068
434,285
444,737
443,805
441,088
437,010
436,338
423,941
423,320
415,451
407,097
396,627
22 Private
23 Residential
24 Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other
28
Public utilities and other
327,102
198,101
129,001
333,514
196,551
136,963
324,599
187,130
137,469
338,780
200,234
138,546
333,992
196,055
137,937
329,556
189,462
140,094
331,269
187,083
144,186
323,518
184,409
139,109
317,516
179,713
137,803
311,397
176,824
134,573
301,629
169,531
132,098
295,805
165,531
130,274
291,934
161,303
130,631
14,931
58,104
17,278
38,688
18,506
59,389
17,848
41,220
20,563
54,630
18,824
43,452
21,039
55,765
18,227
43,515
20,847
54,698
18,379
44,013
20,405
56,581
19,272
43,836
23,609
56,951
19,792
43,834
20,239
55,347
19,801
43,722
19,862
53,648
20,267
44,026
19,616
51,996
19,634
43,327
19,548
49,656
19,444
43,450
20,788
49,346
18,499
41,641
21,037
47,892
19,148
42,554
94,971
3,579
30,140
4,726
56,526
98,551
3,520
29,502
4,969
60,560
109,685
3,792
31,987
4,736
69,170
105,957
5,057
29,714
4,979
66,207
109,813
5,459
30,658
5,504
68,192
111,532
5,868
30,311
3,958
71,395
105,741
3,308
28,775
4,460
69,198
112,820
2,888
31,865
4,776
73,291
106,425
2,543
31,322
3,482
69,078
111,923
2,401
33,398
4,944
71,180
113,822
2,821
35,460
5,067
70,474
111,292
2,328
33,759
5,516
69,689
104,693
2,275
27,309
5,592
69,517
29 Public
30 Military
31 Highway
32 Conservation and development...
33 Other
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in previous periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (1) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 16,000 jurisdictions
beginning with 1978.
Selected Measures
A51
2.15 CONSUMER AND PRODUCER PRICES
P e r c e n t a g e changes b a s e d o n seasonally a d j u s t e d d a t a , except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
Item
Change from 1 month earlier
1990
Feb.
1991
Feb.
Mar.
June
Sept.
Dec.
Oct.
Nov.
Index
level
Feb.
1991
1991
1990
1990
Dec.
Jan.
Feb.
CONSUMER PRICES
(1982-84=100)
All items
5.3
5.3
7.5
4.1
8.2
4.9
.6
.3
.3
.4
.2
134.8
Energy items
All items less food and energy
Commodities
Services
6.8
8.0
4.6
3.5
5.2
3.2
6.6
5.6
4.2
6.5
10.4
12.0
6.5
5.7
6.9
2.5
1.2
4.6
2.0
5.5
4.6
44.2
6.0
3.3
7.2
3.9
18.0
3.8
2.3
4.8
.4
4.2
.3
.2
.3
.4
.5
.3
.2
.4
.1
-.4
.4
.2
.4
.6
-2.4
.8
1.0
.7
-.2
-4.0
.7
1.0
.6
135.5
102.8
140.3
127.3
147.9
(1982=100)
7 Finished goods
8
Consumer foods
9
Consumer energy
10 Other consumer goods
11
Capital equipment
5.1
6.3
12.0
3.9
3.5
3.2
-.2
12.6
4.2
3.4
6.4
8.8
16.9
3.9
4.4
1.0
-1.6
-4.6
3.8
2.7
11.3
2.3
118.7
3.5
3.6
4.4
1.3
17.7
3.1
3.3
1.2
.6
9.1
.1
.2
.4
.2
.2
.7
.2
-.6
-.5
-4.7
.0
.3
-.1
-.3
-2.5
.8
.3
-.6
.2
-5.1
.5
.2
121.2
124.4
77.9
132.7
125.7
Intermediate materials3
Excluding energy
1.5
.1
2.8
1.8
1.4
1.0
.4
.7
13.4
4.0
3.8
2.0
1.6r
.3
.2'
.2
-.8
-.1
-.4
.1
-.9
-.1
115.7
122.2
2.6
14.7
-6.4
-5.6
.8
1.8
4.7
.5
3.7
-3.8
-39.2
13.5
-7.8
305.8
5.9
-5.3
-20.2
-18.5
18.8r
-1.4
-.7
-10.7
-1.6
-1.5
6.3
.3
.0
-15.9
.2
107.5
83.3
133.6
1
?
4
6
PRODUCER PRICES
17
13
Crude materials
14
15
16
Energy
Other
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
.y
-y
-10.9 r
-2.2
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
A52
Domestic Nonfinancial Statistics • May 1991
2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of c u r r e n t dollars e x c e p t as n o t e d ; quarterly data are at seasonally a d j u s t e d annual rates.
1989
Account
1988
1989
1990
1990
Q4
Ql
Q2
Q3
Q4
GROSS NATIONAL PRODUCT
4,873.7
5,200.8
5,463.6
5,289.3
5,375.4
5,443.3
5,514.6
5,521.3
3,238.2
457.5
1,060.0
1,720.7
3,450.1
474.6
1,130.0
1,845.5
3,658.6
480.9
1,194.1
1,983.5
3,518.5
471.2
1,148.8
1,898.5
3,588.1
492.1
1,174.7
1,921.3
3,622.7
478.4
1,179.0
1,965.3
3,693.4
482.3
1,205.0
2,006.2
3,730.0
470.8
1,217.9
2,041.3
747.1
720.8
488.4
139.9
348.4
232.5
771.2
742.9
511.9
146.2
365.7
231.0
741.9
746.1
523.7
147.1
376.6
222.4
762.7
737.7
511.8
147.1
364.7
225.9
747.2
758.9
523.1
148.8
374.3
235.9
759.0
745.6
516.5
147.2
369.3
229.1
759.7
750.7
532.8
149.8
383.0
217.9
701.8
729.3
522.6
142.5
380.1
206.7
26.2
29.8
28.3
23.3
-4.2
-6.2
25.0
24.1
-11.8
-17.0
13.4
13.0
9.0
6.8
-27.6
-27.6
14 Net exports of goods and services
15 Exports
16 Imports
-74.1
552.0
626.1
-46.1
626.2
672.3
-34.6
670.8
705.4
-35.3
642.8
678.1
-30.0
661.3
691.3
-24.9
659.7
684.6
-41.3
672.7
714.1
-42.3
689.4
731.7
17 Government purchases of goods and services
18 Federal
19 State and local
962.5
380.3
582.3
1,025.6
400.0
625.6
1,097.8
423.5
674.3
1,043.3
399.9
643.4
1,070.1
410.6
659.6
1,086.4
421.9
664.6
1,102.8
425.8
677.0
1,131.8
435.8
695.9
4,847.5
1,908.9
840.3
1,068.6
2,488.6
450.0
5,172.5
2,044.4
894.7
1,149.7
2,671.2
456.9
5,467.8
2,147.7
937.6
1,210.1
2,862.1
458.0
5,264.3
2,060.9
894.2
1,166.7
2,747.5
455.9
5,387.2
2,122.8
941.4
1,181.4
2,791.3
473.0
5,429.9
2,133.1
930.1
1,203.0
2,834.2
462.5
5,505.6
2,161.4
943.4
1,218.0
2,889.6
454.6
5,548.8
2,173.4
935.5
1,237.9
2,933.4
442.0
26.2
19.9
6.4
28.3
11.9
16.4
-4.2
-10.6
6.3
25.0
13.2
11.9
-11.8
-21.6
9.8
13.4
.0
13.4
9.0
98
-.8
-27.6
-30.5
2.9
4,016.9
4,117.7
4,156.3
4,133.2
4,150.6
4,155.1
4,170.0
4,149.5
30 Total
3,984.9
4,223.3
4,418.2
4,267.1
4,350.3
4,411.3
4,452.4
n.a.
31 Compensation of employees
32 Wages and salaries
Government and government enterprises
33
34
Other
35 Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income
2,905.1
2,431.1
446.6
1,984.5
474.0
248.5
225.5
3,079.0
2,573.2
476.6
2,096.6
505.8
263.9
241.9
3,244.2
2,705.3
508.0
2,197.3
538.9
280.8
258.1
3,128.6
2,612.7
486.7
2,126.0
515.9
268.4
247.5
3,180.4
2,651.6
497.1
2,154.5
528.8
276.0
252.8
3,232.5
2,696.3
505.7
2,190.6
536.1
279.7
256.4
3,276.9
2,734.2
511.3
2,222.9
542.7
282.7
260.0
3,287.1
2,739.2
518.1
2,221.1
548.0
284.8
263.2
354.2
310.5
43.7
379.3
330.7
48.6
402.2
352.4
49.7
381.7
336.0
45.7
404.0
346.6
57.4
401.7
350.8
51.0
397.9
355.6
42.4
405.0
356.8
48.3
1 Total
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
7 Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
13
Change in business inventories
Nonfarm
By major type of product
20 Final sales, total
21 Goods
22
Durable
23
Nondurable
24 Services
25
Structures
26 Change in business inventories
27 Durable goods
28 Nondurable goods
MEMO
29 Total GNP in 1982 dollars
NATIONAL INCOME
38 Proprietors' income1
39 Business and professional1
40 Farm1
41 Rental income of persons2
16.3
8.2
6.5
4.1
5.5
4.3
8.4
7.8
42 Corporate profits1
43 Profits before tax3
44 Inventory valuation adjustment
45 Capital consumption adjustment
337.6
316.7
-27.0
47.8
311.6
307.7
-21.7
25.5
298.7
307.4
-13.6
4.9
290.9
289.8
-14.5
15.6
296.8
296.9
-11.4
11.3
306.6
299.3
-.5
7.7
300.7
318.5
-19.8
2.0
n.a.
n.a.
-22.8
-1.5
46 Net interest
371.8
445.1
466.6
461.7
463.6
466.2
468.3
468.2
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
Summary Statistics
A53
2.17 PERSONAL INCOME AND SAVING
Billions of c u r r e n t dollars; quarterly d a t a are at seasonally a d j u s t e d annual rates. E x c e p t i o n s n o t e d .
1990
1989
1988
1989
1990r
Q4
Ql
Q2
Q3
Q4r
PERSONAL INCOME AND SAVING
1 Total personal income
4,070.8
4,384.3
4,645.1
4,469.2
4,562.8
4,622.2
4,678.5
4,716.7
2 Wage and salary disbursements
3 Commodity-producing industries
Manufacturing
4
5 Distributive industries
6
Service industries
7 Government and government enterprises
2,431.1
696.4
524.0
572.0
716.2
446.6
2,573.2
720.6
541.8
604.7
771.4
476.6
2,705.3
729.3
546.8
637.2
830.8
508.0
2,612.7
721.4
540.9
614.6
790.0
486.7
2,651.6
724.6
541.2
627.0
802.9
497.1
2,696.3
731.1
548.1
637.3
822.2
505.7
2,734.2
735.3
551.8
642.7
844.9
511.3
2,739.2
726.2
546.2
641.9
853.0
518.1
225.5
354.2
310.5
43.7
16.3
102.2
547.9
587.7
300.5
241.9
379.3
330.7
48.6
8.2
114.4
643.2
636.9
325.3
258.1
402.2
352.4
49.7
6.5
123.8
680.7
694.7
350.7
247.5
381.7
336.0
45.7
4.1
118.2
664.9
655.9
334.1
252.8
404.0
346.6
57.4
5.5
120.5
670.5
680.9
347.2
256.4
401.7
350.8
51.0
4.3
122.9
678.0
686.7
347.6
260.0
397.9
355.6
42.4
8.4
124.9
685.3
696.4
351.1
263.2
405.0
356.8
48.3
7.8
126.7
689.1
714.7
356.8
194.1
212.8
226.2
215.8
222.9
224.1
228.6
228.9
4,070.8
4,384.3
4,645.1
4,469.2
4,562.8
4,622.2
4,678.5
4,716.7
591.6
658.8
699.4
669.6
675.1
696.5
709.5
716.6
3,799.6
3,887.7
3,925.7
3,969.1
4,000.1
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income
Business and professional
Farm1
Rental income of persons
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits ..
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
19
LESS: Personal tax and nontax payments
20 EQUALS: Disposable personal income
3,479.2
3,725.5
3,945.6
21
3,333.6
3,553.7
3,767.3
3,625.5
3,696.4
3,730.6
3,802.6
3,839.5
145.6
171.8
178.4
174.1
191.3
195.1
166.5
160.6
16,302.4
10,578.3
11,368.0
4.2
16,550.2
10,678.5
11,531.0
4.6
16,532.6
10,669.8
11,507.0
4.5
16,546.0
10,688.2
11,541.0
4.6
16,575.9
10,692.1
11,586.0
4.9
16,554.2
10,672.5
11,564.0
5.0
16,560.8
10,710.1
11,511.0
4.2
16,433.7
10,601.6
11,370.0
4.0
LESS: Personal outlays
22 EQUALS: Personal saving
MEMO
Per capita (1982 dollars)
23 Gross national product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
27 Gross saving
656.1
691.5
656.2
674.8
664.8
679.3
665.9
n.a.
28
29
30
31
751.3
145.6
91.4
-27.0
779.3
171.8
53.0
-21.7
783.8
178.4
29.8
-13.6
786.4
174.1
39.8
-14.5
795.0
191.3
36.7
-11.4
806.7
195.1
40.5
-.5
772.2
166.5
26.5
-19.8
n.a.
160.6
n.a.
-22.8
322.1
192.2
346.4
208.0
363.1
212.6
356.5
216.0
356.7
210.3
359.7
211.4
365.5
213.8
370.3
214.8
-95.3
-141.7
46.5
-87.8
-134.3
46.4
-127.6
-163.9
36.2
-111.6
-150.1
38.5
-130.2
-168.3
38.1
-127.3
-166.0
38.6
-106.4
-145.7
39.3
627.8
674.4
653.1
671.8
665.6
676.1
661.0
609.9
747.1
-119.2
771.2
-96.8
741.9
-88.8
762.7
-90.9
747.2
-81.6
759.0
-82.9
759.7
-98.7
701.8
-91.8
-28.2
-17.0
-3.1
-3.0
.7
-3.2
-4.9
Gross private saving
Personal saving
Undistributed corporate profits
Corporate inventory valuation adjustment
Capital consumption allowances
32 Corporate
33 Noncorporate
34 Government surplus, or deficit ( - ) , national income and
product accounts
Federal
State and local
35
36
37 Gross investment
38 Gross private domestic
39 Net foreign
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments,
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
n.a.
n.a.
n.a.
n.a.
A54
Domestic Nonfinancial Statistics • May 1991
3.10 U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly data are seasonally a d j u s t e d e x c e p t as n o t e d . 1
1990
1989
Item credits or debits
1 Balance on current account
2 Not seasonally adjusted
Merchandise trade balance
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
1988
1989
1990
-128,862
-110,035
-99,297
-126,986
320,337
-447,323
-5,452
1,610
16,971
-4,261
-10,744
-114,864
360,465
-475,329
-6,319
-913
26,783
-3,758
-10,963
-108,680
389,286
-497,966
-6,414
7,534
29,337
-4,101
-16,972
Q4
Q1
Q2
Qy
Q4"
-26,692
-27,926
-28,746
91,738
-120,484
-1,776
561
7,900
-889
-3,742
-22,320'
-18,327'
-26,809'
%,093'
-122,902'
-1,287
2,004'
7,212'
-1,038'
-2,402
-22,733'
-20,987
-23,225'
%,585'
-119,810'
-1,382
-990'
7,286'
-921'
-3,501
-26,481
-30,672
-29,785
96,152
-125,937
-1,705
2,256
6,852
-1,106
-2,993
-27,762
-29,311
-28,861
100,456
-129,317
-2,042
4,265
7,988
-1,037
-8,075
2,969
1,185
2,971
-47
-659
-360
4,797
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
-3,912
-25,293
-2,158
-3,202
-3,177
371
1,739
-1,092
127
1,025
-5,064
-535
471
-25,229
-192
731
-2,697
-204
-23
-2,975
-247
234
-3,164
-216
493
363
8
1,368
-93
-4
-995
17 Change in U.S. private assets abroad (increase, - ) .
18 Bank-reported claims3
19 Nonbank-reported claims
20 U.S. purchase of foreign securities, net
21 U.S. direct investments abroad, net
-83,232
-56,322
-2,847
-7,846
-16,217
-102,953
-50,684
1,391
-21,938
-31,722
-62,062
816
-45,4%
-32,658
47
-4,109
-8,776
36,741'
52,353
1,202
-7,496
-9,318'
-31,257'
-13,639
-1,550
-11,247
-4,821'
-33,273
-13,489
625
-1,223
-19,186
-34,273
-24,409
22 Change in foreign official assets in United States (increase, +) ..
23
U.S. Treasury securities
24 Other U.S. government obligations
25 Other U.S. government liabilities4
26 Other U.S. liabilities reported by U.S. banks3
27 Other foreign official assets
39,515
41,741
1,309
-710
-319
-2,506
8,823
333
1,383
332
4,940
1,835
30,778
28,704
667
1,486
1,495
-1,574
-7,016
-7,342
569
412
19,851
20,101
708
979
-126
1,871
-273
-1,016
165
5,541
2,442
346
1,089
1,918
-254
13,588
12,058
134
-820
-8,203
-5,897
-521
-381
-1,278
28 Change in foreign private assets in United States (increase, + ) . .
29 U.S. bank-reported liabilities'
30 U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in United States, net
181,926
70,235
6,664
20,239
26,353
58,435
205,829
61,199
2,867
29,951
39,568
72,244
56,766
19,786
76,336
36,674
1,732
5,671
10,793
21,466
-24,786
-32,264
290
-835
2,486
5,537
19,954
4,897
1,317
3,614
2,890
7,236
42,543
27,591
4,425
312
-1,670
11,885
19,055
19,562
34 Allocation of SDRs
35 Discrepancy
36 Owing to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment
0
0
0
0
0
-26,785
-36,370
1,144
4,0%
25,708
0
0
0
0
0
0
0
0
-202
0
0
-6,819
-3,045
-921
— i ,947
390
1,050
0
-8,404
22,443
73,002
6,117
3,560
22,404'
3,023'
28,932'
-767'
2,244
-4,980
19,424
2,726
-8,404
22,443
73,002
2,558
19,381'
29,699
7,224
16,698
-3,912
-25,293
-2,158
-3,202
-3,177
371
1,739
-1,092
40,225
8,491
29,292
-7,428
-7,822
4,452
13,790
18,872
-2,996
10,713
1,902
-1,379
2,953
208
-1,600
341
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in United States (increase, +)
excluding line 25
40 Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22
above)
38
39
1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-40.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise data and are included in line 6.
3. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).
Summary Statistics
A55
U.S. FOREIGN TRADE 1
3.11
Millions of dollars; monthly data are seasonally adjusted.
1990
Item
1988
1989
1991
1990r
July
Aug.
Sept.
Oct.
Nov.
Dec/
Jan."
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value
322,427
363,812
393,894
32,125
32,549
32,010
35,006
34,194
33,305
34,493
GENERAL IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses
Customs value
440,952
473,211
494,903
41,244
42,283
41,337
45,994
43,106
39,582
41,489
-118,526
-109,399
-101,010
-9,119
-9,734
-9,326
10,988
-8,912
-6,277
-6,996
2
Trade balance
Customs value
3
1. The Census basis data differ from merchandise trade data shown in table
3.10, U.S. International Transactions Summary, for reasons of coverage and
timing. On the export side, the largest adjustment is the exclusion of military sales
(which are combined with other military transactions and reported separately in
the "service account" in table 3.10, line 6). On thc import side, additions are made
for gold, ship purchases, imports of electricity from Canada, and other transac-
tions; military payments are excluded and shown separately as indicated above.
As of Jan. 1, 1987 census data are released 45 days after the end of the month; the
previous month is revised to reflect late documents. Total exports and the trade
balance reflect adjustments for undocumented exports to Canada.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1990
Type
1 Total
1987
1988
1991
1989
Aug.
Sept.
Oct.
Nov.
Dec.
83,059
83,340
85,006
82,797
Feb."
45,798
47,802
74,609
78,909
80,024
82,852
11,078
11,057
11,059
11,065
11,063
11,060
11,059
11,058
11,058
11,058
10,283
9,637
9,951
10,780
10,666
10,876
11,059
10,989
10,922
10,958
2 Gold stock, including Exchange
Stabilization Fund1
3
Special drawing rights2,3
4
Reserve
position
in International
Monetary
Fund
11,349
9,745
9,048
8,890
8,881
9,066
8,871
9,076
9,468
9,556
5
Foreign currencies4
13,088
17,363
44,551
48,174
49,414
51,850
52,070
52,217
53,558
51,225
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position
in the IMF also are valued on this basis beginning July 1974.
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1990
Assets
1987
1988
Aug.
1 Deposits
Assets held in custody
2 U.S. Treasury securities2
3 Earmarked gold
Sept.
Oct.
Nov.
Dec.
Jan.
Feb."
244
347
589
337
360
297
264
369
271
329
195,126
13,919
232,547
13,636
224,911
13,456
261,051
13,412
261,321
13,419
266,749
13,415
272,399
13,389
278,499
13,387
286,722
13,377
286,471
13,382
1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies at face value.
1991
1989
3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce,
Earmarked gold is gold held for foreign and international accounts and is not
included in the gold stock of the United States.
A56
3.14
International Statistics • May 1991
FOREIGN BRANCHES OF U.S. B A N K S
Balance Sheet Data 1
Millions of dollars, e n d of period
1990
July
Aug.
Sept.
1991
Oct.
Nov.
Dec.
Jan.
All foreign countries
1 Total, all currencies
2 Claims on United States
3 Parent bank
4 Other banks in United States
5 Nonbanks
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
11 Other assets
518,618
505,595
545,366
531,418
551,346
546,140
552,510
558,391'
556,586'
563,244
138,034
105,845
16,416
15,773
342,520
122,155
108,859
21,832
89,674
169,111
129,856
14,918
24,337
299,728
107,179
96,932
17,163
78,454
198,835
157,092
17,042
24,701
300,575
113,810
90,703
16,456
79,606
174,583
133,682
15,239
25,662
304,674
115,353
85,911
16,264
87,146
178,236
137,558
14,500
26,178
313,831
121,705
88,768
16,157
87,201
182,561'
140,865
14,272'
27,424
311,248'
123,359
83,305'
16,379
88,205
177,539
135,536
13,261
28,742
319,318
128,747
82,706
16,335
91,530
180,761'
140,135'
12,927
27,699'
322,962'
135,177'
81,385'
16,588
89,812'
188,159'
148,SOC
13,296
26,363
312,347
134,567
72,985
17,501
87,294
183,245
140,752
14,541
27,952
321,352
132,466
80,442
18,407
90,037
38,064
36,756
45,956
52,161
59,279
52,331
55,653
54,668
56,080'
58,647
12 Total payable in U.S. dollars
350,107
357,573
382,498
346,428r
358,007'
360,178'
362,505'
371,518'
378,823'
379,043
13 Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
20 Public borrowers
21 Nonbank foreigners
132,023
103,251
14,657
14,115
202,428
88,284
63,707
14,730
35,707
163,456
126,929
14,167
22,360
177,685
80,736
54,884
12,131
29,934
191,184
152,294
16,386
22,504
169,690
82,949
48,396
10,961
27,384
166,294
128,066
14,375
23,853
158,247r
79,241
38,815
10,652
29,539'
169,714
131,994
13,513
24,207
163,490'
82,564
40,733
10,939
29,254'
173,984'
135,068
13,422'
25,494
163,994'
84,378
39,413'
11,166
29,037'
168,956
129,850
12,441
26,665
168,722'
90,198
37,531
11,201
29,792'
172,159'
134,269'
12,078
25,812
174,774'
95,599
37,740
11,199
30,236'
179,837'
142,625'
12,513
24,699
174,090'
94,939
36,439
12,297
30,415'
175,163
135,047
13,739
26,377
179,402
93,488
40,708
13,135
32,071
15,656
16,432
21,624
21,887
24,803
22,200
24,827
24,585'
24,896'
24,478
22 Other assets
United Kingdom
23 Total, all currencies
158,695
156,835
161,947
175,254
184,933
178,484
184,660
188,182
184,818'
184,817
24 Claims on United States
25 Parent bank
26 Other banks in United States
27 Nonbanks
28 Claims on foreigners
29 Other branches of parent bank
30 Banks
31 Public borrowers
32 Nonbank foreigners
32,518
27,350
1,259
3,909
115,700
39,903
36,735
4,752
34,310
40,089
34,243
1,123
4,723
106,388
35,625
36,765
4,019
29,979
39,212
35,847
1,058
2,307
107,657
37,728
36,159
3,293
30,477
40,418
36,564
894
2,960
114,254
41,181
35,085
3,619
34,369
40,092
36,140
1,037
2,915
118,423
43,581
37,623
3,757
33,462
42,574'
39,042
723'
2,809
114,863'
44,408
34,088'
3,639
32,728
39,862
35,904
694
3,264
122,203
47,390
35,480
3,521
35,812
42,301
38,453
1,088
2,760
124,077
49,499'
36,135'
3,675
34,768
45,560
42,413
792
2,355
115,536
46,367
31,604
3,860
33,705
40,197
36,533
1,095
2,569
121,077
47,857
33,624
3,953
35,643
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36 Parent bank
37 Other banks in United States
38 Nonbanks
39 Claims on foreigners
40 Other branches of parent bank
Banks
41
42 Public borrowers
43 Nonbank foreigners
44 Other assets
10,477
10,358
15,078
20,582
26,418
21,047
22,595
21,804
23,722'
23,543
100,574
103,503
103,208
102,803
106,891
106,899
109,950
115,182'
116,762'
114,413
30,439
26,304
1,044
3,091
64,560
28,635
19,188
3,313
13,424
38,012
33,252
964
3,796
60,472
28,474
18,494
2,840
10,664
36,404
34,329
843
1,232
59,062
29,872
16,579
2,371
10,240
36,230
33,716
681
1,833
58,278
31,220
13,621
2,839
10,598
35,979
33,585
721
1,673
60,390
32,976
14,570
2,896
9,948
37,997'
36,024
466'
1,507
59,811'
33,990
13,206'
2,866
9,749
35,429
33,145
419
1,865
63,720
37,069
13,571
2,790
10,290
37,668
35,614
611
1,443
66,876
39,630
13,915
2,862
10,469
41,259
39,609
334
1,316
63,701
37,142
13,135
3,143
10,281
36,120
33,754
771
1,595
67,996
38,120
14,479
3,242
12,155
5,575
5,019
7,742
8,295
10,522
9,091
10,801
10,638'
11,802'
10,297
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47
Parent bank
48 Other banks in United States
49 Nonbanks
50 Claims on foreigners
51 Other branches of parent bank
52 Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
160,321
170,639
176,006
145,813
150,695
153,234
153,497
153,615
161,977'
166,553
85,318
60,048
14,277
10,993
70,162
21,277
33,751
7,428
7,706
105,320
73,409
13,145
18,766
58,393
17,954
28,268
5,830
6,341
124,205
87,882
15,071
21,252
44,168
11,309
22,611
5,217
5,031
99,918
64,748
13,412
21,758
38,393
11,785
16,761
4,307
5,540
103,521
68,507
12,625
22,389
39,595
12,031
17,543
4,554
5,467
106,574
70,145
12,539
23,890
39,573
11,638
18,076
4,818
5,041
106,977
70,845
11,605
24,527
38,062
12,152
15,994
4,876
5,040
106,517
71,249
11,007
24,261
38,611
12,697
16,244
4,772
4,898
112,652'
77,536'
11,869
23,247
41,354
13,416
16,309
5,806
5,823
115,060
77,604
12,877
24,579
42,800
12,292
18,343
6,527
5,638
4,841
6,926
7,633
151,434
163,518
170,780
1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
7,502
7,579
7,087
8,458
8,487
7,971
141,303'
146,441'
149,583'
149,239'
149,519'
158,051'
8,693
161,705
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
Summary Statistics
A57
3.14—Continued
1990
Liability account
1987
1988
1991
1989
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
All foreign countries
57 Total, all currencies
518,618
505,595
545,366
531,418
551,346
546,140
552,510
558,391'
556,586'
563,244
58 Negotiable CDs
59 To United States
60
Parent bank
61
Other banks in United States
Nonbanks
62
30,929
161,390
87,606
20,355
53,429
28,511
185,577
114,720
14,737
56,120
23,500
197,239
138,412
11,704
47,123
21,805
163,275
105,401
9,454
48,420
22,917
167,410
109,818
10,264
47,328
21,977
172,884r
117,352
8,976
46,556r
22,089
167,543
113,066
7,984
46,493
21,521
171,358r
115,396''
9,140
46,822
18,060
189,074'
138,684'
7,463'
42,927
19,106
185,528
133,708
9,341
42,479
63 To foreigners
Other branches of parent bank
64
65
Banks
66
Official institutions
Nonbank foreigners
67
68 Other liabilities
304,803
124,601
87,274
19,564
73,364
21,496
270,923
111,267
72,842
15,183
71,631
20,584
296,850
119,591
76,452
16,750
84,057
27,777
314,503
119,476
78,190
19,468
97,369
31,835
321,365
124,393
79,485
17,801
99,686
39,654
317,202'
125,382
75,351'
17,475
98,994
34,077
327,139
131,045
75,815
18,436
101,843
35,739
328,534
137,849
72,352
17,996
100,337
36,978
311,663
138,799
58,981
14,776
99,107
37,789'
319,811
131,899
70,208
17,343
100,361
38,799
69 Total payable in U.S. dollars
361,438
367,483
396,613
355,782
365,928
364,940
363,931
372,124
382,952'
383,364
70 Negotiable CDs
71 To United States
77
Parent bank
73
Other banks in United States
Nonbanks
74
26,768
148,442
81,783
18,951
47,708
24,045
173,190
107,150
13,468
52,572
19,619
187,286
132,563
10,519
44,204
16,519
150,943
98,928
7,884
44,131
17,588
155,171
103,355
8,791
43,025
17,219
159,027
109,458
7,501
42,068
17,022
153,318
104,619
6,486
42,213
16,845
156,779
106,828
7,686
42,265
14,094
175,375'
130,505'
6,052'
38,818
15,141
171,438
125,657
7,627
38,154
75 To foreigners
76
Other branches of parent bank
Banks
77
Official institutions
78
79
Nonbank foreigners
80 Other liabilities
177,711
90,469
35,065
12,409
39,768
8,517
160,766
84,021
28,493
8,224
40,028
9,482
176,460
87,636
30,537
9,873
48,414
13,248
174,616
81,332
28,045
10,613
54,626
13,704
177,484
84,157
28,945
9,710
54,672
15,685
175,725
85,303
26,576
9,346
54,500
12,969
178,969
89,658
23,669
9,689
55,953
14,622
183,461
95,556
25,022
9,091
53,792
15,039
178,707
97,833
20,266
7,906
52,702
14,776'
181,824
94,464
23,667
10,585
53,108
14,961
United Kingdom
158,695
156,835
161,947
175,254
184,933
184,660
188,182
184,818'
184,817
87 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States
Nonbanks
86
26,988
23,470
13,223
1,536
8,711
24,528
36,784
27,849
2,037
6,898
20,056
36,036
29,726
1,256
5,054
17,795
32,320
21,952
1,626
8,742
18,703
33,365
23,399
1,535
8,431
17,542
35,485'
25,461
1,765
8,259'
17,557
32,143
22,013
1,430
8,700
17,144
36,500
26,165
1,671
8,664
14,256
39,928
31,806
1,505
6,617
14,872
34,389
25,548
1,861
6,980
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
98,689
33,078
34,290
11,015
20,306
9,548
86,026
26,812
30,609
7,873
20,732
9,497
92,307
27,397
29,780
8,551
26,579
13,548
107,533
28,944
32,420
11,314
34,855
17,606
109,372
28,967
34,647
9,902
35,856
23,493
106,494'
30,487
30,1ll r
9,578
36,318
18,963
114,959
32,357
33,870
10,788
37,944
20,001
113,958
34,406
32,844
9,534
37,174
20,580
108,531
36,709
25,141
8,346
38,335
22,103'
113,754
34,547
31,765
10,368
37,074
21,802
81 Total, all currencies
178,484
102,550
105,907
108,178
104,372
108,532
107,216
108,064
114,090
116,153'
114,367
94 Negotiable CDs
95 To United States
%
Parent bank
97
Other banks in United States
Nonbanks
98
24,926
17,752
12,026
1,308
4,418
22,063
32,588
26,404
1,752
4,432
18,143
33,056
28,812
1,065
3,179
14,831
27,967
21,208
1,175
5,584
15,758
28,779
22,423
1,228
5,128
15,502
30,368
23,963
1,471
4,934
15,237
26,867
20,334
1,035
5,498
15,100
31,117
24,381
1,318
5,418
12,710
34,756
30,014
1,156
3,586
13,387
29,114
23,945
1,324
3,845
99 To foreigners
100 Other branches of parent bank
101
Banks
107
Official institutions
103 Nonbank foreigners
104 Other liabilities
55,919
22,334
15,580
7,530
10,475
3,953
47,083
18,561
13,407
4,348
10,767
4,173
50,517
18,384
12,244
5,454
14,435
6,462
54,591
17,408
11,251
6,515
19,417
6,983
55,252
17,347
13,042
5,463
19,400
8,743
54,679
18,560
11,116
5,324
19,679
6,667
57,639
20,797
10,465
5,751
20,626
8,321
59,787
23,288
11,911
5,000
19,588
8,086
60,014
25,957
9,503
4,677
19,877
8,673'
63,702
24,954
11,539
7,158
20,051
8,164
93 Total payable in U.S. dollars
Bahamas and Caymans
105 Total, all currencies
160,321
170,639
176,006
145,813
150,695
153,234
153,497
153,615
161,977'
166,553
106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States
110 Nonbanks
885
113,950
53,239
17,224
43,487
953
122,332
62,894
11,494
47,944
678
124,859
75,188
8,883
40,788
548
95,904
51,415
6,228
38,261
553
100,622
56,092
7,039
37,491
553
104,211
62,276
5,398
36,537
560
103,545
62,474
4,959
36,112
561
103,852
61,227
5,798
36,827
646
114,400'
74,877'
4,526'
34,997
654
119,907
80,157
5,655
34,095
43,815
19,185
10,769
1,504
12,357
1,671
45,161
23,686
8,336
1,074
12,065
2,193
47,382
23,414
8,823
1,097
14,048
3,087
47,010
24,560
8,120
999
13,331
2,351
46,922
24,965
7,469
943
13,545
2,598
46,237
24,781
7,519
731
13,206
2,233
46,867
25,864
6,794
703
13,506
2,525
46,299
25,579
6,569
763
13,388
2,903
44,444
24,715
5,588
622
13,519
2,487
42,883
23,099
6,069
811
12,904
3,109
152,927
162,950
171,250
140,377
145,670
148,589
147,749
147,962
156,793'
161,365
111 To foreigners
11? Other branches of parent bank
113 Banks
114 Official institutions
115
Nonbank foreigners
116 Other liabilities
117 Total payable in U.S. dollars
A58
International Statistics • May 1991
3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, e n d of p e r i o d
1990
Item
1 Total1
2
3
4
5
6
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable
U.S. securities other than U.S. Treasury securities
By area
7 Western Europe1
8
9 Latin America and Caribbean
10
11
12 Other countries6
1988
1991
1989
July
Aug.
Sept.
Oct.
Nov/
Dec/
Jan."
304,132
312,472
312,691
321,418
323,834
329,623
340,625
343,920
350,757
31,519
103,722
36,496
76,985
38,986
72,690
40,501
72,803
39,842
72,472
44,146
72,457
43,059
80,220
39,312
78,493
40,222
82,520
152,429
523
15,939
179,264
568
19,159
178,740
3,668
18,607
185,534
3,692
18,888
189,334
3,717
18,469
190,716
3,741
18,563
195,487
3,765
18,094
203,367
4,491
18,257
205,615
4,521
17,879
123,752
9,513
10,030
151,887
1,403
7,548
133,417
9,482
8,740
153,338
1,030
6,469
149,845
8,415
9,973
135,695
917
7,848
152,777
11,083
11,190
137,008
1,697
7,665
156,432
10,171
11,406
136,383
1,383
8,058
163,383
8,903
11,244
137,082
1,305
7,707
169,472
8,639
14,080
139,381
1,404
7,650
171,311
8,598
15,639
138,208
1,433
8,029
172,098
8,116
16,138
143,523
1,607
8,570
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies; zero coupon bonds are included at
current value.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on data and on data reported to the Treasury Department by
banks (including Federal Reserve Banks) and securities dealers in the United
States and on the 1984 benchmark survey of foreign portfolio investment in the
United States.
3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies1
Millions of dollars, e n d of period
1990
Item
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers
1987
55,438
51,271
18,861
32,410
551
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
1988
74,980
68,983
25,100
43,884
364
1989
67,822
65,127
20,491
44,636
3,507
Mar.
June
Sept.
Dec.
63,244
61,100
21,590
39,510
1,649
68,547
66,655
20,256
46,399
1,501
69,683
67,965
23,734
44,231
2,843
69,102
66,071
25,488
40,582
6,563
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.
Nonbank-Reported
3.17 LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Data
Reported by Banks in the United States1
Millions of dollars, e n d of period
1990
1991
1990'
Holder and type of liability
July
Aug.
Sept.
Oct.
Nov/
Dec/
Jan."
1 Ail foreigners
685,339
736,663
757,863
719,860
737,890
741,998
750,222
747,506
757,863
756,612
2 Banks' own liabilities
3 Demand deposits
4 Time deposits
5 Other5
6 Own foreign offices4
514,532
21,863
152,164
51,366
289,138
577,283
22,030
168,735
67,700
318,818
579,764
21,734
167,801
67,307
322,922
554,516
19,723
153,533
67,214
314,046
570,277
20,505
156,254
74,923
318,594
572,174
22,086
158,638
66,373
325,077
576,823
20,320
158,345
74,426
323,731
564,319
19,679
162.176
72,287
310.177
579,764
21,734
167,801
67,307
322,922
571,313
19,684
159,769
76,671
315,190
170,807
115,056
159,380
91,100
178,100
98,383
165,344
91,884
167,614
93,038
169,823
91,464
173,400
94,971
183,187
101,430
178,100
98,383
185,299
106,018
16,426
39,325
19,526
48,754
17,273
62,444
17,596
55,864
16,983
57,593
17,198
61,162
17,681
60,747
18,294
63,464
17,273
62,444
17,836
61,445
11 Nonmonetary international and regional
organizations
3,224
4,772
5,608
4,112
4,290
5,206
4,507
5,273
5,608
7,501
12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 Other.
2,527
71
1,183
1,272
3,156
96
927
2,133
4,230
36
1,023
3,172
2,790
46
938
1,807
2,330
39
1,303
987
3,894
101
1,245
2,548
3,472
57
885
2,529
3,128
33
773
2,322
4,230
36
1,023
3,172
6,024
67
1,574
4,382
698
57
1,616
197
1,378
364
1,322
148
1,959
1,095
1,311
479
1,034
248
2,145
1,077
1,378
364
1,478
423
641
1,417
2
1,014
0
1,159
15
819
45
817
15
782
5
1,022
46
1,014
0
1,005
50
135,241
113,481
117,806
111,676
113,304
112,313
116,602
123,278
117,806
122,743
27,109
1,917
9,767
15,425
31,108
2,1%
10,495
18,417
34,516
1,940
13,783
18,793
35,239
1,516
11,290
22,433
36,465
1,914
11,039
23,512
35,877
2,498
11,187
22,192
39,358
2,121
11,100
26,137
37,953
1,784
12,800
23,370
34,516
1,940
13,783
18,793
36,330
1,686
11,323
23,321
25 Banks' custody liabilities5
26 U.S. Treasury bills and certificates6
27 Other negotiable and readily transferable
instruments7
28 Other
108,132
103,722
82,373
76,985
83,290
78,493
76,437
72,690
76,839
72,803
76,436
72,472.
77,244
72,457
85,325
80,220
83,290
78,493
86,413
82,520
4,130
280
5,028
361
4,594
203
3,5%
150
3,685
351
3,676
289
4,361
427
4.725
380
4,594
203
3,712
180
29 Banks10
459,523
515,229
539,920
507,243
524,512
529,813
528,751
522,381
539,920
526,123
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits2
34
Other3
35 Own foreign offices4
409,501
120,362
9,948
80,189
30,226
289,138
454,227
135,409
10,279
90,557
34,573
318,818
460,890
137,968
10,048
88,948
38,972
322,922
433,379
119,334
9,224
74,103
36,007
314,046
449,097
130,502
9,797
77,585
43,120
318,594
451,339
126,262
10,405
80,214
35,643
325,077
450,961
127,230
8,989
80,350
37,892
323,731
441,321
131,144
8,995
83,654
38,495
310,177
460,890
137,968
10,048
88,948
38,972
322,922
447,658
132,469
8,985
81,814
41,670
315,190
36 Banks' custody liabilities5
37 U.S. Treasury bills and certificates6
38 Other negotiable and readily transferable
instruments7
39 Other
50,022
7,602
61,002
9,367
79,030
12,965
73,864
13,964
75,416
13,855
78,474
13,009
77,790
13,646
81,060
13,517
79,030
12,%5
78,465
12,840
5,725
36,694
5,124
46,510
5,356
60,710
5,759
54,141
5,366
56,195
6,187
59,278
5,842
58,302
5,841
61,701
5,356
60,710
6,076
59,549
40 Other foreigners
87,351
103,182
94,530
96,828
95,784
94,666
100,362
%,574
94,530
100,245
41 Banks' own liabilities
42 Demand deposits
43 Time deposits
44 Other3
75,396
9.928
61,025
4,443
88,793
9,459
66,757
12,577
80,128
9,710
64,048
6,370
83,107
8,937
67,202
6,968
82,385
8,755
66,326
7,304
81,063
9,082
65,992
5,990
83,031
9,153
66,010
7,868
81,916
8,868
64,948
8,100
80,128
9,710
64,048
6,370
81,301
8,945
65,058
7,298
45 Banks' custody liabilities5
46 U.S. Treasury bills and certificates6
47 Other negotiable and readily transferable
instruments
48 Other
11,956
3,675
14,389
4,551
14,402
6,561
13,721
5,082
13,400
5,285
13,602
5,504
17,331
8,621
14,658
6,616
14,402
6,561
18,944
10,235
5.929
2,351
7,958
1,880
6,310
1,531
7,082
1,558
7,113
1,001
6,518
1,580
6,697
2,013
6,705
1,336
6,310
1,531
7,043
1,667
7,203
7,022
5,909
5,713
6,346
6,199
6,466
7,022
6,%3
7 Banks' custody liabilities5
..
8
U.S. Treasury bills and certificates
9
Other negotiable and readily transferable
instruments
10 Other
16 Banks' custody liabilities5
17 U.S. Treasury bills and certificates6
18 Other negotiable and readily transferable
instruments
19 Other
9
20 Official institutions
21 Banks' own liabilities
22 Demand deposits
23 Time deposits
24 Other
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners
0
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies, or wholly owned subsidiaries of head office or parent
foreign bank.
5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks. Data exclude "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."
A59
A60
International Statistics • May 1991
3.17—Continued
1991
1990
Area and country
1988
1989
1990'
July
Aug.
Sept.
Oct.
Nov.
Dec.'
Jan."
1 Total
685,339
736,663
757,863
719,860
737,890
741,998
750,222
747,506'
757,863
756,612
2 Foreign countries
682,115
731,892
752,255
715,747
733,601
736,792
745,716
742,233'
752,255
749,111
231,912
1,155
10,022
2,200
285
24,777
6,772
672
14,599
5,316
1,559
903
5,494
1,284
34,199
1,012
111,811
529
8,598
138
591
237,489
1,233
10,648
1,415
570
26,903
7,578
1,028
16,169
6,613
2,401
2,407
4,364
1,491
34,496
1,818
102,362
1,474
13,563
350
608
255,072
1,229
12,407
1,412
602
30,927
7,386
934
17,918
5,375
2,358
2,958
7,694
1,837
36,944
1,133
109,525
928
11,839
119
1,546
236,010
1,498
10,598
2,581
485
23,110
7,671
877
17,114
5,972
1,793
3,073
4,922
1,586
33,557
1,654
100,934
2,436
14,619
194
1,335
245,188
1,544
11,537
2,238
463
24,201
7,605
923
17,117
6,209
2,192
2,934
4,447
1,495
34,545
1,897
108,181
2,272
14,057
56
1,275
244,157
1,436
12,126
2,055
392
29,116
7,845
1,435
16,361
5,385
1,951
2,992
4,343
833
34,637
1,634
104,676
2,043
13,145
240
1,515
245,830
1,401
12,207
1,984
660
29,128
8,439
993
16,984
6,082
1,875
2,970
5,312
1,706
34,463
1,451
100,961
1,753
15,934
234
1,294
247,403'
1,385
11,509'
1,781
422
29,196'
8,196'
949
16,225'
6,056
2,330
2,959'
7,347
2,304
34,034'
1,358
103,032'
1,571
15,141'
220
1,388
255,072
1,229
12,407
1,412
602
30,927
7,386
934
17,918
5,375
2,358
2,958
7,694
1,837
36,944
1,133
109,525
928
11,839
119
1,546
248,228
1,616
12,392
1,128
507
29,248
8,352
895
16,334
5,683
2,181
2,877
8,964
1,257
36,790
1,127
102,572
1,030
13,008
196
2,072
3 Europe
4
Austria
Belgium-Luxembourg
5
6
Denmark
7
Finland
8
France
9
Germany
10 Greece
11
Italy
12 Netherlands
n
Norway
14 Portugal
IS
Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20
Yugoslavia
Other Western Europe1
21
??. U.S.S.R
Other Eastern Europe
23
21,062
18,865
20,332
20,056
21,122
20,796
19,654
20,679
20,332
19,868
25 Latin America and Caribbean
26
Argentina
Bahamas
27
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32 Colombia
33
Cuba
Ecuador
34
35
Guatemala
36 Jamaica
Mexico
37
38
Netherlands Antilles
39 Panama
40
Peru
Uruguay
41
42. Venezuela
Other
43
271,146
7,804
86,863
2,621
5,314
113,840
2,936
4,374
10
1.379
1,195
269
15,185
6,420
4,353
1,671
1,898
9,147
5,868
310,948
7,304
99,341
2,884
6,334
138,263
3,212
4,653
10
1,391
1,312
209
15,423
6,310
4,361
1,984
2,284
9,468
6,206
329,737
7,366
107,313
2,809
5,853
143,438
3,145
4,492
11
1,379
1,541
257
16,793
7,381
4,574
1,295
2,520
12,793
6,779
316,656
8,163
98,292
2,824
6,083
142,722
3,540
4,474
15
1,349
1,523
209
16,070
6,409
4,388
1,405
2,560
9,830
6,803
320,056
7,844
101,635
2,656
6,329
142,050
3,491
4,344
11
1,348
1,496
213
16,325
6,429
4,648
1,369
2,531
10,435
6,901
325,927
7,981
108,280
2,739
6,058
140,947
3,135
3,926
10
1,348
1,517
217
16,486
6,558
4,632
1,362
2,512
11,107
7,113
333,603
7,717
110,155
2,482
5,892
146,477
3,170
4,284
49
1,314
1,485
219
16,465
7,126
4,592
1,360
2,512
11,351
6,951
321,498'
7,664'
97,696'
2,518
6,470'
144,489'
3,422
4,251
9
1,310
1,478
228
16,501
7,350'
4,644
1,327
2,446
13,001'
6,693
329,737
7,366
107,313
2,809
5,853
143,438
3,145
4,492
11
1,379
1,541
257
16,793
7,381
4,574
1,295
2,520
12,793
6,779
334,182
7,659
104,312
3,139
5,915
150,257
3,193
4,479
18
1,359
1,564
237
17,046
7,100
4,337
1,347
2,595
12,551
7,073
44
147,838
156,201
138,037
134,134
137,793
136,902
137,236
143,653'
138,037
136,767
1,895
26,058
12,248
699
1,180
1,461
74,015
2,541
1,163
1,236
12,083
13,260
1,773
19,588
12,416
780
1,281
1,243
81,184
3,215
1,766
2,093
13,370
17,491
2,421
11,263
12,669
1,225
1,238
2,767
68,287
2,260
1,510
1,441
15,844
17,113
1,890
12,611
13,316
909
1,377
1,122
66,299
2,157
1,314
2,745
14,027
16,367
2,324
12,639
13,833
806
1,130
1,125
68,676
2,316
1,350
2,233
14,928
16,433
2,115
12,468
13,836
1,035
1,398
939
68,926
2,564
1,340
1,626
14,047
16,609
2,173
12,237
13,767
953
1,261
921
67,923
2,442
1,274
1,448
16,412
16,426
2,493
11,418'
13,843
1,116
1,261
3,075
69,135'
2,732
1,549
1,681
17,403
17,949'
2,421
11,263
12,669
1,225
1,238
2,767
68,287
2,260
1,510
1,441
15,844
17,113
2,866
11,047
14,853
1,459
1,166
2,823
64,160
2,400
1,455
2,228
14,776
17,534
3,991
911
68
437
85
1,017
1,474
3,823
686
78
205
86
1,121
1,648
4,630
1,425
104
228
53
1,110
1,710
3,412
583
95
239
38
873
1,584
4,638
1,505
77
332
43
1,072
1,609
4,152
970
93
393
44
966
1,687
4,223
1,099
87
234
45
1,050
1,708
4,390'
996
90
283'
55
1,288
1,678
4,630
1,425
104
228
53
1,110
1,710
5,177
1,476
107
212
56
1,508
1,818
64 Other countries
65
Australia
All other
66
6,165
5,293
872
4,564
3,867
697
4,447
3,672
775
5,480
4,892
588
4,803
4,122
681
4,858
4,127
732
5,169
4,371
797
4,610
3,804
807
4,447
3,672
775
4,888
3,882
1,007
67 Nonmonetary international and regional
organizations
International
Latin American regional
Other regional6
3,224
2,503
589
133
4,772
3,825
684
263
5,608
4,080
1,048
479
4,112
2,981
812
319
4,290
3,150
569
571
5,206
3,982
668
556
4,507
3,392
627
487
5,273'
4,153'
809
312
5,608
4,080
1,048
479
7,501
6,034
962
506
24 Canada
45
46
47
48
49
50
51
5?
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries
Other
57
58
59
60
61
62
63
Egypt
Morocco
South Africa
Zaire
Oil-exporting countries4
Other
68
69
70
1. Includes the Bank for International Settlements and Eastern European
countries that are not listed in line 23.
2. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Excludes "holdings of dollars" of the International Monetary Fund.
6. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
Nonbank-Reported
Data
3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1991
Area and country
1 Total
2 Foreign countries
3 Europe
4
Austria
5
Belgium-Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
11
Italy
12
Netherlands
13
Norway
14
Portugal
15
Spain
16
Sweden
17
Switzerland
18
Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe 2
22
U.S.S.R
23
Other Eastern Europe 3
24 Canada
1990'
1988
491,165
489,094
534,022
530,583
512,462
507,656
July
Aug.
Sept.
488,235
494,987
493,239
491,343
488,044
483,961
Dec.'
494,833
505,266'
512,462
490,803
500,136'
507,656
107,189'
268
6,441
842'
113,695
385
5,435
497
1,047
14,531
3,448
729
6,066
1,735
111
304
2,758
2,073
4,472
1,377
65,302
1,142
587
530
499
14,295
16.091
230,236
6,884
11,212
3,414
17,994
87,005
3,271
2,585
1,387
191
238
15,093
7,974
1,471
663
786
2.733
1,335
116,928
483
8,515
483
1,065
13,243
2,329
433
7,936
2,541
455
261
1,823
1,977
3,895
1,233
65,706
1,390
1,152
1,255
754
119,024
415
6,478
582
1,027
16,146
2,865
788
6,662
1,904
609
376
1,930
1,773
6,141
1,071
65,527
1,329
1,302
1,179
921
113,695
385
5,435
497
1,047
14,531
3,448
729
6,066
1,735
777
304
2,758
2,073
4,472
1,377
65,302
1,142
587
530
499
102,368
399
6,754
503
1,112
13,746
2,595
529
4,615
1,744
692
543
2,125
3,362
4,297
1,186
54,804
1,070
960
565
765
106,463
287
6,682
676
1,177
14,288
2,939
610
4,498
1,636
716
427
2,100
3,407
3,712
1,434
58,630
1,029
694
624
897
105,418
373
5,627
669
962
14,398
3,403
686
4,634
2,219
744
412
2,312
2,447
3,928
1,377
57,830
697
940
640
103,631
247
5,147
489
814
13,750
3,242
729
5,070
1,711
732
444
2,373
2,577
3,475
1.371
58,267
1,226
667
825
474
18,889
15,450
16.091
16,391
15,431
15,445
16,185
1,120
861'
13,386'
3,634
720
5,171
1,849
661
368
2,584
2,251
3,995
1,346
59,919
1,160
619
653
459
211,783
7,549
71,534
3,736
18,651
73,530
3,264
2,563
216,741
7,028
71,934
3,662
77,539
3.372
2,544
228,549'
7,024
71,026
4,291
18,393
86,288'
3,373
2.532
1,515
196
262
14,689
1,873
1,491
661
843
8,064
1,355
204,012
7,111
67,870
2,443
18,906
70,980
3,430
2,700
2
1,507
207
243
14,953
1,632
1,491
644
834
7,642
1,417
1,498
215
254
15,366
1,818
1,556
649
804
7,274
1,523
1,487
211
262
15,359
3,310
1,463
667
794
7,102
1,383
1,498
152
265
15,380
7,386
1,449
730
787'
6,585'
1,391
140,191
158,028
157,933
147,568
146,800
142,555
140,191
620
1,924
10,644
655
933
774
92,011
5.734
1,247
1,573
10,984
13.092
554
1,583
9,434
852
814
738
114,663
5,515
1,342
1,242
12,318
8,971
586
2,026
9,473
628
836
785
114,973
5,614
1,369
1,245
10,657
9,741
542
1,681
9,026
867
826
698
106,543
5,679
1,333
1,279
10,430
8,663
639
1,061
8,478
506
896
688
106,369
5,533
1,444
11,098
8,883
689
1,576
8,506
540
923
758
100,071
5.533
1,175
1,523
10,947
10,314
620
1,924
10,644
655
933
774
92,011
5.734
1,247
1,573
10,984
13.092
5,890
502
559
1,628
16
1.648
1,537
5,445
380
513
1,525
16
1,486
1,525
5,567
421
544
1,560
20
1,604
1,418
5,567
449
539
1,571
19
1,586
1,403
5,544
430
542
1,594
20
1,536
1,422
5,601
411
534
1,576
19
1,510
1,551
5,705
383
519
1,726
19
1,492
1,566
5,445
380
513
1,525
16
1,486
1,525
2,413
1,520
894
2.354
1,781
573
1,998
1,518
479
1,878
1,422
456
1,938
1,304
634
2,287
1,863
424
1,845
1,416
429
1,843'
1,483
36C
1,998
1,518
479
2,071
3,439
4,275
3,644
•,030
5,131'
4,806
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala 4
36
Jamaica 4
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
214,264
11,826
66,954
483
25,735
55,888
5,217
2,944
230,392
9,270
77,921
1,315
23,749
68,709
4.353
2,784
230,236
6,884
77,212
3,414
17,994
87,005
3,271
2,585
199,729
7,166
66,977
1,988
20,180
66,437
3,489
2,542
2,075
198
212
24,637
1,306
2,521
1,013
910
10,733
1,612
1,688
197
297
23,376
1,921
1,740
771
928
9.647
1,726
1,387
191
238
15,093
7,974
1,471
663
786
2.733
1,335
44 Asia
China
Mainland
46
Taiwan
47
Hong Kong
48
India
49
Indonesia
50
Israel
51
Japan
52
Korea
53
Philippines
54
Thailand
,
55
Middle East oil-exporting countries'
56
Other Asia
130,881
157,474
762
4,184
10,143
560
674
1,136
90,149
5,213
1,876
848
6,213
9,122
634
2,776
11,128
621
651
813
111,300
5,323
1,344
1,140
10,149
11,594
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 6
63
Other
5,718
507
511
1,681
17
1,523
1,479
64 Other countries
65
Australia
66
All other
67 Nonmonetary international and regional
organizations
1
1
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
3. Beginning April 1978 comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
Nov.
0
1
0
18,626
0
1,206
1
0
4. Included in "Other Latin America and Caribbean" through March 1978.
5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
A61
A62
International Statistics • May 1991
3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1990
Type of claim
1988
1991
1990'
1989
July
Aug.
Sept.
488,235
47,711
275,297
128,436
73,819
54,617
36,791
494,987
46,738
273,967
137,784
80,628
57,156
36,499
493,239
48,218
278,871
124,988
72,266
52,722
41,162
Oct.
Nov.'
494,833
46,350
281,049
124,887
72,144
52,743
42,547
505,266
46,840
290,985
121,373
68,394
52,980
46,067
Dec.'
1 Total
538,689
592,616
581,752
2 Banks' own claims on foreigners
3 Foreign public borrowers
4
Own foreign offices2
5 Unaffiliated foreign banks
Deposits
6
Other
7
8 All other foreigners
491,165
62,658
257,436
129,425
65,898
63,527
41,646
534,022
60,087
295,980
134,870
78,184
56,686
43,084
512,462
42,075
303,209
119,625
67,859
51,766
47,553
47,524
8,289
58,594
13,019
69,291
17,272
65,702
14,707
69,291
17,272
25,700
30,983
33,430
33,791
33,430
13,535
14,592
18,588
17,203
18,588
19,596
12,899
13,484
12,812
13,484
45,565
45,675
42,137
9 Claims of banks' domestic customers 3 ...
11
558,941
Jan.p
581,752
512,462
42,075
303,209
119,625
67,859
51,766
47,553
499,382
39,423
299,079
119,106
70,613
48,492
41,774
Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: Customer liability on
Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States
41,000
1. Data for banks' own claims are given on a monthly basis, but the data for
claims of banks' own domestic customers are available on a quarterly basis only.
Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.
2. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due from head office or parent foreign bank,
and foreign branches, agencies, or wholly owned subsidiaries of head office or
44,631
43,154
42,827'
48,405
42,137
n.a.
parent foreign bank.
3. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 Bulletin,
p. 550.
3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, e n d of period
1990
Maturity; by borrower and area
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
By borrower
Maturity of 1 year or less 2
Foreign public borrowers
All other foreigners
Maturity over 1 year
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less
Europe
Canada
Latin America and Caribbean
Africa
All other3
Maturity of over 1 year
14 Europe
15 Canada
16 Latin America and Caribbean
17
18 Africa
19 All other3
1987
1989
Mar.
June
Sept.
Dec."
235,130
233,184
237,684
211,809
208,559
213,747
208,606
163,997
25,889
138,108
71,133
38,625
32,507
172,634
26,562
146,071
60,550
35,291
25,259
177,907
23,493
154,415
59,776
36,014
23,762
160,299
23,253
137,046
51,510
27,893
23,617
159,280
20,650
138,630
49,279
27,960
21,320
166,556
21,560
144,996
47,191
26,217
20,974
168,559
20,707
147,852
40,047
21,042
19,005
59,027
5,680
56,535
35,919
2,833
4,003
55,909
6,282
57,991
46,224
3,337
2,891
53,912
5,909
52,989
57,755
3,225
4,118
48,550
5,698
46,374
51,894
3,165
4,616
49,421
5,754
44,293
51,182
2,991
5,639
51,579
5,520
43,961
56,366
2,951
6,179
49,602
5,436
49,186
56,010
3,040
5,286
6,696
2,661
53,817
3,830
1,747
2,381
4,666
1,922
47,547
3,613
2,301
501
4,121
2,353
45,816
4,172
2,630
684
4,389
2,712
35,530
5,552
2,764
564
4,201
2,819
33,190
5,866
2,739
464
4,426
3,033
31,276
5,646
2,544
265
3,882
3,291
26,074
3,865
2,374
560
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
1988
2. Remaining time to maturity.
3. Includes nonmonetary international and regional organizations.
Nonbank-Reported Data
A63
3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1,2
Billions of dollars, end of period
65
June
Sept.
Dec.
Mar.
June
Sept.
Dec. p
346.1
340.0
346.2
338.4
334.3
322.4r
332.7r
312.5
156.6
8.4
13.6
11.6
9.0
4.6
2.4
5.8
70.9
5.2
25.1
159.7
10.0
13.7
12.6
7.5
4.1
2.1
5.6
68.8
5.5
29.8
152.7
9.0
10.5
10.3
6.8
2.7
1.8
5.4
66.2
5.0
34.9
145.4
8.6
11.2
10.2
5.2
2.8
2.3
5.1
65.6
4.0
30.5
145.1
7.8
10.8
10.6
6.1
2.8
1.8
5.4
64.5
5.1
30.2
146.4
6.9
11.1
10.4
6.8
2.4
2.0
6.1
63.7
5.9
31.0
152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.2
147.1
6.6
10.5
11.2
6.0
3.1
2.1
6.3
64.0
4.8
32.6
140.2'
6.2
10.3
11.2
5.5
2.7
2.3
6.4
60.0
5.2
30.4
144.4'
6.5
11.1
11.2
4.5
3.8
2.4
5.6
61.7'
5.1
32.5'
131.1
5.8
10.4
9.7
5.0
2.9
2.1
4.7
59.8
5.9
24.8
26.1
1.7
1.7
1.4
2.3
2.4
.9
5.8
2.0
1.5
3.0
3.4
26.4
1.9
1.7
1.2
2.0
2.2
.6
8.0
2.0
1.6
2.9
2.4
21.0
1.5
1.1
1.1
1.8
1.8
.4
6.2
1.5
1.3
2.4
1.8
21.1
1.4
1.1
1.0
2.1
1.6
.4
6.6
1.3
1.1
2.2
2.4
21.2
1.7
1.4
1.0
2.3
1.8
.6
6.2
1.1
1.1
2.1
1.9
21.0
1.5
1.1
1.1
2.4
1.4
.4
6.9
1.2
1.0
2.1
2.1
20.7
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
.7
2.0
1.6
23.1
1.5
1.1
1.1
2.6
1.7
.4
8.3
1.3
1.0
2.0
2.1
22.6
1.5
1.1
.9
2.7
1.4
.8
7.9
1.4
1.1
1.9
1.9
23.0
1.6
1.0
.8
2.8
1.5
.6
8.5
1.6
.7
1.9
2.0
22.7
1.4
1.1
.7
2.7
1.5
.6
8.4
1.6
.9
1.8
1.9
19.4
2.2
8.7
2.5
4.3
1.8
17.4
1.9
8.1
1.9
3.6
1.9
16.6
1.7
7.9
1.7
3.4
1.9
16.2
1.6
7.9
1.7
3.3
1.7
16.1
1.5
7.5
1.9
3.4
1.6
16.2
1.5
7.4
2.0
3.5
1.9
17.1
1.3
7.0
2.0
5.0
1.7
15.5
1.2
6.1
2.1
4.3
1.8
15.3
1.1
6.0
2.0
4.4
1.8
14.4
1.1
6.0
2.3
3.3
1.7
13.0
1.0
5.0
2.7
2.7
1.7
99.6
97.8
85.3
85.9
83.4
81.2
77.5
68.8
66. r
67. r
65.7
9.5
25.3
7.1
2.1
24.0
1.4
3.1
9.5
24.7
6.9
2.0
23.5
1.1
2.8
9.0
22.4
5.6
2.1
18.8
.8
2.6
8.5
22.8
5.7
1.9
18.3
.7
2.7
7.9
22.1
5.2
1.7
17.7
.6
2.6
7.6
20.9
4.9
1.6
17.2
.6
2.9
6.3
19.0
4.6
1.8
17.7
.6
2.8
5.5
17.5
4.3
1.8
12.7
.5
2.7
5.1
16.7r
3.7
1.7
12.6
.5
2.3
4.9
15.4r
3.6
1.8
13.1
.5
2.4
4.9
14.4
3.5
1.8
13.2
.5
2.3
.4
4.9
1.2
1.5
6.7
2.1
5.4
.9
.7
.3
8.2
1.9
1.0
5.0
1.5
5.2
.7
.7
.3
3.7
2.1
1.2
6.1
1.6
4.5
1.1
.9
.5
4.9
2.6
.9
6.1
1.7
4.4
1.0
.8
.3
5.2
2.4
.8
6.6
1.6
4.4
1.0
.8
.3
5.0
2.7
.7
6.5
1.7
4.0
1.3
1.0
.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0
.3
3.8
3.5
.6
5.3
1.8
3.7
1.1
1.2
.2
3.6
3.6
.7
5.6
1.8
3.9
1.3
1.1
.2
3.9
3.6
.6
6.2
1.8
3.9
1.5
1.6r
.2
3.5
3.3
.7
6.1
1.9
3.8
1.5
1.7
Other Africa4
.7
.9
.1
1.6
.6
.9
.0
1.3
.4
.9
.0
1.1
.5
.9
.0
1.1
.6
.9
.0
1.1
.5
.8
.0
1.0
.4
.9
.0
1.0
.4
.9
.0
.9
.5
.9
.0
.9
.4
.9
.0
.8
.4
.8
.0
1.1
Other
3.5
.1
2.0
1.4
3.2
.3
1.8
1.1
3.6
.7
1.8
1.1
3.5
.7
1.7
1.1
3.4
.6
1.7
1.1
3.5
.8
1.7
1.1
3.5
.7
1.6
1.3
3.4
.8
1.4
1.3
3.0
.4
1.4
1.2
2.9
.4
1.3
1.2
1.9
.2
1.0
.7
Others
61.5
22.4
.6
12.3
1.8
4.0
.1
11.1
9.2
.0
54.5
17.3
.6
13.5
1.2
3.7
.1
11.2
7.0
.0
44.2
11.0
.9
12.9
1.0
2.5
.1
9.6
6.1
.0
48.5
15.8
1.1
12.0
.9
2.2
.1
9.6
6.8
.0
43.1
11.0
.7
10.8
1.0
1.9
.1
10.4
7.3
.0
49.2
11.4
1.3
15.3
1.1
1.5
.1
10.7
7.8
.0
36.6
5.5
1.7
8.9
2.3
1.4
.1
9.7
7.0
.0
42.9
9.2
.9
10.9
2.6
1.3
.1
9.8
8.0
.0
40.0
8.5
2.2
8.5
2.3
1.4
.1
10.0
7.0
.0
41.9
8.9
4.0
9.0
2.2
1.5
.1
9.0
7.3r
.0
40.3
3.5
3.7
10.1
7.9
1.4
.1
7.0
6.5
.0
19.8
23.2
22.6
25.0
27.4
28.5
29.8
33.2
34.4r
38.7'
37.6
Chile
Korea (South)
Africa
55
Mar.
346.3
Asia
China
51
Dec.
382.4
Latin America
43
1987
386.5
1 Total
34
1986
1990
1989
1988
Area or country
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
2. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. This group comprises the Organization of Petroleum Exporting Countries
shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and
Oman (not formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
A64
International Statistics • May 1991
3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1989
Type, and area or country
1986
1987
1990
1988
June
Sept.
Dec.
Mar.
June
Sept.
1 Total
25,587
28,302
32,938
38,400
36,530
38,413
38,554
39,474
44,555
2 Payable in dollars
3 Payable in foreign currencies
21,749
3,838
22,785
5,517
27,320
5,618
33,312
5,088
31,669
4,861
33,569
4,845
34,265
4,289
34,962
4,512
39,429
5,126
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
12,133
9,609
2,524
12,424
8,643
3,781
14,507
10,608
3,900
18,427
14,551
3,875
17,141
13,289
3,852
18,364
14,462
3,902
17,837
14,625
3,213
19,499
16,098
3,401
20,534
16,694
3,840
13,454
6,450
7,004
12,140
1,314
15,878
7,305
8,573
14,142
1,737
18,431
6,505
11,926
16,712
1,719
19,973
6,501
13,472
18,760
1,213
19,389
6,906
12,483
18,380
1,009
20,049
7,377
12,672
19,107
943
20,717
7,275
13,441
19,640
1,076
19,975
6,739
13,237
18,864
1,111
24,021
9,905
14,116
22,735
1,286
7,917
270
661
368
542
646
5,140
8,320
213
382
551
866
558
5,557
9,962
289
359
699
880
1,033
6,533
12,575
357
257
618
835
938
9,402
11,213
308
242
592
855
799
8,207
11,607
340
258
521
946
541
8,741
10,960
333
217
482
900
529
8,212
12,026
347
156
676
934
667
8,759
11,527
350
503
735
948
740
7,579
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities
10 Payable in dollars
11 Payable in foreign currencies
12
13
14
15
16
17
18
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
399
360
388
626
575
573
476
345
357
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,944
614
4
32
1,146
22
0
1,189
318
0
25
778
13
0
839
184
0
0
645
1
0
1,262
165
7
0
661
17
0
1,367
186
7
0
743
4
0
1,268
157
17
0
635
6
0
1,814
272
0
0
1,061
5
0
2,508
249
0
0
1,717
4
0
3,337
368
0
0
2,352
4
0
27
28
29
Asia
Japan
Middle East oil-exporting countries2
1,805
1,398
8
2,451
2,042
8
3,312
2,563
3
3,863
3,100
12
3,886
3,130
2
4,814
3,963
2
4,483
3,445
3
4,561
3,559
5
4,831
3,871
4
30
31
Africa
Oil-exporting countries3
1
1
4
1
2
0
3
2
4
2
2
0
3
0
3
1
2
0
67
100
4
97
97
100
102
55
479
4,446
101
352
715
424
385
1,341
5,516
132
426
909
423
559
1,599
7,305
158
455
1,699
587
417
2,065
7,776
114
535
1,188
688
447
2,709
8,321
137
806
1,185
548
531
2,703
8,885
178
871
1,364
699
621
2,618
9,133
233
881
1,143
688
583
2,925
8,304
295
928
959
606
607
2,435
9,719
246
1,186
1,019
700
708
2,803
1,405
1,301
1,217
1,133
1,189
1,067
1,124
1,169
1,264
924
32
156
61
49
217
216
864
18
168
46
19
189
162
1,090
49
286
95
34
217
114
1,673
34
388
541
42
235
131
1,086
27
305
113
30
220
107
1,187
41
308
100
27
304
154
1,304
37
516
116
18
241
85
1,277
22
412
106
29
285
119
1,553
18
371
126
42'
505
120
5,080
2,042
1,679
6,565
2,578
1,964
6,915
3,094
1,385
7,045
2,708
1,482
7,088
2,676
1,442
7,040
2,774
1,401
6,886
2,624
1,393
6,949
3,068
1,125
8,763
3,167
2,321
32
33
34
35
36
37
38
39
Allother 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
48
49
50
Asia
Japan
Middle East oil-exporting countries2'5
51
52
Africa
Oil-exporting countries3
619
197
574
135
576
202
762
263
648
255
844
307
753
263
885
277
1,315
593
53
All other4
980
1,057
1,328
1,584
1,057
1,027
1,517
1,390
1,408
1. For a description of the changes in the International Statistics tables, see
July 1979 Bulletin, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
Nonbank-Reported
3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
United States1
Data
A65
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1990
1989
Type, and area or country
1986
1987
1988
June
Sept.
Dec.
Mar.
June
Sept.
1 Total
36,265
30,964
34,035
34,420
32,088
31,437
29,708
31,468
30,846
2 Payable in dollars
3 Payable in foreign currencies
33,867
2,399
28,502
2,462
31,654
2,381
32,203
2,217
29,806
2,282
29,106
2,330
27,595
2,114
29,174
2,294
28,491
2,355
26,273
19,916
19,331
585
6,357
5,005
1,352
20,363
14,894
13,765
1,128
5,470
4,656
814
21,869
15,643
14,544
1,099
6,226
5,450
777
21,920
16,500
15,581
919
5,420
4,683
737
19,135
12,154
11,278
877
6,981
6,073
908
17,689
10,400
9,473
927
7,289
6,535
754
16,481
10,436
9,583
853
6,045
5,357
688
17,975
9,877
8,825
1,053
8,098
7,365
733
16,527
10,258
9,109
1,149
6,269
5,616
652
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims .
9,992
8,783
1,209
10,600
9,535
1,065
12,166
11,091
1,075
12,499
11,068
1,432
12,953
11,472
1,481
13,748
12,140
1,608
13,227
11,635
1,592
13,493
11,807
1,686
14,319
12,506
1,813
14
15
9,530
462
10,081
519
11,660
505
11,939
560
12,455
498
13,099
650
12,655
573
12,985
508
13,766r
554
10,744
41
138
116
151
185
9,855
9,531
7
332
102
350
65
8,467
10,279
18
203
120
348
218
9,039
8,919
161
176
149
297
68
7,772
7,528
166
173
120
292
111
6,419
7,040
28
153
192
303
95
6,035
6,949
22
198
505
315
122
5,572
9,587
126
141
93
332
137
8,539
7,905
27
143
97
315
176
6,926
By type
4 Financial claims
5
Deposits
Payable in dollars
6
7
Payable in foreign currencies
8 Other financial claims
Payable in dollars
9
10
Payable in foreign currencies
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
4,808
2,844
2,325
2,568
2,359
1,892
1,758
2,040
1,994
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
9,291
2,628
6
86
6,078
174
21
7,012
1,994
7
63
4,433
172
19
8,160
1,846
19
47
5,763
151
21
9,319
1,875
33
78
6,923
114
31
8,315
1,699
33
70
6,125
105
36
7,590
1,516
7
224
5,431
94
20
6,921
1,599
4
79
4,824
152
21
5,431
920
3
84
4,027
153
20
5,666
969
12
70
4,215
158
23
31
32
33
Asia
Japan
Middle East oil-exporting countries'
1,317
999
7
879
605
8
844
574
5
995
525
8
826
460
7
831
439
8
763
416
7
815
473
6
832
450
9
34
Africa
85
28
65
7
106
10
80
8
75
8
140
12
67
11
62
8
49
7
28
33
155
40
31
195
23
41
81
3,725
133
431
444
164
217
999
4,180
178
650
562
133
185
1,073
5,181
189
672
669
212
344
1,324
5,302
205
775
675
413
231
1,372
5,429
220
829
686
396
222
1,398
6,168
241
956
687
478
305
1,572
6,026
219
958
699
450
270
1,690
6,041
207
908
662
475
235
1,586
6,427
189
1,140
638
490
300
1,675
934
936
983
1,181
1,278
1,058
1,091
1,108
1,135
35
36
37
38
39
40
41
42
43
44
.
Oil-exporting countries'
All other4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,857
28
193
234
39
412
237
1,930
19
170
226
26
368
283
2,241
36
230
299
22
461
227
2,103
13
238
315
30
439
229
2,147
10
271
239
33
509
189
2,177
57
323
292
36
509
147
2,061
22
243
231
38
525
188
2,214
17
284
233
46
594
222
2,389
25
340
252
35
649
223
52
53
54
Asia
Japan
Middle East oil-exporting countries'
2,755
881
563
2,915
1,158
450
2,993
946
453
3,154
999
434
3,316
1,176
410
3,538
1,184
515
3,257
1,061
432
3,379
1,046
414
3,568
1,209
403
55
56
Africa
.
Oil-exporting countries3
500
139
401
144
435
122
408
112
399
87
418
107
425
89
390
98
372
71
57
All other4
222
238
333
351
383
389
367
360
429
1. For a description of the changes in the International Statistics tables, see
July 1979 Bulletin, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
A66
International Statistics • May 1991
3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1990
Transactions, and area or country
1989
1990
1991
1990'
Jan.Jan.
July
Aug.
Sept.
Oct.
Nov.
Dec/
Jan/
11,636
15,437
12,551
13,368
13,313
14,573
10,235
11,048
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
214,061
204,114
3 Net purchases, or sales (—)
4 Foreign countries
5
6
7
8
9
10
11
12
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East'
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations
173,031
188,332
10,235
11,048
17,447
16,080
20,653
21,959
8,812
11,318
9,946
-15,300
-812
1,367
-1,306
-2,506
-3,801
-817
-1,260
-812
10,180
-15,372
-814
1,315
-1,343
-2,452
-3,759
-812
-1,269
-814
481
-708
-830
79
-3,277
3,691
-881
3,042
3,531
3,577
3,330
131
299
-8,579
-1,183
-370
-407
-2,884
-3,122
889
-1,345
-2,447
-3,505
-2,907
-60
-325
-616
-24
-114
-142
-222
-99
24
233
-279
-197
-272
33
-13
-12
-25
-41
-30
-170
252
174
-90
-36
1,056
851
13
211
-1,379
-175
-119
-107
-253
-637
330
-242
187
-69
22
16
-186
-1,160
-148
2
-48
-126
-718
210
-218
-437
-712
-737
1
-135
-1,415
-159
-87
-61
-213
-688
155
-357
-558
-1,517
-1,135
-31
-35
-582
-80
-14
21
-169
-282
216
292
-430
-420
-194
-5
117
-489
-49
-144
-46
-263
147
279
-280
-251
-406
-382
-14
-108
-616
-24
-114
-142
-222
-99
24
233
-279
-197
-272
33
-13
-234
71
2
52
37
-55
-42
-5
9
2
BONDS2
19 Foreign purchases
120,540
118,586
8,840
10,915
11,846
7,484
8,699
11,205'
9,935
8,840
20 Foreign sales
86,568
99,526
8,350
7,553
12,465
9,354
7,385
7,738'
8,053
8,350
21 Net purchases, or sales (—)
33,972
19,059
490
3,362
-618
-1,870
1,314
3,468r
1,883
490
22 Foreign countries
33,619
19,515
309
3,323
-588
-1,900
1,551
3,472'
1,885
309
23
24
25
26
27
28
29
30
31
32
33
34
35
19,823
372
-238
850
-189
18,459
1,116
3,686
-182
9,063
6,331
56
57
12,133
373
-305
178
561
11,526
1,866
4,204
152
1,389
1,010
87
-316
76
31
-54
47
360
-56
71
-17
69
131
308
-15
-5
1,996
54
33
37
570
1,145
70
273
13
999
930
-4
-24
706
-40
172
-15
-346
722
91
-103
-178
-986
-632
-1
-118
-819
-103
3
-71
0
-275
-87
-208
-65
-692
-871
5
-34
667
-74
-29
35
-84
371
127
214
-10
603
361
2
-53
1,918'
24
-59
52
20'
1,727
237
343
-35
1,033'
812'
6
-30
1,078
39
-41
110
45
1,3%
-250
500
74
486
399
-9
7
76
31
-54
47
360
-56
71
-17
69
131
308
-15
-5
353
-455
181
39
-31
30
-237
-2
181
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
36 Nonmonetary international and
regional organizations
-4
Foreign securities
37 Stocks, net purchases, or sales ( - ) 3
-13,097
-8,658
-429
-1,135
-142
446
-314
1,068'
109,789
122,886
122,444
131,103
6,188
6,617
11,425
12,559
12,360
12,502
7,522
7,076
9,277
9,591
10,06c
40 Bonds, net purchases, or sales ( - )
41
Foreign purchases
42 Foreign sales
-6,049
234,215
240,264
-22,406
314,268
336,674
-152
26,970
27,122
-400
23,367
23,767
48
29,826
29,778
-599
25,746
26,346
-2,830
35,254
38,085
43 Net purchases, or sales ( - ) , of stocks and bonds
-19,145
-31,064
-582
-1,535
-94
-153
44 Foreign countries
-19,178
-28,380
-543
-1,564
-538
-428
45
46
47
48
49
50
-17,811
-4,180
426
2,540
93
-246
-8,247
-6,%9
-8,937
-3,829
-137
-261
339
-574
350
-792
22
112
-390
-328
-222
-211
-83
-331
-1,303
167
-64
606
-8
65
33
-2,684
-39
30
444
38
39
Foreign purchases
Foreign sales
Europe
Canada
Latin America and Caribbean
Africa
Other countries
51 Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
-1,844
-429
8,993'
7,244
9,088
6,188
6,617
50'
32,839'
32,788'
-4,261
33,411
37,672
-152
26,970
27,122
-3,144
l.liy
-6,105
-582
-2,340
l,093 r
-5,363
-543
-73
-4
-401
-323
12
362
-910
-880
229
-697
4
-87
1,917'
-1,755'
283
706'
-69
11'
-919
-172
-2,802
-1,571
28
73
339
-574
350
-792
22
112
275
-804
-742
-39
25
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
3. As a result of the merger of a U.S. and U.K. company in July 1989, the
former stockholders of the U.S. company received $5,453 million in shares of the
new combined U.K. company. This transaction is not reflected in the data above.
Interest and Exchange Rates
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
A67
Foreign Transactions
Millions of dollars
Country or area
1991
1990
1990
1990
1989
Jan.Jan.
July
Aug.
Sept.
Oct.
Nov.
Dec.'
Jan."
Transactions, net purchases or sales ( - ) during period1
1 Estimated total2
2 Foreign countries
2
2
3 Europe
4
Belgium-Luxembourg
5 Germany
6
Netherlands
Sweden
7
8 Switzerland2
9
United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
13
14
15
16
17
18
19
20
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22 International
23 Latin America regional
Memo
24 Foreign countries2
25 Official institutions
26 Other foreign2
27
28
Oil-exporting countries
Middle East3
Africa4
54,198
19,760
2,797
5,488
4,609
936
-1,134
S,9lSr
52.296
20,114'
4,482
5,331
3,968
1,293
-1,107
5,580'
36,286
1,048
7,904
-1,141
693
1,098
20,198
6,508
18,726'
3,643
179
-1
-2,128
-395
1,424
1,253
-266
0
275
72
581
-454
163
617
-1,747
1,043
2,119'
-67
1,677
-249'
279
1,418
-3,776
-251
11
1,177
5,021
-95
633
956
-33
548
1,599
1,407
13
-4,556
3,250
260
-567
326
-661
170
2,757
960
6
-795
-868
-637
459
15,846'
-50
311
-327
5,108'
10,788
475
13.297 - l l ^
1,681 -14,881
332
116
824
1,439
-5,150
-153
-592
-4,405
6,997
2,244
78
102
1,934
1,319
295
1,023
3,304
2,376
57
239
-1,953
-49
-1,157
-747
-1,751
-2,092
151
692
4,676
1,060
874
-1,672
161
17
-9
591
4,086
-5,192
-4,059
83
-313
-1,685
-1,624
-202
158
-25
25
641
444
25
-357
-154
-75
-27
-87
-59
4,482
2,248
2,234
5,331
724
4,607
3,968
6,794
-2,826
1,293
3,799
-2,506
-1,107
1,382
-2,489
5,580'
4,771'
523
-2,095
-365
241
-1,247
-878
-21
698
-16
5,750
986'
1,156
107r
-2,159
12,880
1,902
1,473
231
-354
-150
52,296
26,835
25,461
20,114'
24,103'
-3,989'
8,148
-383
-2
-1
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
0
0
196
133
-799
1,051
2,884
-1
0
-128
0
0
0
0
0
-1
0
-6
-1,581
2,069
-5
-463
4,306
49
967
3,290
-931'
-1,154
8
543
335
209
0
0
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
A68
International Statistics • May 1991
3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per year
Rate on Mar. 31, 1991
Rate on Mar. 31, 1991
Rate on Mar. 31, 1991
Country
Country
Percent
Month
effective
6.5
10.5
9.92
9.50
Oct. 1989
Nov. 1989
Mar. 1991
Jan. 1991
Country
Germany, Fed. Rep. o f . . .
Italy
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
Percent
Month
effective
Percent
Month
effective
9.0
6.50
12.5
6.0
7.75
Mar. 1990
Feb. 1991
May 1990
Aug. 1990
Feb. 1991
10.50
6.0
July 1990
Oct. 1989
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
3.27 FOREIGN SHORT-TERM INTEREST RATES
P e r c e n t p e r y e a r , a v e r a g e s of daily figures
1990
Country, or type
1
2
3
4
5
6
7
8
9
10
1988
1989
1991
1990
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
7.85
10.28
9.63
4.28
2.94
9.16
13.87
12.20
7.04
6.83
8.16
14.73
13.00
8.41
8.71
8.07
14.88
12.63
8.39
8.11
8.06
14.02
12.58
8.51
7.88
8.04
13.57
12.36
8.79
8.39
7.87
13.75
11.95
9.17
8.65
7.23
13.91
11.13
9.25
8.44
6.60
13.20
10.37
8.96
7.81
6.44
12.33
9.97
8.99
8.17
Netherlands
France
Italy
Belgium
Japan
4.72
7.80
11.04
6.69
4.43
7.28
9.27
12.44
8.65
5.39
8.57
10.20
12.11
9.70
7.75
8.42
10.24
10.65
9.04
8.37
8.39
9.92
11.40
8.89
8.26
8.73
9.88
12.42
9.03
8.35
9.27
10.14
13.45
9.81
8.27
9.31
10.14
13.13
9.91
8.18
9.01
9.64
13.31
9.51
8.01
9.04
9.34
12.52
9.28
8.09
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, CD rate.
Interest and Exchange Rates
A69
3.28 FOREIGN EXCHANGE RATES'
C u r r e n c y units p e r dollar
1990
1989
Country/currency
1
2
3
4
5
6
Australia/dollar2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
7
8
9
10
11
12
13
Finland/markka
France/franc
Germany/deutsche mark.
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/punt2
14
15
16
17
18
19
20
Italy/lira
Japan/yen
Malaysia/rinegit
Netherlands/guilder
New Zealand/dollar2
Norway/krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound2,
Nov.
Dec.
Mar.
79.186
13.236
39.409
1.1842
3.7673
7.3210
78.069
11.331
33.424
1.1668
4.7921
6.1899
80.060
10.719
31.373
1.1600
4.7339
5.8117
77.290
10.451
30.647
1.1635
4.9714
5.6946
77.019
10.539
31.014
1.1603
5.2352
5.7735
77.930
10.616
31.088
1.1560
5.2352
5.8115
78.351
10.416
30.475
1.1549
5.2352
5.6953
77.107
11.341
33.206
1.1572
5.2352
6.1886
4.1933
5.9595
1.7570
142.00
7.8072
13.900
152.49
4.2963
6.3802
1.8808
162.60
7.8008
16.213
141.80
3.8300
5.4467
1.6166
158.59
7.7899
17.492
165.76
3.6187
5.1032
1.5238
153.17
7.7722
18.074
176.04
3.5644
5.0020
1.4857
152.27
7.7951
18.098
3.6341
5.0895
1.4982
156.08
7.8034
18.127
177.77
3.6431
5.1253
1.5091
159.70
7.7950
18.339
3.5941
5.0398
1.4805
158.82
7.7943
18.860
179.81
3.8512
5.4862
174.16
7.7911
19.243
157.43
1,302.39
128.17
2.6190
1.9778
65.560
6.5243
144.27
1,372.28
138.07
2.7079
2.1219
59.354
6.9131
157.53
1,198.27
145.00
2.7057
1.8215
59.619
6.2541
142.70
1,141.62
129.59
2.6995
1.7180
61.129
5.8241
134.41
1,117.04
129.22
2.6949
1.6761
5.79%
130.87
1,129.26
133.89
2.7030
1.6904
59.574
5.8717
132.82
1,134.38
133.70
2.7140
1.7015
59.476
5.8993
134.43
1,111.19
130.54
2.6%9
1.6689
60.120
5.7919
130.45
1,201.%
137.39
2.7418
1.8174
59.389
6.2899
140.97
2.0133
2.2770
734.52
116.53
31.820
6.1370
1.4643
28.636
25.312
178.13
1.9511
2.6214
674.29
118.44
35.947
6.4559
1.6369
26.407
25.725
163.82
1.8134
2.5885
710.64
101.96
40.078
5.9231
1.3901
26.918
25.609
178.41
1.7257
2.5445
717.76
95.59
40.285
5.6411
1.2818
27.288
25.130
194.56
1.7100
2.5247
717.03
94.07
40.355
5.5633
1.2569
27.245
25.078
196.42
1.7275
2.5395
718.58
95.75
40.244
5.6338
1.2814
27.162
25.208
192.19
1.7455
2.5643
720.83
95.08
40.300
5.6345
1.2714
27.197
25.244
193.46
1.7180
2.5412
723.97
92.61
40.598
5.5516
1.2685
27.109
25.141
1%.41
1.7589
2.6636
727.73
100.21
40.750
5.9081
1.3918
27.311
25.447
182.14
92.72
98.60
89.09
83.43
82.12
83.35
82.12
8.12
1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the
Oct.
78.409
12.357
36.785
1.2306
3.7314
6.7412
MEMO
31 United States/dollar3
1990
180.18
61.120
168.68
83.51
1.6122
currencies of 10 industrial countries. The weight for each of the 10 countries is the
1972-76 average world trade of that country divided by the average world trade of
all 10 countries combined. Series revised as of August 1978 (see Federal Reserve
Bulletin, vol. 64, August 1978, p. 700).
71
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR PRESENTATION
Symbols and Abbreviations
c
e
p
r
*
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when about
half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000 when
the smallest unit given is millions)
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities'' may include guaranteed issues
of U.S. government agencies (the flow of funds figures also
include not fully guaranteed issues) as well as direct obliga-
tions of the Treasury. "State and local government" also includes municipalities, special districts, and other political
subdivisions.
In some of the tables, details do not add to totals because of
rounding.
STATISTICAL RELEASES—List Published Semiannually,
with Latest BULLETIN Reference
Issue
December 1990
Page
A92
Issue
Page
January
February
March
May
1991
1991
1991
1991
A72
A72
A72
A72
Terms of lending at commercial banks
February 1990
May 1990
August 1990
November 1990
September
December
December
April
1990
1990
1990
1991
A73
A72
A77
A73
Assets and liabilities ofU. S. branches and agencies of foreign banks
December 31,1989
March 31,1990
June 30,1990
September 30,1990
August
September
December
February
1990
1990
1990
1991
A72
A78
A82
A78
Pro forma balance sheet and income statements for priced service operations
June 30,1989
September 30,1989
March 31,1990
June 30,1990
February
March
September
October
1990
1990
1990
1990
A78
A88
A82
A72
Anticipated schedule of release dates for periodic releases
SPECIAL
TABLES-Published Irregularly, with Latest
BULLETIN
Reference
Title and Date
Assets and liabilities of commercial banks
March 31,1990
June 30,1990
September 30,1990
December 31,1990
Special table follows.
A72
Special Tables • May 1991
4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1
Consolidated Report of Condition, December 31, 1990
2
Millions of dollars
Banks with foreign offices
Item
1 Total assets'
2 Cash and balances due from depository institutions
3 Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
5
Currency and coin
6 Balances due from depository institutions in the United States
7 Balances due from banks in foreign countries and foreign central banks
8 Balances due from Federal Reserve Banks
Banks with domestic
offices only
Total
Total
Foreign
Domestic
Over 100
Under 100
3,367,795
1,901,538
410,659
1,559,302
1,078,452
387,805
314,652
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
217,412
95,036
n.a.
n.a.
30,688
68,171
23,518
83,874
1,702
n.a.
n.a.
16,971
65,006
195
133,539
93,334
75,506
17,829
13,717
3,165
23,323
70,901
37,009
25,219
11,790
19,934
2,474
11,484
26,338
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
MEMO
9 Noninterest-bearine balances due from commercial banks in the United States
(included in balances due from depository institutions in the United States)
10 Total securities, loans and lease financing receivables, net
11 Total securities, book value
12 U.S. Treasury securities and U.S. government agency and corporation
13
14
15
16
17
18
19
70
21
22
73
74
75
76
27
U.S. Treasury securities
U.S. government agency and corporation obligations
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
All other
Securities issued by states and political subdivisions in the United States
Other domestic debt securities
All holdings of private certificates of participation in pools of
residential mortgages
All other domestic debt securities
Foreign debt securities
Equity securities
Marketable
Investments in mutual funds
Other
Less: Net unrealized loss
Other equity securities
28 Federal funds sold and securities purchased under agreements to resell
29 Federal funds sold
30 Securities purchased under agreements to resell
31 Total loans and lease financing receivables, gross
32 LESS: Unearned income on loans
33 Total loans and leases (net of unearned income)
34 LESS: Allowance for loan and lease losses
35 LESS: Allocated transfer risk reserves
36 EQUALS: Total loans and leases, net
Total loans, gross, by category
37 Loans secured by real estate
38
39
1-4 family residential properties
40
Revolving, open-end loans, extended under lines of credit
41
All other loans
42
43 Multifamily (5 or more) residential properties
44
45
46 To commercial banks in the United States
47 To other depository institutions in the United States
48 To banks in foreign countries
49 Loans to finance agricultural production and other loans to farmers
50 Commercial and industrial loans
51 To U.S. addressees (domicile)
52 To non-U.S. addressees (domicile)
53
54 U.S. banks
55
56 Loans to individuals for household, family, and other personal expenditures (includes
purchased paper)
57 Credit cards and related plans
Other
(includes single payment and installment)
58
59 Obligations (other than securities) of states and political subdivisions in the U.S.
(includes nonrated industrial development obligations)
Taxable
60
61
6?
63
64
65
66
67
68
69
70
71
72
73
74
75
Loans to foreign governments and official institutions
Loans for purchasing and carrying securities
All other loans
Lease financing receivables
Assets held in trading accounts
Premises and fixed assets (including capitalized leases)
Other real estate owned
Investments in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
n.a.
n.a.
n.a.
2,788,467
1,487,835
n.a.
9,444
n.a.
14,709
9,874
955,277
345,355
600,846
247,361
32,669
214,692
236,156
117,330
423,134
n.a.
n.a.
158,159
42,616
115,544
3,004
821
2,183
155,155
41,795
113,361
173,621
69,580
104,041
91,354
n.a.
n.a.
146,063
n.a.
82,951
n.a.
76,267
39,277
29,477
27,453
1,836
347
1,005
1,460
74,431
38,930
28,472
25,993
48,983
55,058
36,600
21,973
20,813
n.a.
16,874
n.a.
3,668
53,619
n.a.
8,937
4,437
1,906
2,992
461
4,500
1,900
25,553
28,152
4,120
996
249
936
190
3,124
87
1,373
26,119
1,081
301
32
269
0
780
1,813
24,180
2,033
3,039
695
217
668
190
2,344
1,337
20,636
385
3,577
2,540
837
1,883
179
1,036
431
7,431
n.a.
1,240
901
819
174
92
339
146,128
124,471
21,657
2,109,804
13,168
2,0%,637
54,900
244
2,041,493
70,228
53,404
16,823
1,214,380
5,453
1,208,927
38,437
243
1,170,247
568
n.a.
n.a.
208,760
1,491
207,269
n.a.
n.a.
n.a.
69,659
n.a.
n.a.
1,005,620
3,963
1,001,658
n.a.
n.a.
n.a.
50,412
46,057
4,355
687,593
5,789
681,804
13,095
0
668,709
25,488
25,009
479
207,831
1,926
205,905
3,368
1
202,537
824,659
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
50,942
n.a.
n.a.
n.a.
413,779
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
40,948
21,311
1,842
17,795
26,585
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
15,387
610
109
14,668
387,193
80,211
2,132
184,136
33,226
150,910
10,615
110,099
25,562
20,701
1,733
3,128
306,844
37,642
5,383
156,380
24,658
131,721
8,127
99,311
9,506
9,028
462
16
104,037
7,6%
9,708
57,512
3,439
54,072
2,082
27,039
487
n.a.
n.a.
n.a.
33,221
612,014
n.a.
n.a.
3,859
n.a.
n.a.
5,941
429,679
347,789
81,890
665
312
353
304
103,591
23,404
80,187
301
64
236
5,636
326,088
324,385
1,703
365
248
117
8,442
142,691
142,324
366
1,527
n.a.
n.a.
18,839
39,645
n.a.
n.a.
1,666
n.a.
n.a.
399,039
132,739
266,300
169,118
53,169
115,949
17,194
n.a.
n.a.
151,924
n.a.
n.a.
190,751
77,009
113,742
39,170
2,561
36,609
33,897
1,333
32,564
114,212
n.a.
n.a.
n.a.
n.a.
19,714
877
18,837
102,738
25,262
77,476
n.a.
n.a.
273
120
152
40,953
23,953
17,000
n.a.
n.a.
19,441
757
18,685
61,785
1,309
60,476
11,025
49,451
12,638
397
12,241
9,624
116
9,508
1,489
8,019
1,545
60
1,486
1,850
n.a.
n.a.
n.a.
n.a.
37,%2
47,881
51,015
21,387
2,655
21,709
n.a.
10,506
109,524
31,798
46,133
28,078
12,507
2,228
21,331
n.a.
6,194
79,821
4,173
24,059
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
27,625
22,038
n.a.
n.a.
n.a.
n.a.
47,328
n.a.
n.a.
5,572
1,548
16,491
6,557
366
359
n.a.
3,959
22,993
592
200
6,447
2,323
61
18
n.a.
354
6,710
Commercial Banks
A73
4.20—Continued
Banks with foreign offices
Banks with domestic
offices only
Item
Total
Foreign
Domestic
Over 100
Under 10C
76 Total liabilities, limited-life preferred stock, and equity capital
3,367,795
1,901,538
n.a.
n.a.
1,078,452
387,805
77 Total liabilities7
78
Limited-life preferred stock
3,150,282
6
1,797,487
0
411,512
n a.
1,454,399
n.a.
999,584
4
353,211
2
79 Total deposits
80
Individuals, partnerships, and corporations
81
U.S. government
82
States and political subdivisions in the United States
83
Commercial banks in the United States
84
Other depository institutions in the United States
85
Banks in foreign countries
86
Foreign governments and official institutions
87
Certified and official checks
88
All other8
2,631,395
n.a.
n a.
n a.
n a.
n a.
n.a.
n.a.
20,644
1,403,811
n.a.
n.a.
n.a.
n a.
n.a.
n a.
19,346
12,173
293,391
186,957
n a.
n.a.
n.a.
n.a.
n.a.
18,062
863
87,510
1,110,419
1,017,482
5,743
38,692
23,565
4,806
7,537
1,284
11,310
n.a.
883,108
819,598
2,536
43,310
8,530
2,808
118
54
6,155
n.a.
344,476
317,015
825
22,172
1,141
964
n.a.
n.a.
2,316
43
89 Total transaction accounts
90
Individuals, partnerships, and corporations
91
U.S. government
92
States and political subdivisions in the United States
93
Commercial banks in the United States
94
Other depository institutions in the United States
95
Banks in foreign countries
96
Foreign governments and official institutions
97
Certified and official checks
98
All other
354,829
297,520
4,734
10,717
19,282
3,336
7,036
893
11,310
n.a.
234,106
205,864
2,252
11,827
6,656
1,243
93
16
6,155
n.a.
90,851
80,595
718
6,388
561
252
n.a.
n.a.
2,316
22
99 Demand deposits (included in total transaction accounts)
100 Individuals, partnerships, and corporations
101
U.S. government
102
States and political subdivisions in the United States
103 Commercial banks in the United States
104 Other depository institutions in the United States
105 Banks in foreign countries
106 Foreign governments and official institutions
107 Certified and official checks
108 All other
109 Total nontransaction accounts
110 Individuals, partnerships, and corporations
111
U.S. government
112
States and political subdivisions in the United States
113 Commercial banks in the United States
114
U.S. branches and agencies of foreign banks
115
Other commercial banks in the United States
116 Other depository institutions in the United States
117 Banks in foreign countries
118
Foreign branches of other U.S. banks
119
Other banks in foreign countries
120 Foreign governments and official institutions
121 All other
270,478
216,043
4,699
7,883
19,282
3,336
7,034
891
11,310
n.a.
755,591
719,962
1,009
27,974
4,283
368
3,916
1,470
501
1
500
391
n.a.
142,914
121,443
2,234
5,091
6,654
1,228
93
16
6,155
n.a.
649,002
613,734
284
31,482
1,874
205
1,670
1,565
24
18
7
37
n.a.
47,390
41,682
705
1,863
561
241
n.a.
n.a.
2,316
22
253,625
236,421
107
15,784
580
n.a.
n.a.
712
n.a.
n.a.
n.a.
n.a.
21
122
123
124
125
126
127
128
129
130
131
Federal funds purchased and securities sold under agreements to repurchase.
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs..
All other liabilities
Total equity capital9
132
133
134
135
136
137
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the
broker in shares of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits (excluding MMDAs)
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW)
Total time and savings deposits
n a.
n a.
244,390
153,877
90,514
n. a.
114,149
21,909
23,740
n. a.
91,485
217,507
MEMO
138
139
140
141
142
143
144
n.a.
176,085
116,790
59,295
n a.
85,709
21,532
22,035
n.a.
70,497
104,051
959
n.a.
n.a.
n.a.
32,357
4,342
n. a.
n. a.
n. a.
n. a.
175,126
n.a.
n.a.
17,818
53,353
17,189
n.a.
21,096
n.a.
n.a.
65,167
35,919
29,248
4,899
27,651
359
1,585
n.a.
16,815
78,864
3,139
1,168
1,971
497
788
18
120
n.a.
4,173
34,592
505
350
155
58,995
51,344
24,159
4,489
2,498
53,994
20,337
14,684
4,404
n.a.
18,982
761
703
572
n.a.
n.a.
Quarterly averages
145 Total loans
146 Obligations (other than securities) of states and political subdivisions
in the United States
147 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and
telephone and preauthorized transfer accounts)
Nontransaction accounts in domestic offices
148 Money market deposit accounts (MMDAs)
149 Other savings deposits
150 Time certificates of deposit of $100,000 or more
151
All other time deposits
152 Number of banks
Footnotes appear at the end of table 4.22
12,316
232
n.a.
19,670
10,281
132
204,615
88,944
257,028
174,943
30,061
83,452
839,942
134,354
79,091
309
121,984
4,554
89,541
740,194
38,192
29,014
145,926
39,191
1,302
42,214
297,086
978,391
672,684
202,286
20,375
12,677
n.a.
78,922
86,983
41,653
201,571
88,120
176,857
286,251
134,309
78,524
124,304
309,934
37,982
28,766
38,819
145,705
2,615
9,469
n.a.
A74
Special Tables • May 1991
4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1-2-6
Consolidated Report of Condition, December 31, 1990
Millions of dollars
Members
Item
Nonmembers
Total
Total
National
State
2,637,755
2,063,367
1,656,503
406,864
574,388
204,440
100,724
29,619
33,651
5,639
34,807
170,172
90,508
24,444
21,533
4,410
29,278
137,295
72,772
20,463
16,767
3,804
23,489
32,877
17,736
3,981
4,766
606
5,788
34,268
10,216
5,175
12,118
1,229
5,529
2,254,381
1,742,412
1,417,874
324,538
511,968
450,847
111,374
217,402
334,427
74,973
170,533
260,098
60,429
134,548
74,329
14,544
35,984
116,420
36,401
46,869
123,414
93,988
65,072
47,966
3,150
44,816
2,418
6,616
3,236
1,054
2,550
369
3,380
102,657
67,876
48,862
34,304
2,358
31,946
2,052
3,703
812
532
345
65
2,891
82,754
51,794
36,624
24,594
2,158
22,436
976
2,926
637
492
188
43
2,289
19,903
16,081
12,238
9,710
200
9,510
1,076
776
175
40
157
22
602
20,757
26,112
16,210
13,661
791
12,870
365
2,913
2,424
522
2,206
304
489
120,072
46,057
4,355
1,693,213
9,751
1,683,462
96,764
29,451
3,070
1,318,371
7,150
1,311,221
79,004
25,511
2,681
1,084,575
5,803
1,078,772
17,760
3,940
389
233,796
1,347
232,449
23,308
16,606
1,285
374,842
2,601
372,241
694,037
117,854
7,515
340,515
57,884
282,631
18,742
209,411
29,729
2,195
3,144
14,078
524,487
93,232
4,818
256,179
44,528
211,651
14,086
156,172
21,131
1,933
3,068
10,544
447,803
77,323
4,207
219,918
37,247
182,671
12,149
134,207
13,306
1,819
1,335
9,561
76,684
15,910
611
36,261
7,281
28,980
1,938
21,964
7,825
114
1,733
983
169,550
24,621
2,696
84,336
13,356
70,980
4,656
53,239
8,599
262
76
3,533
468,779
466,709
2,069
383,695
381,912
1,784
306,759
305,444
1,315
76,937
76,468
469
85,083
84,798
286
1,892
774
161
1,073
450
112
910
384
108
163
66
4
819
324
49
49 Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
50 Credit cards and related plans
Other
(includes single payment and installment)
51
52 Loans to foreign governments and official institutions
53 Obligations (other than securities) of states and political subdivisions in the United States
54
55
56
57 Loans for purchasing and carrying securities
58
342,675
77,009
113,742
1,425
32,079
1,153
30,926
69,984
12,514
57,469
251,533
42,918
69,390
1,378
26,675
982
25,692
64,476
11,589
52,887
212,822
40,244
58,686
984
20,101
729
19,372
45,496
7,257
38,239
38,711
2,675
10,705
395
6,573
253
6,320
18,980
4,333
14,648
91,142
34,090
44,352
47
5,405
171
5,234
5,507
925
4,583
59
60 Customers' liability on acceptances outstanding
61 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
62
33,197
17,206
47,328
161,728
28,378
16,032
41,828
134,749
23,679
11,881
20,129
89,452
4,698
4,151
21,699
45,298
4,819
1,173
5,500
26,979
1 Total assets6
2 Cash and balances due from depository institutions
3 Cash items in process of collection and unposted debits
4 Currency and coin
Balances due from depository institutions in the United States
6 Balances due from banks in foreign countries and foreign central banks
7 Balances due from Federal Reserve Banks
8 Total securities, loans and lease financing receivables, (net of unearned income)
9 Total securities, book value
10 U.S. Treasury securities
11 U.S. government agency and corporation obligations
12
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
13
All other
14 Securities issued by states and political subdivisions in the United States
15 Other domestic debt securities
16
All holdings of private certificates of participation in pools of residential mortgages
17
All other
18 Foreign debt securities
19
20 Marketable
21
Investments in mutual funds
T>
23
Less: Net unrealized loss
24
25 Federal funds sold and securities purchased under agreements to resell10
26 Federal funds sold
27 Securities purchased under agreements to resell
28 Total loans and lease financing receivables, gross
29 LESS; Unearned income on loans
30 Total loans and leases (net of unearned income)
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Total loans, gross, by category
Loans secured by real estate
Construction and land development
Farmland
1-4 family residential properties
Revolving, open-end and extended under lines of credit
All other loans
Multifamily (5 or more) residential properties
Nonfarm nonresidential properties
Loans to commercial banks in the United States
Loans to other depository institutions in the United States
Loans to banks in foreign countries
Loans to finance agricultural production and other loans to farmers
To U.S. addressees (domicile)
To non-U.S. addressees (domicile)
46 Acceptances of other banks11
47 Of U.S. banks
48
Commercial Banks A73
4.21—Continued
Members
Total
Total
National
State
2,637,755
2,063,367
1,656,503
406,864
2,453,983
1,923,756
1,546,799
376,957
65 Total deposits
66
Individuals, partnerships, and corporations
67
U.S. government
68
States and political subdivisions in the United States
69
Commercial banks in the United States
70
Other depository institutions in the United States
71
Banks in foreign countries
72
Foreign governments and official institutions
73
Certified and official checks
1,993,528
1,837,080
8,279
32.095
7,614
7,655
1,337
17,465
1,543,728
1,419,170
7,221
60,369
29,073
5,636
7,036
1,131
14,092
1,265,869
1,168,134
6,304
50,118
22,466
4,724
3,959
676
9,489
277,859
251,036
918
10,251
6,607
913
3,077
455
4,603
74 Total transaction accounts
75
Individuals, partnerships, and corporations
76
U.S. government
77
States and political subdivisions in the United States
78
Commercial banks in the United States
79
Other depository institutions in the United States
80
Banks in foreign countries
81
Foreign governments and official institutions
82
Certified and official checks
588,935
503,384
6,987
22,545
25,938
4,579
7,129
909
17,465
476,422
402,798
6,061
17,889
24,145
3,708
6,864
864
14,092
381,874
326,280
5,273
14,870
18,746
2,908
3,864
443
9,489
94,548
76,518
788
3,019
5,399
800
3,000
421
4,603
83 Demand deposits (included in total transaction accounts)
84
Individuals, partnerships, and corporations
85
U.S. government
86
States and political subdivisions in the United States
87
Commercial banks in the United States
88
Other depository institutions in the United States
89
Banks in foreign countries
90
Foreign governments and official institutions
91
Certified and official checks
413,392
337,485
6,933
12,974
25,936
4,565
7,127
907
17,465
342,572
275,990
6,020
10,900
24,144
3,699
6,863
864
14,092
269,445
219.853
5,235
8,917
18,745
2,900
3,864
443
9,489
73,128
56,137
785
1,983
5,399
800
2,999
421
4,603
1,404,593
1,333,697
1,293
59,456
6,158
572
5,585
3,035
526
19
507
428
1,067,307
1,016,372
1,160
42,480
4.927
216
4,711
1.928
172
13
159
267
883,996
841.854
1,031
35,248
3,720
73
3,647
1,815
95
11
84
233
183,311
174,518
129
7,232
1,207
143
1,064
113
77
2
75
34
240,293
35,919
29,248
22,717
81,004
17,548
1,585
21.096
97,308
201,784
24,028
14,695
20,556
57,021
16,374
1,074
17,278
83,219
145,327
20.555
12,255
14.556
44,562
12,181
1,015
15,979
63,288
56,456
3,474
2,440
6,000
12,459
4,193
58
1,299
19,931
183,772
139,610
109,703
29,907
2,653
112,989
71,681
38,843
8,893
1,468
87,741
52,991
26,914
4,104
1,387
73,173
45,666
22,941
3,765
81
14,569
7,324
3,973
340
29,950
22,810
19,176
3,634
338,969
168,035
566,047
296,927
34,614
172,993
1,580,136
270,141
129,761
420,228
217,958
29,218
132,173
1,201,156
222,982
97,300
357,917
187,635
110,984
996,425
47,159
32,462
62,311
30,323
11,056
21,189
204,731
1,651,075
33,052
1,285,641
27,637
1,057,597
20,737
228,044
6,900
165,906
126,248
106,022
20,226
335,881
166,643
301,161
5%,185
267,253
128,688
222,101
445,923
220,750
96,201
190,754
372,258
46,504
32,487
31,347
73,665
2,847
1,563
1,312
251
63 Total liabilities and equity capital
64 Total liabilities
4
92 Total nontransaction accounts
93
Individuals, partnerships, and corporations
94
U.S. government
95
States and political subdivisions in the United States
96
Commercial banks in the United States
97
U.S. branches and agencies of foreign banks
98
Other commercial banks in the United States
99
Other depository institutions in the United States
100
Banks in foreign countries
101
Foreign branches of other U.S. banks
102
Other banks in foreign countries
103
Foreign governments and official institutions
104
105
106
107
108
109
110
111
112
Federal funds purchased and securities sold under agreements to repurchase 12
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
113 Total equity capital 9
82,001
MEMO
114
115
116
117
118
119
120
121
122
123
124
125
126
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the broker in shares
of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings accounts
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
AU NOW accounts (including Super NOW accounts)
Total time and savings deposits
Quarterly averages
127 Total loans
•
128 Obligations (other than securities) of states and political subdivisions in the United States . . .
129 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized
transfer accounts)
130
131
132
133
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposits of $100,000 or more
All other time deposits
134 Number of banks
Footnotes appear at the end of table 4.22
18,162
A76
Special Tables • May 1991
4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1,2,6
Consolidated Report of Condition, December 31, 1990
Millions of dollars
Members
Nonmembers
Total
Total
National
State
3,025,560
2,216,042
1,777,738
438,304
809,518
230,778
33,457
34,027
163,294
181,005
25,982
19,717
135,306
146,084
21,701
15,042
109,340
34,921
4,281
4,675
25,965
49,774
7,475
14,310
27,988
2,603,104
1,879,263
1,526,298
352,965
723,841
568,177
420,130
81,946
58,245
3,581
54,664
7,856
4,136
1,873
2,724
461
3,719
145,560
71,066
4,834
1,901,044
11,677
1,889,367
379,745
280,950
55,020
39,499
2,557
36,942
4,275
1,140
855
380
95
3,135
107,998
40,432
3,323
1,399,458
7,938
1,391,520
297,034
223,892
41,574
28,186
2,292
25,894
3,381
906
764
211
68
2,475
87,980
34,261
2,907
1,147,698
6,413
1,141,284
82,711
57,058
13,446
11,313
265
11,048
894
234
91
169
26
660
20,018
6,171
417
251,761
1,525
250,235
188,432
139,180
26,926
18,746
1,024
17,722
3,580
2,9%
1,019
2,344
366
584
37,561
30,634
1,511
501,586
3,739
497,847
798,074
125,550
17,223
398,027
61,323
336,704
20,825
236,450
564,705
96,429
7,957
278,673
45,993
232,680
14,820
166,826
479,026
79,698
6,745
237,353
38,337
199,016
12,716
142,514
85,679
16,731
1,212
41,320
7,655
33,664
2,104
24,312
233,369
29,121
9,266
119,354
15,330
104,024
6,004
69,623
35,555
32,917
508,423
3,558
26,362
17,045
400,078
1,718
16,627
14,825
319,154
1,489
9,735
2,220
80,924
229
9,193
15,872
108,345
1,840
381,844
79,569
150,351
33,625
1,213
32,412
73,259
33,789
17,224
47,328
174,454
267,175
44,018
83,932
27,226
1,005
26,221
66,579
28,570
16,048
41,828
139,726
225,212
41,224
70,094
20,554
749
19,804
46,990
23,820
11,894
20,129
93,462
41,963
2,794
13,838
6,673
256
6,416
19,589
4,750
4,154
21,699
46,264
114,670
35,551
66,419
6,398
207
6,191
6,680
5,219
1,176
5,500
34,728
48 Total liabilities and equity capital
3,025,560
2,216,042
1,777,738
438,304
809,518
49 Total liabilities4
2,807,194
2,063,030
1,657,511
405,519
744,163
50 Total deposits
51
Individuals, partnerships, and corporations
52 U.S. government
53 States and political subdivisions in the United States
54 Commercial banks in the United States
55 Other depository institutions in the United States
56 Certified and official checks
57 All other
2,338,004
2,154,095
9,104
104,173
33,237
8,578
19,781
9,036
1,679,307
1,544,355
7,586
68,381
29,782
5,968
15,049
8,186
1,373,756
1,267,785
6,579
56,618
22,893
4,989
10,242
4,648
305,551
276,570
1,007
11,763
6,889
979
4,806
3,538
658,6%
609,740
1,519
35,792
3,455
2,610
4,732
849
58 Total transaction accounts
59 Individuals, partnerships, and corporations
60
U.S. government
61
States and political subdivisions in the United States
62 Commercial banks in the United States
63 Other depository institutions in the United States
64 Certified and official checks
65 All other
679,786
583,978
7,704
28,933
26,499
4,831
19,781
8,060
513,472
435,663
6,386
20,201
24,615
3,813
15,049
7,745
411,757
352,899
5,516
16,781
19,006
2,994
10,242
4,318
101,715
82,764
870
3,421
5,609
819
4,806
3,427
166,314
148,315
1,318
8,731
1,884
1,017
4,732
316
66 Demand deposits (included in total transaction accounts)
67
Individuals, partnerships, and corporations
68
U.S. government
69 States and political subdivisions in the United States
70 Commercial banks in the United States
71
Other depository institutions in the United States
72 Certified and official checks
73 All other
460,781
379,167
7,638
14,837
26,497
4,806
19,781
8,057
362,388
293,287
6,342
11,553
24,614
3,800
15,049
7,743
285,268
233,777
5,475
9,468
19,005
2,982
10,242
4,318
77,121
59,510
867
2,085
5,609
818
4,806
3,426
98,393
85,880
1,2%
3,284
1,883
1,005
4,732
313
1,658,218
1,570,117
1,400
75,240
6,738
3,748
975
1,165,835
1,108,692
1,200
48,180
5,167
2,155
441
961,999
914,886
1,063
39,838
3,887
1,995
330
203,836
193,806
136
8,342
1,280
160
111
492,383
461,425
201
27,060
1,571
1,593
534
1 Total assets6
2 Cash and balances due from depository institutions
3 Currency and coin
Noninterest-bearing balances due from commercial banks
4
5 Other
6 Total securities, loans, and lease financing receivables (net of unearned income)
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Total securities, book value
U.S. Treasury securities and U.S. government agency and corporation obligations
Securities issued by states and political subdivisions in the United States
Other debt securities
All holdings of private certificates of participation in pools of residential mortgages ..
All other
Equity securities
Marketable
Investments in mutual funds
Other
Less: Net unrealized loss
Other equity securities
Federal funds sold and securities purchased under agreements to resell10
Federal funds sold
Securities purchased under agreements to resell
Total loans and lease financing receivables, gross
LESS: Unearned income on loans
Total loans and leases (net of unearned income)
Total loans, gross, by category
25 Loans secured by real estate
26 Construction and land development
27 Farmland
28
1-4 family residential properties
29
Revolving, open-end loans, and extended under lines of credit
30
All other loans
31 Multifamily (5 or more) residential properties
32 Nonfarm nonresidential properties
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
Loans to depository institutions
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
Acceptances of other banks
Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
Credit cards and related plans
Other (includes single payment installment)
Obligations (other than securities) of states and political subdivisions in the United States
Taxable
Tax-exempt
All other loans
Lease financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining assets
74 Total nontransaction accounts
75 Individuals, partnerships, and corporations
76 U.S. government
77
States and political subdivisions in the United States
78 Commercial banks in the United States
79 Other depository institutions in the United States
80 All other
Commercial Banks
All
4.22—Continued
Members
81
82
83
84
85
86
87
88
89
Nonmembers
Total
Item
Federal funds purchased and securities sold under agreements to repurchase
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
90 Total equity capital9
Total
National
State
243,432
37,087
31,219
23,214
81,792
17,567
1,705
21.096
101,481
203,307
24,647
15,599
20,773
57,329
16,390
1,103
17,278
84,821
146,395
20,905
12,972
14,730
44,824
12,194
1,036
15,979
64,576
56,911
3,742
2,627
6,042
12,505
4,197
66
1,299
20,246
40,125
12,440
15,620
2,441
24,462
1,176
602
3,818
16,660
218,366
153,012
120,226
32,785
65,355
23,786
8,517
2,465
1,207
371
992
19
2,306
6,814
22,340
8,341
2,257
1,178
239
985
19
2,194
6,732
12,859
3,386
1,864
863
81
541
19
1,403
4,350
9,482
4,955
393
315
158
444
0
792
2,382
1,446
176
208
29
132
7
0
111
81
131,971
72,442
39,547
9,465
94,959
53,191
27,098
4,279
78,948
45,791
23,057
3,876
16,011
7,400
4,041
403
37,012
19,251
12,449
5,185
30,082
22,818
19,180
3,638
7,264
377,161
197,049
711,973
336,118
35,916
215,207
1,877,222
286,572
141,190
474,556
233,860
29,658
149,009
1,316,919
236,104
106,343
400,895
200,135
18,522
124,756
1,088,488
50,468
34,846
73,660
33,726
11,136
24,253
228,431
90,589
55,860
237,418
102,258
6,259
66,198
560,303
1,853,361
1,364,712
1,119,175
245,536
488,649
207,558
142,725
119,472
23,253
64,833
373,862
195,410
339,980
741,890
283,562
140,051
237,772
500,183
233,725
105,193
203,085
415,197
49,837
34,858
34,688
84,987
90,301
55,358
102,207
241,707
12,316
4,983
3,976
1,007
7,333
MEMO
91 Assets held in trading accounts 13
92
U.S. Treasury securities
93
U.S. government agency corporation obligations
94
Securities issued by states and political subdivisions in the United States
95
Other bonds, notes, and debentures
96
Certificates of deposit
97
Commercial paper
98
Bankers acceptances
99
Other
100 Total individual retirement accounts (IRA) and Keogh plan accounts
101 Total brokered deposits
102 Total brokered retail deposits
103 Issued in denominations of $100,000 or less
104 Issued in denominations greater than $100,000 and participated out by the broker
in shares of $100,000 or less
105
106
107
108
109
110
111
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW)
Total time and savings deposits
Quarterly averages
112 Total loans
113 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized
transfer accounts)
114
115
116
117
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposit of $100,000 or more
All other time deposits
118 Number of banks
1. Effective Mar. 31, 1984, the report of condition was substantially revised for
commercial banks. Some of the changes are as follows: (1) Previously, banks with
international banking facilities (IBFs) that had no other foreign offices were
considered domestic reporters. Beginning with the Mar. 31, 1984 call report these
banks are considered foreign and domestic reporters and must file the foreign and
domestic report of condition; (2) banks with assets greater than $1 billion have
additional items reported; (3) the domestic office detail for banks with foreign
offices has been reduced considerably; and (4) banks with assets under $25 million
have been excused from reporting certain detail items.
2. The "n.a." for some of the items is used to indicate the lesser detail available
from banks without foreign offices, the inapplicability of certain items to banks
that have only domestic offices and/or the absence of detail on a fully consolidated
basis for banks with foreign offices.
3. All transactions between domestic and foreign offices of a bank are reported
in "net due from" and "net due to." All other lines represent transactions with
parties other than the domestic and foreign offices of each bank. Since these
intraoffice transactions are nullified by consolidation, total assets and total
liabilities for the entire bank may not equal the sum of assets and liabilities
respectively, of the domestic and foreign offices.
4. Foreign offices include branches in foreign countries, Puerto Rico, and in
U.S. territories and possessions; subsidiaries in foreign countries; all offices of
Edge act and agreement corporations wherever located and IBFs.
5. The 'over 100' column refers to those respondents whose assets, as of June
30 of the previous calendar year, were equal to or exceeded $100 million. (These
respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column
refers to those respondents whose assets, as of June 30 of the previous calendar
year, were less than $100 million. (These respondents filed the FFIEC 034 call
report.)
6. Since the domestic portion of allowances for loan and lease losses and
allocated transfer risk reserve are not reported for banks with foreign offices, the
components of total assets (domestic) will not add to the actual total (domestic).
7. Since the foreign portion of demand notes issued to the U.S. Treasury is not
reported for banks with foreign offices, the components of total liabilities (foreign)
will not add to the actual total (foreign).
8. The definition of 'all other' varies by report form and therefore by column in
this table. See the instructions for more detail.
9. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
10. Only the domestic portion of federal funds sold and securities purchased
under agreements to resell are reported here, therefore, the components will not
add to totals for this item.
11. "Acceptances of other banks" is not reported by domestic respondents less
than $300 million in total assets, therefore the components will not add to totals for
this item.
12. Only the domestic portion of federal funds purchased and securities sold
are reported here, therefore the components will not add to totals for this item.
13. Components of assets held in trading accounts are only reported for banks
with total assets of $1 billion or more; therefore the components will not add to the
totals for this item.
78
Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN,
Chairman
OFFICE OF BOARD MEMBERS
JOSEPH R . COYNE, Assistant to the Board
DONALD J . W I N N , Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E . WERNEKE, 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
OLIVER IRELAND, Associate General Counsel
RICKI R . TIGERT, Associate General Counsel
KATHLEEN M . O ' D A Y , Assistant General Counsel
MARYELLEN A . BROWN, Assistant to the General Counsel
OFFICE OF THE SECRETARY
WILLIAM W . WILES, Secretary
JENNIFER J . JOHNSON, Associate
BARBARA R . LOWREY, Associate
Secretary
Secretary
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
GRIFFITH L . GARWOOD, Director
GLENN E . LONEY, Assistant Director
ELLEN MALAND, Assistant Director
DOLORES S . SMITH, Assistant Director
DIVISION OF BANKING
SUPERVISION AND REGULATION
WILLIAM TAYLOR, Staff Director
D O N E . KLINE, Associate Director
FREDERICK M . STRUBLE, Associate Director
WILLIAM A . RYBACK, Deputy Associate Director
STEPHEN C . SCHEMERING, Deputy Associate Director
RICHARD SPILLENKOTHEN, Deputy Associate Director
HERBERT A . BIERN, Assistant Director
JOE M . CLEAVER, Assistant Director
ROGER T. COLE, Assistant Director
JAMES I . GARNER, Assistant Director
JAMES D . GOETZINGER, Assistant Director
MICHAEL G . MARTINSON, Assistant Director
ROBERT S . PLOTKIN, Assistant Director
SIDNEY M . SUSSAN, Assistant Director
LAURA M . HOMER, Securities Credit Officer
WAYNE D . ANGELL
EDWARD W . KELLEY, JR.
DIVISION OF INTERNATIONAL FINANCE
EDWIN M . TRUMAN, Staff Director
LARRY J. PROMISEL, Senior Associate Director
CHARLES J . SIEOMAN, Senior Associate Director
DAVID H . HOWARD, Deputy Associate Director
ROBERT F. GEMMILL, StaffAdviser
DONALD B . ADAMS, Assistant Director
DALE W . HENDERSON, Assistant Director
PETER HOOPER I I I , Assistant Director
KAREN H . JOHNSON, Assistant Director
RALPH W . SMITH, JR. , Assistant Director
DIVISION OF RESEARCH AND STATISTICS
MICHAEL J . PRELL, Director
EDWARD C . ETTIN, Deputy Director
THOMAS D . SIMPSON, Associate Director
LAWRENCE SLIFMAN, Associate Director
DAVID J . STOCKTON, Associate Director
MARTHA BETHEA, Deputy Associate Director
PETER A . TINSLEY, Deputy Associate Director
MYRON L . KWAST, Assistant Director
PATRICK M . PARKINSON, Assistant Director
MARTHA S . SCANLON, Assistant Director
JOYCE K . ZICKLER, Assistant Director
LEVON H . GARABEDIAN, Assistant Director
(.Administration)
DIVISION OF MONETARY AFFAIRS
DONALD L . KOHN, Director
DAVID E . LINDSEY, Deputy Director
BRIAN F. MADIGAN, Assistant Director
RICHARD D . PORTER, Assistant Director
NORMAND R . V . BERNARD, Special Assistant to the Board
OFFICE OF THE INSPECTOR GENERAL
Inspector General
BARRY R . SNYDER, Assistant Inspector General
BRENT L . BOWEN,
79
JOHN P. LAWARE
DAVID W . MULLINS, JR.
OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
S . DAVID FROST, Staff Director
WILLIAM SCHNEIDER, Special Assignment:
Project Director, National Information Center
PORTIA W . THOMPSON, Equal Employment Opportunity
Programs Officer
DIVISION OF HUMAN RESOURCES
MANAGEMENT
DAVID L . SHANNON, Director
JOHN R . WEIS, Associate Director
ANTHONY V. DIGIOIA, Assistant Director
JOSEPH H . HAYES, JR., Assistant Director
FRED HOROWITZ, Assistant Director
OFFICE OF THE CONTROLLER
GEORGE E . LIVINGSTON, Controller
STEPHEN J. CLARK, Assistant Controller
(Programs and
Budgets)
DARRELL R . PAULEY,
Assistant Controller (Finance)
DIVISION OF SUPPORT SERVICES
ROBERT E . FRAZIER, Director
GEORGE M . LOPEZ, Assistant Director
DAVID L . WILLIAMS, Assistant Director
OFFICE OF THE DIRECTOR FOR
INFORMATION RESOURCES MANAGEMENT
STEPHEN R . MALPHRUS, Director
MARIANNE M . EMERSON, Assistant Director
EDWARD T. MULRENIN, Assistant Director
DIVISION OF HARDWARE AND SOFTWARE
SYSTEMS
BRUCE M . BEARDSLEY, Director
DAY W . RADEBAUGH, JR., Assistant Director
ELIZABETH B . RIGGS, Assistant Director
DIVISION OF APPLICATIONS DEVELOPMENT AND
STATISTICAL SERVICES
WILLIAM R . JONES, Director
ROBERT J . ZEMEL, Associate Director
Po KYUNG KIM, Assistant Director
RAYMOND H . MASSEY, Assistant Director
RICHARD C . STEVENS, Assistant Director
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK ACTIVITIES
THEODORE E . ALLISON, Staff Director
DIVISION OF RESERVE BANK OPERATIONS
AND PAYMENT SYSTEMS
CLYDE H . FARNSWORTH, JR., Director
DAVID L . ROBINSON, Deputy Director (Finance and
Control)
BRUCE J. SUMMERS, Deputy Director (Payments and
Automation)
CHARLES W . BENNETT, Assistant Director
JACK DENNIS, JR., Assistant Director
EARL G . HAMILTON, Assistant Director
JOHN H . PARRISH, Assistant Director
LOUISE L . ROSEMAN, Assistant Director
FLORENCE M . YOUNG, Assistant Director
80
Federal Reserve Bulletin • May 1991
Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET COMMITTEE
MEMBERS
ALAN GREENSPAN,
Chairman
WAYNE D . ANGELL
ROBERT P. BLACK
ROBERT P. FORRESTAL
E . GERALD CORRIGAN,
SILAS KEEHN
EDWARD W . KELLEY, JR.
Vice Chairman
JOHN P. LAWARE
DAVID W . MULLINS, JR.
ROBERT T. PARRY
ALTERNATE MEMBERS
ROGER GUFFEY
W . LEE HOSKINS
THOMAS C . MELZER
JAMES H . OLTMAN
RICHARD F. SYRON
STAFF
J . ALFRED BROADDUS, JR., Associate Economist
RICHARD G . DAVIS, Associate Economist
DAVID E . LINDSEY, Associate Economist
LARRY J. PROMISEL, Associate Economist
KARL A . SCHELD, Associate Economist
CHARLES J. SIEGMAN, Associate Economist
THOMAS D . SIMPSON, Associate Economist
LAWRENCE SLIFMAN, Associate Economist
SHEILA T. TSCHINKEL, Associate Economist
DONALD L . KOHN, Secretary and Economist
NORMAND R . V. BERNARD, Deputy Secretary
JOSEPH R . COYNE, Assistant Secretary
GARY P. GILLUM, Assistant Secretary
J . VIRGIL MATTINGLY, JR., General Counsel
ERNEST T. PATRIKIS, Deputy General Counsel
MICHAEL J. PRELL, Economist
EDWIN M . TRUMAN, Economist
JACK H . BEEBE, Associate Economist
PETER D . STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY COUNCIL
PAUL HAZEN, President
LLOYD P. JOHNSON, Vice President
TERRENCE A. LARSEN, Third District
JOHN B. MCCOY, Fourth District
B. KENNETH WEST, Seventh District
DAN W. MITCHELL, Eighth District
LLOYD P. JOHNSON, Ninth District
JORDAN L. HAINES, Tenth District
EDWARD E. CRUTCHFIELD, Fifth District
RONALD G. STEINHART, Eleventh District
E.B. Robinson, Jr., Sixth District
PAUL HAZEN, Twelfth District
IRA STEPANIAN, First District
CHARLES S. SANFORD, JR., Second District
Secretary
Associate Secretary
HERBERT V. PROCHNOW,
WILLIAM J. KORSVIK,
CONSUMER ADVISORY COUNCIL
JAMES W . HEAD, Berkeley, California, Chairman
LINDA K . PAGE, Columbus, Ohio, Vice Chairman
VERONICA E. BARELA, Denver, Colorado
GEORGE H. BRAASCH, Oakbrook, Illinois
TOYE L. BROWN, Boston, Massachusetts
CLIFF E. COOK, Tacoma, Washington
R.B. (JOE) DEAN, JR., Columbia, South Carolina
DENNY D. DUMLER, Denver, Colorado
WILLIAM C . DUNKELBERG, Philadelphia, P e n n s y l v a n i a
JAMES FLETCHER, C h i c a g o , Illinois
GEORGE C. GALSTER, Wooster, Ohio
E. THOMAS GARMAN, Blacksburg, Virginia
DONALD A. GLAS, Hutchinson, Minnesota
DEBORAH B . GOLDBERG, Washington, D . C .
MICHAEL M . GREENFIELD, St. L o u i s , M i s s o u r i
JOYCE HARRIS, Madison, Wisconsin
JULLA E. HILER, Marietta, Georgia
HENRY JARAMILLO, B e l e n , N e w M e x i c o
BARBARA KAUFMAN, San Francisco, California
KATHLEEN E. KEEST, Boston, Massachusetts
COLLEEN D. MCCARTHY, Kansas City, Missouri
MICHELLE S . MEIER, Washington, D . C .
BERNARD F. PARKER, JR., Detroit, M i c h i g a n
OTIS PITTS, JR., M i a m i , Florida
VINCENT P. QUAYLE, Baltimore, Maryland
CLIFFORD N . ROSENTHAL, N e w York, N e w York
ALAN M . SILBERSTEIN, N e w York, N e w York
NANCY HARVEY STEORTS, D a l l a s , T e x a s
DAVID P. WARD, Chester, New Jersey
SANDRA L . WILLETT, B o s t o n , M a s s a c h u s e t t s
THRIFT INSTITUTIONS ADVISORY COUNCIL
MARION O . SANDLER, Oakland, California, President
LYNN W. HODGE, Greenwood, South Carolina, Vice President
DANIEL C. ARNOLD, Houston, Texas
JAMES L. BRYAN, Richardson, Texas
DAVID L . HATFIELD, K a l a m a z o o , M i c h i g a n
ELLIOT K. KNUTSON, Seattle, Washington
JOHN WM. LAISLE, Oklahoma City, Oklahoma
RICHARD A. LARSON, West Bend, Wisconsin
PRESTON MARTIN, San Francisco, California
RICHARD D. PARSONS, New York, New York
EDMOND M . SHANAHAN, C h i c a g o , Illinois
WOODBURY C. TITCOMB, Worcester, Massachusetts
82
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Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or
more to one address, $1.25 each.
Federal Reserve Regulatory Service. Looseleaf; updated at least
monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.
Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
The Payment System Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all four
Handbooks plus substantial additional material.) $200.00
per year.
Rates for subscribers outside the United States are as follows
and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
CONSUMER EDUCATION PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies are
available without charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Federal Reserve Regulations
A Guide to Business Credit for Women, Minorities, and Small
Businesses
How to File A Consumer Credit Complaint
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancing
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
Making Deposits: When Will Your Money Be Available?
When Your Home is on the Line: What You Should Know About
Home Equity Lines of Credit
PAMPHLETS FOR FINANCIAL INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable
for banks, bank holding companies, and creditors.
Limit of fifty copies
The Board of Directors' Opportunities in Community
Reinvestment
The Board of Directors' Role in Consumer Law Compliance
Combined Construction/Permanent Loan Disclosure and
Regulation Z
Community Development Corporations and the Federal Reserve
Construction Loan Disclosures and Regulation Z
Finance Charges Under Regulation Z
How to Determine the Credit Needs of Your Community
Regulation Z: The Right of Rescission
The Right to Financial Privacy Act
Signature Rules in Community Property States: Regulation B
83
Signature Rules: Regulation B
Timing Requirements for Adverse Action Notices: Regulation B
What An Adverse Action Notice Must Contain: Regulation B
Understanding Prepaid Finance Charges: Regulation Z
158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE
PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
159. N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, b y N e l l i e Liang
STAFF STUDIES:
Summaries Only Printed in the
Bulletin
Studies andpapers on economic andfinancial subjects that are of
general interest. Requests to obtain single copies of the full text
or to be added to the mailing list for the series may be sent to
Publications Services.
and Donald Savage. February 1990. 12 pp.
160. BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, b y
Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.
Staff Studies 1-145 are out of print.
146. THE ROLE OF THE PRIME RATE M THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 , b y
Thomas F. Brady. November 1985. 25 pp.
1 4 7 . REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN-
DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr
and Deborah Johnson. December 1985. 42 pp.
148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY TAX ACT: SOME SIMULATION
RESULTS, by Flint Brayton and Peter B. Clark. December
1985. 17 pp.
1 4 9 . THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE AND AFTER ACQUISITION, b y Stephen
A. Rhoades. April 1986. 32 pp.
1 5 0 . STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION AND AN APPLICATION, b y John T.
Rose and John D. Wolken. May 1986. 13 pp.
1 5 1 . RESPONSES TO DEREGULATION : RETAIL DEPOSIT PRICING
FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice
P. White, Paul F. O'Brien, and Mary M. McLaughlin.
January 1987. 30 pp.
1 5 2 . DETERMINANTS OF CORPORATE MERGER ACTIVITY: A
REVIEW OF THE LITERATURE, by Mark J. Warshawsky.
April 1987. 18 pp.
153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and
Alice P. White. September 1987.14 pp.
1 5 4 . THE EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES,
by Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
1 5 5 . THE FUNDING OF PRIVATE PENSION PLANS, b y Mark J.
Warshawsky. November 1987. 25 pp.
1 5 6 . INTERNATIONAL TRENDS FOR U . S . BANKS AND BANKING
MARKETS, by James V. Houpt. May 1988. 47 pp.
1 5 7 . M 2 PER UNIT OF POTENTIAL G N P AS AN ANCHOR FOR
THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D.
Porter, and David H. Small. April 1989. 28 pp.
REPRINTS OF SELECTED Bulletin ARTICLES
Some Bulletin articles are reprinted. The articles listed below
are those for which reprints are available. Most of the articles
reprinted do not exceed twelve pages.
Limit of ten copies
Recent Developments in the Bankers Acceptance Market. 1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and U.S.
Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the 1983
and 1986 Surveys of Consumer Finances. 10/87.
Home Equity Lines of Credit. 6/88.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89.
The Activities of Japanese Banks in the United Kingdom and in
the United States, 1980-88. 2/90.
Industrial Production: 1989 Developments and Historical
Revision. 4/90.
U.S. International Transactions in 1989. 5/90.
Recent Developments in Industrial Capacity and Utilization.
6/90.
Developments Affecting the Profitability of Commercial Banks.
7/90.
Recent Developments in Corporate Finance. 8/90.
U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90.
The Transmission Channels of Monetary Policy: How Have
They Changed? 12/90.
84
Index to Statistical Tables
References are to pages A3-A77 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20, 72-77
Domestic finance companies, 35
Federal Reserve Banks, 10
Financial institutions, 25
Foreign banks, U.S. branches and agencies, 21
Automobiles
Consumer installment credit, 38, 39
Production, 48, 49
BANKERS acceptances, 9, 22, 23
Bankers balances, 18-20, 72, 74, 76. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 33
Rates, 23
Branch banks, 21, 56
Business activity, nonfinancial, 45
Business expenditures on new plant and equipment, 34
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 47
Capital accounts
Banks, by classes, 18, 73,75, 77
Federal Reserve Banks, 10
Central banks, discount rates, 68
Certificates of deposit, 23
Commercial and industrial loans
Commercial banks, 16, 19, 72, 74, 76
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21, 72, 74, 76
Consumer loans held, by type and terms, 38, 39
Loans sold outright, 19
Nondeposit funds, 17
Number by classes, 73, 75, 77
Real estate mortgages held, by holder and property, 37
Time and savings deposits, 3
Commercial paper, 22, 23, 35
Condition statements (See Assets and liabilities)
Construction, 45, 50
Consumer installment credit, 38, 39
Consumer prices, 45, 47
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 34
Profits and their distribution, 34
Security issues, 33,66
Cost of living (See Consumer prices)
Credit unions, 28, 38. (See also Thrift institutions)
Currency and coin, 18, 72, 74, 76
Currency in circulation, 4, 13
Customer credit, stock market, 24
DEBITS to deposit accounts, 14
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-21, 73, 75, 77
Ownership by individuals, partnerships, and corporations, 21
Turnover, 15
Depository institutions
Reserve requirements, 8
Reserves and related items, 3,4, 5,12
Deposits (See also specific types)
Banks, by classes, 3, 18-20,21, 73, 75, 77
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 34
EMPLOYMENT, 46
Eurodollars, 23
FARM mortgage loans, 37
Federal agency obligations, 4, 9,10,11, 30, 31
Federal credit agencies, 32
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 29
Receipts and outlays, 27, 28
Treasuryfinancingof surplus, or deficit, 27
Treasury operating balance, 27
Federal Financing Bank, 27, 32
Federal funds, 6, 17,19,20, 21,23, 27
Federal Home Loan Banks, 32
Federal Home Loan Mortgage Corporation, 32, 36, 37
Federal Housing Administration, 32, 36, 37
Federal Land Banks, 37
Federal National Mortgage Association, 32, 36, 37
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11,29
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Savings and Loan Insurance Corporation insured
institutions, 25
Federally sponsored credit agencies, 32
Finance companies
Assets and liabilities, 35
Business credit, 35
Loans, 38, 39
Paper, 22, 23
Financial institutions
Loans to, 19,20,21
Selected assets and liabilities, 25
Float, 4
Flow of funds, 40, 42, 43,44
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 69
Foreign trade, 55
85
Foreigners
Claims on, 56, 58, 61, 62,63, 65
Liabilities to, 20, 55, 56, 58, 59, 64, 66, 67
GOLD
Certificate account, 10
Stock, 4, 55
Government National Mortgage Association, 32, 36, 37
Gross national product, 52
HOUSING, new and existing units, 50
INCOME, personal and national, 45, 52, 53
Industrial production, 45,48
Installment loans, 38, 39
Insurance companies, 25,29, 37
Interest rates
Bonds, 23
Consumer installment credit, 39
Federal Reserve Banks, 7
Foreign central banks and foreign countries, 68
Money and capital markets, 23
Mortgages, 36
Prime rate, 22
International capital transactions of United States, 54-68
International organizations, 58, 59, 61, 64, 65
Inventories, 52
Investment companies, issues and assets, 34
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 25
Commercial banks, 3, 16, 18-20, 37, 72
Federal Reserve Banks, 10,11
Financial institutions, 25, 37
LABOR force, 46
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20,72, 74, 76
Federal Reserve Banks, 4, 5, 7, 10, 11
Financial institutions, 25, 37
Insured or guaranteed by United States, 36, 37
MANUFACTURING
Capacity utilization, 47
Production, 47,49
Margin requirements, 24
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 49
Mobile homes shipped, 50
Monetary and credit aggregates, 3,12
Money and capital market rates, 23
Money stock measures and components, 3,13
Mortgages (See Real estate loans)
Mutual funds, 34
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 28
National income, 52
OPEN market transactions, 9
PERSONAL income, 53
Prices
Consumer and producer, 45, 51
Stock market, 24
Prime rate, 22
Producer prices, 45, 51
Production, 45, 48
Profits, corporate, 34
REAL estate loans
Banks, by classes, 16, 19,20, 37, 74
Financial institutions, 25
Terms, yields, and activity, 36
Type of holder and property mortgaged, 37
Repurchase agreements, 6,17, 19, 20, 21
Reserve requirements, 8
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 55
Residential mortgage loans, 36
Retail credit and retail sales, 38, 39,45
SAVING
Flow of funds, 40,42, 43,44
National income accounts, 52
Savings and loan associations, 25, 37, 38, 40. (See also Thrift
institutions)
Savings banks, 25, 37, 38
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 32
Foreign transactions, 66
New issues, 33
Prices, 24
Special drawing rights, 4, 10, 54, 55
State and local governments
Deposits, 19,20
Holdings of U.S. government securities, 29
New security issues, 33
Ownership of securities issued by, 19, 20, 25
Rates on securities, 23
Stock market, selected statistics, 24
Stocks (See also Securities)
New issues, 33
Prices, 24
Student Loan Marketing Association, 32
TAX receipts, federal, 28
Thrift institutions, 3. (See also Credit unions and Savings and
loan associations)
Time and savings deposits, 3, 13, 17,18,19, 20, 21, 73, 75, 77
Trade, foreign, 55
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 27
Treasury operating balance, 27
UNEMPLOYMENT, 46
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 27
U.S. government securities
Bank holdings, 18-20, 21, 29
Dealer transactions, positions, and financing, 31
Federal Reserve Bank holdings, 4, 10,11, 29
Foreign and international holdings and transactions, 10, 29,
67
Open market transactions, 9
Outstanding, by type and holder, 25, 29
Rates, 23
U.S. international transactions, 54-68
Utilities, production, 49
VETERANS Administration, 36, 37
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 45, 51
YIELDS (See Interest rates)
86
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106 Richard N. Cooper
Jerome H. Grossman
Richard F. Syron
Robert W. Eisenmenger
NEW YORK*
10045 Cyrus R.Vance
Ellen V. Futter
14240 Mary Ann Lambertsen
E. Gerald Corrigan
James H. Oltman
PHILADELPHIA
19105 Peter A. Benoliel
Jane G. Pepper
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101 John R.Miller
A. William Reynolds
45201 Kate Ireland
15230 Robert P. Bozzone
W.LeeHoskins
William H. Hendricks
Buffalo
Cincinnati
Pittsburgh
23219 Anne Marie Whittemore
Henry J. Faison
Baltimore
21203 John R. Hardesty, Jr.
Charlotte
28230 Anne M. Allen
Culpeper Communications
and Records Center 22701
RICHMOND*
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
CHICAGO*
Detroit
ST. LOUIS
Little Rock
Louisville
Memphis
MINNEAPOLIS
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
SAN FRANCISCO
Los Angeles
Portland
Salt Lake City
Seattle
Vice President
in charge of branch
James O. Aston
Robert P. Black
Jimmie R. Monhollon
30303 Larry L. Prince
Edwin A. Huston
35283 Roy D.Terry
32231 Hugh M. Brown
33152 Dorothy C. Weaver
37203 Shirley A. Zeitlin
70161 Vacancy
Robert P. Forrestal
Jack Guynn
60690 Charles S. McNeer
Richard G. Cline
48231 Phyllis E. Peters
Silas Keehn
Daniel M. Doyle
63166 H. Edwin Trusheim
Robert H. Quenon
72203 Wm. Earle Love
40232 Lois H.Gray
38101 Katherine H. Smythe
Thomas C. Melzer
James R. Bowen
55480 Delbert W. Johnson
Gerald A. Rauenhorst
59601 James E. Jenks
Gary H. Stern
Thomas E. Gainor
64198 Fred W. Lyons, Jr.
Burton A. Dole, Jr.
80217 Barbara B. Grogan
73125 Ernest L. Holloway
68102 Herman Cain
Roger Guffey
Henry R. Czerwinski
75222 Hugh G. Robinson
Leo E. Linbeck, Jr.
79999 W. Thomas Beard, III
77252 Gilbert D. Gaedcke, Jr.
78295 Roger R. Hemminghaus
Robert D. McTeer, Jr.
To be announced
94120 Robert F. Erburu
Carolyn S. Chambers
90051 Yvonne B. Burke
97208 William A. Hilliard
84125 D.N.Rose
98124 Bruce R. Kennedy
Robert T. Parry
Carl E. Powell
Charles A. Cerino1
Harold J. Swart1
Ronald B. Duncan1
Albert D. Tinkelenberg1
John G. Stoides1
Donald E. Nelson1
FredR. Herr1
James D. Hawkins1
James T. Curry m
Melvyn K. Purcell
Robert J. Musso
Roby L.Sloan1
Karl W. Ashman
Howard Wells
Ray Laurence
John D. Johnson
Kent M.Scott
David J. France
Harold L. Shewmaker
Tony J. Salvaggio1
Sammie C. Clay
Robert Smith, m 1
Thomas H. Robertson
Thomas C. Warren2
Angelo S. Carella1
E. Ronald Liggett1
Gerald R. Kelly1
•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York
11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa
50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
2. Executive Vice President.
87
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
LEGEND
—— Boundaries of Federal Reserve Districts
Boundaries o f Federal Reserve Branch
Territories
®
Federal Reserve Bank Cities
*
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
Federal Reserve Statistical Releases
Available on the Commerce Department's
Electronic Bulletin Board
The Board of Governors of the Federal Reserve
System makes some of its statistical releases available to the public through the U . S . Department of
Commerce's electronic bulletin board. Computer
access to the releases can be obtained by sub-
scription. F o r further information regarding a
subscription to the electronic bulletin board,
please call (703) 487-4630. T h e releases transmitted to the electronic bulletin board, o n 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 E x c h a n g e Rates
M o n t h l y / e n d of m o n t h
G.17
Industrial Production and Capacity Utilization
Monthly/midmonth
G.19
C o n s u m e r Installment Credit
Monthly/fifth business day
Z.7
F l o w of Funds
Quarterly
Publications of Interest
FEDERAL RESERVE REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are published separately as handbooks pertaining to monetary
policy, securities credit, consumer affairs, and the
payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each
contains citation indexes and a subject index.
The Monetary Policy and Reserve
Requirements
Handbook contains Regulations A, D, and Q, plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions Deregulation Committee.
The Securities Credit Transactions Handbook contains Regulations G, T, U , and X, dealing with extensions of credit for the purchase of securities, together
with all related statutes, Board interpretations, rul-
U.S. MONETARY
POLICY AND FINANCIAL
MARKETS
U.S. Monetary Policy and Financial Markets by AnnMarie Meulendyke offers an in-depth description of
the way monetary policy is developed by the Federal
Open Market Committee and the techniques employed
to implement policy at the Open Market Trading Desk.
Written from her perspective as a senior economist in
the Open Market Function at the Federal Reserve
Bank of N e w York, Ann-Marie Meulendyke describes
the tools and the setting of policy, including many of
the complexities that differentiate the process from
simpler textbook models. Included is an account of a
day at the Trading Desk, from morning informationgathering through daily decisionmaking and the execution of an open market operation.
The book also places monetary policy in a broader
ings, and staff opinions. Also included is the Board's
list of OTC margin stocks.
The Consumer and Community Affairs
Handbook
contains Regulations B, C, E, M, Z, AA, and BB, and
associated materials.
The Payment System Handbook deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulation
CC, Regulation J, the Expedited Funds Availability
Act and related statutes, official Board commentary on
Regulation CC, and policy statements on risk reduction in the payment system.
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context, examining first the evolution of Federal Reserve monetary policy procedures from their beginnings in 1914 to the end of the 1980s. It indicates how
policy operates most directly through the banking
system and the financial markets and describes key
features of both. Finally, the book turns its attention to
the transmittal of monetary policy actions to the U . S .
economy and throughout the world.
The book is $5.00 a copy for U.S. purchasers and
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