Full text of Federal Reserve Bulletin : May 1994
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VOLUME 8 0 •
NUMBER 5 •
MAY 1994
FEDERAL RESERVE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
>S1/
PUBLICATIONS COMMITTEE
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'. i • ' .
j,
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn
• J. Virgil Mattingly, Jr. • Michael J. Prell • Richard Spillenkothen • Edwin M. Truman
The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions
expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics
Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
365 U.S. INTERNATIONAL TRANSACTIONS
IN 1993
The U.S. current account deficit widened from
$66 billion in 1992 to $109 billion in 1993—
the largest deficit in six years. This broadest
measure of the external deficit worsened
largely because U.S. domestic economic
activity gained momentum while growth in
the major U.S. markets abroad on average
was sluggish. All components of the current account either remained constant or
deteriorated.
379 INDUSTRIAL PRODUCTION AND
CAPACITY UTILIZATION FOR
MARCH 1994
Industrial production rose 0.5 percent in
March after a gain of 0.6 percent in February.
At 115.6 percent of its 1987 average, industrial production was 5.1 percent higher in
March than it was a year earlier. The utilization of industrial capacity increased 0.2 percentage point, to 83.6 percent.
382 STATEMENTS TO THE CONGRESS
Alan Greenspan, Chairman, Board of Governors, presents the views of the Federal
Reserve Board on proposals to consolidate the
banking regulators into a single agency and
says that the Board agrees with the proposals'
objectives of reducing the government's costs
of regulating and supervising banks and bankers' costs and burdens from duplicative examination and overlapping supervision and, in
general, of making the supervisory process
more efficient and more accountable but
believes that it is possible to achieve the
objectives without creating the risks of one
regulator that so trouble the Board, before the
Senate Committee on Banking, Housing, and
Urban Affairs, March 2, 1994.
385 John P. LaWare, member, Board of Governors, describes the actions the Board has taken
to regulate bank sales of mutual funds and
presents the Board's views on what additional
regulatory or congressional action is necessary and says that the selling of mutual funds
and other investment products in a manner
that is not misleading and that provides customers with accurate and complete information is an important element of safe and sound
banking that the Board intends to enforce,
before the Subcommittee on Financial Institutions Supervision, Regulation and Deposit
Insurance of the House Committee on Banking, Finance and Urban Affairs, March 8,
1994.
389 Governor LaWare discusses regulatory and
other intiatives designed to stimulate bank
lending, especially to small businesses, and
says that the Federal Reserve recognizes the
highly important role that business firms play
in the economy and the need to promote the
flow of credit to these firms and that it will
continue to seek ways, consistent with safety
and soundness standards, to achieve this
objective, before the House Committee on
Small Business, March 17, 1994.
393 ANNOUNCEMENTS
Action taken by the Federal Open Market
Committee.
Retirement of Silas Keehn as President of the
Federal Reserve Bank of Chicago.
Availability of some transcripts of meetings of
the Federal Open Market Committee.
Appointment of new member to the Consumer
Advisory Council.
Establishment of temporary swap facility with
Mexico.
Publication of 80th Annual Report, 1993 of
the Federal Reserve Board.
Proposal to amend Regulation Y.
395 MINUTES OF THE FEDERAL OPEN
MARKET COMMITTEE
At its meeting on February 3-4, 1994, the
Committee affirmed the ranges for monetary
growth in 1994 that it had established on a
tentative basis at its meeting on July 6-7,
1993; these ranges were 1 to 5 percent for M2
and 0 to 4 percent for M3. The monitoring
range for total domestic nonfinancial debt was
left unchanged at 4 to 8 percent. 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.
For the intermeeting period ahead, the
Committee adopted a directive that called for
a slight increase in the degree of pressure on
reserve positions and that did not include a
presumption about the likely direction of any
adjustment to policy during the intermeeting
period. The directive stated that in the context
of the Committee's long-run objectives for
price stability and sustainable economic
growth, and giving careful consideration to
economic, financial, and monetary developments, slightly greater or slightly lesser reserve restraint might be acceptable during the
intermeeting period. The reserve conditions
associated with this directive were expected to
be consistent with moderate growth in M2 and
M3 over the first half of 1994.
410 LEGAL DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and
pending cases.
467 DIRECTORS OF FEDERAL RESERVE
BANKS AND BRANCHES
List of directors by Federal Reserve District.
A1 FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as of
March 29, 1994.
A3 GUIDE TO TABULAR PRESENTATION
A4 Domestic Financial Statistics
A45 Domestic Nonfinancial Statistics
A53 International Statistics
A67 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
A68 INDEX TO STATISTICAL TABLES
A84 BOARD OF GOVERNORS AND STAFF
A86 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A88 FEDERAL RESERVE BOARD
PUBLICATIONS
A90 MAPS OF THE FEDERAL RESERVE
SYSTEM
A92 FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES
U.S. International Transactions in 1993
Catherine L. Mann of the Board's Division of International Finance prepared this article.
The U.S. current account deficit widened from
$66 billion in 1992 to $109 billion in 1993—the
largest deficit in six years. This broadest measure
of the external deficit worsened largely because
U.S. domestic economic activity gained momentum
while growth in the major U.S. markets abroad
on average was sluggish. All components of the
current account either remained constant or
deteriorated.
The first component of the current account, trade
in goods and services, registered a deficit of
$77 billion, almost double the deficit of 1992. This
widening was fully accounted for by a widening of
the merchandise trade deficit, which measures trade
in goods only, from $96 billion in 1992 to $132 billion in 1993. Exports increased $16 billion whereas
imports rose $53 billion. On services transactions,
the surplus of $56 billion in 1993 was unchanged
from that in 1992 (chart 1 and table 1).
Net investment income, the sum of net income
from direct investments and net payments on portfolio investments and the third major component of
1. U.S. external balances, 1983-93'
Billions of dollars
—
Services y * ^
^
+
0
Current account excluding j.
special grants
A / \
50
—
—100
Merchandise t r a d e \ y
—150
1
1
1
1
1985
1
1
1
1
1
1990
1
1
1
1. The data are quarterly at seasonally adjusted annual rates.
SOURCE. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
the current account, fell nearly to zero for the year.
Net direct investment income fell a bit as payments
on foreign direct investments in the United States
recovered from the unusually low levels of recent
years, whereas net portfolio payments increased as
the growing net external debt outweighed lower
interest rates.
Net unilateral transfers were little changed in
1993. Transfers of $33 billion from the United
1. U.S. current account, 1988-93
Billions of dollars
1988
1989
1990
1991
1992
1993
Changes,
1992-93
-114.9
-127.0
12.1
-90.3
-115.2
24.9
-78.3
-109.0
30.7
-27.9
-73.8
45.9
-39.7
-96.2
56.4
-76.7
-132.4
55.7
-37.0
-36.2
-.7
Investment income, net
Direct investment, net
Portfolio investment, net
12.6
38.7
-26.1
14.9
48.9
-34.0
20.3
56.2
-35.9
13.1
52.8
-39.7
6.2
48.3
-42.0
.1
46.0
-45.9
-6.2
-2.3
-3.9
Unilateral transfers, net
Foreign cash grants to the United States
Other transfers
-25.0
-26.1
6.6
42.5
-35.9
-32.9
1.3
-34.2
-32.5
Item
Goods and services, net
Trade balance
Services, net
Current account balance
-25.0
-26.1
-33.8
17.0
-50.8
-32.5
.4
-1.3
1.7
-127.2
-101.6
-91.9
-8.3
-66.4
-109.2
-42.8
-127.2
-101.6
-108.9
-50.8
-67.7
-109.2
-41.5
*
*
*
MEMO:
Current account balance excluding foreign
cash grants
* Less than 0.05.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
U.S. international transactions accounts.
366
Federal Reserve Bulletin • May 1994
2. Nominal and real exchange value of the dollar against
currencies of selected countries, 1987-931
Index, 1987 = 100
110
1. 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. The countries in the G-10 index are BelgiumLuxembourg, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden,
Switzerland, and the United Kingdom. The countries in the developingcountries index are Brazil, Hong Kong, Korea, Malaysia, Mexico, the Philippines, Singapore, and Taiwan.
The data are quarterly, except for nominal G-10 rates, which are weekly.
States to countries abroad were split about equally
between private remittances and transfers and U.S.
government grants (for development and related
assistance and for financing of purchases of U.S.
military goods).
The behavior of the current account was little
affected by changes in the prices of traded goods.
Import and export prices remained generally flat
during the year and only minimally affected
the growth of imports and exports. Prices were
flat because their main determinants—costs and
exchange rates—changed little. Cost pressures
remained low as economic activity gained strength
in the United States and in some foreign industrial
economies only toward the end of the year, and
most economies remained well below the level of
output that might have triggered rising inflation.
The foreign exchange value of the dollar traded
within a relatively narrow range in 1993 compared
with previous years, though over the year it appreciated about 7 percent in nominal terms against the
weighted average of currencies of the industrial
Group of Ten (G-10) countries. The lagged effect
of the real appreciation of the dollar against many
of the European currencies in late 1992, however,
tended to depress U.S. real net exports of goods and
services, especially vis-&-vis the European markets,
which were also experiencing particularly weak
economic activity. Against the currencies of the
developing countries, the dollar was nearly flat in
real terms in 1993, in contrast to its downward drift
of previous years (chart 2).
ECONOMIC INFLUENCES
ON US. INTERNATIONAL TRANSACTIONS
The proximate determinants of changes in U.S.
trade flows and the external balance are (1) rates of
economic activity in the United States and its trading partners abroad and (2) changes in relative
prices. These factors are influenced by economic
policies and private saving and investment decisions, which along with tastes, technology, and
factor endowments are the fundamental determinants of trade flows and the external balance.
Over the past fifteen years, the importance of
rates of economic activity and changes in relative
3. Historical perspective on the U.S. external balance and
its proximate determinants, 1978-93'
Billions of 1987 dollars
U.S. real net exports of goods and services
—
—100
Ratio of foreign to U.S. real GDP2
—110
—
Index, 1986: Q4 = 100
CPI-adjusted foreign exchange value of the U.S. dollar3
1980
1985
1990
1. The data are quarterly. In the top and middle panels, they are at seasonally
adjusted annual rates.
2. The GDP for foreign countries is the weighted average of the G-10
countries, other industrial countries, and developing countries.The weights are
based on U.S. bilateral nonagricultural exports (average of 1987-89).
3. See note for chart 2 for the G-10 and eight developing countries.
U.S. International Transactions in 1993
367
U.S. Trade, Economic Activity, and Relative Prices
Many studies offer econometric estimates of the responsiveness of real U.S. trade flows to real economic
activity and relative prices. Greatly simplified, the analytical relationship between trade flows and the proximate determinants of trade discussed in the text is
shown below in the log-linear form commonly used in
econometric estimation:
log(X) = aO + al log(y*) + a2 log(RPX)
log(M) = bO + bl log(y) + b2 log(RPM)
where X and M are measures of the volume of exports
and imports; Y and Y* are measures of real economic
activity for the United States and the foreign countries;
and RPX and RPM are measures of the relative price of
exports and imports. Coefficients al and bl are the
estimated responsiveness of exports and imports to
changes in real activity; coefficients a2 and b2 are the
estimated responsiveness of trade flows to changes in
relative prices; and coefficients aO and bO are constants.
research differs as to the extent and selection of the data
included for developing and industrial countries. Finally,
the years covered by the analyses vary.1
The table shows estimates, from a representative selection of research, of the responsiveness of trade flows to
changes in economic activity and relative prices. These
studies indicate the near unit value and symmetric response of trade flows to changes in relative prices and
show the asymmetric response of U.S. trade to changes in
foreign and U.S. economic activity.
Study (year)2
Price
responsiveness
Export
Houthakker-Magee (1968) . . . .
Warner-Kreinin (1983)
Helkie-Hooper (1988)
Marquez (1990)
Meade (1991)
-1.51
-.95
-.83
-.99
-.99
Import
-.54
-1.19
-1.15
-.92
-1.02
Activity
responsiveness
Export
Import
.99
1.26
2.19
1.54
1.25
1.51
1.77
2.11
1.94
2.02
Empirical analyses differ in their choice of data to
measure activity and relative prices and in the econometric technique used. For example, some studies use
real total exports and total imports as the measures of
trade flows, whereas others use real nonagricultural
exports and real non-oil imports. Still others further
disaggregate the computer sector. To measure activity,
some studies use real GDP whereas others use real
domestic demand. Finally, measures of relative prices
differ, with studies using unit value indexes, producer
price indexes, or consumer price indexes as components of the relative price measures. Moreover,
1. For an excellent review of the literature, see Morris Goldstein and
Mohsin S. Kahn, "Income and Price Effects in Foreign Trade," in Ronald
W. Jones and Peter B. Kenen, eds., Handbook of International Economics, vol. 2 (New York: North-Holland, 1985), pp. 1041-105.
2. H.S. Houthakker and Stephen P. Magee, "Income and Price Elasticities in World Trade," Review of Economics and Statistics, vol. 51 (1969),
pp. 111-25; William L. Helkie and Peter Hooper, "An Empirical Analysis
of the External Deficit, 1980-1986," in Ralph C. Bryant, Gerald Holtham,
and Peter Hooper, eds., External Deficits and the Dollar (The Brookings
Institution, 1988), pp. 10-56; Jaime Marquez, "Bilateral Trade Elasticities," Review of Economics and Statistics, vol. 72 (1990), pp. 70-77;
Ellen E. Meade, "Computers and the Trade Deficit," in Peter Hooper and
J. David Richardson, eds., International Economic Transactions (University of Chicago, 1991), pp. 61-85; Dennis Warner and Mordechai E.
Kreinin, "Determinants of International Trade Flows," Review of Economics and Statistics, vol. 65 (1983), pp. 96-104.
prices in affecting the path of the U.S. external
balance has varied (chart 3). From 1981 to 1988,
the effect of the deterioration and subsequent
improvement in relative prices (as measured by the
real CPI-adjusted exchange value of the dollar) was
substantial. During that period, growth rates of
gross domestic product (GDP) in the United States
and its principal trading partners abroad were similar, so they had less of an effect on the U.S. external
balance. Since 1989, however, relative prices have
changed little, and the differential rate of growth in
GDP has been the more important factor influencing the U.S. external balance.
Econometric analyses of the joint effect of the
proximate determinants on the U.S. external balance indicate that U.S. imports and exports respond
to a similar extent to changes in relative prices but
differ importantly in their response to changes in
economic activity here and abroad (box). The estimated responsiveness of U.S. imports to changes in
U.S. economic activity is about V/4-IV3 times
larger than the responsiveness of exports to changes
in foreign economic activity. This asymmetry
implies that, even if the United States and its trading partners were to grow at the same rate, the U.S.
external balance would worsen.
368
Federal Reserve Bulletin • May 1994
Although it has been a consistent feature of
econometric analyses over the past fifty years, the
activity asymmetry presents a puzzle: In theory,
growth rates of economic activity in countries
around the world should tend to converge in the
long run; but, unless relative prices change, this
convergence would yield an ever-growing U.S.
external deficit. In an analysis of this puzzle, an
important question arises: What economic factors
may be missing from the equations for the U.S.
external balance? One possibility is the way
changes in technology affect the international supplies of differentiated products and their prices. In
any case, for the near term, the current situation—
flat relative prices, relatively stronger U.S. economic activity, and a large initial external deficit—
compounds the effect of the asymmetry in income
responsiveness on the U.S. external balance.
2. Growth of real GDP in selected foreign economies,
1991-93
Relative Rates of Economic
rate of U.S. exports overall. But differentials in
GDP growth rates across foreign markets also
affect the magnitude and destination of U.S. exports
and gradually change the relative importance of
U.S. export markets. In 1993, a return to more
robust economic activity in several of the larger
U.S. export markets boosted overall U.S. export
growth, particularly late in the year. Relatively
faster rates of growth in expanding, but smaller,
export markets have over time increased their
importance for the growth of U.S. exports (table 2).
GDP growth in the G-10 countries generally
remained quite slow in 1993, with two exceptions:
Canada and the United Kingdom. In both of these
major U.S. trading partners, growth strengthened
during the year. Canadian GDP was bolstered by
strong investment and positive net exports, principally to the expanding markets in the United States.
U.K. growth benefited from the depreciation of
sterling and the lowering of interest rates after the
departure of the pound from the exchange rate
mechanism of the European Monetary System. In
contrast, growth in Germany and Japan remained
weak or negative. Reductions in official interest
rates in Germany were relatively tentative, as
money growth and inflation remained stubbornly
high. In Japan, economic challenges, including the
appreciation of the yen, declines in asset prices,
and capital-stock adjustment, as well as political
uncertainties, kept domestic demand and economic
activity weak.
Activity
The effect of differences in rates of GDP growth
for the behavior of the U.S. external balance appears strikingly in data from the 1990s. The U.S.
external balance improved in 1990 and 1991 when
the rate of growth of U.S. GDP was very weak. In
contrast, in 1992 and 1993, U.S. real GDP growth
exceeded foreign growth, and the U.S. external
balance worsened (chart 4).
The overall movement of the U.S. external balance is affected by how exports and imports individually respond to changes in economic activity.
Slow economic activity abroad slows the growth
4. Changes in real gross domestic product and in the U.S.
external balance, Q4 to Q4, 1990-93
a
Percent
of dollars
Foreign GDP1
40
U.S. goods and services balance
1990
1991
1992
1993
1. The GDP for foreign countries is the weighted average of the G-10
countries, other industrial countries, and developing countries.The weights are
based on U.S. bilateral nonagricultural exports (average of 1987-89).
Percent change, year over year
Country
G-102
Canada
Japan
United Kingdom
Germany
Developing countries2
Mexico
Korea
Taiwan
Hong Kong
China
1991
.3
-1.7
4.1
-2.3
6.9
5.0
3.6
8.5
7.2
4.2
7.7
1992
19931
.7
.9
2.4
1.2
.2
-.5
1.7
2.0
-1.3
4.1
4.2
.4
5.3
2.6
4.8
6.6
5.3
12.8
6.0
5.3
13.4
1. Data for 1993 are partly estimated.
2. The countries in the G-10 index are Belgium-Luxembourg, Canada,
France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, and
the United Kingdom. The countries in the developing countries index are
Brazil, Hong Kong, Korea, Malaysia, Mexico, the Philippines, Singapore,
and Taiwan. The indexes are weighted by U.S. bilateral nonagricultural
export shares (average of 1987-89).
SOURCE. Various national sources.
U.S. International Transactions in 1993
The developing countries had much stronger
overall economic activity than the industrial countries. But GDP growth rates in the developing
countries in 1993 were about the same as those in
1992 and quite a bit weaker than those in 1990 and
in 1991. In particular, economic activity in several
important export markets—Mexico and the newly
industrializing economies (NIEs) of Asia—slowed
appreciably. In Mexico, both inflation and economic activity slowed as domestic economic policies effectively damped the rate of output growth,
which had been more rapid in 1991. Uncertainty
over the ratification of the North American Free
Trade Agreement also contributed to the slowing of
growth, at least until after NAFTA was ratified late
in 1993. In Taiwan and Korea, domestic economic
policies over the past two years have reined in
rapid growth and the associated inflation and deterioration of the external balance.
Relative Prices of Exports and Imports
The other proximate determinant of U.S. external
performance is the relative price, or price competitiveness, of those U.S. goods and services that
compete against imports in the home market or
against exports in markets abroad. The relative
price of imports changed little in 1993 (chart 5).
The relative price of U.S. exports was also about
flat, on balance, in 1993 after having fallen in 1992
following three years of improved international
competitiveness.
5. Relative prices of exports and imports, 1987-93'
Index, 1989= 1.0
1
I
I
1987
I
I
1990
I
I
I
1993
1. The data are quarteriy.
2. Ratio of foreign prices to U.S. export prices (nonagricultural, excluding
computers).
3. Ratio of U.S. import prices (non-oil, excluding computers) to U.S. GDP
deflator.
369
6. Relative costs of production, 1987-93'
Percentage change, Q4 to Q4
United States
Foreign
••
a
1
1
1987
1
1
1990
i-t-—0
1
1
1
1993
1. The data are producer price indexes. The index for foreign countries is the
weighted average of the G-10 countries.The weights are constant shares in U.S.
non-oil imports (average of 1987-89).
Determinants of international price competitiveness include the relative costs of production,
exchange rates, and the behavior of profit margins.
Domestic cost pressures were subdued and produced little change in competitiveness (chart 6). An
appreciation of more than 5 percent of the real
foreign exchange value of the dollar against the
currencies of the G-10 and eight developing countries, weighted by their shares in world trade, somewhat reduced U.S. export price competitiveness,
but modest responses in the profit margins of U.S.
exporters offset this effect. When these foreign
countries' currencies were weighted by shares in
U.S. imports, the real exchange value of the dollar
was flat, a factor contributing to the flat import
prices and to little change in the competitiveness
of U.S. domestic products that compete against
imports.
Little change in import or export price competitiveness in 1993 masked a downward trend in the
price of traded goods relative to the market basket
of traded and nontraded goods in the U.S. economy
(chart 7). In recent years, when international
competitiveness has not stemmed from inflation
differentials or from changes in exchange rates,
firms exposed to international competition may
have increased productivity to reduce prices and
improve performance.
Since 1987, labor productivity in U.S. manufacturing and the internationalization of U.S. manufacturing (as measured by the ratio of the sum of
exports and imports to domestic consumption) have
both increased (chart 8). A regression line relating
labor productivity and internationalization indi-
370
Federal Reserve Bulletin • May 1994
8. Labor productivity and internaiionalization, 1987-93'
7. Relative price of traded goods, 1987-93'
Labor productivity 2
Index, 1989= 1.00
—1.00
— .95
— .90
— •
1
1
1
1
1
1
1990
1987
1
20
1993
1. Ratio of the sum offixed-weightprice indexes (nonagricultural export and
non-oil import) divided by two to the U.S. CPI. The data are quarterly.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
national income and product accounts.
cates a positive relationship, supporting the notion
that the disciplines and challenges of international
competition may be an important reason for
increased productivity and the declining relative
price of traded goods.
DEVELOPMENTS IN MERCHANDISE AND
SERVICES TRADE
In 1993, sluggish economic activity abroad restrained the growth of goods and services exports,
22
24
26
28
Trade shares2
30
32
1. Labeled points are annual averages. Other data points are quarterly.
2. Percentage change of quarterly data at annual rates.
3. Imports plus exports divided by apparent domestic consumption (output
plus imports less exports).
whereas import growth rose as the U.S. economy
strengthened. In real terms, net exports of goods
and services deteriorated $57 billion (1987 dollars)
as real imports grew nearly three times faster than
real exports did. Agricultural exports were flat as
U.S. output in the 1993 crop year fell because of
floods and droughts. The value of oil imports was
steady as a sharp drop in the price of imported oil
offset a large increase in the quantity imported.
Falling prices yielded large increases in the quantity of computer imports and exports, but in terms
of value, computer imports grew moderately while
3. U.S. merchandise trade, 1991-93
Billions of dollars, seasonally adjusted
1992
Item
1991
1992
1993
1993
Q4
Q1
Q2
Q3
Q4
Trade balance
-74
-96
-132
-26
-29
-34
-36
-33
Exports
Agricultural
Nonagricultural
Computers
Other capital goods
Consumer goods
Automotive products
Industrial supplies
All other exports
417
40
377
27
140
46
40
110
14
440
44
396
29
148
50
47
110
12
457
44
413
29
154
53
52
112
13
114
11
103
8
38
13
13
28
3
112
11
101
7
37
13
13
27
3
113
11
102
7
39
13
13
28
3
112
11
101
7
37
14
12
28
3
120
11
109
8
41
14
14
29
3
Imports
Petroleum and products
Nonpetroleum
Computers
Other capital goods
Consumer goods
Automotive products
Industrial supplies
Foods and other imports
491
52
439
26
95
108
86
81
44
536
52
485
32
102
123
92
89
47
589
52
538
38
114
134
102
100
48
140
14
126
9
27
32
24
23
12
141
13
128
9
27
32
25
23
12
147
14
133
9
28
33
26
25
12
148
13
135
10
28
34
25
26
12
153
12
141
10
31
34
27
26
13
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts.
U.S. International Transactions in 1993
exports were flat (table 3). Generally, prices for
most products changed little, so most of the growth
in exports and imports was in volume rather than
value.
4.
U.S. nonagricultural exports, by importing region,
1990-93
Billions of dollars, seasonally adjusted at annual rates
Percentage
share
Importing region
Merchandise
Exports
Merchandise exports grew about AV2 percent in real
terms from the fourth quarter of 1992 to the fourth
quarter of 1993, down from the 7 percent growth
rate for 1992 and well off the 9 percent pace of
1991. For the first three quarters of 1993, export
growth in real terms was near zero. For the fourth
quarter, exports increased substantially with much
of the increase resulting from shipments of automotive products to Canada and Mexico, machinery to
the United Kingdom, and aircraft to OPEC and the
Asian NIEs. Computer exports, a very important
export sector, grew 15 percent in real terms—
somewhat slower than the extremely rapid pace of
recent years. Exports of large jet aircraft fell about
17 percent from their peak in early 1992, when
they accounted for nearly 6 percent of nonagricultural exports.
In recent years, developing-country markets have
been critical for U.S. export performance (table 4).
Historically, the industrial countries have accounted for about two-thirds of US. nonagricultural exports (indicated by the 1990 shares in the
table); but exports to the developing countries
accounted for virtually all the growth in U.S.
exports in 1991 and 1992. Revived economic
growth in some of the industrial countries and the
cooling-off of growth in some of the developing
countries resulted in a return to more normal patterns in 1993, although the developing-country
markets still accounted for more than half of U.S.
export growth.
Almost half of the increase in merchandise
exports last year went to Canada, the largest U.S.
trading partner. A significant share of those exports
were auto parts, which were reimported into the
United States to satisfy a strong U.S. demand
for automobiles. However, exports of industrial
supplies and materials and of industrial and service machinery were also strong, supporting
investment-led growth in Canada. Strong growth of
consumer goods exports to Latin America and
of machinery exports to Singapore and China
371
Dollar change, Q4-Q4
1990
1991:Q4
1992:Q4
1993:Q4
100.0
24.1
22.7
25.4
Industrial countries1 ...
Canada
Japan
Western Europe
66.2
22.5
11.4
29.7
2.7
5.2
-3.3
.6
-.9
3.4
-1.2
-4.3
12.3
11.8
-1.1
3.3
Developing countries1 .
Latin America
Asian NIEs2
Other Asia3
33.8
14.1
9.9
7.7
21.4
10.6
3.6
5.4
23.6
8.2
7.0
7.0
13.1
4.0
1.2
7.1
Total
1. Composition as designated by the Department of Commerce: "Industrial countries" comprises Japan, Canada, Western Europe, Australia, and
New Zealand. "Developing countries" comprises East and Central Europe,
Latin America, Asian NIEs, Other Asia (and Middle East), the Caribbean,
Oceania, and Africa.
2. Comprises Hong Kong, Singapore, Taiwan, and Korea.
3. Includes China.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
U.S. international transactions accounts.
reflected the sources of internal growth in those
countries. Exports to OPEC countries, where oil
revenues have been depressed by declining oil
prices, increased only marginally. Shipments to
Japan, the second largest trading partner, and to the
sluggish economies in continental Europe actually
declined.
Merchandise
Imports
Merchandise imports grew about 14 percent in real
terms during 1993, somewhat faster than the 1992
pace of 11 percent and twice the 1991 recessionyear pace of 7 percent. The growth in imports was
broadly based across commodity categories. The
growth in imports of machinery, autos, and consumer durables was faster than the average growth
rate for all imports, as domestic demand for these
products responded strongly to the environment of
lower interest rates in 1993. The fastest-growing
component, computers, accounted for one-third of
overall growth in merchandise imports in real
terms.
Just as U.S. export growth has responded to
differential growth rates in the destination markets,
the sources of U.S. non-oil imports have been
changing, although in this case the driving factor
appears to be differences in the relative prices of
372
5.
Federal Reserve Bulletin • May 1994
U.S. non-oil imports, by exporting region, 1990-931
Billions of dollars, seasonally adjusted at annual rates
Percentage
share
Exporting region
Index i')S7
1991 :Q4
1992:Q4
1993:Q4
100.0
16.8
47.6
59.3
—
65.3
19.7
20.7
23.7
-3.9
3.8
-.5
-6.7
29.5
8.1
7.6
14.1
32.3
12.1
10.0
10.4
Developing countries ..
Latin America
Asian NIEs
Other Asia
34.7
10.5
13.8
9.4
20.7
5.1
3.3
11.8
18.1
4.8
1.0
12.9
27.0
9.5
2.3
12.8
Industrial countries
Canada
Japan
Western Europe
Billions of 1987 dollars
Dollar change, Q4-Q4
1990
Total
9. Computer prices and trade, 1987-93
Surplus/deficit
1. See table 4, notes 1,2, and 3 and source.
—
imports across source markets. Imports from the
industrial countries have historically accounted for
about two-thirds of non-oil imports (indicated by
the 1990 shares in table 5). However, the lagged
effects of the depreciation of the dollar against the
currencies of Europe in 1989 and 1990 encouraged
a substitution toward imports from the developing countries. The share of the industrial countries
returned to more normal patterns in 1993, although
the developing countries still accounted for nearly
half of U.S. imports.
One of the most notable examples of this pattern
of change in the sources of U.S. non-oil imports
is the shift among the developing countries in
Asia. In 1990, the developing countries of Asia
("Asian NIEs" and "Other Asia" in tables 4 and 5)
accounted for about one-fourth of U.S. imports, and
since then this group has accounted for about onethird of the increase in U.S. imports. However,
rising wages in the Asian NEEs have encouraged
these economies to invest and shift production to
other Asian countries such as China, Thailand, and
Malaysia. Consequently imports from the NIEs
have fallen dramatically as a share of U.S. imports,
whereas imports from other countries in Asia, particularly nondurable consumer goods from China,
have increased. In 1993, imports from these other
Asian countries accounted for one-fifth of total
imports.
Computer
Markets
While the relative prices of non-oil imports and
nonagricultural exports were generally flat in 1993,
- I 1
1
1987
1
•
1
0
1
1990
1
1
1
1
1993
1. Fixed-weight price indexes are from U.S. national income and product
accounts.
2. The data are quarterly at seasonally adjusted annual rates.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
national income and product accounts.
and therefore did not significantly affect the level
of trade, the relative prices of computer products
continued to decline markedly, with the import and
export quantities of computers, peripherals, and
parts rising concomitantly (chart 9). Computers,
peripherals, and parts accounted for 16 percent of
real non-oil imports and 15 percent of real nonagricultural exports in 1993, up from 7 percent and
10 percent respectively in 1990. Moreover, the
deterioration in 1993 of $14 billion (in 1987 dollars) in the real computer trade balance to a deficit
of $23 billion (in 1987 dollars) accounted for more
than one-third of the overall deterioration in the
real non-oil, nonagricultural, merchandise trade
balance in 1993.
Part of the deterioration in the computer balance
reflected a relatively faster rate of economic activity in the United States. However, patterns of computer trade also derive from investment strategies
around the world of U.S. multinational businesses.
The value of U.S.-owned assets in the developing
countries of Asia increased much more quickly
during the 1980s than did the value of assets in
Europe or other countries (chart 10). Over the same
U.S. International Transactions in 1993
10. Trade and investment links in computers, 1985-93
373
flows in computers, peripherals, and parts between
the United States and these two countries, particularly Japan, have been large.
Oil Markets
1. Includes office equipment.
2. Data on the value of assets in Japan and Canada are confidential and are
included in "rest of world."
3. For 1988 only, data combine investment in Latin America and Asia. Data
for investment in 1988 in Asia alone are confidential.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
period, in the market for computers, peripherals,
and parts, the trade deficit with the developing
countries of Asia worsened significantly, whereas
the trade surplus with Europe rose and then
stagnated.
These data, along with data on the local markets
for computers and the relative costs of production
in different regions of the world, suggest the following patterns of trade and investment: Investments in Europe initially were probably distributorships for U.S. exports of finished computers, which
later were expanded into production sites to supply
the local markets with finished computers. Investments in the developing countries of Asia have
more likely been production sites that assemble
finished products for the U.S. market, not the local
market.
A significant portion of computer trade does not
appear to be linked to U.S. investment abroad,
however. The value of U.S.-owned assets in
Canada and Japan is relatively small, but the trade
Oil prices began 1993 at the relatively high level of
approximately $20 per barrel spot for West Texas
intermediate (WTI) (chart 11). Spot WTI reached
its 1993 peak of $21 per barrel when OPEC
appeared to have successfully curbed production in
the face of sluggish oil demand. Almost immediately, however, it became clear that OPEC production cuts did not offset the combination of increased
non-OPEC production and the reduced demand for
oil caused by weak economic activity in most of
the industrial world—so prices declined. Through
the summer months, oil prices rose and fell as
prospects for an accord between Iraq and the
United Nations (which would allow Iraq to export
oil) dimmed and brightened. Prices rallied briefly
in late September and early October when OPEC
announced a six-month production agreement,
but they plummeted soon after on strong North Sea
production and a continuation of slack demand. At
the turn of the year, spot WTI was trading around
$14.50 per barrel.
The quantity of oil imports continued to increase
(table 6). These increases resulted from declining
U.S. oil production (typical for a mature oil exploration area), heavy stockbuilding (spurred by the
relatively low oil prices), and gains in U.S. oil
consumption (engendered by the continued pickup
11. Oil prices, 1983-93'
Dollars per barrel
West Texas intermediate!
j A
.
— 30
Bill
U V V yl J
1
i
i
i
1985
V
\j
1
1
1
20
U.S. import
1
1
1
1
1
1990
1. The data are monthly.
SOURCE. Petroleum Intelligence Weekly, various issues, and U.S. Department
of Commerce, Bureau of Economic Analysis.
374
Federal Reserve Bulletin • May 1994
6. U.S. oil consumption, production, and imports, selected
years, 1980-93
12. U.S. services trade, 1987-931
Ratio scale, billions of dollars
Millions of barrels per day
Item
Consumption
Production
Imports
1980
1985
1991
1992
1993 P
17.1
10.8
6.9
15.7
11.2
5.1
16.7
9.9
7.6
17.0
9.8
7.9
17.2
9.6
8.5
175
150
p Preliminary.
SOURCE. Department of Energy, Energy Information Administration.
—100
in U.S. economic activity). For 1993 as a whole,
imports increased 0.6 million barrels per day, to
8.5 million barrels per day.
Surplus
_
Services
The surplus on trade in services remained
unchanged in 1993 at $56 billion (table 7 and
chart 12) mostly because of the sluggish economic
activity abroad. One of the largest categories of
services, in terms both of imports and exports and
of the net surplus balance, is travel and passenger
fares associated with tourism. The net surplus of
7.
—
80
Transactions
1. The data are quarterly at seasonally adjusted annual rates.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
Service transactions, 1990-93
Billions of dollars
1990
1991
1992
1993
31
-8
10
18
46
-6
11
16
56
-3
11
14
56
-1
11
12
Exports
Private services
Travel and passenger fares
Other transportation
Royalties and license fees
Education
Financial services
Insurance1
Premiums received
Losses paid
Telecommunications
Business, professional, technical services
Other private services
U.S. government miscellaneous services ...
138
58
22
17
5
4
1
5
4
3
7
21
1
153
64
22
18
6
5
1
5
4
3
11
22
1
168
71
23
20
6
5
1
6
4
3
13
25
1
175
74
24
20
7
7
3
6
5
4
14
23
1
Imports
Private services
Travel and passenger fares
.....
Other transportation
Royalties and license fees
Education
Financial services
Insurance2
Premiums paid
Losses recovered
Telecommunications
Business, professional, technical services
Other private services
U.S. government miscellaneous services ...
98
48
23
3
1
2
2
10
8
6
2
11
2
100
45
23
4
1
3
2
11
9
7
3
12
2
107
51
23
5
1
3
1
12
11
7
4
12
2
116
54
25
5
1
6
3
13
10
7
4
13
2
Item
Service transactions, net
Military, net
Sales
Receipts
1. Premiums received less losses paid.
2. Premiums paid less losses recovered.
SOURCE. US. Department of Commerce, Bureau of Economic
U.S. international transactions accounts.
U.S. International Transactions in 1993
8. U.S. net investment income, 1990-93
Billions of dollars
Item
1990
1991
1992
1993
Investment income, net
20
13
Direct investment income, net
Receipts
Payments
56
59
3
53
50
48
50
2
46
56
10
-40
78
70
8
117
76
42
-42
61
54
7
103
62
41
-46
55
50
5
100
59
42
Portfolio income, net,
Receipts
Private
Government ...
Payments
Private
Government
-36
92
82
11
128
87
41
-
3
0
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
U.S. international transactions accounts.
$20 billion in these tourist services in 1993 was
unchanged from that in 1992. The growth rate of
tourist services exports, which represent foreign
tourists visiting the United States, slowed as foreign economic activity remained sluggish. Imports
of tourist services, which represent U.S. tourism
abroad, picked up a bit as U.S. economic activity
strengthened.
Most other categories of services registered
constant or slightly smaller net surpluses. The
net surplus of royalties and license fees was
unchanged; it had been creeping upward over the
1990s. This net surplus balance of $15 billion in
1993, the second largest net surplus category, represents net payments to the United States for the use
of intellectual property abroad.
Both imports and exports of business, professional, and technical services grew slightly in 1993,
and the net surplus balance rose a bit. The growth
rate of exports, however, slowed significantly
mostly because of foreign economic conditions.
This recent slowing may appear greater than it
actually is because of revisions to historical data: A
1991 benchmark survey, which added new types of
services and required the reporting of smaller transactions, may have inflated growth rates for previous years.
Exports of education services, which represent
payments by foreign students studying in the
United States, and of financial services grew just
slightly in 1993. In education, the United States
enjoys a net surplus position, which rose to $6 billion in 1993. In financial services, imports and
exports just balanced in 1993.
375
Telecommunications is one category of services
for which the net position is a deficit. Payments
exceed receipts because U.S. residents call abroad
more frequently than foreigners call the United
States and because foreign phone charges exceed
U.S. charges. The deficit is small ($3 billion) and
improved just slightly in 1993.
Exports of "other services," which includes
medical services, dipped a bit in 1993 whereas
imports in this catch-all category rose. The net
surplus in this category—although dropping $1 billion, to $11 billion, in 1993—represented about
20 percent of the overall surplus in services.
Developments in the Nontrade
Account
Current
Net investment income, which continued its decline of recent years, was zero in 1993 (table 8).
Net direct investment income fell a bit, and net
portfolio payments rose.
Net direct investment income fell, as a rebound
in direct investment payments on foreign assets in
the United States more than offset an increase in
receipts from U.S. direct investments abroad. The
substantial rise in direct investment payments reflected in large part the writing-off of substantial
losses on real estate investments that had held
down payments. Moreover, the increase in foreign
direct investment in the United States during the
mid-1980s and the improved profit performance of
firms in the U.S. economy contributed to higher
direct investment payments. Receipts from direct
investment abroad were particularly strong in the
financial services industries.
Net portfolio investment payments rose only
moderately in 1993, as lower interest rates mitigated the effects of an increase in the net liability
position (chart 13). Since 1986, net portfolio payments have increased along with the net position.
Since 1989, however, the rate of growth in net
payments has slowed because of a fall in the rate of
return on the net position (lower panel). This fall
has been damped somewhat since 1990 because the
rate of return on claims has fallen more than that on
liabilities. The rate of return on liabilities has been
buoyed by a shift in the portfolios of foreigners
toward instruments of longer maturity. In contrast,
the rate of return on U.S. claims has been depressed
376
Federal Reserve Bulletin • May 1994
by a shift toward equities, for which the dividend
yield is generally less than the interest rate on
bonds and deposits.
13. Factors affecting net portfolio increase, 1986-93
DEVELOPMENTS IN CAPITAL ACCOUNT
TRANSACTIONS
Percent
Rates of return on portfolio investment2
The large U.S. current account deficit in 1993 was
offset by substantial reported and unreported net
capital inflows (table 9), including particularly
large net official inflows. Gross private capital
flows both into and out of the United States were
also large, but the net private inflow was relatively
small. A substantial swing of the statistical discrepancy from negative to positive completes the
financing picture.
Official Flows
1. The data for net payments are annual totals and for net liability position are
period averages.
2. For the net position, the data are the ratio of net payments to net liability
position shown above. For claims (liabilities), the data are the ratio of total
receipts (payments) to claims (liabilities).
SOURCES. Department of Commerce, Bureau of Economic Analysis; and
Federal Reserve Board.
Foreign official assets in the United States rose
$71 billion in 1993, a large increase from the
previous years (table 9). Substantial additions to
Japanese holdings in the United States resulted
from Japanese intervention in exchange markets
that was intended to counter periods of upward
9. Composition of U.S. capital flows, 1989-93
Billions of dollars
1989
1990
1991
1992
1993
-102
-92
-8
-66
-109
Official capital, net
Foreign official assets in the United States
U.S. official reserve assets
Other U.S. government assets
-16
9
-25
1
34
34
-2
2
26
18
6
3
43
41
4
-2
70
71
-1
-0
Private capital, net
Net inflows 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
US. net purchases of foreign securities
Direct investment, net
Foreign direct investment in the United States
U.S. direct investment abroad1
Other
100
5
43
27
32
-34
-3
-8
10
36
44
15
13
47
-21
30
28
7
-22
35
68
-33
17
-3
12
-15
-29
25
48
-23
3
19
27
10
-45
-6
24
-30
1
37
31
-4
-48
-28
2
-31
5
24
61
18
-125
-19
32
-50
6
31
-15
-12
27
Item
Current account balance
Statistical discrepancy
17
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 through 1992. This adjustment was discontinued
in 1993 because of the assumption that virtually all the Eurobonds issued by
Netherlands Antilles affiliates before mid-1984 have already come due.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
U.S. international transactions accounts.
U.S. International Transactions in 1993
pressure on the exchange value of the yen. Additions to the holdings of Mexico and of Argentina
resulted from foreign exchange market purchases
of U.S. dollars that were intended to sterilize capital inflows into those countries as their economic
climates improved. The positions of some other
countries increased, in part because governments
such as Singapore accumulated proceeds from the
privatization of government-owned companies.
As a result of the weakening of oil prices and
revenues, holdings of the OPEC countries drifted
downward.
Private Capital Flows
The net inflow of private capital into the United
States overall totaled only $13 billion, as inflows
through banking offices rose a bit from the 1992
pace, foreign net purchases of U.S. government and
agency securities increased moderately, and foreign net purchases of U.S. corporate stocks recovered from a 1992 net outflow. These substantial
inflows were nearly matched by record U.S. net
purchases of foreign securities.
Net inflows through the banking sector totaled
$47 billion in 1993, a small increase from those
in 1992. The large inflows were somewhat surprising given the slow recovery of bank credit in
the United States. The net inflows were partly
accounted for by the substitution of Eurodollar
borrowing for alternative financing sources, particularly at the U.S. offices of Japanese-chartered
banks.
In 1993, private foreign net purchases of U.S.
government agency securities (combined with U.S.
corporate securities in table 9) increased sharply,
to $32 billion, whereas net purchases of loweryielding U.S. Treasury securities declined to
$24 billion from the high figure of $37 billion in
1992. Although net purchases of U.S. Treasury
securities by Canadian and European investors
were strong, net purchases by Japanese investors
weakened substantially from 1992 net inflows.
Financial institutions in the Caribbean have been
increasingly active in the market for U.S. government securities. Gross transactions (purchases plus
sales) in U.S. Treasury securities by institutions in
Bermuda, the British West Indies, and the Netherlands Antilles rose from about $300 billion in 1992
377
10. Transactions in foreign securities by region, 1992-93
Billions of dollars
Item
Gross transactions
Net purchases
Japan
Latin America and Caribbean
Asia (excluding Japan)
Other
1992
1993
1,375
2,289
48
31
7
4
4
4
129
86
15
3
9
12
1
4
to about $400 billion in 1993. In 1993, their net
sales of U.S. Treasury securities continued but were
more than matched by purchases of U.S. government agency securities.
Foreign investor activity in the U.S. stock market
picked up substantially, particularly in the fourth
quarter. Unlike in 1992, most foreign investors
added substantially to their holdings of U.S. stocks;
an exception was Canadian investors, who sold
U.S. stocks on net. Net foreign purchases of U.S.
corporate bonds rose as Eurobond issuance by U.S.
corporations increased substantially.
In recent years, the deregulation of foreign financial markets, higher returns in foreign markets, and
the desire to diversify portfolios have supported
greater demand by U.S. residents for foreign stocks
and bonds. This continuing internationalization of
financial markets was reflected in huge gross transactions in foreign securities: U.S. residents' gross
transactions (purchases plus sales) in foreign securities nearly doubled from those in 1992, to more
than $2 trillion in 1993 (table 10). On net, U.S.
purchases of foreign securities rose from $48 billion in 1992 to $129 billion in 1993 as net purchases of foreign bonds tripled and net purchases
of foreign stocks doubled.
Even with the large net purchases of recent years,
foreign securities represent only about 3 percent of
U.S. residents' holdings of stocks and bonds. Moreover, as shown in table 10, net purchases of securities in industrial countries continued to account for
the bulk of net purchases, although the dollar value
of net purchases in markets outside the industrial
countries doubled to about $25 billion in 1993. In
Latin America, the Argentine and Mexican markets
were particularly attractive to U.S. investors. In the
Asian NIEs, U.S. investors' net purchases were
378
Federal Reserve Bulletin • May 1994
concentrated in Hong Kong and Korea; net sales of
securities from Taiwan continued. The supply of
foreign securities of developing countries to the
international marketplace increased because of
large, well-marketed privatizations, such as the
Singapore state telephone company and Yacimientos Petroliferos Fiscales and Hydronor power
groups in Argentina, and Yankee bond issues by,
among others, Korea Electric Power.
Foreign direct investment in the United States
rebounded in 1993 but remained well below the
peak recorded in 1989. The rebound was due principally to a turnaround in flows from the European
countries, particularly the United Kingdom. Direct
investment flows from Japan were near zero.
U.S. direct investment abroad rose to the record
level of $50 billion in 1993, swelled by increased
reinvested earnings and new equity flows. While
the bulk of direct investment outflows were to
Western Europe, direct investment flows to Latin
America rose from $6 billion in 1992 to $10 billion
in 1993.
The statistical discrepancy is the residual entry
that ensures that the balance of payments balances.
In recent years, it has been negative, suggesting the
existence of unreported capital outflows or payments for goods, services, or investment income. In
1993, the statistical discrepancy was positive, at
$27 billion, suggesting unreported capital inflows.
One source of errors and omissions in the measurement of capital inflows, and thus a possible explanation for their increase, is shipments of U.S. currency abroad, which accelerated in 1993.
PROSPECTS
Buoyant U.S. economic activity in 1994 should
support continued strong growth in imports. But
export growth should also strengthen as growth in
foreign industrial economies picks up and as the
Mexican economy recovers from its recent slump.
Nevertheless, the trade deficit for U.S. goods and
services is likely to continue worsening because of
its initial size, the asymmetry in the responsiveness
of trade flows to changes in economic activity, and
a growing deficit in computers, peripherals, and
parts.
In the medium term, export and import prices are
likely to remain flat, in part because import and
export competition should maintain downward
pressure on domestic prices. At the same time, low
capacity utilization abroad, abundant oil supplies,
and slow employment growth here and abroad
should keep cost pressures low.
Higher U.S. interest rates will raise the rate of
return on U.S. liabilities while the continued shift
in U.S. claims toward lower-yielding equities will
slow the rise in the rate of return on U.S. claims.
Thus, net investment payments will likely rise
faster than the net liability position rises. Payments
on foreign direct investment in the United States
will likely continue to rebound with U.S. economic
activity and the maturing of those investments. At
the same time, receipts from U.S. direct investment
abroad could pick up with increased rates of growth
in key foreign countries. On balance, U.S. net
investment income is likely to deteriorate.
•
379
Industrial Production and Capacity Utilization
for March 1994
Released for publication April 15
Industrial production rose 0.5 percent in March
after a gain of 0.6 percent in February. The output
in several industries picked up notably from the
weather-related slowdowns of January and Febru-
ary, but the overall increase was held back by a
drop in the production of motor vehicles and electricity. Having reached a seasonally adjusted annual
rate of 13.9 million units in February, motor vehicle assemblies dropped back to 13.0 million units
in March; 1994 marks the first year since the 1970s
Industrial production indexes
Twelve-month percent change
Twelve-month percent change
1988
1989
1990
1991
1992
1993
1988
1994
1989
1990
1991
1992
1993
1994
Capacity and industrial production
Ratio scale, 1987 production =100
— Total industry
capacity
•
~
^ ~
—
^
Ratio scale, 1987 production =100
140
— Manufacturing
120
—
^
'
1
1
1
1
1
1
1
1
1
1
1
1
Production
1
1
1
1
1
1
1
1
80
1
1
Percent of capacity
T TtilWatirm
J
1980
I L
1982
1
1
1
Percent of capacity
Manufacturing
Total industry
1984
J
Utilization
I L
1986
1988
J
1990
I
I L
1992
1994
J
1980
I L
1982
J
1984
All series are seasonally adjusted. Latest series, March. Capacity is an index of potential industrial production.
120
100
Production
80
1
—
100
"~rL
1
140
Capacity
1986
I
I
1988
I
I
1990
I L
1992
1994
380
Federal Reserve Bulletin • May 1994
Industrial production and capacity utilization, March 19941
Industrial production, index, 1987=100
Percentage change
Category
1994
1993
1993
Dec.
r
r
Jan.
r
Feb.
Total
114.0
114.4
115.0
2
19942
Mar.P
Dec.
r
r
r
Jan.
Feb.
115.6
1.0
.4
.6
1.0
.5
.4
Mar.P
Mar. 1993
to
Mar. 1994
.5
5.1
Previous estimate
114.0
114.6
115.1
Major market groups
Products, total3
Consumer goods
Business equipment
Construction supplies
Materials
113.0
110.1
141.8
101.3
115.5
113.4
110.6
143.1
100.1
115.8
114.2
111.8
144.7
99.1
116.3
114.4
111.5
145.7
100.3
117.2
.8
.4
1.5
1.8
1.3
.4
.5
.9
-1.1
.3
.7
1.0
1.1
-1.0
.4
.3
-.2
.7
1.1
.8
4.6
2.4
10.8
5.5
5.8
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
115.4
120.1
109.7
96.9
115.8
115.5
120.4
109.6
96.9
119.9
116.3
121.3
110.1
98.7
118.5
117.0
121.9
111.0
99.7
116.3
1.2
1.8
.5
.0
-.2
.1
.3
-.1
.0
3.5
.7
.8
.5
1.8
-1.2
.6
.5
.8
1.0
-1.8
5.8
8.4
2.6
2.9
-.9
MEMO
Capacity utilization, percent
Capacity,
1993
Average,
1967-93
Low,
1982
High,
1988-89
1994
Mar.
Dec.r
Jan.r
Feb/
Mar.P
centage
change,
Mar. 1993
to
Mar. 1994
Total
81.9
71.8
84.8
81.2
82.9
83.1
83.4
83.6
2.1
Manufacturing
Advanced processing
Primary processing
Mining
Utilities
81.2
80.6
82.2
87.4
86.7
70.0
71.4
66.8
80.6
76.2
85.1
83.3
89.1
87.0
92.6
80.1
78.9
83.2
86.8
87.9
82.3
80.6
86.4
87.5
86.2
82.2
80.7
85.8
87.5
89.1
82.5
81.2
85.8
89.2
87.9
82.8
81.3
86.4
90.1
86.2
2.4
3.0
1.2
-.9
1.1
1. Data seasonally adjusted or calculated from seasonally adjustec
monthly data.
2. Change from preceding month.
that assemblies have run at or above a 13.0 million
unit pace in any month. At 115.6 percent of its
1987 average, industrial production was 5.1 percent higher in March than it was a year earlier. The
utilization of total industrial capacity increased
0.2 percentage point, to 83.6 percent.
When analyzed by market group, the data show
that the output of consumer goods fell back 0.2 percent in March, with gains in home goods and
consumer nondurables mostly offsetting a large
decrease in automotive products. Within consumer
nondurables, production rebounds at a number of
manufacturers more than offset a drop in the sale of
electricity for home use.
The output of business equipment rose 0.7 percent despite the cutback in the output of motor
vehicles and the continued decline in commercial
aircraft manufacturing. The production of information processing equipment continued advancing
3. Contains components in addition to those shown,
r Revised,
p Preliminary.
rapidly; in addition, the production of industrial
and other equipment picked up again, gaining more
than 1 percent after having slipped back somewhat
during January and February. The output of defense
and space equipment fell further in March; it has
declined about 10 percent during the past year.
The production of construction supplies, which
fell about 1 percent per month in January and
February as cold weather curtailed construction
activity, advanced 1.1 percent in March. The production of industrial materials rose 0.8 percent,
with strong gains in computer parts and semiconductors. The output of energy materials increased
despite the cutback in electricity generation; coal
mining strengthened again in March after a 10 percent jump in February.
When analyzed by industry group, the data show
that manufacturing output increased 0.6 percent in
March, with gains in all major industries other than
Industrial Production and Capacity Utilization
transportation equipment. The factory operating
rate rose 0.3 percentage point, to 82.8 percent.
Capacity indexes for computers, semiconductors,
light trucks, and appliances were revised up slightly
for early this year; the aggregate effect of these
revisions was to lower factory utilization for March
by 0.1 percentage point from what it otherwise
would have been. During the past year, utilization
in manufacturing has increased 2.7 percentage
points, while output has risen 5.8 percent. The
output gain is the largest twelve-month increase in
six years.
The utilization rate for primary-processing industries rose 0.6 percentage point, to 86.4 percent,
about 4 percentage points more than its 1967-93
381
average but 2.7 percentage points less than its high
during 1988 and 1989. Output increases of nearly
1 percent or more in stone, clay, and glass products,
paper and products, rubber and plastics products,
and textiles helped boost the primary-processing
operating rate. The utilization rate for advancedprocessing industries edged up 0.1 percentage
point, to 81.3 percent, as a decrease of 2.4 percentage points in utilization for transportation
equipment was more than offset by gains in other
industries.
The increase in coal mining pushed up the overall output of mining 1 percent in March. The output
of utilities fell back again as temperatures returned
to about their seasonal norms.
•
382
Statements to the Congress
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, March 2, 1994
I am pleased to appear today before the Senate
Banking Committee to give the views of the
Federal Reserve Board on proposals to consolidate the banking regulators into a single agency.
We have prepared a detailed analysis of such
proposals, which I have attached to my statement.1 My remarks this morning will highlight
that analysis.
The proposals to create one federal bank regulator have the clearly stated objectives of reducing the government's costs of regulating and
supervising banks, of reducing bankers' costs
and burdens from duplicative examination and
overlapping supervision, and in general making
the supervisory process more efficient and more
accountable. The Federal Reserve Board shares
these goals but disagrees with the approach of
one regulator for achieving these objectives.
However, the Board believes that it is possible to
achieve virtually all these proposals' objectives
without creating the risks of one regulator that so
trouble us.
In reaching this conclusion, the Board tested
various proposals against the fundamental principle that the purpose of regulation is to enhance
the capability of the regulated entity to contribute effectively to the nation's long-term economic growth and stability. We have concluded
that for this to be accomplished, the following
four subsidiary principles must be achieved:
• First, there should not be a single monolithic
federal regulator.
• Second, every bank should have a choice of
federal regulator.
1. The attachment to this statement is available from
Publications Services, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
• Third, there should be only one federal regulator for all the depository institutions in any
single banking organization.
• Fourth, the U.S. central bank should continue to have its essential hands-on involvement
in supervision and regulation.
A consolidated single regulator would deprive
our regulatory structure of what the Board considers to be the current invaluable restraint on
any one regulator conducting inflexible, excessively rigid policies. Laws on bank regulation
and supervision must be drawn very generally,
leaving the specifics to agency rulemaking. This
vests the agencies with a broad mandate and a
not inconsiderable amount of discretionary
power. Hence, a safety valve is vitally needed to
avoid the exercise of arbitrary actions. A denial
of, or severe limitation of, charter choice closes
off a safety valve, inevitably leading to greater
micromanagement of banks and a lessened market for bank credit. We must avoid a regulatory
structure that inhibits economic growth.
The current structure provides banks with a
method—albeit one neither easily accomplished
nor often taken—of shifting their regulator, an
effective test that provides a limit on the arbitrary
position or excessively rigid posture of any one
regulator. The pressure of a potential loss of
institutions has inhibited excessive regulation
and acted as a countervailing force to the bias of
a regulatory agency to overregulate.
The dual banking system and multiple federal
regulators have facilitated diversity, inventiveness, and flexibility in our banking system, so
important to a market economy subject to rapid
change. A single federal regulator would effectively end the dual banking system: It would
become an empty shell if a state-chartered entity
had no choice of federal regulator or—reflecting
a recent Federal Deposit Insurance Corporation
Improvement Act of 1991 (FDICIA) provision—
different asset powers. The dual banking system
cannot survive consolidation at the federal level.
383
I, as well as my colleagues on the Board, believe
that would be a tragic loss.
Besides the effective loss of the dual banking
system, the single regulator contemplated in current proposals would be disconnected from
broad economic policy issues. This is a problem
because a regulator that does not have macroeconomic responsibility for its actions is likely to
inhibit prudent risk-taking by banks, thus limiting
economic growth and stability. The central historic purpose of banking is to take risks through
the extension of loans to businesses and others.
Economic growth in our system could not occur
without risk-taking by entrepreneurs and small
and large businesses. Risk-taking requires financing. Thus, either an unwillingness or an
inability of lenders to take risks would slow the
expansion of our nation's employment and income. This fact creates a significant policy tradeoff in banking regulation, especially because of
the government guarantee of bank deposits. On
the one hand, regulators are concerned about
bank failures and their effects on the economy, as
well as their cost to the insurance fund. On the
other hand, banks need to take risks to finance
growth. Tradeoffs are required, and a swing in
either direction can create both short- and longterm problems.
Indeed, a single regulator with a narrow view
of safety and soundness and with no responsibility for the macroeconomic implications of its
decisions would inevitably have a long-term bias
against risk-taking and innovation. It receives no
plaudits for contributing to economic growth
through facilitating prudent risk-taking, but it is
severely criticized for too many bank failures.
The incentives are clear.
The Federal Reserve's stabilization objectives
cause us to seek to avoid either excessive tightness or ease in our supervisory posture. The
former leads inevitably to credit crunches, and
the latter to credit policies that contribute, with a
lag, to bank losses and failures. This is not to say,
as some have advocated, that the Federal Reserve itself should be the only regulator. A
single-regulator Federal Reserve would be prone
to arbitrary and capricious behavior as would
any other single bank regulator. We would thus
oppose such an initiative, because as a single
regulator we would inevitably drift to increasing
day-by-day control of banking institutions, which
would soon become less innovative and competitive—a severe loss to the nation.
Not only is it important that one of our regulators have macroeconomic responsibility so as
to carry out the regulatory function properly, but
also our central bank must continue to have
hands-on involvement in supervision and regulation so as to effectively carry out its macroeconomic responsibilities. Joint responsibilities
make for better supervisory and monetary policy
than would result from either a supervisor divorced from economic responsibilities or a macroeconomic policymaker not involved in the review of individual bank's operations. Without
the hands-on experience of regulation and supervision, and the exposure to the operations of
banks and markets provided by such experience,
the Federal Reserve's essential knowledge base
would atrophy. Its deliberations would become
increasingly academic, and the nation's central
bank would soon resemble an ivory tower rather
than an institution necessarily involved with the
day-to-day activities of our economic and financial system. It is our knowledgeable examiners
and supervisors—knowledgeable about banks,
financial markets, and the payment systems that
connect them—that provide the expertise the
Federal Reserve needs. And the fact is that we
simply could not retain such staff members if
they were not actively involved in the process;
reading reports or joining as junior participants in
a handful of examinations would not be sufficient.
Some have argued that most foreign central
banks are not involved in bank supervision and
regulation. In fact, as described in more detail in
the attachment, central banks in all but one
Group of Seven (G-7) country (Canada), in most
cases de jure but always de facto, are closely
involved with the supervision of banks in their
countries and internationally. More broadly, the
central bank has either total or shared responsibility for bank supervision in three-quarters of
the nations in the Organization for Economic
Cooperation and Development (OECD). One example that is frequently used by those who
believe that central banks in foreign countries are
not involved in supervision is the Bundesbank.
The facts show quite the contrary: The Bundes-
384
Federal Reserve Bulletin • May 1994
bank has more supervisory staff than the German
Federal Banking Supervisory Office, reviews the
auditors' reports before the Banking Supervisory
Office receives them, and has veto power over
certain liquidity and capital regulations of that
office. In all industrial countries, either central
banks or finance ministries, or both, are involved
with supervision because nations have come to
understand that bank supervision has economic
consequences that are important for stability and
economic growth.
Removing the Federal Reserve from supervision and regulation would greatly reduce our
ability to forestall financial crises and to manage
a crisis once it occurs. In a crisis, the Federal
Reserve could always flood the market with
liquidity through open market operations and
discount window loans. But while rapid creation
of liquidity is often a necessary response to a
crisis, responsibilities for supervision and regulation give the Federal Reserve insight and the
authority to use less blunt and more precisely
calibrated techniques to manage such crises and,
more important, to avoid them. The use of such
techniques requires both the clout that comes
with supervision and regulation and the understanding of the linkages between supervision and
regulation and macroeconomic growth and stability.
The Federal Reserve is required to play the
key role when systemic breakdown threatens.
The attachment to my statement provides some
detail about Federal Reserve involvement in financial crises over the past decade. I request that
as you review it, you consider certain key questions.
Could the Federal Reserve without supervisory responsibilities have successfully managed
the Mexican debt crisis of 1982, the 1985 collapse
of privately insured thrift institutions in Ohio and
Maryland, the stock market crash of 1987, or the
Drexel failure of 1990?
Would the banking community have been persuaded to respond as they did in each of these
cases by a central bank with much more limited
authorities to affect events? Would the Federal
Reserve without supervisory knowledge or authority have been able to play a role in persuading many of the banks to complete the payments
necessary to prevent payments gridlock?
Finally, would a single bank regulator with no
macroeconomic stabilization responsibilities
have given the proper weights to financial market
stability and economic growth? Without market
expertise, would such a regulator have recognized early enough many of the problems central
to resolution of these crises?
In my judgment, the risk that the answer to all
these questions is "no" is too great to take.
There are ways, short of the creation of a
single agency, to address the problems in the
current regulatory structure and to reduce the
costs of regulations. The crux of the issue is
duplicative examinations of banks. This problem
could be eliminated by a regulatory system that
maintained two federal regulators but provided
that in general only one of those regulators
supervised all the depository institutions in any
banking organization.
While there are many ways to achieve an
improved regulatory structure, one such approach supported by the Federal Reserve Board
that could be implemented with a relatively modest series of reforms would contain the following
provisions:
• Merge the Office of the Comptroller of the
Currency (OCC) and the Office of Thrift Supervision (OTS). This organization would become
the Federal Banking Commission.
• Remove the Federal Deposit Insurance Corporation (FDIC) from examining healthy institutions.
• Put all independent national banks, all lead
national banks that are part of a holding company, and all thrift institutions under the purview
of the Federal Banking Commission, and put all
independent state banks and all lead state banks
that are part of a holding company under the
purview of the Federal Reserve.
• Provide that the supervisor of the lead depository in a banking organization also be the
supervisor and regulator of all the depository
institutions in the organization regardless of the
charter class of those affiliates.
• Finally, treat all U.S. activities of foreign
banks as now, with adjustments as necessary to
reflect the changes in the regulatory structure
described above.
The Board has not yet adopted a position on
the supervision and regulation of bank holding
Statements
to the Congress
385
companies and their nonbank affiliates. The following are two broad options, and a strong case
can be made for each:
• Under the first option, all holding companies
and their nonbank affiliates could remain under
the Federal Reserve's jurisdiction, continuing to
provide uniform rulemaking for competitive equity and a substantial role for the Federal Reserve in shaping the financial structure, so useful
for stabilization and systemic risk purposes.
• Under the second option, the jurisdiction of
virtually all holding companies could be split
between the Federal Reserve and the proposed
Federal Banking Commission on the basis of the
charter class of the lead bank. However, for
systemic risk reasons, jurisdiction over the holding companies and nonbank affiliates of a modest
number of banking organizations that meet certain criteria—such as large size and payment and
foreign activity—would be retained by the Federal Reserve even if the lead bank of the organization had a national charter.
Under either option, the number of banking
organizations subject to multiple regulators would
drop sharply.
Whichever holding company option is selected, the general proposal would have the
Federal Reserve supervise and regulate state
nonmembers, with these banks being a significant addition to our existing regulatory load. This
expansion of the Federal Reserve's supervisory
functions rests solely on the notion that in a
two-agency structure it is desirable to have responsibility for supervision and regulation defined clearly by charter class to preserve the dual
banking system. The Board makes no case that
responsibility for such banks—which account for
almost one-quarter of bank assets—is needed for
financial stability and monetary policy purposes.
However, responsibility over banks of various
sizes and locations, as under our existing authorities, is required if the Federal Reserve is to
perform its functions effectively.
The Board's approach would achieve essentially all the benefits of one consolidated regulator
while incurring virtually none of its risks. It eliminates duplicate supervision of depositories in a
single banking organization and greatly reduces
overlapping regulation. It maintains the dual
banking system and permits any bank to change
federal regulator by changing charter, thus ensuring a set of checks and balances on the arbitrariness of a single regulator. It maintains the healthy
process of dynamic tension in bank rulemaking. It
maintains the practical knowledge and skill, and
the influence and authority, of the central bank, so
critical for crisis prevention, crisis management,
and monetary policy. It maintains the valuable
perspective the central bank brings to supervision. In short, the proposal would avoid an inflexible, single regulator, preserve the dual banking
system, ensure that an economic perspective is
brought to supervision and regulation, and maintain a strong central bank.
•
Statement by John P. LaWare, Member, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Financial Institutions Supervision, Regulation and Deposit Insurance of the Committee on Banking, Finance and
Urban Affairs, U.S. House of Representatives,
March 8, 1994
GROWTH OF MUTUAL
I am pleased to appear before the Financial
Institutions Subcommittee today on behalf of the
Federal Reserve Board to describe the actions
the Board has taken to regulate bank sales of
mutual funds and to present the Board's views on
what additional regulatory or congressional action is necessary.
FUNDS
Before describing the actions the Board has
taken, I would like to make some observations
about the recent growth in the mutual fund
industry. Growth in mutual fund assets in recent
years has been nothing short of explosive. Last
year, the public bought a record $294 billion of
shares of mutual funds, nearly all of which was in
stock and bond funds, bringing assets under
management in the mutual fund industry to
slightly more than $2.0 trillion at year-end. As a
consequence, mutual fund assets have surpassed
the life insurance industry in size and, today, are
exceeded only by commercial banks and pension
386
Federal Reserve Bulletin • May 1994
funds. The strong inflows into mutual funds
reflect their popularity among households. It is
estimated that nearly a fifth of all households
own shares in at least one mutual fund.
As mutual funds have become a significant
competitor to depository institutions, these institutions have increased their participation in the
mutual fund industry. The net assets of bank
proprietary mutual funds are estimated to have
increased from $44 billion at the end of 1988 to
$220 billion at the end of 1993. Between 1988 and
1993, the market share of bank proprietary funds
doubled from 5V2 percent to more than 10 percent
of the total assets of the mutual fund industry.
The potential for customer confusion clearly
exists when mutual funds are sold to the public
by depository institutions, given their traditional
insured deposit activities. The chief concern is
that depositors may not understand that the
mutual fund investments they buy from a depository institution are not deposits and are not
covered by Federal Deposit Insurance Corporation (FDIC) insurance. It is also possible that
depository institution customers who buy mutual
funds may receive less than adequate investment
advice about mutual funds if sales personnel are
not properly trained or their sales practices are
not properly supervised.
This potential for customer confusion involving mutual fund sales could adversely affect the
safety and soundness of a depository institution.
If depositors suffer losses on investments they
have purchased from a depository institution, the
institution's reputation, and possibly its financial
condition, could be adversely affected. More
specifically, litigation risk and possible deposit
withdrawals could affect a bank unfavorably.
BOARD ACTIONS
REGARDING
INVOLVEMENT BY BANKING
ORGANIZATIONS WITH MUTUAL
FUNDS
The Board takes these concerns seriously. Over
the years, the Board and its staff members have
issued several interpretive opinions, supervisory letters, and informal staff opinions addressing issues relating to bank sales of uninsured investment products, including mutual
funds. Many of these statements have been
issued either in connection with the authorization of additional activities for bank holding
companies or when the Board and its examiners
have concluded that regulatory guidelines are
necessary to address the manner in which an
activity is being conducted. All of these statements reflect the Board's long-standing policy
that when banks sell uninsured investment
products to their customers they should do so in
a manner that clearly distinguishes these products from insured deposits.
The first regulatory action that the Board took
concerning mutual funds was a 1972 interpretive
rule relating to conflicts that may arise when a
bank holding company acts as an investment
adviser to mutual funds. This rule authorized
bank holding companies to act as investment
advisers to mutual funds and, at the same time,
created safeguards designed to assure a separation between the mutual fund being advised and
the holding company's subsidiary banks.
During the mid-eighties, as bank holding companies and banks received authorization to engage in discount and full service brokerage, the
Board and its staff members, through orders,
opinion letters, and informal staff interpretations,
adopted disclosure requirements that are applicable when these powers are used by banks and
bank holding companies to sell mutual funds.
Pursuant to these requirements, bank holding
companies and banks are required to inform a
customer that investments in a fund's shares are
not obligations of a bank and are not insured by
the FDIC. More recently, the Board revised its
1972 rule regarding investment advisory activities of bank holding companies to require that
banks that sell or provide investment advice
about mutual funds that are advised by an affiliate must disclose to customers the relationship
between the affiliate and the fund.
INTERAGENCY
GUIDELINES
In response to the rapidly growing involvement
of depository institutions in the sales of mutual
funds, the Board and the other bank regulatory
agencies last month jointly issued a comprehensive set of guidelines governing the retail sale of
Statements
mutual funds and other nondeposit investment
products by depository institutions.
I would like today to focus on those aspects of
the statement that are intended to directly address the question of potential customer confusion regarding the uninsured status of mutual
funds and similar investment products, their nondeposit character, and the risks inherent in investing in such products. Ensuring that customers are not confused about the products they are
purchasing is not simply a matter of providing
accurate disclosure. Experience has demonstrated that the "manner" in which products are
sold—the location of the sales, the experience
and training of the personnel selling the products,
and the conduct of sales programs—all contribute to the customer's understanding of the nature
and risk associated with their investments.
Disclosure
In developing the interagency guidelines, one of
the goals of the agencies was to standardize the
basic disclosures that banks provide customers
about mutual funds and other uninsured investment products. The disclosures provided for by
the interagency statement must, at the very minimum, indicate that the product is not insured by
the FDIC, is not a deposit or other obligation of,
or guaranteed by, the selling depository institution, and is subject to investment risks, including
possible loss of the principal amount invested.
These disclosures should be provided orally during any sales presentations or when investment
advice is given and both orally and in writing
before or at the time an investment account is
opened; moreover, they must be contained in all
advertisements and other promotional materials.
When the disclosures are provided in writing,
they should be conspicuous and presented in a
clear and concise manner. A depository institution should also disclose the existence of any
advisory or other material relationship between
the institution, or an affiliate of the institution,
and a mutual fund whose shares are sold by the
institution. Any other material relationship between the institution and an affiliate involved in
providing the investment products should also be
disclosed.
to the Congress
387
The agencies also provide for a disclosure
concerning the Securities Investor Protection
Corporation (SIPC) and other forms of insurance
when mutual funds are sold by broker-dealers on
bank premises. The interagency guidelines specifically state that if sales activities include any
written or oral representations concerning insurance coverage provided by the SIPC or any other
insurance fund or company, then a clear and
accurate explanation of the coverage must be
provided. There should not be any suggestion or
implication that an alternative form of insurance
coverage is the same or similar to FDIC insurance of bank deposits.
The interagency guidelines also provide that
advertisements and other promotional and sales
materials conspicuously include at least the minimum disclosures and must not suggest or convey a misleading impression about the nature of
the investment product or its lack of FDIC
insurance. The minimum disclosures should also
be emphasized in telemarketing contacts. Written materials that contain information about both
FDIC-insured deposits and nondeposit investment products should clearly segregate the two
types of information.
Location
of Sales
To further minimize the potential for customer
confusion, the interagency guidelines provide
that, except in very limited situations when physical considerations prevent it, sales or recommendations relating to nondeposit investment
products should be conducted in a physical location distinct from the area where retail deposits
are taken.
Personnel
Another element that must be considered in
minimizing the potential for customer confusion
relates to the personnel who provide advice
about, or sell, mutual funds or other nondeposit
investment products. The interagency guidelines
provide that tellers and other employees should
not make general or specific investment recommendations or accept orders for nondeposit investment products, even if unsolicited, while
located in the routine deposit-taking area. Tellers
388
Federal Reserve Bulletin • May 1994
and other employees who are not authorized to
sell nondeposit investment products may only
refer customers to individuals who are specifically trained to sell nondeposit investment products.
The interagency guidelines provide that depository institution personnel who sell, or provide
investment advice about, nondeposit investment
products should receive training that is the substantive equivalent of the type of training required for brokers licensed by the National Association of Securities Dealers (NASD). In
addition, a depository institution should provide
training to its employees who may have direct
contact with customers to ensure a basic understanding of the institution's sales activities and
the limits on their involvement in selling such
nondeposit investment products.
Suitability
The guidelines also provide that depository institution personnel who recommend nondeposit investment products should have reasonable
grounds for believing that a specific product is
suitable for the particular customer on the basis
of information disclosed by the customer. Personnel should make reasonable efforts to obtain
information directly from the customer regarding, at a minimum, the customer's financial and
tax status, investment objectives, and other information that may be useful in making an investment recommendation. Personnel who are authorized to sell nondeposit investment products may
receive incentive compensation for transactions
entered into by customers; however, incentive
compensation programs should not be structured
in such a way as to result in unsuitable recommendations.
BOARD SUPERVISION
ACTIVITIES
OF MUTUAL
FUND
With regard to possible congressional action regarding mutual fund activities by banking organizations, the fact that the substantive provisions
of H.R.3306 are essentially mirrored in the agencies' guidelines reduces the need for legislative
action at this time. If a depository institution or
any of its employees do not follow the guidelines,
the regulators have ample authority to address
any unsafe and unsound practices regarding the
sale of mutual funds by depository institutions
and to sanction misconduct when appropriate.
The Federal Reserve is also augmenting its
current examination procedures regarding sales
of mutual funds by state member banks or affiliated broker-dealers to ensure that the guidance
contained in the recent interagency statement is
being heeded. Sales of mutual funds by state
member banks traditionally have been supervised and examined by the Federal Reserve in
the same manner as sales of other securities and
nondeposit, uninsured financial instruments. Before the adoption of the interagency statement,
the Board in June 1993 issued specific supervisory guidance for examiner use concerning the
proper disclosure and separation of mutual fund
sales from deposit-taking activities on bank
premises. Over the years, the Federal Reserve
has developed product-specific examination procedures to ensure that these activities are carried
out in a safe and sound manner. Further, the
procedures are intended to address the Board's
commitment to adequate disclosure of the uninsured nature of these retail investment products.
Federal Reserve examiners have been reviewing
on a regular basis the sales practices associated
with uninsured, nondeposit investment instruments for compliance with our policies.
Before the issuance of the interagency statement, the Board assembled an interdistrict task
force composed of senior examiners who have
experience supervising and examining brokerage
affiliates of banks and bank holding companies.
That task force has been revising and expanding
the Board's existing securities examination procedures to specifically incorporate the interagency statement. Currently, the task force is field
testing and refining the expanded procedures at
an examination of a large regional bank holding
company and its securities affiliate that is actively involved in sales of mutual funds on the
subsidiary banks' premises. Upon completion of
the examination within the next several weeks,
the task force will assemble in Washington,
D.C., to finalize the revised mutual fund examination procedures, and they will be implemented
immediately thereafter.
Statements
To avoid unnecessary regulatory burden on
banks and affiliated broker-dealers, and in recognition of the expertise developed by the securities self-regulatory organizations, the Board
initiated discussions with the NASD pertaining
to its examinations of bank affiliated brokerdealers. The NASD examines bank affiliated
broker-dealers for compliance with its rules regarding sales practices, recordkeeping, and other
applicable customer protection requirements.
Based on an informal survey of our Reserve
Banks, we understand that about 85 percent of
those state member banks that sell mutual funds
do so through a registered broker-dealer selling
on bank premises. About half of these registered
broker-dealers are bank affiliated. All registered
broker-dealers are subject to SEC oversight and
to the additional requirements and rules adopted
by their self-regulatory organizations.
Our discussions with the NASD have focused
on cooperative efforts to minimize unnecessary
duplication of examination efforts. These initiatives include examiner support and possible information sharing regarding bank affiliated broker-dealers. In this regard, an NASD examiner
went on site with our examiner task force in field
testing our mutual fund examination procedures.
Aside from new examination initiatives, the
Board is considering expanding the scope of the
consumer education seminars now being offered
Statement by John P. LaWare, Member, Board
of Governors of the Federal Reserve System,
before the Committee on Small Business of the
U.S. House of Representatives, March 17, 1994
I am pleased to be here this morning to discuss
regulatory and other initiatives designed to stimulate bank lending, especially to small businesses, and to comment on recent trends in
business lending activity. A review of these
issues seems quite appropriate at this time. In
recent months, the economy has displayed increasing evidence of underlying strength, accompanied by rising demands for credit by households and businesses. As these trends continue,
we believe that initiatives taken in the regulatory
to the Congress
389
by the Federal Reserve Banks around the country to specifically address consumer issues related to mutual funds.
CONCLUSION
The issues raised by this hearing today are of
extreme importance both to consumers who are
faced with increasingly complex choices about
investments and savings and to banks that must
address their customers' need for access to a
variety of investment and savings vehicles. Saving for a college education or for retirement is no
longer as simple as depositing a set amount in a
bank account each week. We believe that banks
are in a unique position to help consumers understand the choices before them. But banks
must recognize and affirmatively address the
potential for customer confusion and the need to
provide consumers with complete and accurate
information. We intend to take all actions within
our power to ensure that the depository institutions subject to the Board's jurisdiction do so.
Selling mutual funds and other investment products in a manner that is not misleading and that
provides customers with accurate and complete
information is an important element of safe and
sound banking that we intend to enforce.
•
arena will help facilitate the lending process for
creditworthy small businesses.
I will begin my remarks this morning by reviewing some of the key initiatives that have
been taken in the past year and their status, then
follow with a look at recent financing trends and
the need for additional initiatives.
You also asked for my views on the adequacy
of bank Call Report data on small business
lending; I will comment on the Call Report data
at the end of my statement and also bring to your
attention the survey of small business finances
that the Federal Reserve currently has under
way. We believe the survey, which is being
cosponsored by the Small Business Administration, will provide important information for assessing credit availability for small businesses.
390
Federal Reserve Bulletin • May 1994
RECENT SUPERVISORY
POLICY
INITIATIVES
Last spring, the Administration, the Federal Reserve, and the other federal banking agencies
("agencies") announced a series of initiatives to
reduce regulatory impediments to the availability
of credit to small- and medium-sized businesses
and farms, other businesses, and individuals.
These initiatives were a continuation of ongoing
interagency efforts to ensure that examiners evaluate bank lending activities in a consistent, prudent, and balanced manner.
One of the most important initiatives involves
a proposal to revise the agencies' requirements
for real estate appraisal by certified or licensed
appraisers in ways that would reduce costs to
banks and their customers. Such appraisals,
which relate to a requirement of Title XI of the
Financial Institutions Reform, Recovery and Enforcement Act of 1989, would be required less
often under these revised rules. To implement
this initiative, rules were issued for comment last
year and approved by the Board on March 9.
These rules do three things: (1) They increase the
threshold amount for which such appraisals are
required from $100,000 to $250,000; (2) they
expand the "abundance of caution" exemption
for business loans so that an appraisal would not
be required when the value of real estate taken to
collateralize a loan is not material to the decision
to make the loan; and (3) they exempt from
appraisals business loans of less than $1 million
when the principal source of repayment is not the
sale of, or income from, the real estate held as
collateral.
Loans secured by real estate are an important
source of credit for many small and midsize
businesses. Thus, eliminating the requirement to
obtain an appraisal in the cases just specified
should work to their clear advantage by reducing
costs. At the same time, such exemptions will
not erode the safety and soundness of the lending
institutions.
Other actions taken by the agencies to facilitate small business lending include a new policy
that permits qualified banks to set aside a portion
of their small business loan portfolios. The selected loans will be evaluated by examiners only
on the basis of their performance and not on the
level of loan documentation. This change is in
tended to encourage loans to smaller businesses
that banks believe to be creditworthy based, for
example, on the borrower's past credit experience or the bank's general knowledge of the
customer but for which strict adherence to traditional documentation standards and procedures
might make the loan too costly.
The agencies also have issued numerous statements in the past year with the intent of clarifying
supervisory policies and reporting requirements.
These statements deal with a variety of issues
related to the treatment of troubled real estate
loans, sales of foreclosed properties, restoration
of problem loans to performing status, and the
interagency framework for assessing loan quality.
In designing each of these initiatives, the agencies have sought to remove impediments to bank
lending that might occur owing to unnecessary
costs and supervisory burdens. Thus, as the
economy develops momentum and as underlying
demands for credit pick up, these actions will
help ensure that credit decisions of lenders and
borrowers are not unduly discouraged by costly
appraisal and documentation procedures or by a
misunderstanding of examination policies.
TRENDS IN BUSINESS
ACTIVITY
FINANCING
Ultimately, however, the major determinant of
business credit use and availability is not regulations or supervisory policies but underlying economic and financial forces. In this regard, we are
beginning to see evidence that business lending,
including small business lending, has picked up.
Indeed, in recent quarters, incoming data on the
economy and credit flows have revealed appreciable underlying strength. Let me briefly review
some recent trends that are setting the stage for
bank credit growth this year.
Through much of 1993, overall business demands for credit remained quite weak. In the
aggregate, nonfinancial businesses largely used
internal funds to finance growing outlays for
fixed capital and inventories and continued to
focus efforts heavily on balance sheet restructuring. When external financing was needed, it was
concentrated in capital markets, spurred by con-
Statements
tinuing declines in bond rates and a strong stock
market. Many firms used proceeds from new
security offerings to pay down bank loans. Such
paydowns were an important factor contributing
to the continued weakness in total business loans
at banks last year.
The favorable interest rate environment and
the restructuring activity of firms have produced
a much healthier business sector. Debt service
burdens have fallen markedly. Equity cushions
seem to have moved to more comfortable levels.
Indicators of financial stress, including loan default rates and bankruptcy filings, have dropped
well down from peaks of recent years. Banks
also have charted marked improvements. Equity
capital, buoyed by record earnings, climbed to
nearly 8 percent of assets last year, and the share
of troubled assets on the books of banks dropped
to its lowest level since 1986.
As banks have become more assured of their
own financial health and that of their customers,
their willingness to lend has grown. We observed
on Federal Reserve surveys last year a consistent
easing of terms and standards on business and
consumer loans as the year progressed—a trend
that has continued in the new year. The easing
appears to have been more substantial for large
firms, but respondents also have eased standards
for small firms. The reporting banks attributed
this easing to the improved economic outlook
and their own strong capital positions.
Moreover, although growth of total business
loans was held down last year by restructuring
activity of big firms, we began to see signs of a
pickup in lending to small firms. The new Call
Report data on small business loans provide
some evidence of this. I have included in my
testimony a set of tables derived from the new
Call Reports. These tables show the breakdown
of outstanding loans, by size of loan and by size
of bank, for different categories of business and
farm loans.1 Although the relationship between
the size of the credit arrangement that a bank has
with a business customer and the size of the
customer's assets or sales is not precise, our
surveys and examiner experience suggest that
1. The attachment to this statement is available from
Publications Services, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
to the Congress
391
there is a strong positive correlation. Thus, we
feel comfortable in assuming that most of the
small loans reported by banks are to small businesses.
More than 6,000 banks indicated on the June
Call Report that "virtually all" of their loans to
businesses were less than $100,000 in size. We
singled out these banks to see what had happened to their lending last year. We found that,
while aggregate business loans were running off
last year, this subset of banks maintained and
increased their lending to small customers.
More generally, in the first two months of this
year, growth of business loans at all domestic
banks has strengthened. Total commercial and
industrial loans increased at an average annual
rate of 7.5 percent in January and February. In
the latest survey of bank lending officers, respondents indicated that the demand for loans by
businesses has firmed, largely reflecting increased needs to finance inventories and investment in plant and equipment.
These signs of a greater willingness to borrow
and spend on the part of businesses are quite
encouraging. Moreover, banks, which are better
capitalized and more liquid than they have been
in a long while, appear to be able and willing to
meet the rising credit demands. I believe that in
this environment, the recent initiatives taken in
the supervisory area will help to facilitate new
lending, particularly to smaller borrowers.
NEED FOR ADDITIONAL
INITIATIVES?
You asked my opinion about the need for additional initiatives. In this regard, I view the steps
that have recently been taken as an ongoing part
of the supervisory process. This process is never
complete. Regulators always have to remain vigilant to possibilities for reducing burdens and
making the supervisory process more efficient.
We must guard against implementing new policies that might unnecessarily impede the lending
process. We also must be aware of special situations, such as those resulting from the California earthquake, when there may be a need to
ease standards temporarily.
And, while supervision alone can play only a
limited role in spurring aggregate lending, there is
392
Federal Reserve Bulletin • May 1994
scope for the Congress and the agencies to work
together to foster an environment for banks that
will allow them to make sound loans and to
compete efficiently in financial markets. Important in this regard are the initiatives now before
the Congress related to interstate banking and
broader powers for banks.
ADEQUACY OF CALL REPORT DATA
SMALL BUSINESSES AND FARMS
ON
Let me conclude by commenting on the adequacy of data for assessing credit availability to
small businesses. In particular, you have asked
about the new data we now collect on the Call
Reports. The new Call Report data are a good,
albeit not perfect, measure of bank lending to
small businesses. We believe that their usefulness as an indicator of trends in bank credit flows
to small borrowers will increase each year as we
collect more observations and that the data will
be a valuable supplement to information we
gather from other sources.
Our experience with the data reported for the
first time in June revealed, as might be expected,
a number of reporting problems that needed to be
resolved. Consequently, the staff members of the
relevant agencies have made a number of
changes to the reporting instructions designed to
clarify definitions and improve the quality of the
reported statistics. The agencies, however, did
not see the need to add items to the report or to
collect information by size of borrower instead of
size of loan, for several reasons.
It would be extremely costly for most banks to
provide loan data by size of "business" because
their records—especially automated records—do
not group loans in this way. We recognized that
any particular definition of small business that we
selected might not be easily available to all
reporting institutions nor would it be appropriate
for all analytical purposes. Moreover, Call Report data, whether by size of loan or borrower,
will not yield a comprehensive enough view to
evaluate the adequacy and risks of small business
financing. For example, we would need information on items such as the following: price and
nonprice terms of business loans; personal or
credit card loans that are used for business
purposes; risk characteristics of the borrower
and the firm's access to capital; and the cost and
availability of credit from nonbank sources.
The Federal Reserve knows that banks play an
important role in supplying credit and other
financial services to small businesses, and we
have a strong commitment to better understanding how the financing needs of these businesses
are being met. For this reason, we are now
undertaking an extensive survey of 6,000 small
businesses, including 1,200 minority-owned
small businesses. The survey will gather information on characteristics of the business firms
and their owners, on their income flows and
balance sheets, on their use of financial services
and credit sources, and on their recent borrowing
experiences. The information we hope to gain
from this survey would be impossible to collect
on the Call Report.
SUMMARY
REMARKS
Finally, let me summarize my remarks this morning by saying that the Federal Reserve recognizes the highly important role that small business firms play in the economy and the need to
promote the flow of credit to these firms. We
intend to continue to seek ways, consistent with
safety and soundness standards, to achieve this
objective.
•
393
Announcements
ACTION TAKEN BY THE
FEDERAL OPEN MARKET
COMMITTEE
Chairman Alan Greenspan announced on
March 22, 1994, that the Federal Open Market
Committee had decided to increase slightly the
degree of pressure on reserve positions. This action
was expected to be associated with a small increase
in short-term money market interest rates.
RETIREMENT OF SILAS KEEHN AS
PRESIDENT OF THE FEDERAL RESERVE
BANK OF CHICAGO
Chairman Alan Greenspan of the Federal Reserve
Board on March 28, 1994, made the following
statement on the planned retirement this summer of
Silas Keehn as President of the Federal Reserve
Bank of Chicago:
President Keehn has done a splendid job during his
thirteen years as President of the Federal Reserve Bank
of Chicago. His counsel will be missed not only at the
Chicago Bank but also in the Federal Open Market
Committee where he provided wise insights to policy.
We wish him a long and fruitful retirement.
AVAILABILITY OF TRANSCRIPTS OF THE
FEDERAL OPEN MARKET COMMITTEE
The Federal Reserve on March 9, 1994, made
available for public inspection the transcripts of
four meetings and two telephone conference calls
of the Federal Open Market Committee (FOMC)
held during the last half of 1988.
These transcripts cover meetings held in August,
September, November, and December 1988 and
telephone conference calls held in October and
November of the same year.
These transcripts have been produced from the
original raw transcripts in the FOMC Secretariat's
files. The Secretariat has lightly edited the original
to facilitate the reader's understanding without
changing the substance. When one or more words
were missing or garbled in the transcription, the
notation "unintelligible" has been inserted. In
some instances, words have been added in brackets
to complete a speaker's thought or to correct an
obvious transcription error or misstatement.
The FOMC last year decided to make transcripts
of its meetings available to the public with a fiveyear lag. Transcripts of meetings for the years 1976
through the first half of 1988 will be made available as soon as editing is completed on the individual transcripts.
The only deletions in the transcripts involve a
very small amount of confidential information pertaining to individual foreign central banks, businesses, and persons that are identified or identifiable. Deleted passages are indicated by gaps in the
text.
Decisions of FOMC meetings held through 1993
have already been made public through the publication of minutes or of a record of policy actions.
Transcripts made available may be obtained
from the Board's Freedom of Information Office.
APPOINTMENT OF NEW MEMBER TO THE
CONSUMER ADVISORY COUNCIL
The Federal Reserve Board announced on March 9,
1994, the appointment to its Consumer Advisory
Council of John E. Taylor, President and CEO of
the National Community Reinvestment Coalition.
He will replace Bonnie Guiton, the Dean of the
Mclntire School of Commerce at the University of
Virginia, who recently resigned from the council.
Mr. Taylor will serve a three-year term ending on
December 31, 1996.
The council advises the Board on the exercise of
its duties under the Consumer Credit Protection
Act and on other consumer-related matters.
394
Federal Reserve Bulletin • May 1994
ESTABLISHMENT OF TEMPORARY SWAP
FACILITY WITH MEXICO
Treasury Secretary Lloyd Bentsen and Federal
Reserve Chairman Alan Greenspan confirmed on
March 24, 1994, continued strong U.S. support for
Mexico's economic policies.
They announced the establishment of a temporary $6 billion swap facility with Mexico. The
Treasury Department's Exchange Stabilization
Fund and the Federal Reserve System are each
providing half of the facility.
ANNUAL REPORT: PUBLICATION
The 80th Annual Report, 1993, of the Board of
Governors of the Federal Reserve System, covering operations for the calendar year 1993, is available for distribution. Copies may be obtained on
request to Publications Services, Mail Stop 127,
Board of Governors of the Federal Reserve System, Washington, DC 20551. A separately printed
companion document, entitled Annual Report:
Budget Review, 1993-94, describes the budgeted
expenses of the Federal Reserve System for 1994
and compares them with expenses for 1992
and 1993; it is also available from Publications
Services.
PROPOSED ACTION
The Federal Reserve Board on March 11, 1994,
requested public comment on proposed amendments to Regulation Y (Bank Holding Companies
and Change in Bank Control) regarding discounts
on certain products and services for customers obtaining traditional banking products from affiliates.
Comments were requested by April 14, 1994.
•
395
Minutes of the
Federal Open Market Committee Meeting
on February 3-4,1994
A meeting of the Federal Open Market Committee
was held in the offices of the Board of Governors
of the Federal Reserve System in Washington,
D.C., on Thursday, February 3, 1994, at 2:30 p.m.
and was continued on Friday, February 4, 1994, at
9:00 a.m.
Present:
Mr. Greenspan, Chairman
Mr. McDonough, Vice Chairman
Mr. Broaddus
Mr. Forrestal
Mr. Jordan
Mr. Kelley
Mr. LaWare
Mr. Lindsey
Mr. Parry
Ms. Phillips
Messrs. Hoenig, Keehn, Melzer, Oltman,1 and
Syron, Alternate Members of the Federal Open
Market Committee
Messrs. Boehne, McTeer, and Stern, Presidents of the
Federal Reserve Banks of Philadelphia, Dallas,
and Minneapolis respectively
Mr. Kohn, Secretary and Economist
Mr. Bernard, Deputy Secretary
Mr. Coyne, Assistant Secretary
Mr. Gillum, Assistant Secretary
Mr. Mattingly, General Counsel
Mr. Prell, Economist
Mr. Truman, Economist
Messrs. Beebe, J. Davis, R. Davis, Goodfriend,
Lindsey, Promisel, Siegman, Simpson, Stockton,
and Ms. Tschinkel, Associate Economists
Ms. Lovett, Manager for Domestic Operations,
System Open Market Account
Mr. Fisher, Manager for Foreign Operations,
System Open Market Account
1. Attended the Thursday session only.
Mr. Ettin, Deputy Director, Division of Research
and Statistics, Board of Governors
Mr. Slifman, Associate Director, Division of Research
and Statistics, Board of Governors
Mr. Madigan, Associate Director, Division of
Monetary Affairs, Board of Governors
Mr. Hooper, Assistant Director, Division of
International Finance, Board of Governors1
Mr. Reinhart, Section Chief, Division of Monetary
Affairs, Board of Governors2
Mr. Rosine, Senior Economist, Division of Research
and Statistics, Board of Governors 2
Ms. Low, Open Market Secretariat Assistant,
Division of Monetary Affairs, Board of
Governors
Messrs. T. Davis, Dewald, Lang, Rolnick, Rosenblum,
and Scheld, Senior Vice Presidents, Federal
Reserve Banks of Kansas City, St. Louis,
Philadelphia, Minneapolis, Dallas, and Chicago
respectively
Mr. McNees, Vice President, Federal Reserve Bank
of Boston
Ms. Krieger, Assistant Vice President, Federal Reserve
Bank of New York
In the agenda for this meeting, it was reported
that advices of the election of the following members and alternate members of the Federal Open
Market Committee for the period commencing January 1, 1994, and ending December 31, 1994, had
been received and that the named individuals had
executed their oaths of office.
The elected members and alternate members
were as follows:
William J. McDonough, President of the Federal Reserve
Bank of New York, with James H. Oltman, First
Vice President of the Federal Reserve Bank of New
York, as alternate;
2. Attended portion of meeting relating to the Committee's
discussion of the economic outlook and its longer-run objectives
for monetary and debt aggregates.
396
Federal Reserve Bulletin • May 1994
J. Alfred Broaddus, Jr., President of the Federal Reserve
Bank of Richmond, with Richard F. Syron, President of the Federal Reserve Bank of Boston, as
alternate;
Jerry L. Jordan, President of the Federal Reserve Bank
of Cleveland, with Silas Keehn, President of the
Federal Reserve Bank of Chicago, as alternate;
Robert P. Forrestal, President of the Federal Reserve
Bank of Atlanta, with Thomas C. Melzer, President
of the Federal Reserve Bank of St. Louis, as
alternate;
Robert T. Parry, President of the Federal Reserve Bank
of San Francisco, with Thomas M. Hoenig, President of the Federal Reserve Bank of Kansas City, as
alternate.
By unanimous vote, the following officers of the
Federal Open Market Committee were elected to
serve until the election of their successors at the
first meeting of the Committee after December 31,
1994, with the understanding that in the event of
the discontinuance of their official connection with
the Board of Governors or with a Federal Reserve
Bank, they would cease to have any official connection with the Federal Open Market Committee:
Alan Greenspan
William J. McDonough
Chairman
Vice Chairman
Donald L. Kohn
Normand R. V. Bernard
Joseph R. Coyne
Gary P. Gillum
J. Virgil Mattingly, Jr.
Ernest T. Patrikis
Michael J. Prell
Edwin M. Truman
Secretary and Economist
Deputy Secretary
Assistant Secretary
Assistant Secretary
General Counsel
Deputy General Counsel
Economist
Economist
Jack H. Beebe, John M. Davis, Richard G. Davis,
Marvin S. Goodfriend, David E. Lindsey,
Larry J. Promisel, Charles J. Siegman,
Thomas D. Simpson, David J. Stockton, and
Sheila L. Tschinkel, Associate Economists
By unanimous vote, the Federal Reserve Bank of
New York was selected to execute transactions
for the System Open Market Account until the
adjournment of the first meeting of the Committee
after December 31, 1994.
By unanimous vote, Joan E. Lovett and Peter R.
Fisher were selected to serve at the pleasure of
the Committee in the capacities of Manager for
Domestic Operations, System Open Market
Account, and Manager for Foreign Operations,
System Open Market Account, respectively on the
understanding that their selection was subject to
their being satisfactory to the Federal Reserve Bank
of New York.
Secretary's note: Advice subsequently was received
that the selections indicated above were satisfactory to
the board of directors of the Federal Reserve Bank of
New York.
On January 24, 1994, the continuing rules, regulations, authorizations, and other instruments of the
Committee had been distributed with the advice
that, in accordance with procedures approved by
the Committee, they were being called to the Committee's attention before the February 3-4 organization meeting to give members an opportunity to
raise any questions they might have concerning
them. Members were asked to indicate if they
wished to have any of the instruments in question
placed on the agenda for consideration at this meeting, and no requests for substantive consideration
were received.
At this meeting, the members agreed to update
the references to the Management of the System
Open Market Account in the following FOMC
documents to reflect the new titles of Manager for
Domestic Operations, System Open Market
Account, and Manager for Foreign Operations,
System Open Market Account: (1) FOMC Rules of
Organization, (2) Procedures for Allocation of Securities in the System Open Market Account, and
(3) Program for Security of FOMC Information.
Except for this change, all of the instruments identified below remained in effect in their existing
forms:
1. Procedures for Allocation of Securities in the System Open Market Account.
2. Authority for the Chairman to appoint a Federal
Reserve Bank as agent to operate the System Account in
case the New York Bank is unable to function.
3. Resolution to Provide for the Continued Operation
of the Federal Open Market Committee During an
Emergency.
4. Resolution Authorizing Certain Actions by Federal
Reserve Banks During an Emergency.
5. Resolution Relating to Examinations of the System
Open Market Account.
6. Guidelines for the Conduct of System Operations
in Federal Agency Issues.
7. Regulation Relating to Open Market Operations of
Federal Reserve Banks.
8. Program for Security of FOMC Information.
Minutes of the Federal Open Market Committee Meeting
9. Federal Open Market Committee Rules of Organization, Rules of Procedure, and Rules Regarding Availability of Information.
By unanimous vote, the Authorization for
Domestic Open Market Operations shown below
was reaffirmed.
AUTHORIZATION FOR DOMESTIC
MARKET OPERATIONS
OPEN
Reaffirmed February 3, 1994
1. The Federal Open Market Committee authorizes
and directs the Federal Reserve Bank of New York, to
the extent necessary to carry out the most recent
domestic policy directive adopted at a meeting of the
Committee:
(a) To buy or sell U.S. Government securities, including securities of the Federal Financing Bank, and
securities that are direct obligations of, or fully guaranteed as to principal and interest by, any agency of the
United States in the open market, from or to securities
dealers and foreign and international accounts maintained at the Federal Reserve Bank of New York, on a
cash, regular, or deferred delivery basis, for the System
Open Market Account at market prices, and, for such
Account, to exchange maturing U.S. Government and
Federal agency securities with the Treasury or the individual agencies or to allow them to mature without
replacement; provided that the aggregate amount of U.S.
Government and Federal agency securities held in such
Account (including forward commitments) at the close
of business on the day of a meeting of the Committee at
which action is taken with respect to a domestic policy
directive shall not be increased or decreased by more
than $8.0 billion during the period commencing with the
opening of business on the day following such meeting
and ending with the close of business on the day of the
next such meeting;
(b) When appropriate, to buy or sell in the open
market, from or to acceptance dealers and foreign
accounts maintained at the Federal Reserve Bank of
New York, on a cash, regular, or deferred delivery basis,
for the account of the Federal Reserve Bank of New
York at market discount rates, prime bankers acceptances with maturities of up to nine months at the time of
acceptance that (1) arise out of the current shipment of
goods between countries or within the United States, or
(2) arise out of the storage within the United States of
goods under contract of sale or expected to move into
the channels of trade within a reasonable time and that
are secured throughout their life by a warehouse receipt
or similar document conveying title to the underlying
goods; provided that the aggregate amount of bankers
397
acceptances held at any one time shall not exceed
$100 million;
(c) To buy U.S. Government securities, obligations
that are direct obligations of, or fully guaranteed as to
principal and interest by, any agency of the United
States, and prime bankers acceptances of the types
authorized for purchase under 1(b) above, from dealers
for the account of the Federal Reserve Bank of New
York under agreements for repurchase of such securities,
obligations, or acceptances in 15 calendar days or less, at
rates that, unless otherwise expressly authorized by the
Committee, shall be determined by competitive bidding,
after applying reasonable limitations on the volume of
agreements with individual dealers; provided that in the
event Government securities or agency issues covered
by any such agreement are not repurchased by the dealer
pursuant to the agreement or a renewal thereof, they
shall be sold in the market or transferred to the System
Open Market Account; and provided further that in the
event bankers acceptances covered by any such agreement are not repurchased by the seller, they shall continue to be held by the Federal Reserve Bank or shall be
sold in the open market.
2. In order to ensure the effective conduct of open
market operations, the Federal Open Market Committee
authorizes and directs the Federal Reserve Banks to lend
U.S. Government securities held in the System Open
Market Account to Government securities dealers and to
banks participating in Government securities clearing
arrangements conducted through a Federal Reserve
Bank, under such instructions as the Committee may
specify from time to time.
3. In order to ensure the effective conduct of open
market operations, while assisting in the provision of
short-term investments for foreign and international
accounts maintained at the Federal Reserve Bank of
New York, the Federal Open Market Committee authorizes and directs the Federal Reserve Bank of New York
(a) for System Open Market Account, to sell U.S. Government securities to such foreign and international
accounts on the bases set forth in paragraph 1(a) under
agreements providing for the resale by such accounts of
those securities within 15 calendar days on terms comparable to those available on such transactions in the
market; and (b) for New York Bank account, when
appropriate, to undertake with dealers, subject to the
conditions imposed on purchases and sales of securities
in paragraph 1(c), repurchase agreements in U.S. Government and agency securities, and to arrange corresponding sale and repurchase agreements between its own
account and foreign and international accounts maintained at the Bank. Transactions undertaken with such
accounts under the provisions of this paragraph may
provide for a service fee when appropriate.
By unanimous vote, the Authorization for Foreign Currency Operations was amended to reflect
the new title of Manager for Foreign Operations,
System Open Market Account.
398
Federal Reserve Bulletin • May 1994
AUTHORIZATION FOR FOREIGN CURRENCY
OPERATIONS
Banks and Bankers, and with the approval of the Committee to renew such arrangements on maturity:
Amended February 3, 1994
1. The Federal Open Market Committee authorizes
and directs the Federal Reserve Bank of New York, for
System Open Market Account, to the extent necessary to
carry out the Committee's foreign currency directive and
express authorizations by the Committee pursuant
thereto, and in conformity with such procedural instructions as the Committee may issue from time to time:
A. To purchase and sell the following foreign currencies in the form of cable transfers through spot or
forward transactions on the open market at home and
abroad, including transactions with the U.S. Treasury,
with the U.S. Exchange Stabilization Fund established
by Section 10 of the Gold Reserve Act of 1934, with
foreign monetary authorities, with the Bank for International Settlements, and with other international financial
institutions:
Austrian schillings
Belgian francs
Canadian dollars
Danish kroner
Pounds sterling
French francs
German marks
Italian lire
Japanese yen
Mexican pesos
Netherlands guilders
Norwegian kroner
Swedish kronor
Swiss francs
B. To hold balances of, and to have outstanding
forward contracts to receive or to deliver, the foreign
currencies listed in paragraph A above.
C. To draw foreign currencies and to permit foreign banks to draw dollars under the reciprocal currency
arrangements listed in paragraph 2 below, provided that
drawings by either party to any such arrangement shall
be fully liquidated within 12 months after any amount
outstanding at that time was first drawn, unless the
Committee, because of exceptional circumstances, specifically authorizes a delay.
D. To maintain an overall open position in all
foreign currencies not exceeding $25.0 billion. For this
purpose, the overall open position in all foreign currencies is defined as the sum (disregarding signs) of net
positions in individual currencies. The net position in a
single foreign currency is defined as holdings of balances in that currency, plus outstanding contracts for
future receipt, minus outstanding contracts for future
delivery of that currency, i.e., as the sum of these elements with due regard to sign.
2. The Federal Open Market Committee directs the
Federal Reserve Bank of New York to maintain reciprocal currency arrangements ("swap" arrangements) for
the System Open Market Account for periods up to a
maximum of 12 months with the following foreign
banks, which are among those designated by the Board
of Governors of the Federal Reserve System under Section 214.5 of Regulation N, Relations with Foreign
Foreign bank
Austrian National Bank
National Bank of Belgium
Bank of Canada
National Bank of Denmark
Bank of England
Bank of France
German Federal Bank
Bank of Italy
Bank of Japan
Bank of Mexico
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
Bank for International Settlements:
Dollars against Swiss francs
Dollars against authorized European
currencies other than Swiss francs
Amount of
arrangement
(millions of
dollars
equivalent)
250
1,000
2,000
250
3,000
2,000
6,000
3,000
5,000
700
500
250
300
4,000
600
1,250
Any changes in the terms of existing swap arrangements, and the proposed terms of any new arrangements
that may be authorized, shall be referred for review and
approval to the Committee.
3. All transactions in foreign currencies undertaken
under paragraph l.A. above shall, unless otherwise
expressly authorized by the Committee, be at prevailing
market rates. For the purpose of providing an investment
return on System holdings of foreign currencies, or for
the purpose of adjusting interest rates paid or received
in connection with swap drawings, transactions with
foreign central banks may be undertaken at non-market
exchange rates.
4. It shall be the normal practice to arrange with
foreign central banks for the coordination of foreign
currency transactions. In making operating arrangements
with foreign central banks on System holdings of foreign
currencies, the Federal Reserve Bank of New York shall
not commit itself to maintain any specific balance,
unless authorized by the Federal Open Market Committee. Any agreements or understandings concerning the
administration of the accounts maintained by the Federal
Reserve Bank of New York with the foreign banks
designated by the Board of Governors under Section
214.5 of Regulation N shall be referred for review and
approval to the Committee.
5. Foreign currency holdings shall be invested insofar
as practicable, considering needs for minimum working
balances. Such investments shall be in liquid form, and
generally have no more than 12 months remaining to
maturity. When appropriate in connection with arrangements to provide investment facilities for foreign cur-
Minutes of the Federal Open Market Committee Meeting
rency holdings, U.S. Government securities may be purchased from foreign central banks under agreements for
repurchase of such securities within 30 calendar days.
6. All operations undertaken pursuant to the preceding paragraphs shall be reported promptly to the Foreign
Currency Subcommittee and the Committee. The Foreign Currency Subcommittee consists of the Chairman
and Vice Chairman of the Committee, the Vice Chairman of the Board of Governors, and such other member
of the Board as the Chairman may designate (or in the
absence of members of the Board serving on the Subcommittee, other Board members designated by the
Chairman as alternates, and in the absence of the Vice
Chairman of the Committee, his alternate). Meetings of
the Subcommittee shall be called at the request of any
member, or at the request of the Manager for Foreign
Operations, System Open Market Account ("Manager"), for the purposes of reviewing recent or contemplated operations and of consulting with the Manager
on other matters relating to his responsibilities. At the
request of any member of the Subcommittee, questions
arising from such reviews and consultations shall be
referred for determination to the Federal Open Market
Committee.
7. The Chairman is authorized:
A. With the approval of the Committee, to enter
into any needed agreement or understanding with the
Secretary of the Treasury about the division of responsibility for foreign currency operations between the System and the Treasury;
B. To keep the Secretary of the Treasury fully
advised concerning System foreign currency operations,
and to consult with the Secretary on policy matters
relating to foreign currency operations;
C. From time to time, to transmit appropriate
reports and information to the National Advisory Council on International Monetary and Financial Policies.
8. Staff officers of the Committee are authorized to
transmit pertinent information on System foreign currency operations to appropriate officials of the Treasury
Department.
9. All Federal Reserve Banks shall participate in the
foreign currency operations for System Account in
accordance with paragraph 3.G(1) of the Board of Governors' Statement of Procedure with Respect to Foreign
Relationships of Federal Reserve Banks dated January 1,
1944.
By unanimous vote, the Foreign Currency Directive shown below was reaffirmed.
FOREIGN CURRENCY DIRECTIVE
Reaffirmed February 3, 1994
1. System operations in foreign currencies shall generally be directed at countering disorderly market condi-
399
tions, provided that market exchange rates for the U.S.
dollar reflect actions and behavior consistent with the
IMF Article IV, Section 1.
2. To achieve this end the System shall:
A. Undertake spot and forward purchases and sales
of foreign exchange.
B. Maintain reciprocal currency ("swap") arrangements with selected foreign central banks and with the
Bank for International Settlements.
C. Cooperate in other respects with central banks
of other countries and with international monetary
institutions.
3. Transactions may also be undertaken:
A. To adjust System balances in light of probable
future needs for currencies.
B. To provide means for meeting System and Treasury commitments in particular currencies, and to facilitate operations of the Exchange Stabilization Fund.
C. For such other purposes as may be expressly
authorized by the Committee.
4. System foreign currency operations shall be
conducted:
A. In close and continuous consultation and cooperation with the United States Treasury;
B. In cooperation, as appropriate, with foreign
monetary authorities; and
C. In a manner consistent with the obligations of
the United States in the International Monetary Fund
regarding exchange arrangements under the IMF
Article IV.
By unanimous vote, the Procedural Instructions
with Respect to Foreign Currency Operations
shown below were amended to reflect the new title
of Manager for Foreign Operations, System Open
Market Account.
PROCEDURAL INSTRUCTIONS WITH RESPECT
TO FOREIGN CURRENCY OPERATIONS
Amended February 3, 1994
In conducting operations pursuant to the authorization
and direction of the Federal Open Market Committee as
set forth in the Authorization for Foreign Currency Operations and the Foreign Currency Directive, the Federal
Reserve Bank of New York, through the Manager for
Foreign Operations, System Open Market Account
("Manager"), shall be guided by the following procedural understandings with respect to consultations and
clearances with the Committee, the Foreign Currency
Subcommittee, and the Chairman of the Committee. All
operations undertaken pursuant to such clearances shall
be reported promptly to the Committee.
1. The Manager shall clear with the Subcommittee
(or with the Chairman, if the Chairman believes that
400
Federal Reserve Bulletin • May 1994
consultation with the Subcommittee is not feasible in the
time available):
A. Any operation that would result in a change in
the System's overall open position in foreign currencies
exceeding $300 million on any day or $600 million since
the most recent regular meeting of the Committee.
B. Any operation that would result in a change on
any day in the System's net position in a single foreign
currency exceeding $150 million, or $300 million when
the operation is associated with repayment of swap
drawings.
C. Any operation that might generate a substantial
volume of trading in a particular currency by the System,
even though the change in the System's net position in
that currency might be less than the limits specified
in l.B.
D. Any swap drawing proposed by a foreign
bank not exceeding the larger of (i) $200 million or
(ii) 15 percent of the size of the swap arrangement.
2. The Manager shall clear with the Committee (or
with the Subcommittee, if the Subcommittee believes
that consultation with the full Committee is not feasible
in the time available, or with the Chairman, if the Chairman believes that consultation with the Subcommittee is
not feasible in the time available):
A. Any operation that would result in a change in
the System's overall open position in foreign currencies
exceeding $1.5 billion since the most recent regular
meeting of the Committee.
B. Any swap drawing proposed by a foreign bank
exceeding the larger of (i) $200 million or (ii) 15 percent
of the size of the swap arrangement.
3. The Manager shall also consult with the Subcommittee or the Chairman about proposed swap drawings
by the System and about any operations that are not of a
routine character.
AGREEMENT TO "WAREHOUSE" FOREIGN
CURRENCIES
At its meeting on February 2-3, 1993, the Committee had reaffirmed the $5 billion limit on the
amount of eligible foreign currencies that the System was prepared to "warehouse" for the Treasury
and the Exchange Stabilization Fund (ESF). The
purpose of the warehousing facility is to supplement, at the discretion of the Federal Reserve, the
U.S. dollar resources of the Treasury and the ESF
for financing their purchases of foreign currencies
and related international operations. There had
been no use of this facility since an ESF repayment
of $2 billion on April 2, 1992. The Committee
decided at this meeting to reaffirm the $5 billion
ceiling, which it viewed as providing adequate
operational flexibility to respond on short notice to
unanticipated developments.
Votes for this action: Messrs. Greenspan, McDonough,
Broaddus, Forrestal, Kelley, LaWare, Lindsey, Parry,
and Ms. Phillips. Vote against this action: Mr. Jordan.
Absent and not voting: Messrs. Angell and Mullins.
Mr. Jordan dissented because he felt that providing funds to the Treasury using a warehousing
arrangement was, in effect, a loan to the Treasury.
In his opinion, direct financing of government operations by the central bank is inappropriate and
could compromise the effective conduct of monetary policy. He did not rule out the possible efficacy
of some warehousing transactions in very exceptional circumstances in the future, but he believed
that the latter should be approved only after full
Committee discussion. Accordingly, he did not
want to retain the standing $5 billion authorization.
By unanimous vote, the minutes of actions taken
at the meeting of the Federal Open Market Committee held on December 21, 1993, were approved.
The Manager for Foreign Operations reported on
developments in foreign exchange markets during
the period since the December meeting. There were
no System open market transactions in foreign
currencies during this period, and thus no vote was
required of the Committee.
The Manager for Domestic Operations reported
on developments in domestic financial markets and
on System open market transactions in government
securities and federal agency obligations during the
period December 21, 1993, through February 3,
1994. By unanimous vote, the Committee ratified
these transactions.
The Committee then turned to a discussion of the
economic and financial outlook, the ranges for the
growth of money and debt in 1994, and the implementation of monetary policy over the intermeeting
period ahead. A summary of the economic and
financial information available at the time of the
meeting and of the Committee's discussion is
provided below, followed by the domestic policy
directive that was approved by the Committee and
issued to the Federal Reserve Bank of New York.
The information reviewed at this meeting indicated that economic activity recorded a strong
advance during the closing months of 1993, and the
limited data available on production and employ-
Minutes of the Federal Open Market Committee Meeting
ment suggested appreciable further gains in the
early weeks of this year. Housing starts had
strengthened substantially in the fourth quarter of
last year, and business fixed investment had registered a sharp rise. Increases in broad indexes of
consumer and producer prices, excluding their food
and energy components, had been somewhat larger
in recent months than earlier in 1993, and prices of
a number of commodities had turned up.
Assessment of the January labor market data was
complicated by statistical revisions and weatherrelated reporting problems, but a variety of indicators pointed convincingly to a further strengthening
in the demand for labor. Total nonfarm payroll
employment posted a small gain in January after a
sizable December increase. Manufacturing employment rose for a fourth consecutive month, with
gains again concentrated in motor vehicles. Construction payrolls edged down, evidently reflecting
the adverse effects of severe winter weather. The
total number of jobs in the services industries was
unchanged in January, but the inclement weather
apparently held down employment in some segments of this sector as well. The average workweek
of production or nonsupervisory workers rose in
January to its highest level in almost five years; for
manufacturing, the average workweek remained at
its post-World War II high for a third consecutive
month. The civilian unemployment rate, calculated
on a new basis, was 6.7 percent in January.
Industrial production increased appreciably further in December, and the available information
suggested a considerable rise in January. In December, the advance in manufacturing was led by the
motor vehicle and computing equipment industries.
Sizable increases in materials and construction supplies also were recorded. On the other hand, the
output of consumer goods other than motor vehicles was sluggish, and the production of aircraft
and defense and space equipment continued to
shrink. Total utilization of manufacturing capacity
rose again in December and reached a relatively
high level, judged against historical experience.
Consumer spending, as measured by real personal consumption expenditures, posted another
solid increase in the fourth quarter, and strong sales
of motor vehicles in January suggested continued
buoyancy in consumer demand. In the fourth
quarter, real outlays on motor vehicles surged, and
spending on other durable goods—notably furni-
401
ture, appliances, and other household equipment—
registered further large gains. By contrast, real
outlays for nondurable goods and services rose
only moderately. Housing starts jumped in December, with both single-family and multifamily starts
sharing in the advance. For 1993 as a whole, housing starts were at their highest annual total in four
years. Sales of new homes were up sharply in
November, and sales of existing homes ended the
year at the highest monthly level in the twentyfive-year history of the series.
Real business fixed investment recorded a very
large increase in the fourth quarter. Business spending for equipment, notably for information processing equipment, was up sharply for a seventh
straight quarter. The strength evident in recent
orders for nondefense capital goods pointed to further gains in shipments of these goods in early
1994. Outlays for nonresidential structures in the
fourth quarter posted their largest quarterly rise in
six years; the increases were spread across a broad
array of categories other than office buildings. Construction permits continued to rise in the fourth
quarter, suggesting further growth of investment in
nonresidential structures in the near term.
Business inventories remained generally well
aligned with sales through November, the most
recent month for which complete data were available. In manufacturing, inventory stocks fell in
December after edging lower in November; with
brisk gains in shipments in both months, the ratio
of stocks to shipments fell further from levels that
already were low by historical standards. At the
wholesale level, inventories rose moderately in
November after little change in the preceding two
months. The inventory-to-sales ratio for this sector
had changed little since May. Retail inventories
expanded substantially in November for a third
straight month. The buildup of stocks might
have been in anticipation of robust holiday sales,
but for some retail businesses, particularly general
merchandise stores, the increases coincided
with weak sales. For the retail sector as a whole,
the inventory-to-sales ratio was up slightly in
November.
The average nominal U.S. merchandise trade deficit for the October-November period was about
the same as its average rate in the third quarter. The
value of exports was up for the two-month period,
with the increase occurring largely in machinery,
402
Federal Reserve Bulletin • May 1994
automotive products, and aircraft. The higher value
of imports for the two-month period reflected, as
had been the case earlier in 1993, greater imports
of consumer goods, automotive products, and
machinery. Trends in economic activity in the
major foreign industrial countries appeared to have
diverged further in the fourth quarter. Moderate
growth appeared to be continuing in Canada and
the United Kingdom, but economic activity seemed
to be growing more slowly or to have turned down
in Japan, western Germany, and France.
Producer prices of finished goods were down
slightly in December after being unchanged in
November. Excluding the food and energy components, producer prices edged higher in December
and were up slightly for the year as a whole. At the
retail level, consumer prices rose modestly in
November and December, with energy price declines holding down the increase in the overall
index. For items other than food and energy, prices
advanced in the two months at a slightly faster pace
than that seen over previous months of the year; for
1993 as a whole, the increase was about the same
as in 1992. Hourly compensation of private industry workers increased in the fourth quarter at the
same pace as in the third quarter. For 1993, the rise
in hourly compensation was little changed from the
previous year. Average hourly earnings of production or nonsupervisory workers rose sharply in
January, but for the twelve months ended in
January, the increase was the same as that recorded
for the previous twelve months.
At its meeting on December 21, 1993, the Committee adopted a directive that called for maintaining the existing degree of pressure on reserve positions and that did not include a presumption about
the likely direction of any adjustment to policy
during the intermeeting period. Accordingly, the
directive indicated that in the context of the Committee's long-run objectives for price stability and
sustainable economic growth, and giving careful
consideration to economic, financial, and monetary
developments, slightly greater or slightly lesser
reserve restraint might be acceptable during the
intermeeting period. The reserve conditions associated with this directive were expected to be consistent with modest growth of M2 and M3 over the
following months.
Open market operations were directed toward
maintaining the existing degree of pressure on
reserve positions throughout the intermeeting
period. Additional reserves were supplied to the
banking system on a temporary basis around yearend to meet seasonal movements in currency and
required reserves as well as an enlarged demand
for excess reserves. For the intermeeting period as
a whole, the federal funds rate remained close to
3 percent while adjustment plus seasonal borrowing averaged somewhat more than anticipated.
Most market interest rates declined slightly during the intermeeting period, and major indexes of
stock prices posted new highs. Market participants
saw the incoming news on inflation as encouraging; still, they viewed the economy as relatively
robust, and on balance they deemed a firming of
monetary policy to counteract a potential buildup
of inflation pressures as likely in the next few
months, but probably not in the very near term.
In foreign exchange markets, the trade-weighted
value of the dollar in terms of the other G-10
currencies changed little on balance over the intermeeting period. The dollar fell against the yen in
the context of somewhat higher Japanese interest
rates and renewed expressions of U.S. concern
about bilateral trade issues. The dollar appreciated
slightly relative to the German mark and other
European currencies against the background of relatively strong U.S. economic data and generally
sluggish economic activity in continental Europe.
Growth of the broad monetary aggregates,
though a little faster than in most of 1993, remained relatively slow over December and January. Investors evidently continued to find lowyielding deposits less appealing than stock and
bond mutual funds, although recent inflows to bond
funds appeared to have been at a slower rate than
that seen over most of 1993. For the year 1993,
growth of both M2 and M3 was estimated to have
been slightly above the lower ends of the Committee's ranges. Private borrowing had picked up in
recent months, and total domestic nonfinancial debt
expanded at a somewhat faster, though still moderate, pace in the fourth quarter; for the year, nonfinancial debt was estimated to have been in the
lower half of the Committee's monitoring range.
The staff forecast prepared for this meeting suggested that economic expansion would slow from
the very strong pace of the fourth quarter, but that
the economy still would advance in 1994 at a rate
somewhat in excess of the growth of potential. The
Minutes of the Federal Open Market Committee Meeting
severe winter weather over much of the country
and the California earthquake would tend to distort
economic indicators for the early part of the year;
however, taken together, these developments were
not expected to have a material or lasting effect on
the overall level of activity or prices. Consumer
spending, which for some time had tended to outpace the growth of disposable income, was projected to increase at a rate more in line with
incomes. Business fixed investment was expected
to decelerate gradually from the very rapid rate of
1993, reflecting the diminishing effect of the earlier
pickup in output growth, the slower growth of
corporate cash flow, and a less rapid decline in the
cost of capital. Homebuilding activity, driven by
the greatly improved affordability of housing and
increased confidence in employment prospects, was
anticipated to continue at a relatively brisk pace
through much of the year. Exports were projected
to strengthen somewhat, bolstered by some pickup
in foreign economic growth, and fiscal restraint
was expected to exert a reduced drag on spending.
In light of the limited margins of slack in labor and
product markets that were anticipated to prevail
over the forecast horizon, the ongoing expansion
was projected to be associated with only a slight
further reduction in the core rate of inflation.
In the Committee's discussion of current and
prospective economic developments, members
commented that the economy had entered the new
year with appreciable forward momentum and
that the expansion was likely to be sustained over
the year ahead at a pace somewhat above the
economy's long-run potential. The very rapid rate
of economic growth now indicated for the fourth
quarter of 1993 clearly could not be maintained.
Much of the recent impetus to the expansion
stemmed from a surge in expenditures on housing,
business equipment, and consumer durables. Such
spending had reached a very high level in relation
to underlying demands so that the pace of additional increases undoubtedly would moderate during the course of 1994. Still, the economic expansion seemed to have considerable momentum,
largely as a consequence of diminishing balance
sheet constraints and generally favorable financial
conditions spurred by a highly accommodative
monetary policy. As a consequence, a number of
members expressed the view that the risks were on
the upside of a moderate growth forecast. In the
403
context of low and decreasing slack in the economy, little further progress would be made toward
price stability in 1994, and there was a distinct risk
of higher inflation at some point if monetary policy
were not adjusted. While broad measures of inflation did not on the whole suggest any changes in
inflation trends, some members noted that a number of commodity prices had turned up in recent
months, and they referred to still scattered but
increasing anecdotal reports that some business
firms were paying slightly higher prices for various
materials purchased for use in the production
process.
In keeping 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 rate
of unemployment, and inflation for 1994. The central tendency of the forecasts pointed to somewhat
faster economic growth this year than currently
was estimated for 1993. The anticipated rate of
economic expansion was expected to foster a limited further drop in the rate of unemployment by
the fourth quarter of this year. With the slack in
productive resources expected to diminish further
to a quite low level, price and cost pressures were
unlikely to abate significantly; indeed, price
increases in 1994 could exceed those of 1993 when
inflation had been held down by favorable developments in energy prices. Measured from the fourth
quarter of 1993 to the fourth quarter of 1994, the
forecasts for growth of real GDP had a central
tendency of 3 to 3]A percent and a full range of 2L/Z
to 33/4 percent. Projections of the civilian rate of
unemployment in the fourth quarter of 1994 were
all in a range of 6V2 to 63A percent calculated on the
basis of the new survey recently introduced by the
Bureau of Labor Statistics. For the CPI, the central
tendency of the forecasts for the period from the
fourth quarter of 1993 to the fourth quarter of 1994
was centered on increases of about 3 percent within
a range of 2LA to 4 percent, and for nominal GDP
the forecasts were clustered in a range of 5lA to
6 percent for the year.
In the Committee's review of factors underlying
recent developments, members observed that generally favorable financial conditions provided a
backdrop conducive to further robust expansion in
404
Federal Reserve Bulletin • May 1994
business activity. Much of the recent strengthening
in economic growth was generated by increased
spending in interest-sensitive sectors of the economy such as housing in response to relatively low
interest rates. Generally buoyant equity markets, a
readier availability of financing from lending institutions, and the strengthened financial condition
of businesses and households also were cited as
factors tending to boost economic activity. Balance
sheet restructuring activities appeared to have
slackened markedly, and while balance sheet
adjustments probably were still being made, the
latter seemed to be exerting much less restraint on
the willingness of businesses and especially households to spend and to incur new debt to finance
growing expenditures.
In their reports on developments across the
nation, members commented on widespread indications of improving economic activity, including
some strengthening in regions that earlier were
characterized by stagnant business conditions.
Some areas continued to be affected adversely by
special factors, especially by spending cutbacks in
defense and aerospace industries. California was a
notable example, but a range of indicators suggested that the California economy might be stabilizing, albeit at a depressed level, after an extended
period of declining activity. Mirroring these developments, business sentiment was characterized as
generally optimistic around the nation. While business executives remained cautious in their hiring
practices, the expansion in business activity was
fostering sizable overall gains in employment
even in areas where some major business concerns
were reducing their workforces. A few large
firms that previously had frozen or reduced their
payrolls were now reported to be hiring additional
workers.
Turning to prospective developments in key sectors of the economy, the members anticipated that
the expansion in consumer expenditures would be
well maintained during 1994, though the growth in
such spending probably would moderate to a pace
more in line with gains in disposable income. The
available data on retail sales since the holiday
period were still limited, but anecdotal reports
pointed to continuing momentum in several parts
of the country. Winter storms had hindered sales in
a number of areas, but according to some retail
contacts the adverse effects were likely to be tem-
porary. In any event, the very rapid rates of growth
in sales of automobiles and other consumer durables were not sustainable, and already high consumer debt ratios would be a further inhibiting
factor. It was noted in this connection that consumer debt had become more concentrated over the
course of recent years among consumer groups that
were most likely to borrow to help finance their
spending, with the result that the ability of such
consumers to incur additional indebtedness could
be diminished. Higher taxes confronting some
households also were cited as a negative factor in
the outlook for the consumer sector. On balance,
however, while the prospects for consumer spending clearly were not free of uncertainty, the marked
improvement in consumer confidence and favorable financial conditions would provide a setting
conducive to sustained moderate growth in consumer expenditures.
The improvement in consumer sentiment together with the availability of relatively low cost
financing had fostered very strong growth in housing construction over the closing months of 1993
and, adjusting for seasonal weather conditions, anecdotal reports from many areas suggested a continued robust performance in this sector of the
economy in the early weeks of this year. The
strength in housing activity had induced increases
in the costs of lumber and other building materials,
and shortages of skilled construction workers were
reported in some areas. Despite these developments, prices of new homes did not appear at this
point to be under significant upward pressure.
Looking ahead, with housing construction already
at high levels, further gains over the course of 1994
were expected to be substantially below those
recorded in recent quarters.
Business fixed investment was likely to be sustained by continuing efforts to modernize production facilities in order to achieve more efficient
operations in highly competitive domestic and
world markets. The gains in such investment had
been concentrated in expenditures for equipment,
and while new orders pointed to further brisk
growth in the months ahead, increases in such
expenditures were likely to moderate over time. At
the same time, growing economic activity and
associated declines in commercial and industrial
vacancy rates, at least in some parts of the country,
suggested that nonresidential building construction
Minutes of the Federal Open Market Committee Meeting
other than office structures would post sizable
increases over the year. Rebuilding activity following the earthquake in California would stimulate
engineering and construction in the Los Angeles
area over the quarters ahead.
Fiscal policy and foreign trade had exerted
retarding effects on the economy in 1993. While
the response of the economy to fiscal restraint and
the outlook for export markets remained subject to
substantial uncertainty, both fiscal policy and the
trade deficit were expected at this point to be less
negative factors in the performance of the economy
during 1994. With regard to the outlook for fiscal
policy, the downtrend in defense spending was
projected to moderate and to contribute to a smaller
net decline in overall federal government expenditures on goods and services in 1994. It was noted
that the widespread political support of efforts
to curtail federal government deficits could be
expected to continue to contain new federal spending initiatives. With regard to the outlook for U.S.
exports, more accommodative fiscal or monetary
policies abroad were expected to foster a gradual
improvement in rates of economic growth in major
foreign industrial countries with beneficial effects
on the demand from those countries for U.S. goods
and services. One member also commented that
NAFTA already seemed to be having a favorable
effect on some exports to Mexico.
One sector of the economy that was viewed as a
source of particular uncertainty was the outlook for
inventories. Business firms continued to maintain
tight control over their inventories, and in general
the latter were at quite low levels in relation to
sales. Indeed, there were some anecdotal reports
that inventory shortfalls had resulted in the loss of
sales in recent months. Lean inventory levels in the
context of diminishing slack in labor and product
markets raised concerns about the potential for
increasing capacity pressures should strong demands persist that would tend to deplete existing
inventories and lead to efforts not only to rebuild
but to increase them. Thus far, there were few signs
of developments such as significant increases in
delivery lead times or in the costs of goods purchased by business firms that in the past had triggered substantial inventory buildups. However,
there were ample precedents in the history of
business-cycle expansions of efforts to accumulate
large inventories in periods when strong final
405
demands already were exerting inflationary pressures in the economy.
The members generally expressed concern about
a buildup in inflationary pressures during the year
ahead, especially if what they currently viewed as a
very accommodative monetary policy were maintained. A number of members emphasized that
even with the substantial slowing that they anticipated in the rate of economic expansion from the
very rapid growth in the fourth quarter, overall
margins of slack in labor and product markets,
already reduced to fairly modest levels, would
shrink further in the quarters ahead with the clear
possibility that various imbalances and added inflation would emerge in the absence of monetary
tightening actions. Continuing upward impetus to
food prices, resulting from the adverse weather
conditions during 1993, and the likelihood that
energy prices would not decline further and might
in fact turn up in an environment of somewhat
stronger worldwide demand for energy products
could add to overall price pressures.
The members acknowledged that broad measures of prices and wages had displayed mixed
patterns over recent months and that on the whole
they did not yet point to any clear change in inflation trends. However, some other indicators were
more disquieting. One example was the growing,
though still limited, number of anecdotal reports of
shortages of skilled workers in some parts of the
country or occupations, notably construction.
Moreover, there were more reports of rising prices
for products being purchased by business firms for
use in the production process and in turn of successful efforts by businesses to raise their own
prices in order to pass on higher costs or to
improve their profit margins. More generally, many
commodity prices had increased over the past several weeks. On the positive side, competitive pressures remained intense in many markets, augmented in markets for numerous products by
competition from foreign producers. Some members also commented that the tradeoff between
economic growth and inflation would be improved
over the year ahead to the extent that the credibility of the System's anti-inflationary policy was
maintained.
In keeping with the requirements of the Full
Employment and Balanced Growth Act of 1978
(the Humphrey-Hawkins Act), the Committee at
406
Federal Reserve Bulletin • May 1994
this meeting reviewed the ranges for growth of the
monetary and debt aggregates in 1994 that it had
established on a tentative basis at its meeting on
July 6-7, 1993. The tentative ranges included
expansion of 1 to 5 percent for M2 and 0 to 4 percent for M3, measured from the fourth quarter of
1993 to the fourth quarter of 1994. The monitoring
range for growth of total domestic nonfinancial
debt had been set provisionally at 4 to 8 percent for
1994. All of these ranges were unchanged from
those that the Committee had set for 1993; the
latter had been adjusted down to take account of
ongoing increases in velocity.
In the Committee's discussion of the ranges for
1994, which tended to focus on M2, all the members expressed a preference for affirming the M2
and M3 ranges that had been established on a
provisional basis in July and all but one favored
adopting the provisional monitoring range for nonfinancial debt; that member preferred a lower
range. Many of the members commented on the
uncertainties that surrounded the establishment of
ranges that were consistent with the Committee's
goals for the economy. They noted that a variety of
developments had altered the historical relationships between the monetary aggregates and broad
measures of economic performance over the past
several years. The resulting uncertainty implied
that the Committee needed to retain a flexible
approach to the behavior of the monetary aggregates in relation to their ranges, including the need
to assess a broad array of other indicators to gauge
the implications of monetary growth developments.
Nonetheless, the members concluded that as best
they could evaluate evolving financial conditions at
this point, monetary growth within the tentative
ranges would be likely to promote the Committee's
objectives of sustained economic expansion and
subdued inflation.
In 1993, both M2 and M3 had grown at rates
about Vi percentage point above the lower bounds
of the ranges that the Committee now contemplated
retaining for 1994. According to a staff analysis
prepared for this meeting, somewhat faster growth
in both of these aggregates could be expected in
1994. But with nominal GDP also expected to be
stronger, as indicated by the central tendency of the
members' forecasts, the velocity of M2 would continue to rise at an appreciably faster rate than
historical relationships would have suggested. This
assessment assumed that households would continue to redirect savings from M2-type accounts to
higher-yielding investments, especially bond and
stock mutual funds. However, such redeployments
of funds should moderate this year to the extent
that some investors already had accomplished a
considerable portion of their desired portfolio reallocations and in light of the possibility that changes
in the prices of stocks and bonds, including the
drop in bond prices in recent months, would underline the risks of holding such instruments. Moreover, depository institutions had strengthened their
capital positions markedly and were likely to compete more aggressively for M2 and especially for
M3-type deposits in an effort to maintain or
increase their role in the financing of expanding
economic activity. While these developments and
their implications for monetary growth could not
be forecast with confidence, the members believed
that the ranges under consideration would probably
be sufficiently wide to accommodate M2 and M3
growth rates under a variety of likely velocity
scenarios. For example, if the factors that had
tended to depress the growth of the broad aggregates in relation to income did not abate as
expected this year, M2 and M3 growth would again
be near the lower bounds of the Committee's
ranges. Alternatively, if the behavior of these
aggregates were to move closer to earlier patterns,
growth in the upper portions of the ranges would
foster an economic performance in line with the
members' forecasts.
From the perspective of a longer time horizon,
many of the members noted that the provisional
range for M2 was essentially at a level that could
well prove to be consistent with sustained and
noninflationary economic expansion. This conclusion assumed that historical relationships between
money growth and the expansion of broad measures of economic performance would be restored
at some point. In the absence of such a development or the emergence of new, reasonably stable
relationships, the Committee would have to continue to place diminished reliance on the monetary
aggregates in the formulation of monetary policy.
With regard to the range for nonfinancial debt,
the members anticipated that its growth this year
would remain within the contemplated range. A
staff analysis suggested that its federal borrowing
component would decrease as a result of the ongo-
Minutes of the Federal Open Market Committee Meeting
ing effects of deficit reduction measures that had
been enacted and the rise in tax receipts stemming
from economic growth. At the same time, borrowing by the nonfederal sectors should strengthen
further against the backdrop of more comfortable
financial positions and the expected pickup in GDP
expansion. In one view, however, a somewhat
lower range was desirable for nonfinancial debt. In
light of the shift in business preferences away from
debt and toward equity, debt velocity could
increase and slower growth in debt would be consistent with the Committee's objectives. However,
this member could accept the higher range favored
by the other members for 1994.
At the conclusion of the Committee's discussion,
all the members indicated that they favored or
could accept the ranges for 1994 that the Committee had established on a tentative basis at its meeting in July 1993. 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 interim 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
and promote sustainable growth in output. In furtherance
of these objectives, the Committee at this meeting established ranges for growth of M2 and M3 of 1 to 5 percent
and 0 to 4 percent respectively, measured from the
fourth quarter of 1993 to the fourth quarter of 1994. The
Committee anticipated that developments contributing to
unusual velocity increases could persist during the year
and that money growth within these ranges would be
consistent with its broad policy objectives. The monitoring range for growth of total domestic nonfinancial debt
was set at 4 to 8 percent for the year. 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, McDonough,
Broaddus, Forrestal, Jordan, Kelley, LaWare, Lindsey,
Parry, and Ms. Phillips. Votes against this action:
None. Absent and not voting: Messrs. Angell and
Mullins.
In the Committee's discussion of policy for the
intermeeting period ahead, the members favored an
adjustment toward a less accommodative policy
407
stance, though views differed to some extent with
regard to the amount of the adjustment. The current
policy posture, which had been in effect since the
late summer of 1992, was highly stimulative as
evidenced, for example, by very low or even
slightly negative real short-term interest rates and,
in the view of at least some members, the relatively
rapid growth over an extended period in narrow
measures of money and reserves. Such a policy had
been appropriate in a period when various developments had tended to inhibit the expansion, including widespread efforts to repair strained balance
sheets and a variety of business restructuring activities that had tended to depress confidence and
spending. More recently, the considerable progress
made by households and businesses in decreasing
their debt service burdens and the much strengthened capital positions of lending institutions had
provided a financial basis, in the context of low
interest rates, for growth in demands on productive
capacity that could generate inflation pressures. In
this situation, the members agreed that monetary
policy should be adjusted toward a more neutral
stance that would encourage sustained economic
growth without a buildup of inflationary imbalances. The members recognized that timely action
was needed to preclude the necessity for more
vigorous and disruptive policy moves later if inflationary pressures were allowed to intensify. The
history of past cyclical upswings had demonstrated
the inflationary consequences and adverse effects
on economic activity of delayed anti-inflation
policy actions.
In the course of the Committee's discussion, a
number of members endorsed a policy move that
would involve only a slight adjustment toward a
less accommodative degree of reserve pressure.
These members recognized that evolving economic
conditions might well justify a somewhat greater
policy adjustment. They believed, however, that
even a slight move at this time was likely to have a
particularly strong impact on financial markets
because it would be the first policy change after a
long hiatus and indeed the first tightening action in
about five years. The market effect might be amplified by a contemplated decision to authorize the
Chairman to announce the policy action (discussed
below). In the circumstances, these members felt
that a somewhat greater policy adjustment would
incur an unacceptable risk of dislocative repercus-
408
Federal Reserve Bulletin • May 1994
sions in financial markets. A relatively small move
would readily accomplish the purposes of signaling
the Committee's anti-inflation resolve and together
with expected further action should help to temper
or avert an increase in inflation expectations and
speculative developments in financial markets.
Other members indicated a preference for a
somewhat greater firming action that would move
monetary policy closer to a desirable neutral stance.
In this view, recent developments in the economy
had demonstrated that monetary policy was much
too accommodative and that slow, gradual tightening moves risked allowing inflation pressures to
build. A more decisive policy move at this juncture
would in fact reduce uncertainty, because fewer
discrete actions would be required and they would
have a more pronounced and desirable effect in
curbing inflationary sentiment and thus in minimizing upward pressures on longer-term interest
rates over time. The result would be a policy stance
that was more consistent with sustained economic
expansion and progress toward price stability.
In further discussion, all the members indicated
that they could accept the proposed slight policy
adjustment at this point, but many observed that
additional firming probably would be desirable
later. The members did not see any unusual likelihood that a further policy action would be needed
during the intermeeting period, and the Committee
therefore decided to retain an unbiased intermeeting instruction in the directive. In this connection,
it was understood that the Committee would be
prepared to review its policy stance and take further action, if warranted by intermeeting developments, at a telephone conference during the period
ahead.
At this meeting, Committee members discussed
and agreed on a proposal to have the Chairman
announce the Committee's short-term policy decision promptly. The purpose of such an announcement, which would be a departure from past
Committee practice, was to avoid any misinterpretation of the Committee's action and its purpose.
Because this would be the first tightening policy
action in a long time, it was likely to attract considerable attention. The Committee did not intend this
announcement to set any precedents or to imply
any commitments regarding the announcement of
its decisions in the future. That matter would be
reviewed along with other issues relating to the
disclosure of Committee information at a later
meeting.
At the conclusion of the Committee's discussion,
all the members indicated that they could support a
directive that called for a slight increase in the
degree of pressure on reserve positions and that did
not include a presumption about the likely direction
of any adjustment to policy during the intermeeting
period. Accordingly, the Committee decided that in
the context of its long-run objectives for price
stability and sustainable economic growth, and
giving careful consideration to economic, financial,
and monetary developments, slightly greater or
slightly lesser reserve restraint might be acceptable
during the intermeeting period. The reserve conditions contemplated at this meeting were expected
to be consistent with moderate growth in M2 and
M3 over the first half of 1994.
At the conclusion of the meeting, the Federal
Reserve Bank of New York was authorized and
directed, until instructed otherwise by the Committee, to execute transactions in the System Account
in accordance with the following domestic policy
directive:
The information reviewed at this meeting indicates a
strong advance in economic activity during the closing
months of 1993, and the limited data available for the
early weeks of this year suggest appreciable further
gains. The January labor market data were complicated
by statistical revisions and weather-related reporting
problems; however, a variety of indicators pointed convincingly to a continuing expansion of employment.
Industrial production increased sharply in the fourth
quarter and appears to have risen considerably further in
January. Consumer spending and housing activity posted
solid gains in late 1993, and strong sales of motor
vehicles in January suggested continued buoyancy in
consumer demand. Trends in contracts and orders point
to further sizable gains in business fixed investment. The
average nominal U.S. merchandise trade deficit in
October-November was about the same as its average
rate in the third quarter. Over the latter part of 1993,
increases in broad indexes of consumer and producer
prices, excluding their food and energy components,
were somewhat larger than earlier in the year and prices
of a number of commodities also turned up recently.
Most market interest rates have declined slightly since
the Committee meeting on December 21, 1993. In foreign exchange markets, the trade-weighted value of the
dollar in terms of the other G-10 currencies is about
unchanged over the intermeeting period.
Growth of M2 and M3 was relatively slow over
December and January. From the fourth quarter of 1992
to the fourth quarter of 1993, M2 and M3 are estimated
Minutes of the Federal Open Market Committee Meeting
to have grown at rates slightly above the lower ends of
the Committee's ranges for the year. Private borrowing
has picked up in recent months and total domestic nonfinancial debt expanded at a moderate rate in the fourth
quarter; for the year, nonfinancial debt is estimated to
have increased at a rate in the lower half of the Committee's monitoring range.
The Federal Open Market Committee seeks monetary
and financial conditions that will foster price stability
and promote sustainable growth in output. In furtherance
of these objectives, the Committee at this meeting established ranges for growth of M2 and M3 of 1 to 5 percent
and 0 to 4 percent respectively, measured from the fourth
quarter of 1993 to the fourth quarter of 1994. The
Committee anticipated that developments contributing to
unusual velocity increases could persist during the year
and that money growth within these ranges would be
consistent with its broad policy objectives. The monitoring range for growth of total domestic nonfinancial debt
was set at 4 to 8 percent for the year. 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 increase slightly the
409
existing degree of pressure on reserve positions. In the
context of the Committee's long-run objectives for price
stability and sustainable economic growth, and giving
careful consideration to economic, financial, and monetary developments, slightly greater reserve restraint or
slightly lesser reserve restraint might be acceptable in
the intermeeting period. The contemplated reserve conditions are expected to be consistent with moderate
growth in M2 and M3 over the first half of 1994.
Votes for this action: Messrs. Greenspan, McDonough,
Broaddus, Forrestal, Jordan, Kelley, LaWare, Lindsey,
Parry, and Ms. Phillips. Votes against this action:
None. Absent and not voting: Messrs. Angell and
Mullins.
It was agreed that the next meeting of the Committee would be held on Tuesday, March 22, 1994.
The meeting adjourned at 11:45 a.m.
Donald L. Kohn
Secretary
411
Legal Developments
FINAL RULE—AMENDMENT
TO RULES
REGARDING FOREIGN GIFTS AND DECORATIONS
The Board of Governors is amending 12 C.F.R. Part
264b, its Rules Regarding Foreign Gifts and Decorations. The Board's Rules Regarding Foreign Gifts and
Decorations provide that requests for Board approval
of the acceptance of such expenses must be submitted
to the Vice Chairman of the Board. The rules do not
specify who should act upon such requests in the
absence of the Vice Chairman, or in situations where
the position of Vice Chairman is vacant. Accordingly,
this rule will authorize the Board's Administrative
Governor to act on requests for Board approval of
these expenses when the Vice Chairman is unavailable.
Effective March 17, 1994, 12 C.F.R. Part 264b is
amended as follows:
Part 264b—Rules Regarding Foreign Gifts and
Decorations
1. The authority citation for part 264b continues to
read as follows:
Authority: 5 U.S.C. 552; 5 U.S.C.
amended; 12 U.S.C. 248(i).
7342,
as
2. In section 264b.3, the last sentence in paragraph (d)
is amended by removing the period at the end of the
sentence and adding the phrase ", or, if the Vice
Chairman is unavailable, to the Board's Administrative Governor." in its place.
These Rules are hereby issued as a final rule. The
Board issued these Rules as an interim rule, with
request for public comments, on February 18, 1993.
This final rule deviates from the interim rule in only a
few particulars, based upon recommendations received from the Commission and from interested
members of the Board's staff.
Effective March 29, 1994, 12 C.F.R. Part 268 is
amended as follows:
Part 268—Rules Regarding Equal Opportunity
Subpart A—General Provisions and
Administration
Section 268.101—Authority, purpose and scope.
Section 268.102—Definitions.
Section 268.103—Equal employment designations.
Subpart B—Board Program To Promote Equal
Opportunity
Section 268.201—General policy for equal opportunity.
Section 268.202—Board program for equal employment opportunity.
Section 268.203—Complaints of discrimination covered under this part.
Section 268.204—Pre-complaint processing.
Section 268.205—Individual complaints.
Section 268.206—Dismissals of complaints.
Section 268.207—Investigation of complaints.
Section 268.208—Hearings.
Section 268.209—Final decisions.
FINAL RULE—AMENDMENT
TO RULES
REGARDING EQUAL
OPPORTUNITY
The Board of Governors is amending 12 C.F.R. Part
268, its Rules Regarding Equal Opportunity (Rules), to
conform those Rules as closely as possible to the
Equal Employment Opportunity Commission's (the
Commission's) complaint processing regulation for
federal employers, "Federal Sector Equal Employment Opportunity", which became effective October 1, 1992.
Subpart C—Provisions Applicable to Particular
Complaints
Section
Act.
Section
Section
Section
Section
268.301—Age Discrimination in Employment
268.302—Equal Pay Act.
268.303—Rehabilitation Act.
268.304—Employment of noncitizens.
268.305—Class complaints.
412
Federal Reserve Bulletin • May 1994
Subpart D—Review by the Equal Employment
Opportunity Commission
Subpart A—General Provisions and
Administration
Section 268.401—Review by the Equal Employment
Opportunity Commission.
Section 268.402—Time limits for review by the Equal
Employment Opportunity Commission.
Section 268.403—How to seek review.
Section 268.404—Procedure on review.
Section 268.405—Decisions on review.
Section 268.406—Reconsideration.
Section 268.101—Authority, purpose and
scope.
Subpart E—Remedies, Enforcement and Civil
Actions
Section 268.501—Remedies and relief.
Section 268.502—Compliance with EEOC decisions.
Section 268.503—Enforcement of EEOC decisions.
Section 268.504—Compliance with settlement agreements and final decisions.
Section 268.505—Civil action: Title VII, Age Discrimination in Employment Act and Rehabilitation Act.
Section 268.506—Civil action: Equal Pay Act.
Section 268.507—Effect of filing a civil action.
Subpart F—Matters of General Applicability
Section 268.601—EEO group statistics.
Section 268.602—Reports to the Equal Employment
Opportunity Commission.
Section 268.603—Voluntary settlement attempts.
Section 268.604—Filing and computation of time.
Section 268.605—Representation and official time.
Section 268.606—Joint processing and consolidation
of complaints.
Subpart G—Prohibition Against Discrimination
in Board Programs and Activities Because of a
Physical or Mental Disability
Section 268.701—Purpose and application.
Section 268.702—Notice.
Section 268.703—Prohibition against discrimination.
Section 268.704—Employment.
Section 268.705—Program accessibility: Discrimination prohibited.
Section 268.706—Program accessibility: Existing facilities.
Section 268.707—Program accessibility: New construction and alterations.
Section 268.708—Communications.
Section 268.709—Compliance procedures.
Authority: 12 U.S.C. 244 and 248(i), (k) and (1).
(a) Authority. The regulations in this part (12 C.F.R.
Part 268) are issued by the Board of Governors of the
Federal Reserve System under the authority of Sections 10(4) and ll(i),(k) and (1) of the Federal Reserve
Act (partially codified in 12 U.S.C. 244 and 248(i),(k)
and (1)).
(b) Purpose and scope. This part sets forth the Board's
policy, program and procedures for providing equal
opportunity to Board employees and applicants for
employment without regard to race, color, religion,
sex, national origin, age, or physical or mental disability. It also sets forth the Board's policy, program and
procedures for prohibiting discrimination on the basis
of physical or mental disability in programs and activities conducted by the Board. It also specifies the
circumstances under which the Board will hire or
decline to hire persons who are not citizens of the
United States, consistent with the Board's operational
needs, the requirements and prohibitions of the Immigration Reform and Control Act of 1986, as amended,
and other applicable law.
Section 268.102—Definitions.
The definitions contained in this section shall have the
following meanings throughout this part unless otherwise stated.
(a) ADEA means the Age Discrimination In Employment Act (29 U.S.C. 621 et seq.).
(b) Agent of the class means a class member who acts
for the class during the processing of the class complaint under section 268.305 of this part.
(c) Agreement of resolution means the agreement
referred to in section 268.305(f)(3) of this part.
(d) Auxiliary aids as used in subpart G of this part
means services or devices that enable persons with
impaired sensory, manual, or speaking skills to have
an equal opportunity to participate in, and enjoy the
benefits of, programs or activities conducted by the
Board. For example, auxiliary aids useful for persons
with impaired vision include readers, Braille materials,
audio recordings, telecommunication devices and
other similar services and devices. Auxiliary aids
useful for persons with impaired hearing include telephone handset amplifiers, telephones compatible with
hearing aids, telecommunication devices for deaf persons (TDD's), interpreters, note takers, written materials, and other similar services and devices.
Legal Developments
(e) Board means the Board of Governors of the Federal Reserve System.
(f) Class as used in section 268.305 of this part means
a group of Board employees, former employees or
applicants for employment who allegedly have been or
are being adversely affected by a personnel policy or
practice of the Board that discriminates against the
group on the basis of their race, color, religion, sex,
national origin, age or disability.
(g) Class complaint means a written complaint of
discrimination filed on behalf of a class by the agent of
the class alleging that:
(1) The class is so numerous that a consolidated
complaint of the members of the class is impractical;
(2) There are questions of fact common to the class;
(3) The claims of the agent of the class are typical of
the claims of the class; and
(4) The agent of the class, or, if represented, the
representative, will fairly and adequately protect the
interests of the class.
(h) Commission means the Equal Employment Opportunity Commission.
(i) Complainant means an aggrieved person who files
an individual complaint pursuant to section 268.205 of
this part, except that complainant shall mean a complainant, agent of the class or individual class claimant
for purposes of sections 268.209, 268.402 through
268.406 and subparts E and F of this part.
(j) Complete complaint as used in subpart G of this
part means a written statement that contains the
complainant's name and address and describes the
Board's alleged discriminatory actions in sufficient
detail to inform the Board of the nature and date of the
alleged violation. It shall be signed by the complainant
or by someone authorized to do so on his or her behalf.
Complaints filed on behalf of classes or third parties
shall describe or identify (by name, if possible) the
alleged victims of discrimination,
(k) EEOC decision means the written decision issued
by the Commission's Office of Federal Operations as
described in section 268.405 of this part.
(1) Facility means all or any portion of buildings,
structures, equipment, roads, walks, parking lots,
rolling stock or other conveyances, or other real or
personal property.
(m) Final decision means the Board's decision described in section 268.209 of this part,
(n) Has a record of such an impairment means has a
history of, or has been classified (or misclassified) as
having, a physical or mental impairment that substantially limits one or more major life activities,
(o) Individual with a disability means a person who:
(1) Has a physical or mental impairment which
substantially limits one or more of such person's
major life activities;
413
(2) Has a record of such an impairment ; or
(3) Is regarded as having such an impairment; and
(4) Shall not include an individual, a Board employee or applicant for employment, impaired while
under the influence of illegal drugs, an individual
disabled by alcoholism, or an individual with an
infectious or communicable disease, as further defined in section 268.303(g) of this part.
(p) Investigator means an investigative officer or complaint examiner selected or appointed pursuant to
sections 268.103(c)(ll) and 268.305(e)(3) of this part,
(q) Is regarded as having an impairment means:
(1) Has a physical or mental impairment that does
not substantially limit major life activities but is
treated by the Board as constituting such a limitation;
(2) Has a physical or mental impairment that substantially limits major life activities only as a result
of the attitudes of others toward such impairment;
or
(3) Has none of the impairments defined in section
268.102(s) of this part, but is treated by the Board as
having such an impairment.
(r) Major life activities means functions, such as caring
for one's self, performing manual tasks, walking,
seeing, hearing, speaking, breathing, learning and
working.
(s) Physical or mental impairment means:
(1) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one
or more of the following body systems: Neurological, musculoskeletal, special sense organs, respiratory (including speech organs), cardiovascular, reproductive, digestive, genitourinary, hemic and
lymphatic, skin, and endocrine; or
(2) Any mental or psychological disorder, such as
mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities.
(t) Qualified individual with a disability means:
(1) With respect to a Board program or activity
under which a person is required to perform services
or to achieve a level of accomplishment, an individual with a disability who meets the essential eligibility requirements and who can achieve the purpose
of the program or activity without modifications in
the program or activity that the Board can determine
on the basis of a written record would result in a
fundamental alteration in its nature;
(2) With respect to any other program or activity, an
individual with a disability who meets the essential
eligibility requirements for participation in, or receipt of benefits from, that program or activity; or
(3) With respect to employment, an individual with a
disability who, with or without reasonable accom-
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Federal Reserve Bulletin • May 1994
modation, can perform the essential functions of the
position in question without endangering the health
and safety of the individual or others, and who
meets the experience or education requirements
(which may include passing a written test) of the
position in question,
(u) Title VII means Title VII of the Civil Rights Act (42
U.S.C. 2000e et seq.).
Section 268.103—Equal employment
designations.
(a) Administrative Governor. The Administrative Governor, a member of the Board of Governors designated
by the Chairman of the Board, is charged with overseeing the internal affairs of the Board and is empowered to make decisions and determinations on behalf
of the Board when authority to do so is delegated to
him or her.
(1) The Administrative Governor is hereby delegated the authority to make determinations adjudicating complaints of discrimination pursuant to sections 268.206, 268.209, 268.305(i) and 268.709 of this
part, unless a member of the Board of Governors
has requested that the Board of Governors make the
decision on the complaint pursuant to sections
268.209(a) or 268.709(k) of this part, settlements
pursuant to section 268.305(f) of this part and determinations regarding attorney fees pursuant to section 268.501(e) of this part. The Administrative
Governor is further delegated the authority to order
such corrective measures, including such remedial
actions as may be required by subpart E of this part,
as he or she may consider necessary, including such
disciplinary action as is warranted by the circumstances when an employee has been found to have
engaged in a discriminatory practice.
(2) The Administrative Governor may delegate to
any officer or employee of the Board any of his or
her duties or functions under this part.
(3) The Administrative Governor may refer to the
Board of Governors for determination or decision
any complaint of discrimination that the Administrative Governor would otherwise decide pursuant to
sections 268.206, 268.209, 268.305(i) and 268.709 of
this part, settlements pursuant to section 268.305(f)
of this part and determinations regarding attorney
fees pursuant to section 268.501(e) of this part, and
may make changes in programs and procedures
designed to eliminate discriminatory practices or to
improve the Board's programs under this part, and
may make any recommendation for remedial or
disciplinary action with respect to managerial or
supervisory employees who have failed in their
responsibilities, or employees who have been found
to have engaged in discriminatory practices, or with
regard to any other matter which the Administrative
Governor believes merits the attention of the Board
of Governors.
(b) Staff Director for Management. The Staff Director
for Management shall perform the following functions
under this part:
(1) When so authorized by the Administrative Governor, the Staff Director for Management shall make
any determinations on complaints of discrimination
that would otherwise be made by the Administrative
Governor under sections 268.206, 268.209,
268.305(i) and 268.709 of this part, settlement pursuant to section 268.305(f) of this part and determinations regarding attorney fees pursuant to section
268.501(e) of this part. The Staff Director for Management shall order such corrective measures, including such remedial actions as may be required by
subpart E of this part as he or she may consider
necessary, and including the recommendation for
such disciplinary action as is warranted by the
circumstances when an employee is found to have
engaged in a discriminatory practice.
(2) The Staff Director for Management shall review
the record on any complaint under this part before a
determination is made by the Board of Governors or
the Administrative Governor on the complaint and
make such recommendations as to the determination as he or she considers desirable, including any
recommendation for such disciplinary action as is
warranted by the circumstances when an employee
is found to have engaged in a discriminatory practice.
(3) When authorized by the Administrative Governor, the Staff Director for Management may make
changes in programs and procedures designed to
eliminate discriminatory practices and improve the
Board's program for equal employment opportunity.
(c) EEO Programs Director. The EEO Programs Director is appointed by the Board of Governors and
shall perform the following functions under this part:
(1) Administer the Board's equal employment opportunity program and advise the Board, the Administrative Governor and the Staff Director for Management with respect to the preparation of equal
employment opportunity plans, goals, objectives,
procedures, regulations, reports, and other matters
pertaining to the Board's program established under
section 268.202 of this part;
(2) Advise and consult with the Chairman of the
Board of Governors, when necessary, on any matter
pertaining to the Board's equal employment opportunity program and its administration;
(3) Evaluate from time to time the sufficiency of the
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Board's total program for equal employment opportunity and report to the Board of Governors, the
Administrative Governor and the Staff Director for
Management, with recommendations as to any improvement or correction needed, including remedial
or disciplinary action with respect to managerial,
supervisory or other employees who have failed in
their responsibilities;
(4) Recommend to the Staff Director for Management and the Administrative Governor changes in
programs and procedures designed to eliminate discriminatory practices and improve the Board's program for equal employment opportunity;
(5) Appoint a Federal Women's Program Manager, a
Hispanic Program Coordinator, a Disabled Persons
Program Coordinator, and such EEO Counselor(s)
as may be necessary to assist the EEO Programs
Director in carrying out the functions described in
this part. The EEO Programs Director shall ensure
such managers, coordinators and counselor(s) shall
receive full and proper training to implement their
duties and responsibilities under this part;
(6) Publicize to Board employees and applicants for
employment and post at all times on official Board
bulletin boards:
(i) The names, business telephone numbers, business addresses and the equal employment opportunity responsibilities of the Staff Director for
Management, the EEO Programs Director, the
Federal Women's Program Manager, the Hispanic Program Coordinator, and the Disabled
Persons Program Coordinator;
(ii) The names, business telephone numbers, business addresses of EEO Counselors, the segments
of the Board for which they are responsible, the
availability of EEO Counselors to counsel an
employee or applicant for employment who believes that he or she has been discriminated
against because of race, color, religion, sex, national origin, age, or physical or mental disability,
and the requirement that an employee or applicant
for employment must consult an EEO Counselor
as provided by sections 268.204 and 268.305(a) of
this part; and
(iii) The time limits for contacting EEO Counselors;
(7) Provide to each employee annually (and the
Division of Human Resources Management shall
provide to each applicant for employment) a copy of
a notice summarizing the general purposes of this
part and specifying where copies of this part can be
obtained. The EEO Programs Director shall ensure
that copies of the summary of this part are posted in
permanent locations in all Board facilities. The EEO
Programs Director shall, on the request of any
415
employee or applicant for employment provide that
employee or applicant for employment with a copy
of this part;
(8) Provide for counseling of aggrieved individuals
and for the receipt and processing of individual and
class complaints of discrimination;
(9) Provide for the receipt and investigation of
individual complaints of discrimination, subject to
sections 268.204 through 268.209 of this part, and
provide for the acceptance and processing and/or
dismissal of class action complaints in accordance
with section 268.305 of this part;
(10) Act as the Board's designee under section
268.305(c) of this part;
(11) Appoint any investigators as necessary to administer this part. The EEO Programs Director is
authorized to request the loan or assignment of any
investigators or administrative judges from any
agency as necessary to administer this part. The
EEO Programs Director shall obtain the concurrence of the Staff Director for Management for all
appointments of and reimbursements to investigators, whether from the private sector or otherwise,
which exceeds the EEO Programs Director's procurement authority;
(12) Assure that individual complaints are fairly and
thoroughly investigated and that final decisions of
the Board are issued in a timely manner in accordance with this part;
(13) Dismiss a complaint, or a portion of a complaint, pursuant to sections 268.206 and 268.305(c)
of this part;
(14) Suspend the complaint process when appropriate for any matter that is before the Merit Systems
Protection Board for a determination; and
(15) Make recommendations based upon investigative reports, hearings and EEOC decisions which
require the Board's final decision pursuant to section 268.209 of this part.
(d) EEO Counselors. The EEO Counselor(s) are appointed by the EEO Programs Director. EEO Counselors shall carry out the functions set forth in section
268.204 of this part.
(e) Federal Women's Program Manager. The EEO
Programs Director shall appoint a Federal Women's
Program Manager. The Federal Women's Program
Manager shall perform the following functions: Advise
the Board of Governors, the Administrative Governor,
the Staff Director for Management and the EEO Programs Director on matters affecting, and administer
the Board's program with respect to, the employment
and advancement of women.
(f) Hispanic Program Coordinator. The EEO Programs Director shall appoint a Hispanic Program Coordinator. The Hispanic Program Coordinator shall
416
Federal Reserve Bulletin • May 1994
perform the following functions: Advise the Board of
Governors, the Administrative Governor, the Staff
Director for Management and the EEO Programs
Director on matters affecting, and administer the
Board's program with respect to, the employment and
advancement of Hispanics.
(g) Disabled Persons Program Coordinator. The EEO
Programs Director shall appoint a Disabled Persons
Program Coordinator. The Disabled Persons Program
Coordinator shall perform the following functions:
Advise the Board of Governors, the Administrative
Governor, the Staff Director for Management and the
EEO Programs Director on matters affecting, and
administer the Board's program with respect to, the
employment and advancement of individuals with a
disability.
Subpart B—Board Program To Promote Equal
Opportunity
Section 268.201—General policy for equal
opportunity.
(a) It is the policy of the Board to provide equal
opportunity in employment for all persons, to prohibit
discrimination in employment because of race, color,
religion, sex, national origin, age or disability, and to
promote the full realization of equal opportunity in
employment through a continuing affirmative program.
(b) It is also the policy of the Board to ensure equal
opportunity for individuals with a disability in Board
programs and activities consistent with Section 504 of
the Rehabilitation Act (29 U.S.C. 794) and to provide
equal opportunity for all persons in accordance with
the Immigration Reform and Control Act of 1986, as
amended (8 U.S.C. 1324a).
(c) No person shall be subject to retaliation for opposing any practice prohibited by this part, or for participating in any stage of administrative or judicial proceedings under this part. The practices prohibited by
this part include those made unlawful by Title VII, the
ADEA, the Equal Pay Act (29 U.S.C. 206(d)) and the
Rehabilitation Act (29 U.S.C. 791).
Section 268.202—Board program for equal
employment opportunity.
(a) The Board, on the basis of a person's race, color,
religion, sex or national origin, shall not:
(1) Fail or refuse to hire or discharge any person, or
otherwise discriminate against any person with respect to his or her compensation, terms, conditions
or privileges of employment; or
(2) Limit, segregate, or classify its employees or
applicants for employment in any way which would
deprive or tend to deprive any person of employment opportunities or otherwise adversely affect the
person's status as an employee.
(b) (1) The Board, on the basis of a person's age, shall
not:
(i) Fail or refuse to hire or discharge any person or
otherwise discriminate against any person with
respect to his or her compensation, terms, conditions or privileges of employment;
(ii) Limit, segregate or classify its employees or
applicants for employment in any way which
would deprive or tend to deprive any person of
employment opportunities or otherwise adversely
affect the person's status as an employee or
applicant for employment;
(iii) Reduce the wage rate of any employee in
order to comply with paragraph (b) of this section;
(iv) Discriminate against any employee or applicant for employment because such employee or
applicant for employment has opposed any practice forbidden under paragraph (b) of this section,
or because such employee or applicant for employment has made a charge, testified, assisted or
participated in any manner in any investigation,
proceeding or litigation involving paragraph (b) of
this section or the ADEA; or
(v) Print or publish, or cause to be printed or
published, any notice or advertisement relating to
employment by the Board indicating any preference, limitation, specification or discrimination.
(2) An aggrieved person filing a complaint of discrimination on the basis of age under this subpart B
or section 268.305 of this part must have been at
least 40 years of age at the time the alleged discrimination occurred.
(c) The Board shall not discriminate among employees
on the basis of sex by paying wages to employees at a
rate less than the rate at which it pays wages to
employees of the opposite sex for equal work on jobs
the performance of which require equal skill, effort
and responsibility, and which are performed under
similar conditions, except where such payment is
made pursuant to:
(1) A seniority system;
(2) A merit system;
(3) A system which measures earnings by quantity
or quality or production; or
(4) A differential based on any factor other than sex
or otherwise not prohibited by this part.
(d) The Board shall not discriminate against qualified
individuals with a disability who are physically or
mentally disabled. The Board's program regarding
individuals with a disability in employment is fully
described in section 268.303 of this part.
(e) The Board has established, maintains and carries
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out a continuing affirmative program designed to promote equal opportunity and to identify and eliminate
discriminatory practices and policies. In support of its
program, the Board:
(1) Provides sufficient resources to administer its
equal opportunity program to ensure efficient and
successful operation;
(2) Provides for the prompt, fair and impartial processing of complaints in accordance with this part,
and consistent with guidance proffered by the Commission;
(3) Conducts a continuing campaign to eradicate
every form of prejudice or discrimination from the
Board's personnel policies, practices and working
conditions;
(4) Communicates the Board's equal employment
opportunity policy and program, and its employment needs to all sources of job candidates without
regard to race, color, religion, sex, national origin,
age, or physical or mental disability, and solicits
their recruitment assistance on a continuing basis;
(5) Reviews, evaluates and controls managerial and
supervisory performance in such a manner as to
ensure a continuing affirmative application and vigorous enforcement of the policy of equal employment opportunity, and provides orientation, training
and advice to managers and supervisors to assure
their understanding and implementation of the
Board's equal employment opportunity policy and
program;
(6) Takes appropriate disciplinary action against
employees who engage in discriminatory practices;
(7) Makes reasonable accommodation to the religious needs of employees and applicants for employment when those accommodations can be made
without undue hardship on the operations of the
Board;
(8) Makes reasonable accommodation to the known
physical or mental limitations of qualified applicants
and employees with disabilities unless the accommodation would impose an undue hardship on the
operations of the Board;
(9) Reassigns, in accordance with section 268.303(f)
of this part, nonprobationary employees who develop physical or mental limitations that prevent
them from performing the essential functions of
their positions even with reasonable accommodation;
(10) Provides recognition to employees, supervisors, managers and units demonstrating superior
accomplishment in equal employment opportunity;
(11) Has established a system for periodically evaluating the effectiveness of the Board's overall equal
employment opportunity effort;
(12) Provides the maximum feasible opportunity to
417
employees to enhance their skills through on-the-job
training, work-study programs and other training
measures so that they may perform at their highest
potential and advance in accordance with their
abilities;
(13) Informs its employees and applicants for employment of the Board's affirmative equal opportunity policy and program, and enlists the cooperation
of Board employees and other proper persons; and
(14) Participates at the community level with other
employers, with schools and universities and with
other public and private groups in cooperative action to improve employment opportunities and community conditions that affect employ ability.
(f) In order to implement its program, the Board:
(1) Develops the plans, procedures and regulations
necessary to carry out its program;
(2) Appraises its human resources management operations at regular intervals to assure their conformity with the Board's program and this part, consistent with guidance proffered by the Commission;
(3) Assigns equal employment opportunity responsibilities as appropriate to the Administrative Governor and the Staff Director for Management, and
designates an EEO Programs Director, EEO Counselors, a Federal Women's Program Manager, a
Hispanic Program Coordinator and a Disabled Persons Program Coordinator, and clerical and administrative support, to carry out the functions of this
part in all divisions and offices at the Board;
(4) Makes written materials available to all employees and applicants for employment informing them
of the variety of equal employment opportunity
programs, and administrative and judicial remedial
procedures available to them, and prominently posts
such written materials in its human resource management and EEO offices, and throughout the workplace;
(5) Ensures that full cooperation is provided by all
Board employees to EEO Counselors, Board equal
employment opportunity personnel and to investigators in the processing and resolution of pre-complaint matters and complaints filed with the Board,
and that cooperation is provided to the Commission
in connection with review of Board decisions, including granting the Commission routine access to
relevant records of the Board as appropriate and
consistent with applicable law, regulations and policies of the Board; and
(6) Publicizes to all employees and posts at all times
the names, business telephone numbers and business addresses of the EEO Counselors, a notice of
the time limits and necessity of contacting an EEO
Counselor before filing a complaint, and the telephone numbers and addresses of the Staff Director
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Federal Reserve Bulletin • May 1994
for Management, EEO Programs Director, Federal
Women's Program Manager, Hispanic Program Coordinator and Disabled Persons Program Coordinator.
Section 268.203—Complaints of discrimination
covered under this part.
(a) Individual and class complaints of employment
discrimination and retaliation prohibited by section
268.202(a) (discrimination on the basis of race, color,
religion, sex and national origin), section 268.202(b)
(discrimination on the basis of age when the aggrieved
person is at least 40 years of age), section 268.303(a)
(discrimination on the basis of a disability), or section
268.202(c) (sex-based wage discrimination) of this part
shall be processed in accordance with this part. Complaints alleging retaliation prohibited under this part
are considered to be complaints of discrimination for
purposes of this part.
(b) Except as set forth in section 268.304 and in
subpart G of this part, this part applies to all Board
employees and applicants for employment at the
Board, and to all Board personnel policies or practices
affecting Board employees or applicants for employment at the Board.
Section 268.204—Pre-complaint processing.
(a) Aggrieved persons who believe they have been
discriminated against on the basis of race, color,
religion, sex, national origin, age or disability must
consult an EEO Counselor prior to filing a complaint in
order to try to informally resolve the matter.
(1) An aggrieved person must initiate contact with
an EEO Counselor within 45 days of the date of the
matter alleged to be discriminatory or, in the case of
a personnel action, within 45 days of the date that
the action was communicated to the aggrieved person.
(2) The Board shall extend the 45-day time limit in
paragraph (a)(1) of this section when the individual
shows that he or she was not notified of the time
limits and was not otherwise aware of them, that he
or she did not know and reasonably should not have
known that the discriminatory matter or personnel
action occurred, that despite due diligence he or she
was prevented by circumstances beyond his or her
control from contacting an EEO Counselor within
the time limits, or for other reasons considered
sufficient by the Board.
(b) At the initial counseling session, EEO Counselors
must advise individuals in writing of their rights and
responsibilities, including the right to request a hearing after the investigation by the Board, the right to
file a notice of intent to sue pursuant to section
268.301 (a) of this part and to file a lawsuit alleging a
violation of the ADEA instead of an administrative
complaint of age discrimination under this part, the
duty to mitigate damages, administrative and court
time frames, and that only the matter(s) raised in
pre-complaint counseling (or issues like or related to
issues raised in pre-complaint counseling) may be
alleged in a subsequent complaint filed with the
Board. EEO Counselors must advise individuals of
their duty to keep the Board informed of their current
address, to serve copies of requests for review by the
Commission on the Board, and to keep the Commission informed of their current address in connection
with any review of a Board action. The notice
required by paragraphs (d) and (e) of this section
shall include a notice of the right to file a class
complaint. If the aggrieved person informs an EEO
Counselor that he or she wishes to file a class
complaint, the EEO Counselor shall explain the class
complaint procedures and the responsibilities of the
agent of the class.
(c) EEO Counselors shall conduct counseling activities in accordance with instructions promulgated by
the EEO Programs Director, which shall be consistent
with the counseling guidelines contained in the Commission's "EEO Management Directives For 29
C.F.R. Part 1614". When advised that a complaint has
been filed by an aggrieved person, the EEO Counselor
shall submit a written report within 15 calendar days to
the EEO Programs Director and to the aggrieved
person concerning the issues discussed and actions
taken during counseling.
(d) Unless the aggrieved person agrees to a longer
counseling period under paragraph (e) of this section,
the EEO Counselor shall conduct the final interview
with the aggrieved person within 30 days of the date
the aggrieved person brought the matter to the EEO
Counselor's attention. If the matter has not been
resolved, the aggrieved person shall be informed in
writing by the EEO Counselor, not later than the 30th
day after contacting the EEO Counselor, of the right to
file a discrimination complaint with the Board. This
notice shall inform the complainant of the right to file
a discrimination complaint within 15 calendar days of
receipt of the notice, of the appropriate official with
whom to file a complaint and of the complainant's duty
to assure that the EEO Programs Director is informed
immediately if the complainant retains counsel or a
representative.
(e) Prior to the end of the 30-day period, the aggrieved
person may agree in writing with the Board to postpone the final interview and extend the counseling
period for an additional period of no more than 60
days. If the matter has not been resolved before the
Legal Developments
conclusion of the agreed extension, the notice described in paragraph (d) of this section shall be issued.
(f) In the event the aggrieved person believes that
he/she has been discriminated against and agrees to
participate in an established Board alternative dispute
resolution procedure, the pre-complaint processing
period of this section will be 90 days. If the matter has
not been resolved before the 90th day, the notice
described in paragraph (d) of this section shall then be
issued.
(g) The EEO Counselor shall not attempt in any way to
restrain the aggrieved person from filing a complaint.
The EEO Counselor shall not reveal the identity of an
aggrieved person who consulted the EEO Counselor,
except when authorized to do so by the aggrieved
person, or until the Board has received a discrimination complaint under this part from that person involving the same matter.
Section 268.205—Individual complaints.
(a) A complaint alleging that the Board discriminated
against the complainant must be filed with the Board.
(b) A complaint must be filed within 15 calendar days
of receipt of the notice required by sections
268.204(d), (e) or (f) of this part.
(c) A complaint must contain a signed statement from
the person claiming to be aggrieved or that person's
attorney. This statement must be sufficiently precise to
identify the aggrieved person and to describe generally
the action(s) or practice(s) that form the basis of the
complaint. The complaint must also contain a telephone number and address where the complainant or
the complainant's representative can be contacted.
(d) The EEO Programs Director shall acknowledge
receipt of a complaint in writing and inform the complainant of the date on which the complaint was filed.
Such acknowledgement shall also advise the complainant that:
(1) The complainant has the right to file a request for
review with the Commission with regard to the
Board's final decision or dismissal of all or a portion
of a complaint ; and
(2) The Board is required to conduct a complete and
fair investigation of the complaint within 180 days of
the filing of the complaint unless the parties agree in
writing to extend the period.
Section 268.206—Dismissals of complaints.
(a) The Board shall dismiss a complaint or a portion of
a complaint:
(1) That fails to state a claim under sections 268.203
and 268.205(c) of this part, or states the same claim
419
that is pending before or has been decided by the
Board or the Commission;
(2) That fails to comply with the applicable time
limits contained in sections 268.204, 268.205(b) and
268.305(b) of this part, unless the Board extends the
time limits in accordance with section 268.604(c) of
this part, or that raises a matter that has not been
brought to the attention of an EEO Counselor and is
not like or related to a matter that has been brought
to the attention of an EEO Counselor;
(3) That is the basis of a pending civil action in a
United States District Court in which the complainant is a party, provided that at least 180 days have
passed since the filing of the administrative complaint, or that was the basis of a civil action decided
by a United States District Court in which the
complainant was a party;
(4) That is moot or alleges that a proposal to take a
personnel action, or other preliminary step to taking
a personnel action, is discriminatory;
(5) Where the complainant cannot be located, provided that reasonable efforts have been made to
locate the complainant and the complainant has not
responded within 15 calendar days to a notice of
proposed dismissal sent to his or her last known
address;
(6) Where the Board has provided the complainant
with a written request to provide relevant information or otherwise proceed with the complaint, and
the complainant has failed to respond to the request
within 15 calendar days of its receipt or the complainant's response does not address the Board's
request, provided that the request included a notice
of the proposed dismissal. Instead of dismissing for
failure to cooperate, the complaint may be adjudicated if sufficient information for that purpose is
available; or
(7) If, prior to the issuance of the notice required by
section 268.207(f) of this part, the complainant refuses within 30 days of receipt of an offer of settlement to accept the Board's offer of full relief containing a certification from the Board's Staff
Director for Management, the General Counsel or a
designee reporting directly to the Staff Director for
Management or General Counsel (after consulting
with the EEO Programs Director) that the offer
constitutes full relief, provided that the offer gave
notice that failure to accept would result in dismissal
of the complaint. An offer of full relief under this
paragraph (a)(7) is the appropriate relief in section
268.501 of this part.
(b) The Board shall inform the complainant of the right
to file a request for review with the Commission with
regard to the dismissal of the individual complaint
pursuant to section 268.401 of this part, or to file a civil
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Federal Reserve Bulletin • May 1994
action. A copy of EEOC Form 573, Notice of Appeal/
Petition, shall be attached to the Board's decision to
dismiss an individual complaint under this section.
Section 268.207—Investigation of complaints.
(a) The investigation of individual complaints shall be
conducted by an investigator appointed by the EEO
Programs Director.
(b) Consistent with guidance proffered by the Commission, the Board, through the EEO Programs Director,
shall develop a complete and impartial factual record
upon which to make findings on the matters raised by
the written complaint. The investigator may use an
exchange of letters or memoranda, interrogatories,
investigations, fact-finding conferences or any other
fact-finding methods that efficiently and thoroughly
address the matters at issue. The EEO Programs
Director may incorporate alternative dispute resolution techniques into the investigation in order to promote early resolution of complaints.
(c) The procedures in paragraphs (c)(1) through (4) of
this section apply to the investigation of complaints:
(1) The complainant, the Board and any employee of
the Board shall produce such documentary and
testimonial evidence as the investigator deems necessary, consistent with applicable laws, regulations
and policies of the Board.
(2) The investigator may administer oaths. Statements of witnesses shall be made under oath or
affirmation or, alternatively, by written statement
under penalty of perjury.
(3) When the complainant, or the Board or its
employees, fail without good cause shown to respond fully and in timely fashion to requests for
documents, records, comparative data, statistics,
affidavits or the attendance of witness(es), the investigator may note in the investigative record that the
Board when rendering a final decision should, or the
Commission on review may, in appropriate circumstances:
(i) Draw an adverse inference that the requested
information, or the testimony of the requested
witness, would have reflected unfavorably on the
party refusing to provide the requested information;
(ii) Consider the matters to which the requested
information or testimony pertains to be established in favor of the opposing party;
(iii) Exclude other evidence offered by the party
failing to produce the requested information or
witness;
(iv) Issue a decision fully or partially in favor of
the opposing party; or
(v) Take such other actions as it deems appropriate.
(4) If documentary or testimonial evidence is needed
by the investigator, and such documentary evidence
is known to be contained in the files of another
federal agency, or the testimony of an employee of
another federal agency is needed, the EEO Programs Director shall, if necessary, contact the Commission for assistance in obtaining such documentary or testimonial evidence.
(d) The investigation shall be conducted by an investigator with appropriate security clearances.
(e) The Board shall complete its investigation within
180 days of the date of the filing of an individual
complaint or within the time period contained in the
determination of the Commission on review of a
dismissal pursuant to section 268.206 of this part. By
written agreement within those time periods, the complainant and the Board may voluntarily extend the
time period for not more than an additional 90 days.
The Board may unilaterally extend the time period or
any period of extension for not more than 30 days
where it must sanitize a complaint file that may contain
confidential information of the Board under 12 C.F.R.
Part 261, or other privileged information of the Board,
provided the Board notifies the complainant of the
extension.
(f) Within 180 days from the filing of the complaint,
within the time period contained in a determination of
the Commission's Office of Federal Operations on
review of a dismissal, or within any period of extension provided for in paragraph (e) of this section, the
Board shall notify the complainant that the investigation has been completed, shall provide the complainant with a copy of the investigative file, and shall
notify the complainant that, within 30 days of the
receipt of the investigative file, the complainant has
the right to request a hearing before an administrative
judge from the Commission or may receive an immediate final decision pursuant to section 268.209 of this
part from the Board. In the absence of the required
notice, the complainant may request a hearing under
section 268.208 of this part at any time after 180 days
has elapsed from the filing of the complaint.
Section 268.208—Hearings.
(a) Requests. When a complainant requests a hearing,
the EEO Programs Director shall request the Commission to appoint an administrative judge to conduct a
hearing in accordance with this section. Any hearing
will be conducted by an administrative judge or hearing examiner with appropriate security clearances.
Where the administrative judge determines that the
complainant is raising or intends to pursue issues like
Legal Developments
or related to those raised in the complaint, but which
the Board has not had an opportunity to address, the
administrative judge shall remand any such issue for
counseling in accordance with section 268.204 of this
part or for such other processing as may be ordered by
the administrative judge.
(b) Discovery. The administrative judge shall notify
the parties of the right to seek discovery prior to the
hearing and may issue such discovery orders as are
appropriate. Unless the parties agree in writing concerning the methods and scope of discovery, the party
seeking discovery shall request authorization from the
administrative judge prior to commencing discovery.
Both parties are entitled to reasonable development of
evidence on matters relevant to the issues raised in the
complaint, but the administrative judge may reasonably limit the quantity and timing of discovery. Evidence may be developed through interrogatories, depositions, and requests for admissions, stipulations or
production of documents. It shall be grounds for
objection to producing evidence that the information
sought by either party is irrelevant, overburdensome,
repetitious, privileged, or that production would be
unlawful.
(c) Conduct of hearing. The Board shall provide for
the attendance at a hearing of all Board employees
approved as witnesses by an administrative judge.
Attendance at hearings will be limited to persons
determined by the administrative judge to have direct
knowledge relating to the complaint. Hearings are part
of the investigative process and are thus closed to the
public. The administrative judge shall have the power
to regulate the conduct of a hearing, limit the number
of witnesses where testimony would be repetitious,
and exclude any person from the hearing for contumacious conduct or misbehavior that obstructs the hearing. The administrative judge shall receive into evidence information or documents relevant to the
complaint. Rules of evidence shall not be applied
strictly, but the administrative judge shall exclude
irrelevant or repetitious evidence. The administrative
judge or the Commission may refer to the Disciplinary
Committee of the appropriate Bar Association any
attorney or, upon reasonable notice and an opportunity to be heard, suspend or disqualify from representing complainants or agencies in hearings raising claims
of discrimination any representative who refuses to
follow the orders of an administrative judge, or who
otherwise engages in improper conduct. The Board in
such circumstances may take whatever action it deems
appropriate to suspend or disqualify any such attorney
or representative from appearing or practicing before
the Board.
(d) Evidentiary procedures. The procedures in para-
421
graphs (d)(1) through (3) of this section apply to
hearings of complaints:
(1) The complainant, the Board and any employee of
the Board shall produce such documentary and
testimonial evidence as the administrative judge
deems necessary, consistent with applicable laws,
regulations and policies of the Board. If documentary or testimonial evidence is needed for the hearing, and such documentary evidence is known to be
contained in the files of another federal agency, or if
the testimony of an employee of another federal
agency is needed, then the administrative judge may
seek assistance from appropriate sources in obtaining such documentary or testimonial evidence for
the hearing.
(2) Administrative judges are authorized to administer oaths. Statements of witnesses shall be made
under oath or affirmation or, alternatively, by written statement under penalty of perjury.
(3) When the complainant, or the Board or its
employees fail without good cause shown to respond fully and in timely fashion to requests for
documents, records, comparative data, statistics,
affidavits, or the attendance of witness(es), the
administrative judge may, in appropriate circumstances:
(i) Draw an adverse inference that the requested
information, or the testimony of the requested
witness, would have reflected unfavorably on the
party refusing to provide the requested information;
(ii) Consider the matters to which the requested
information or testimony pertains to be established in favor of the opposing party;
(iii) Exclude other evidence offered by the party
failing to produce the requested information or
witness;
(iv) Issue a finding fully or partially in favor of the
opposing party ; or
(v) Take such other actions as appropriate.
(e) Findings and conclusions without hearing. (1) If a
party believes that some or all material facts are not
in genuine dispute and there is no genuine issue as to
credibility, the party may, at least 15 calendar days
prior to the date of the hearing or at such earlier time
as required by the administrative judge, file a statement with the administrative judge prior to the
hearing setting forth the fact or facts and referring to
the parts of the record relied on to support the
statement. The statement must demonstrate that
there is no genuine issue as to any such material
fact. The party shall serve the statement on the
opposing party.
(2) The opposing party may file an opposition within
15 calendar days of receipt of the statement in
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Federal Reserve Bulletin • May 1994
paragraph (e)(1) of this section. The opposition
may refer to the record in the case to rebut the
statement that a fact is not in dispute or may file an
affidavit stating that the party cannot, for reasons
stated, present facts to oppose the request. After
considering the submissions, the administrative
judge may order that discovery be permitted on the
fact or facts involved, limit the hearing to the
issues remaining in dispute, issue findings and
conclusions without a hearing or make such other
ruling as is appropriate.
(3) If the administrative judge determines upon his
or her own initiative that some or all facts are not
in genuine dispute, he or she may, after giving
notice to the parties and providing them an opportunity to respond in writing within 15 calendar
days, issue an order limiting the scope of the
hearing or issue findings and conclusions without
holding a hearing.
(£) Record of hearing. The hearing shall be recorded
and the Board shall arrange and pay for verbatim
transcripts. All documents submitted to, and accepted
by, the administrative judge at the hearing shall be
made part of the record of the hearing. If the Board
submits a document that is accepted, it shall furnish a
copy of the document to the complainant. If the
complainant submits a document that is accepted, the
administrative judge shall make the document available to the Board's representative for reproduction,
(g) Findings and conclusions. Unless the administrative judge makes a written determination that good
cause exists for extending the time for issuing findings of fact and conclusions of law, within 180 days
of a request for a hearing being received by the
Commission, an administrative judge shall issue findings of fact and conclusions of law on the merits of
the complaint, and shall order appropriate relief
where discrimination is found with regard to the
matter that gave rise to the complaint. The administrative judge shall send copies of the entire record,
including the transcript, and the findings and conclusions to the parties by certified mail, return receipt
requested. Within 60 days of receipt of the findings
and conclusions, the Board may reject or modify the
findings and conclusions or the relief ordered by the
administrative judge and issue a final decision in
accordance with section 268.209 of this part. If the
Board does not, within 60 days of receipt of the
findings and conclusions, accept, reject or modify the
findings and conclusions of the administrative judge,
then the findings and conclusions of the administrative judge and the relief ordered shall become the
final decision of the Board and the Board shall notify
the complainant of the final decision in accordance
with section 268.209 of this part.
Section 268.209—Final decisions.
(a) The EEO Programs Director shall notify the Board
of Governors when a complaint is ripe for decision
under this section. At the request of any member of
the Board of Governors made within 3 business days
of such notice, the Board of Governors shall make the
decision on the complaint. If no such request is made,
the Administrative Governor, or the Staff Director for
Management if he or she is delegated the authority to
do so under section 268.103(a)(2) of this part, shall
make the decision on the complaint.
(b) The Board shall issue a final decision:
(1) Within 60 days of receiving notification that a
complainant has requested an immediate decision in
accordance with section 268.207(f) of this part;
(2) Within 60 days of the end of the 30-day period for
the complainant to request a hearing or an immediate final decision where the complainant has not
requested either a hearing or a final decision as
provided by section 268.207(f) of this part;
(3) Within 60 days of receiving the findings and
conclusions of an administrative judge under section
268.208(g) of this part;
(4) Within 30 days of receiving the written recommendation of an administrative judge to accept or
reject the class complaint pursuant to section
268.305(c)(7) of this part;
(5) If it decides to vacate an agreement of resolution
upon the selection of a member of the class pursuant
to section 268.305(f)(4) of this part;
(6) Within 60 days of receiving findings and recommendations of an administrative judge following a
class action hearing pursuant to the procedures
stated under section 268.305(i) of this part;
(7) Within 90 days of receipt of a written claim by a
class member pursuant to section 268.305(k)(3) of
this part; or
(8) Within 30 days of receiving the EEOC decision
pursuant to section 268.405(c) of this part.
(c) The final decision of the Board shall consist of
findings by the Board on the merits of each issue in the
complaint, or following review by the Commission,
the reason or reasons for acceptance, modification or
rejection of each finding in an EEOC decision. When
discrimination is found and indicated in the final
decision, appropriate remedies and relief in accordance with subpart E of this part will be addressed in
the final decision.
(d) The final decision shall contain information regarding the right to file a request for review with the
Commission of final decisions pursuant to paragraphs
(b)(1) through (7) of this section and the procedures for
filing a request for review with the Commission, the
right to file a civil action in a United States District
Legal Developments
Court, including the name of the proper defendant in
any such lawsuit, and the applicable time limits for
reviews and lawsuits. A copy of EEOC Form 573,
Notice of Appeal/Petition, shall be attached to the final
decision pursuant to paragraphs (b)(1) through (7) of
this section.
Subpart C—Provisions Applicable to Particular
Complaints
Section 268.301—Age Discrimination in
Employment Act.
(a) As an alterative to filing a complaint of discrimination on the basis of age under this part, an aggrieved
person may file a civil action in a United States District
Court against the Board of Governors. The aggrieved
person must give notice of his or her intent to file such
action with the Commission, with a copy to the
Board's EEO Programs Director, not less than 30 days
prior to filing such civil action. The notice must be filed
in writing with the Commission: Federal Sector Programs, Equal Employment Opportunity Commission,
1801 L Street, NW, Washington, DC 20507, within 180
days of the occurrence of the alleged unlawful practice.
(b) The Commission may exempt a position from the
provisions of the ADEA if the Commission establishes
a maximum age requirement for the position on the
basis of a determination that age is a bona fide occupational qualification necessary to the performance of
the duties of the position. The Board may adopt a
Commission exemption for inclusion under this section.
(c) When an aggrieved person has filed a complaint
under section 268.205 or section 268.305 of this part
alleging age discrimination, administrative remedies
will be considered to be exhausted for purposes of
filing, a civil action:
(1) 180 days after the filing of an individual complaint if the Board has not issued a final decision and
the complainant has not filed a request for review by
the Commission, or 180 days after the filing of a
class complaint if the Board has not issued a final
decision;
(2) After the issuance of a final decision under
section 268.209 of this part on an individual or class
complaint if the individual has not filed a request for
review with the Commission; or
(3) After the issuance of a final decision under
section 268.209(a)(8) following an EEOC decision
under section 268.405 of this part, or 180 days after
the filing of a request for review under subpart D of
this part if the Commission has not issued an EEOC
decision.
423
Section 268.302—Equal Pay Act.
(a) Any employee who believes he or she has received
unequal pay due to discrimination based on sex may
seek recovery of withheld wages by filing a complaint
of discrimination under subpart B of this part, if a
complaint of individual discrimination, or under section 268.305 of this part if a class action, except that
civil actions shall be filed pursuant to paragraph (b) of
this section.
(b) A complainant, agent of the class or individual
class claimant under this section may file a civil action
against the Board pursuant to section 268.506 of this
part in a United States District Court should the
complainant, agent of the class or individual class
claimant believe he or she has been denied equal pay.
(c) The Board shall preserve any records that are made
in the regular course of business which relate to the
payment of wages, wage rates, job evaluations, job
descriptions, merit systems, seniority systems, description of practices, or other matters which describe
or explain the basis for payment of any wage differential to employees of the opposite sex, and which may
be pertinent to the determination of whether such
differential is based on a factor other than sex. Such
records are to be kept for at least 3 years.
(d) Wages withheld in violation of section 268.202(c) of
this part have the status of unpaid minimum wage or
unpaid overtime compensation.
Section 268.303—Rehabilitation Act.
(a) General policy. The Board shall give full consideration to the hiring, placement and advancement of
qualified individuals with a disability who are physically or mentally disabled. The Board shall be a model
employer of individuals with a disability. The Board
shall not discriminate against individuals with a disability who are physically or mentally disabled.
(b) Reasonable accommodation. (1) The Board shall
make reasonable accommodation to the known
physical or mental limitations of an employee or
applicant for employment who is a qualified individual with a disability unless the Board can demonstrate that the accommodation would impose an
undue hardship on its operations.
(2) Reasonable accommodation may include, but
shall not be limited to:
(i) Making facilities readily accessible to and
usable by individuals with a disability; and
(ii) Job restructuring, part-time or modified work
schedules, acquisition or modification of equipment or devices, appropriate adjustment or modification of examinations, the provision of readers
and interpreters, and other similar actions.
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Federal Reserve Bulletin • May 1994
(3) In determining whether, pursuant to paragraph
(b)(1) of this section, an accommodation would
impose an undue hardship on the operation of the
Board, factors to be considered include:
(i) The overall size of the Board's operations with
respect to the number of employees, number and
type of facilities and size of budget;
(ii) The type of Board operation, including the
composition and structure of the Board's work
force; and
(iii) The nature and the cost of the accommodation.
(c) Employment criteria. (1) The Board shall not make
use of any employment test or other selection criterion that screens out or tends to screen out qualified
individuals with a disability or any class of individuals with a disability unless:
(i) The test score or other selection criterion is
job-related for the position in question and consistent with business necessity; and
(ii) There are no available alterative job-related
tests that do not screen out or tend to screen out
as many individuals with a disability.
(2) The Board shall select and administer tests
concerning employment so as to ensure that, when
administered to an employee or applicant for employment who has a disability that impairs sensory,
manual, or speaking skills, the test results accurately reflect the employee's or applicant's ability to
perform the position or type of position in question
rather than reflecting the employee's or applicant's
impaired sensory, manual, or speaking skill (except
where those skills are the factors that the test
purports to measure).
(d) Pre-employment inquiries. (1) Except as provided
in paragraphs (d)(2) and (3) of this section, the Board
shall not conduct a pre-employment medical examination and shall not make pre-employment inquiry
of an applicant as to whether the applicant is an
individual with a disability or as to the nature or
severity of a disability. The Board may, however,
make pre-employment inquiry into an applicant's
ability to meet the essential functions of the job, or
the medical qualification requirements if applicable,
with or without reasonable accommodation, of the
position in question, i.e., the minimum abilities
necessary for safe and efficient performance of the
duties of the position in question.
(2) Nothing in this section shall prohibit the Board
from conditioning an offer of employment on the
results of a medical examination conducted prior to
the employee's entrance on duty, provided that:
(i) All entering employees are subjected to such an
examination regardless of disability or when the
pre-employment medical questionnaire used for
positions that do not routinely require medical
examination indicates a condition for which further examination is required because of the jobrelated nature of the condition; and
(ii) The results of such an examination are used
only in accordance with the requirements of this
part.
(3) Nothing in this section shall be construed to
prohibit the gathering of pre-employment medical
information for the purpose of hiring individuals
with a disability.
(4) To enable and evaluate affirmative action to hire,
place or advance individuals with a disability, the
Board may invite employees and applicants for
employment to indicate whether and to what extent
they are disabled, if:
(i) The Board states clearly on any written questionnaire used for this purpose or makes clear
orally if no written questionnaire is used, that the
information requested is intended for use solely in
conjunction with affirmative action; and
(ii) The Board states clearly that the information is
being requested on a voluntary basis, that refusal
to provide it will not subject the employee or
applicant for employment to any adverse treatment, and that it will be used only in accordance
with this part.
(5) Information obtained in accordance with this
section as to the medical condition or history of the
employee or applicant for employment shall be kept
confidential except that:
(i) Managers, selecting officials, and others involved in the selection process or responsible for
affirmative action may be informed that the employee or applicant for employment is an individual with a disability;
(ii) Supervisors and managers may be informed
regarding necessary accommodations;
(iii) First aid and safety personnel may be informed, where appropriate, if the condition might
require emergency treatment;
(iv) Government officials investigating compliance
with laws, regulations, and instructions relevant
to equal employment opportunity and affirmative
action for individuals with a disability shall be
provided information upon request; and
(v) Statistics generated from information obtained
may be used to manage, evaluate, and report on
equal employment opportunity and affirmative
action programs.
(e) Physical access to buildings. (1) The Board shall
not discriminate against employees or applicants for
employment who are qualified individuals with a
disability due to the inaccessibility of its facility.
(2) It shall be the policy of the Board to comply with
Legal Developments
the provisions of the Rehabilitation Act, the Architectural Barriers Act of 1968 (42 U.S.C. 4151 et seq.)
and the Americans With Disabilities Act of 1990
(42 U.S.C. 12183 and 12204).
(f) Reassignment. When a nonprobationary employee becomes unable to perform the essential
functions of his or her position even with reasonable
accommodation due to a disability, the Board shall
offer to reassign the individual to a funded vacant
position at the same grade level, the essential functions of which the employee would be able to perform with reasonable accommodation if necessary
unless the reassignment would impose an undue
hardship on the operation of the Board. In the
absence of a position at the same grade level, an offer
of reassignment to a vacant position at the highest
available grade level below the employee's current
grade level shall be made, but availability of such a
vacancy shall not affect the employee's entitlement,
if any, to disability retirement pursuant to any retirement plan in which the employee is enrolled. If the
Board has already posted a notice or announcement
seeking applications for a specific vacant position at
the time the Board has determined that the nonprobationary employee is unable to perform the essential functions of his or her position even with reasonable accommodation, then the Board does not have
an obligation under this section to offer to reassign
the individual to that position, but the Board shall
consider the individual on an equal basis with those
who applied for the position.
(g) Exclusion from definition of "individual with a
disability":
(1) Illegal use of drugs, (i) The term "individual with
a disability" shall not include an individual who is
currently engaging in the illegal use of drugs,
when the Board acts on the basis of such use. The
term "drug" means a controlled substance, as
defined in Schedules I through V of Section 202 of
the Controlled Substances Act (21 U.S.C. 812).
The term "illegal use of drugs" means the use of
drugs, the possession or distribution of which is
unlawful under the Controlled Substances Act,
but does not include the use of a drug taken under
supervision by a licensed health care professional,
or other uses authorized by the Controlled Substances Act or other provisions of federal law.
This exclusion, however, does not exclude an
individual with a disability who:
(A) Has successfully completed a supervised
drug rehabilitation program and is no longer
engaging in the illegal use of drugs, or has
otherwise been rehabilitated successfully and is
no longer engaging in such use;
(B) Is participating in a supervised rehabilita-
425
tion program and is no longer engaging in such
use; or
(C) Is erroneously regarded as engaging in such
use, but is not engaging in such use.
(ii) Except that the Board may adopt and administer reasonable policies or procedures, including
but not limited to drug testing, designed to ensure
that an individual described in paragraphs (g)(l)(i)
(A) and (B) of this section is no longer engaging in
the illegal use of drugs.
(2) Alcoholism. The term "individual with a disability" does not include an employee who is an
alcoholic whose current use of alcohol prevents
the employee from performing the duties of his or
her job, or whose employment by reason of such
current alcohol use, would constitute a direct
threat to the property or safety of others. In this
regard, alcoholics shall meet the same performance and conduct standards to which all other
Board employees must satisfy, even if an unsatisfactory performance is related to the alcoholism of
the employee.
(3) Infectious and communicable diseases. If an
individual with a disability has one of the listed
diseases as determined by the Secretary of Health
and Human Services under the Americans with
Disabilities Act (42 U.S.C. 12113 (d)(1)) and works
in or applies for a position at the Board in food
handling, the Board will seek reasonable accommodation under paragraph (b) of this section to
eliminate the risk of transmitting the disease
through the handling of food. If the individual with
a disability is a nonprobationary employee and a
reasonable accommodation cannot be made, the
provisions contained in paragraph (f) of this section shall apply.
Section 268.304—Employment of noncitizens.
(a) Definitions. The definitions contained in this paragraph (a) shall apply only to this section.
(1) Intending citizen means a citizen or national of
the United States, or a noncitizen who:
(i) Is a protected individual as defined in 8 U.S.C.
1324b(a)(3); and
(ii) Has evidenced an intention to become a
United States citizen.
(2) Noncitizen means any person who is not a citizen
of the United States.
(3) Sensitive information means:
(i) (A) Information that is classified for national
security purposes under Executive Order No.
10450 (3 C.F.R., 1949-1953. Comp., p. 936),
including any amendments or superseding or-
426
Federal Reserve Bulletin • May 1994
ders that the President of the United States may
issue from time to time;
(B) Information that consists of confidential
supervisory information of the Board, as defined in 12 C.F.R. 261.2(b); or
(C) Information the disclosure or premature disclosure of which to unauthorized persons may
be reasonably likely to impair the formulation or
implementation of monetary policy, or cause
unnecessary or unwarranted disturbances in securities or other financial markets, such that
access to such information must be limited to
persons who are loyal to the United States.
(ii) For purposes of paragraph (a)(3)(i)(C) of this
section, information may not be deemed sensitive information merely because it would be
exempt from disclosure under the Freedom of
Information Act (5 U.S.C. 552), but sensitive
information must be information the unauthorized disclosure or premature disclosure of
which may be reasonably likely to impair important functions or operations of the Board.
(4) Sensitive position means any position of employment in which the employee will be required to have
access to sensitive information.
(b) Prohibitions —(1) Unauthorized aliens. The Board
shall not hire any person unless that person is able to
satisfy the requirements of Section 101 of the Immigration Reform and Control Act of 1986.
(2) Employment in sensitive positions. The Board
shall not hire any person to a sensitive position
unless such person is a citizen of the United States
or, if a noncitizen, is an intending citizen.
(3) Preference. Consistent with the Immigration
Reform and Control Act of 1986, and other applicable law, applicants for employment at the Board
who are citizens of the United States shall be
preferred over equally qualified applicants who are
not United States citizens.
(c) Exception. The prohibition of paragraph (b)(2) of
this section does not apply to hiring for positions for
which a security clearance is required under Executive Order No. 10450, including any subsequent
amendments or superseding orders that the President
of the United States may issue from time to time,
where the noncitizen either has or can obtain the
necessary security clearance. Any offer of employment authorized by this paragraph (c) shall be contingent upon receipt of the required security clearance in the manner prescribed by law.
(d) Applicability. This section applies to employment
in all positions at the Board and to employment by
Federal Reserve Banks of examiners who must be
appointed, or selected and approved by the Board
pursuant to 12 U.S.C. 325, 326, 338, or 625.
Section 268.305—Class complaints.
(a) Pre-complaint processing. An employee or applicant for employment who wishes to file a class complaint must seek counseling and be counseled in accordance with the procedures under section 268.204 of
this part.
(b) Filing and presentation of a class complaint. (1) A
class complaint must be signed by the agent of the
class or representative, and must identify the personnel policy or practice adversely affecting the
class as well as the specific action or matter affecting
the agent of the class.
(2) The complaint must be filed with the Board not
later than 15 calendar days after the agent of the
class receives a notice from the EEO Counselor of
the right to file a class complaint.
(3) The complaint shall be processed promptly by
the Board, and the parties shall cooperate and shall
proceed at all times without undue delay.
(c) Acceptance or dismissal. (1) Within 30 days of the
Board's receipt of a class complaint, the Board shall
designate a representative who shall monitor the
class complaint on behalf of the Board and who shall
be one of the individuals referenced in section
268.202(e)(3) of this part, and forward the class
complaint, along with a copy of the EEO Counselor's report and any other information pertaining to
timeliness or other relevant circumstances related to
the class complaint, to the Commission's Office of
Federal Operations. The Commission shall assign
the class complaint to an administrative judge or
complaints examiner who shall, if required, have a
proper security clearance. The administrative judge
may require the agent of the class or the Board to
submit additional information relevant to the complaint.
(2) The administrative judge may recommend that
the Board dismiss the class complaint, or any portion, for any of the reasons listed in section 268.206
of this part, or because it does not meet the prerequisites of a class complaint under section 268.102(g)
of this part.
(3) If an allegation of discrimination in the class
complaint is not included in the EEO Counselor's
report, the administrative judge shall afford the
agent of the class 15 calendar days to state whether
the matter was discussed with the EEO Counselor
and, if not, explain why it was not discussed. If the
explanation is not satisfactory, the administrative
judge shall recommend that the Board dismiss the
allegation under section 268.206 of this part. If the
explanation is satisfactory, the administrative judge
shall refer the allegation to the Board for further
counseling by an EEO Counselor with the agent of
Legal Developments
the class. After counseling, the allegation shall be
consolidated with the class complaint.
(4) If an allegation of discrimination in the class
complaint lacks specificity and detail, the administrative judge shall afford the agent of the class 15
calendar days to provide specific and detailed information. The administrative judge shall recommend
that the Board dismiss the class complaint if the agent
of the class fails to provide such information within
the specified time period. If the information provided
contains new allegations outside the scope of the
complaint, the administrative judge shall advise the
agent of the class how to proceed on an individual or
class basis concerning these allegations.
(5) The administrative judge shall recommend that
the Board extend the time limits for filing a class
complaint and for consulting with an EEO Counselor in accordance with the time limit extension
provisions contained in sections 268.204(a)(2) and
268.604 of this part.
(6) When appropriate, the administrative judge may
recommend that a class be divided into subclasses
and that each subclass be treated as a class, and the
provisions of this section shall then be construed
and applied accordingly.
(7) The administrative judge's written recommendation to the Board on whether to accept or dismiss a
class complaint and the complaint file shall be
transmitted to the Board, and notification of that
transmittal shall be sent to the agent of the class.
The administrative judge's recommendation to accept or dismiss shall become the Board's decision
unless the Board accepts, rejects or modifies the
recommended decision within 30 days of the receipt
of the recommended decision and complaint file
pursuant to section 268.209 of this part. The Board
shall notify the agent of the class by certified mail,
return receipt requested, and the administrative
judge of its decision to accept or dismiss a class
complaint. At the same time, the Board shall forward to the agent of the class copies of the administrative judge's recommendation and the complaint
file. The dismissal of a class complaint shall inform
the agent of the class either that the class complaint
is being filed on that date as an individual complaint
of discrimination and will be processed under subpart B of this part, or that the class complaint is also
dismissed as an individual complaint in accordance
with section 268.206 of this part. In addition, it shall
inform the agent of the class of the right to file a
request for review of the dismissal of the class
complaint with the Commission pursuant to section
268.401 of this part, or to file a civil action. A copy
of EEOC Form 573, Notice of Appeal/Petition, shall
be attached to the Board's decision to dismiss a
427
class complaint pursuant to section 268.209(b)(4) of
this part.
(d) Notification. (1) Within 15 calendar days of accepting a class complaint, the Board shall use reasonable
means, such as delivery, mailing to last known
address or distribution, to notify all class members
of the acceptance of the class complaint.
(2) Such notice shall contain:
(i) The date of acceptance of the class complaint
by the Board;
(ii) A description of the issues accepted as part of
the class complaint;
(iii) An explanation of the binding nature of the
Board's dismissal, final decision or resolution of
the class complaint on class members; and
(iv) The name, address and telephone number of
the agent of the class or, if represented, the
representative.
(e) Obtaining evidence concerning the complaint.
(1) Upon the acceptance of a class complaint by the
Board, the administrative judge shall notify the
agent of the class and the Board's representative of
the time period that will be allowed both parties to
prepare their case. This time period will include at
least 60 days and may be extended by the administrative judge upon the request of either party. Both
parties are entitled to reasonable development of
evidence on matters relevant to the issues raised in
the class complaint. Evidence may be developed
through interrogatories, depositions, and requests
for admissions, stipulations or production of documents. It shall be grounds for objection to producing
evidence that the information sought by either party
is irrelevant, overburdensome, repetitious, privileged, or that production would be unlawful.
(2) If mutual cooperation fails, either party may
request the administrative judge to rule on a request
to develop evidence. If a party fails without good
cause shown to respond fully and in timely fashion
to a request made or approved by the administrative
judge for documents, records, comparative data,
statistics or affidavits, and the information is solely
in the control of one party, such failure may, in
appropriate circumstances, cause the administrative
judge:
(i) To draw an adverse inference that the requested information would have reflected unfavorably on the party refusing to provide the
requested information;
(ii) To consider the matters to which the requested
information pertains to be established in favor of
the opposing party;
(iii) To exclude other evidence offered by the
party failing to produce the requested information;
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Federal Reserve Bulletin • May 1994
(iv) To recommend that a decision be entered in
favor of the opposing party ; or
(v) To take such other actions as the administrative judge deems appropriate.
(3) During the period for development of evidence,
the administrative judge may, in his or her discretion, direct that an investigation of facts relevant to
the class complaint or any portion be conducted.
(4) Both parties shall furnish to the administrative
judge copies of all materials that they wish to be
examined and such other material as may be requested.
(f) Opportunity for resolution of the class complaint.
(1) The administrative judge shall furnish the agent
of the class and the Board's representative a copy of
all materials obtained concerning the class complaint and provide opportunity for the agent of the
class to discuss the materials with the Board's
representative and to attempt resolution of the class
complaint.
(2) The class complaint may be resolved by agreement of the Board and the agent of the class at any
time as long as the agreement is fair and reasonable.
(3) If the class complaint is resolved, the terms of
the resolution shall be reduced to writing and signed
by the agent of the class and the Board.
(4) Notice of the agreement of resolution shall be
given to all class members in the same manner as
notification of the acceptance of the class complaint
and shall state the relief, if any, to be granted by the
Board. An agreement of resolution shall bind all
members of the class. Within 30 days of the date of
the notice of the agreement of resolution, any member of the class may petition the Commission to
vacate the agreement of resolution because it benefits only the agent of the class or is otherwise not fair
and reasonable. Such a petition will be processed in
accordance with paragraph (c) of this section and if
the administrative judge finds that the agreement of
resolution is not fair and reasonable, he or she shall
recommend that the agreement of resolution be
vacated and that the original agent of the class be
replaced by the petitioner or some other class member who is eligible to be the agent of the class during
further processing of the class complaint. The Board
may determine, with respect to the petition, that the
agreement of resolution is not fair and reasonable,
which vacates any agreement between the former
agent of the class and the Board. The Board's
decision to vacate the agreement of resolution shall
be communicated to the former agent of the class
and to the petitioner, and shall inform them of their
right to file a request for review with the Commission under section 268.401 of this part. A copy of
EEOC Form 573, Notice of Appeal/Petition, shall be
attached to the Board's decision pursuant to section
268.209(b)(5) of this part.
(g) Hearing. On expiration of the period allowed for
preparation of the case, the administrative judge shall
set a date for a hearing. The hearing shall be conducted
in accordance with sections 268.208(a) through (f) of
this part.
(h) Report of findings and recommendations. (1) The
administrative judge shall transmit to the Board a
report of findings and recommendations on the class
complaint, including a recommended decision, systemic relief for the class and any individual relief,
where appropriate, with regard to the personnel
policy or practice that gave rise to the class complaint.
(2) If the administrative judge finds no class relief
appropriate, he or she shall determine if a finding of
individual discrimination is warranted and, if so,
shall recommend appropriate relief.
(3) The administrative judge shall notify the Board
of the date on which the report of findings and
recommendations was forwarded to the Board.
(i) Board decision. (1) Within 60 days of receipt of the
report of findings and recommendations issued under section 268.305(h) of this part, the Board shall
issue a final decision pursuant to section 268.209 of
this part, which shall accept, reject, or modify the
findings and recommendations of the administrative
judge.
(2) The final decision of the Board shall be in writing
and shall be transmitted to the agent of the class by
certified mail, return receipt requested, along with a
copy of the report of findings and recommendations
of the administrative judge.
(3) When the Board's final decision is to reject or
modify the findings and recommendations of the
administrative judge, the Board's final decision shall
contain specific reasons for the Board's final decision.
(4) If the Board has not issued a final decision within
60 days of its receipt of the administrative judge's
report of findings and recommendations, those findings and recommendations of the administrative
judge shall become the Board's final decision. The
Board shall transmit the final decision to the agent of
the class within 5 calendar days of the expiration of
the 60-day period.
(5) The final decision of the Board shall require any
relief authorized by law and determined to be necessary or desirable to resolve the issue of discrimination.
(6) The final decision of the Board shall, subject to
subpart E of this part, be binding on all members of
the class and the Board.
(7) The final decision shall inform the class agent of
Legal Developments
the right to seek review by the Commission, or to
file a civil action, in accordance with subpart E of
this part, and of the applicable time limits,
(j) Notification of decision. The Board shall notify
class members of the Board's final decision and relief
awarded, if any, through the same media employed to
give notice of the existence of the class complaint. The
notice, where appropriate, shall include information
concerning the rights of class members to seek individual relief, and of the procedures to be followed.
Notice shall be given by the Board within 10 calendar
days of the transmittal of the final decision to the agent
of the class.
(k) Relief for individual class members. (1) When the
Board finds class discrimination, the Board shall
eliminate or modify the personnel policy or practice
out of which the complaint arose and provide individual relief, including an award of attorney's fees
and costs, to the agent of the class in accordance
with section 268.501(e) of this part.
(2) When class-wide discrimination is not found, but
it is found that the agent of the class is a victim of
discrimination, section 268.501 of this part shall
apply. The Board shall also, within 60 days of the
issuance of its final decision finding no class-wide
discrimination, issue the acknowledgement of receipt of an individual complaint as required by
section 268.205(d) of this part and process in accordance with the provisions of subpart B of this part,
each individual complaint that was subsumed into
the class complaint.
(3) When class-wide discrimination is found in a final
decision of the Board, and a class member believes
that he or she is entitled to individual relief, the class
member may file a written claim with the Board's
EEO Programs Director within 30 days of receipt of
notification by the Board of its final decision. The
claim must include a specific, detailed showing that
the claimant is a class member who was affected by
a personnel action or matter resulting from the
discriminatory personnel policy or practice, and that
this discriminatory action took place within the
period of time for which the Board found class-wide
discrimination in its final decision. The period of
time for which the Board finds class-wide discrimination shall begin not more than 45 days prior to the
initial contact by the agent of the class with the EEO
Counselor and shall end not later than the date when
the Board eliminates the personnel policy or practice found to be discriminatory in the Board's final
decision. The Board shall issue a final decision on
each such claim within 90 days of filing. Such
decision must include a notice of the right to file a
request for review with the Commission or a civil
action in accordance with subpart E of this part and
429
the applicable time limits. A copy of EEOC Form
573, Notice of Appeal/Petition, shall be attached to
the Board's decision pursuant to section
268.209(b)(7) of this part.
Subpart D—Review by the Equal Employment
Opportunity Commission
Section 268.401—Review by the Equal
Employment Opportunity Commission.
(a) An individual complainant may file a request for
review with the Commission of a final decision issued
by the Board under section 268.209 of this part, or a
dismissal by the Board of all or a portion of an
individual complaint under section 268.206 of this part.
(b) An agent of the class may file a request for review
with the Commission of a dismissal of all or a portion
of a class complaint rendered by the Board under
section 268.305(c) of this part, or a final decision of the
Board accepting or rejecting all or a portion of a report
of findings and recommendations of an administrative
judge with regard to a class complaint pursuant to
section 268.305(i) of this part. A class member may file
a request for review with the Commission of a final
decision by the Board on a claim for individual relief
under a class complaint pursuant to section 268.305(k)
of this part. Both an agent of the class and a class
member may file a request for review with the Commission of a final decision of the Board on a petition
pursuant to section 268.305(f)(4) of this part.
(c) A complainant, agent of the class or individual
class claimant may file a request for review with the
Commission of the Board's alleged noncompliance
with a settlement agreement or final decision in accordance with section 268.504 of this part.
Section 268.402—Time limits for review by the
Equal Employment Opportunity Commission.
(a) Any dismissal of a complaint or a portion of a
complaint, or any final decision of the Board, as set
forth in paragraphs (b)(1) through (7) of section
268.209 of this part, may be reviewed by the Commission if a request for review is filed with the Commission within 30 days of the complainant's receipt of the
dismissal or final decision. In the case of class complaints, any final decision of the Board received by an
agent of the class, petitioner or any individual class
claimant may be reviewed by the Commission if a
request for review is filed with the Commission within
30 days of its receipt. Where a complainant has
notified the EEO Programs Director of alleged noncompliance with a settlement agreement in accordance
with section 268.504 of this part, the complainant may
430
Federal Reserve Bulletin • May 1994
file a request for review with the Commission within 35
days after notification to the EEO Programs Director
under section 268.504(a) of this part of such noncompliance, but the complainant must file a request for
review within 30 days of receipt of the Board's determination.
(b) If the complainant is represented by an attorney of
record, then the 30-day time period provided in paragraph (a) of this section within which to file a request
for review shall be calculated from the receipt of the
notification required under section 268.504(a) of this
part by the attorney. In all other instances, the time
within which to file a request for review with the
Commission shall be calculated from the receipt of the
notification required under section 268.504(a) of this
part by the complainant.
Section 268.403—How to seek review.
(a) The complainant must file a request for review with
the Commission by sending EEOC Form 573, Notice
of Appeal/Petition, to the Director, Office of Federal
Operations, Equal Employment Opportunity Commission, P.O. Box 19848, Washington, DC 20036, or by
personal delivery or facsimile. The complainant
should indicate what matters he or she is requesting
the Commission to review.
(b) The complainant shall furnish a copy of the request
for review to the Board's EEO Programs Director at
the same time that he or she files the request for review
with the Commission. In or attached to the request for
review by the Commission, the complainant must
certify the date and method by which service was
made on the Board.
(c) If a complainant does not file a request for review
with the Commission within the time limits of this
subpart D, the request for review shall be untimely and
shall be dismissed by the Commission.
(d) Any statement or brief in support of the request for
review must be submitted to the Director, Office of
Federal Operations, Equal Employment Opportunity
Commission, and to the Board within 30 days of the
filing of the request for review. Following receipt of
the request for review, and any brief in support of the
request for review, the Director, Office of Federal
Operations, Equal Employment Opportunity Commission, shall request the complaint file from the Board.
The Board shall submit the complaint file and any
Board statement or brief in opposition to the request
for review to the Director, Office of Federal Operations, Equal Employment Opportunity Commission,
within 30 days of receipt of the Commission's request
for the complaint file. A copy of the Board's statement
or brief shall be served on the complainant at the same
time.
Section 268.404—Procedure on review.
(a) The Commission's Office of Federal Operations
shall review the complaint file and all written statements and briefs from either party. The Commission
may supplement the record by an exchange of letters
or memoranda, investigation, remand to the Board or
other procedures.
(b) If the Commission's Office of Federal Operations
requests information from one or both of the parties to
supplement the record, each party providing information shall send a copy of the information submitted to
the Commission to the other party.
Section 268.405—Decisions on review.
(a) The Commission's Office of Federal Operations
shall issue a written decision (the EEOC decision)
setting forth its reasons for the decision. The Commission shall dismiss requests for review in accordance
with sections 268.206, 268.403(c) and 268.507 of this
part. The EEOC decision shall be based on the preponderance of the evidence. If the EEOC decision
contains a finding of discrimination, appropriate remedy (ies) shall be included and, where appropriate, the
entitlement to interest, attorney's fees or costs shall be
indicated. The EEOC decision shall reflect the date of
its issuance, inform the complainant of his or her civil
action rights, and be transmitted to the complainant
and to the Board by certified mail, return receipt
requested.
(b) The EEOC decision issued under paragraph (a) of
this section is final, subject to paragraph (c) of this
section, within the meaning of section 268.406(d) of
this part unless:
(1) Either party files a timely request for reconsideration pursuant to section 268.406 of this part; or
(2) The Commission on its own motion reconsiders
the case.
(c) The Board, within 30 days of receiving the EEOC
decision, shall issue final decision pursuant to section
268.209 of this part based upon the EEOC decision.
Section 268.406—Reconsideration.
(a) Within a reasonable period of time, the Commission may, in its discretion, reconsider an EEOC decision issued under section 268.405(a) of this part,
notwithstanding any other provisions of this part.
(b) A party may request reconsideration of an EEOC
decision issued under section 268.405(a) of this part
provided that such request is made within 30 days of
receipt of an EEOC decision or within 20 days of
receipt of another party's timely request for reconsideration. Such request, along with any supporting state-
Legal Developments
ment or brief, shall be submitted to the Commission's
Office of Review and Appeals, and to all parties with
proof of such submission. All other parties shall have
20 days from the date of service in which to submit to
all other parties, with proof of submission, any statement or brief in opposition to the request.
(c) The request for reconsideration or the statement or
brief in support of the request shall contain arguments
or evidence which tend to establish that:
(1) New and material evidence is available that was
not readily available when the EEOC decision was
issued;
(2) The EEOC decision involved an erroneous interpretation of law, regulation or material fact, or
misapplication of established policy; or
(3) The EEOC decision is of such exceptional nature
as to have substantial precedential implications.
(d) A decision on a request for reconsideration by
either party is final and there shall be no further right
by either party to request reconsideration of an EEOC
decision.
Subpart E—Remedies, Enforcement and Civil
Actions
Section 268.501—Remedies and relief.
(a) General procedures. When the Board finds discrimination when issuing its final decision pursuant to
section 268.209 of this part, the Board shall consider
the following elements in providing full relief to complainants:
(1) Notification to all employees of the Board of
their right to be free of unlawful discrimination and
assurance that the particular types of discrimination
found will not recur;
(2) Commitment that corrective, curative or preventive action will be taken, or measures adopted, to
ensure that violations of law and this part similar to
those found unlawful will not recur;
(3) An unconditional offer to each identified victim
of discrimination of placement in the position the
person would have occupied but for the discrimination suffered by that person, or a substantially
equivalent position;
(4) Payment to each identified victim of discrimination on a make whole basis for any loss of earnings
the person may have suffered as a result of the
discrimination; and
(5) Commitment that the Board shall cease from
engaging in the specific unlawful employment practice found in the case.
(b) Relief for an applicant. (1) (i) When it is determined
in a final decision that an applicant for employment has been discriminated against, the Board
431
shall offer the applicant for employment the position that the applicant for employment would
have occupied absent discrimination or, if justified by the circumstances, a substantially equivalent position unless clear and convincing evidence
indicates that the applicant for employment would
not have been selected even absent the discrimination. The offer to the applicant for employment
shall be made in writing. The applicant for employment shall have 15 days from receipt of the
offer within which to accept or decline the offer.
Failure to accept the offer within the 15-day
period will be considered a declination of the
offer, unless the applicant for employment can
show that circumstances beyond his or her control prevented a response within the time limit.
(ii) If the offer is accepted, appointment shall be
retroactive to the date the applicant for employment would have been hired. Back pay, computed
in the manner prescribed in 5 C.F.R. 550.805 shall
be awarded from the date the applicant for employment would have entered on duty until the
date the applicant for employment actually enters
on duty unless clear and convincing evidence
indicates that the applicant would not have been
selected even absent discrimination. Interest on
back pay shall be included in the back pay computation where sovereign immunity has been
waived. An applicant for employment shall be
deemed to have performed service at the Board
during such period for all purposes except for
meeting service requirements for completion of a
required probationary period.
(iii) If the offer of employment is declined, the
Board shall award the applicant for employment a
sum equal to the back pay he or she would have
received, computed in the manner prescribed in 5
C.F.R. 550.805 from the date he or she would
have been appointed until the date the offer was
declined, subject to the limitation of paragraph
(b)(3) of this section. Interest on back pay shall be
included in the back pay computation. The Board
shall inform the applicant for employment, in its
offer of employment, of the right to this award in
the event the offer of employment is declined.
(2) When it is determined in a final decision that
discrimination existed at the time the applicant for
employment was considered for employment but
also by clear and convincing evidence that the
applicant would not have been hired even absent
discrimination, the Board shall nevertheless take all
steps necessary to eliminate the discriminatory
practice and ensure it does not recur.
(3) Back pay under this paragraph (b) for complaints
under Title VII or the Rehabilitation Act may not
432
Federal Reserve Bulletin • May 1994
extend from a date earlier than two years prior to the
date on which the complaint was initially filed by the
applicant for employment.
(c) Relief for an employee. When it is determined in a
final decision that an employee of the Board was
discriminated against, the Board shall provide relief,
which shall include, but need not be limited to, one or
more of the following actions:
(1) Nondiscriminatory placement, with back pay
computed in the manner prescribed in 5 C.F.R.
550.805 unless clear and convincing evidence contained in the record demonstrates that the personnel
action would have been taken even absent the
discrimination. Interest on back pay shall be included in the back pay computation where sovereign
immunity has been waived. The back pay liability
under Title VII or the Rehabilitation Act is limited to
the two years prior to the date the discrimination
complaint was filed;
(2) If clear and convincing evidence indicates that,
although discrimination existed at the time the personnel action was taken, the personnel action would
have been taken even absent discrimination, the
Board shall nevertheless eliminate any discriminatory practice and ensure it does not recur;
(3) Cancellation of an unwarranted personnel action
and restoration of the employee;
(4) Expunction from the Board's records of any
adverse materials relating to the discriminatory
practice; and
(5) Full opportunity to participate in the employee
benefit denied (e.g., training, preferential work assignments, overtime scheduling).
(d) Mitigation of damages. The Board shall not decline
to grant relief based upon failure to mitigate damages
unless it has clear and convincing evidence that the
employee or applicant for employment has failed to
mitigate damages. The Board shall have the burden of
proving by a preponderance of the evidence that the
complainant has failed to mitigate his or her damages.
(e) Attorney's fees or costs —(1) Awards of attorney's
fees or costs. The provisions of this paragraph (e)
relating to the award of attorney's fees or costs shall
apply to allegations of discrimination prohibited by
Title VII and the Rehabilitation Act. In a notice of
final action or a decision, the employee or applicant
for employment may be awarded reasonable attorney's fees or costs (including expert witness fees)
incurred in the processing of the complaint. In this
regard:
(i) A finding of discrimination raises a presumption of entitlement to an award of attorney's fees;
(ii) Attorney's fees are allowable only for the
services of members of the Bar and law clerks,
paralegals or law students under the supervision
of members of the Bar, except that no award is
allowable for the services of any employee of the
Federal Government; and
(iii) Attorney's fees shall be paid only for services
performed after the filing of a written complaint
and after the complainant has notified the Board
that he or she is represented by an attorney,
except that fees allowable for a reasonable period
of time prior to the notification of representation
for any services performed in reaching a determination to represent the complainant. Written submissions to the Board that are signed by the
representative shall be deemed to constitute notice of representation.
(2) Amount of awards, (i) When the attorney's fees or
costs are awarded, the complainant's attorney
shall submit a verified statement of costs and
attorney's fees (including expert witness fees), as
appropriate, to the Board within 30 days of receipt
of the final decision, unless a request for review or
reconsideration is filed. A statement of attorney's
fees shall be accompanied by an affidavit executed
by the attorney of record itemizing the attorney's
charges for legal services and both the verified
statement and the accompanying affidavit shall be
made a part of the complaint file. The amount of
attorney's fees or costs to be awarded the complainant shall be determined by agreement among
the complainant, the complainant's representative
and the Board. Such agreement shall immediately
be reduced to writing.
(ii) (A) If the complainant, the complainant's representative and the Board cannot reach an
agreement on the amount of attorney's fees or
costs within 20 days of the Board's receipt of
the verified statement and accompanying affidavit, the Board shall issue a decision determining the amount of attorney's fees or costs due
within 30 days of receipt of the statement and
affidavit. The decision of the Board shall include the specific reasons for determining the
amount of the award. The complainant or the
complainant's representative may file a request
for review with the Commission of the Board's
decision, and the Board's notice to the complainant and his or her representative shall
include EEOC Form 573, Notice of Appeal/
Petition.
(B) The amount of attorney's fees shall be
calculated in accordance with existing case law
using the following standards: The starting
point shall be the number of hours reasonably
expended multiplied by a reasonable hourly
rate. This amount may be reduced or increased
in consideration of the following factors, al-
Legal Developments
though ordinarily many of these factors are
subsumed within the calculation set forth in this
paragraph (e)(2)(ii)(B): The time and labor required, the novelty and difficulty of the questions, the skill requisite to perform the legal
service properly, the attorney's preclusion from
other employment due to acceptance of the
case, the customary fee, whether the fee is fixed
or contingent, time limitations imposed by the
client or the circumstances, the amount involved and the results obtained, the experience,
reputation, and ability of the attorney, the undesirability of the case, the nature and length of
the professional relationship with the client,
and the awards in similar cases. Only in cases of
exceptional success should any of these factors
be used to enhance an award computed by the
formula set forth in this paragraph (e)(2)(ii)(B).
(C) The costs that may be awarded are those
authorized by 28 U.S.C. 1920 to include: Fees
of the reporter for all or any of the stenographic
transcript necessarily obtained for use in the
case; fees and disbursements for printing and
witnesses; and fees for exemplification and copies necessarily obtained for use in the case,
(iii) Witness fees shall be awarded in accordance
with the provisions of 28 U.S.C. 1821, except that
no award shall be made for a federal employee
who is in a duty status when made available as a
witness.
Section 268.502—Compliance with EEOC
decisions.
(a) The relief ordered in an EEOC decision, if accepted
pursuant to section 268.209 of this part as a final
decision, or not acted upon by the Board within the
time periods of section 268.209 of this part, shall be
binding upon the Board. Failure to implement its final
decision, or the EEOC decision in such circumstances, shall be grounds for the complainant to file a
civil action under sections 268.505 and 268.506 of this
part.
(b) Notwithstanding paragraph (a) of this section,
when the Board requests reconsideration, when the
case involves an employee's removal, separation, or
suspension continuing beyond the date of the request
for reconsideration, and when the EEOC decision
recommends retroactive restoration, the Board shall
comply with the EEOC decision only to the extent of
the temporary or conditional restoration of the employee to duty status in the position recommended by
the Commission, pending the outcome of the Board's
request for reconsideration.
433
(1) Service under the temporary or conditional restoration provisions of this paragraph (b) shall be
credited toward the completion of a probationary or
trial period, or eligibility for a within-grade increase,
if the EEOC decision is upheld.
(2) The Board shall notify the Commission and the
employee in writing, at the same time it requests
reconsideration, that the relief it provides is temporary or conditional.
(c) Relief shall be provided in full no later than 60 days
after all administrative proceedings have ended.
Section 268.503—Enforcement of EEOC
decisions.
(a) Petition for enforcement. As set forth in this
section, a complainant may petition the Commission
for enforcement of an EEOC decision issued under the
review process of this part. The petition shall be
submitted to the Office of Federal Operations, Equal
Employment Opportunity Commission. The petition
shall specifically set forth the reasons that lead the
complainant to believe that the Board is not complying
with the EEOC decision.
(b) Compliance. The Commission's Office of Federal
Operations may take appropriate action to ascertain
whether the Board should have adopted the EEOC
decision pursuant to section 268.209 of this part. If the
Commission determines that the Board has failed to
comply with the EEOC decision in full, the Commission may undertake the efforts set forth in paragraphs
(c) and (d) of this section to obtain compliance by the
Board.
(c) Clarification. The Commission's Office of Federal
Operations may, on its own motion or in response to
the petition for enforcement or in connection with a
timely request for reconsideration, issue a clarification
of an EEOC decision. A clarification may not change
the result of a prior EEOC decision or enlarge or
diminish the relief contained in the EEOC decision,
but it may further explain the meaning or intent of the
EEOC decision. The Commission may also send a
notice to the Board seeking an explanation why the
Board failed to adopt the EEOC decision as its final
decision under section 268.209 of this part, and the
Board shall respond to such request within 30 days of
receipt of the notice addressing the issue raised by the
Commission.
(d) Notification to complainant of completion of administrative efforts. Where the Commission has determined that the Board has failed to adopt the EEOC
decision as its final decision, the Commission may
notify the complainant who has petitioned the Commission under paragraph (a) of this section of his or her
right to file a civil action under section 268.505 of this
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Federal Reserve Bulletin • May 1994
part for failure of the Board to adopt the EEOC
decision as its final decision.
Section 268.505—Civil action: Title VII, Age
Discrimination in Employment Act and
Rehabilitation Act.
Section 268.504—Compliance with settlement
agreements and final decisions.
(a) Any settlement agreement knowingly and voluntarily agreed to by the Board and a complainant, reached
at any stage of the complaint process, shall be binding
on both parties. A final decision of the Board that has
not been the subject of review by the Commission, or
in a civil action, shall nonetheless be binding on the
Board. If the complainant believes that the Board has
failed to comply with the terms of a settlement agreement or a final decision, the complainant shall notify
the EEO Programs Director, in writing, of the alleged
noncompliance within 30 days of when the complainant knew or should have known of the alleged noncompliance. The complainant may request that the
Board implement the terms of the settlement agreement or final decision or alternatively, that the complaint be reinstated for further processing from the
point processing ceased.
(b) The Board shall attempt to resolve the matter
brought to the Board's attention by the complainant in
paragraph (a) of this section, and respond to the
complainant, in writing. If the Board has not responded to the complainant, in writing, or if the
complainant is not satisfied with the Board's attempt
to resolve the matter, the complainant may request the
Commission to review whether the Board has complied with the terms of the settlement agreement or the
final decision. The complainant may file such request
for review 35 days after he or she has served the Board
with the notice of allegations of noncompliance, but
must file the request for review with the Commission
within 30 days of his or her receipt of a Board's
determination. The complainant must serve a copy of
the request for review on the Board and the Board may
submit a response to the Commission within 30 days of
receiving notice of request for review.
(c) Prior to rendering its determination, the Commission may request that the parties submit whatever
additional information or documentation they deem
necessary, or it may direct that an investigation or
hearing on the matter be conducted. If the Commission determines that the Board is not in compliance
and the noncompliance is not attributable to acts or
conduct of the complainant, it may order that the
complaint be reinstated for further processing from the
point processing ceased. Allegations that subsequent
acts of discrimination violate a settlement agreement
shall be processed as separate complaints under sections 268.205 or 268.305 of this part, as appropriate,
rather than under this section.
A complainant who has filed an individual complaint,
an agent of the class who has filed a class complaint or
a claimant who has filed a claim for individual relief
pursuant to a class complaint may file a civil action in
an appropriate United States District Court alleging
violations of Title VII, the ADEA or the Rehabilitation
Act:
(a) Within 90 days of receipt of the Board's final
decision on an individual or class complaint, whether
or not a request for review has been filed with the
Commission;
(b) After 180 days from the date of filing an individual
or class complaint if a request for review by the
Commission has not been filed and a final decision of
the Board has not been issued;
(c) Within 90 days of receipt of an EEOC decision; or
(d) After 180 days from the date of filing a request for
review with the Commission if an EEOC decision has
not been issued by the Commission.
Section 268.506—Civil action: Equal Pay Act.
A complainant may file a civil action under section
16(b) of the Fair Labor Standards Act (29 U.S.C.
216(b)) in a court of competent jurisdiction within two
years or, if the violation is willful, three years of the
date of the alleged violation of the Equal Pay Act
regardless of whether he or she pursued any administrative complaint processing (29 U.S.C. 225). Recovery of back wages under the Equal Pay Act is limited
to two years prior to the date of filing suit, or to three
years if the violation is deemed willful. Liquidated
damages in an equal amount may also be awarded. The
filing of a complaint or request for review with the
Commission under this part shall not toll the time for
filing a civil action.
Section 268.507—Effect of filing a civil action.
Filing a civil action under sections 268.505 or 268.506
of this part shall terminate the Commission's processing of any request for review. If a private suit is
filed subsequent to the filing of a request for review,
the parties shall notify the Commission of such filing in
writing.
Legal Developments
Subpart F—Matters of General Applicability
Section 268.601—EEO group statistics.
(a) The Board shall collect and maintain accurate
employment information on the race, national origin,
sex and disabilities of its employees.
(b) Data on race, national origin and sex shall be
collected by voluntary self-identification. If an employee does not voluntarily provide the requested
information, the Board shall advise the employee of
the importance of the data and of the Board's obligation to report it. If the employee still refuses to provide
the information, the Board shall make a visual identification and inform the employee of the data it will be
reporting. If the Board believes that information provided by an employee is inaccurate, the Board shall
advise the employee that the purpose for which the
data is being collected is solely statistical, of the need
for accuracy, of the Board's recognition of the sensitivity of the information, and of the existence of
procedures to prevent its unauthorized disclosure. If,
thereafter, the employee declines to change the apparently inaccurate self identification, the Board shall
accept it.
(c) Subject to applicable law, the information collected
under paragraph (b) of this section shall be disclosed
only in the form of gross statistics. The Board will not
collect or maintain any information on the race, national origin, or sex of individual employees except in
accordance with applicable law and when an automated data processing system is used in accordance
with standards and requirements prescribed by the
Commission to ensure individual privacy and the separation of that information from the employee's personnel record.
(d) The Board's system shall incorporate the following
controls:
(1) Only those categories of race and national origin
approved by the Commission shall be used; and
(2) Only the specific procedures for the collection
and maintenance of data that are prescribed or
approved by the Commission shall be used.
(e) The Board shall use the data only in studies and
analyses that contribute affirmatively to achieving the
objectives of the Board's equal employment opportunity program. The Board shall not establish quotas for
the employment of persons on the basis of race, color,
religion, sex, or national origin.
(f) Data on disabilities shall also be collected by
voluntary self-identification. If an employee does not
voluntarily provide the requested information, the
Board shall advise the employee of the importance of
the data and of the Board's obligation to report it. If an
employee who has been appointed pursuant to the
435
Board's affirmative action program for hiring individuals with a disability still refuses to provide the requested information, the Board shall identify the employee's disability based upon the records supporting
the appointment. If any other employee still refuses to
provide the requested information or provides information that the Board believes to be inaccurate, the
Board shall report the employee's disability status as
unknown.
(g) The Board shall report to the Commission on
employment by race, national origin, sex and disability
in the form and at such times as the Board and
Commission shall agree.
Section 268.602—Reports to the Equal
Employment Opportunity Commission.
(a) The Board shall report to the Commission information concerning pre-complaint counseling and the status, processing, and disposition of complaints under
this part at such times and in such manner as the Board
and Commission shall agree.
(b) The Board shall advise the Commission whenever
it is served with a federal court complaint based upon
a complaint that is pending review at the Commission.
(c) The Board shall prepare annually equal employment opportunity plans of actions, in the form requested by the Commission, and shall submit such
plans for review and advice by the Commission. The
plans of action shall include:
(1) Provision for the establishment of training and
education programs designed to provide maximum
opportunity for employees to advance so as to
perform at their highest potential;
(2) Description of the qualifications, in terms of
training and experience relating to equal employment opportunity, of the principal and operating
officials concerned with administration of the
Board's equal employment opportunity program;
and
(3) Description of the allocation of personnel and
resources proposed by the Board to carry out its
equal employment opportunity program.
Section 268.603—Voluntary settlement
attempts.
The Board shall make reasonable efforts to settle,
voluntarily, complaints of discrimination as early as
possible in, and throughout, the administrative processing of complaints, including the pre-complaint
counseling stage. Any settlement reached shall be
reduced to writing and shall be signed by both parties
and shall identify the allegations resolved.
436
Federal Reserve Bulletin • May 1994
Section 268.604—Filing and computation
of time.
(a) All time periods in this part that are stated in terms
of days are calendar days unless otherwise stated.
(b) A document shall be deemed timely filed if it is
delivered in person, or sent via U.S. mail and postmarked before the expiration of the applicable filing
period; or, in the absence of a legible postmark, if it is
received via U.S. mail within five days of the expiration of the applicable filing period.
(c) The time limits in this part are subject to waiver,
estoppel, and equitable tolling.
(d) The first day counted shall be the day after the event
from which the time period began to run and the last
day of the period shall be included, unless it falls on a
Saturday, Sunday, or Federal holiday, in which case
the period shall be extended to include the next business day.
Section 268.605—Representation and
official time.
(a) At any stage in the processing of a complaint,
including the counseling stage under section 268.204 of
this part, the complainant shall have the right to be
accompanied, represented and advised by a representative of complainant's choice.
(b) If the complainant is an employee of the Board, he
or she shall have a reasonable amount of official time, if
otherwise on duty, to prepare the complaint and to
respond to Board and Commission requests for information. If the complainant is an employee of the Board
and he or she designates another employee of the Board
as his or her representative, the representative shall
have a reasonable amount of official time, if otherwise
on duty, to prepare the complaint and respond to Board
and Commission requests for information. The Board is
not obligated to change work schedules, incur overtime
wages, or pay travel expenses to facilitate the choice of
a specific representative or to allow the complainant
and representative to confer. The complainant and the
representative, if employed by the Board and otherwise
in a pay status, shall be on official time, regardless of
their tours of duty, when their presence is authorized or
required by the Board or the Commission during the
investigation, informal adjustment, or hearing on the
complaint.
(c) In cases where the representation of a complainant
or the Board would conflict with the official or collateral duties of the representative, the Board may, after
giving the representative an opportunity to respond,
disqualify the representative.
(d) Unless the complainant states otherwise in writing,
after the Board has received written notice of the name,
address and telephone number of a representative, all
official correspondence shall be with the representative
with copies to the complainant. When the complainant
designates an attorney as representative, service of
documents and decisions on the complaint shall be
made on the attorney and not on the complainant, and
time frames for receipt of materials by the complainant
shall be computed from the time of receipt by the
attorney. The complainant must serve all official correspondence on the designated representative of the
Board.
(e) The complainant shall at all times be responsible
for proceeding with the complaint whether or not he or
she has designated a representative.
(f) Witnesses who are Board employees shall be in a
duty status when their presence is authorized or required in connection with a complaint.
Section 268.606—Joint processing and
consolidation of complaints.
Complaints of discrimination filed by two or more
complainants consisting of substantially similar allegations of discrimination or relating to the same matter, or
two or more complaints of discrimination from the
same complainant, may be consolidated by the Board
for joint processing after appropriate notification to the
parties. The date of the first filed complaint controls the
applicable time frames under subpart B of this part.
Subpart G—Prohibition Against Discrimination
In Board Programs and Activities Because of a
Physical or Mental Disability
Section 268.701—Purpose and application.
(a) Purpose. The purpose of this subpart G is to
prohibit discrimination on the basis of a disability in
programs or activities conducted by the Board.
(b) Application. (1) This subpart G applies to all
programs and activities conducted by the Board.
Such programs and activities include:
(i) Holding open meetings of the Board or other
meetings or public hearings at the Board's office
in Washington, DC;
(ii) Responding to inquiries, filing complaints, or
applying for employment at the Board's office;
(iii) Making available the Board's library facilities;
and
(iv) Any other lawful interaction with the Board or
its staff in any official matter with people who are
not employees of the Board.
(2) This subpart G does not apply to Federal Reserve Banks or to financial institutions or other
companies supervised or regulated by the Board.
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Section 268.702—Notice.
The Board shall make available to employees, applicants for employment, participants, beneficiaries, and
other interested persons information regarding the
provisions of this subpart G and its applicability to the
programs and activities conducted by the Board, and
make this information available to them in such manner as the Board finds necessary to apprise such
persons of the protections against discrimination assured them by this subpart G.
Section 268.703—Prohibition against
discrimination.
(a) No qualified individual with a disability shall, on
the basis of a disability, be excluded from participation
in, be denied the benefits of, or otherwise be subjected
to discrimination in any program or activity conducted
by the Board.
(b) (1) The Board, in providing any aid, benefit, or
service, may not, directly or through contractual,
licensing, or other arrangements, on the basis of a
disability:
(i) Deny a qualified individual with a disability the
opportunity to participate in or benefit from the
aid, benefit, or service that is not equal to that
provided to others;
(ii) Afford a qualified individual with a disability
an opportunity to participate in or benefit from the
aid, benefit, or service that is not equal to that
afforded others;
(iii) Provide a qualified individual with a disability
with an aid, benefit, or service that is not as
effective in affording equal opportunity to obtain
the same result, to gain the same benefit, or to
reach the same level of achievement as that provided to others;
(iv) Provide different or separate aid, benefits, or
services to individuals with a disability or to any
class of individuals with a disability than is provided to others unless such action is necessary to
provide qualified individuals with a disability with
aid, benefits, or services that are as effective as
those provided to others;
(v) Deny a qualified individual with a disability the
opportunity to participate as a member of planning or advisory boards; or
(vi) Otherwise limit a qualified individual with a
disability in the enjoyment of any right, privilege,
advantage, or opportunity enjoyed by others receiving the aid, benefit, or service.
(2) The Board may not deny a qualified individual
with a disability the opportunity to participate in
programs or activities that are not separate or
75
different, despite the existence of permissibly separate or different programs or activities.
(3) The Board may not, directly or through contractual or other arrangements, utilize criteria or methods
of administration, the purpose or effect of which
would:
(i) Subject qualified individuals with a disability to
discrimination on the basis of a disability; or
(ii) Defeat or substantially impair accomplishment
of the objectives of a program or activity with
respect to individuals with a disability.
(4) The Board may not, in determining the site or
location of a facility, make selections the purpose or
effect of which would:
(i) Exclude individuals with a disability from,
deny them the benefits of, or otherwise subject
them to discrimination under any program or
activity conducted by the Board; or
(ii) Defeat or substantially impair the accomplishment of the objectives or a program or activity
with respect to individuals with a disability.
(5) The Board, in the selection of procurement
contractors, may not use criteria that subject qualified individuals with a disability to discrimination on
the basis of a disability.
(6) The Board may not administer a licensing or
certification program in a manner that subjects qualified individuals with a disability to discrimination
on the basis of a disability, nor may the Board
establish requirements for the programs and activities of licensees or certified entities that subject
qualified individuals with a disability to discrimination on the basis of a disability. However, the
programs and activities of entities that are licensed
or certified by the Board are not, themselves, covered by this subpart G.
(c) The exclusion of individuals who do not have a
disability from the benefits of a program limited by
Federal statute or Board order to individuals with a
disability or the exclusion of a specific class of individuals with a disability from a program limited by Federal
statute or Board order to a different class of individuals
with a disability is not prohibited by this subpart G.
(d) The Board shall administer programs and activities
in the most integrated setting appropriate to the needs
of qualified individuals with a disability.
Section 268.704—Employment.
No qualified individual with a disability shall, on the
basis of a disability, be subjected to discrimination in
employment under any program or activity conducted
by the Board. The requirements and procedures of
section 268.303 of this part shall apply to discrimination in employment under this subpart G.
438
Federal Reserve Bulletin • May 1994
Section 268.705—Program accessibility:
Discrimination prohibited.
Except as otherwise provided in section 268.706 of this
part, no qualified individual with a disability shall,
because the Board's facilities are inaccessible to or
unusable by individuals with a disability, be denied the
benefits of, be excluded from participation in, or
otherwise be subjected to discrimination under any
program or activity conducted by the Board.
Section 268.706—Program accessibility:
Existing facilities.
(a) General. The Board shall operate each program or
activity so that the program or activity, when viewed
in its entirety, is readily accessible to and usable by
individuals with a disability. This paragraph (a) does
not:
(1) Necessarily require the Board to make each of its
existing facilities accessible to and usable by individuals with a disability; or
(2) Require the Board to take any action that it can
determine, based on a written record, would result
in a fundamental alteration in the nature of a program or activity or in undue financial and administrative burdens. In those circumstances where the
Board believes that the proposed action would fundamentally alter the program or activity or would
result in undue financial and administrative burdens,
the Board shall establish a written record showing
that compliance with this paragraph (a) would result
in such alterations or burdens. The decision that
compliance would result in such alterations or burdens shall be made by the Board of Governors or
their designee after considering all Board resources
available for use in the funding and operation of the
conducted program or activity, and must be accompanied by a written statement of the reasons for
reaching that conclusion. If an action would result in
such an alteration or such burdens, the Board shall
take any other action that would not result in such
an alteration or such burdens but would nevertheless ensure that individuals with a disability receive
the benefits and services of the program or activity.
(b) Methods. The Board may comply with the requirements of this subpart G through such means as redesign of equipment, reassignment of services to accessible buildings, assignment of aides to individuals with
a disability, home visits, delivery of service at alternate accessible sites, alteration of existing facilities
and construction of new facilities, use of accessible
rolling stock, or any other methods that result in
making its programs or activities readily accessible to
and usable by individuals with a disability. The Board
is not required to make structural changes in existing
facilities where other methods are effective in achieving compliance with this subpart G. In choosing among
available methods for meeting the requirements of this
subpart G, the Board gives priority to those methods
that offer programs and activities to qualified individuals with a disability in the most integrated setting
appropriate.
(c) Time period for compliance. The Board shall
comply with any obligations established under this
subpart G as expeditiously as possible.
Section 268.707—Program accessibility: New
construction and alterations.
Each building or part of a building that is constructed
or altered by, on behalf of, or for the use of the Board,
shall be designed, constructed, or altered so as to be
readily accessible to and usable by individuals with a
disability.
Section 268.708—Communications.
(a) The Board shall take appropriate steps to ensure
effective communication with applicants for employment, participants, personnel of other Federal entities,
and members of the public.
(1) The Board shall furnish appropriate auxiliary
aids where necessary to afford an individual with a
disability an equal opportunity to participate in, and
enjoy the benefits of, a program or activity conducted by the Board.
(i) In determining what type of auxiliary aid is
necessary, the Board shall give primary consideration to the requests of the individual with a
disability.
(ii) The Board need not provide individually prescribed devices, readers for personal use or study,
or other devices of a personal nature.
(2) Where the Board communicates with employees
and others by telephone, telecommunication devices for deaf persons (TDD's) or equally effective
telecommunication systems shall be used.
(b) The Board shall ensure that interested persons,
including persons with impaired vision or hearing, can
obtain information as to the existence and location of
accessible services, activities, and facilities.
(c) The Board shall provide signs at a primary entrance
to any inaccessible facility, directing users to a location at which they can obtain information about accessible facilities. The international symbol for accessibility shall be used at each primary entrance of an
accessible facility.
(d) This subpart G does not require the Board to take
any action that would result in a fundamental alter-
Legal Developments
ation in the nature of a program or activity or in undue
financial and administrative burdens. In those circumstances where the Board believes that the proposed
action would fundamentally alter the program or activity or would result in unduefinancialand administrative
burdens, the Board shall establish a written record
showing compliance with this subpart G would result in
such alterations or burdens. The determination that
compliance would result in such alterations or burdens
shall be made by the Board of Governors or their
designee after considering all Board resources available
for use in the funding and operation of the conducted
program or activity, and must be accompanied by a
written statement of the reasons for reaching that
conclusion. If an action required to comply with this
subpart G would result in such an alteration or such
burdens, the Board shall take any other action that
would not result in such an alteration or such burdens
but would nevertheless ensure that, to the maximum
extent possible, individuals with a disability receive the
benefits and services of the program or activity.
Section 268.709—Compliance procedures.
(a) Applicability. Notwithstanding any other provision
of this part, this section, except as provided in paragraph (b) of this section, rather than subpart B and
section 268.305 of this part, shall apply to all allegations of discrimination on the basis of a disability in
programs or activities conducted by the Board.
(b) Employment complaints. The Board shall process
complaints alleging discrimination in employment on
the basis of a disability in accordance with subpart B
and section 268.305 of this part.
(c) Responsible official. The EEO Programs Director
shall be responsible for coordinating implementation
of this section.
(d) Filing the complaint — (1) Who may file. Any
person who believes that he or she has been subjected to discrimination prohibited by this subpart G
may, personally or by his or her authorized representative, file a complaint of discrimination with the
EEO Programs Director.
(2) Confidentiality. The EEO Programs Director
shall not reveal the identity of any person submitting
a complaint, except when authorized to do so in
writing by the complainant, and except to the extent
necessary to carry out the purposes of this subpart
G, including the conduct of any investigation, hearing, or proceeding under this subpart G.
(3) When to file. Complaints shall be filed within 180
days of the alleged act of discrimination. The EEO
Programs Director may extend this time limit for
good cause shown. For the purpose of determining
when a complaint is timely filed under this para-
439
graph (d), a complaint mailed to the Board shall be
deemed filed on the date it is postmarked. Any other
complaint shall be deemed filed on the date it is
received by the Board.
(4) How to file. Complaints may be delivered or
mailed to the Administrative Governor, the Staff
Director for Management, the EEO Programs Director, the Federal Women's Program Manager, the
Hispanic Program Coordinator, or the Disabled Persons Program Coordinator. Complaints should be
sent to the EEO Programs Director, Board of Governors of the Federal Reserve System, 20th and C
Street, NW, Washington, DC 20551. If any Board
official other than the EEO Programs Director receives a complaint, he or she shall forward the
complaint to the EEO Programs Director.
(e) Acceptance of complaint — (1) The EEO Programs
Director shall accept a complete complaint that is
filed in accordance with paragraph (d) of this section
and over which the Board has jurisdiction. The EEO
Programs Director shall notify the complainant of
receipt and acceptance of the complaint.
(2) If the EEO Programs Director receives a complaint that is not complete, he or she shall notify the
complainant, within 30 days of receipt of the incomplete complaint, that additional information is
needed. If the complainant fails to complete the
complaint within 30 days of receipt of this notice,
the EEO Programs Director shall dismiss the complaint without prejudice.
(3) If the EEO Programs Director receives a complaint over which the Board does not have jurisdiction, the EEO Programs Director shall notify the
complainant and shall make reasonable efforts to
refer the complaint to the appropriate government
entity.
(f) Investigation/conciliation. (1) Within 180 days of
the receipt of a complete complaint, the EEO Programs Director shall complete the investigation of
the complaint, attempt informal resolution of the
complaint, and if no informal resolution is achieved,
the EEO Programs Director shall forward the investigative report to the Staff Director for Management.
(2) The EEO Programs Director may request Board
employees to cooperate in the investigation and
attempted resolution of complaints. Employees who
are requested by the EEO Programs Director to
participate in any investigation under this section
shall do so as part of their official duties and during
the course of regular duty hours.
(3) The EEO Programs Director shall furnish the
complainant with a copy of the investigative report
promptly after completion of the investigation and
provide the complainant with an opportunity for
informal resolution of the complaint.
440
Federal Reserve Bulletin • May 1994
(4) If a complaint is resolved informally, the terms of
the agreement shall be reduced to writing and made
a part of the complaint file, with a copy of the
agreement provided to the complainant. The written
agreement may include a finding on the issue of
discrimination and shall describe any corrective
action to which the complainant has agreed.
(g) Letter of findings. (1) If an informal resolution of
the complaint is not reached, the EEO Programs
Director shall transmit the complaint file to the Staff
Director for Management. The Staff Director for
Management shall, within 180 days of the receipt of
the complete complaint by the EEO Programs Director, notify the complainant of the results of the
investigation in a letter sent by certified mail, return
receipt requested, containing:
(i) Findings of fact and conclusions of law;
(ii) A description of a remedy for each violation
found;
(iii) A notice of right of the complainant to appeal
the letter of findings under paragraph (k) of this
section; and
(iv) A notice of right of the complainant to request
a hearing.
(2) If the complainant does not file a notice of appeal
or does not request a hearing within the times prescribed in paragraph (h)(1) and (j)(l) of this section,
the EEO Programs Director shall certify that the
letter of findings under this paragraph (g) is the final
decision of the Board at the expiration of those times.
(h) Filing an aopeal. (1) Notice of appeal, with or
without a request for hearing, shall be filed by the
complainant with the EEO Programs Director
within 30 days of receipt from the Staff Director for
Management of the letter of findings required by
paragraph (g) of this section.
(2) If the complainant does not request a hearing, the
EEO Programs Director shall notify the Board of
Governors of the appeal by the complainant and that
a decision must be made under paragraph (k) of this
section.
(i) Acceptance of appeal. The EEO Programs Director
shall accept and process any timely appeal. A complainant may appeal to the Administrative Governor
from a decision by the EEO Programs Director that an
appeal is untimely. This appeal shall be filed within 15
calendar days of receipt of the decision from the EEO
Programs Director.
(j) Hearing. (1) Notice of a request for a hearing, with
or without a request for an appeal, shall be filed by
the complainant with the EEO Programs Director
within 30 days of receipt from the Staff Director for
Management of the letter of findings required by
paragraph (g) of this section. Upon a timely request
for a hearing, the EEO Programs Director shall
request that the Board of Governors, or its designee,
appoint an administrative law judge to conduct the
hearing. The administrative law judge shall issue a
notice to the complainant and the Board specifying
the date, time, and place of the scheduled hearing.
The hearing shall be commenced no earlier than 15
calendar days after the notice is issued and no later
than 60 days after the request for a hearing is filed,
unless all parties agree to a different date.
(2) The hearing, decision, and any administrative
review thereof shall be conducted in conformity
with 5 U.S.C. 554-557. The administrative law
judge shall have the duty to conduct a fair hearing,
to take all necessary actions to avoid delay, and to
maintain order. He or she shall have all powers
necessary to these ends, including (but not limited
to) the power to:
(i) Arrange and change the dates, times, and
places of hearings and prehearing conferences and
to issue notice thereof;
(ii) Hold conferences to settle, simplify, or determine the issues in a hearing, or to consider other
matters that may aid in the expeditious disposition
of the hearing;
(iii) Require parties to state their positions in
writing with respect to the various issues in the
hearing and to exchange such statements with all
other parties;
(iv) Examine witnesses and direct witnesses to
testify;
(v) Receive, rule on, exclude, or limit evidence;
(vi) Rule on procedural items pending before him
or her; and
(vii) Take any action permitted to the administrative law judge as authorized by this subpart G or
by the provisions of the Administrative Procedure
Act (5 U.S.C. 554-557).
(3) Technical rules of evidence shall not apply to
hearings conducted pursuant to this paragraph (j)>
but rules or principles designed to assure production
of credible evidence and to subject testimony to
cross-examination shall be applied by the administrative law judge wherever reasonably necessary.
The administrative law judge may exclude irrelevant, immaterial, or unduly repetitious evidence. All
documents and other evidence offered or taken for
the record shall be open to examination by the
parties, and opportunity shall be given to refute
facts and arguments advanced on either side of the
issues. A transcript shall be made of the oral evidence except to the extent the substance thereof is
stipulated for the record. All decisions shall be
based upon the hearing record.
Legal Developments
(4) The costs and expenses for the conduct of a
hearing shall be allocated as follows:
(i) Employees of the Board shall, upon the request
of the administrative law judge, be made available
to participate in the hearing and shall be on official
duty status for this purpose. They shall not receive witness fees.
(ii) Employees of other Federal agencies called to
testify at a hearing, at the request of the administrative law judge and with the approval of the
employing agency, shall be on official duty status
during any absence from normal duties caused by
their testimony, and shall not receive witness fees.
(iii) The fees and expenses of other persons called
to testify at a hearing shall be paid by the party
requesting their appearance.
(iv) The administrative law judge may require the
Board to pay travel expenses necessary for the
complainant to attend the hearing.
(v) The Board shall pay the required expenses and
charges for the administrative law judge and court
reporter.
(vi) All other expenses shall be paid by the parties
incurring them.
(5) The administrative law judge shall submit in
writing recommended findings of fact, conclusions
of law, and remedies to the complainant and the
EEO Programs Director within 30 days, after the
receipt of the hearing transcripts, or within 30 days
after the conclusion of the hearing if no transcripts
are made. This time limit may be extended with the
permission of the EEO Programs Director.
(6) Within 15 calendar days after receipt of the
recommended decision of the administrative law
judge, the complainant may file exceptions to the
recommended decision with the EEO Programs
Director. On behalf of the Board, the EEO Programs Director may, within 15 calendar days after
receipt of the recommended decision of the administrative law judge, take exception to the recommended decision of the administrative law judge and
shall notify the complainant in writing of the Board's
exception. Thereafter, the complainant shall have 10
calendar days to file reply exceptions with the EEO
Programs Director. The EEO Programs Director
shall retain copies of the exceptions and replies to
the Board's exception for consideration by the
Board. After the expiration of the time to reply, the
recommended decision shall be ripe for a decision
under paragraph (k) of this section.
(k) Decision. (1) The EEO Programs Director shall
441
notify the Board of Governors when a complaint is
ripe for decision under this paragraph (k). At the
request of any member of the Board of Governors
made within 3 business days of such notice, the
Board of Governors shall make the decision on the
complaint. If no such request is made, the Administrative Governor, or the Staff Director for Management if he or she is delegated the authority to do
so under section 268.103(a)(2) of this part, shall
make the decision on the complaint. The decision
shall be made based on information in the investigative record and, if a hearing is held, on the hearing
record. The decision shall be made within 60 days of
the receipt by the EEO Programs Director of the
notice of appeal and investigative record pursuant to
paragraph (h)(1) of this section or 60 days following
the end of the period for filing reply exceptions set
forth in paragraph (j)(6) of this section, whichever is
applicable. If the decision-maker under this paragraph (k) determines that additional information is
needed from any party, the decision-maker shall
request the information and provide the other party
or parties an opportunity to respond to that information. The decision-maker shall have 60 days from
receipt of the additional information to render the
decision on the appeal. The decision-maker shall
transmit the decision by letter to all parties. The
decision shall set forth the findings, any remedial
actions required, and the reasons for the decision. If
the decision is based on a hearing record, the
decision-maker shall consider the recommended decision of the administrative law judge and render a
final decision based on the entire record. The decision-maker may also remand the hearing record to
the administrative law judge for a fuller development of the record.
(2) The Board shall take any action required under
the terms of the decision promptly. The decisionmaker may require periodic compliance reports
specifying:
(i) The manner in which compliance with the
provisions of the decision has been achieved;
(ii) The reasons any action required by the final
Board decision has not been taken; and
(iii) The steps being taken to ensure full compliance.
(3) The decision-maker may retain responsibility for
resolving disputes that arise between parties over
interpretation of the final Board decision, or for
specific adjudicatory decisions arising out of implementation.
442
Federal Reserve Bulletin • May 1994
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
Banc One Corporation
Columbus, Ohio
Banc One Arizona Corporation
Phoenix, Arizona
Order Approving the Acquisition of a Bank Holding
Company
Banc One Corporation, Columbus, Ohio ("Banc
One"), and its wholly owned subsidiary, Banc One
Arizona Corporation, Phoenix, Arizona ("Banc One
Arizona"), bank holding companies within the meaning of the Bank Holding Company Act ("BHC Act"),
have applied for the Board's approval under section 3
of the BHC Act (12 U.S.C. § 1842) to acquire Capital
Bancorp, Salt Lake City, Utah ("Capital"), and
thereby indirectly acquire Capital's subsidiary bank,
Capital City Bank, South Salt Lake City, Utah ("Capital Bank").1
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (59 Federal Register 3107 (1994)). The time
for filing comments has expired, and the Board has
considered the application and all comments received
Douglas Amendment
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 such bank is located, by language to that effect
and not merely by implication."3 For purposes of the
Douglas Amendment, the home state of Banc One is
Ohio.4 In considering this proposal, the Board has
analyzed the interstate banking statutes of Utah and
has concluded that Banc One is authorized under the
laws of Utah to acquire Capital and Capital Bank.5 The
Utah Commissioner has approved Banc One's proposed acquisition of Capital. In light of all facts of
record, the Board concludes that its approval of this
proposal is not prohibited by the Douglas Amendment.
Competitive, Financial, Managerial and Supervisory
Considerations
Banc One and Capital compete directly in the Salt
Lake City banking market.6 Upon consummation of
this proposal, the level of market concentration as
measured by the Herfindahl-Hirschman Index
("HHI") for the Salt Lake City banking market would
increase by 28 points to 1528.7 Based on all the facts of
record, including the relatively small increase in market concentration and Banc One's market share and
in light of the factors set forth in section 3(c) of the
the number of competitors remaining in the market,
BHC Act.
Banc One, with total deposits of $62.6 billion, controls banking subsidiaries in Ohio, Indiana, Michigan,
Wisconsin, Illinois, Texas, Colorado, Kentucky, West
Virginia, Arizona, California, Oklahoma, and Utah.
Banc One is the fifth largest commercial banking
organization in Utah, controlling $848.3 million in
deposits, representing 7 percent of total deposits in
commercial banks in Utah. 2 Capital is the 13th largest commercial banking organization in Utah, controlling $107.4 million in deposits, representing less
than 1 percent of total deposits in commercial banks
in the state. Upon consummation of Banc One's
acquisition of Capital, Banc One would become the
fourth largest commercial banking organization in
the state, controlling $955.7 million in deposits, representing 7.9 percent of the total deposits in commercial banks in Utah.
the Board concludes that consummation of this acqui-
1. Banc One Arizona will merge with and into Capital, with Banc
One Arizona surviving the merger.
2. State and market deposit data are as of June 30, 1992.
3. 12 U.S.C. § 1842(d).
4. 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.
5. The Utah interstate banking statute permits an out-of-state bank
holding company to acquire a bank holding company that owns a bank
in Utah if the Utah Commissioner approves the acquisition, and the
Board has previously determined that an Ohio bank holding company
may acquire a bank located in Utah. See Banc One Corporation, 79
Federal Reserve Bulletin 524 (1993); see also Utah Code Ann.
§ 7-1-702(2).
6. The Salt Lake City banking market is approximated by the Salt
Lake City, Utah, RMA.
7. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is below 1000 is considered unconcentrated and a
market in which the post-merger HHI is between 1000 and 1800 is
moderately concentrated. The Justice Department has informed the
Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anti-competitive
effects) unless the post-merger HHI is at least 1800 and the merger
increases the HHI by 200 points. The Justice Department has stated
that the higher than normal HHI thresholds for screening bank
mergers for anti-competitive efFects implicitly recognize the competitive effect of limited purpose lenders and other non-depository
financial entities.
Legal Developments
sition would not have significantly adverse effects on
competition in the Salt Lake City banking market or
any relevant banking market.
The Board also concludes that the financial and
managerial resources and future prospects of Banc
One, Capital, and their respective subsidiaries and the
other supervisory factors the Board must consider
under section 3 of the BHC Act are consistent with
approval of this proposal.
443
specific economically depressed areas in Columbus.10
The Board has carefully reviewed the CRA performance records of Banc One, Capital, and their respective subsidiary banks, as well as all comments received regarding this application, Banc One's
responses to those comments, and all other relevant
facts of record in light of the CRA, the Board's
regulations, and the Statement of the Federal Financial Supervisory Agencies Regarding the Community
Reinvestment Act ("Agency CRA Statement").11
Convenience and Needs Considerations
Records of Performance Under the CRA
In acting upon an application to acquire a depository
institution under the BHC Act, the Board must consider the convenience and needs of the communities to
be served, and take into account the records of the
relevant depository institutions under the Community
Reinvestment Act (12 U.S.C § 2901 et seq.) ("CRA").
The CRA requires the federal financial supervisory
agencies to encourage financial institutions to help
meet the credit needs of the local communities in
which they operate, consistent with the safe and sound
operation of such institutions. To accomplish this end,
the CRA requires the appropriate federal supervisory
authority to "assess the institution's record of meeting
the credit needs of its entire community, including
low- and moderate-income neighborhoods, consistent
with the safe and sound operation of such institution,"
and to take that record into account in its evaluation of
bank holding company applications.8
The Board has received comments from two organizations that raise issues regarding the efforts by
Banc One to meet the credit needs of certain low- and
moderate-income neighborhoods within the communities served by Bank One Texas, N.A. ("Texas Protestant"), and Bank One Columbus, N.A. ("Columbus
Protestant"). The Texas Protestant alleges that Bank
One Texas has redlined Dalworth, a low- and moderate-income neighborhood in Grand Prairie, Texas, and
similarly situated adjacent banking markets.9 The Columbus Protestant objects to the activities of Banc
One's community development corporation ("Banc
One CDC") and Banc One's record of lending in two
8. 12 U.S.C. § 2903.
9. The Dalworth area is approximated by census tract 0161.00 in
Dallas County and census tract 1130.02 in Tarrant County. The Texas
Protestant has criticized the marketing and lending efforts of Bank
One Texas in the Dalworth area for consumer, small business, and
housing-related loans. This commenter also submitted data showing
disparities based on race in income, employment, and educational
levels in the Dalworth area and alleges that Bank One Texas has failed
to develop a plan of action for the Dalworth community and has not
implemented outreach efforts with local community-based organizations, including African-American organizations. In addition, the
Texas Protestant alleges that Bank One Texas does not have a
culturally diverse management staff who are familiar with the Dalworth area.
A. CRA Performance Examinations
The Agency CRA Statement provides that a CRA
examination is an important and often controlling
factor in the consideration of an institution's CRA
record and that these reports will be given great weight
in the applications process.12 The Board notes that
Banc One's lead subsidiary bank in Ohio, Bank One,
Columbus, N. A. (' 'Bank One-Columbus''), received an
"outstanding" rating from the Office of the Comptroller of the Currency ("OCC") at its most recent examination for CRA performance in April 1993. Bank One
Texas received a "satisfactory" rating from the OCC
at its most recent CRA examination in June 1993. In
addition, all but two of Banc One's remaining 79
subsidiary banks received either "outstanding" or
"satisfactory" ratings from their primary regulators in
the most recent examinations of their CRA performance.13 The Board also notes that Capital Bank
received a "satisfactory" rating from its primary regulator, the Federal Deposit Insurance Corporation, at
its most recent examination for CRA performance in
July 1992.
B. Performance Record of Bank One Texas
The Board has recently evaluated the CRA record of
Bank One Texas in connection with Banc One's
10. This commenter also requested that the Board conduct a
comprehensive review of Banc One CDC's business activities since its
formation in 1987.
11. 54 Federal Register 13,742 (1989).
12. Id. at 13,745 (1989).
13. The OCC assigned a rating of "needs to improve" to Bank One
Cleveland. The Board has continued to monitor Bank One Cleveland's progress in addressing the issues raised by this performance
rating. Bank One Cleveland has submitted quarterly progress reports
to the Federal Reserve Bank of Cleveland and to the OCC. Based on
all facts of record, including the steps implemented by Bank One
Cleveland and other supervisory information, the Board believes that
Bank One Cleveland is addressing the areas of weakness noted by the
OCC. The Board will continue to monitor this progress in future
applications by Banc One to establish a depository facility.
444
Federal Reserve Bulletin • May 1994
acquisition of Mid States Bancshares.14 In the Mid
States Order, the Board addressed allegations that
Banc One was not complying with the spirit and
requirements of various laws and regulations designed
to prevent discrimination in bank credit practices,
including the CRA, in attempting to meet the credit
needs of the African-American and ethnic minorities in
several communities, including the community of
Grand Prairie, which includes the Dalworth neighborhood. The Board noted that Bank One Texas offers a
variety of credit products and services designed to
meet the credit needs of low- and moderate-income
and minority neighborhoods within its delineated communities and that in 1992 Bank One Texas had made
approximately $300 million in loans in low- and
moderate-income census tracts. In 1992, the bank
introduced and made loans totalling $9.5 million under
its American Dream Mortgage Program, which provides flexible underwriting criteria. The bank also
made loans totalling $28 million through its Affordable
Housing Lenders in Dallas, Austin, Fort Worth, Houston, Midcities, and San Antonio in 1992. The Board
also noted that the bank has relationships with several
community groups, including the Dallas Affordable
Housing Partnership, Voice of Hope, and The Enterprise Foundation, that work predominantly in AfricanAmerican sections of Dallas.15
Bank One Texas also has engaged in numerous
outreach efforts in order to ascertain the credit needs
of the Dalworth area and advertise its credit products
to residents in the Dalworth area. These efforts have
included participation in public forums in the Dalworth
area, including one that provided counselling to firsttime homebuyers. Representatives of Bank One Texas
also have met with various local business owners,
minority contractors, and representatives of minority
business associations, including the president of the
MidCities Minority Council, in order to discuss specific credit and other banking products offered by the
bank. Bank One Texas officers have also met with
groups of small business owners convened by the
Grand Prairie chapter of the NAACP.
The most recent examination of Bank One Texas for
CRA compliance found no evidence of illegal discrimination or practices that were inconsistent with the
substantive provisions of antidiscrimination laws and
14. Banc One Corporation, 79 Federal Reserve Bulletin 1152 (1993)
(the "Mid States Order").
15. In the Dalworth area, Bank One Texas had 234 loan accounts
totalling $3.6 million outstanding in 1993. Banc One acquired and
retained a substantial number of these loans through its acquisition of
the bank subsidiaries of MCorp, and Bank One Texas has continued to
originate loans in the Dalworth area. In addition, in December 1993,
Bank One Texas assisted in financing the construction of a church
soup kitchen in Dalworth.
regulations. The OCC Examiners concluded that the
bank affirmatively encourages credit applications from
all segments of its delineated community, including
low- and moderate-income neighborhoods, for all
types of credit. The examiners also noted that the bank
is in substantial compliance with laws and regulations
that ensure fair lending practices. In addition, Bank
One Texas has initiated a "second-look" process
whereby all denied secondary mortgage loan applications, portfolio mortgage loan applications, and housing agency mortgage loan applications are reviewed.
Bank One Texas intends to increase the scope of its
current "second-look" program to cover all small
business loan and home improvement loan applications.
Based on all facts of record, and for the reasons
more fully discussed in the Mid States Order, the
Board concludes that the overall CRA record of Bank
One Texas is consistent with approval of this application.
C. Record of Banc One CDC's Activities and
Bank One-Columbus
Activities of the CDC. Columbus Protestant believes
that Banc One CDC's concentration16 in equity investments that qualify for low-income tax credits pursuant
to section 42 of the Internal Revenue Code ("Section
42") is inconsistent with the Federal Reserve's original approval of the formation of Banc One CDC and
demonstrates Banc One's lack of commitment to productive community development.17 Bank holding companies are authorized under Regulation Y to make
equity investments in corporations or projects designed to promote community welfare through, among
other activities, development of low-income areas by
providing housing.18 The Board's Policy Statement on
community welfare projects specifically identifies
projects for the construction or rehabilitation of housing for the benefit of persons of low- or moderateincome as one type of investment that promotes community welfare.19 The Board has previously stated in
16. Banc One CDC estimates that 94 percent of its current investments are in housing projects that qualify for low-income tax credit
treatment. These investments represented approximately $32.9 million as of September 1993.
17. Congress enacted Section 42 to increase the supply of lowincome rental housing by providing tax credits for investments in
qualified low-income housing projects. S. Rep. No. 313, 99th Cong.,
2d Sess. 758 (1986). Section 42 generally requires that the developer
reserve 20 percent of the units for households that earn under 50
percent of the area median income or 40 percent of the units for
households that earn under 60 percent of the area median income.
Recipients of the tax credits must agree to maintain the units as
affordable housing for at least 15 years.
18. 12 C.F.R. 225.25(b)(6).
19. 12 C.F.R. 225.127(d)(1).
Legal Developments
connection with community development activities
under Regulation Y that the receipt of modest profits is
not inconsistent with the nature of such activities.20
The financial advantages for a for-profit CDC from tax
credits received in such investments is one means of
stimulating investments in low-income housing. Thus,
while Columbus Protestant expresses a concern that
Banc One CDC may make a profit on these investments, the Board does not require that these activities
be not-for-profit or eleemosynary.
Columbus Protestant also alleges that the activities
of Banc One CDC are inconsistent with the commitments and representations made in Banc One's application to the Federal Reserve System to form Banc
One CDC. The application filed by Banc One indicates
that Banc One CDC was formed to assist the Banc One
affiliate banks in making investments in projects to
promote community welfare, and describes the following four types of investments that Banc One CDC
proposed to make:
(1) The provision of affordable housing in low-income
areas, including making investments that utilize lowincome housing tax credits under Section 42;
(2) Economic revitalization of low-income areas;
(3) Projects to aid minority business people in the
conduct of their business; and
(4) Projects to provide employment opportunities
for target populations.
The Federal Reserve Bank of Cleveland, acting
pursuant to authority delegated by the Board, approved the application to form Banc One CDC in 1987.
Banc One CDC is, in fact, engaged primarily in one
of the activities proposed in the application to form
Banc One CDC—providing affordable housing in
low-income areas by making investments that utilize
low-income tax credits. Columbus Protestant alleges
that Banc One CDC must engage in all four activities,
and cannot, consistent with its application to the
Board, engage in only one type of community development activity. In fact, however, the original application did not commit and the Federal Reserve
Bank's approval did not require that Banc One CDC
would engage in these other activities. The application listed four types of investments as examples,
and did not include binding commitments to engage
in any particular combination of these activities. In
this regard, Banc One CDC could initiate or terminate any or all of the activities identified in the
application consistent with this approval. Columbus
Protestant also alleges that Banc One CDC has not
20. 48 Federal Register 23,531 (1983); Letter from William Wiles to
all Federal Reserve Banks, dated June 25, 1979 (BHC-79-180).
445
engaged in economic development projects in two
economically depressed areas of Columbus, the Main
Street area and the 1-670 Corridor. Although the
application to form Banc One CDC noted those areas
as examples of the types of areas to be considered for
economic revitalization projects, the approval was
not conditioned upon Banc One CDC's making an
investment in a particular place.
Lending in Specific Areas in Columbus. Columbus
Protestant generally alleges that Banc One has failed
to address the credit needs of the Main Street area and
the 1-670 Corridor, and has misrepresented the investment efforts of Bank One-Columbus in economically
depressed areas of Columbus.
The Board recently reviewed the record of performance by Bank One-Columbus under the CRA.21 As
previously noted, Bank One-Columbus received an
"outstanding" rating for CRA performance in its
most recent CRA examination by the OCC. To help
meet the housing needs of low- and moderate-income
residents, Bank One-Columbus offers a number of
direct and subsidized home-loan products through
the Community Home Buyers Program; the Ohio
Housing Finance Agency First Time Homebuyers
Program; and a variety of government-sponsored
loan programs, including programs through the Federal Housing Authority and the Veterans Administration. In addition, from 1991 through the first
quarter of 1993, the bank made 1,627 small business
loans totalling $61.5 million, $47 million of which was
generated by branches serving low- and moderateincome areas. Furthermore, Bank One-Columbus
participates in the Small Business Administration's
certified and preferred lender programs.
Columbus Protestant also asserts that Banc One has
misrepresented Bank One-Columbus's lending activities in economically depressed areas of Columbus in
previous applications submitted to the Board. The
Board has carefully reviewed these allegations and
does not believe that Banc One's statements were
inaccurate in any material respect.22
21. Banc One Corporation, 79 Federal Reserve Bulletin 1168 (1993).
22. Specifically, Columbus Protestant believes that Banc One
misrepresented a loan commitment as a completed financing and
incorrectly characterized a warehouse used as a transitional housing
facility for which Bank One-Columbus provided financing as a mixeduse facility. In addition, this protestant implies that it was misleading
for Banc One to state that a nonprofit limited partnership is the owner
of the warehouse, because the partnership's limited partners are
for-profit entities. Columbus Protestant also claims that Banc One
provided an incomplete and misleading description of the financing
that Bank One-Columbus provided to the 1-670 Corridor Development
Corporation ("1-670 CDC") for an acquisition of land in the 1-670
Corridor.
446
Federal Reserve Bulletin • May 1994
D. Conclusion Regarding Convenience and
Needs Factors
By order of the Board of Governors, effective
March 28, 1994.
The Board has carefully considered all of the facts of
record, including the comments filed in this case, in
reviewing the convenience and needs factors under the
BHC Act. Based on a review of the entire record of
performance, including information provided by commenters opposing the proposal and the CRA performance examinations by the banks' primary regulators,
the Board believes that the efforts of Banc One and
Capital to help meet the credit needs of all segments of
the communities served by their subsidiary banks,
including low- and moderate-income neighborhoods,
are consistent with approval, and that the comments
submitted in this application do not raise issues that
warrant a denial of the application. The Board concludes that convenience and needs considerations,
including the CRA performance records of the companies and banks involved in these proposals, are consistent with approval of these applications.
Voting for this action: Chairman Greenspan and Governors
Kelley, LaWare, Lindsey, and Phillips.
Based on the foregoing, including the commitments
by Banc One in this application and in related correspondence, and in light of all the facts of record, the
Board has determined that this application should be,
and hereby is, approved. The Board's approval is
specifically conditioned upon compliance by Banc One
with all commitments made in connection with this
application as well as the conditions discussed in this
order. The commitments and conditions relied on by
the Board in reaching this decision are deemed to be
conditions imposed in writing by the Board in connection with its findings and decision, and as such may be
enforced in proceedings under applicable law. This
approval is also conditioned upon Banc One receiving
all necessary Federal and state approvals.
This acquisition should not be consummated before
the thirtieth calendar day following the effective date
of this order, or later than three months following the
effective date of this order, unless such period is
extended for good cause by the Board or the Federal
Reserve Bank of Cleveland, acting pursuant to delegated authority.
The loan commitment that Banc One characterized as a financing
and that Protestant accurately noted was a loan commitment ultimately resulted in a loan being closed by Bank One-Columbus. In
addition, the information submitted by Banc One regarding the
warehouse identified by Protestant stated that the second floor of the
warehouse was being used for transitional housing and that the
partnership that owned the structure had been unsuccessful in finding
a commercial tenant for the first floor of the warehouse. The record
also shows that Banc One accurately characterized a short-term loan
and a letter of credit issued in connection with the 1-670 CDC's
acquisition of land as a "credit relationship designed to facilitate land
acquisition and development."
WILLIAM W . WILES
Secretary of the Board
Pacific Rim Bancorporation
San Francisco, California
Order Approving Formation of a Bank Holding
Company
Pacific Rim Bancorporation, San Francisco, California
("Pacific Rim"), has applied under section 3(a)(1) of
the Bank Holding Company Act, 12 U.S.C.
§ 1842(a)(1) ("BHC Act"), to acquire all of the voting
shares of Golden Gate Bank, San Francisco, California ("Bank"), and thereby become a bank holding
company.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 54,359 (1993)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
Pacific Rim is a non-operating company formed for
the purpose of acquiring Bank. Bank is the 202nd
largest commercial banking organization in California,
controlling deposits of approximately $76.5 million,
representing less than 1 percent of total deposits in
commercial banks in the state.1 Pacific Rim and Bank
do not compete directly in any banking market. Accordingly, based on all the facts of record in this case,
consummation of this proposal would not have a
significantly adverse effect on competition or the concentration of banking resources in any relevant banking market.
In reviewing an application under section 3 of the
BHC Act, the Board also is required to consider the
financial and managerial resources and future prospects of the companies and banks involved, the
convenience and needs of the community to be
served, and other supervisory factors. The record in
this case indicates that Pacific Rim has committed to
provide substantial additional capital to Bank, and,
upon consummation, Pacific Rim and Bank will meet
all applicable regulatory capital requirements. In
light of these and other facts of record, including
1. State data are as of June 30, 1992.
Legal Developments
commitments made by the principals of Pacific Rim
and related parties, the Board concludes that the
financial and managerial resources and future prospects of Pacific Rim and Bank, and the convenience
and needs and other supervisory factors that the
Board is required to consider under section 3 of the
BHC Act, are consistent with approval of this proposal.
In considering the factors relating to the convenience and needs of the community to be served, the
Board has reviewed Bank's record of performance
under the Community Reinvestment Act, 12 U.S.C.
§ 2901 et seq. ("CRA"). Bank received a "needs to
improve" rating from its primary federal regulator,
the Federal Deposit Insurance
Corporation
("FDIC"), at its most recent examination for CRA
performance, as of November 1991. The Board notes
that Bank will be under new ownership as a result of
this proposal and that Pacific Rim has committed to
fully implement a number of steps put in place by
Bank to address specific deficiencies identified by the
FDIC examiners, including expanding Bank's delineated community and increasing outreach efforts
through lending to, and other funding of, local community groups. The FDIC has recently reviewed
these steps and concluded that Bank has made satisfactory progress in addressing the areas of weaknesses identified in the examination.
Based on the foregoing and all the facts of record,
the Board has determined that the application should
be, and hereby is, approved. The Board's approval is
specifically conditioned upon compliance with all the
commitments made by Pacific Rim, including commitments made by the principals of Pacific Rim and
related parties, in connection with this application.
For purposes of this action, the commitments and
conditions relied upon by the Board in reaching its
decision are deemed to be conditions imposed in
writing by the Board in connection with its findings
and decision, and, as such, may be enforced in
proceedings under applicable law.
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 Federal Reserve Bank
of San Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
March 30, 1994.
Orders Issued Under Section 4 of the Bank
Holding Company Act
Cardinal Bancshares, Inc.
Lexington, Kentucky
Order Approving an Application to Engage in
Securities Brokerage Activities and to Act as
' 'Riskless Principal''
Cardinal Bancshares, Inc., Lexington, Kentucky
("Applicant"), 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)) and section
225.23(a)(3) of the Board's Regulation Y (12 C.F.R.
225.23(a)(3)) to engage through its indirect subsidiary,
Mutual Service Corporation, Somerset, Kentucky
("Company"), in securities brokerage activities pursuant to section 225.25(b)(15) of Regulation Y
(12 C.F.R. 225.25(b)(15)), and in buying and selling
securities on the order of investors as "riskless principal." Applicant proposes that Company enter into a
joint venture arrangement with Compulife Investor
Services, Inc., Richmond, Virginia ("Compulife"),
whereby Company and Compulife will conduct the
proposed activities at branches of Applicant's thrift
subsidiary, Mutual Federal Savings Bank, Somerset,
Kentucky ("Mutual Thrift").1
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (59 Federal Register 8627 (1994)). 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.
Applicant, with approximately $482.1 million in
total consolidated assets, operates three subsidiary
banks and two savings associations in Kentucky.2
Applicant also engages directly and through subsidiaries in permissible nonbanking activities. Compulife
currently engages in securities brokerage activities and
buying and selling securities on the order of investors
as a "riskless principal."
The Board previously has determined by regulation
that engaging in securities brokerage services is an
activity that is closely related to banking and permissible for bank holding companies under section 4(c)(8)
of the BHC Act.3 Applicant has committed that Company will conduct these activities in accordance with
Voting for this action: Chairman Greenspan and Governors
Kelley, LaWare, Lindsey, and Phillips.
WILLIAM W . WILES
Secretary of the Board
447
1. Company is a direct subsidiary of Mutual Thrift.
2. Asset data are as of December 31, 1993.
3. See 12 C.F.R. 225.25(b)(15).
448
Federal Reserve Bulletin • May 1994
the limitations imposed by section 225.25(b)(15) of
Regulation Y.
"Riskless principal" is the term used in the securities business to refer to a transaction in which a
broker-dealer, after receiving an order to buy (or sell)
a security from a customer, purchases (or sells) the
security for its own account to offset a contemporaneous sale to (or purchase from) the customer.4 "Riskless principal" transactions are understood in the
industry to include only transactions in the secondary
market. Thus, Applicant proposes that Company
would not act as a "riskless principal" in selling
securities at the order of a customer that is the issuer
of the securities to be sold or in any transaction where
Company has a contractual agreement to place the
securities as agent of the issuer. Company also would
not act as a "riskless principal" in any transaction
involving a security for which it makes a market.
The Board previously has determined by Order that,
subject to prudential limitations that address the potential for conflicts of interests, unsound banking
practices, or other adverse effects, the proposed 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.5 The Board
also previously has determined that 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 o n bank-ineligible securities
underwriting
and dealing.6 Applicant has committed that Company
will conduct its "riskless principal" activities using
the same methods and procedures, and subject to the
same prudential limitations, established by the Board
in the Bankers Trust Order and the J.P. Morgan
Order, including the comprehensive framework of
restrictions designed to avoid potential conflicts of
interests, unsound banking practices, and other adverse effects imposed by the Board in connection with
underwriting and dealing in securities.7
4. See Securities and Exchange Commission Rule 10b-10. 17 C.F.R.
240.1Ob-10(a)(8)(i).
5. See Bankers Trust New York Corporation, 75 Federal Reserve
Bulletin 829 (1989) ("Bankers Trust Order"); J.P. Morgan & Company Incorporated, 76 Federal Reserve Bulletin 26 (1990) ("7.P.
Morgan Order").
6. See Bankers Trust Order.
7. See J.P. Morgan Order and Bankers Trust Order. The prudential
limitations detailed more fully in those Orders require, among other
things, that in conducting the proposed "riskless principal" activities,
Company will maintain specific records that will clearly identify all
"riskless principal" transactions, and Company will not engage in any
"riskless principal" transactions for any securities carried in its
inventory. When acting as a "riskless principal," Company will
engage only in transactions in the secondary market, and not at the
In prior decisions, the Board has expressed concern
that joint ventures could potentially lead to a matrix of
relationships between co-venturers and their affiliates
that could break down the legally mandated separation
of banking and commerce, create the possibility of
conflicts of interests and other adverse effects that the
BHC Act was designed to prevent, or impair or give
the appearance of impairing the ability of the banking
organization to function effectively as an independent
and impartial provider of credit.8 Further, joint ventures must be carefully analyzed for any possible
adverse effects on competition and on the financial
condition of the banking organization involved in the
proposal.9
Applicant proposes to conduct the proposed activities through a joint venture arrangement with Compulife whereby joint employees of Company and Compulife will conduct the proposed activities at branches
of Mutual Thrift.10 Applicant also has entered into
certain commitments previously relied on by the
Board to address issues raised by joint venture proposals.11 Based on these and other commitments made
order of a customer that is the issuer of the securities to be sold, will
not act as "riskless principal" in any transaction involving a security
for which it makes a market, nor hold itself out as making a market in
the securities that it buys and sells as a "riskless principal." Moreover, Company will not engage in "riskless principal" transactions on
behalf of any foreign affiliates that engage in securities dealing
activities outside the United States, and will not act as "riskless
principal" for registered investment company securities. In addition,
Company will not act as a "riskless principal" with respect to any
securities of investment companies that are advised by Applicant or
any of its affiliates.
8. See, e.g., The Fuji Bank, Limited, 75 Federal Reserve Bulletin
577 (1989); Amsterdam-Rotterdam Bank, N.V., 70 Federal Reserve
Bulletin 835 (1984).
9. See id.
10. The Board previously has expressed concern over joint ventures
involving a bank holding company and a firm engaged in securities
activities that are impermissible for a bank holding company because
such joint ventures have the potential for the mingling of permissible
and impermissible securities activities. See The Chuo Trust and
Banking Company, Limited, 78 Federal Reserve Bulletin 446 (1992).
In this case, however, Compulife engages only in activities that are
permissible for bank holding companies under the BHC Act and
Applicant has committed to cease engaging in the proposed activities
if Compulife or its affiliates engage in any securities activity that is
impermissible for a state member bank under the Glass-Steagall Act,
or any activity that is impermissible under the BHC Act.
11. In particular, Applicant has committed that:
(1) The proposed joint venture will not engage in any additional
activities without Applicant's knowledge and consent, as well as
prior authorization of the Federal Reserve System;
(2) Applicant will not solicit business on behalf of Compulife; and
(3) Compulife, Applicant, and Company do not currently have or
expect to have any other significant relationships other than the
proposed joint venture.
Furthermore, Applicant and its subsidiaries will act at all times on
an arm's-length basis in deciding whether to extend credit to Compulife or Compulife's competitors, and Applicant and its banking subsidiaries will not take into account the fact that a potential borrower
could be a competitor of the joint venture in determining whether to
extend credit to that borrower. Applicant also has committed that the
proposed joint venture will observe the anti-tying provisions of the
Legal Developments
by Applicant, the Board believes that the structure of
the joint venture in this case is consistent with the
provisions of section 4 of the BHC Act and prior
Board cases.
In order to approve this application, the Board also
is required to determine that the performance of the
proposed activities by Applicant can reasonably be
expected to produce benefits to the public that would
outweigh possible adverse effects under the proper
incident to banking standard of section 4(c)(8) of the
BHC Act. 12
Under the framework established in this and prior
Board decisions, consummation of this proposal is not
likely to result in any significantly adverse effects,
such as an undue concentration of resources, decreased or unfair competition, conflicts of interests, or
unsound banking practices. Moreover, the Board has
determined that performance of the proposed activities by Applicant can reasonably be expected to produce public benefits that would outweigh any adverse
effects under the proper incident to banking standard
of section 4(c)(8) of the BHC Act.
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 Applicant and its subsidiaries and the
effect of the transaction on these resources.13 Based
on the facts of this case, the Board concludes that
financial considerations are consistent with approval
of this application. The managerial resources of Applicant also are consistent with approval.
Based on the foregoing and all the facts of record,
the Board has determined to, and hereby does, approve the application subject to the terms and conditions set forth in this order, and in the Board regulations and orders noted above. The Board's
determination also is subject to all the terms and
conditions set forth in its 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. The Board's decision is specifically conditioned on compliance with all
the commitments made in this application, including
the commitments discussed in this order and the
conditions set forth in the Board orders noted above.
Bank Holding Company Act Amendments of 1970 and will be treated
as an affiliate for purposes of section 23A and section 23B of the
Federal Reserve Act (12 U.S.C. §§ 371c and 371c-l).
12. 12 U.S.C. § 1843(c)(8).
13. See 12 C.F.R. 225.25.
449
These commitments and conditions shall be deemed to
be conditions imposed in writing by the Board in
connection with its findings and decisions, and, as
such, may be enforced in proceedings under applicable
law.
This transaction shall not be consummated later
than three months after the effective date of this order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Cleveland,
pursuant to delegated authority.
By order of the Board of Governors, effective
March 30, 1994.
Voting for this action: Chairman Greenspan and Governors
Kelley, LaWare, Lindsey, and Phillips.
WILLIAM W . WILES
Secretary of the Board
First Chicago Corporation
Chicago, Illinois
Order Approving Application to Engage De Novo in
Underwriting and Dealing in All Types of Debt
Securities on a Limited Basis, and Certain Other
Securities- and Derivatives-Related Activities
First Chicago Corporation, Chicago, Illinois ("First
Chicago"), 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) of the
Board's Regulation Y (12 C.F.R. 225.23(a)) to engage
de novo through its wholly owned subsidiary, First
Chicago Capital Markets, Inc., Chicago, Illinois
("Company"), in the following nonbanking activities:
(1) Underwriting and dealing in, to a limited extent,
all types of debt securities, including sovereign debt
securities, corporate debt securities, convertible
debt securities, and debt securities issued by a trust
or other vehicle secured by or representing interests
in debt obligations ("bank-ineligible securities");1
(2) Acting as agent in the private placement of all
types of securities, and providing related advisory
services;
(3) Purchasing and selling all types of securities as a
"riskless principal" on the order of customers;
1. Company would not underwrite or deal in any securities issued by
an open-end investment company. In addition, Company would not
underwrite or deal in any convertible debt securities unless, on the
date the securities are issued, the conversion price is greater than 115
percent of the market price of the equity security into which the debt
security is convertible.
450
Federal Reserve Bulletin • May 1994
(4) Providing full-service securities brokerage services, pursuant to section 225.25(b)(15) of Regulation Y; and
(5) Providing financial and transaction advice regarding the structuring and arranging of swaps,
caps, and similar transactions relating to interest
rates, currency exchange rates or prices, and economic and financial indices, and similar transactions, pursuant to section 225.25(b)(4)(vi)(A)(2) of
Regulation Y.
First Chicago seeks approval for Company to conduct the proposed activities throughout the United
States.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published (59 Federal Register 9215,
10,385 (1994)). 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 Chicago, with total consolidated assets of
$52.6 billion, is the eleventh largest commercial banking organization in the United States.2 First Chicago
operates five bank subsidiaries in Illinois, Wisconsin,
and Delaware, and engages through its subsidiaries in
a broad range of permissible nonbanking activities in
the United States. Company currently is engaged in
limited bank-ineligible securities underwriting and
dealing activities that are permissible under section 20
of the Glass-Steagall Act (12 U.S.C. § 377).3 Company is, and will continue to be, a broker-dealer
registered with the Securities and Exchange Commission ("SEC") and a member of the National Association of Securities Dealers, Inc. ("NASD"). Accordingly, Company is subject to the record-keeping and
reporting obligations, fiduciary standards, and other
requirements of the Securities Exchange Act of 1934
(15 U.S.C. § 78a et seq.), the SEC, and the NASD.
Underwriting and Dealing Activities
The Board has previously determined that, subject to
the prudential framework of limitations established
2. Asset data are as of December 31, 1993.
3. In particular, Company has authority to underwrite and deal in,
to a limited extent, certain municipal revenue bonds, 1-4 family
mortgage-related securities, commercial paper, and consumer receivable-related securities. In addition, Company is authorized to underwrite and deal in securities that state member banks are permitted to
underwrite and deal in under sections 5(c) and 16 of the Glass-Steagall
Act (12 U.S.C. §§ 335 and 24(7)) ("bank-eligible securities"), pursuant to section 225.25(b)(16) of Regulation Y (12 C.F.R. 225.25(b)(16)),
and to conduct activities that are necessary incidents to its underwriting and dealing activities. See First Chicago Corporation, 74 Federal
Reserve Bulletin 706 (1988).
in previous decisions to address the potential for
conflicts of interests, unsound banking practices, or
other adverse effects, the proposed underwriting and
dealing activities involving bank-ineligible securities
are so closely related to banking as to be proper
incidents thereto within the meaning of section
4(c)(8) of the BHC Act. 4 First Chicago has committed that Company will conduct the proposed underwriting and dealing activities using the same methods
and procedures, and subject to the same prudential
limitations, as were established by the Board in the
Section 20 Orders and other previous cases. 5
The Board also has previously determined that the
conduct of the proposed underwriting and dealing
activities is consistent with section 20 of the GlassSteagall Act (12 U.S.C. § 377), provided that the
company engaged in the underwriting and dealing
activities derives no more than 10 percent of its total
gross revenue from underwriting and dealing in bank-
4. See Canadian Imperial Bank of Commerce, et al., 76 Federal
Reserve Bulletin 158 (1990); J.P. Morgan & Co. Incorporated, et al.,
75 Federal Reserve Bulletin 192 (1989), affd sub nom. Securities
Industries Ass'n v. Board of Governors of the Federal Reserve
System, 900 F.2d 360 (D.C. Cir. 1990); Citicorp, et al., 73 Federal
Reserve Bulletin 473 (1987), ajjfd sub nom. Securities Industry Ass'n
v. Board of Governors of the Federal Reserve System, 839 F.2d 47 (2d
Cir. 1988), cert, den., 486 U.S. 1059 (1988) (collectively, "Section 20
Orders").
5. First Chicago has proposed that First Chicago Capital Markets
Asia, Limited ("FCCMA"), an indirect foreign subsidiary of The First
National Bank of Chicago, be permitted to act as agent for Company,
and to engage in marketing activities on behalf of Company, outside
the United States, in connection with the purchase and sale of
bank-eligible securities. First Chicago has stated that FCCMA is a
corporation organized under the laws of Hong Kong that operates in
accordance with the Board's Regulation K (12 C.F.R. Part 211).
The proposed agency and marketing activities will be conducted
only in connection with securities that state member banks are
authorized to underwrite and deal in under sections 5(c) and 16 of the
Glass-Steagall Act (12 U.S.C. §§ 335 and 24(7)). In addition, the
proposed activities will be conducted in such a manner as not to
undermine the operational separation between Company and its
banking affiliates. First Chicago has committed that Company will
remain separately incorporated, capitalized, and funded, and will be
operationally distinct from its bank affiliates, and that there will be no
employees in common between Company and any of its bank affiliates
or their subsidiaries. First Chicago also has committed that Company's arrangements to sell bank-eligible securities through FCCMA
will not be an exclusive arrangement. In other words, Company will
sell such securities both directly and through other brokers, and
FCCMA will sell such securities underwritten or dealt in by other
broker-dealers. The Board also notes that Company's role in underwriting or dealing in the securities brokered by FCCMA would be fully
disclosed to FCCMA's brokerage customers, and such brokerage
transactions would be conducted on an arm's length basis.
The Board has previously determined that, subject to similar
limitations, the conduct of marketing activities with respect to bankeligible securities by a bank or its subsidiary on behalf of a section 20
affiliate would not contravene the policies underlying the section 20
prudential framework, and would be consistent with the GlassSteagall Act and the BHC Act. See Chemical Banking Corporation, 80
Federal Reserve Bulletin 49 (1994); BankAmerica Corporation, 79
Federal Reserve Bulletin 1163 (1993).
Legal Developments
ineligible securities over any two-year period.6 First
Chicago has committed that Company will conduct
its underwriting and dealing activities with respect to
bank-ineligible securities subject to this 10 percent
revenue test. 7
Private Placement and "Riskless Principal"
Activities
Private placement involves the placement of new
securities with a limited number of sophisticated purchasers in a nonpublic offering. A financial intermediary in a private placement transaction acts solely as an
agent for the issuer in soliciting purchasers, and does
not purchase the securities and attempt to resell them.
Securities that are privately placed are not subject to
the registration requirements of the Securities Act of
1933, and are offered only to financially sophisticated
institutions and individuals and not to the public.
Company would not privately place registered securities and would only place securities with customers
who qualify as accredited investors.
"Riskless principal" is the term used in the securities business to refer to a transaction in which a
broker-dealer, after receiving an order to buy (or sell)
a security from a customer, purchases (or sells) the
security for its own account to offset a contemporaneous sale to (or purchase from) the customer.8 Riskless
principal transactions are understood in the industry to
include only transactions in the secondary market.
6. See Section 20 Orders. Compliance with the 10 percent revenue
limitation shall be calculated in accordance with the method stated in
the Section 20 Orders, as modified by the Order Approving Modifications to the Section 20 Orders, 75 Federal Reserve Bulletin 751 (1989),
the Order Approving Modifications to the Section 20 Orders, 79
Federal Reserve Bulletin 226 (1993), and the Supplement to Order
Approving Modifications to Section 20 Orders, 79 Federal Reserve
Bulletin 360 (1993) (collectively, "Modification Orders"). In this
regard, the Board notes that First Chicago has not adopted the
Board's alternative indexed revenue test to measure compliance with
the 10 percent limitation on bank-ineligible securities activities, and,
absent such election, will continue to employ the Board's original
10 percent revenue standard.
7. First Chicago also has proposed that Company engage in certain
hedging and advisory activities in connection with the proposed
underwriting and dealing activities. Advice rendered in connection
with these activities could include advice to issuers regarding market
conditions and the pricing of an issue, as well as advice to potential
purchasers consisting of credit and market risk analysis. First Chicago
maintains that these additional activities are incidental to the proposed
underwriting and dealing activities. In this regard, the Board notes
that Company may provide services that are necessary incidents to
the proposed underwriting and dealing activities, provided that any
such activities are treated as part of the bank-ineligible securities
activities unless Company has received specific approval under section 4(c)(8) of the BHC Act to conduct the activities independently.
Until such approval is obtained, any revenues from the incidental
activities must be counted as ineligible revenues subject to the
10 percent revenue limitation set forth in the Section 20 Orders, as
modified by the Modification Orders.
8. See 17 C.F.R. 249.10b-10(a)(8)(i).
451
Thus, Company would not act as a riskless principal in
selling securities at the order of a customer that is the
issuer of the securities to be sold or in any transaction
in which Company has a contractual agreement to
place the securities as agent of the issuer. Company
also would not act as a riskless principal in any
transaction involving a security for which it makes a
market.
The Board has previously determined that, subject
to prudential limitations that address the potential for
conflicts of interests, unsound banking practices, or
other adverse effects, the proposed private placement
and riskless principal activities are so closely related
to banking as to be proper incidents thereto within the
meaning of section 4(c)(8) of the BHC Act. 9 The Board
has also previously 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 or
dealing in securities for purposes of section 20 of the
Glass-Steagall Act, and, accordingly, that revenue
derived from these activities is not subject to the
10 percent revenue limitation on bank-ineligible securities underwriting and dealing.10 First Chicago has
committed that Company will conduct its private
placement and riskless principal activities using the
same methods and procedures, and subject to the
same prudential limitations, as were established by the
Board in the Bankers Trust Order, the J.P. Morgan
Order, and other orders approving the conduct of
private placement and riskless principal activities.11
These methods, procedures, and prudential limitations
include the comprehensive framework of restrictions
designed to avoid potential conflicts of interests, unsound banking practices, and other adverse effects
imposed by the Board in connection with underwriting
and dealing in securities.
Full-Service Brokerage Activities
The Board has previously determined by regulation
that full-service brokerage activities, the provision of
9. See J.P. Morgan & Company Incorporated, 76 Federal Reserve
Bulletin 26 (1990) ("J.P. Morgan Order"); Bankers Trust New York
Corporation, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust
Order").
10. See Bankers Trust Order.
11. With respect to Company's riskless principal activities, First
Chicago has proposed that Company be permitted to enter bid or ask
quotations, or publish "offering wanted" or "bid wanted" notices, on
trading systems other than an exchange or the NASDAQ, provided
that Company not enter price quotations on different sides of the
market for a particular security without a separation of at least two
business days between such quotations. The Board has previously
permitted this practice in connection with riskless principal activities.
See Dauphin Deposit Corporation, 11 Federal Reserve Bulletin 672
(1991).
452
Federal Reserve Bulletin • May 1994
securities brokerage and investment advisory services
on a combined basis, are closely related to banking
within the meaning of the BHC Act.12 First Chicago
has committed that Company will conduct these brokerage activities in accordance with the limitations set
forth in Regulation Y. 13
Derivatives Advisory Activities
The Board has previously determined by regulation
that the provision to sophisticated customers of "financial and transaction advice regarding the structuring and arranging of swaps, caps, and similar transactions relating to interest rates, currency exchange
rates or prices, and economic and financial indices,
and similar transactions", is an activity closely related
to banking within the meaning of the BHC Act.14
Other Considerations
In every case 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 those resources.15
The Board has reviewed the capitalization of First
Chicago and Company in accordance with the standards set forth in the Section 20 Orders, and finds the
capitalization of each to be consistent with approval of
this proposal. With respect to the capitalization of
Company, this determination is based upon all the
facts of record, including First Chicago's projections
with respect to Company's equity capital and the
volume of Company's underwriting and dealing activities in bank-ineligible securities. On the basis of all the
facts of record, including the foregoing, the Board has
concluded that financial and managerial considerations
are consistent with approval.
12. See 12 C.F.R. 225.25(b)(15)(ii).
13. See 12 C.F.R. 225.25(b)(4) and (b)(15). In order to address
potential conflicts of interests arising from Company's conduct of
these brokerage activities together with underwriting and dealing in
bank-ineligible securities, First Chicago has committed that whenever
Company provides full-service brokerage services with respect to
ineligible securities that it holds as principal, Company will inform its
customers at the commencement of the relationship that, as a general
matter, Company may be a principal or may be engaged in underwriting with respect to, or may purchase from an affiliate, those securities
for which brokerage and advisory services are provided. In addition,
at the time any brokerage order is taken, the customer will be
informed (usually orally) whether Company is acting as agent or
principal with respect to a security. Confirmations sent to customers
also will state whether Company is acting as agent or principal. See
PNC Financial Corp., 75 Federal Reserve Bulletin 396 (1989).
14. See 12 C.F.R. 225.25(b)(4)(vi)(A)(2). See also Signet Banking
Corporation, 73 Federal Reserve Bulletin 59 (1987).
15. See 12 C.F.R. 225.24. See also The Fuji Bank, Limited, 75
Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73
Federal Reserve Bulletin 155 (1987).
In order to approve this application, the Board also
must determine that the performance of the proposed
activities by Company "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). Under the framework and
conditions 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. Moreover, the Board expects that the
de novo entry of Company into the market for the
proposed services in the United States would provide
added convenience to First Chicago's customers,
and would increase the level of competition among
existing providers of these services. For these reasons, the Board has determined that the performance
of the proposed activities by First Chicago can
reasonably be expected to produce public benefits
that outweigh possible adverse effects under the
proper incident to banking standard of section 4(c)(8)
of the BHC Act.
Accordingly, and for the reasons set forth in the
Section 20 Orders, the Board has concluded that
First Chicago's proposal to engage through Company
in the proposed activities is consistent with the
Glass-Steagall Act, and that the proposed activities
are so closely related to banking as to be proper
incidents thereto within the meaning of section
4(c)(8) of the BHC Act, provided that First Chicago
limits Company's activities as specified in this order
and the Section 20 Orders, as modified by the Modification Orders.
On the basis of the foregoing and all the facts of
record, including the commitments furnished by First
Chicago, the Board has determined that the application should be, and hereby is, approved, subject to all
the terms and conditions of this order and the Section
20 Orders, as modified by the Modification Orders.
The Board's approval of this proposal extends only to
activities conducted within the limitations of those
orders and this order, including the Board's reservation of authority to establish additional limitations to
ensure that Company's activities are consistent with
safety and soundness, conflicts of interests, and other
relevant considerations under the BHC Act. Underwriting and dealing in any manner other than as
approved in this order and the Section 20 Orders is not
within the scope of the Board's approval and is not
authorized for Company.
Included among these conditions is that Company
Legal Developments
may not commence the proposed underwriting and
dealing activities until the Board has determined that
First Chicago and Company have established policies
and procedures to ensure compliance with the requirements of this order, including computer, audit,
and accounting systems, internal risk management
controls, and the necessary operational and managerial infrastructure. The Federal Reserve Bank of
Chicago has reviewed the operational and managerial
infrastructure of Company, including its computer,
audit, and accounting systems, and internal risk
management procedures and controls. The Reserve
Bank has determined that Company has established
an operational and managerial infrastructure for underwriting and dealing in all types of debt securities
that is adequate to ensure compliance with the requirements of this order and the Section 20 Orders.
On the basis of the Reserve Bank's review and all the
facts of record, including the steps taken and the
policies and procedures implemented by First Chicago and by Company in connection with this application and in response to the infrastructure review,
the Board has determined that Company has in place
the managerial and operational infrastructure and
other policies and procedures necessary to comply
with the requirements of the Section 20 Orders and
this order. Accordingly, Company may commence
underwriting and dealing in all types of debt securities as permitted by, and subject to the conditions of,
this order.
The Board's determination also is subject to all the
terms and conditions set forth in Regulation Y, including those in sections 225.4(d) and 225.23(b) of Regulation Y, and to the Board's authority to require such
modification or termination of the activities of a bank
holding company or any of its subsidiaries as the
Board finds necessary to ensure compliance with, and
to prevent evasion of, the provisions of the BHC Act
and the Board's regulations and orders issued thereunder. The Board's decision is specifically conditioned
on compliance with all the commitments made in
connection with this application, including the commitments discussed in this order, and the conditions
set forth in this order and the above-noted Board
regulations and orders. These commitments and conditions are deemed to be conditions imposed in writing
by the Board in connection with its findings and
decision, and, as such, may be enforced in proceedings under applicable law.
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 Chicago,
acting pursuant to delegated authority.
453
By order of the Board of Governors, effective
March 25, 1994.
Voting for this action: Chairman Greenspan and Governors
Kelley, Lindsey, and Phillips. Absent and not voting: Governor LaWare.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Norwest Corporation
Minneapolis, Minnesota
Order Approving the Acquisition of a Title Insurance
Agency
Norwest Corporation, Minneapolis, Minnesota ("Norwest"), 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) of the
Board's Regulation Y (12 C.F.R. 225.23(a)) to acquire
Double Eagle Financial Corporation, Phoenix, Arizona ("Double Eagle"), and Double Eagle's subsidiary, United Title Agency of Arizona, Phoenix, Arizona ("United Title"), and thereby engage in title
insurance agency and real estate settlement activities.
These activities will be performed in 36 offices in
Arizona.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (59 Federal Register 5607 (1994)). 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.
Norwest, with total consolidated assets of
$50.8 billion, is the largest commercial banking organization in Minnesota.1 Norwest controls 113 banking subsidiaries that operate in 15 states and owns a
number of subsidiaries engaged in nonbanking activities.
The Board previously has determined that Norwest
may engage in general insurance agency activities,
including the sale as agent of title insurance, pursuant
to section 4(c)(8)(G) of the BHC Act ("exemption
G").2 The Board also has concluded that real estate
1. Data are as of December 31, 1993.
2. Norwest Corporation, 76 Federal Reserve Bulletin 1058 (1990)
("Norwest/American Land Title")-, See First Wisconsin Corporation,
75 Federal Reserve Bulletin 31 (1989); affd American Land Title
Association v. Board of Governors, 892 F.2d 1059 (D.C. Cir. 1989).
The exemption, one of several specific exemptions (A through G)
enacted by Title VI of the Gara-St. Germain Depository Institutions
454
Federal Reserve Bulletin • May 1994
settlement services are closely related to banking, and
Norwest proposes to conduct the same activities previously approved by the Board.3 Norwest also has
committed to conduct these activities under the same
terms and subject to the same conditions as in the
previous approvals.4 Accordingly, the Board believes
that the proposed real estate settlement services are
activities closely related to banking for purposes of
section 4 of the BHC Act.
In every case involving a nonbanking acquisition of
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. Based on
the facts of this case, the financial and managerial
resources of Norwest and its subsidiaries are consistent with approval.5
Act of 1982 to the Garn Act's general prohibition on insurance
activities by bank holding companies, authorizes those bank holding
companies that engaged in insurance activities prior to 1971 with prior
Board approval, to engage, or control a company engaged in insurance
agency activities.
3. Norwest Corporation, 79 Federal Reserve Bulletin 517 (1993)
("Norwest/Community Guaranty'"); Norwest!American Land Title,
supra. These real estate settlement services are:
(1) Reviewing the status of the title in the title commitment,
resolving any exceptions to the title, and reviewing the purchase
agreement to identify any requirements in it in order to ensure
compliance with them;
(2) Verifying the payment of existing loans secured by the real estate
and verifying the amount of and then calculating the pro rating of
special assessments and taxes on the property;
(3) Obtaining an updated title insurance commitment to the date of
closing, preparing the required checks, deeds, affidavits, and obtaining any authorization letter needed;
(4) Establishing a time and place for the closing, and ensuring that
all parties properly execute all appropriate documents and meet all
commitments;
(5) Collecting and disbursing funds for the parties, holding funds in
escrow pending satisfaction of certain commitments, preparing the
HUD settlement statement, the deed of trust, mortgage notes, the
Truth-in-Lending statement, and purchaser's affidavits; and
(6) Recording all these documents as required under law.
4. Norwest has committed to advise its customers that they are not
required to purchase its real estate settlement services in connection
with the purchase of title insurance in a real estate transaction.
Norwest has further committed that it will not require its customers to
purchase its real estate settlement services in connection with a loan
origination. In addition, section 106 of the Bank Holding Company
Act Amendments of 1970 generally would prohibit Norwest from tying
extensions of credit to the purchase of services from United Title. See
Norwest/Community Guaranty, supra; Norwest!American Land Title,
supra.
5. The Board received a comment from several organizations
(together "Community Forum") expressing concern that Norwest has
not complied with its obligations under the Community Reinvestment
Act ("CRA"). The Board previously has determined that the CRA by
its terms generally does not apply to applications by bank holding
companies to acquire nonbanking companies under section 4(c)(8) of
the BHC Act. See The Mitsui Bank, Limited, 76 Federal Reserve
Bulletin 381 (1990).
Community Forum also has raised issues regarding the absence of
African-Americans and Hispanics in upper level management positions at United Title. United Title disputes that any illegal discrimination has occurred. The Board notes that these allegations are
currently under review by the Equal Employment Opportunity Com-
In order to approve this proposal, the Board also
must determine that the performance of the proposed
activities by Norwest can reasonably be expected to
produce public benefits that would outweigh possible
adverse efFects under the proper incident to banking
standard of section 4(c)(8) of the BHC Act. In this
regard, the Board has received a comment from National Title Resource Agency ("National Title"), a
title insurance and real estate settlement agency in
Arizona, alleging that the proposal would have an
adverse competitive effect in the markets for these
services by eliminating the largest independent title
insurance agency in the state.6
National Title's comments have been carefully reviewed in light of all facts of record. Initially, the
Board notes Norwest does not currently provide title
insurance agency and real estate settlement services in
Arizona, and that the acquisition of United Title by
Norwest will not change the number of competitors in
the market for these services, or the concentration in
the market. In addition, there are numerous providers
of real estate settlement services in the Phoenix area,
including both independent firms and firms associated
with mortgage providers. Finally, as previously stated,
Norwest has committed to advise all customers that
they are not required to purchase title insurance
services or real estate settlement services from Norwest as a condition of making or fixing the consideration for a loan or of providing any insurance in
connection with the real estate transaction. Based on
all facts of record, the Board concludes that the
mission ("EEOC"), the federal agency authorized to adjudicate
allegations of illegal discrimination in employment to provide appropriate relief if the allegations are substantiated. The EEOC has not
determined at this stage of its review whether these allegations are
supported by the facts. In connection with this application, Norwest
has committed that, upon the acquisition of United Title by Norwest,
Norwest will implement its personnel policies and programs at United
Title, including its affirmative action and equal opportunity programs.
Based on all facts of record, the Board concludes that these comments
do not warrant denial of this application.
6. National Title also believes that the proposal would have an
adverse effect on smaller mortgage bankers in direct competition with
Norwest for mortgage loans in the Phoenix area because Norwest will
acquire a database of mortgage customers referred to United Title.
United Title has stated that it does not manufacture a database or
customer list. Moreover, the title information that United Title
generates is from public records and would be identical to information
that other title companies in the Phoenix market have available to
them. In addition, Norwest has committed to advise all customers that
they are not required to purchase title insurance services or real estate
settlement services from Norwest as a condition of making or fixing
the consideration for a loan or of providing any insurance in connection with the real estate transaction.
National Title also questions whether United Title will comply with
Arizona's "controlled insurance" law which places percentage limits
on the amount of fees earned by title insurance agents if the agency is
providing title insurance for the benefit of a corporation controlling the
agency. Ariz. Rev. Stat. Ann. § 20-1587 (1990). Norwest has committed to comply with this provision of Arizona law.
Legal Developments
proposal is not likely to have a significantly adverse
effect on competition or to permit unfair competition.
For the reasons discussed above, and under the
framework and conditions 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 interest, or unsound banking
practices. Moreover, consummation of the proposal
would provide added convenience to Norwest's customers. Accordingly, the Board has determined that
the performance of the proposed activities by Norwest
could reasonably be expected to produce public benefits that would outweigh possible adverse effects
under the proper incident to banking standard of
section 4(c)(8) of the BHC Act.7
Based on the foregoing and all the other facts of
record, 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 decision is specifically conditioned on compliance with all of the commitments made in this application, including the commitments discussed in this
order and the conditions set forth in the orders discussed herein. The Board's determination is also subject to all of the terms and 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. For the purpose of this action, all of these
commitments and conditions are deemed to be conditions imposed in writing by the Board and, as such,
may be enforced in proceedings under applicable law.
This transaction shall not be consummated later
than three months after the effective date of this order,
unless such period is extended for good cause by the
7. National Title has requested the Board hold public hearings on
this application. The Board's rules provide that a hearing is required
under section 4 of the BHC Act if there are disputed issues of material
fact that cannot be resolved in some other manner. In addition, the
Board may, in its discretion, hold a public hearing or meeting on an
application to clarify factual issues related to the application and to
provide an opportunity for testimony, if appropriate. 12 C.F.R.
262.3(e) and 262.25(d). The Board has carefully considered this
request. In the Board's view, interested parties have had a sufficient
opportunity to present written submissions, and have submitted
substantial written comments that have been considered by the Board.
On the basis of all facts of record, the Board has determined that a
public hearing or public meeting is not necessary to clarify the factual
record in this application, or otherwise warranted in this case.
Accordingly, the request for a public hearing or public meeting on this
application is hereby denied.
455
Board or by the Federal Reserve Bank of Minneapolis,
pursuant to delegated authority.
By order of the Board of Governors, effective
March 30, 1994.
Voting for this action: Chairman Greenspan and Governors
Kelley, LaWare, Lindsey, and Phillips.
WILLIAM W . WILES
Secretary of the Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Norwest Corporation
Minneapolis, Minnesota
Order Approving the Acquisition of a Bank Holding
Company
Norwest Corporation, Minneapolis, Minnesota ("Norwest"), 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 the voting
shares of Bank of Montana System ("BMS"), and
thereby indirectly acquire Bank of Montana, both of
Great Falls, Montana, Montana Bancsystem, Inc., and
Montana Bank, both of Billings, Montana.1 Norwest
also has applied under section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) and section 225.23 of the
Board's Regulation Y (12 C.F.R. 225.23) to acquire a
nonbanking subsidiary of BMS, Montana Agencies,
Great Falls, Montana, and thereby engage in general
insurance agency activities, including the sale of fixed
annuities, pursuant to section 4(c)(8)(G) of the BHC
Act and section 225.25(b)(8)(vii) of the Board's Regulation Y (12 C.F.R. 225.25 (b)(8)(vii)).
Notice of these applications, affording interested
persons an opportunity to submit comments, has been
published (58 Federal Register 60,025 (1993)). 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 sections 3
and 4 of the BHC Act.
Norwest, with total consolidated assets of $50.8 billion, operates 113 banks in 15 states. Norwest is the
second largest commercial banking organization in
Montana, controlling approximately $717.2 million in
deposits, representing 10.9 percent of the deposits in
1. Norwest will establish a subsidiary, Norwest Merger Co., to
merge with and into BMS with BMS as the surviving corporation.
456
Federal Reserve Bulletin • May 1994
commercial banks in the state.2 BMS, with total consolidated assets of $797 million, is the third largest
commercial banking organization in Montana, controlling approximately $666 million in deposits, representing 10.1 percent of deposits in commercial banks in the
state. Upon consummation of the proposal, Norwest
would become the largest commercial banking organization in Montana, controlling approximately $1.4 billion in deposits, representing 21.1 percent of total
deposits in commercial banks in the state.
Douglas Amendment Analysis
Competitive Considerations
The BHC Act provides that the Board may not approve a proposal submitted under section 3 of the
BHC Act if the proposal would result in a monopoly or
the effect of the proposal would be substantially to
lessen competition in any relevant market. In this
regard, the Board has received comments from the
Montana Independent Bankers ("MIB") that assert
that the relevant geographic market for analyzing the
competitive effects of this proposal should be limited
to a 50-mile area around the City of Great Falls
("Great Falls"),5 and that consummation of this proposal would substantially lessen competition for banking services in this area. In previous cases, the Federal
Reserve Bank of Minneapolis ("Reserve Bank") has
delineated the relevant banking market to include six
counties in northern Montana. MIB criticizes the
Reserve Bank's delineated market as including communities well outside any commuting patterns or shopping routines and encompasses an area that is not
homogeneous.6 In this light, MIB contends that banks
located in isolated areas of the market as currently
delineated would be able to raise the price of services
without fear of competition from competitors in Great
Falls.7
Section 3(d) of the BHC Act ("Douglas Amendment") prohibits a bank holding company from acquiring a bank located outside of its home state
"unless the acquisition of . . . a State bank by an
out-of-State bank holding company 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."3 For purposes of the
Douglas Amendment, the home state of Norwest is
Minnesota. Bank of Montana and Montana Bank are
located in Montana.
The statute laws of Montana expressly permit a
bank holding company located in a defined region
that includes Minnesota to acquire banks in Montana
on a reciprocal basis. 4 The Montana Commissioner
of Financial Institutions has agreed with this conclusion. Based on a review of the relevant statutes, the
Board has determined that its approval of this proposal is not prohibited by the Douglas Amendment.
Approval of the proposed transaction is conditioned,
however, upon Norwest receiving the necessary approval from the Montana bank commissioner.
The Board and the courts have found that the relevant
banking market for analyzing the competitive effects
of a proposal must reflect commercial and banking
realities and must consist of the local area where the
banks involved offer their services and where local
customers can practicably turn for alternatives.8 The
Board has also traditionally recognized that the appro-
2. All banking data are as of December 31, 1993, unless otherwise
noted.
3. 12 U.S.C. § 1842(d). A bank holding company's home state is
that state in which the operations of the bank holding company's
banking subsidiaries were principally conducted on July 1, 1966, or
the date on which the company became a bank holding company
whichever is later. The operations of a bank holding company are
considered principally conducted in that state in which the total
deposits of all its banking subsidiaries are largest.
4. The laws of Minnesota similarly authorize the acquisition of
in-state banking organizations by out-of-state holding companies
within a defined region (that includes Montana) on a reciprocal basis.
See Mont. Code Ann. § 32-1-382(9) (1993); Minn. Stat. Ann.
§ 48.92(7) (Supp. 1993). The bank commissioner of Minnesota has
concluded that the interstate statutes of Montana and Minnesota are
reciprocal. Montana law also requires that the institution to be
acquired has been continuously operated for at least six years, and
that the acquisition does not exceed certain aggregate deposit levels
for deposits held by all insured Montana depository institutions and
out-of-state bank holding companies. See Mont. Code Ann. § 32—1—
383 (1993). The record indicates that these requirements are met in this
proposal.
5. This area would include Cascade County and portions of Choteau, Teton, Lewis and Clark Counties, all in Montana. According to
MIB, this area accurately reflects the boundaries of the primary
economic activity of Great Falls—grain farming—and takes into
account the limited economic and population growth in the area,
including the limited expansion by depository institutions over the last
several years.
6. MIB argues that banking services are local in nature and that
customers would not travel over 100 miles from Great Falls to conduct
their banking as the currently delineated geographic market would
indicate. MIB also believes that the 1992 Department of Justice's
Horizontal Merger Guidelines indicate that small business and individual borrowers are unlikely to seek credit beyond the county in
which they are located.
7. MIB also contends that the elimination of a competitor in this
area is contrary to the purpose of the Montana interstate banking
statute, which was to provide a variety of banking alternatives in
Montana. MIB notes that this proposal would result in less variety for
Great Falls banking customers in terms of numbers of competitors and
type of ownership (in-state or out-of-state) than in other Montana
cities, including some cities with smaller populations.
8. See St. Joseph Valley Bank, 68 Federal Reserve Bulletin 673, 674
(1982).
The Great Falls Banking Market
Legal Developments
priate product market for evaluating bank mergers and
acquisitions is the cluster of products (various kinds of
credit) and services (such as checking accounts and
trust administration) offered by banking institutions.9
In 1990, the Reserve Bank conducted an investigation of the Great Falls area that included a field study
and interviews with local bankers. The Reserve Bank
also conducted telephone surveys of individuals and
small business customers for banking services in the
Great Falls area. In connection with this application,
the Reserve Bank has gathered a variety of updated
data, including conducting interviews with representatives of the Great Falls Chamber of Commerce, the
University of Montana, and the Great Falls Tribune.
The data collected from these investigations and
other sources indicate that a number of geographic and
commercial factors tie the northern counties of Glacier, Pondera, and Toole together in a Great Falls
banking market. For example, Great Falls is the largest population center in the area with a population of
55,097.10 It is the retail center for the Great Falls
region, defined by the Montana Department of Commerce to encompass a six-county area that includes
the northern counties of Glacier, Pondera, and
Toole.11 In this regard, access to Great Falls is convenient, and Great Falls has an indoor shopping mall
with three large department stores and other establishments as well as large food and retail goods discount
stores that attract customers from at least an 80-mile
radius. Great Falls also has a variety of restaurants
and hotels, medical facilities and an airport servicing
major commercial airlines. The Reserve Bank's survey indicates that the typical resident of the outlying
areas in the market travels to Great Falls weekly for
shopping. Data collected by a Great Falls newspaper
indicate that, of the residents in this area living outside
of the county in which Great Falls is located, 57
percent travel to Great Falls at least once a month and
that, on average, these residents travel to Great Falls
approximately three times per month.
9. First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991). As
discussed more fully in that order, it is this cluster of products and
services that, as a matter of trade reality, makes banking a distinct line
of commerce, United States v. Philadelphia National Bank, 374 U.S.
321, 357 (1963). This clustering facilitates the convenient access to
these products and services, and vests the cluster with economic
significance beyond the individual products and services that constitute the cluster. United States v. Phillipsburg National Bank, 399 U.S.
350 (1969). The courts have continued to follow this position. United
States v. Central State Bank, 621 F.Supp. 1276 (W.D. Mich. 1985,
affd per curiam, 817 F.2d 22 (6th Cir. 1987).
10. Population data are based on the 1990 Census.
11. Retail sales data indicate that Great Falls is a significant retail
center for the surrounding counties. For example, although data show
comparable levels of per capita income in the six county Great Falls
region, a significantly higher number of sales per capita occur in
Cascade County, where Great Falls is located, than in the other
counties.
457
Residents of the Great Falls area and the northern
counties also are well informed on the practicable
alternatives for goods and services through commercial advertising. For example, the circulation for the
Great Falls daily and Sunday newspaper extends to
over half the households in Glacier, Pondera, and
Toole Counties. Businesses also advertise their products on three television channels and several radio
stations in Great Falls that reach these northern counties.
Banking data in the Reserve Bank's study indicate
that residents in Glacier, Pondera, and Toole Counties
rely on providers of banking services throughout the
Great Falls banking market as reasonable alternatives
to bank services in those counties. For example,
24 percent of the residents in these counties had either
a sole deposit account or a second deposit account in
a bank outside their county of residence. In addition,
bankers interviewed by the Reserve Bank have confirmed that institutions within the Great Falls region,
including Glacier, Pondera and Toole Counties, are in
competition with each other.12 These banks also regularly purchase the auto installment loans of individuals from auto dealers in these counties.
After review of these data and the other facts of
record including MIB's comments, the Board believes
that the record indicates that customers in the Great
Falls region, including customers in Glacier, Pondera,
and Toole Counties, can turn to providers of banking
services in Great Falls. In this light, the Board disagrees with the contention that the geographic market
in this case should be limited to a geographic area
within a 50 mile radius of the city. Instead, based on all
the facts of record, including the comments and information provided by MIB and studies conducted by the
Reserve Bank, the Board concludes that the relevant
geographic market for evaluating the competitive effects of this proposal in the Great Falls area should be
defined as currently delineated: Cascade (which includes the city of Great Falls), Teton, Judith Basin,
Glacier, Toole, and Pondera Counties; and Fort Benton and Geraldine Division in Choteau County, all in
Montana.
Competitive Effects in The Great Falls Banking
Market
Norwest is the third largest banking or thrift organization ("depository institution") in the Great Falls banking market, controlling deposits of $118.8 million,
representing 11.9 percent of total deposits in deposi-
12. Three bankers from Great Falls indicated that their customers
include residents from Glacier, Pondera, and Toole Counties.
458
Federal Reserve Bulletin • May 1994
tory institutions in the market ("market deposits").13
BMS is the second largest depository institution in the
market, controlling deposits of $160.1 million representing 16.1 percent of market deposits. Upon consummation of their proposal, Norwest would become
the largest depository institution in the market, controlling total deposits of $248.3 million, representing
25.4 percent of market deposits. The HerfindahlHirschman Index ("HHI") would increase 270 points
to a level of 1522.14 Seventeen competitors would
remain in the market after consummation, including
the second largest regional out-of-state bank holding
company in Montana, which would control approximately 24 percent of market deposits in the Great Falls
banking market. In addition, the Board has considered
the competitive influence of thrifts and credit unions.
As in other cases, the Board also sought comments
from the United States Attorney General's Office, the
Office of the Comptroller of the Currency ("OCC"),
and the Federal Deposit Insurance Corporation
("FDIC") on the competitive effects of this proposal.
The Attorney General, OCC, and FDIC have not
objected to consummation of the proposal or indicated
that the proposal would have any significantly adverse
competitive effects in the Great Falls market or any
relevant banking market in which Norwest and BMS
compete. In light of the moderately concentrated
nature of the market as measured by the HHI, the
number of competitors remaining in the market, and
other facts of record, the Board concludes that consummation of the proposal is not likely to result in any
significantly adverse effect on competition in the Great
Falls banking market.15
13. Market data are as of June 30,1992. Market share data are based
on calculations in which the deposits of thrift institutions are included
at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, major competitors of commercial banks. See Midwest Financial Group, 75 Federal
Reserve Bulletin 386 (1989); National City Corporation, 70 Federal
Reserve Bulletin 743 (1984). Thus, the Board has regularly included
thrift deposits in the calculation of market share on a 50 percent
weighted basis. See, e.g., First Hawaiian Inc., supra.
14. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is between 1000 and 1800 is considered moderately
concentrated, and a market in which the post-merger HHI is above
1800 is considered to be highly concentrated. In such highly concentrated markets, the Justice Department is likely to challenge a merger
that increases the HHI by more than 50 points. The Justice Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anti-competitive effects) unless the post-merger HHI is at
least 1800 and the merger or acquisition increases the HHI by at least
200 points. The Justice Department has stated that the higher than
normal threshold for an increase in the HHI when screening bank
mergers and acquisitions for anticompetitive effects implicitly recognizes the competitive effect of limited-purpose lenders and other
non-depository financial entities.
15. Even under MIB's proposed definition of the market, the Board
does not believe that consummation of this proposal would have a
Competitive Effects in Other Montana Banking
Markets
Norwest and BMS also compete directly in the Helena, Billings, Butte and Lewistown banking markets,
all in Montana. In the Helena banking market, Norwest is the second largest depository institution, controlling deposits of $108.6 million, representing 25 percent of market deposits. BMS is the eighth largest
depository institution in the market, controlling deposits of $19.6 million, representing 4.5 percent of market
deposits. Upon consummation of this proposal, Norwest would become the largest depository institution
in the Helena banking market, controlling deposits of
$128.2 million, representing 29.6 percent in market
deposits. The HHI would increase by 226 points to a
level of 1805 points. In light of the facts of record,
including the number of competitors remaining in the
market, and the significant competitive presence of
credit unions in the market, which control approximately 14.4 percent of market deposits, the Board
concludes that the proposal would not result in significantly adverse competitive effects in this market.
In order to mitigate the potential anticompetitive
effects in the Lewistown and Butte banking markets,
Norwest has committed to divest the Bank of Montana
branches located in Lewistown and Anaconda, and the
Montana Bank branch located in Butte. Norwest also
has committed that consummation of these divestitures would not exceed the levels of concentration
provided for in the Department of Justice Merger
Guidelines.16 Consummation of the proposal in the
significantly adverse effect on competition in that market. Norwest
would become the second largest depository institution in the proposed market, controlling $176.1 million in deposits upon consummation of the proposal. The HHI would increase by 289 points to 2038 on
the basis of June 30, 1993, market data. A number of factors indicate,
however, that this increase in market concentration as measured by
the HHI tends to overstate the competitive effects of this proposal in
this area. For example, the number of competitors remaining in the
market would remain unchanged at 11 institutions because Norwest is
not acquiring BMS's thrift subsidiary, Heritage Bank. This institution
maintains a level of its assets in commercial and industrial loans of
approximately 6 percent, which is higher than the national average for
thrifts and accordingly exerts a greater competitive influence in the
area than other savings associations. The Board also has considered
the significant competitive presence of credit unions in the area which
controlling approximately 17 percent of market deposits, more than
double the nationwide average, as of September 30, 1993, of 6.1
percent. Based on all the facts of record, the Board concludes that
consummation of this proposal would not result in a significantly
adverse competitive effect in the area proposed by MIB as the relevant
geographic banking market.
16. In this regard, Norwest has committed to execute sales agreements prior to consummation of this proposal, and to complete these
divestitures within 180 days of consummation of the transaction.
Norwest also has committed that, in the event it is unsuccessful in
completing these divestitures within 180 days of consummation of the
proposal, Norwest will transfer the relevant office or offices to an
independent trustee that has been instructed to sell the office or offices
promptly. See BankAmerica Corporation, 78 Federal Reserve Bulletin
Legal Developments
Billings banking market also would not exceed the
levels of concentration in the Department of Justice
guidelines, and the Billings banking market would
remain moderately concentrated.
On the basis of all the facts of record, the Board has
concluded that the proposal would not result in a
significantly adverse effect on competition or the concentration of banking resources in any of the relevant
banking markets in which Norwest and BMS compete.
Other Considerations
The Board also has determined that the financial and
managerial resources and future prospects of Norwest, BMS, and their respective subsidiaries, as well
as considerations relating to the convenience and
needs of the communities to be served, and the other
supervisory factors the Board must consider under
section 3 of the BHC Act, also are consistent with
approval.
Norwest also has applied, pursuant to section 4(c)(8)
of the BHC Act, to acquire Montana Agencies, a
nonbanking subsidiary of BMS, that engages in general insurance agency activities, including the sale of
fixed annuities.17 The record in this case indicates that
there are numerous providers of these nonbanking
services, and the record does not indicate that consummation of this proposal is likely to result in any
significantly adverse effects, such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices
that would outweigh the public benefits of this proposal. Accordingly, the Board has determined that the
337, 340 (1992); United New Mexico Financial Corporation, 77
Federal Reserve Bulletin 484, 485 (1991).
17. The Board previously has determined that Norwest may engage
in general insurance agency activities, including the sale as agent
of annuities, pursuant to section 4(c)(8)(G) of the BHC Act ("Exemption G"). Norwest Corporation, 76 Federal Reserve Bulletin 873
(1990). This exemption, one of seven specific exemptions (A through
G) enacted by Title VI of the Garn-St Germain Depository Institutions
Act of 1982 to the Garn Act's general prohibition on insurance
activities by bank holding companies, authorizes those bank holding
companies that engaged in insurance agency activities prior to 1971
with prior Board approval, to engage, or control a company engaged
in insurance agency activities.
459
balance of public interest factors it must consider
under section 4(c)(8) of the BHC Act is favorable and
consistent with approval of Norwest's application to
acquire Montana Agencies.
Conclusion
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The Board's approval is
expressly conditioned upon compliance with all the
commitments made by Norwest in connection with
these applications and the conditions stated in this
order. The determination as to the nonbanking activities are subject to all of the conditions 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 to prevent evasions of, the
provision and purposes of the BHC Act and the
Board's regulation and orders issued thereunder. The
commitments and conditions relied on by the Board in
reaching this decision are deemed to be conditions
imposed in writing by the Board in connection with its
findings and decision, and, as such, may be enforced in
proceedings under applicable law.
The acquisition of BMS's subsidiary banks shall not
be consummated before the thirtieth calendar day
following the effective date of this order, and the
acquisition of BMS's bank and nonbank subsidiaries
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
Reserve Bank, acting pursuant to delegated authority.
By order of the Board of Governors, effective
March 14, 1994.
Voting for this action: Chairman Greenspan and Governors
Kelley, LaWare, Lindsey, and Phillips.
JENNIFER J. JOHNSON
Associate Secretary of the Board
460
Federal Reserve Bulletin • May 1994
ACTIONS
TAKEN
UNDER THE FEDERAL DEPOSIT INSURANCE
CORPORATION IMPROVEMENT ACT OF
1991
By the Secretary of the Board
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
Acquired
Thrift
First Citizens BancShares, Inc.,
Raleigh, North Carolina
Home Savings Bank,
SSB,
Kings Mountain,
North Carolina
Keystone Financial, Inc.,
Harrisburg, Pennsylvania
Elmwood Federal Savings
Bank,
Media, Pennsylvania
Acquiring
Bank(s)
First Citizens Bank
and Trust
Company,
Raleigh, North
Carolina
National Bank of the
Main Line,
Harrisburg,
Pennsylvania
Approval
Date
March 25, 1994
March 31, 1994
By the Director of the Division of Banking Supervision and Regulation and the General Counsel of
the Board
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
AmSouth Bancorporation,
Birmingham, Alabama
Dickinson Financial Corporation,
Kansas City, Missouri
KSB Bancorp, Inc.,
Kingfield, Maine
Norwest Corporation,
Minneapolis, Minnesota
Republic Bancorp Co.,
Orland Park, Illinois
Acquired
Thrift
Acquiring
Bank(s)
Fortune Bank, A Savings
Bank,
Clearwater, Florida
United Savings Bank,
Lebanon, Missouri
First Federal Savings
Association,
Lewiston, Maine
First Nationwide Bank,
FSB,
San Francisco,
California
First Cook Community
Bank, FSB,
Chicago, Illinois
AmSouth Bank of
Florida,
Pensacola, Florida
Bank Midwest, N.A.,
Maryville, Missouri
KSB Bank,
Kingfield, Maine
Approval
Date
February 25, 1994
March 28, 1994
March 18, 1994
Norwest Bank
Arizona, N.A.,
Phoenix, Arizona
March 4, 1994
Republic Bank of
Chicago,
Chicago, Illinois
March 4, 1994
Legal Developments
APPLICATIONS
APPROVED
UNDER BANK HOLDING COMPANY
461
ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant(s)
Compass Bancshares, Inc.,
Birmingham, Alabama
First Bank System, Inc.,
Minneapolis, Minnesota
First United Bancshares, Inc.
El Dorado, Arkansas
Liberty National Bancorp, Inc.,
Louisville, Kentucky
Michigan Financial Corporation,
Marquette, Michigan
Bank(s)
Security Bank, National Association,
Houston, Texas
First Financial Investors, Inc.,
New York, New York
InvestArk Bankshares, Inc.,
Stuttgart, Arkansas
First Stuttgart Bank & Trust Company,
Stuttgart, Arkansas
The Bank of North Arkansas,
Melbourne, Arkansas
Liberty National Bank and Trust
Company of Western Kentucky,
Hopkinsville, Kentucky
Houghton Financial, Inc.,
Houghton, Michigan
Effective
Date
March 17, 1994
March 25, 1994
March 15, 1994
March 8, 1994
March 1, 1994
Section 4
Applicant(s)
First Banks, Inc.,
Clayton, Missouri
Union Planters Corporation,
Memphis, Tennessee
Bank(s)
Heartland Savings Bank, F.S.B.
St. Louis, Missouri
Liberty Bancshares, Inc.,
Paris, Tennessee
Effective
Date
March 11, 1994
March 25, 1994
Sections 3 and 4
Applicant(s)
Trans Financial Bancorp, Inc.,
Bowling Green, Kentucky
Bank(s)
Peoples Financial Services, Inc.,
Cookeville, Tenessee
Peoples Bank and Trust of the
Cumberlands,
Cookeville, Tennessee
Citizens Federal Savings Bank,
Rockwood, Tennessee
Effective
Date
March 21, 1994
462
Federal Reserve Bulletin • May 1994
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)
1st United Bancorp,
Boca Raton, Florida
Aumanchester, Inc.,
Rochester, Minnesota
Bank Corporation of Georgia,
Macon, Georgia
Excelsior Financial Services,
Inc.,
Excelsior, Minnesota
ExTraCo Bankshares, Inc.,
Waco, Texas
FF Bancorp, Inc.,
New Smyrna Beach, Florida
Firstbank of Illinois Co.,
Springfield, Illinois
First Banks, Inc.,
St. Louis, Missouri
First Bankshares of West Point,
Inc.,
West Point, Georgia
First Integrity Bancorporation,
Inc.,
Staples, Minnesota
First Union Corporation,
Charlotte, North Carolina
Harleysville National
Corporation,
Harleysville, Pennsylvania
Huckabay Enterprises A Limited
Partnership,
Mustang, Oklahoma
Reserve
Bank
Bank(s)
Suburban Bank,
Lake Worth, Florida
Rochester Bank and Trust
Company,
Rochester, Minnesota
Security State Bank of
Hammond,
Hammond, Minnesota
AmeriCorp, Inc.,
Savannah, Georgia
First State Bank of
Excelsior,
Excelsior, Minnesota
Guaranty Bank and Trust
Company,
Gatesville, Texas
Key Bancshares, Inc.,
Tampa, Florida
Colonial Bancshares,
Inc.,
Des Peres, Missouri
Farmers Bancshares,
Inc.,
Breese, Illinois
First Peoples Bank,
Pine Mountain, Georgia
Barrett Bancorporation,
Inc.,
Barrett, Minnesota
First Union Home Equity
Bank, National
Association,
Charlotte, North
Carolina
Security National Bank,
Pottstown,
Pennsylvania
Southwest State
Corporation,
Sentinel, Oklahoma
Wichita Bancshares, Inc.,
Snyder, Oklahoma
First Mustang
Corporation,
Mustang, Oklahoma
Effective
Date
Atlanta
March 9, 1994
Minneapolis
March 4, 1994
Atlanta
March 18, 1994
Minneapolis
March 7, 1994
Dallas
March 4, 1994
Atlanta
March 1, 1994
Chicago
March 22, 1994
St. Louis
March 22, 1994
Atlanta
March 31, 1994
Minneapolis
March 9, 1994
Richmond
March 25, 1994
Philadelphia
March 29, 1994
Kansas City
March 3, 1994
Legal Developments
463
Section 3—Continued
Applicant(s)
Independent Southern
Bancshares, Inc. Employee
Stock Ownership Trust,
Brownsville, Tennessee
Kelliher Bancshares, Inc.,
Kelliher, Minnesota
Kermit State Bancshares, Inc.,
Kermit, Texas
Leeds Holding Company,
Leeds, North Dakota
Limestone Bancshares, Inc.,
Mexia, Texas
Old Kent Financial Corporation,
Grand Rapids, Michigan
Old Kent—Illinois, Inc.,
Elmhurst, Illinois
Palmer Bancshares, Inc.,
Palmer, Texas
Palmer Bancshares of Delaware,
Inc.,
Wilmington, Delaware
Peoples Bancshares, Inc.,
Clay Center, Kansas
Republic Bancorp Co.,
Orland Park, Illinois
Sack Family Partnership,
York, Nebraska
SBT Bankshares, Inc.,
Colorado Springs, Colorado
The Shorebank Corporation,
Chicago, Illinois
Southern Bancshares, Inc.,
Houston, Texas
Southwest Bancshares, Inc.,
Jonesboro, Arkansas
Stockmens Management
Company,
Rushville, Nebraska
Reserve
Bank
Bank(s)
Effective
Date
Independent Southern
Bancshares, Inc.,
Brownsville, Tennessee
St. Louis
March 10, 1994
Citizens State Bank of
Kelliher,
Kelliher, Minnesota
Bank of the West, N.A.,
Odessa, Texas
Bankers Financial
Corporation,
Drake, North Dakota
First National Bank of
Mexia,
Mexia, Texas
EdgeMark Financial
Corporation,
Chicago, Illinois
Minneapolis
March 22, 1994
Dallas
February 28, 1994
Minneapolis
March 15, 1994
Dallas
March 4, 1994
Chicago
March 25, 1994
Dallas
March 30, 1994
Dallas
March 30, 1994
Kansas City
March 24, 1994
Chicago
March 4, 1994
Kansas City
February 28, 1994
Kansas City
March 14, 1994
Chicago
March 24, 1994
Dallas
March 10, 1994
St. Louis
March 3, 1994
Kansas City
March 29, 1994
Palmer Bancshares of
Delaware, Inc.,
Wilmington, Delaware
Commercial State Bank,
Palmer, Texas
Commercial State Bank,
Palmer, Texas
The Peoples National
Bank,
Clay Center, Kansas
MAH Bancorp, Inc.,
Orland Park, Illinois
York State Company,
York, Nebraska
State Bank and Trust of
Colorado Springs,
Colorado Springs,
Colorado
Potters State Bank,
East Liverpool, Ohio
First State Bank Brazoria,
Brazoria, Texas
FirstBank of Arkansas,
Kensett, Arkansas
Black Pipe State Bank,
Martin, South Dakota
464
Federal Reserve Bulletin • May 1994
Section 3—Continued
Applicant(s)
Western Commerce Bancshares
of Carlsbad, Inc.,
Carlsbad, New Mexico
Zions Bancorporation,
Salt Lake City, Utah
Reserve
Bank
Bank(s)
Western Bancshares of
Clovis, Inc.,
Carlsbad, New Mexico
Rio Salado Bancorp, Inc.,
Tempe, Arizona
Effective
Date
Dallas
March 16, 1994
San Francisco
March 23, 1994
Section 4
Applicant(s)
Baylor Bancshares, Inc.,
Seymour, Texas
Boatmen's Bancshares, Inc.,
St. Louis, Missouri
Cass Commercial Corporation,
St. Louis, Missouri
First Bancorporation of Ohio,
Akron, Ohio
Firstbank of Illinois Co.,
Springfield, Illinois
First Community Bancshares,
Inc.,
Winnfield, Louisiana
Lake Park Bancshares, Inc.,
Lake Park, Minnesota
Norwest Corporation,
Minneapolis, Minnesota
Norwest Corporation,
Minneapolis, Minnesota
Republic Bancorp Co.,
Orland Park, Illinois
Nonbanking
Activity/Company
Baylor Mortgage
Company, Inc.,
Seymour, Texas
Eagle Management &
Trust Company,
Houston, Texas
to engage de novo in
acquiring, holding, and
disposing of loans or
other extensions of
credit and providing
necessary servicing
activities
Life Federal Savings
Bank,
Clearwater, Florida
Rowe, Henry & Deal,
Inc.,
Jacksonville, Illinois
to engage de novo in
credit life insurance
activities
to engage de novo in
making loans for its
own account
First National Bank of
Detroit Lakes,
Detroit Lakes,
Minnesota
FN Investment Center,
Phoenix, Arizona
Ziebell Water Service
Products, Inc.,
Chicago, Illinois
Reserve
Bank
Effective
Date
Dallas
March 23, 1994
St. Louis
March 4, 1994
St. Louis
March 16, 1994
Cleveland
March 11, 1994
Chicago
March 2, 1994
Dallas
March 21, 1994
Minneapolis
March 30, 1994
Minneapolis
March 30, 1994
Minneapolis
March 4, 1994
Chicago
March 4, 1994
Legal Developments
465
Section 4—Continued
Nonbanking
Activity/Company
Applicant(s)
MAH Financial, Inc.,
Chicago, Illinois
First Cook Community
Bank, FSB,
Chicago, Illinois
Republic Bancorp Company,
Orland Park, Illinois
APPLICATIONS
APPROVED
UNDER BANK MERGER
Reserve
Bank
Chicago
Effective
Date
March 4, 1994
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.
Sections 3 and 4
Applicant(s)
1st United Bank,
Boca Raton, Florida
First Community Bank,
Forest, Virginia
OMNIBANK Southeast,
Denver, Colorado
WesBanco Bank Wheeling,
Wheeling, West Virginia
PENDING CASES INVOLVING
GOVERNORS
Suburban Bank,
Lake Worth, Florida
First Union National
Bank of Virginia,
Roanoke, Virginia
OMNIBANK Denver,
Denver, Colorado
OMNIBANK Leetsdale,
Denver, Colorado
WesBanco Bank
Wellsburg, Inc.,
Wellsburg, West
Virginia
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.
DLG Financial Corp. v. Board of Governors, No.
94-10078 (5th Cir., filed January 20, 1994). Appeal
of district court dismissal of appellants' action to
enjoin the Board and the Federal Reserve Bank of
Dallas from taking certain enforcement actions,
and for money damages on a variety of tort and
contract theories. The case has been consolidated
Reserve
Bank
Bank(s)
Effective
Date
Atlanta
March 9, 1994
Richmond
March 31, 1994
Kansas City
March 18, 1994
Cleveland
March 2, 1994
on appeal with Board of Governors v. DLG Financial Corp., Nos. 93-2944 and 94-20013 (5th Cir.,
filed December 14, 1993 and December 31, 1993),
an appeal of a temporary restraining order and a
preliminary injunction obtained by the Board
freezing assets of a corporation and an individual
pending administrative adjudication of civil money
penalty assessments by the Board. Appellants'
brief was filed on March 21, 1994.
Board of Governors v. Oppegard, No. 93-3706 (8th
Cir., filed November 1, 1993). Appeal of district
court order ordering appellant Oppegard to comply
with prior order requiring compliance with Board
removal, prohibition, and civil money penalty order.
The Board's brief was filed on January 20, 1994.
466
Federal Reserve Bulletin • May 1994
Scott v. Board of Governors, No. 930905843CV (Dist.
Ct., Salt Lake County, Utah, filed October 8, 1993).
Action against Board and others for damages and
injunctive relief for alleged constitutional and statutory violations caused by issuance of Federal Reserve notes.
Richardson v. Board of Governors, et al., No. 93-C
836A (D. Utah, filed August 30, 1993). Action
against Board and others for damages and injunctive
relief for alleged constitutional and statutory violations caused by issuance of Federal Reserve notes.
On December 16, 1993, the District Court granted
the Board's motion to dismiss. On January 14, 1994,
plaintiff filed a notice of appeal.
Jackson v. Board of Governors, No. CV-N-93-401ECR (D. Nev., filed June 14, 1993). Pro se action for
violation of a prisoner's civil rights. On November 26, 1993, the Board filed a motion to dismiss.
First National Bank ofBellaire v. Board of Governors,
No. H-93-1708 (S.D. Texas, filed June 8, 1993).
Action to enjoin possible enforcement actions by
Board of Governors and other bank regulatory agencies. On September 23, 1993, the agencies filed a
motion to dismiss.
Kubany v. Board of Governors, et al., No. 93-1428 (D.
D.C., filed July 9, 1993). Action challenging Board
determination under the Freedom of Information
Act. The Board's motion to dismiss was filed on
October 15, 1993.
Bennett v. Greenspan, No. 93-1813 (D. D.C., filed
April 20, 1993). Employment discrimination action.
Amann v. Prudential Home Mortgage Co., et al., No.
93-10320 WD (D. Massachusetts, filed February 12,
1993). Action for fraud and breach of contract
arising out of a home mortgage. On April 17, 1993,
the Board filed a motion to dismiss.
Adams v. Greenspan, No. 93-0167 (D. D.C., filed
January 27, 1993). Action by former employee under
the Civil Rights Act of 1964 and the Rehabilitation
Act of 1973 concerning termination of employment.
The Board's motion for partial summary judgment
was filed on January 4, 1994.
CBC, Inc. v. Board of Governors, No. 93-1458 (U.S.
Supreme Court, filed March 17, 1994). Petition for
review of civil money penalty assessment against a
bank holding company and three of its officers and
directors for failure to comply with reporting requirements. On November 30, 1993, the Court of
Appeals for the 10th Circuit denied the petition for
review. On March 17, 1994, CBC filed a petition for
certiorari.
Zemel v. Board of Governors, No. 92-1056 (D. D.C.,
filed May 4, 1992). Age Discrimination in Employ-
ment Act case. The parties' cross-motions for summary judgment are pending.
Board of Governors v. Ghaith R. Pharaon, No. 91CIV-6250 (S.D. New York, filed September 17,
1991). Action to freeze assets of individual pending
administrative adjudication of civil money penalty
assessment by the Board. On September 17, 1991,
the court issued an order temporarily restraining the
transfer or disposition of the individual's assets.
FINAL ENFORCEMENT ORDERS ISSUED BY THE
BOARD OF GOVERNORS
Mount Vernon Bankshares, Inc.
Mount Vernon, Kentucky
The Federal Reserve Board announced on March 16,
1994, the issuance of a Cease and Desist Order against
Mount Vernon Bancshares, Inc., Mount Vernon, Kentucky, and Jerry Ikerd and Brenda Ikerd, the principal
shareholders and sole directors of Mount Vernon
Bancshares, Inc.
Pacific Western Bank
San Jose, California
The Federal Reserve Board announced on March 2,
1994, the issuance of a combined Order to Cease and
Desist and Order of Assessment of a Civil Money
Penalty against the Pacific Western Bank, San Jose,
California, a state member bank.
Gary L. Parker
New York, New York
The Federal Reserve Board announced on March 16,
1994, the issuance of an Order of Prohibition against
Gary L. Parker, a former officer of the New York
Branch of Dresdner Bank AG, Frankfurt, Germany.
WRITTEN AGREEMENTS
RESERVE BANKS
APPROVED BY
FEDERAL
First FSB Bancshares, Inc.
Mount Calm, Texas
The Federal Reserve Board announced on March 7,
1994, the execution of a Written Agreement between
the Federal Reserve Bank of Dallas and First FSB
Bancshares, Inc., Mount Calm, Texas.
467
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 the 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 importantly
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: three
Class A and three Class B directors, who are elected by
the stockholding member banks, and three Class C directors, who are appointed by the Board of Governors
of the Federal Reserve System. Directors are chosen
without discrimination as to race, creed, color, sex, or
national origin.
Class A directors 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 given to the
interests of agriculture, commerce, industry, services,
labor, and consumers; they may not be officers, directors,
or employees of any bank or bank holding company.
Also, Class C directors may not be stockholders of any
bank or bank holding company. The Board of Governors
designates annually one Class C director as chairman of
the board of directors of each District Bank and another
Class C director as deputy chairman.
Each of the twenty-five Branches of the 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
1. The current list appears on page A92 of this Bulletin.
Term expires
DISTRICT 1—BOSTON
December 31
Class A
Robert M. Silva
Ira Stepanian
David A. Page
President, Chief Executive Officer, and Director, The Citizens
National Bank, Putnam, Connecticut
Chairman and Chief Executive Officer, The Bank of Boston
Corporation, Boston, Massachusetts
President and Chief Executive Officer, Ocean National Bank of
Kennebunk, Kennebunk, Maine
1994
1995
1996
468
Federal Reserve Bulletin • May 1994
Term expires
December 31
DISTRICT 1—Continued
Class B
Edward H. Ladd
Joan T. Bok
Stephen L. Brown
Chairman and Chief Executive Officer, Standish, Ayer and Wood,
Inc., Boston, Massachusetts
Chairman, New England Electric System, Westborough,
Massachusetts
Chairman and Chief Executive Officer, John Hancock Mutual Life
Insurance Company, Boston, Massachusetts
1994
Chairman and Chief Executive Officer, New England Medical Center,
Inc., Boston, Massachusetts
Sheehan, Phinney, Bass, and Green, Manchester, New Hampshire
Executive Director, The Quality Connection, East Dennis,
Massachusetts
1994
1995
1996
Class C
Jerome H. Grossman
Warren B. Rudman, Esq.
John E. Flynn
1995
1996
DISTRICT 2—NEW YORK
Class A
Thomas G. Labrecque
Robert G. Wilmers
J. William Johnson
Chairman and Chief Executive Officer, The Chase Manhattan Bank,
N.A., New York, New York
Chairman, President, and Chief Executive Officer, Manufacturers and
Traders Trust Company, Buffalo, New York
Chairman and Chief Executive Officer, The First National Bank of
Long Island, Glen Head, New York
1994
Chairman and Chief Executive Officer, AT&T, Basking Ridge,
New Jersey
Chairman and Chief Executive Officer, Pfizer Inc.,
New York, New York
President, United Federation of Teachers, New York, New York
1994
Chairman and Chief Executive Officer, American International Group,
Inc., New York, New York
Owner, HLW Fast Track, Inc., Rochester, New York
President, Carnegie Corporation, New York, New York
1994
1995
1996
Class B
Robert E. Allen
William C. Steere, Jr.
Sandra Feldman
1995
1996
Class C
Maurice R. Greenberg
Herbert L. Washington
David A. Hamburg
1995
1996
BUFFALO BRANCH
Appointed by the Federal Reserve Bank
Charles M. Mitschow
Richard H. Popp
George W. Hamlin IV
Louise C. Woerner
Chairman, Western Region, Marine Midland Bank, Buffalo,
New York
Operating Partner, Southview Farm, Castile, New York
President and Chief Executive Officer, The Canandaigua National
Bank and Trust Company, Canandaigua, New York
Chairman and Chief Executive Officer, HCR Home Health Agency,
Rochester, New York
1994
1994
1995
1996
Directors of Federal Reserve Banks and Branches
469
Term expires
December 31
DISTRICT 2—Continued
Buffalo Branch—Continued
Appointed by the Board of Governors
Donald L. Rust
F. C. Richardson
Joseph J. Castiglia
Plant Manager, Tonawanda Engine Plant, General Motors Powertrain
Division, General Motors Corporation, Buffalo, New York
President, Buffalo State College, Buffalo, New York
President and Chief Executive Officer, Pratt & Lambert, Inc.,
Buffalo, New York
1994
1995
1996
DISTRICT 3—PHILADELPHIA
Class A
H. Bernard Lynch
Carl L. Campbell
Terry K. Dunkle
President and Chief Executive Officer, The First National Bank of
Wyoming, Wyoming, Delaware
President and Chief Executive Officer, Keystone Financial, Inc.,
Harrisburg, Pennsylvania
Chairman, United States National Bank, Johnstown, Pennsylvania
1994
1995
1996
Class B
James A. Hagen
David W. Huggins
J. Richard Jones
Chairman, President, and Chief Executive Officer, Consolidated Rail
Corporation (CONRAIL), Philadelphia, Pennsylvania
President and Chief Executive Officer, R M S Technologies, Inc.,
Marlton, New Jersey
President and Chief Executive Officer, Jackson-Cross Company,
Philadelphia, Pennsylvania
1994
1995
1996
Class C
Donald J. Kennedy
James M. Mead
Joan Carter
Business Manager, International Brotherhood of Electrical Workers,
Local Union No. 269, Trenton, New Jersey
President and Chief Executive Officer, Capital Blue Cross,
Harrisburg, Pennsylvania
President and Chief Operating Officer, United Medical Corporation,
Haddonfield, New Jersey
1994
1995
1996
DISTRICT 4—CLEVELAND
Class A
William T. McConnell
Edward B. Brandon
Alfred C. Leist
Chairman and Chief Executive Officer, The Park National Bank,
Newark, Ohio
Chairman and Chief Executive Officer, National City Corporation,
Cleveland, Ohio
Chairman, President, and Chief Executive Officer, Apple Creek
Banking Company, Apple Creek, Ohio
1994
1995
1996
Class B
Douglas E. Olesen
I. N. Rendall Harper, Jr.
Thomas M. Nies
President and Chief Executive Officer, Battelle Memorial Institute,
Columbus, Ohio
President and Chief Executive Officer, American Micrographics
Company, Inc., Monroeville, Pennsylvania
President, Cincom Systems, Inc., Cincinnati, Ohio
1994
1995
1996
470
Federal Reserve Bulletin • May 1994
Term expires
DISTRICT 4—Continued
Class C
G. Watts Humphrey, Jr.
A. William Reynolds
Robert Y. Farrington
December 31
President, GWH Holdings, Inc., Pittsburgh, Pennsylvania
Chairman and Chief Executive Officer, GenCorp, Fairlawn, Ohio
Executive Secretary-Treasurer, Ohio State Building and Construction
Trades Council, Columbus, Ohio
1994
1995
1996
CINCINNATI BRANCH
Appointed by the Federal Reserve Bank
Marvin J. Stammen
Jerry W. Carey
Phillip R. Cox
C. Wayne Shumate
President and Chief Executive Officer, Second National Bank,
Greenville, Ohio
President and Chief Executive Officer, Union National Bank and Trust
Company, Barbourville, Kentucky
President, Cox Financial Corporation, Cincinnati, Ohio
Chairman and Chief Executive Officer, Kentucky Textiles, Inc.,
Paris, Kentucky
1994
1995
1996
1996
Appointed by the Board of Governors
Raymond A. Bradbury
Eleanor Hicks
John N. Taylor, Jr.
Chairman (Retired), Martin County Coal Corporation,
Prestonburg, Kentucky
President, M.I.N.D.S. International, Cincinnati, Ohio
Chairman and Chief Executive Officer, Kurz-Kasch, Inc.
Dayton, Ohio
1994
1995
1996
PITTSBURGH BRANCH
Appointed by the Federal Reserve Bank
David S. Dahlmann
Helen J. Clark
Randall L. C. Russell
Wesley W. von Schack
President and Chief Executive Officer, Southwest National
Corporation, Greensburg, Pennsylvania
Chairman, President, and Chief Executive Officer, Apollo Trust
Company, Apollo, Pennsylvania
President and Chief Executive Officer, Ranbar Technology, Inc.,
Glenshaw, Pennsylvania
Chairman, President, and Chief Executive Officer, DQE,
Pittsburgh, Pennsylvania
1994
1995
1996
1996
Appointed by the Board of Governors
Jack B. Piatt
Robert P. Bozzone
Sandra L. Phillips
Chairman and President, Millcraft Industries, Inc.,
Washington, Pennsylvania
President and Chief Executive Officer, Allegheny Ludlum
Corporation, Pittsburgh, Pennsylvania
Executive Director, Pittsburgh Partnership for Neighborhood
Development, Pittsburgh, Pennsylvania
1994
1995
1996
Directors of Federal Reserve Banks and Branches
471
Term expires
December 31
DISTRICT 5—RICHMOND
Class A
Webb C. Hayes IV
Charles E. Weller
Robert M. Freeman
Chairman, The Palmer National Bancorp, Inc. and President. Palmer
National Bank, Washington, D.C.
President, Elkridge National Bank and ENB Financial Corporation,
Elkridge, Maryland
Chairman and Chief Executive Officer, Signet Banking Corporation,
Richmond, Virginia
1994
1995
1996
Class B
L. Newton Thomas, Jr.
R. E. Atkinson, Jr.
Paul A. DelaCourt
Senior Vice President (Retired), ITT/Carbon Industries, Inc.,
Charleston, West Virginia
Chairman, Dilmar Oil Company, Inc., Florence, South Carolina
Chairman, The North Carolina Enterprise Corporation,
Raleigh, North Carolina
1994
1995
1996
Class C
Claudine B. Malone
Henry J. Faison
Stephen Brobeck
President, Financial & Management Consulting, Inc., McLean,
Virginia
President, Faison Associates, Charlotte, North Carolina
Executive Director, Consumer Federation of America,
Washington, D.C.
1994
1995
1996
BALTIMORE BRANCH
Appointed by the Federal Reserve Bank
Thomas J. Hughes
F. Levi Ruark
Richard M. Adams
Morton I. Rapoport, M.D.
President/Chief Executive Officer, Navy Federal Credit Union,
Vienna, Virginia
Chairman and President, The National Bank of Cambridge,
Cambridge, Maryland
Chairman and Chief Executive Officer, United Bankshares, Inc.,
Parkersburg, West Virginia
President and Chief Executive Officer, University of Maryland
Medical System, Baltimore, Maryland
1994
1994
1995
1996
Appointed by the Board of Governors
Rebecca Hahn Windsor
Daniel R. Baker
Michael R. Watson
Chairman and Chief Executive Officer, Hahn Transportation, Inc.,
New Market, Maryland
President and Chief Executive Officer, Tate Access Floors, Inc.,
Jessup, Maryland
President, Association of Maryland Pilots, Baltimore, Maryland
1994
1995
1996
CHARLOTTE BRANCH
Appointed by the Federal Reserve Bank
Dorothy H. Aranda
Vacancy
David B. Jordan
Jim M. Cherry, Jr.
President, Dohara Associates, Inc., Hilton Head Island, South Carolina
Vice Chairman, Chief Executive Officer, and Director, Security
Capital Bancorp, Salisbury, North Carolina
President and Chief Executive Officer, Williamsburg First National
Bank, Kingstree, South Carolina
1994
1994
1995
1996
472
Federal Reserve Bulletin • May 1994
Term expires
DISTRICT 5—Continued
December 31
Charlotte Branch—Continued
Appointed by the Board of Governors
Harold D. Kingsmore
James O. Roberson
Dennis Lowery
President and Chief Operating Officer, Graniteville Company,
Graniteville, South Carolina
President/Chief Executive Officer, Research Triangle Foundation of
North Carolina, Research Triangle Park, North Carolina
Chief Executive Officer and Chairman, Continental Ltd.,
Charlotte, North Carolina
1994
1995
1996
DISTRICT 6—ATLANTA
Class A
D. Paul Jones, Jr.
W. H. Swain
James B. Williams
Chairman and Chief Executive Officer, Compass Bancshares, Inc.
Birmingham, Alabama
Chairman, First National Bank, Oneida, Tennessee
Chairman and Chief Executive Officer, SunTrust Banks, Inc.,
Atlanta, Georgia
1994
1995
1996
Class B
Victoria B. Jackson
J. Thomas Holton
Andre M. Rubenstein
President, DSS/ProDiesel, Nashville, Tennessee
Chairman and President, Sherman International Corporation,
Birmingham, Alabama
Chairman and Chief Executive Officer, Rubenstein Brothers, Inc.,
New Orleans, Louisiana
1994
1995
President and Chief Executive Officer, BAMSI, Inc.,
Titusville, Florida
Chairman and President, Engraph, Inc., Atlanta, Georgia
Program Director, The Atlanta Project, Atlanta, Georgia
1994
1996
Class C
Hugh M. Brown
Leo Benatar
Daniel E. Sweat, Jr.
1995
1996
BIRMINGHAM BRANCH
Appointed by the Federal Reserve Bank
Marlin D. Moore, Jr.
Columbus Sanders
J. Stephen Nelson
Julian W. Banton
Chairman, Pritchett-Moore, Inc., Tuscaloosa, Alabama
President, Consolidated Industries, Inc., Huntsville, Alabama
President and Chief Executive Officer, First National Bank,
Brewton, Alabama
Chairman, President, and Chief Executive Officer, SouthTrust Bank of
Alabama, N.A., Birmingham, Alabama
1994
1994
1995
1996
Appointed by the Board of Governors
Shelton E. Allred
Patricia B. Compton
Donald E. Boomershine
Chairman, President, and Chief Executive Officer, Frit Incorporated,
Ozark, Alabama
President, Patco, Inc., Georgiana, Alabama
President, Better Business Bureau of Central Alabama, Inc.,
Birmingham, Alabama
1994
1995
1996
Directors of Federal Reserve Banks and Branches
473
Term expires
DISTRICT 6—Continued
December 31
JACKSONVILLE BRANCH
Appointed by the Federal Reserve Bank
Perry M. Dawson
Arnold A. Heggestad
Royce B. Walden
William G. Smith, Jr.
President and Chief Executive Officer, Suncoast Schools Federal
Credit Union, Tampa, Florida
William H. Dial Professor and Director, College of Business
Administration, University of Florida, Gainesville, Florida
Vice President, Ward Bradford & Company, Orlando, Florida
President, Capital City First National Bank, Tallahassee, Florida
1994
1994
1995
1996
Appointed by the Board of Governors
Samuel H. Vickers
Lana Jane Lewis-Brent
Joan Dial Ruffier
President, Chairman, and Chief Executive Officer, Design Containers,
Inc., Jacksonville, Florida
President, Paul Brent Designer, Inc., Panama City, Florida
General Partner, Sunshine Cafes, Orlando, Florida
1994
1995
1996
MIAMI BRANCH
Appointed by the Federal Reserve Bank
Roberto G. Blanco
E. Anthony Newton
Steven C. Shimp
Pat L. Tornillo, Jr.
Vice Chairman and Chief Financial Officer, Republic National Bank
of Miami, Miami, Florida
President, Island National Bank of Palm Beach, Palm Beach, Florida
President, O-A-K/Florida, Inc., Fort Myers, Florida
Executive Vice President, United Teachers of Dade, Miami, Florida
1994
1995
1996
1996
Appointed by the Board of Governors
Dorothy C. Weaver
R. Kirk Landon
Michael T. Wilson
Executive Vice President, Intercap Investments, Inc.,
Coral Gables, Florida
Chairman and Chief Executive Officer, American Bankers Insurance
Group, Miami, Florida
President, Vinegar Bend Farms, Inc., Belle Glade, Florida
1994
1995
1996
NASHVILLE BRANCH
Appointed by the Federal Reserve Bank
William Baxter Lee III
Vacancy
James D. Harris
Williams E. Arant, Jr.
Chairman and President, Southeast Services Corporation,
Knoxville, Tennessee
President and Chief Executive Officer, Brentwood National Bank,
Brentwood, Tennessee
President and Chief Executive Officer, First National Bank of
Knoxville, Knoxville, Tennessee
1994
1994
1995
1996
Appointed by the Board of Governors
Vacancy
Harold A. Black
Paula Lovell
James F. Smith Jr. Professor of Financial Institutions, College of
Business Administration, University of Tennessee,
Knoxville, Tennessee
President, Lovell Communications, Inc., Nashville, Tennessee
1994
1995
1996
474
Federal Reserve Bulletin • May 1994
Term expires
December 31
DISTRICT 6—Continued
NEW ORLEANS BRANCH
Appointed by the Federal Reserve Bank
Angus R. Cooper
Kay L. Nelson
Thomas E. Walker
Howard C. Gaines
Chairman and Chief Executive Officer, Cooper/T. Smith Corporation,
Mobile, Alabama
Managing Director, Nelson Capital Corporation, New Orleans,
Louisiana
President and Chief Executive Officer, Bank of Forest,
Forest, Mississippi
Chairman and Chief Executive Officer, First National Bank of
Commerce, New Orleans, Louisiana
1994
1994
1995
1996
Appointed by the Board of Governors
Jo Ann Slaydon
Lucimarian Tolliver Roberts
Victor Bussie
President, Slaydon Consultants and Insight Productions and
Advertising, Baton Rouge, Louisiana
President, Mississippi Coast Coliseum Commission,
Pass Christian, Mississippi
President, Louisiana AFL-CIO, Baton Rouge, Louisiana
1994
1995
1996
DISTRICT 7—CHICAGO
Class A
Stefan S. Anderson
Arnold C. Schultz
David W. Fox
Chairman, President, and Chief Executive Officer, First Merchants
Corporation, Muncie, Indiana
Chairman and President, Grundy National Bank, Grundy Center, Iowa
Chairman and Chief Executive Officer, The Northern Trust
Corporation and The Northern Trust Company, Chicago, Illinois
1994
1995
1996
Class B
Thomas C. DonDonald J. Schneider
A. Charlene Sullivan
President and Chief Executive Officer, Dorr's Pine Grove Farm Co.,
Marcus, Iowa
President, Schneider National, Inc., Green Bay, Wisconsin
Associate Professor of Management, Krannert Graduate School of
Management, Purdue University, West Lafayette, Indiana
1994
Chairman and Chief Executive Officer, Abbott Laboratories,
Abbott Park, Illinois
Chairman and Chief Executive Officer, NICOR Inc.,
Naperville, Illinois
President, Chicago Federation of Labor and Industrial Union Council,
AFL-CIO, Chicago, Illinois
1994
1995
1996
Class C
Duane L. Burnham
Richard G. Cline
Robert M. Healey
1995
1996
Directors of Federal Reserve Banks and Branches
475
Term expires
December 31
DISTRICT 7—Continued
DETROIT BRANCH
Appointed by the Federal Reserve Bank
Charles R. Weeks
Norman F. Rodgers
Charles E. Allen
William E. Odom
President and Chief Executive Officer, Citizens Banking Corporation,
Flint, Michigan
President and Chief Executive Officer, Hillsdale County National
Bank, Hillsdale, Michigan
President and Chief Executive Officer, Graimark Realty Advisors,
Inc., Detroit, Michigan
Chairman, Ford Motor Credit Company, Dearborn, Michigan
1994
1995
1996
1996
Appointed by the Board of Governors
John D. Forsyth
J. Michael Moore
Florine Mark
Executive Director, University of Michigan Hospitals,
Ann Arbor, Michigan
Chairman and Chief Executive Officer, Invetech Company,
Detroit, Michigan
President and Chief Executive Officer, WW Group,
Farmington Hills, Michigan
1994
President and Chief Executive Officer, First National Bank in
Pinckneyville, Pinckneyville, Illinois
Chairman and President, Trans Financial Bancorp, Inc.,
Bowling Green, Kentucky
Chairman and Chief Executive Officer, First National Bank of Eastern
Arkansas, Forrest City, Arkansas
1994
1995
1996
DISTRICT 8—ST. LOUIS
Class A
Henry G. River, Jr.
Douglas M. Lester
W. D. Glover
1995
1996
Class B
Sandra B. Sanderson-Chesnut
Richard E. Bell
Warren R. Lee
President and Chief Executive Officer, Sanderson Plumbing Products,
Inc., Columbus, Mississippi
President and Chief Executive Officer, Riceland Foods, Inc.,
Stuttgart, Arkansas
President, W. R. Lee & Associates, Inc.. Louisville, Kentucky
1994
1995
1996
Class C
Robert H. Quenon
John F. McDonnell
Veo Peoples, Jr.
Mining Consultant, St. Louis, Missouri
Chairman and Chief Executive Officer, McDonnell Douglas
Corporation, St. Louis, Missouri
Partner, Peoples, Hale & Coleman, St. Louis, Missouri
1994
1995
1996
LITTLE ROCK BRANCH
Appointed by the Federal Reserve Bank
Barnett Grace
Mark A. Shelton III
James V. Kelley
Mahlon A. Martin
Chairman and Chief Executive Officer, First Commercial Bank, N.A.,
Little Rock, Arkansas
President, M. A. Shelton Farming Company, Altheimer, Arkansas
Chairman, President, and Chief Executive Officer, First United
Bancshares, Inc., El Dorado, Arkansas
President, Winthrop Rockefeller Foundation, Little Rock, Arkansas
1994
1995
1996
1996
476
Federal Reserve Bulletin • May 1994
Term expires
DISTRICT 8—Continued
December 31
Little Rock Branch—Continued
Appointed by the Board of Governors
Robert Daniel Nabholz, Jr.
Betta Carney
Janet M. Jones
Chief Executive Officer, Nabholz Construction Corporation,
Conway, Arkansas
President and Chief Executive Officer, World Wide Travel Service,
Inc., Little Rock, Arkansas
President, The Janet Jones Company, Little Rock, Arkansas
1994
1995
1996
LOUISVILLE BRANCH
Appointed by the Federal Reserve Bank
Thomas E. Spragens, Jr.
Malcolm B. Chancey, Jr.
Robert M. Hall
Charles D. Storms
President, The Farmers National Bank of Lebanon, Kentucky,
Lebanon, Kentucky
Chairman and Chief Executive Officer, Liberty National Bank & Trust
Company of Louisville, Kentucky, Louisville, Kentucky
Owner, Family Farm, Seymour, Indiana
President and Chief Executive Officer, Red Spot Paint and Varnish
Company, Inc., Evansville, Indiana
1994
1995
1996
1996
Appointed by the Board of Governors
Laura M. Douglas
Daniel L. Ash
John A. Williams
Legal Director, Louisville and Jefferson County, Metropolitan Sewer
District, Louisville, Kentucky
Consultant, Wenz-Neely Company, Louisville, Kentucky
Chairman and Chief Executive Officer, Computer Services, Inc.,
Paducah, Kentucky
1994
1995
1996
MEMPHIS BRANCH
Appointed by the Federal Reserve Bank
Lewis F. Mallory, Jr.
Anthony M. Rampley
Benjamin W. Rawlins, Jr.
Katie S. Winchester
Chairman and Chief Executive Officer, National Bank of Commerce
of Mississippi, Starkville, Mississippi
President, Chief Executive Officer, and Director, Arkansas Glass
Container Corporation, Jonesboro, Arkansas
Chairman and Chief Executive Officer, Union Planters Corporation,
Memphis, Tennessee
President and Director, First Citizens National Bank,
Dyersburg, Tennessee
1994
1995
1996
1996
Appointed by the Board of Governors
Sidney Wilson, Jr.
John V. Myers
Woods E. Eastland
Owner, Wilson Automotive Group Inc., Jackson, Tennessee
President, Better Business Bureau, Memphis, Tennessee
President and Chief Executive Officer, Staple Cotton Cooperative
Association, Greenwood, Mississippi
1994
1995
1996
Directors of Federal Reserve Banks and Branches
115
Term expires
December 31
DISTRICT 9—MINNEAPOLIS
Class A
William W. Strausburg
Susanne V. Boxer
Jerry B. Melby
Chairman and Chief Executive Officer, First Bank Montana, NA.,
and General Manager, First Bank-Regional Banking Group,
Billings, Montana
President and Chief Executive Officer, Houghton National Bank,
Houghton, Michigan
President, First National Bank, Bowbells, North Dakota
1994
1995
1996
Class B
Duane E. Dingmann
Dennis W. Johnson
Clarence D. Mortenson
President, Trubilt Auto Body, Inc., Eau Claire, Wisconsin
President, TMI Systems Design Corporation/TMI Transport
Corporation, Dickinson, North Dakota
President, M/C Professional Associates, Inc., Pierre, South Dakota
1994
1995
Professor of Consumption and Consumer Economics, Department of
Agricultural and Applied Economics, University of Minnesota,
St. Paul, Minnesota
Chairman and Chief Executive Officer, Opus Corporation,
Minneapolis, Minnesota
Chairman and Chief Executive Officer, Graco, Inc.,
Golden Valley, Minnesota
1994
1996
Class C
Jean D. Kinsey
Gerald A. Rauenhorst
David A. Koch
1995
1996
HELENA BRANCH
Appointed by the Federal Reserve Bank
Donald E. Olsson, Jr.
Nancy M. Stephenson
Ronald D. Scott
Executive Vice President, Ronan State Bank, Ronan, Montana
Executive Director, Neighborhood Housing Services,
Great Falls, Montana
President and Chief Executive Officer, The First State Bank of Malta,
Malta, Montana
1994
1994
1995
Appointed by the Board of Governors
Lane W. Basso
Matthew J. Quinn
President, Deaconess Medical Center of Billings, Inc., Billings,
Montana
President, Carroll College, Helena, Montana
1994
1995
DISTRICT 10—KANSAS CITY
Class A
Charles I. Moyer
William L. McQuillan
Lawrence W. Menefee
Chairman and Chief Executive Officer, First National Bank of
Phillipsburg, Phillipsburg, Kansas
President, Chief Executive Officer, and Director, City National Bank,
Greeley, Nebraska
Chairman and Chief Executive Officer, Union Colony Bank,
Greeley, Colorado
1994
1995
1996
478
Federal Reserve Bulletin • May 1994
Term expires
December 31
DISTRICT 10—Continued
Class B
Frank J. Yaklich, Jr.
W. W. Allen
Charles W. Nichols
Deputy Project Manager, Manufacturing Sciences Corporation,
Denver, Colorado
Chairman and Chief Executive Officer, Phillips Petroleum Company,
Bartlesville, Oklahoma
Managing Partner, Davison & Sons Cattle Company, Arnett,
Oklahoma
1994
1995
1996
Class C
Burton A. Dole, Jr.
Herman Cain
Colleen D. Hernandez
Chairman and President, Puritan-Bennett Corporation,
Overland Park, Kansas
President and Chief Executive Officer, Godfather's Pizza, Inc.
Omaha, Nebraska
Executive Director, Kansas City Neighborhood Alliance,
Kansas City, Missouri
1994
1995
1996
DENVER BRANCH
Appointed by the Federal Reserve Bank
Clifford E. Kirk
Richard I. Ledbetter
Peter I. Wold
Peter R. Decker
President and Chief Executive Officer, First National Bank of Gillette,
Gillette, Wyoming
President and Chief Executive Officer, First National Bank of
Farmington, Farmington, New Mexico
Partner, Wold Oil & Gas Company, Casper, Wyoming
President, Peter R. Decker & Associates, Denver, Colorado
1994
1994
1995
1996
Appointed by the Board of Governors
Barbara B. Grogan
Sandra K. Woods
Floyd R. Correa
President, Western Industrial Contractors, Inc., Denver, Colorado
Vice President, Adolph Coors Company, Golden, Colorado
President, Correa Enterprises, Inc., Albuquerque, New Mexico
1994
1995
1996
OKLAHOMA CITY BRANCH
Appointed by the Federal Reserve Bank
John Wm. Laisle
C. Kendric Fergeson
Dennis M. Mitchell
Gordona Duca
President and Chief Executive Officer, MidFirst Bank, SSB,
Oklahoma City, Oklahoma
Chairman and Chief Executive Officer, The National Bank of
Commerce, Altus, Oklahoma
President, Citizens Bank of Ardmore, Ardmore, Oklahoma
President/Owner, Gordona Duca, Inc., Realtors, Tulsa, Oklahoma
1994
1995
1995
1996
Appointed by the Board of Governors
Victor R. Schock
Barry L. Eller
Ernest L. Holloway
President and Chief Executive Officer, Credit Counseling Centers,
Tulsa, Oklahoma
Sr. Vice President and General Manager, MerCruiser, Mercury Marine
Business Unit, Division of Brunswick Corp., Stillwater, Oklahoma
President, Langston University, Langston, Oklahoma
1994
1995
1996
Directors of Federal Reserve Banks and Branches
479
Term expires
DISTRICT 10—Continued
December 31
OMAHA BRANCH
Appointed by the Federal Reserve Bank
Donald A. Leu
Thomas H. Olson
Robert L. Peterson
Bruce R. Lauritzen
President and Chief Executive Officer, Consumer Credit Counseling
Service, Omaha, Nebraska
Chairman, First National Bank, Sidney, Nebraska
Chairman, President, and Chief Executive Officer, IBP, Inc.,
Dakota City, Nebraska
President, First National Bank of Omaha, Omaha, Nebraska
1994
1994
1995
1996
Appointed by the Board of Governors
Arthur L. Shoener
Sheila Griffin
LeRoy W. Thom
Executive Vice President-Operations, Union Pacific Railroad,
Omaha, Nebraska
Special Advisor to the Governor of the State of Nebraska for
International Trade, Lincoln, Nebraska
President, T-L Irrigation Company, Hastings, Nebraska
1994
1995
1996
DISTRICT 11—DALLAS
Class A
Eugene M. Phillips
Vacancy
Gayle M. Earls
Chairman and President, The First National Bank of Panhandle,
Panhandle, Texas
President and Chief Executive Officer, Texas Independent Bank,
Dallas, Texas
1994
1995
1996
Class B
Peyton Yates
Milton Carroll
J. B. Cooper, Jr.
President, Yates Drilling Company and Executive Vice President,
Yates Petroleum Corporation, Artesia, New Mexico
Chairman and Chief Executive Officer, Instrument Products, Inc.,
Houston, Texas
Farmer, Roscoe, Texas
1994
1995
1996
Class C
Cece Smith
Roger R. Hemminghaus
James A. Martin
General Partner, Phillips-Smith Specialty Retail Group, Dallas, Texas
Chairman, President, and Chief Executive Officer, Diamond Inc.,
San Antonio, Texas
Third General Vice President, International Association of Bridge,
Structural and Ornamental Iron Workers, Austin, Texas
1994
1995
1996
EL PASO BRANCH
Appointed by the Federal Reserve Bank
Hugo Bustamante, Jr.
Wayne Merritt
Veronica K. Callaghan
Ben H. Haines, Jr.
Owner and Chief Executive Officer, ProntoLube, Inc. and CarLube,
Inc., El Paso, Texas
Chairman and President, Texas National Bank of Midland,
Midland, Texas
Vice President and Principal, KASCO Ventures, Inc., El Paso, Texas
President and Chief Operating Officer, First National Bank of
Dona Ana County, Las Cruces, New Mexico
1994
1995
1996
1996
480
Federal Reserve Bulletin • May 1994
Term expires
DISTRICT 11—Continued,
December 31
El Paso Branch—Continued
Appointed by the Board of Governors
Alvin T. Johnson
W. Thomas Beard III
Patricia Z. Holland-Branch
President, Management Assistance Corporation of America,
El Paso, Texas
President, Leoncita Cattle Company, Alpine, Texas
President, PZH Contract Design, Inc., El Paso, Texas
1994
1995
1996
HOUSTON BRANCH
Appointed by the Federal Reserve Bank
Tieman H. Dippel, Jr.
J. Michael Solar
Judith B. Craven
Walter E. Johnson
Chairman and President, Brenham Bancshares, Inc., Brenham, Texas
President, Solar & Ellis L.L.P., Houston, Texas
President, United Way of the Texas Gulf Coast, Houston, Texas
President and Chief Executive Officer, Southwest Bank of Texas,
Houston, Texas
1994
1995
1996
1996
Appointed by the Board of Governors
Isaac H. Kempner III
Judy Ley Allen
Robert C. McNair
Chairman, Imperial Holly Corporation, Sugar Land, Texas
Partner and Administrator, Allen Investments, Houston, Texas
Chairman and Chief Executive Officer, Cogen Technologies, Inc.,
Houston, Texas
1994
1995
1996
SAN ANTONIO BRANCH
Appointed by the Federal Reserve Bank
T. Jack Moore III
Gregory W. Crane
Juliet V. Garcia
Douglas G. Macdonald
Owner and Manager, T. J. Moore Lumber Inc., Ingram, Texas
President and Chief Executive Officer, Broadway National Bank,
San Antonio, Texas
President, University of Texas at Brownsville, Brownsville, Texas
President, South Texas National Bank, Laredo, Texas
1994
1995
1996
1996
Appointed by the Board of Governors
H. B. Zachry, Jr.
Carol L. Thompson
Erich Wendl
Chairman and Chief Executive Officer, H. B. Zachry Company,
San Antonio, Texas
Consultant and President, The Thompson Group, Austin, Texas
President and Chief Executive Officer, Maverick Markets, Inc.,
Corpus Christi, Texas
1994
1995
1996
DISTRICT 12—SAN FRANCISCO
Class A
William E. B. Siart
Carl J. Schmitt
Richard L. Mount
President, First Interstate Bancorp, Los Angeles, California
Chairman and Chief Executive Officer, University National Bank &
Trust Company, Palo Alto, California
Chairman, President, and Chief Executive Officer, Saratoga Bancorp,
Saratoga, California
1994
1995
1996
Directors of Federal Reserve Banks and Branches
481
Term expires
December 31
DISTRICT 12—Continued
Class B
William L. Tooley
E. Kay Stepp
Chairman, Tooley & Company, Investment Builders,
Los Angeles, California
Former President and Chief Operating Officer, Portland General
Electric Company, Portland, Oregon
Chairman and Chief Executive Officer, Albertson's, Inc., Boise, Idaho
1994
1995
1996
Gary G. Michael
Class C
Judith M. Runstad
Cynthia A. Parker
James A. Vohs
Partner, Foster Pepper and Shefelman, Seattle, Washington
Executive Director, Anchorage Neighborhood Housing Services, Inc.,
Anchorage, Alaska
Chairman and Chief Executive Officer (Retired), Kaiser Foundation
Health Plan, Inc., and Kaiser Foundation Hospitals, Oakland,
California
1994
1995
1996
LOS ANGELES BRANCH
Appointed by the Federal Reserve Bank
Antonia Hernandez
William S. Randall
Steven R. Sensenbach
Thomas L. Stevens, Jr.
President and General Counsel, Mexican American Legal Defense and
Educational Fund, Los Angeles, California
Chief Executive Officer, Southwest Region, First Interstate Bank,
Phoenix, Arizona
President and Chief Executive Officer, Vineyard National Bank,
Rancho Cucamonga, California
President, Los Angeles Trade-Technical College, Los Angeles,
California
1994
1994
1995
1996
Appointed by the Board of Governors
David L. Moore
Anne L. Evans
Anita Landecker
President, Western Growers Association, Newport Beach, California
Chairman, Evans Hotels, San Diego, California
Western Regional Vice President, Local Initiatives Support
Corporation, Los Angeles, California
1994
1995
1996
PORTLAND BRANCH
Appointed by the Federal Reserve Bank
Stuart H. Compton
Elizabeth K. Johnson
Gerry B. Cameron
Cecil W. Drinkward
Chairman, Pioneer Trust Bank, N.A., Salem, Oregon
President, TransWestern, Inc., Scappoose, Oregon
Vice Chairman and Chief Executive Officer, U.S. Bancorp,
Portland, Oregon
President and Chief Executive Officer, Hoffman Construction
Company, Portland, Oregon
1994
1995
1996
1996
Appointed by the Board of Governors
William A. Hilliard
Carol A. Whipple
Ross R. Runkel
Editor, The Oregonian, Portland, Oregon
Owner-Manager, Rocking C Ranch, Elkton, Oregon
Professor of Law, Willamette University, Salem, Oregon
1994
1995
1996
482
Federal Reserve Bulletin • May 1994
Term expires
DISTRICT 12—Continued
December 31
SALT LAKE CITY BRANCH
Appointed by the Federal Reserve Bank
June M. Morris
Roy C. Nelson
Nancy Mortensen
Daniel R. Nelson
Chief Executive Officer, Morris Air Corporation, Salt Lake City, Utah
President, Bank of Utah, Ogden, Utah
Vice President-Marketing, ZCMI, Salt Lake City, Utah
Chairman and Chief Executive Officer, West One Bancorp,
Boise, Idaho
1994
1995
1996
1996
Appointed by the Board of Governors
Gerald R. Sherratt
Richard E. Davis
Constance G. Hogland
President, Southern Utah University, Cedar City, Utah
President and Chief Executive Officer, Salt Lake Convention &
Visitors Bureau, Salt Lake City, Utah
Executive Director, Boise Neighborhood Housing Services, Inc.,
Boise, Idaho
1994
1995
1996
SEATTLE BRANCH
Appointed by the Federal Reserve Bank
Thomas E. Cleveland
Constance L. Proctor
Tomio Moriguchi
John V. Rindlaub
Chairman and Chief Executive Officer, Enterprise Bank of Bellevue,
Bellevue, Washington
Partner, Alston, Courtnage, MacAulay & Proctor, Seattle, Washington
President, Uwajimaya, Inc., Seattle, Washington
Chairman and Chief Executive Officer, Seafirst Bank, Seattle,
Washington
1994
1995
1996
1996
Appointed by the Board of Governors
William R. Wiley
Emilie A. Adams
George F. Russell, Jr.
Senior Vice President, Battelle Memorial Institute; Director,
Battelle/Pacific Northwest Division; and Director, U.S. Department
of Energy, Pacific Northwest Laboratory, Richland, Washington
President and Chief Executive Officer, Better Business Bureau
Foundation, Seattle, Washington
Chairman, Frank Russell Company, Tacoma, Washington
1994
1995
1996
Al
Financial and Business Statistics
CONTENTS
WEEKLY REPORTING COMMERCIAL BANKS
A3 Guide to Tabular Presentation
Assets and liabilities
A21 Large reporting banks
A23 Branches and agencies of foreign banks
Domestic Financial Statistics
MONEY STOCK AND BANK CREDIT
FINANCIAL MARKETS
A4
A24 Commercial paper and bankers dollar
acceptances outstanding
A25 Prime rate charged by banks on short-term
business loans
A26 Interest rates—money and capital markets
A27 Stock market—Selected statistics
A5
A6
A7
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds—Large member banks
FEDERAL FINANCE
POLICY INSTRUMENTS
A8 Federal Reserve Bank interest rates
A9 Reserve requirements of depository institutions
A10 Federal Reserve open market transactions
FEDERAL RESERVE BANKS
A l l Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings
MONETARY AND CREDIT AGGREGATES
A13 Aggregate reserves of depository institutions
and monetary base
A14 Money stock, liquid assets, and debt measures
A16 Deposit interest rates and amounts outstanding—
commercial and BIF-insured banks
A17 Bank debits and deposit turnover
COMMERCIAL BANKING INSTITUTIONS
A18 Assets and liabilities, Wednesday figures
A28
A29
A30
A30
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types
and ownership
A31 U.S. government securities
dealers—Transactions
A32 U.S. government securities dealers—Positions
and financing
A3 3 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 New security issues—Tax-exempt state and local
governments and corporations
A3 5 Open-end investment companies—Net sales
and assets
A35 Corporate profits and their distribution
A35 Nonfarm business expenditures on new
plant and equipment
A36 Domestic finance companies—Assets and
liabilities, and consumer, real estate, and business
credit
2
Federal Reserve Bulletin • May 1994
Domestic Financial Statistics—Continued
A55 Selected U.S. liabilities to foreign official
institutions
REAL ESTATE
A37 Mortgage markets
A38 Mortgage debt outstanding
REPORTED BY BANKS
IN THE UNITED STATES
CONSUMER INSTALLMENT CREDIT
A55
A56
A58
A59
A39 Total outstanding
A39 Terms
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A59 Banks' own claims on unaffiliated foreigners
A60 Claims on foreign countries—Combined
domestic offices and foreign branches
FLOW OF FUNDS
A40
A42
A43
A44
Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities
Domestic Nonfinancial Statistics
SELECTED MEASURES
A45 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross domestic product and income
A52 Personal income and saving
REPORTED BYNONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES
A61 Liabilities to unaffiliated foreigners
A62 Claims on unaffiliated foreigners
SECURITIES HOLDINGS AND TRANSACTIONS
A63 Foreign transactions in securities
A64 Marketable U.S. Treasury bonds and
notes—Foreign transactions
INTEREST AND EXCHANGE RATES
A65 Discount rates of foreign central banks
A65 Foreign short-term interest rates
A66 Foreign exchange rates
A67 Guide to Statistical Releases and
Special Tables
International Statistics
SPECIAL TABLES
SUMMARY STATISTICS
A53
A54
A54
A54
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A68 Assets and liabilities of commercial banks,
December 31, 1993
A74 Terms of lending at commercial banks,
February 1994
A78 Assets and liabilities of U.S. branches and agencies
of foreign banks, December 31, 1993
3
Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
c
e
n.a.
n.e.c.
P
r
*
0
ATS
BIF
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
Corrected
Estimated
Not available
Not elsewhere classified
Preliminary
Revised (Notation appears on column heading
when about half of the figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
Calculated to be zero
Cell not applicable
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Federal Savings and Loan Insurance Corporation
Group of Seven
G-10
GNMA
GDP
HUD
IMF
IO
IPCs
IRA
MMDA
MSA
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SAIF
SCO
SDR
SIC
VA
Group of Ten
Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Metropolitan statistical area
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Repurchase agreement
Resolution Trust Corporation
Savings Association Insurance Fund
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Department of Veterans Affairs
GENERAL INFORMATION
In many of the tables, components do not sum to totals because
of rounding.
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of funds figures also
include not fully guaranteed issues) as well as direct obligations of the Treasury. "State and local government" also includes municipalities, special districts, and other political
subdivisions.
A4
Domestic Financial Statistics • May 1994
1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted1
1993r
1993r
1994
Monetary or credit aggregate
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base 3
5
6
7
8
9
Concepts
Ml
M2
M3
L
Debt
Oct.
Nov.
Q3
Q4
9.3
8.7
9.5
9.5
10.8
12.4
10.6
10.2
12.4
12.3
10.9
10.6
14.6
14.6
16.0
9.9
20.0
20.4
23.1
10.6
12.8
12.9
16.9
8.5
1.5
2.3
1.7
5.5
.4
-7.4
.5
11.4
3.6
9.9
3.7
13.3
8.3
-1.3
-3.2
-1.7
4.0
10.7
2.2
2.1
3.1
4.5
12.0
2.4
1.0
.9
5.7
9.4
2.0
2.3
1.5
5.2
9.0
.7
1.7
1.8
3.5
9.7
3.9
3.7
2.7
6.2
6.5
2.4
3.6
4.4
7.5
5.4
2.3
1.2
5.0
5.0
5.3
-1.1
-7.8
n.a.
n.a.
-5.3
-12.9
-1.4
1.6
-1.7
-6.6
-1.3
4.0
-3.1
7.5
1.2
2.6
.6
9.7
.8
-4.9
-4.1
-44.4
3.0
-8.3
-18.1
5.1
-9.2
-.6
4.9
-10.6
-7.5
3.6
-7.4
-.2
.6
-7.6
6.1
6.2
-7.4
-8.2
4.4
-2.3
5.2
7.3
-7.9
9.1
1.5
-3.9
-24.0
-.2
-20.0
-14.2
.7
-11.9
-8.5
2.3
-14.4
-4.5
-.4
-11.9
-6.9
.0
-11.1
-1.9
-2.5
-9.3
-3.8
2.0
-16.2
-34.0
.0
-8.0
3.9
-.8
-11.9
-7.8
-7.8
-"17.6
.2
-2.2
-1.8
-10.5
2.1
8.8
-.7
22.0
10.4
3.1
7.2
13.6
-3.4
-26.2
-13.1
-98.4
7.6
2.7
10.4
2.4
9.2
4.5
5.5
5.1
-1.8
5.5
9.2
5.1
13.3
5.4
2.8
5.8
Dec.
Jan.
Feb.
Q2
Q1
institutions2
of money, liquid assets, and debt4
Nontransaction
10 In M2
11 In M3 only 6
components
Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time
Large time 8 - 9
Thrift institutions
15
Savings, including MMDAs
16
Small time^
17
Large time '
12
13
14
Money market mutual funds
IK General purpose and broker-dealer
19 Institution-only
Debt
components4
20 Federal
21 Nonfederal
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or " b r e a k s , " associated with regulatory changes in reserve requirements. (See also table 1.20.)
3. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits, and Vault
C a s h " and for all weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
M l : (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the
vaults of depository institutions, (2) travelers checks of nonbank issuers, (3)
demand deposits at all commercial banks other than those owed to depository
institutions, the U.S. government, and foreign banks and official institutions, less
cash items in the process of collection and Federal Reserve float, and (4) other
checkable deposits (OCDs), consisting of negotiable order of withdrawal (NOW)
and automatic transfer service (ATS) accounts at depository institutions, credit
union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted M l is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: M l plus (1) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and small time deposits (time deposits—including retail RPs—in
amounts of less than $100,000), and (3) balances in both taxable and tax-exempt
general-purpose and broker-dealer money market funds. Excludes individual
retirement accounts (IRAs) and Keogh balances at depository institutions and
money market funds. Also excludes all balances held by U.S. commercial banks,
money market funds (general purpose and broker-dealer), foreign governments
and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this
result to seasonally adjusted M1.
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) term Eurodollars held
by U.S. residents at foreign branches of U.S. banks worldwide and at all banking
offices in the United Kingdom and Canada, and (3) balances in both taxable and
n.a.
n.a.
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial
sectors are monthly averages, derived by averaging adjacent month-end levels.
Growth rates for debt reflect adjustments for discontinuities over time in the levels
of debt presented in other tables.
5. Sum of (1) overnight RPs and Eurodollars, (2) money market fund balances
(general purpose and broker-dealer), (3) savings deposits (including MMDAs),
and (4) small time deposits.
6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S.
residents, and (4) money market fund balances (institution-only), less (5) a
consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market funds. This sum is
seasonally adjusted as a whole.
7. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRA and Keogh account balances at commercial banks and
thrift institutions are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market
funds, depository institutions, U.S. government and foreign banks and official
institutions.
Money Stock and Bank Credit
A5
1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT 1
Millions of dollars
A v e r a g e of
daily figures
A v e r a g e of daily figures f o r w e e k ending on d a t e indicated
1994
1994
1993
Jan.
Dec.
Feb.
Jan. 12
J a n . 19
J a n . 26
Feb. 2
Feb. 9
F e b . 16
F e b . 23
SUPPLYING RESERVE FUNDS
1 R e s e r v e B a n k credit outstanding
U . S . g o v e r n m e n t securities 2
2
Bought o u t r i g h t — S y s t e m a c c o u n t
3
Held u n d e r r e p u r c h a s e a g r e e m e n t s
F e d e r a l agency obligations
4
Bought outright
5
Held u n d e r r e p u r c h a s e a g r e e m e n t s
6
Acceptances
L o a n s to d e p o s i t o r y institutions
7
A d j u s t m e n t credit
8
Seasonal credit
9
E x t e n d e d credit
10
Float
11
Other Federal Reserve assets
12 Gold stock
13 Special d r a w i n g rights certificate a c c o u n t
14 T r e a s u r y c u r r e n c y o u t s t a n d i n g
...
...
.
374,694
374,433
373,197
372,716
373,899
371,042
377,235
371,477
371,529
372,725
332,413
4,060
332,463
2,429
332,397
2,565
333,022
1,487
332,673
1,577
332,094
0
331,832
4,508
332,868
0
331,708
886
332,277
3,364
4,706
265
0
4,510
267
0
4,401
214
0
4,522
186
0
4,522
186
0
4,497
0
0
4,437
607
0
4,437
0
0
4,413
95
0
4,382
275
0
22
30
0
829
32,369
86
14
0
1,963
32,702
56
15
0
1,227
32,323
9
9
0
1,106
32,376
115
13
0
2,223
32,591
19
20
0
1,683
32,729
35
16
0
2,516
33,285
31
14
0
1,270
32,857
130
15
0
1,692
32,589
31
15
0
853
31,528
11,054
8,018
22,060 r
11,053
8,018
22,130
11,053
8,018
22,191
11,053
8,018
22,116
11,053
8,018
22,130
11,053
8,018
22,145
11,053
8,018
22,160
11,053
8,018
22,174
11,053
8,018
22,188
11,053
8,018
22,202
362,55 l r
375
362,849
401
363,787
372
363,762
470
362,758
383
361,780
383
360,874
377
362,426
375
363,957
372
364,905
373
6,469
238
7,523
252
6,263
260
4,035
191
5,647
368
8,778
204
13,224
223
5,960
263
4,691
307
5,985
261
6,630 r
293
6,859
288
6,988
313
6,957
239
7,095
297
6,844
290
6,697
288
7,150
309
7,183
315
6,544
312
9,628
9,629
9,784
9,552
9,737
9,742
9,686
9,601
9,860
9,826
27,096
26,638
26,103
25,792
ABSORBING RESERVE FUNDS
15 C u r r e n c y in circulation
16 T r e a s u r y cash holdings
D e p o s i t s , o t h e r than r e s e r v e b a l a n c e s , with
Federal Reserve Banks
17
Treasury
18
Foreign
19
Service-related b a l a n c e s and
adjustments
20
Other
21 O t h e r F e d e r a l R e s e r v e liabilities and
capital
22 R e s e r v e b a l a n c e s with F e d e r a l
Reserve Banks
29,644
r
27,834
End-of-month
Jan.
Dec.
26,692
28,697
28,815
24,236
Wednesday
figures
Feb.
J a n . 12
figures
J a n . 19
J a n . 26
Feb. 2
Feb. 9
F e b . 16
F e b . 23
SUPPLYING RESERVE FUNDS
1 R e s e r v e B a n k credit o u t s t a n d i n g
U . S . g o v e r n m e n t securities
2
Bought outright—System account
3
Held u n d e r r e p u r c h a s e a g r e e m e n t s
F e d e r a l a g e n c y obligations
4
B o u g h t outright
5
Held under repurchase agreements
6
Acceptances
L o a n s t o d e p o s i t o r y institutions
7
A d j u s t m e n t credit
8
S e a s o n a l credit
9
E x t e n d e d credit
10
Float
11
Other Federal Reserve assets
...
...
12 G o l d s t o c k
13 Special d r a w i n g rights certificate a c c o u n t .
14 T r e a s u r y c u r r e n c y o u t s t a n d i n g
384,226 r
382,176
375,264
370,834
385,967
375,518
385,430
374,978
370,332
378,367
332,015
12,187
331,995
8,657
333,404
4,925
332,913
0
332,301
7,790
334,706
0
332,102
11,601
332,508
0
331,286
2,698
335,098
3,449
4,638
1,025
0
4,437
519
0
4,335
160
0
4,522
0
0
4,522
859
0
4,437
0
0
4,437
2,050
0
4,437
0
0
4,382
452
0
4,382
230
0
84
10
0
909 r
33,358
109
12
0
2,453
33,993
34
14
0
384
32,008
3
11
0
942
32,444
19
17
0
7,450
33,010
9
19
0
3,504
32,843
30
14
0
1,168
34,029
22
15
0
4,994
33,003
31
15
0
146
31,322
9
16
0
3,735
31,448
11,053
8,018
22,101 r
11,053
8,018
22,160
11,053
8,018
22,216
11,053
8,018
22,116
11,053
8,018
22,130
11,053
8,018
22,145
11,053
8,018
22,160
11,053
8,018
22,174
11,053
8,018
22,188
11,053
8,018
22,202
365,277 r
377
360,919
378
364,931
365
363,703
384
363,219
377
361,558
378
361,969
375
364,082
374
364,753
374
365,815
365
14,809
386
21,541
257
4,886
191
4,093
171
7,450
235
9,184
327
20,148
301
5,053
242
2,953
385
4,920
189
6,571 r
397
6,697
255
7,226
373
6,957
299
7,095
297
6,844
287
6,697
310
7,150
319
7,183
324
6,544
307
9,292
9,759
10,337
9,459
9,752
9,597
9,481
9,548
9,697
9,705
23,601
28,243
26,955
38,744
28,560
27,380
29,455
25,922
31,795
ABSORBING RESERVE FUNDS
15 C u r r e n c y in circulation
16 T r e a s u r y c a s h holdings
D e p o s i t s , o t h e r t h a n r e s e r v e b a l a n c e s , with
Federal Reserve Banks
17
Treasury
18
Foreign
19
Service-related b a l a n c e s a n d
adjustments
20
Other
21 O t h e r F e d e r a l R e s e r v e liabilities and
capital
22 R e s e r v e b a l a n c e s with F e d e r a l
Reserve Banks3
28,289
r
1. F o r a m o u n t s of c a s h held a s r e s e r v e s , see table 1.12.
2. Includes securities l o a n e d — f u l l y guaranteed by U . S . g o v e r n m e n t securities
pledged with F e d e r a l R e s e r v e B a n k s — a n d excludes securities sold a n d scheduled
t o be bought b a c k u n d e r m a t c h e d s a l e - p u r c h a s e transactions.
3. E x c l u d e s required clearing b a l a n c e s and a d j u s t m e n t s t o c o m p e n s a t e f o r
float,
A6
DomesticNonfinancialStatistics • May 1994
1.12 RESERVES AND BORROWINGS
Depository Institutions1
Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification
1
2
3
4
5
6
7
8
9
10
2
Reserve balances with Reserve Banks
Total vault cash 3
Applied vault c a s h 4 ,
Surplus vault cash
Total reserves 6
Required reserves
f ...
E x c e s s reserve balances at Reserve Banks . . .
Total borrowings at Reserve B a n k s
Seasonal borrowings
E x t e n d e d credit
1991
1992
1993
Dec.
Dec.
Dec.
26,659
32,509 r
28,872
3,637 r
55,532
54,553
979
192
38
1
25,368
34,542 r
31,172
3,370*
56,540
55,385
1,155
124
18
1
1994
1993
Aug.
r
29,374
36,812
33,484
3,328
62,858 r
61,795 r
l,063 r
82
31
0
26,564
34,516
31,203
3,313
57,767
56,815
952
352
234
0
Sept.
27,274
35,220 r
31,863
3,357 r
59,136
58,046
1,090
428
236
0
Oct.
28,297
35,184
31,739
3,445
60,036
58,947
1,089
285
192
0
Nov.
29,018
35,655
32,278
3,377 r
61,2%
60,195
1,101
89
75
0
Dec.
r
29,374
36,812
33,484
3,328
62,858 r
61,795 r
l,063 r
82
31
0
Jan.
Feb.
27,817
37,907
34,254
3,653
62,072
60,624
1,448
73
15
0
26,923
36,295
32,671
3,624
59,594
58,453
1,141
70
15
0
Biweekly averages of daily figures for weeks ending on date indicated
1993
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks 2
Total vault cash 3
Applied vault c a s h 4 ,
Surplus vault cash
Total reserves 6
Required reserves
E x c e s s reserve balances at Reserve Banks
Total borrowings at Reserve Banks 8
Seasonal borrowings
Extended credit 9
...
Oct. 27
Nov. 10
Nov. 24
Dec. 8
Dec. 22
Jan. 5
Jan. 19
Feb. 2
F e b . 16
Mar. 2
28,798
34,313
30,946
3,368
59,744
58,692
1,052
205
189
0
28,017
36,217 r
32,767
S^SCF
60,784
59,722
1,062
132
105
0
29,742
34,894
31,566
3,328
61,308
60,205
1,102
74
68
0
28,999
36,494
33,125
3,369
62,124
60,962
1,162
56
43
0
28,950
37,202
33,821
3,381
62,771
61,880
891
59
34
0
30,367 r
36,489
33,279
3,210
63,646 r
62,405 r
l,241 r
142
16
0
28,745
38,241
34,691
3,550
63,435
61,759
1,676
74
11
0
25,672
38,108
34,152
3,957
59,824
58,557
1,267
45
18
0
26,339
37,475
33,651
3,824
59,989
58,878
1,112
95
15
0
27,812
34,617
31,282
3,335
59,094
57,940
1,154
45
15
0
1. Data in this table also appear in the B o a r d ' s H.3 (502) weekly statistical
release. F o r ordering address, see inside front cover.
2. Excludes required clearing balances and adjustments to compensate for float
and includes other off-balance-sheet " a s - o f " adjustments.
3. Total " l a g g e d " vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash
can be used to satisfy reserve requirements. The maintenance period for weekly
reporters ends sixteen days after the lagged computation period during which the
vault cash is held. Before N o v . 25,1992, the maintenance period ended thirty days
after the lagged computation period.
4. All vault cash held during the lagged computation period by " b o u n d "
institutions (that is, those whose required reserves exceed their vault cash) plus
the amount of vault cash applied during the maintenance period by " n o n b o u n d "
1994
institutions (that is, those whose vault cash exceeds their required reserves) t o
satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve B a n k s (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Also includes adjustment credit.
9. Consists of borrowing at the discount window u n d e r the terms and conditions established for the extended credit program t o help depository institutions
deal with sustained liquidity pressures. Because there is not the same need t o
repay such borrowing promptly as with traditional short-term adjustment credit,
the money market impact of extended credit is similar to that of nonborrowed
reserves.
Money Stock and Bank Credit
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
A7
Large Banks1
Millions of dollars, averages of daily figures
1994, week ending Monday
Source and maturity
1
2
3
4
5
6
7
8
Federal funds purchased, repurchase agreements, and
other selected
borrowings
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
official institutions, and U.S. government agencies
For one day or under continuing contract
For all other maturities
Repurchase agreements on U.S. government
agency securities
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
and
Jan. 3
Jan. 10
Jan. 17
Jan. 24
Jan. 31
Feb. 7
Feb. 14
Feb. 21
Feb. 28
71,013
14,689
72,206
13,159
69,412
13,339
69,901
14,008
68,093
13,283
70,698
13,412
68,647
13,216
69,380
12,394
67,817
12,273
15,197
22,201
14,680
20,858
15,997
19,981
22,299
19,147
18,438
17,826
21,005
17,033
19,805
17,192
21,562
16,883
22,806
17,384
18,065
33,334
18,506
,34,745
17,572
33,997
18,277
32,358
16,634
32,764
17,903
30,461
21,082
31,191
19,800
29,355
19,883
31,065
30,785
17,948
30,371
15,758
30,158
16,372
31,539
16,307
33,268
16,856
30,489
16,281
29,660
17,279
30,076
18,224
30,743
17,615
47,233
26,497
44,243
24,657
42,538
26,425
46,578
28,110
46,844
28,735
47,399
29,225
44,030
24,482
43,221
24,542
41,945
24,834
federal
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
1. Banks with assets of $4 billion or more as of Dec. 31, 1988.
Data in this table also appear in the Board's H.5 (507) weekly statistical release.
For ordering address, see inside front cover.
2. Brokers and nonbank dealers in securities, other depository institutions,
foreign banks and official institutions, and U.S. government agencies.
A8
DomesticNonfinancialStatistics • May 1994
1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit 1
Federal Reserve
Bank
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
On
4/1/94
Effective date
Previous rate
On
4/1/94
7/2/92
7/2/92
7/2/92
7/6/92
7/2/92
7/2/92
3.5
3.6
3
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
Seasonal credit 2
7/2/92
7/7/92
7/2/92
7/2/92
7/2/92
7/2/92
3
3.5
3.6
Extended credit 3
Effective date
Previous rate
On
4/1/94
3/30/94
3/30/94
3/30/94
3/30/94
3/30/94
3/30/94
3.5
4.1
3/30/94
3/30/94
3/30/94
3/30/94
3/30/94
3/30/94
3.5
4.1
Effective date
Previous rate
3/30/94
3/30/94
3/30/94
3/30/94
3/30/94
3/30/94
4.0
3/30/94
3/30/94
3/30/94
3/30/94
3/30/94
3/30/94
4.0
Range of rates for adjustment credit in recent years 4
Effective date
In effect Dec. 31, 1977
1978—Jan.
May
July
Aug.
Sept.
Oct.
Nov.
9
20
11
12
3
10
21
22
16
20
1
3
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
1980—Feb. 15
19
May 29
30
June 13
16
29
July 28
Sept. 26
Nov. 17
Dec. 5
Range (or
level)—
All F.R.
Banks
6
6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5
10
10-10.5
10.5
10.5-11
11
11-12
12
12-13
13
12-13
12
11-12
11
10
10-11
11
12
12-13
F.R.
Bank
of
N.Y.
6
6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5
10
10.5
10.5
11
11
12
12
13
13
13
12
11
11
10
10
11
12
13
Effective
1981-- M a y
5
Nov.
7
Dec.
6
4
1982--- J u l y
70
73
13-14
14
13-14
13
12
F.R.
Bank
of
N.Y.
14
14
13
13
12
Nov. 77
76
Dec. 14
IS
17
11.5-12
11.5
11-11.5
11
10.5
10-10.5
10
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5
11.5
11.5
11
11
10.5
10
10
9.5
9.5
9
9
9
8.5
8.5
9
n
Nov. 71
76
Dec. 74
8.5-9
9
8.5-9
8.5
8
9
9
8.5
8.5
8
1985-—May
—May 70
74
7.5-8
7.5
7.5
7.5
1986-—Mar. 7
10
Apr. 71
July 11
7-7.5
7
6.5-7
6
7
7
6.5
6
Aug.
7
3
16
77
Oct.
30
1?
n
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1986—Aug. 21
22
5.5-6
5.5
5.5
5.5
1987—Sept. 4
11
5.5-6
6
6
6
1988—Aug.
9
11
6-6.5
6.5
6.5
6.5
1989—Feb. 24
27
6.5-7
7
7
7
Effective date
6.5
6.5
1
4
30
2
13
17
6
7
20
24
6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5
6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5
2
7
3-3.5
3
3
3
3
3
1990—Dec. 19
1991—Feb.
Apr.
May
Sept.
Nov.
1984-—Apr.
—Apr.
Dec.
1992—July
In effect Apr. 1, 1994
1. Available on a short-term basis to help depository institutions meet temporary needs for funds that cannot be met through reasonable alternative sources.
The highest rate established for loans to depository institutions may be charged on
adjustment-credit loans of unusual size that result from a major operating problem
at the borrower's facility.
2. Available to help relatively small depository institutions meet regular
seasonal needs for funds that arise from a clear pattern of intrayearly movements
in their deposits and loans and that cannot be met through special industry
lenders. The discount rate on seasonal credit takes into account rates on market
sources of funds and ordinarily is reestablished on the first business day of each
two-week reserve maintenance period; however, it is never less than the discount
rate applicable to adjustment credit.
3. May be made available to depository institutions when similar assistance is
not reasonably available from other sources, including special industry lenders.
Such credit may be provided when exceptional circumstances (including sustained deposit drains, impaired access to money market funds, or sudden
deterioration in loan repayment performance) or practices involve only a particular institution, or to meet the needs of institutions experiencing difficulties
adjusting to changing market conditions over a longer period (particularly at times
of deposit disintermediation). The discount rate applicable to adjustment credit
Range (or
level)—
All F.R.
Banks
ordinarily is charged on extended-credit loans outstanding less than thirty days;
however, at the discretion of the Federal Reserve Bank, this time period may be
shortened. Beyond this initial period, a flexible rate somewhat above rates on
market sources of funds is charged. The rate ordinarily is reestablished on the first
business day of each two-week reserve maintenance period, but it is never less
than the discount rate applicable to adjustment credit plus 50 basis points.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual
Statistical Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment-credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. A surcharge of 2 percent was reimposed on Nov. 17, 1980; the surcharge
was subsequently raised to 3 percent on Dec. 5, 1980, and to 4 percent on May 5,
1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2
percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the
surcharge was changed from a calendar quarter to a moving thirteen-week period.
The surcharge was eliminated on Nov. 17, 1981.
Policy Instruments
A9
1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Requirement
Type of deposit 2
1
2
Net transaction
accounts3
$0 million-$51.9 million
More than $51.9 million 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 Act 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. N o corresponding adjustment is to be made in
the event of a decrease. On Dec. 21, 1993, the exemption was raised from $3.8
million to $4.0 million. The exemption applies in the following order: (1) net
negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable
deductions); and (2) net other transaction accounts. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement.
3. Include all deposits against which the account holder is permitted to make
withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of three per month
for the purpose of making payments to third persons or others. However, money
market deposit accounts (MMDAs) and similar accounts subject to the rules that
Percentage of
deposits
Effective date
3
10
12/21/93
12/21/93
0
12/27/90
0
12/27/90
permit no more than six preauthorized, automatic, or other transfers per month,
of which no more than three may be checks, are not transaction accounts (such
accounts are savings deposits).
The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage change in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 21,
1993, for institutions reporting quarterly and weekly, the amount was increased
from $46.8 million to $51.9 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on
Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for
institutions that report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than 1 Vi years was reduced from 3
percent to 1 Vi percent for the maintenance period that began Dec. 13, 1990, and
to zero for the maintenance period that began Dec. 27, 1990. The reserve
requirement on nonpersonal time deposits with an original maturity of M years
or more has been zero since Oct. 6, 1983.
For institutions that report quarterly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than 1Vi years was reduced from 3
percent to zero on Jan. 17, 1991.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3
percent to zero in the same manner and on the same dates as was the reserve
requirement on nonpersonal time deposits with an original maturity of less than
1 Vi years (see note 4).
A10
DomesticNonfinancialStatistics • May 1994
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1994
1993
T y p e of transaction
and maturity
1991
1992
1993
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
U . S . TREASURY SECURITIES
Outright transactions
(excluding
transactions)
T r e a s u r y bills
Gross purchases
G r o s s sales
Exchanges
Redemptions
Others within one year
Gross purchases
G r o s s sales
Maturity shifts
Exchanges
Redemptions
O n e t o five y e a r s
Gross purchases
G r o s s sales
Maturity shifts
Exchanges
Five to ten years
Gross purchases
Gross sales
•
Maturity shifts
Exchanges
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
All m a t u r i t i e s
Gross purchases
G r o s s sales
Redemptions
matched
20,158
120
277,314
1,000
14,714
1,628
308,699
1,600
17,717
0
332,229
468
0
0
35,943
0
902
0
27,775
0
366
0
31,128
0
1,396
0
25,783
468
5,9IR
0
27,641
0
1,394
0
33,536
0
0
0
28,986
0
3,043
0
24,454
-28,090
1,000
1,096
0
36,662
-30,543
0
1,223
0
0
0
0
0
0
0
0
0
100
0
1,497
-5,491
0
411
0
3,074
-1,861
0
0
0
913
-1,566
0
0
0
5,158
-7,641
0
189
0
2,910
-2,910
0
0
0
0
0
0
6,583
0
-21,211
24,594
13,118
0
-34,478
25,811
10,350
0
-27,140
0
200
0
666
0
1,100
0
-834
3,866
2,400
0
-3,074
1,861
0
0
-31
1,566
100
0
-4,689
5,341
2,619
0
-2,910
2,910
0
0
0
0
1,280
0
-2,037
2,894
2,818
0
-1,915
3,532
4,168
0
0
0
0
0
-666
0
500
0
-432
1,100
797
0
0
0
0
0
-882
0
0
0
-272
2,300
1,008
0
0
0
0
0
0
0
375
0
-1,209
600
2,333
0
-269
1,200
3,457
0
0
0
0
0
0
0
100
0
-231
525
717
0
0
0
0
0
0
0
0
0
-197
0
826
0
0
0
0
0
0
0
31,439
120
1,000
34,079
1,628
1,600
36,915
0
468
200
0
0
2,702
0
0
4,691
0
0
1,396
0
468
6,035
0
0
0
0
616
1,570,456
1,571,534
1,482,467
1,480,140
1,475,085
1,475,941
115,504
117,074
136,037
135,705
124,898
122,578
115,160
112,837
109,941
112,772
137,645
136,821
132,872
133,468
310,084
311,752
378,374
386,257
475,447
470,723
41,190
56,246
53,053
48,263
62,905
61,399
27,693
30,397
38,493
34,072
33,751
29,577
25,818
29,348
29,729
20,642
42,027
-13,286
7,160
3,878
-4,099
13,263 R
9,386
-3,550
0
5
292
0
0
632
0
0
1,072
0
0
366
0
0
125
0
0
35
0
0
70
0
0
15
0
0
81
0
0
202
Repurchase
agreements
33 G r o s s p u r c h a s e s
34 G r o s s s a l e s
22,807
23,595
14,565
14,486
35,063
34,669
3,479
4,428
2,485
2,415
9,810
7,734
3,812
5,509
2,841
2,861
2,211
1,615
2,600
3,106
35 N e t c h a n g e in f e d e r a l a g e n c y o b l i g a t i o n s
-1,085
-554
-678
-1,315
-55
2,041
-1,767
-35
515
-708
36 T o t a l n e t c h a n g e in S y s t e m O p e n M a r k e t
Account
28,644
20,089
41,348
-14,601
7,105
5,919
-5,866
9,901
-4,258
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Matched
transactions
25 G r o s s s a l e s
26 G r o s s p u r c h a s e s
Repurchase
agreements
27 G r o s s p u r c h a s e s
28 G r o s s sales
29 N e t c h a n g e in U . S . T r e a s u r y s e c u r i t i e s
6,01 R
0
0
FEDERAL AGENCY OBLIGATIONS
Outright
transactions
30 G r o s s p u r c h a s e s
31 G r o s s s a l e s
32 R e d e m p t i o n s
1. S a l e s , r e d e m p t i o n s , a n d n e g a t i v e f i g u r e s r e d u c e h o l d i n g s o f t h e S y s t e m O p e n
M a r k e t A c c o u n t ; all o t h e r figures i n c r e a s e s u c h h o l d i n g s .
13,228'
Federal Reserve Banks
1.18 FEDERAL RESERVE BANKS
All
Condition and Federal Reserve Note Statements1
Millions of dollars
E n d of m o n t h
Wednesday
Account
1994
J a n . 26
Feb. 2
Feb. 9
1994
1993
F e b . 16
F e b . 23
D e c . 31
J a n . 31
F e b . 28
Consolidated condition s t a t e m e n t
ASSETS
1 Gold certificate a c c o u n t
2 Special d r a w i n g rights certificate a c c o u n t
3 Coin
Loans
4 T o d e p o s i t o r y institutions
5 Other
6 A c c e p t a n c e s held u n d e r r e p u r c h a s e a g r e e m e n t s
Federal agency
obligations
7 Bought outright
8 Held u n d e r r e p u r c h a s e a g r e e m e n t s
11,053
8,018
418
11,053
8,018
439
11,053
8,018
457
11,053
8,018
453
11,053
8,018
444
11,053
8,018
372
11,053
8,018
439
11,053
8,018
446
28
0
0
44
0
0
36
0
0
46
0
0
25
0
0
94
0
0
122
0
0
48
0
0
4,437
0
4,437
2,050
4,437
0
4,382
452
4,382
230
4,638
1,025
4,437
519
4,335
160
334,706
343,703
332,508
333,984
338,547
344,202
340,652
338,329
10 Bought outright 2
11
Bills
12
Notes
13
Bonds
14 Held u n d e r r e p u r c h a s e a g r e e m e n t s
334,706
163,674
131,460
39,572
0
332,102
161,070
131,460
39,572
11,601
332,508
161,476
131,460
39,572
0
331,286
160,254
131,311
39,721
2,698
335,098
164,066
131,311
39,721
3,449
332,015
160,368
132,076
39,572
12,187
331,995
160,963
131,460
39,572
8,657
333,404
162,372
131,311
39,721
4,925
15 Total loans a n d securities
339,171
350,233
336,981
338,864
343,184
349,960
345,729
342,872
8,593
1,054
7,005
1,054
10,076
1,054
6,121
1,054
11,995
1,055
6,454
1,055
4,326
1,054
2,435
1,053
22,391
9,360
22,342
10,615
22,355
9,569
22,368
7,876
22,279
8,157
22,340
9,999
22,336
10,550
22,769
8,209
400,059
410,760
399,564
395,806
406,184
409,251
403,505
396,855
9 Total U.S. T r e a s u r y securities
16 I t e m s in p r o c e s s of collection
17 B a n k p r e m i s e s
Other
assets
18 D e n o m i n a t e d in foreign c u r r e n c i e s 3
19 All o t h e r 4
20 Total assets
LIABILITIES
340,209
340,623
342,739
343,392
344,422
343,925
339,575
343,526
22 Total deposits
45,010
54,797
42,235
37,247
44,006
50,543
52,284
41,244
23
24
25
26
35,210
9,184
327
287
34,038
20,148
301
310
36,620
5,053
242
319
33,585
2,953
385
324
38,590
4,920
189
307
34,951
14,809
386
397
30,232
21,541
257
255
35,794
4,886
191
373
5,243
2,450
5,859
2,448
5,042
2,388
5,470
2,517
8,051
2,515
5,491
2,489
1,887
2,462
1,748
2,514
392,912
403,727
392,404
388,626
398,994
402,449
396,208
389,031
3,403
3,401
342
3,410
3,401
222
3,426
3,401
333
3,429
3,401
350
3,437
3,401
353
3,401
3,401
0
3,404
3,401
492
3,437
3,401
985
33 Total liabilities a n d capital accounts
400,059
410,760
399,564
395,806
406,184
409,251
403,505
396,855
MEMO
34 M a r k e t a b l e U . S . T r e a s u r y securities held in c u s t o d y f o r
foreign a n d international a c c o u n t s
356,660
360,213
363,257
359,498
360,084
350,906
358,003
364,104
21 F e d e r a l R e s e r v e n o t e s
D e p o s i t o r y institutions
U.S. Treasury—General account
Foreign—Official a c c o u n t s
Other
27 D e f e r r e d credit i t e m s
28 O t h e r liabilities a n d a c c r u e d dividends
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 S u r p l u s
32 O t h e r capital a c c o u n t s
Federal Reserve note statement
35 F e d e r a l R e s e r v e n o t e s o u t s t a n d i n g (issued to B a n k s )
36
LESS: H e l d b y F e d e r a l R e s e r v e B a n k s
37
Federal Reserve notes, net
38
39
40
41
Collateral held against notes, net:
G o l d certificate a c c o u n t
Special d r a w i n g rights certificate a c c o u n t
O t h e r eligible a s s e t s
U . S . T r e a s u r y and a g e n c y securities
42 Total collateral
410,524
70,316
340,209
410,175
69,552
340,623
410,825
68,086
342,739
410,888
67,4%
343,392
411,490
67,069
344,422
409,265
65,339
343,925
410,368
70,793
339,575
411,834
68,308
343,526
11,053
8,018
0
321,138
11,053
8,018
0
321,552
11,053
8,018
0
323,668
11,053
8,018
0
324,321
11,053
8,018
0
325,351
11,053
8,018
0
324,854
11,053
8,018
0
320,504
11,053
8,018
0
324,455
340,209
340,623
342,739
343,392
344,422
343,925
339,575
343,526
1. S o m e of the d a t a in this table also a p p e a r in the B o a r d ' s H . 4 . 1 (503) weekly
statistical r e l e a s e . F o r o r d e r i n g a d d r e s s , see inside f r o n t cover.
2. I n c l u d e s securities l o a n e d — f u l l y g u a r a n t e e d by U . S . T r e a s u r y securities
pledged with F e d e r a l R e s e r v e B a n k s — a n d excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at m a r k e t e x c h a n g e r a t e s .
4. Includes special i n v e s t m e n t a c c o u n t at the F e d e r a l R e s e r v e B a n k of C h i c a g o
in T r e a s u r y bills maturing within ninety d a y s .
5. Includes exchange-translation a c c o u n t reflecting the m o n t h l y r e v a l u a t i o n at
m a r k e t e x c h a n g e r a t e s of foreign e x c h a n g e c o m m i t m e n t s .
A12
DomesticNonfinancialStatistics • May 1994
1.19 FEDERAL RESERVE BANKS
Maturity Distribution of Loan and Security Holding
Millions of dollars
End of month
Wednesday
1994
Type of holding and maturity
1994
1993
Jan. 26
Feb. 2
Feb. 9
Feb. 16
Feb. 23
Dec. 31
Jan. 31
F e b . 28
1 Total loans
28
44
36
46
25
94
122
48
2 Within fifteen days 1
3 Sixteen days to ninety days
4 Ninety-one days to one year
28
0
0
36
8
0
31
5
0
46
0
0
24
1
0
93
1
0
121
1
0
45
3
0
5 Total acceptances
0
0
0
0
0
0
0
0
6 Within fifteen days'
7 Sixteen days to ninety days
8 Ninety-one days to one year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
334,706
332,113
332,508
333,984
338,547
332,015
331,995
333,404
19,139
74,237
105,617
80,091
22,384
31,739
18,041
73,792
104,666
79,992
23,884
31,739
18,200
77,478
101,216
79,992
23,884
31,739
14,160
81,054
104,851
78,037
23,818
32,064
21,749
78,246
104,634
78,037
23,818
32,064
9,262
81,344
105,184
79,826
24,659
31,739
12,028
79,687
104,666
79,992
23,884
31,739
9,168
84,699
106,001
77,654
23,818
32,064
16 Total federal agency obligations
4,437
4,439
4,437
4,834
4,612
4,638
4,437
4,335
Within fifteen days 1
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
105
754
969
2,016
567
25
2
859
969
2,016
567
25
0
884
944
2,016
567
25
817
520
944
1,976
552
25
595
520
944
1,976
552
25
180
565
1,078
2,105
569
142
105
754
969
2,016
567
25
318
565
954
1,921
552
25
9 Total U.S. Treasury securities
10
11
12
13
14
15
17
18
19
20
21
22
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
1. Holdings under repurchase agreements are classified as maturing within
fifteen days in accordance with maximum maturity of the agreements.
Monetary and Credit Aggregates
A13
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1994
1993
Item
1990
Dec.
1991
Dec.
1992
Dec.
1993
Dec.r
July
Total r e s e r v e s 3
Nonborrowed reserves
.
N o n b o r r o w e d r e s e r v e s plus e x t e n d e d credit
Required reserves
Monetary base
Sept.
Oct.
Nov.
Dec/
Jan.
Feb.
59.82
59.53
59.53
58.73
381.44 r
60.46
60.37
60.37
59.36
384.16 r
60.54
60.45
60.45
59.47
385.90
60.55
60.48
60.48
59.11
389.56
60.74
60.67
60.67
59.60
393.89
Seasonally a d j u s t e d
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS2
1
2
3
4
5
Aug.
41.77
41.44
41.46
40.10
293.16 r
45.53
45.34
45.34
44.56
317.12 r
54.35
54.23
54.23
53.20
350.63 r
60.54
60.45
60.45
59.47
385.90
57.57
57.32
57.32
56.48
371.32 r
58.03
57.68
57.68
57.08
374.37 r
58.84
58.41
58.41
57.75
378.08 r
N o t seasonally a d j u s t e d
6
7
8
9
10
Total r e s e r v e s
Nonborrowed reserves
..
N o n b o r r o w e d r e s e r v e s plus e x t e n d e d credit .
Required reserves8
Monetary base
43.07
42.74
42.77
41.40
296.68
46.98
46.78
46.78
46.00
321.07
56.06
55.93
55.93
54.90
354.55
62.41
62.33
62.33
61.35
390.62
57.42
57.17
57.17
56.33
372.02
57.38
57.03
57.03
56.43
374.10
58.69
58.26
58.26
57.60
377.75
59.53
59.24
59.24
58.44
380.83 r
60.73
60.64
60.64
59.62
384.32 r
62.41
62.33
62.33
61.35
390.62
62.03
61.96
61.96
60.59
391.00
59.49
59.42
59.42
58.35
390.82
59.12
58.80
58.82
57.46
313.70
1.66
.33
55.53
55.34
55.34
54.55
333.61
.98
.19
56.54
56.42
56.42
55.39
360.90
1.16
.12
62.86
62.78
62.78
61.80
397.62
1.06
57.75
57.51
57.51
56.66
378.48
1.09
.24
57.77
57.42
57.42
56.82
380.53
.95
.35
59.14
58.71
58.71
58.05
384.25
1.09
.43
60.04
59.75
59.75
58.95
387.51
1.09
.29
61.30
61.21
61.21
60.20
391.14 r
1.10
.09
62.86
62.78
62.78
61.80
397.62
62.07
62.00
62.00
60.62
397.89
1.45
.07
59.59
59.52
59.52
58.45
397.92
1.14
.07
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS1
11
12
13
14
15
16
17
Total r e s e r v e s "
Nonborrowed reserves
..
N o n b o r r o w e d r e s e r v e s plus e x t e n d e d credit .
Required r e s e r v e s
Monetary base ,
Excess reserves13
B o r r o w i n g s f r o m the F e d e r a l R e s e r v e
1. L a t e s t monthly and biweekly figures are available f r o m the B o a r d ' s H . 3 (502)
weekly statistical r e l e a s e . Historical d a t a a n d estimates of the impact on required
r e s e r v e s of c h a n g e s in r e s e r v e r e q u i r e m e n t s are available f r o m the M o n e t a r y a n d
R e s e r v e s P r o j e c t i o n s Section, Division of M o n e t a r y Affairs, B o a r d of G o v e r n o r s
of t h e F e d e r a l R e s e r v e S y s t e m , W a s h i n g t o n , D C 20551.
2. Figures reflect a d j u s t m e n t s f o r discontinuities, o r " b r e a k s , " associated with
regulatory c h a n g e s in r e s e r v e r e q u i r e m e n t s . (See also table 1.10)
3. Seasonally a d j u s t e d , b r e a k - a d j u s t e d total r e s e r v e s equal seasonally
a d j u s t e d , b r e a k - a d j u s t e d required r e s e r v e s (line 4) plus e x c e s s r e s e r v e s (line 16).
4. Seasonally a d j u s t e d , b r e a k - a d j u s t e d n o n b o r r o w e d r e s e r v e s equal seasonally
a d j u s t e d , b r e a k - a d j u s t e d total r e s e r v e s (line 1) less total b o r r o w i n g s of d e p o s i t o r y
institutions f r o m the F e d e r a l R e s e r v e (line 17).
5. E x t e n d e d credit consists of b o r r o w i n g at the discount w i n d o w u n d e r
the t e r m s a n d conditions established f o r the e x t e n d e d credit p r o g r a m t o help
depository institutions deal with sustained liquidity p r e s s u r e s . B e c a u s e t h e r e is
not the s a m e n e e d t o r e p a y such b o r r o w i n g p r o m p t l y as with traditional shortterm a d j u s t m e n t credit, t h e m o n e y m a r k e t impact of e x t e n d e d credit is similar t o
that of n o n b o r r o w e d r e s e r v e s .
6. T h e seasonally a d j u s t e d , b r e a k - a d j u s t e d m o n e t a r y b a s e consists of (1)
seasonally a d j u s t e d , b r e a k - a d j u s t e d total r e s e r v e s (line 1), plus (2) the seasonally
a d j u s t e d c u r r e n c y c o m p o n e n t of the m o n e y s t o c k , plus (3) (for all quarterly
r e p o r t e r s on the " R e p o r t of T r a n s a c t i o n A c c o u n t s , O t h e r D e p o s i t s and Vault
C a s h " and f o r all t h o s e weekly r e p o r t e r s w h o s e vault cash e x c e e d s their required
r e s e r v e s ) the seasonally a d j u s t e d , b r e a k - a d j u s t e d difference b e t w e e n current vault
cash and the a m o u n t applied t o satisfy c u r r e n t r e s e r v e r e q u i r e m e n t s .
7. B r e a k - a d j u s t e d total r e s e r v e s equal b r e a k - a d j u s t e d required r e s e r v e s (line 9)
plus e x c e s s r e s e r v e s (line 16).
8. T o a d j u s t r e q u i r e d r e s e r v e s f o r discontinuities that are d u e t o regulatory
c h a n g e s in r e s e r v e r e q u i r e m e n t s , a multiplicative p r o c e d u r e is u s e d t o estimate
1.06
w h a t required r e s e r v e s w o u l d h a v e b e e n in p a s t p e r i o d s h a d c u r r e n t r e s e r v e
requirements b e e n in effect. B r e a k - a d j u s t e d r e q u i r e d r e s e r v e s include r e q u i r e d
reserves against t r a n s a c t i o n s d e p o s i t s and n o n p e r s o n a l time a n d savings d e p o s i t s
(but not reservable n o n d e p o s i t liabilities).
9. T h e b r e a k - a d j u s t e d m o n e t a r y b a s e equals (1) b r e a k - a d j u s t e d total r e s e r v e s
(line 6), plus (2) the ( u n a d j u s t e d ) c u r r e n c y c o m p o n e n t of the m o n e y s t o c k , p l u s (3)
(for all quarterly r e p o r t e r s on the " R e p o r t of T r a n s a c t i o n A c c o u n t s , O t h e r
Deposits and Vault C a s h " a n d f o r all t h o s e w e e k l y r e p o r t e r s w h o s e vault c a s h
e x c e e d s their required r e s e r v e s ) the b r e a k - a d j u s t e d d i f f e r e n c e b e t w e e n c u r r e n t
vault cash and the a m o u n t applied t o satisfy c u r r e n t r e s e r v e r e q u i r e m e n t s .
10. Reflects actual r e s e r v e r e q u i r e m e n t s , including t h o s e o n n o n d e p o s i t liabilities, with n o a d j u s t m e n t s t o eliminate the effects of discontinuities a s s o c i a t e d
with changes in r e s e r v e r e q u i r e m e n t s .
11. R e s e r v e b a l a n c e s with F e d e r a l R e s e r v e B a n k s p l u s vault c a s h u s e d t o
satisfy r e s e r v e r e q u i r e m e n t s .
12. T h e m o n e t a r y b a s e , not b r e a k - a d j u s t e d a n d n o t seasonally a d j u s t e d ,
consists of (1) total r e s e r v e s (line 11), p l u s (2) r e q u i r e d clearing b a l a n c e s a n d
a d j u s t m e n t s t o c o m p e n s a t e f o r float at F e d e r a l R e s e r v e B a n k s , p l u s (3) the
currency c o m p o n e n t of the m o n e y s t o c k , plus (4) (for all q u a r t e r l y r e p o r t e r s o n
the " R e p o r t of T r a n s a c t i o n A c c o u n t s , O t h e r D e p o s i t s a n d Vault C a s h " a n d f o r all
those weekly r e p o r t e r s w h o s e vault c a s h e x c e e d s their r e q u i r e d r e s e r v e s ) t h e
difference b e t w e e n c u r r e n t vault c a s h a n d the a m o u n t applied t o satisfy c u r r e n t
r e s e r v e r e q u i r e m e n t s . Since the introduction of c h a n g e s in r e s e r v e r e q u i r e m e n t s
(CRR), c u r r e n c y and vault c a s h figures h a v e b e e n m e a s u r e d o v e r the c o m p u t a t i o n
periods ending o n M o n d a y s .
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
A14
Domestic Financial Statistics • May 1994
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1
Billions of dollars, averages of daily figures
1993r
1990
Dec. r
1991
Dec. r
1992
Dec/
1994
1993
Dec. r
Nov.
Dec.
Jan.
Feb.
Seasonally adjusted
1
2
3
4
5
Measures2
Ml
M2
M3
L
Debt
6
7
8
9
Ml
components
Currency
Travelers checks
Demand deposits 5
Other checkable deposits
826.4
3,353.0
4,125.7
4,974.8
10,670.1
897.7
3,455.3
4,180.4
4,992.9
11,147.3
1,024.8
3,509.0
4,183.0
5,057.1
11,721.5
1,128.5
3,564.2
4,226.7
5,124.7
12,321.5
1,122.4
3,557.0
4,214.2
5,105.9
12,244.5
1,128.5
3,564.2
4,226.7
5,124.7
12,321.5
1,133.6
3,571.0
4,230.9
5,146.0
12,373.0
1,138.6
3,567.8
4,203.3
n.a.
n.a.
246.7
7.8
277.9
294.0
267.1
7.7
290.0
332.8
292.2
8.1
339.6
384.9
321.4
7.9
384.9
414.3
319.5
7.9
383.2
411.8
321.4
7.9
384.9
414.3
325.3
7.9
388.5
412.0
329.2
7.9
390.5
411.1
2,526.6
772.7
2,557.6
725.2
2,484.3
674.0
2,435.7
662.6
2,434.5
657.3
2,435.7
662.6
2,437.4
659.9
2,429.1
635.5
Commercial
banks
12 Savings deposits, including MMDAs
13 Small time deposits'
14 Large time deposits '
582.1
611.3
368.6
665.5
602.9
342.4
754.6
508.7
292.8
785.3
468.6
277.5
782.4
469.5
276.3
785.3
468.6
277.5
790.1
465.5
279.6
791.1
464.0
274.0
Thrift institutions
15 Savings deposits, including MMDAs
16 Small time deposits
17 Large time deposits
338.3
563.2
120.9
375.6
464.5
83.4
429.0
361.8
67.5
430.2
314.2
61.7
429.5
318.5
63.5
430.2
314.2
61.7
430.2
312.1
61.9
429.9
309.0
61.5
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
355.5
135.0
370.4
181.0
352.0
201.5
349.9
197.0
347.8
194.8
349.9
197.0
348.9
192.7
345.1
176.9
2,490.7
8,179.4
2,763.8
8,383.5
3,068.4
8,653.1
3,327.9
8,993.6
3,291.4
8,953.1
3,327.9
8,993.6
3,335.6
9,037.4
Nontransaction
10 In M2
11 In M3 8
components
Debt
components
20 Federal debt
21 Nonfederal debt
n.a.
n.a.
Not seasonally adjusted
22
23
24
25
26
Measures2
Ml
M2
M3
L
Debt
27
28
29
30
Ml
components
Currency 1
,
Travelers checks 4
Demand deposits
Other checkable deposits 6
843.8
3,366.0
4,135.5
4,997.2
10,667.7
916.7
3,470.4
4,191.9
5,018.0
11,144.6
1,046.7
3,527.6
4,198.2
5,087.6
11,723.3
1,153.9
3,586.8
4,246.1
5,159.5
12,321.4
1,129.6
3,565.7
4,225.8
5,127.0
12,231.4
1,153.9
3,586.8
4,246.1
5,159.5
12,321.4
1,142.9
3,577.7
4,231.8
5,160.3
12,358.6
1,124.7
3,555.7
4,194.1
n.a.
n.a.
249.5
7.4
289.9
297.0
269.9
7.4
303.1
336.3
295.0
7.8
355.1
388.9
324.9
7.6
402.7
418.6
319.8
7.7
391.2
410.9
324.9
7.6
402.7
418.6
324.0
7.7
393.3
417.9
327.3
7.7
380.8
409.0
2,522.3
769.5
2,553.7
721.6
2,480.9
670.5
2,432.9
659.3
2,436.0
660.2
2,432.9
659.3
2,434.8
654.1
2,430.9
638.4
Commercial
banks
33 Savings deposits, including MMDAs
34 Small time deposits
35 Large time deposits 1 0 , "
580.8
610.5
367.7
664.0
601.9
341.3
752.9
507.8
291.7
783.8
467.6
276.4
784.0
468.8
276.6
783.8
467.6
276.4
786.1
465.6
276.6
787.7
463.9
272.3
Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits
38 Large time deposits 1
337.6
562.4
120.6
374.8
463.8
83.1
428.1
361.2
67.2
429.3
313.6
61.4
430.4
318.0
63.5
429.3
313.6
61.4
428.0
312.1
61.2
428.0
308.8
61.2
Money market mutual funds
39 General purpose and broker-dealer
40 Institution-only
353.8
134.7
368.5
180.4
350.2
200.4
348.3
195.8
345.8
194.0
348.3
195.8
349.3
196.2
350.8
186.1
Repurchase
41 Overnight
42 Term
77.3
158.3
80.6
130.1
80.7
126.7
90.3
141.4
89.1
142.8
90.3
141.4
93.6
135.4
91.7
134.4
2,491.3
8,176.3
2,765.0
8,379.7
3,069.8
8,653.5
3,329.5
8,992.0
3,287.0
8,944.4
3,329.5
8,992.0
3,333.0
9,025.6
Nontransaction
31 In M2
32 In M3 8
components
agreements
and
Eurodollars
Debt
components
43 Federal debt
44 Nonfederal debt
Footnotes appear on following page.
n.a.
n.a.
Monetary and Credit Aggregates
A15
N O T E S T O T A B L E 1.21
1. Latest monthly and weekly figures are available from the B o a r d ' s H . 6 (508)
weekly statistical release. Historical data are available f r o m 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:
M l : (1) currency outside the U . S . Treasury, Federal Reserve Banks, and the
vaults of depository institutions, (2) travelers checks of nonbank issuers, (3)
demand deposits at all commercial banks other than those owed to depository
institutions, the U . S . government, and foreign banks and official institutions, less
cash items in the process of collection and Federal Reserve float, and (4), other
checkable deposits (OCDs), consisting of negotiable order of withdrawal (NOW)
and automatic transfer service (ATS) accounts at depository institutions, credit
union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted M l is computed by summing currency, travelers checks, demand
deposits, and O C D s , each seasonally adjusted separately.
M2: M l plus (1) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U . S . residents by foreign branches of U . S . banks worldwide, (2) savings (including MMDAs) and small time deposits (time deposits—including retail RPs—in
amounts of less than $100,000), and (3) balances in both taxable and tax-exempt
general-purpose and broker-dealer money market funds. Excludes individual
retirement accounts (IRAs) and Keogh balances at depository institutions, and
money market f u n d s . Also excludes all balances held by U . S . commercial banks,
money market f u n d s (general purpose and broker-dealer), foreign governments
and commercial banks, and the U . S . government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this
result t o seasonally adjusted M l .
M3: M2 plus (1) large time deposits and term R P liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) term Eurodollars held
by U . S . residents at foreign branches of U . S . banks worldwide and at all banking
offices in the United Kingdom and Canada, and (3) balances in both taxable and
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U . S . government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U . S . savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate b o n d s , mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived f r o m the Federal
Reserve Board's flow of f u n d s accounts. Debt data are based on monthly
averages. This sum is seasonally adjusted as a whole.
3. Currency outside the U . S . Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U . S . dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those owed to depository institutions, the U . S . government, and foreign
banks and official institutions, less cash items in the process of collection and
Federal Reserve float.
6. Consists of N O W and A T S account balances at all depository institutions,
credit union share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) overnight RPs and overnight Eurodollars, (2) m o n e y market fund
balances (general purpose and broker-dealer), (3) savings deposits (including
MMDAs), and (4) small time deposits.
8. Sum of (1) large time deposits, (2) term R P s , (3) term Eurodollars of U . S .
residents, and (4) money market fund balances (institution-only), less (5) a
consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market f u n d s .
9. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRAs and Keogh accounts at commercial b a n k s and thrift
institutions are subtracted f r o m small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market
funds, depository institutions, U.S. government, and foreign banks and official
institutions.
A16
Domestic Financial Statistics • May 1994
1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING
Commercial and BIF-insured saving banks1
1994
1993
1991
Dec.
1992
Dec.
June
July
Aug.
Sept.
Oct.
Nov.
Dec. r
Jan.
Feb.
Interest rates (annual effective yields)
INSURED COMMERCIAL BANKS
3.76
4.30
2.33
2.88
2.09
2.61
2.06
2.59
2.01
2.55
1.96
2.51
1.92
2.49
1.89
2.48
1.86
2.46
1.84
2.46
1.82
2.43
4.18
4.41
4.59
4.95
5.52
2.90
3.16
3.37
3.88
4.77
2.68
2.97
3.19
3.65
4.44
2.67
2.97
3.18
3.64
4.43
2.66
2.%
3.17
3.63
4.40
2.63
2.92
3.13
3.55
4.28
2.63
2.91
3.11
3.54
4.27
2.64
2.92
3.13
3.54
4.28
2.65
2.91
3.13
3.55
4.29
2.65
2.90
3.14
3.56
4.31
2.68
2.93
3.18
3.61
4.35
8 Negotiable order of withdrawal accounts . . .
9 Savings deposits 2
4.44
4.97
2.45
3.20
2.13
2.88
2.09
2.83
2.07
2.80
2.01
2.73
1.98
2.68
1.95
2.65
1.87
2.63
1.89
2.62
1.88
2.64
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2Vi years
4.68
4.92
4.99
5.23
5.98
3.13
3.44
3.61
4.02
5.00
2.86
3.17
3.44
3.79
4.75
2.80
3.15
3.40
3.72
4.73
2.79
3.12
3.37
3.73
4.73
2.76
3.05
3.33
3.69
4.62
2.75
3.05
3.34
3.68
4.57
2.73
3.03
3.32
3.69
4.60
2.70
3.02
3.31
3.66
4.62
2.69
3.03
3.33
3.72
4.61
2.69
3.04
3.34
3.76
4.66
1 Negotiable order of withdrawal accounts . . .
2 Savings deposits 2
3
4
5
6
7
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2 Vi years
More than 2Vi years
t
BIF-INSURED SAVINGS BANKS3
10
11
12
13
14
Amounts outstanding (millions of dollars)
INSURED COMMERCIAL BANKS
15 Negotiable order of withdrawal accounts . . .
16 Savings deposits 2
17
Personal
18
Nonpersonal
244,637
652,058
508,191
143,867
286,541
738,253
578,757
159,4%
287,555
754,790
592,545
162,245
284,4%
757,716
593,448
164,268
287,675
761,919
593,318
168,601
286,056
758,835
592,028
166,807
289,813
765,372
595,715
169,657
297,329
770,609
598,200
172,408
305,223
766,413
597,838
168,575
293,806
771,559
606,615
164,944
295,573
776,218
611,767
164,451
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2Vi years
47,094
158,605
209,672
171,721
158,078
38,474
127,831
163,098
152,977
169,708
31,743
114,846
156,549
144,804
179,297
30,803
112,497
156,431
143,605
180,983
30,017
109,603
155,074
141,377
181,762
30,384
108,574
152,501
139,406
184,414
30,022
108,504
149,758
139,042
183,790
29,730
109,228
147,334
139,315
180,972
29,455
110,069
146,565
141,223
181,528
29,312
109,110
144,037
141,204
182,193
29,572
109,274
143,507
140,918
181,221
147,266
147,350
146,523
146,1%
145,955
145,636
144,776
145,002
143,985
143,875
143,409
9,624
71,215
68,638
2,577
10,871
81,786
78,695
3,091
10,313
77,495
74,569
2,926
10,457
78,390
75,049
3,341
10,468
78,387
75,153
3,234
10,471
78,182
74,978
3,204
10,548
77,995
74,737
3,258
10,852
77,948
74,664
3,284
11,151
80,115
77,035
3,079
10,7%
78,660
75,445
3,215
10,913
78,247
74,972
3,276
4,146
21,686
29,715
25,379
18,665
3,867
17,345
21,780
18,442
18,845
3,022
13,808
18,427
15,972
18,989
2,871
13,773
18,454
16,250
19,229
2,928
13,525
18,143
16,200
19,331
2,886
13,261
17,798
16,161
19,610
2,839
13,131
17,441
16,124
19,657
2,778
12,926
17,178
15,995
19,645
2,793
12,946
17,426
16,546
20,464
2,737
13,094
17,418
16,281
20,630
2,739
13,202
17,491
16,390
20,991
23,007
21,713
19,855
19,920
19,802
19,766
19,601
19,382
19,356
19,395
19,522
19
20
21
22
23
24 IRA/Keogh Plan deposits
BIF-INSURED SAVINGS BANKS3
25 Negotiable order of withdrawal accounts
26 Savings deposits
27
Personal
28
Nonpersonal
29
30
31
32
33
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2Vi years
34 IRA/Keogh Plan accounts
1. BIF, Bank Insurance Fund. Data in this table also appear in the Board's H.6
(508) Special Supplementary Table monthly statistical release. For ordering
address, see inside front cover. Estimates are based on data collected by the
Federal Reserve System from a stratified random sample of about 460 commercial
banks and 80 savings banks on the last Wednesday of each period. Data are not
seasonally adjusted and include IRA/Keogh deposits and foriegn currency denominated deposits. Data exclude retail repurchase agreements and deposits held in
U.S. branches and agencies of foreign banks.
2. Includes personal and nonpersonal money market deposits.
3. BIF-insured savings banks include both mutual and federal savings banks.
Monetary and Credit Aggregates
1.23
A17
B A N K DEBITS A N D DEPOSIT TURNOVER1
Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates
1993
July r
DEBITS
Demand
deposits3
1 All insured banks
2
Major New York City banks
3
Other banks
4 Other checkable deposits 4
5 Savings deposits (including MMDAs)
Aug/
Sept/
Oct/
Nov.
Dec.
Seasonally adjusted
315,812.2 r
165,573.5r
150,238.7r
334,165.1
171,418.8
162,746.4
330,668.5
166,663.8
164,004.7
333,750.6
169,093.8
164,656.8
360,304.3
185,675.0
174,629.3
327,497.9
166,671.1
160,826.8
360,492.1
187,185.5
173,306.7
368,461.0
190,076.8
178,384.2
3,645.5
3,266.1
3,788.1
3,331.5 r
3,480.3
3,536.0
3,365.4
3,634.3
3,441.4
3,500.3
3,490.8
3,734.0
3,302.4
3,398.3
3,590.9
3,782.3
3,679.1
3,855.9
803.5
4,270.7 r
447.9
832.4
4,797.6 r
435.9
784.3
4,201.0
422.4
777.7
4,293.9
424.5
769.0
4,040.3
419.9
824.3
4,254.4
443.8
729.8
3,907.6
396.0
796.3
4,249.4
424.1
833.9
4,672.6
444.6
16.2
5.3
14.4
4.7
11.9
4.6
11.4
4.7
11.6
4.5
11.7
4.8
11.0
4.4
11.9
4.9
12.1
5.0
277,763.7 r
137,352.9r
140,410.8r
DEPOSIT TURNOVER
Demand
deposits3
6 All insured banks
7
Major New York City banks
8
Other banks
9 Other checkable deposits 4
10 Savings deposits (including MMDAs) 5
DEBITS
Demand
deposits3
11 All insured banks
12
Major New York City banks
13
Other banks
14 Other checkable deposits 4
15 Savings deposits (including MMDAs)
Not seasonally adjusted
277,715.4
137,307.2
140,408.3
315,808.2
165,595.0
150,213.3
333,956.4
171,283.5
162,672.9
332,888.4
168,018.4
164,870.1
342,539.4
174,674.7
167,864.7
347,849.8
179,869.7
167,980.2
335,861.9
172,675.6
163,186.3
344,003.5
180,990.2
163,013.3
380,135.5
194,541.0
185,594.5
3,645.6
3,267.7
3,788.1
3,329.0
3,478.5
3,532.8
3,290.8
3,643.7
3,369.1
3,529.6
3,493.3
3,536.4
3,293.5
3,328.6
3,335.8
3,497.3
3,848.1
4,055.7
803.4
4,274.3
447.9
832.5
4,803.5
436.0
784.0
4,197.2
422.4
778.0
4,280.6
424.3
802.5
4,307.8
434.6
798.5
4,196.6
427.7
748.5
4,059.2
401.8
753.2
4,129.6
394.8
819.2
4,387.7
442.2
16.2
5.3
14.4
4.7
11.9
4.6
11.3
4.8
11.5
4.6
11.8
4.6
11.1
4.3
11.1
4.5
12.5
5.2
DEPOSIT TURNOVER
Demand
deposits3
16 All insured banks
17
Major New York City banks
18
Other banks
19 Other checkable deposits 4
20 Savings deposits (including MMDAs)
1. Historical tables containing revised data for earlier periods can be obtained
from the Banking and Money Market Statistics Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, DC
20551.
Data in this table also appear in the Board's G.6 (406) monthly statistical
release. For ordering address, see inside front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOWs) and
accounts authorized for automatic transfer to demand deposits (ATSs).
5. Money market deposit accounts.
A18
Domestic Financial Statistics • May 1994
1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS 1
Wednesday figures
Billions of dollars
1993r
1993
Feb.
Aug.
Sept.
Oct.
1994r
Nov.
ALL COMMERCIAL
BANKING INSTITUTIONS2
Dec.
Jan.
1994"
Feb.
Feb. 2
Feb. 9
Feb. 16
F e b . 23
Seasonally adjusted
Assets
1 Bank credit
Securities in bank credit
2
U.S. government securities . . .
3
Other securities
4
Loans and leases in bank credit 2 .
Commercial and industrial
6
Real estate
7
8
Revolving home equity
Other
9
Consumer
10
Security 3
11
Other
12
4
N Interbank loans
14 Cash assets 5
6
15 Other assets
2,970.6
857.1
679.5
177.7
2,113.5
595.3
901.6
73.9
827.8
363.6
62.6
190.3
152.3
212.1
215.0
3,(ray
902.6r
717.9
184.7"
2,163.3
589.l r
920.2r
74.7
845.6r
378.2r
80.2
195.6r
155.0
219.9
218 . r
3,073.6
904.8
720.0
184.8
2,168.9
586.9
923.4
74.4
849.0
380.4
82.1
196.1
152.1
225.5
220.9
3,075.2
901.2
717.9
183.2
2,174.1
586.5
925.7
73.8
851.9
384.4
81.3
196.2
151.8
220.2
218.5
3,090.1
905.7
722.3
183.4
2,184.4
585.3
929.7
73.4
856.3
387.5
87.1
194.8
154.9
218.4
217.7
3,102.8
915.1
730.2
184.9
2,187.7
584.8
934.2
73.1
861.1
389.7
86.1
192.8
154.3
218.6
215.6
3,122.7
928.8
735.1
193.7
2,193.9
589.9
936.2
72.8
863.5
392.3
79.3
196.0
155.3
219.0
221.3
3,136.5
934.0
734.8
199.1
2,202.5
592.0
935.1
72.9
862.2
395.7
80.7
199.1
156.0
224.7
224.4
3,128.6"
929.7"
728.8
200.9"
2,198.9"
591.3"
937.0"
72.9
864.1"
394.3"
81.5
194.8"
158.5
221.0
224.0"
3,138.9"
932.1"
732.1
199.9"
2,206.8
593.0"
936.5"
73.0
863.6"
395.7"
81.5
200.1"
154.6
233.4
226.7"
3,138.5"
932.8"
733.5
199.3"
2,205.7
593.0"
935.4"
72.8
862.6"
395.7"
83.3
198.2"
156.2
206.1
221.3"
3,125.4"
929.7"
734.0"
195.8"
2,195.7
591.2"
932.7
72.8
859.9"
394.9"
76.4
200.4"
158.1
235.3
226.4"
16 Total assets 7
3,489.0
3,599.4 r '
3,612.3
3,606.4
3,622.0
3,632.5
3,659.9
3,683.6
3,674.1"
3,695if
3,664.2"
3,687.4"
2,499.0
748.9
1,750.0
371.1
1,378.9
492.8
151.8
340.9
2,520.0
799.1
1,720.9
346.8
1,374.1
516.7r
156.4
360.3r
2,524.2
808.7
1,715.5
344.2
1,371.3
530.1
150.9
379.2
2,524.2
810.0
1,714.2
346.3
1,367.9
515.5
154.1
361.4
2,533.3
815.9
1,717.4
347.6
1,369.8
514.9
155.6
359.2
2,537.8
818.0
1,719.7
350.1
1,369.6
546.1
155.3
390.8
2,537.4
814.7
1,722.6
348.5
1,374.1
572.6
153.4
419.3
2,531.3
816.9
1,714.4
340.2
1,374.2
549.4
153.5
395.9
2,527.3
812.7
1,714.6
341.4
1,373.2
591.9
152.4
439.5
2,540.4
823.5
1,716.9
342.5
1,374.4
564.0
153.1
411.0
2,522.2
803.6
1,718.7
342.0
1,376.7
532.2
154.9
377.3
2,534.3
822.8
1,711.6
339.0
1,372.5
543.2
154.5
388.7
73.5
147.0
118.3
149.0
126.1
146.0
123.8
144.4
121.6
143.6
119.1
142.0
115.9
154.2
135.9
161.1
129.0
160.3"
136.4
161.2"
136.0
162.8"
133.3
159.3"
Liabilities
17 Deposits
Transaction
18
Nontransaction
19
Large time
20
Other
21
22 Borrowings
From banks in the U.S
23
24
From nonbanks in the U . S
25 Net due to related foreign
offices
26 Other liabilities 8
27 Total liabilities
28 Residual (assets less liabilities) 9 ....
3,212.2
3,304.0"
3,326.4
3,307.9
3,313.3
3,345.0
3,380.1
3,377.7
3,408.4"
3,401.9"
3353.2"
3,370.0"
276.8
295.4r
285.9
298.5
308.7
287.6
279.8
306.0
265.7"
293.8"
311.0"
317.3"
Not seasonally adjusted
Assets
29 Bank credit
Securities in bank credit
30
U.S. government securities . . .
31
Other securities
32
Loans and leases in bank credit 2 .
33
Commercial and industrial . . . .
34
Real estate
35
Revolving home equity
36
Other
37
Consumer
38
Security 3
39
Other
40
41 Interbank loans 3
42 Cash assets 2
43 Other assets 6
2,967.8
856.7
678.3
178.4
2,111.1
594.4
898.0
73.6
824.3
364.6
66.0
188.1
153.7
207.7
214.6
3,058. r
901,2r
717.0
184.2r
2,156.9
585.8r
920.4r
74.7
845.8r
377.6r
77.6
195.5r
152.1
214.2
217.0"
3,074.5
906.4
721.7
184.8
2,168.1
583.4
923.9
74.7
849.2
381.5
81.5
197.7
150.2
227.4
222.1
3,077.9
903.3
719.5
183.8
2,174.5
584.5
928.1
74.4
853.6
384.4
80.1
197.5
150.8
219.5
221.0
3,101.0
911.1
726.4
184.7
2,189.9
586.1
932.1
73.8
858.3
387.7
87.1
196.8
156.4
225.9
220.6
3,118.6
914.6
729.7
184.9
2,204.0
586.8
937.4
73.3
864.1
394.1
88.0
197.7
162.8
231.8
219.8
3,123.8
924.8
731.2
193.6
2,199.0
589.2
934.7
72.9
861.8
396.8
81.6
196.7
159.4
223.9
223.7
3,135.0
933.8
733.5
200.3
2,201.2
591.2
931.7
72.6
859.0
396.9
85.2
196.1
156.6
219.3
223.9
3,135.7"
930.2"
728.7
201.4"
2,205.5
590.7"
934.1"
72.7
861.2"
397.1"
87.1
196.5"
162.5
219.9
228.0"
3,138.2"
931.9"
731.1
200.8"
2,206.4
590.7"
935.0"
72.8
862.3"
397.8"
86.1
196.7"
155.2
207.9
225.6"
3,139.6"
934.8"
733.6
201.2"
2,204.8
592.2"
932.3"
72.7
859.6"
397.3"
86.4
196.6."
159.2
214.9
221.2"
3,114.7"
927.0"
731.1"
195.9"
2,187.7
589.3"
927.7"
72.5
855.1"
396.0"
80.9
193.8"
154.4
229.5
223.6"
44 Total assets 7
3,482.3
3,581.6r
3,614.3
3,610.1
3,644.4
3,673.7
3,672.7
3,676.4
3,688.0"
3,668.6"
3,676.5"
3,663.9"
2,490.3
741.3
1,749.0
371.5
1,377.5
497.9
154.4
343.4
2,509.0
784.2
1,724.8
348.5
1,376.3
519.8r
152.6
367.2r
2,522.8
806.9
1,715.9
343.7
1,372.1
530.0
150.7
379.3
2,516.1
804.1
1,712.0
342.4
1,369.6
526.4
151.4
375.1
2,544.0
827.5
1,716.5
344.5
1,372.1
528.4
156.9
371.5
2,566.5
852.5
1,714.0
346.3
1,367.8
535.3
163.2
372.1
2,540.7
824.3
1,716.3
345.0
1,371.4
548.2
159.7
388.5
2,521.1
807.8
1,713.3
340.6
1,372.7
548.6
156.7
391.9
2,525.7
815.9
1,709.8
339.6
1,370.3
564.6
162.7
401.9
2,513.7
796.6
1,717.1
343.2
1,373.9
555.0
155.3
399.7
2,529.1
812.0
1,717.1
341.4
1,375.7
540.8
159.3
381.5
2,509.2
799.5
1,709.7
339.8
1,369.9
543.8
154.5
389.3
75.0
147.2
110.6
148.6
118.6
146.6
124.3
147.1
124.4
149.5
126.4
145.5
124.0
156.4
138.8
161.2
128.6
162.1"
133.5
161.1"
136.5
162.8"
145.1
158.9"
3,210.4
3,288.0"
3317.9
3,314.0
3,346.3
3,373.6
3,369.3
3,369.7
3,381.0"
3,363.2"
3,369.2"
3,357.0"
271.9
293.6r
296.4
296.0
298.2
300.1
303.5
306.8
307.0"
305.4"
307.4"
306.9"
45
46
47
48
49
50
51
52
53
54
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U . S
Net due to related foreign
offices
Other liabilities 8
55 Total liabilities
56 Residual (assets less liabilities) 9
Footnotes appear onfollowingpage.
Commercial Banking Institutions
1.26 ASSETS A N D LIABILITIES OF COMMERCIAL BANKS 1
A19
Wednesday figures—Continued
Billions of dollars
1994r
1994r
1993r
1993
Account
Feb.
Aug.
Sept.
Oct.
Nov.
DOMESTICALLY CHARTERED
COMMERCIAL BANKS
Dec.
Jan.
Feb.
Feb. 2
Feb. 9
Feb. 16
Feb. 23
Seasonally adjusted
Assets
57 Bank credit
58
Securities in bank credit
59
U.S. government securities . .
Other securities
60
Loans and leases in bank credit 2 .
61
Commercial and industrial . . .
6?
Real estate
63
64
Revolving home equity
65
Other
66
Consumer
Security 3
67
Other
68
69 Interbank loans 4
70 Cash assets 5
71 Other assets 6
2,644.3
791.3
635.9
155.4
1,853.1
440.6
850.1
73.8
776.3
363.6
43.1
155.6
132.9
185.4
170.2
2,721.6r
824.5r
664.6
159.8r
1,897.2
434.3r
872. l r
74.7
797,4r
378.2r
54.6
158.0
134.0
193.1
172.5r
2,732.3
826.9
667.2
159.8
1,905.3
433.8
875.5
74.3
801.2
380.4
56.4
159.3
130.5
198.5
173.7
2,736.9
822.8
665.0
157.8
1,914.1
433.6
878.4
73.8
804.6
384.4
56.5
161.2
130.0
193.5
172.8
2,751.2
826.5
668.2
158.4
1,924.7
433.7
882.8
73.4
809.5
387.5
59.6
161.0
133.4
192.9
172.2
2,764.0
834.3
673.6
160.6
1,929.7
434.7
888.3
73.0
815.2
389.7
57.3
159.7
134.3
193.2
171.9
2,784.2
846.2
677.5
168.7
1,938.0
439.1
891.7
72.7
819.0
392.3
53.7
161.1
136.1
193.9
175.0
2,792.4
849.9
675.7
174.2
1,942.6
441.2
891.0
72.8
818.1
395.7
53.8
161.0
131.1
200.4
175.9
2,789. l r
847.6r
671.5
176. l r
1,941.5
441.5r
892.7r
72.9
819.8r
394.3r
53.5
159.5r
132.6
195.3
177.0*
2,790.0*
848.2*
673.0
175.2
1,941.8
440.8*
892.2*
73.0
819.2*
395.7*
53.0
160.1
131.3
209.1
177.3*
2,792.8*
848.5*
674.2*
174.4*
1,944.3
441.8*
891.2*
72.8
818.4*
395.7*
55.0
160.6*
133.2
180.3
172.1*
2,781.7*
844.4*
674.1
170.3*
1,937.3
440.5*
888.7*
72.8
815.9*
394.9*
51.5
161.6*
130.1
212.1
179.2*
72 Total assets 7
3,071.7
3,161.1'
3,175.1
3,173.8
3,190.6
3,204.6
3,231.0
3,242.2
3,236.2*
3,250.4'
3,220.6*
3,2453'
2,339.5
738.3
1,601.2
228.9
1,372.2
367.3
109.7
257.6
2,368.7
787.4
1,581.2
214.5
1,366.7
403.0r
119.3
283,7r
2,372.3
795.9
1,576.4
212.3
1,364.1
418.8
116.7
302.1
2,370.5
797.4
1,573.1
211.7
1,361.4
408.5
119.3
289.2
2,376.0
803.4
1,572.6
210.6
1,362.0
406.0
118.4
287.6
2,374.8
805.9
1,568.9
208.5
1,360.4
434.9
116.9
317.9
2,376.5
802.3
1,574.2
210.0
1,364.2
459.8
113.6
346.2
2,376.3
804.0
1,572.3
208.3
1,364.1
442.2
115.6
326.6
2,374.7
799.7
1,575.0
209.8
1,365.2
470.2
107.0
363.2
2,383.4
810.6
1,572.9
208.2
1,364.6
452.5
112.7
339.8
2,363.9
790.7
1,573.1
208.0
1,365.1
429.3
117.9
311.4
2,379.9
809.7
1,570.1
207.6
1,362.5
437.3
118.2
319.1
-11.6
103.2
-12.4
107.9
-7.6
105.6
-6.2
105.9
-2.7
105.5
1.5
105.3
3.4
114.2
3.3
120.1
4.6
119.3*
3.4
120.8*
-0.3
121.2*
3.1
118.7*
2,798.1
2,867.1
2,889.1
2,878.7
2,884.8
2,916.6
2,953.9
2,941.9
2,968.7*
2,960.2*
2,914.1'
2,938.9'
286.0
295.2
305.8
288.0
277.1
300.3
267.5*
290.2*
306.5*
306.3*
73
74
75
76
77
78
79
80
81
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign
82 Other liabilities 8
83 Total liabilities
84 Residual (assets less liabilities) 9 ...
273.7
294.0*
Not seasonally adjusted
Assets
8 5 Bank credit
86
Securities in bank credit
87
U.S. government securities . .
Other securities
88
89
Loans and leases in bank credit 2 .
Commercial and industrial . . .
90
91
Real estate
92
Revolving home equity
93
Other
Consumer
94
95
Security 3
96
Other
97 Interbank loans 3
98
99 Other assets 6
100 Total assets 7
2,639.6
790.3
634.7
155.6
1,849.3
439.8
846.2
73.6
772.6
364.6
44.9
153.7
135.2
181.4
169.5
2,717.8*
824.6r
664.9r
159,7*
1,893.3
431.7r
872.2r
74.7
797.6r
377.6r
53.4
158.3
132.2
186.7
171.0*
2,736.7
829.9
669.9
160.1
1,906.7
431.5
876.0
74.7
801.3
381.5
56.6
161.2
128.2
199.3
175.1
2,741.9
825.6
666.7
158.9
1,916.3
433.1
880.7
74.4
806.2
384.4
55.6
162.6
128.5
191.8
175.1
2,759.9
830.6
670.8
159.8
1,929.3
434.4
885.2
73.9
811.3
387.7
59.4
162.5
135.1
200.2
173.6
2,770.6
831.5
670.8
160.7
1,939.1
434.7
891.6
73.3
818.3
394.1
56.6
162.2
139.6
206.3
173.9
2,777.2
839.8
671.4
168.4
1,937.5
436.6
890.3
72.9
817.5
396.8
53.2
160.5
139.2
199.1
176.1
2,788.6
849.1
674.5
174.6
1,939.6
440.5
887.4
72.6
814.8
396.9
55.9
158.8
133.5
195.4
175.1
2,787.5*
845.2*
668.8
176.3*
1,942.3
439.9*
889.6*
72.9
816.8*
397.1*
56.0
159.7*
138.6
194.7
179.7*
2,786.6*
847.7*
672.3
175.4*
1,938.9
439.1*
890.4*
72.8
817.6*
397.8*
54.3
157.3*
135.0
183.6
175.0*
2,792.4*
849.3*
673.9
175.4*
1,943.1
441.0*
887.9*
72.7
815.2*
397.3*
57.1
159.8*
137.6
190.3
171.9*
2,771.6*
842.0*
672.2
169.8*
1,929.6
439.4*
883.7*
72.5
811.2*
396.0*
53.4
157.1*
126.6
206.8
177.0*
3,064.3
3,148.1r
3,179.5
3,178.3
3,209.4
3,231.2
3,233.6
3,234.4
3,242.5*
3,221.9*
3,234.0*
3,223,8*
2,329.9
730.6
1,599.2
229.0
1,370.2
372.8
113.2
259.6
2,357.5
772.8
1,584.7
215.9
1,368.7
406. l r
115.5
290.7
2,372.1
793.6
1,578.5
213.4
1,365.1
418.1
115.4
302.6
2,368.1
791.3
1,576.9
212.8
1,364.0
416.4
116.4
300.0
2,391.1
815.0
1,576.1
211.1
1,365.0
417.6
118.1
299.5
2,406.7
840.1
1,566.6
207.2
1,359.5
422.6
121.6
300.9
2,381.4
811.7
1,569.8
208.5
1,361.3
434.5
118.3
316.2
2,365.2
794.9
1,570.3
208.3
1,362.0
441.6
119.4
322.3
2,372.2
802.4
1,569.7
208.6
1,361.1
442.4
115.3
327.1
2,355.8
783.7
1,572.1
208.6
1,363.5
443.4
115.7
327.7
2,370.9
799.2
1,571.7
208.1
1,363.6
437.5
122.2
315.3
2,353.2
786.5
1,566.7
207.7
1,359.0
441.0
120.5
320.5
-10.3
102.8
-12.8
107.6
-8.9
106.3
-6.6
108.9
-3.3
110.3
-1.8
108.0
3.0
115.5
5.4
119.6
4.8
564.6
2.1
555.0
1.5
540.8
9.0
543.8
2,795.3
2,858.4r
2,887.5
2,886.8
2,915.7
2,935.5
2,934.4
2,931.9
2,939.6*
2,920.7*
2,930.8*
2,921.2*
269.1
r
302.9*
301.1*
303.1*
302.6*
Liabilities
101
10?
Transaction
103
Nontransaction
Large time
104
105
Other
106 Borrowings
107
From banks in the U.S
108
From nonbanks in the U.S
109 Net due to related foreign
110 Other liabilities 8
111 Total Uabilities
9
112 Residual (assets less liabilities) ...
Footnotes appear on following page.
289.7
292.0
291.5
293.7
295.7
299.2
302.5
A20
DomesticNonfinancialStatistics • May 1994
N O T E S T O T A B L E 1.26
1. Covers the following types of institutions in the fifty states and the District
of Columbia: domestically chartered commercial banks that submit a weekly
report of condition (large domestic); other domestically chartered commercial
banks (small domestic); branches and agencies of foreign banks; N e w York State
investment companies, and Edge Act and Agreement corporations (foreignrelated institutions). Excludes international banking facilities. Data are Wednesday values, or pro rata averages of Wednesday values. Large domestic banks
constitute a universe; small domestic and foreign-related institutions are estimated
based on weekly samples and on quarter-end condition reports. Data are adjusted
for breaks caused by reclassifications of assets and liabilities.
2. Excludes federal f u n d s sold to, reverse repurchase agreements with, and
loans to commercial banks in the United States.
3. Consists of reserve repurchase agreements with broker-dealers and loans to
purchase and carry securities.
4. Consists of federal f u n d s sold to, reverse repurchase agreements with, and
loans to commercial banks in the United States.
5. Includes vault cash, cash items in process of collection, d e m a n d balances
due f r o m depository institutions in the United States, balances d u e f r o m Federal
Reserve Banks, and other cash assets.
6. Excludes the due-from position with related foreign offices, which is
included in lines 25, 53, 81, and 109.
7. Excludes unearned income, reserves for losses on loans and leases, and
reserves for transfer risk. L o a n s are reported gross of these items.
8. Excludes the due-to position with related foreign offices, which is included in
lines 25, 53, 81, and 109.
9. Assets and liabilities. This balancing item is not intended as a measure of
equity capital for use in capital adequacy analysis.
Weekly Reporting Commercial
Banks
A21
1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
1993
Dec. 29
Jan. 5
Jan. 12
Jan. 19
Jan. 26
Feb. 2
Feb. 9
Feb. 16
Feb. 23
ASSETS
1 Cash and balances due from depository institutions
2 U.S. Treasury and government securities
3
Trading account
4
Investment account
5
Mortgage-backed securities
All others, by maturity
6
One year or less
7
One year through five years
8
More than five years
9 Other securities
10
Trading account
11
Investment account
12
State and political subdivisions, by maturity .
13
One year or less
14
More than one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Federal funds sold 2
To commercial banks in the United States
To nonbank brokers and dealers
To others 3
Other loans and leases, gross
Commercial and industrial
Bankers acceptances and commercial paper . .
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
All other
To individuals for personal expenditures
To financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank 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 reserve
Other loans and leases, net
Other assets
45 Total assets
Footnotes appear on the following page.
127,680
302,868
20,962
281,905
90,589
119,847
308,747
24,052
284,695
89,948
114,463
308,056
23,436
284,620
89,908
139,888
306,256
27,414
278,842
88,635
114,346
300,318
24,538
275,780
87,890
117,027
303,996
24,428
279,567
88,372
112,452
303,462
24,145
279,317
87,940
115,217
306,414
26,645
279,769
88,478
127,359
303,615
24,452
279,163
89,291
52,226
72,841
66,250
70,194
1,883
55,352
21,078
4,136
16,942
34,273
12,960
52,877
73,707
68,162
78,606
1,949
56,872
21,057
3,931
17,126
35,815
19,785
51,255
74,596
68,862
77,162
1,860
56,865
21,138
3,874
17,264
35,727
18,438
50,756
72,477
66,975
76,766
1,767
57,210
21,100
3,908
17,193
36,110
17,789
49,974
72,210
65,706
77,680
1,707
56,876
21,125
3,952
17,173
35,751
19,096
49,222
73,288
68,685
87,922
1,824
57,144
21,078
3,981
17,098
36,065
28,954
48,277
74,001
69,099
87,057
1,833
57,267
21,195
4,005
17,189
36,073
27,956
47,918
75,410
67,963
87,321
1,669
57,142
21,279
4,088
17,192
35,863
28,510
47,666
73,956
68,249
81,764
1,790
57,291
21,397
4,143
17,254
35,894
22,683
90,604
57,756
29,504
3,343
1,045,434
278,536
3,108
275,428
273,932
1,496
421,211
44,004
377,207
211,434
42,873
18,090
2,405
22,379
19,157
5,947
12,620
1,414
26,183
26,059
2,082
35,570
1,007,782
170,240
93,589
59,910
28,340
5,339
1,046,937
278,919
2,883
276,036
274,484
1,552
422,479
43,906
378,573
211,305
44,174
18,670
3,397
22,107
18,289
6,117
12,330
1,165
25,688
26,470
1,918
35,029
1,009,990
178,002
92,790
59,226
28,887
4,677
1,042,006
277,124
2,922
274,203
272,515
1,688
424,262
43,812
380,450
210,534
42,088
18,269
2,649
21,171
18,317
5,970
12,223
1,135
23,773
26,578
1,919
34,893
1,005,193
175,725
100,424
64,902
29,062
6,461
1,040,506
278,844
2,903
275,942
274,286
1,655
420,112
43,815
376,297
210,294
41,182
18,511
2,660
20,012
18,174
5,916
12,233
1,217
25,954
26,580
1,916
34,869
1,003,720
171,232
90,526
57,702
26,787
6,036
1,033,981
278,876
3,220
275,656
274,006
1,650
417,726
43,826
373,900
209,821
39,155
17,227
2,652
19,276
17,634
5,933
12,219
1,066
24,998
26,554
1,898
34,907
997,176
168,418
99,395
63,870
29,652
5,873
1,040,683
282,046
3,105
278,941
277,270
1,672
420,072
43,835
376,237
209,509
38,811
16,275
2,577
19,958
19,009
5,911
12,253
1,171
25,319
26,584
1,873
34,846
1,003,964
171,381
92,193
58,021
28,142
6,030
1,039,164
281,116
3,197
277,919
276,024
1,8%
421,098
43,733
377,365
209,642
38,606
16,685
2,645
19,275
19,127
5,901
12,139
1,042
23,906
26,587
1,868
35,140
1,002,156
169,914
98,952
61,020
30,431
7,500
1,036,932
282,809
3,227
279,582
277,589
1,993
417,938
43,709
374,229
208,761
37,740
15,809
3,124
18,807
19,670
5,858
12,198
1,127
24,210
26,622
1,866
35,101
999,965
168,823
87,741
53,694
27,308
6,739
1,030,277
281,014
3,160
277,854
275,835
2,018
414,578
43,634
370,944
208,172
37,346
16,540
2,677
18,128
19,482
5,777
12,170
1,222
23,865
26,653
1,884
35,060
993,333
168,838
1,769,368
1,788,781
1,773,391
1,798,286
1,748,464
1,783,685
1,767,234
1,776,692
1,762,650
A22
DomesticNonfinancialStatistics • May 1994
1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1993
1994
Account
D e c . 29
Jan. 5
J a n . 12
J a n . 19
J a n . 26
Feb. 2
Feb. 9
F e b . 16
F e b . 23
1,172,440
317,193
263,590
53,602
10,008
2,786
22,531
5,991
881
11,405
137,169
718,079
698,360
19,719
17,305
464
1,623
326
1,159,192
303,384
254,696
48,687
8,658
2,535
21,194
5,705
605
9,990
126,942
728,867
706,658
22,209
18,223
2,024
1,653
309
1,167,393
320,512
260,721
59,791
9,799
4,675
27,874
5,748
7%
10,898
126,536
720,344
697,946
22,397
18,331
2,063
1,695
309
1,127,382
289,692
238,298
51,394
9,659
2,531
22,631
5,202
637
10,735
121,240
716,449
693,898
22,551
18,496
2,056
1,691
308
1,146,990
302,683
249,081
53,602
9,810
2,920
22,643
5,783
679
11,766
124,127
720,180
697,636
22,544
18,457
2,090
1,689
308
1,133,752
289,944
241,327
48,617
8,931
2,126
20,290
4,681
607
11,982
123,307
720,501
697,627
22,874
18,806
2,114
1,647
307
1,147,382
303,115
250,516
52,599
9,355
3,562
21,830
5,600
590
11,661
123,215
721,051
698,010
23,041
18,894
2,120
1,727
301
1,130,613
292,725
241,183
51,542
9,362
1,686
23,966
5,764
541
10,224
122,070
715,818
692,986
22,832
18,731
2,114
1,691
296
327,215
1,220
15,996
309,999
323,063
0
19,531
303,532
336,944
0
23,302
313,642
328,586
0
28,843
299,743
336,522
0
30,901
305,621
337,061
0
28,796
308,265
330,637
0
24,591
306,047
334,111
0
22,927
311,185
LIABILITIES
1,162,363
46 D e p o s i t s
322,219
Demand deposits
47
Individuals, p a r t n e r s h i p s , a n d c o r p o r a t i o n s
265,822
48
56,397
49
O t h e r holders
10,413
50
States a n d political subdivisions
51
3,003
U.S. government
22,935
52
D e p o s i t o r y institutions in the United S t a t e s
5,716
B a n k s in foreign c o u n t r i e s
53
Foreign g o v e r n m e n t s and official institutions
860
54
13,471
55
Certified a n d officers' c h e c k s
130,366
T r a n s a c t i o n b a l a n c e s o t h e r than d e m a n d deposits 4
56
709,778
57
Nontransaction balances
688,977
Individuals, p a r t n e r s h i p s , a n d c o r p o r a t i o n s
58
59
O t h e r holders
20,801
S t a t e s a n d political subdivisions
16,925
60
1,847
61
U.S. government
1,713
62
D e p o s i t o r y institutions in the United States
Foreign governments, official institutions, and banks . . . .
316
63
64 Liabilities f o r b o r r o w e d m o n e y 5
65
Borrowings from Federal Reserve Banks
66
T r e a s u r y tax a n d loan n o t e s
67
O t h e r liabilities f o r b o r r o w e d m o n e y 6
68 O t h e r liabilities (including s u b o r d i n a t e d notes and
debentures)
69 Total liabilities
70 Residual (total a s s e t s less total liabilities) 7
71
72
73
74
75
76
77
MEMO
Total loans and leases, g r o s s , a d j u s t e d , plus securities 8 . .
T i m e d e p o s i t s in a m o u n t s of $100,000 o r more
L o a n s sold outright t o affiliates 9
C o m m e r c i a l a n d industrial
Other
F o r e i g n b r a n c h credit e x t e n d e d t o U . S . residents
N e t o w e d t o related institutions a b r o a d
330,514
0
29,559
300,955
116,428
126,762
127,931
131,190
129,005
136,164
133,658
134,722
134,768
1,609,305
1,626,418
1,610,185
1,635,527
1,584,972
1,619,676
1,604,471
1,612,740
1,599,492
160,063
162,363
163,205
162,760
163,491
164,008
162,763
163,952
163,158
1,433,254
93,886
796
392
404
21,885
-5,279
1,449,298
95,134
793
389
404
21,889
-11,197
1,442,520
98,967
785
389
396
21,936
-3,384
1,440,539
98,897
774
384
390
21,979
5,413
1,427,575
97,581
770
383
387
21,721
5,361
1,451,850
97,652
768
383
385
21,325
2,282
1,447,169
97,259
768
382
386
21,141
-68
1,452,790
96,805
762
382
381
20,710
-1,170
1,433,163
96,302
757
377
380
20,551
6,163
1. I n c l u d e s certificates of participation, issued o r guaranteed by agencies of the
U . S . g o v e r n m e n t , in p o o l s of residential mortgages.
2. I n c l u d e s securities p u r c h a s e d u n d e r a g r e e m e n t s t o resell.
3. I n c l u d e s allocated t r a n s f e r risk r e s e r v e .
4. I n c l u d e s negotiable o r d e r of w i t h d r a w a l a c c o u n t s ( N O W s ) , automatic transf e r service ( A T S ) , a n d t e l e p h o n e a n d p r e a u t h o r i z e d transfers of savings deposits.
5. I n c l u d e s b o r r o w i n g s only f r o m o t h e r t h a n directly related institutions.
6. I n c l u d e s federal f u n d s p u r c h a s e d a n d securities sold under a g r e e m e n t s to
repurchase.
7. T h i s balancing item is not intended as a m e a s u r e of equity capital for use in
c a p i t a l - a d e q u a c y analysis.
8. E x c l u d e s loans t o a n d f e d e r a l f u n d s t r a n s a c t i o n s with c o m m e r c i a l b a n k s in
the United States.
9. Affiliates include a b a n k ' s o w n foreign b r a n c h e s , n o n c o n s o l i d a t e d n o n b a n k
affiliates of the b a n k , the b a n k ' s holding c o m p a n y (if n o t a b a n k ) , a n d n o n c o n solidated n o n b a n k subsidiaries of the holding c o m p a n y .
10. Credit e x t e n d e d b y foreign b r a n c h e s of d o m e s t i c a l l y c h a r t e r e d w e e k l y
reporting b a n k s t o n o n b a n k U . S . r e s i d e n t s . C o n s i s t s mainly of c o m m e r c i a l a n d
industrial loans, but includes a n u n k n o w n a m o u n t of c r e d i t e x t e n d e d t o o t h e r t h a n
nonfinancial b u s i n e s s e s .
NOTE. D a t a that f o r m e r l y a p p e a r e d in table 1.28, A s s e t s a n d Liabilities of L a r g e
Weekly R e p o r t i n g C o m m e r c i a l B a n k s in N e w Y o r k C i t y , c a n b e o b t a i n e d f r o m t h e
B o a r d ' s H . 4 . 2 (504) weekly statistical r e l e a s e . F o r o r d e r i n g a d d r e s s , s e e inside
front cover.
Weekly Reporting
Commercial Banks
1.28 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS
Liabilities1
A23
Assets and
Millions of dollars, Wednesday figures
1994
1993
Account
D e c . 29
Jan. 5
J a n . 12
J a n . 19
J a n . 26
Feb. 2
Feb. 9
Feb.16
F e b . 23
ASSETS
1 C a s h and b a l a n c e s d u e f r o m depository
institutions
2 U . S . T r e a s u r y a n d g o v e r n m e n t agency
securities
3 O t h e r securities
4 F e d e r a l f u n d s sold
T o commercial banks in the United States . . .
5
T o others2
6
7 O t h e r loans and leases, gross
C o m m e r c i a l a n d industrial
8
B a n k e r s a c c e p t a n c e s and commercial
9
paper
All o t h e r
10
11
U.S. addressees
Non-U.S. addressees
12
L o a n s secured by real estate
13
14
T o financial institutions
C o m m e r c i a l b a n k s in the United S t a t e s . .
15
B a n k s in foreign c o u n t r i e s
16
N o n b a n k financial institutions
17
F o r purchasing a n d carrying securities
18
19
T o foreign g o v e r n m e n t s a n d official
institutions
All o t h e r
20
21 O t h e r a s s e t s (claims on nonrelated parties) . .
17,544
17,203
16,728
16,920
16,038
16,959
16,334
16,694
15,446
38,062
7,916
31,712
8,717
22,994
160,008
95,925 r
36,390
8,805
23,862
6,296
17,566
157,761
96,274
36,338
8,629
23,467
2,513
20,954
157,339
96,267
36,749
8,346
29,344
6,753
22,591
155,978
96,044
36,629
8,535
25,529
5,184
20,345
154,374
95,331
36,558
8,496
31,106
7,377
23,729
154,089
94,374
35,720
8,566
29,627
5,922
23,705
156,013
94,498
36,427
8,741
27,315
6,476
20,839
155,529
94,684
36,116
8,890
29,092
9,688
19,403
154,955
94,386
3,134
92,791 r
89,610 r
3,182
29,686
23,124 r
5,363
1,644
16,117 r
6,863 r
3,353
92,920
89,702
3,219
29,328
22,821
5,436
1,539
15,847
5,163
3,282
92,985
89,758
3,227
29,331
22,369
5,575
1,538
15,256
5,105
3,304
92,739
89,489
3,250
29,317
22,054
5,483
1,510
15,061
4,157
3,154
92,177
88,844
3,334
29,466
21,124
5,099
1,451
14,573
4,030
3,112
91,262
87,958
3,304
29,353
21,282
5,142
1,361
14,778
4,452
3,142
91,356
88,036
3,321
29,394
22,359
4,632
1,456
16,270
5,177
3,427
91,257
87,966
3,291
29,409
20,981
4,874
1,619
14,489
6,089
2,977
91,409
88,078
3,332
29,207
20,928
4,658
1,557
14,714
5,950
468
3,943
30,093
529
3,646
33,337
525
3,742
33,400
585
3,820
31,827
634
3,790
32,539
797
3,832
33,133
895
3,690
34,900
594
3,771
34,121
619
3,864
32,318
314,422
304,398
305,527
305,496
297,933
304,913
301,563
298,285
295,378
99,470
5,125
97,946
4,567
97,429
4,498
96,047
4,644
98,113
4,889
92,671
5,183
94,964
4,802
94,284
4,760
93,399
4,900
3,963
1,162
94,345
3,722
846
93,379
3,515
983
92,931
3,770
874
91,403
3,636
1,253
93,224
3,762
1,421
87,488
3,631
1,171
90,162
3,680
1,080
89,524
3,813
1,087
88,499
65,181
29,164
63,928
29,450
64,235
28,696
63,339
28,064
65,748
27,476
61,925
25,563
62,623
27,539
61,808
27,716
61,662
26,836
78,684
43,179
72,808
37,537
75,186
40,556
78,008
42,848
70,659
38,339
82,102
47,574
73,471
39,235
67,450
34,260
67,781
33,641
14,121
29,058
78,684 r
10,152
27,385
72,808
10,889
29,667
75,186
10,415
32,433
78,008
10,002
28,337
70,659
15,878
31,696
82,102
9,708
29,527
73,471
9,766
24,494
67,450
7,430
26,211
67,781
6,003
29,502
27,470
6,437
28,834
29,864
6,172
28,458
30,191
6,346
28,814
28,671
5,816
26,504
30,239
6,015
28,513
30,509
6,227
28,009
30,251
5,514
27,676
30,239
5,639
28,501
29,759
38 Total liabilities 6
314,422
304,398
305,527
305,496
297,933
304,913
301,563
298,285
295,378
MEMO
7
39 Total loans (gross) a n d securities, a d j u s t e d ' . .
40 N e t o w e d t o related institutions a b r o a d
223,618
79,711
215,087
76,740
217,684
73,093
218,180
76,439
214,784
74,632
217,730
75,059
219,371
82,473
216,662
86,855
214,708
85,879
22 Total assets 3
LIABILITIES
23 D e p o s i t s o r credit b a l a n c e s o w e d t o o t h e r
t h a n directly-related institutions
24 D e m a n d d e p o s i t s 4
Individuals, p a r t n e r s h i p s , and
25
corporations
Other
26
27 N o n t r a n s a c t i o n a c c o u n t s
Individuals, p a r t n e r s h i p s , and
28
corporations
Other
29
30 B o r r o w i n g s f r o m o t h e r t h a n directlyrelated institutions
31 F e d e r a l f u n d s p u r c h a s e d
F r o m c o m m e r c i a l b a n k s in the
32
United S t a t e s
From others
33
34 O t h e r liabilities f o r b o r r o w e d m o n e y
35
T o c o m m e r c i a l b a n k s in the
United S t a t e s
T o others
36
37 O t h e r liabilities t o nonrelated parties
1. I n c l u d e s securities p u r c h a s e d u n d e r a g r e e m e n t s t o resell.
2. I n c l u d e s t r a n s a c t i o n s with n o n b a n k b r o k e r s and dealers in securities.
3. I n c l u d e s net d u e f r o m related institutions abroad f o r U . S . b r a n c h e s and
agencies of foreign b a n k s having a net " d u e f r o m " position.
4. I n c l u d e s o t h e r t r a n s a c t i o n d e p o s i t s .
5. Includes securities sold u n d e r a g r e e m e n t s t o r e p u r c h a s e .
6. Includes net o w e d t o related institutions a b r o a d f o r U . S . b r a n c h e s a n d
agencies of foreign b a n k s having a n e t " d u e t o " position.
7. E x c l u d e s loans t o a n d f e d e r a l f u n d s t r a n s a c t i o n s with c o m m e r c i a l b a n k s in
the United States.
A24
1.32
DomesticNonfinancialStatistics • May 1994
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
Year ending December
1993
1993
Item
1989
1990
1991
1992
1993
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Commercial paper (seasonally adjusted unless noted otherwise)
1 AD issuers
2
3
4
5
Financial companies'
Dealer-placed
paper
Total
Bank-related (not seasonally
adjusted) 3
Directly placed paper
Total
Bank-related (not seasonally
adjusted) 3
6 Nonfinancial companies 5
525,831
562,656
531,724
549,520'
559,259
545,423 r
541,676 r
550,947'
550,506
559,259
183,622
214,706
213,823
227,550'
220,004
216,259 r
215,209 r
223,372 r
218,428
220,004
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
210,930
200,036
183,379
172,813
181,658
172,093
169,932r
171,461'
177,622
181,658
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
131,279
147,914
134,522
149,157r
157,597
157,071r
156,535r
156,114'
154,456
157,597
n.a.
Bankers dollar acceptances (not seasonally adjusted) 6
7 Total
8
9
10
11
12
By holder
Accepting banks
Own bills
Bills bought from other banks
Federal Reserve Banks
Foreign correspondents
Others
By basis
13 Imports into United States
14 Exports from United States
15 All other
62,972
54,771
43,770
38,194
32,348
32,572
33,041
33,069
31,997
32,348
31,701
9,433
8,510
924
9,017
7,930
1,087
11,017
9,347
1,670
10,555
9,097
1,458
12,325
10,611
1,714
12,416
10,709
1,707
12,522
10,679
1,843
12,332
10,886
1,446
12,475'
10,853'
1,622
12,325
10,611
1,714
11,275
9,818
1,457
1,066
52,473
918
44,836
1,739
31,014
1,276
26,364
725
19,298
635
19,521
637
19,882
582
20,155
650
18,872'
725
19,298
869
19,557
15,651
13,683
33,638
13,095
12,703
28,973
12,843
10,351
20,577
12,209
8,0%
17,890
10,217
7,293
14,838
10,422
7,534
14,616
10,773
7,460
14,808
10,810
7,101
15,158
10,368
7,054
14,575
10,217
7,293
14,838
10,588
7,119
13,994
1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other
business lending; insurance underwriting; and other investment activities.
2. Includes ail financial-company paper sold by dealers in the open market.
3. Series were discontinued in January 1989.
4. As reported by financial companies that place their paper directly with
investors.
5. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. Data on bankers dollar acceptances are gathered from approximately 100
institutions. The reporting group is revised every January.
7. In 1977 the Federal Reserve discontinued operations in bankers dollar
acceptances for its own account.
Financial Markets
1.33 PRIME RATE CHARGED BY BANKS
A25
Short-Term Business Loans1
Percent per year
Average
rate
Date of change
1991— Jan.
1
2
Feb. 4
May 1
Sept. 13
Nov. 6
Dec. 23
10.00
9.50
9.00
8.50
8.00
7.50
6.50
2
6.00
1994— Mar. 24
6.25
1992— July
1991
1992
1993
8.46
6.25
6.00
1991— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
9.52
9.05
9.00
9.00
8.50
8.50
8.50
8.50
8.20
8.00
7.58
7.21
1. The prime rate is one of several base rates that banks use to price short-term
business loans. The table shows the date on which a new rate came to be the
predominant one quoted by a majority of the twenty-five largest banks by asset
Average
rate
1992—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
...
..
..
..
...
..
...
..
..
...
..
..
6.50
6.50
6.50
6.50
6.50
6.50
6.02
6.00
6.00
6.00
6.00
6.00
Period
1993— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Average
rate
..
..
..
..
...
..
...
..
..
...
..
..
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
1994— Jan. ...
F e b . ..
Mar.
6.00
6.00
6.06
6.00
size, based on the most recent Call Report. D a t a in this table also appear in the
Board's H.15 (519) weekly and G.13 (415) monthly statistical releases. F o r
ordering address, see inside front cover.
A26
1.35
DomesticNonfinancialStatistics • May 1994
INTEREST RATES
M o n e y and Capital Markets
Averages, percent per year; figures are averages of business day data unless otherwise noted
1993
Item
1991
1992
1994
1994, week ending
1993
Nov.
Dec.
Jan.
Feb.
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
MONEY MARKET INSTRUMENTS
1 Federal funds 1 ' 2 ' 3
2 Discount window borrowing '
Commercial
1-month
3-month
5
6-month
Finance paper, directly
1-month
3-month
6-month
9
10
Bankers
acceptances3'5'8
3-month
6-month
11
12
13
Certificates of deposit,
marker9
1-month
3-month
6-month
3.02
3.00
3.02
3.00
2.96
3.00
3.05
3.00
3.25
3.00
2.97
3.00
3.17
3.00
3.20
3.00
3.25
3.00
3.25
3.00
5.89
5.87
5.85
3.71
3.75
3.80
3.17
3.22
3.30
3.15
3.40
3.43
3.35
3.36
3.40
3.14
3.19
3.30
3.39
3.49
3.62
3.11
3.15
3.26
3.14
3.20
3.32
3.41
3.50
3.63
3.46
3.54
3.66
3.47
3.63
3.79
5.73
5.71
5.60
3.62
3.65
3.63
3.12
3.16
3.15
3.08
3.25
3.19
3.21
3.19
3.18
3.07
3.11
3.15
3.30
3.40
3.39
3.03
3.07
3.13
3.08
3.13
3.16
3.34
3.42
3.39
3.36
3.45
3.44
3.37
3.51
3.50
5.70
5.67
3.62
3.67
3.13
3.21
3.29
3.32
3.23
3.30
3.10
3.21
3.40
3.56
3.07
3.17
3.19
3.32
3.40
3.54
3.43
3.58
3.53
3.73
5.82
5.83
5.91
3.64
3.68
3.76
3.11
3.17
3.28
3.11
3.35
3.39
3.26
3.26
3.35
3.08
3.15
3.29
3.31
3.43
3.62
3.06
3.12
3.26
3.10
3.20
3.36
3.32
3.43
3.60
3.35
3.47
3.64
3.41
3.57
3.81
5.86
3.70
3.18
3.36
3.26
3.15
3.43
3.13
3.20
3.43
3.44
3.55
5.38
5.44
5.52
3.43
3.54
3.71
3.00
3.12
3.29
3.10
3.26
3.42
3.06
3.23
3.45
2.98
3.15
3.39
3.25
3.43
3.69
2.93
3.13
3.35
3.08
3.24
3.49
3.25
3.40
3.69
3.27
3.43
3.70
3.35
3.58
3.82
5.42
5.49
5.54
3.45
3.57
3.75
3.02
3.14
3.33
3.12
3.27
3.43
3.08
3.25
3.47
3.02
3.19
3.52
3.21
3.38
3.59
2.96
3.14
n.a.
2.99
3.16
n.a.
3.24
3.40
3.59
3.28
3.43
n.a.
3.33
3.53
n.a.
5.86
6.49
6.82
7.37
7.68
7.86
n.a.
8.14
3.89
4.77
5.30
6.19
6.63
7.01
n.a.
7.67
3.43
4.05
4.44
5.14
5.54
5.87
6.29
6.59
3.58
4.16
4.50
5.06
5.45
5.72
6.38
6.21
3.61
4.21
4.54
5.15
5.48
5.77
6.40
6.25
3.54
4.14
4.48
5.09
5.43
5.75
6.39
6.29
3.87
4.47
4.83
5.40
5.72
5.97
6.57
6.49
3.51
4.10
4.44
5.05
5.38
5.74
6.35
6.29
3.66
4.24
4.57
5.14
5.46
5.80
6.38
6.30
3.85
4.43
4.81
5.36
5.67
5.94
6.52
6.42
3.88
4.48
4.85
5.40
5.73
5.95
6.58
6.51
4.01
4.67
5.03
5.60
5.94
6.15
6.76
6.68
8.16
7.52
6.45
6.25
6.27
6.24
6.44
6.21
6.23
6.39
6.45
6.63
6.56
6.99
6.92
6.09
6.48
6.44
5.38
5.82
5.60
5.10
5.61
5.47
5.18
5.69
5.35
5.14
5.60
5.31
n.a.
n.a.
5.40
5.10
5.53
5.28
5.04
5.20
5.25
5.05
5.25
5.36
5.06
5.27
5.42
5.12
5.37
5.58
9.23
8.55
7.54
7.25
7.26
7.25
7.39
7.23
7.24
7.35
7.39
7.54
8.77
9.05
9.30
9.80
9.32
8.14
8.46
8.62
8.98
8.52
7.22
7.40
7.58
7.93
7.46
6.93
7.12
7.29
7.66
7.25
6.93
7.12
7.31
7.69
7.28
6.92
7.12
7.30
7.65
7.24
7.08
7.29
7.44
7.76
7.45
6.91
7.11
7.29
7.62
7.16
6.93
7.13
7.29
7.61
7.35
7.03
7.24
7.39
7.72
7.40
7.06
7.30
7.44
7.76
7.54
7.23
7.45
7.60
7.92
7.62
8.17
3.24
7.46
2.99
6.89
2.78
6.87
2.72
7.01
2.72
6.97
2.69
7.00
2.70
6.97
2.69
6.%
2.63
6.93
2.71
7.03
2.71
7.07
2.72
placedi,s'7
secondary
14 Eurodollar deposits, 3-month 3 ' 1 0
18
19
20
U.S. Treasury bills
Secondary market •
3-month
6-month
1-year
Auction average • •
3-month
6-month
1-year
21
22
23
24
25
26
27
28
Constant
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
15
16
17
3.52
3.25
paper3-5,6
3
4
6
7
8
5.69
5.45
U.S. TREASURY NOTES AND BONDS
maturities12
Composite
29 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS
Moody's
series13
30
31 Baa
32 Bond Buyer series
CORPORATE BONDS
33 Seasoned issues, all industries 15
34
35
36
37
38
Rating group
Aaa
Aa
A
Baa
A-rated, recently offered utility bonds 16
MEMO
Dividend-price
ratio17
39 Preferred stocks
40 Common stocks
1. The daily effective federal funds rate is a weighted average of rates on
trades through New York brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday
of the current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. An average of offering rates on commercial paper placed by several leading
dealers for firms whose bond rating is AA or the equivalent.
7. An average of offering rates on paper directly placed by finance companies.
8. Representative closing yields for acceptances of the highest-rated money
center banks.
9. An average of dealer offering rates on nationally traded certificates of
deposit.
10. Bid rates for Eurodollar deposits at 11:00 a.m. London time. Data are for
indication purposes only.
11. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.
12. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
13. General obligations based on Thursday figures; M o o d y ' s Investors Service.
14. General obligations only, with twenty years to maturity, issued by twenty
state and local governmental units of mixed quality. Based on figures for
Thursday.
15. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently offered, A-rated utility bonds with a thirty-year maturity and five
years of call protection. Weekly data are based on Friday quotations.
17. Standard & Poor's corporate series. Preferred stock ratio is based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratio is based on the 500 stocks in the price index.
NOTE. Some of the data in this table also appear in the Board's H.15 (519)
weekly and G.13 (415) monthly statistical releases. For ordering address, see
inside front cover.
Financial Markets
1.36 STOCK MARKET
All
Selected Statistics
1994
1993
Indicator
1991
1992
1993
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Prices and trading volume (averages of daily figures)
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
5
Finance
206.35
258.16
173.97
92.64
150.84
229.00
284.26
201.02
99.48
179.29
249.71
300.10
242.68
114.55
216.55
247.16
298.78
234.30
113.27
209.75
247.85
295.34
238.30
116.27
218.89
251.93
298.83
250.82
118.72
224.96
254.86
300.92
247.74
122.32
229.35
257.53
306.61
254.04
120.49
228.18
255.93
310.84
262.96
115.08
214.08
257.73
313.22
268.11
114.97
216.00
262.11
320.92
278.29
112.67
218.71
261.97
322.41
276.67
116.22
217.12
6 Standard & Poor's Corporation
(1941-43 = 10)'
376.20
415.75
451.63
448.06
447.29
454.13
459.24
463.90
462.89
465.95
472.99
471.58
7 American Stock Exchange
(Aug. 31, 1973 = 5 0 ?
360.32
391.28
438.77
436.13
434.99
444.75
454.91
472.73
472.41
465.95
481.14
476.25
179,411
12,486
202,558
14,171
263,374
n.a.
250,230
17,753
247,574
17,744
247,324
19,352
261,770
18,889
280,503
21,279
277,886
18,436
259,457
17,461
313,223
19,211
307,269
19,630
Volume of trading (thousands
8 New York Stock Exchange
9 American Stock Exchange
of shares)
Customer financing (millions of dollars, end-of-period balances)
10 Margin credit at broker-dealers
36,660
43,990
60,310
49,550
49,080
52,760
53,700
56,690
59,760
60,310
61,250
62,020
Free credit balances at brokers4
11 Margin accounts
12 Cash accounts
8,290
19,255
8,970
22,510
12,360
27,715
9,820
22,625
9,585
21,475
9,480
21,915
10,030
23,170
10,270
22,450
10,940
23,560
12,360
27,715
12,125
26,020
12,890
25,665
Margin requirements (percent of market value and effective date) 5
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. On July 5, 1983, the American Stock Exchange rebased its index, effectively
cutting previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at brokerdealers has included credit extended against stocks, convertible bonds, stocks
acquired through the exercise of subscription rights, corporate bonds, and
government securities. Separate reporting of data for margin stocks, convertible
bonds, and subscription issues was discontinued in April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to brokers and are subject to withdrawal by customers on demand.
5. New series since June 1984.
6. These requirements, stated in regulations adopted by the Board of Governors pursuant to the Securities Exchange Act of 1934, limit the amount of credit
that can be used to purchase and carry "margin securities" (as defined in the
regulations) when such credit is collateralized by securities. Margin requirements
Jan. 3, 1974
50
50
50
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 o r
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
Effective June 8, 1988, margins were set to be the price of the option plus 20
percent of the market value of the stock underlying the option (or 15 percent in the
case of stock-index options).
A28
Domestic Financial Statistics • May 1994
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Fiscal year
Calendar year
Type of account or operation
U.S. budget1
1 Receipts, total
2
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
7 Surplus or deficit ( - ) , total
8
On-budget
9
Off-budget
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase ( - ) ) . . .
12 Other
MEMO
13 Treasury operating balance (level, end of
period)
14
Federal Reserve Banks
15
Tax and loan accounts
1992
1993
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
127,485r
98,625 r
28,860
118,921r
90,790*
28,130
8,565
7,835
730
78,668
55,864
22,804
124,090
100,568
23,523
-45,422
-44,704
-719
83,107
58,700
24,407
121,488
96,724
24,764
-38,381
-38,024
-357
125,416
99,722
25,694
133,667
121,985
11,682
-8,252
-22,263
14,012
122,968
94,398
28,570
107,355
83,164
24,191
15,613
11,234
4,379
72,940
46,945
25,995
114,573
88,655
25,918
-41,633
-41,710
77
1,054,264
760,380
293,885
1,323,785
1,082,098
241,687
-269,521
-321,719
52,198
1,090,453
788,027
302,426
1,380,794
1,128,455
252,339
-290,340
-340,428
50,087
l,I53,209 r
841,275 r
311,934
l,407,892 r
1,141,880*
266,012
-254,684
-300,606
45,922
276,802
-1,329
-5,952
310,918
-17,305
-3,273
248,619
6,283
-218
-9,346
-11,713
12,494
4,255
33,646
7,521
71,028
-13,450
-19,197
13,995
-17,413
11,670
-6,933
-8,089
-591
31,633
19,666
-9,666
41,484
7,928
33,556
58,789
24,586
34,203
52,506
17,289
35,217
52,506
17,289
35,217
18,860
6,032
12,828
32,310
6,334
25,977
49,723
14,809
34,914
57,812
21,541
36,271
38,146
4,886
33,259
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the F F B to finance their programs. The act has also moved two
social security trust funds, (federal old-age survivors insurance and federal
disability insurance) off-budget. The Postal Service is included as an off-budget
item in the Monthly Treasury Statement beginning in 1990.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota
in the International Monetary Fund (IMF); loans to the I M F ; other cash and
1994
1993
1991
monetary assets; accrued interest payable to the public; allocations of SDRs;
deposit funds; miscellaneous liability (including checks outstanding) and asset
accounts; seigniorage; increment on gold; net gain or loss for U.S. currency
valuation adjustment; net gain or loss for I M F loan-valuation adjustment; and
profit on sale of gold.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government and Office of Management and
Budget, Budget of the U.S.
Government.
Federal Finance
A29
1.39 U.S. BUDGET RECEIPTS AND OUTLAYS 1
Millions of dollars
Calendar year
Fiscal year
Source or type
1992
1993
HI
HI
H2
Jan.
Feb.
RECEIPTS
1 All sources
2 Individual income taxes, net
3
Withheld
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
contributions
11
Self-employment taxes and
contributions
12
Unemployment insurance
13
Other net receipts 4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 5
1,090,453
l,153,209 r
560,318
540,484 r
593,212 r
582,044 r
125,416
122,968
72,940
475,964
408,352
30
149,342
81,760
509,680
430,427
28
154,772
75,546
236,576
198,868
20
110,995
73,308
246,938
215,584
39,288
7,942
255,556
209,908 r
25
113,488r
67,468
262,073
228,429
2
41,765
8,114
54.183
51.184
0
3,501
502
74,167
36,838
1
37,798
470
28,107
37,335
10
1,151
10,388
117,951
17,680
131,548
14,027
61,682
9,403
58,022
7,219
69,044
7,198
68,266
6,514
28,%3
725
4,761
844
2,888
1,294
413,689
428,300
224,569
192,599
227,177
206,174
33,954
36,983
35,989
385,491
396,939
208,110
180,758
208,776
192,749
33,273
35,831
32,957
24,421
23,410
4,788
20,604
26,556
4,805
20,434
14,070
2,389
3,988
9,397
2,445
16,270
16,074
2,326
4,335
11,010
2,417
0
259
423
-1,589
794
358
1,577
2,664
367
45,569
17,359
11,143
26,459
48,057
18,802
12,577
18,273r
22,389
8,146
5,701
10,658
23,456
9,497
5,733
11,458r
23,398
8,860
6,494
9,879*
25,994
10,215
6,617
9,216 r
4,695
1,584
1,179
1,582
4,011
1,526
1,105
1,260
3,249
1,419
1,093
1,491
l,380,794 r
l,407,892 r
704,266
723,527 r
673,340 r
728,1W
133,667
107,355
114,573
290,590
17,175
17,055
4,445
20,088
20,257
147,065
8,540
7,951
1,442
8,594
7,526
155,231
9,916
8,521
3,109
11,467
8,852
140,535
6,565
7,9%
2,462
8,588
11,824
146,177
10,534
8,904
1,641
11,077
7,335
26,809
548
1,496
385
1,567
3,074
18,861
1,103
1,299
465
1,447
1,122
21,9%
948
1,269
159
1,449
1,817
10
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
298,350
16,107
16,409
4,499
20,025
15,205
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development . .
Education, training, employment, and
social services
10,118
33,333
6,838
-23,532
35,238
10,395
15,615
15,651
3,903
-7,697
18,425
4,464
-15,112
16,077
4,935
-1,724
20,375
5,606
1,126
3,714
772
-1,124
2,503
906
-4,608
2,784
445
45,250
48,857 r
23,767
21,241
24,042 r
25,515
4,455
2,693
2,666
29 Health
30 Social security and Medicare
31 Income security
89,497
406,569
196,891
99,249
435,137
207,788 r
44,164
205,500
104,537
47,232
232,109
98,382
49,882
195,933
108,342r
52,631
223,735
103,163
8,906
39,720
19,771
7,665
36,009
16,1%
8,229
37,222
22,466
32
33
34
35
36
34,133
14,426
12,945
199,439
-39,280
35,715
15,001r
13,039
198,870
-37,386
15,597
7,435
5,050
100,161
-18,229
18,561
7,238
8,223
98,692
16,385
7,481 r
5,205
99,635
-17,035
19,848
7,448
6,565
99,%3
-20,407
4,469
1,244
1,708
16,638
-2,737
2,151
1,210
669
17,095
-2,914
3,135
1,105
782
15,524
-2,815
Veterans benefits and services
Administration of justice
General government
Net interest 6
1
Undistributed offsetting receipts'
1. Functional details do not sum to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
total for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
-20,628
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Includes interest received by trust funds.
7. Consists of rents and royalties for the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1994.
A30
DomesticNonfinancialStatistics • May 1994
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1991
1992
1993
Item
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
3,820
3,897
4,001
4,083
4,196
4,250
4,373
4,436
n.a.
3,802
2,833
969
3,881
2,918
964
3,985
2,977
1,008
4,065
3,048
1,016
4,177
3,129
1,048
4,231
3,188
1,043
4,352
3,252
1,100
4,412
3,295
1,117
4,536
n.a.
n.a.
19
19
0
16
16
0
16
16
0
18
18
0
19
19
0
20
20
0
21
21
0
25
25
0
3,707
3,784
3,891
3,973
4,086
4,140
4,256
4,316
4,446
9 Public debt securities
10 Other debt 1
3,706
0
3,783
0
3,890
0
3,972
0
4,085
0
4,139
0
4,256
0
4,315
0
4,445
0
MEMO
11 Statutory debt limit
4,145
4,145
4,145
4,145
4,145
4,145
4,370
4,900
4,900
1 Federal debt outstanding
2 Public debt securities
3
Held by public
4
Held by agencies
5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
1. Consists of guaranteed debt of U.S. Treasury and other federal agencies,
specified participation certificates, notes to international lending organizations,
and District of Columbia stadium bonds.
1.41 GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCES. U.S. Department of the Treasury, Monthly
Debt of the United States and Treasury Bulletin.
Statement
n.a.
n.a.
n.a.
of the Public
Types and Ownership
Billions of dollars, end of period
1993
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues
Government
Public
Savings bonds and notes
Government account series
Non-interest-bearing
By holder4
15 U.S. Treasury and other federal agencies and trust funds
16 Federal Reserve Banks
17 Private investors
18
Commercial banks
Money market funds
19
Insurance companies
20
Other companies
21
22
State and local treasuries
Individuals
Savings bonds
23
24
Other securities
25
Foreign and international 5
Other miscellaneous investors 6
26
1990
1992
1993
Ql
Q2
Q3
Q4
3,364.8
3,801.7
4,177.0
4,535.7
4,230.6
4,352.0
4,411.5
4,535.7
3,362.0
2,195.8
527.4
1,265.2
388.2
1,166.2
160.8
43.5
43.5
.0
124.1
813.8
2.8
3,798.9
2,471.6
590.4
1,430.8
435.5
1,327.2
159.7
41.9
41.9
.0
135.9
959.2
2.8
4,173.9
2,754.1
657.7
1,608.9
472.5
1,419.8
153.5
37.4
37.4
.0
155.0
1,043.5
3.1
4,532.3
2,989.5
714.6
1,764.0
495.9
1,542.9
149.5
43.5
43.5
.0
169.4
1,150.0
3.4
4,227.6
2,807.1
659.9
1,652.1
480.2
1,420.5
151.6
37.0
37.0
.0
161.4
1,040.0
3.0
4,349.0
2,860.6
659.3
1,698.7
487.6
1,488.4
152.8
43.0
43.0
.0
164.4
1,097.8
2.9
4,408.6
2,904.9
658.4
1,734.2
497.4
1,503.7
149.5
42.5
42.5
.0
167.0
1,114.3
2.9
4,532.3
2,989.5
714.6
1,764.0
495.9
1,542.9
149.5
43.5
43.5
.0
169.4
1,150.0
3.4
828.3
259.8
2,288.3
171.5
45.4
142.0
108.9
490.4
968.7
281.8
2,563.2
233.4
80.0
168.7
150.8
520.3
1,047.8
302.5
2,839.9
294.0
79.4
197.5
192.5
534.8
1,043.2
305.2
2,895.0
310.0
77.7
205.0
199.3
541.0
1,099.8
328.2
2,938.4
305.9
76.2
208.1
206.1
553.9
1,116.7
325.7
2,983.0
306.0
75.2
210.0
215.6
558.0
126.2
107.6
458.4
637.7
138.1
125.8
491.8
651.3
157.3
131.9
549.7
702.4
163.6
134.1
565.5
698.8
166.5
136.4
568.2
717.0
169.1
136.7
592.3
720.0
1. Includes (not shown separately) securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
2. Nonmarketable series denominated in dollars, and series denominated in
foreign currency held by foreigners.
3. Held almost entirely by U.S. Treasury and other federal agencies and trust
funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
1991
n. a.
n.a.
5. Consists of investments of foreign balances and international accounts in the
United States.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally sponsored agencies.
SOURCES. U.S. Treasury Department, data by type of security, Monthly
Statement of the Public Debt of the United States; data by holder, Treasury
Bulletin.
Federal Finance
1.42 U.S. GOVERNMENT SECURITIES DEALERS
A31
Transactions1
Millions of dollars, daily averages
1993
1994
1993,
week
ending
Dec. 29
Jan. 5
Jan. 12
Item
Nov.
Dec."
Jan.
47,256
1994, week ending
Jan. 19
Jan. 26
Feb. 2
Feb. 9
Feb. 16
Feb. 23
IMMEDIATE TRANSACTIONS2
By type of security
U.S. Treasury securities
1 Bills
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Coupon securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency securities
Debt, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed
Pass-throughs
All others 7 !
By type of counterparty
Primary dealers and brokers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
Customers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
42,139
51,655
31,220
43,782
56,310
50,809
49,149
57,354
65,174
44,202
50,294
52,959
45,242
26,974 r
17,995
37,291
29,891
16,803
13,247
52,519
41,480
26,382
18,752
22,716
16,731
9,275
7,553
33,911
23,403
15,890
13,235
56,702
47,976
28,728
23,445
49,813
42,262
27,118
15,676
58,268
42,305
24,580
17,682
59,084
46,051
34,738
23,359
95,688
55,514
44,273
21,878
50,708
38,295
29,713
24,767
66,889
52,094
31,114
21,965
9,971
718
396
9,999
531
466
11,346
715
558
10,248
303
212
11,056
326
447
11,091
1,359
530
10,457
536
642
12,454
587
617
11,695
540
480
12,040
575
607
9,213
845
581
11,248
781
414
22,489
3,064
19,332
2,771
25,595
3,657
12,334"
1,523
22,071
2,878
33,727
4,423
26,544
2,730
22,339
4,493
19,409
3,308
23,529
3,414
27,212
3,669
18,991
4,361
120,636
84,926
117,681
50,896
77,673
130,373
114,528
120,495
137,100
180,207
118,517
139,745
1,623
10,965
1,308
9,057
1,763
12,881
1,939
11,032
1,675
16,293
1,477
12,281
2,054
13,400
1,723
9,178
1,711
9,532
1,285
12,938
1,753
10,895
69,791 r
54,446
73,107
9,461
14,589
9,688
13,045
10,856
16,370
915
6,459"
52,549
82,787
71,150
71,490
83,486
102,320
69,168
82,611
9,848
7,399"
9,890
13,917
11,304
21,857
10,158
16,992
11,604
13,432
10,992
13,539
11,511
17,411
9,353
17,943
10,691
12,457
36,599
FUTURES AND FORWARD
TRANSACTIONS4
By type of deliverable security
U.S. Treasury securities
17 Bills
Coupon securities, by maturity
18
Less than 3.5 years
19
3.5 to 7.5 years
20
7.5 to 15 years
21
15 years or more
Federal agency securities
Debt, by maturity
22
Less than 3.5 years
23
3.5 to 7.5 years
24
7.5 years or more
Mortgage-backed
Pass-throughs
25
26
Others 3
2,746
1,740
2,250
792
2,414
2,611
1,348
1,327
4,523
3,007
1,827
2,357
2,276
2,158
4,192
12,704
1,756
1,809
2,930
8,686
2,229
1,905
3,238
11,933
1,200
858
1,540
4,355"
1,626
1,373
2,590
9,460
2,800
2,184
3,509
13,298
1,899
1,465
3,390
10,953
2,022
2,540
2,984
11,814
2,774
1,647
3,604
13,964
3,071
2,540
5,151
14,807
2,306
2,217
3,562
11,021
3,806
3,593
6,043
14,876
77
93
29
29
49
83
123
127
70
49
66
9
139
33
269
84
98
9
105
93
30
148
77
73
159
411
32
86
142
11
247
185
287
418
236
439
26,164
1,919"
17,807
1,746
26,040
1,885
7,002"
1,893
18,660
1,573
35,613
1,454
25,260
1,457
20,949
2,365
27,249
2,826
36,883
3,281
25,163
1,871
13,190
1,718
2,182 r
724r
870"
2,408 r
1,662
360
768
1,372
2,216
808
1,262
2,086
1,258
561"
712"
715"
1,900
417
710
2,642
3,004
1,338
1,257
2,265
1,991
767
2,097
1,799
1,751
460
821
2,158
2,370
961
1,168
1,589
3,343
743
1,145
2,370
2,578
848
1,633
2,522
4,679
1,116
2,450
3,421
94 f
548
954
923
1,510
735
761
742
1,212
674
821
OPTIONS TRANSACTIONS5
27
28
29
30
31
By type of underlying security
U.S. Treasury, coupon
securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency, mortgagebacked securities
Pass-throughs
199
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 are based on the number of trading
days in the period. Immediate, forward, and futures transactions are reported at
principal value, which does not include accrued interest; options transactions are
reported at the face value of the underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. 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 agency
securities include purchases and sales for which delivery is scheduled in thirty business
days or less. Stripped securities are reported at market value by maturity of coupon or
corpus.
3. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest-only securities (IOs),
and principal-only securities (POs).
4. Futures transactions are standardized agreements arranged on an exchange.
Forward transactions are agreements made in the over-the-counter market that
specify delayed delivery. All futures transactions are included regardless of time
to delivery. Forward contracts for U.S. Treasury securities and federal agency
debt securities are included when the time to delivery is more than five business
days. Forward contracts for mortgage-backed agency securities are included
when the time to delivery is more than thirty business days.
5. Options transactions are purchases or sales of put-and-call options, whether
arranged on an organized exchange or in the over-the-counter market, and include
options on futures contracts on U.S. Treasury and federal agency securities.
NOTE. In tables 1.42 and 1.43, " n . a . " indicates that data are not published
because of insufficient activity.
Data for several types of options transactions—U.S. Treasury securities, bills;
Federal agency securities, debt; and federal agency securities, mortgage-backed,
other than pass-throughs—are no longer available because activity is insufficient.
A32
DomesticNonfinancialStatistics • May 1994
1.43 U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing1
Millions of dollars
1993
1994
1993,
week
ending
Jan.
Dec. 29
Item
Nov.
Dec.
1994, week ending
Jan. 5
Jan. 12
Jan. 19
Jan. 26
Feb. 2
Feb. 9
Feb. 16
Positions 2
NET IMMEDIATE POSITIONS3
1
2
3
4
5
6
7
8
9
10
11
12
13
By type of security
U.S. Treasury securities
Bills
Coupon securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency securities
Debt, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed
Pass-throughs
All others
Other money market instruments
Certificates of deposit
Commercial paper
Bankers acceptances
16,062
15,015
6,758
9,657
8,922
8,475
10,200
5,127
-343
7,416
5,718
-3,830
-24,582
-890
3,050
-7,939
-18,634
-1,907
777
-4,873
-17,706
-2,197
173
-4,592
-16,051
-1,895
3,421
-7,904
-14,691
-3,227
-560
-3,562
-16,990
-2,241
1,090
-7,940
-17,198
-2,803
-817
-100
-18,475
108
-2,748
-6,068
-21,360
-3,481
5,100
-6,720
-23,617
1,617
3,133
-8,940
-22,428
-3,004
6,983
9,381
3,189
4,089
8,277
3,368
4,550
10,274
2,877
4,975
6,9%
3,197
4,738
7,348
2,763
4,657
7,648
3,247
5,365
9,206
2,684
5,683
12,135
2,600
4,415
15,768
3,129
4,539
12,975
2,857
4,185
11,561
2,958
3,551
44,808*
34,467r
39,223
29,892
48,652
31,249
39,905
28,108
36,295
33,083
51,597
32,235
51,938
31,241
51,163
30,616
48,771
28,932
54,981
28,439
52,310
27,052
3,428
7,595
1,432
3,490
7,584
1,186
3,675
6,263
984
3,557
6,758
1,132
4,167
5,667
944
3,028
4,591
918
4,216
6,612
1,241
3,274
5,959
837
3,894
9,135
964
4,161
8,248
817
4,250
7,683
946
FUTURES AND FORWARD POSITIONS5
By type of deliverable security
U.S. Treasury securities
14 BUls
Coupon securities, by maturity
15
Less than 3.5 years
3.5 to 7.5 years
16
7.5 to 15 years
17
18
15 years or more
Federal agency securities
Debt, by maturity
19
Less than 3.5 years
20
3.5 to 7.5 years
7.5 years or more
21
Mortgage-backed
22
Pass-throughs
All others
23
24 Certificates of deposit
4,475
205
-2,769
2,149
2,409
-3,743
-3,429
-3,939
-4,021
-2,527
-2,479
-952
1,646
10,952
-1,670
-1,448
556
8,422
-3,984
-1,037
1,618
5,843
-3,580
-802
-446
7,855
-5,745
328
2,298
9,690
-607
-1,709
1,248
5,906
-5,716
-2,041
1,933
6,081
-4,584
-1,194
2,583
4,466
-1,605
166
-335
3,504
-4,924
-2,104
942
7,821
-6,042
-1,270
2,879
7,695
-6,411
15
68
-8
34
90
48
247
303
-93
41
354
80
358
309
6
291
245
29
419
541
-549
70
240
78
80
134
38
2
71
6
16
169
621
-21,894 r
2,508 r
-226,180
-10,903
1,636
-227,414
-27,318
2,063
-225,011
-8,%5
3,526
-228,009
-10,830
-198
-215,709
-29,710
770
-216,323
-29,595
354
-205,719
-30,468
2,160
-254,569
-32,860
8,394
-232,103
-40,939
8,614
-258,194
-38,723
8,795
-243,572
Financing 6
Reverse repurchase agreements
25 Overnight and continuing
26 Term
228,498 r
407,032 r
226,529
392,777*
250,861
401,867
214,327
389,968*
233,887
364,009
253,989
406,009
255,207
407,166
243,717
424,640
267,375
394,628
265,299
449,254
280,878
3%,888
Repurchase agreements
27 Overnight and continuing
28 Term
435,112 r
378,740*
441,518
368,885
461,215
372,657
416,722
382,284*
438,703
313,183
449,875
372,708
478,024
378,689
454,918
413,175
484,886
366,891
455,818
423,858
503,188
374,698
Securities borrowed
29 Overnight and continuing
30 Term
135,983r
47,183 r
139,232*
47,034
142,400
50,216
133,929
46,039
139,167
46,990
140,740
49,881
143,646
49,870
144,950
54,346
142,645
48,611
143,019
47,102
144,816
45,470
Securities loaned
31 Overnight and continuing
32 Term
6,075
2,556
5,564*
2,386
6,217
1,535
6,623
1,701
5,694
1,428
5,904
1,349
6,608
1,392
6,336
1,731
6,467
1,826
6,143
1,527
7,131
1,882
Collateralized loans
33 Overnight and continuing
13,409*
16,326*
16,169
18,403
20,109
19,519
14,661
11,939
15,574
16,176
17,752
MEMO; Matched book 7
Reverse repurchase agreements
34 Overnight and continuing
35 Term
156,898r
361,656 r
153,280
345,268
175,650
361,748
141,053
339,550
163,828
324,300
175,255
365,598
176,176
368,183
173,928
385,707
189,701
351,253
174,113
395,473
188,274
347,635
Repurchase agreements
36 Overnight and continuing
37 Term
220,125*
285,299*
210,901
275,439
238,867
281,109
195,575
282,924
228,655
234,808
236,862
285,927
243,076
284,351
239,476
306,251
245,142
280,929
232,060
331,767
240,016
283,985
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.
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 that settle
on the issue date of offering. Net immediate positions of mortgage-backed agency
securities include securities purchased or sold that have been delivered or are
scheduled to be delivered in thirty business days or less.
4. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest-only securities (IOs),
and principal-only securities (POs).
5. Futures positions reflect standardized agreements arranged on an exchange.
Forward positions reflect agreements made in the over-the-counter market that
FRASER
specify delayed delivery. All futures positions are included regardless of time to
Digitized for
delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days.
Forward contracts for mortgage-backed agency securities are included when the
time to delivery is more than thirty business days.
6. Overnight financing refers to agreements made on one business day that
mature on the next business day; continuing contracts are agreements that remain
in effect for more than one business day but have no specific maturity and can be
terminated without advance notice by either party; term agreements have a fixed
maturity of more than one business day .
7. Matched-book data reflect financial intermediation activity in which the
borrowing and lending transactions are matched. Matched-book data are included
in the financing breakdowns given above. The reverse repurchase and repurchase
numbers are not always equal because of the " m a t c h i n g " of securities of different
values or different types of collateralization.
NOTE. Data for futures and forward commercial paper and bankers acceptances and
for term financing of collateralized loans are no longer available because of insufficient
activity.
Federal Finance
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A3 3
Debt Outstanding
Millions of dollars, end of period
1993
Agency
1989
1990
1991
1992
Aug.
Sept.
Oct.
Nov.
Dec.
411,805
434,668
442,772
483,970
544,642
0
0
0
0
35,664
7
10,985
328
42,159
7
11,376
393
41,035
7
9,809
397
41,829
7
7,208
374
44,816
7
6,258
154
43,753
7
5,801
213
43,7%
7
5,801
243 r
44,055
7
5,801
255
45,194
7
5,315
255
0
6,445
17,899
0
0
6,948
23,435
0
0
8,421
22,401
0
0
10,660
23,580
0
0
10,182
28,215
0
0
9,732
28,000
0
0
9,732
28,016
0
0
9,732
28,260
0
0
9,732
29,885
0
10 Federally sponsored agencies 7
11
Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
13
14
Farm Credit Banks 8
15
Student Loan Marketing Association
Financing Corporation
16
17
Farm Credit Financial Assistance Corporation 1 1
Resolution Funding Corporation 1 2
18
375,428
136,108
26,148
116,064
54,864
28,705
8,170
847
4,522
392,509
117,895
30,941
123,403
53,590
34,194
8,170
1,261
23,055
401,737
107,543
30,262
133,937
52,199
38,319
8,170
1,261
29,9%
442,141
114,733
29,631
166,300
51,910
39,650
8,170
1,261
29,9%
499,826
129,808
55,421
184,924
51,406
38,397
8,170
1,261
29,9%
0
132,651
52,702
195,786
51,636
38,795
8,170
1,261
29,9%
0
133,365
63,427
193,925
51,759
38,790
8,170
1,261
29,9%
0
139,364
56,809
195,165
51,861
40,840
8,170
1,261
29,9%
0
141,577
49,993
201,112
53,123
39,784
8,170
1,261
29,9%
MEMO
19 Federal Financing Bank debt 1 3
134,873
179,083
185,576
154,994
128,616
129,329
127,348
126,490
128,187
10,979
6,195
4,880
16,519
0
11,370
6,698
4,850
14,055
0
9,803
8,201
4,820
10,725
0
7,202
10,440
4,790
6,975
0
6,252
10,182
4,790
6,325
0
5,795
9,732
4,790
6,325
0
5,795
9,732
4,760
6,325
0
5,795
9,732
4,760
6,325
0
5,309
9,732
4,760
6,325
0
53,311
19,265
23,724
52,324
18,890
70,896
48,534
18,562
84,931
42,979
18,172
64,436
38,619
17,897
44,551
38,619
17,653
46,415
38,619
17,561
44,556
38,619
17,561
43,698
38,619
17,578
45,864
1 Federal and federally sponsored agencies
2 Federal agencies
Defense Department 1
3
4
Export-Import Bank 2 , 3
5
Federal Housing Administration
Government National Mortgage Association certificates of
6
participation
7
Postal Service 6
8
Tennessee Valley Authority
9
United States Railway Association
20
21
22
23
24
Lending to federal and federally sponsored
Export-Import Bank
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
Other lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
agencies
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal year 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration, the Department of Health, Education, and Welfare, the Department of
Housing and Urban Development, the Small Business Administration, and the
Veterans' Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown on line 17.
9. Before late 1982, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 22.
10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January
1988 to provide assistance to the Farm Credit System, undertook its first
borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform, Recovery and Enforcement Act of 1989, undertook its first
borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Because F F B
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
14. Includes F F B purchases of agency assets and guaranteed loans; the latter
are loans guaranteed by numerous agencies, with the amounts guaranteed by any
one agency generally being small. The Farmers Home Administration entry
consists exclusively of agency assets, whereas the Rural Electrification Administration entry consists of both agency assets and guaranteed loans.
A34
DomesticNonfinancialStatistics • May 1994
1.45 NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1994
1993
Type of issue or issuer,
or use
1991
1 AH issues, new and refunding 1
1992
1993
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
154,402
215,191
279,945
24,087
24,438
23,504
21,900
18,094
24,520
16,102
12,918
By type of issue
2 General obligation
3 Revenue
55,100
99,302
78,611
136,580
90,599
189,346
8,537
15,550
6,414
18,024
5,884
17,620
7,495
14,405
6,422
11,672
6,542
17,978
4,622
11,000
4,365
8,553
By type of issuer
4 State
5 Special district or statutory authority
6 Municipality, county, or township
24,939
80,614
48,849
25,295
129,686
60,210
n.a.
n.a.
n.a.
2,944
12,398
8,616
2,319
13,769
8,307
2,758
13,113
7,476
3,216
9,875
8,418
885
10,992
4,528
1,265
16,485
6,770
1,235
10,025
4,362
921
10,263
3,514
116,953
120,272
91,434
8,751
8,001
8,759
7,261
6,734
9,543
5,418
8,268
21,121
13,395
21,039
25,648
8,376
30,275
22,071
17,334
20,058
21,796
5,424
33,589
17,098
9,571
11,802
n.a.
6,381
29,519
1,723
653
922
1,555
429
3,453
1,883
1,062
1,646
681
212
2,544
1,886
789
1,255
2,199
329
2,362
547
304
593
1,764
518
3,737
1,416
979
687
n.a.
673
1,820
1,227
429
1,454
2,171
1,272
2,990
1,634
305
325
n.a.
488
1,644
2,232
1,111
1,281
1,685
226
1,733
7 Issues for new capital
8
9
10
11
12
13
By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.
1.46 NEW SECURITY ISSUES
SOURCES. Securities Data Company beginning January 1993;
Dealer's Digest before then.
Investment
U.S. Corporations
Millions of dollars
1994
1993
Type of issue, offering,
or issuer
1991
1992
1993
June
July
Aug.
Sept.*
Oct.*
Nov.*
Dec.
Jan.
465,246 r
559,729*
n.a.
66,164*
49,661*
53,513*
64,875
56,491
54,907
45,135
50,331
389,822
471,404*
n.a.
56,370*
40,065*
44,246*
54,182
45,956
43,313
34,604
44,500
286,930
74,930
27,962
377,960*
65,853
27,591
488,895
n.a.
41,533
51,943*
n.a.
4,427*
37,392*
n.a.
2,673
40,447*
n.a.
3,799
49,281
n.a.
4,900
42,805
n.a.
3,151
39,519
n.a.
3,794
32,947
n.a.
1,657
40,000
n.a.
4,500
86,628
36,666
13,598
23,944 r
9,431
219,555 r
82,058*
43,043*
9,979
48,055
15,394
272,875*
67,411
37,873
8,234
52,742
29,040
335,127
8,707*
2,530*
948
5,874
2,473
35,838*
2,498*
5,452*
611
5,797*
2,331
23,376*
6,132
2,331
723
3,474*
2,979
28,607
4,095
2,288
288
5,163
2,237
40,110
3,273
6,466
1,416
2,585
2,991
29,227
3,364
3,078
687
1,763
1,015
33,407
3,068
2,348
1,045
2,336
2,001
23,806
3,954
3,294
693
2,726
2,592
31,241
12 Stocks 2
75,424
88,325
110,647
9,794
9,596*
9,267
10,693
10,535
11,594
10,531
5,831
By type of offering
13 Public preferred
14 Common
15 Private placement
17,085
48,230
10,109
21,339
57,118
9,867
20,533
90,559
n.a.
876
8,918
n.a.
1,913*
7,683
n.a.
3,319
5,948
n.a.
1,358
9,336
n.a.
2,549
7,987
n.a.
1,385
10,209
n.a.
650
9,881
n.a.
1,592
4,239
n.a.
24,111
19,418
2,439
3,474
475
25,507
22,723
20,231
2,595
6,532
2,366
33,879
22,271
25,761
2,237
7,050
3,439
49,889
1,982
2,025
168
893
65
4,660
1,618*
2,525
114
495
n.a.
4,844
1,961
1,457
466
582
115
4,675
2,274
2,242
153
908
248
4,666
2,121
1,842
128
1,103
18
5,323
2,169
3,061
221
371
1,074
4,486
2,267
1,970
162
129
1,603
4,381
1,556
1,484
68
293
n.a.
2,430
1 All issues'
2 Bonds
2
By type of offering
3 Public, domestic
4 Private placement, domestic 5 Sold abroad
6
7
8
9
10
11
16
17
18
19
20
21
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures represent gross proceeds of issues maturing in more than one year;
they are the principal amount or number of units calculated by multiplying by the
offering price. Figures exclude secondary offerings, employee stock plans,
investment companies other than closed-end, intracorporate transactions, equities sold abroad, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.
2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCES. IDD Information Services, Inc., Securities Data Company, and the
Board of Governors of the Federal Reserve System.
Securities Market and Corporate Finance
A35
Net Sales and Assets 1
1.47 OPEN-END INVESTMENT COMPANIES
Millions of dollars
1994
1993
Item
1992
1993
June
July
Aug.
Sept.
Oct.
Nov/
Dec.
Jan.
1 Sales of own shares 2
647,055
n.a.
68,373
72,503
73,032
69,938
74,490
72,865
89,775
98,630
2 Redemptions of own shares
3 Net sales 3
447,140
199,915
n.a.
n.a.
46,923
21,650
44,922
27,581
46,382
26,650
49,270
20,667
47,168
27,322
51,306
21,559
62,764
27,011
61,944
36,686
1,056,310
n.a.
1,255,377
1,284,842
1,343,920
1,370,654
1,411,628
1,416,841
1,510,047
1,572,044
73,999
982,311
n.a.
n.a.
84,177
1,171,200
93,345
1,191,497
92,771
1,251,149
96,848
1,273,807
104,301
1,307,327
103,352
1,303,489
100,209
1,409,838
109,780
1,462,264
4 Assets 4
5 Cash 5
6 Other
4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership,
which comprises substantially all open-end investment companies registered with
the Securities and Exchange Commission. Data reflect underwritings of new
companies.
1. Data on sales and redemptions exclude money market mutual funds but
include limited-maturity municipal bond funds. Data on asset positions exclude
both money market mutual funds and limited-maturity municipal bond funds.
2. Includes reinvestment of net income dividends. Excludes reinvestment of
capital gains distributions and share issue of conversions from one fund to another
in the same group.
3. Excludes sales and redemptions resulting from transfers of shares into or out
of money market mutual funds within the same fund family.
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1993
1992
Account
1992
1991
1 Profits with inventory valuation and
capital consumption adjustment
2 Profits before taxes
3 Profits tax liability
4 Profits after taxes
5
Dividends
6
Undistributed profits
7 Inventory valuation
8 Capital consumption adjustment
1993
Q1
Q2
Q3
Q4
Ql
Q2
Q3
Q4
369.5
362.3
129.8
232.5
137.4
95.2
407.2
395.4
146.3
249.1
150.5
98.6
n.a.
n.a.
n.a.
n.a.
169.0
n.a.
409.9
404.3
147.0
257.3
138.0
119.3
411.7
409.5
153.0
256.5
146.1
110.4
367.5
357.9
130.1
227.8
155.2
72.7
439.5
409.9
155.0
254.9
162.9
92.0
432.1
419.8
160.9
258.9
167.5
91.4
458.1
445.6
173.3
272.3
168.5
103.9
468.5
443.8
169.5
274.3
169.7
104.6
510.5
491.0
193.6
297.4
170.3
127.3
4.9
2.2
-5.3
17.1
-7.2
24.3
-4.6
10.2
-13.7
16.0
-7.8
17.4
4.9
24.7
-12.7
25.1
-12.2
24.7
1.0
23.8
-4.3
23.9
SOURCE. U.S. Department of Commerce, Survey of Current
Business.
1.50 NONFARM BUSINESS EXPENDITURES
New Plant and Equipment
Billions of dollars; quarterly data at seasonally adjusted annual rates
1992
Industry
1 Total
nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other
1992
1993
Q2
Q3
Q4
Ql
Q2
Q3
Q4
Ql
546.60
584.64
616.50
541.41
547.40
559.24
564.13
579.79
594.11
600.53
616.38
73.32
100.69
81.49
97.97
84.93
101.34
74.07
97.91
72.09
100.77
73.30
103.56
79.11
95.94
80.88
96.21
81.99
100.18
83.99
99.53
87.50
98.72
8.88
10.13
10.84
9.20
8.98
8.47
8.89
9.10
11.14
11.37
10.83
6.67
8.93
7.04
6.20
6.83
9.34
6.21
4.45
10.25
6.32
9.65
7.19
6.70
9.69
7.52
7.04
7.60
6.97
6.00
7.30
9.17
6.00
6.54
9.04
5.91
6.92
8.88
6.90
6.57
10.26
6.32
4.64
10.53
48.22
23.99
268.84
51.82
23.17
297.69
57.00
24.42
317.05
48.35
24.29
264.46
48.17
24.01
269.46
49.57
24.50
278.24
49.92
23.59
284.21
50.51
24.04
297.46
52.74
22.88
303.47
54.11
22.19
305.61
54.16
23.62
320.06
1. Figures are amounts anticipated by business.
2. " O t h e r " consists of construction, wholesale and retail trade, finance and
insurance, personal and business services, and communication.
1994
1993
19941
SOURCE. U.S. Department of Commerce, Survey of Current
Business.
A36
DomesticNonfinancialStatistics • May 1994
1.51 DOMESTIC FINANCE COMPANIES
Assets and Liabilities1
Billions of dollars, end of period; not seasonally adjusted
1992
Account
1990
1991
1993
1992
Ql
Q2
Q3
Q4
Ql
Q2
Q3"
ASSETS
1 Accounts receivable, gross 2
2
Consumer
3
Business
4
Real estate
492.3
133.3
293.6
65.5
480.6
121.9
292.9
65.8
482.1
117.1
296.5
68.4
475.6
118.4
290.8
66.4
476.7
116.7
293.2
66.8
473.9
116.7
288.5
68.8
482.1
117.1
296.5
68.4
469.6
111.9
289.6
68.1
469.3
111.3
290.7
67.2
467.6
112.6
287.8
67.2
57.6
9.6
55.1
12.9
50.8
15.8
53.6
13.0
51.2
12.3
50.8
12.0
50.8
15.8
47.4
15.5
47.5
13.8
47.9
11.1
7 Accounts receivable, net
8 All other
425.1
113.9
412.6
149.0
415.5
150.6
409.0
145.5
413.2
139.4
411.1
146.5
415.5
150.6
406.6
155.0
408.0
156.6
408.6
169.7
9 Total assets
539.0
561.6
566.1
554.5
552.6
557.6
566.1
561.6
564.6
578.3
31.0
165.3
42.3
159.5
37.6
156.4
38.0
154.4
37.8
147.7
38.1
153.2
37.6
156.4
34.1
149.8
29.5
144.5
25.8
149.9
n.a.
n.a.
37.5
178.2
63.9
63.7
n.a.
n.a.
34.5
191.3
69.0
64.8
n.a.
n.a.
37.8
195.3
71.2
67.8
n.a.
n.a.
34.5
189.8
72.0
66.0
n.a.
n.a.
34.8
191.9
73.4
67.1
n.a.
n.a.
34.9
191.4
73.7
68.1
n.a.
n.a.
37.8
195.3
71.2
67.8
n.a.
n.a.
41.9
195.1
74.2
66.6
n.a.
n.a.
46.4
195.8
81.3
67.1
n.a.
n.a.
47.9
198.1
87.6
68.9
539.6
561.2
566.1
554.6
552.7
559.4
566.1
561.7
564.6
578.3
5 LESS: Reserves for unearned income
6
Reserves for losses
LIABILITIES AND CAPITAL
10 Bank loans
11 Commercial paper
12
13
14
15
16
17
Debt
Other short-term
Long-term
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits
18 Total liabilities and capital
1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are amounts carried on the balance sheets of finance
companies; securitized pools are not shown, as they are not on the books.
1.52 DOMESTIC FINANCE COMPANIES
2. Before deduction for unearned income and losses,
Consumer, Real Estate, and Business Credit1
Millions of dollars, amounts outstanding, end of period
1993
Type of credit
1991
1992
1994
1993
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Seasonally adjusted
1 Total
519,910
534,845
532,828
525,744
527,819
529,310
532,687"
532,828
535,567
2 Consumer
3 Real estate 2
4 Business
154,822
65,383
299,705
157,707
68,011
309,127
159,791
68,174
304,863
153,420
67,216
305,108
154,707
66,871
306,241
155,700
67,983
305,627
157,438"
68,540
306,709"
159,791
68,174
304,863
159,313
69,441
306,813
Not seasonally adjusted
5 Total
6 Consumer
7
Motor vehicles
8
Other c o n s u m e r
9
Securitized motor vehicles 4
10
Securitized other consumer
11 Real estate 2
12 Business
13
Motor vehicles
14
Retail 5
15
Wholesale 6
16
Leasing
17
Equipment
18
Retail
19
Wholesale 6
20
Leasing
21
Other business 7
22
Securitized business assets 4
23
Retail
24
Wholesale
25
Leasing
523,192
538,158
536,124
521,094
524,937
528,869
532,354"
536,124
535,138
155,713
63,415
58,522
23,166
10,610
65,760
301,719
90,613
22,957
31,216
36,440
141,399
30,962
9,671
100,766
60,900
8,807
576
5,285
2,946
158,631
57,605
59,522
29,775
11,729
68,410
311,118
87,456
19,303
29,962
38,191
151,607
32,212
8,669
110,726
57,464
14,590
1,118
8,756
4,716
160,734
55,274
62,189
34,659
8,611
68,577
306,814
90,172
16,024
31,067
43,081
148,858
33,266
8,007
107,585
51,054
16,730
1,830
9,697
5,203
154,218
55,247
56,616
32,856
9,498
67,565
299,311
84,920
17,264
25,136
42,520
146,404
33,676
8,059
104,669
53,536
14,451
1,220
8,329
4,902
155,4%
55,057
57,588
33,549
9,302
67,212
302,229
86,019
18,365
25,458
42,1%
147,905
33,789
8,113
106,004
53,861
14,444
1,168
8,529
4,747
156,712
54,324
58,278
35,212
8,898
68,425
303,732
86,129
16,599
27,144
42,386
148,357
33,357
8,091
106,909
53,%9
15,277
1,690
8,785
4,802
157,848"
55,337
59,463
34,301"
8,747
68,718
305,788"
88,510
16,723
29,260
42,526
146,703"
32,360"
7,802
106,541
53,886
16,690"
1,953"
9,407
5,330
160,734
55,274
62,189
34,659
8,611
68,577
306,814
90,172
16,024
31,067
43,081
148,858
33,266
8,007
107,585
51,054
16,730
1,830
9,697
5,203
159,186
56,509
61,427
32,924
8,325
69,385
306,568
88,377
16,965
27,975
43,437
147,915
33,109
7,9%
106,810
50,821
19,456
1,6%
12,358
5,402
1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are before deductions for unearned income and losses.
Data in this table also appear in the Board's G.20 (422) monthly statistical release.
For ordering address, see inside front cover.
2. Includes all loans secured by liens on any type of real estate, for example,
first and junior mortgages and home equity loans.
3. Includes personal cash loans, mobile home loans, and loans to purchase other
types of consumer goods such as appliances, apparel, general merchandise, and
recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
FRASER
Digitized for
5. Passenger car fleets and commercial land vehicles for which licenses are
required.
6. Credit arising from transactions between manufacturers and dealers, that is,
floor plan financing.
7. Includes loans on commercial accounts receivable, factored commercial
accounts, and receivable dealer capital; small loans used primarily for business or
farm purposes; and wholesale and lease paper for mobile homes, campers, and
travel trailers.
Real Estate
1.53 MORTGAGE MARKETS
A37
Mortgages on New Homes
Millions of dollars except as noted
1994
1993
Item
1991
1992
1993
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
Terms'
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-to-price ratio (percent)
Maturity (years)
.
Fees and charges (percent of loan amount) 2
Yield (percent per year)
6 Contract rate 1
7 Effective rate 1 , 3
8 Contract rate (HUD series) 4
155.0
114.0
75.0
26.8
1.71
158.1
118.1
76.6
25.6
1.60
163.1
123.0
78.0
26.1
1.30
158.1
122.2
78.4
26.4
1.21
155.3
120.8
78.5
26.5
1.13
169.2
128.4
78.0
26.7
1.23
174.4
134.0
79.1
26.9
1.23
167.9
128.7
79.2
26.8
1.10
168.1
127.9
78.0
27.2
1.18
157.9
124.1
80.2
27.0
1.16
9.02
9.30
9.20
7.98
8.25
8.43
7.02
7.24
7.37
6.86
7.05
6.89
6.76
6.95
6.94
6.61
6.80
7.05
6.61
6.80
7.38
6.74
6.92
7.26
6.77
6.95
7.13
6.67
6.85
7.54
9.25
8.59
8.46
7.71
7.46
6.65 r
7.02
6.42
7.03
6.15
7.08
6.11
7.51
6.61 r
7.52
6.58 r
7.05
6.45
7.59
6.72
SECONDARY MARKETS
Yield (percent per year)
9 F H A mortgages (Section 203)5
10 GNMA securities 6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12
FHA/VA insured
13
Conventional
122,837
21,702
101,135
142,833
22,168
120,664
172,791
22,876
149,914
177,992
22,834
155,158
180,057
22,810
157,247
182,524
22,978
159,546
185,463
23,334
162,129
190,861
23,857
167,004
194,441
23,7%
170,645
1%,078
23,789
172,289
37,202
75,905
92,037
8,176
8,866
8,780
8,979
12,123
7,919
5,427
40,010
7,608
74,970
10,493
92,537
5,097
8,581
2,585
9,814
0
7,515
0
11,144
0
8,461
209
6,159
664
4,858
525
Mortgage holdings (end of period f
17 Total
18
FHA/VA insured
19
Conventional
24,131
484
23,283
29,959
408
29,552
42,789
327
42,462
44,396
324
44,072
46,858
323
46,536
50,108
321
49,787
52,933
324
52,610
55,012
321
54,691
56,067
319
55,747
n.a.
n.a.
n.a.
Mortgage transactions
20 Purchases
21 Sales
99,965
92,478
191,125
179,208
229,242
208,723
19,636
18,008
18,372
16,230
18,658
15,985
27,062
24,028
29,3%
26,607
22,611
21,253
n.a.
n.a.
114,031
261,637
274,599
17,085
16,495
24,614
39,977
24,176
31,393
n.a.
Mortgage transactions
14 Purchases
Mortgage
15 Issued
16 To sell 8
(during
commitments
(during
period)
period)
FEDERAL HOME LOAN MORTGAGE CORPORATION
(during
Mortgage commitments
22 Contracted
(during
period)
periodf
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups for purchase of newly built homes; compiled by
the Federal Housing Finance Board in cooperation with the Federal Deposit
Insurance Corporation.
2. Includes all fees, commissions, discounts, and " p o i n t s " paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built
homes, assuming prepayment at the end of ten years.
4. Average contract rate on new commitments for conventional first mortgages; from U.S. Department of Housing and Urban Development (HUD). Based
on transactions on the first day of the subsequent month.
5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured by the Federal Housing Administration (FHA) for immediate
delivery in the private secondary market. Based on transactions on first day of
subsequent month.
6. Average net yields to investors on fully modified pass-through securities
backed by mortgages and guaranteed by the Government National Mortgage
Association (GNMA), assuming prepayment in twelve years on pools of thirtyyear mortgages insured by the Federal Housing Administration or guaranteed by
the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal
Home Loan Mortgage Corporation's mortgage commitments and mortgage transactions include activity under mortgage securities swap programs, whereas the
corresponding data for F N M A exclude swap activity.
A38
DomesticNonfinancialStatistics • May 1994
1.54 MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1992
Type of holder and property
1 All holders
2
3
4
5
By type of property
One- to four-family residences
Multifamily residences
Commercial
Farm
By type of holder
6 Major financial institutions
7
Commercial banks
8
One- to four-family
9
Multifamily
10
Commercial
11
Farm
12
Savings institutions
13
One- to four-family
14
Multifamily
15
Commercial
16
Farm
17
Life insurance companies
18
One- to four-family
19
Multifamily
20
Commercial
21
Farm
22 Federal and related agencies
23
Government National Mortgage A s s o c i a t i o n . . . .
24
One- to four-family
25
Multifamily
26
Farmers Home Administration
27
One- to four-family
28
Multifamily
29
Commercial
30
Farm
31
Federal Housing and Veterans' Administrations
32
One- to four-family
33
Multifamily
34
Resolution Trust Corporation
35
One- to four-family
36
Multifamily
37
Commercial
38
Farm
39
Federal National Mortgage Association
40
One- to four-family
41
Multifamily
42
Federal Land Banks
43
One- to four-family
44
Farm
45
Federal Home Loan Mortgage Corporation
46
One- to four-family
47
Multifamily
48 Mortgage pools or trusts 5
49
Government National Mortgage Association
50
One- to four-family
51
Multifamily
52
Federal Home Loan Mortgage Corporation
53
One- to four-family
54
Multifamily
55
Federal National Mortgage Association
56
One- to four-family
57
Multifamily
58
Farmers Home Administration 4
59
One- to four-family
60
Multifamily
61
Commercial
62
Farm
63
Private mortgage conduits
64
One- to four-family
65
Multifamily
66
Commercial
67
Farm
68 Individuals and others 6
69
One- to four-family
70
Multifamily
71
Commercial
72
Farm
1990
1993
1992
Q4
Q1
Q2
Q3*
Q4 P
3,761,525
3,923,371
4,042,645'
4,042,645'
4,059,199'
4,099,591'
4,155,690
4,218,693
2,615,435
309,369
758,313
78,408
2,778,803
306,410
759,023
79,136
2,953,527
294,976
713,701
80,441 r
2,953,527
294,976
713,701
80,441'
2,975,134'
294,042'
708,966'
81,057'
3,024,789*
291,178*
702,210*
81,414*
3,085,698
290,679
698,299
81,014
3,146,381
292,052
699,488
80,772
1,914,315
844,826
455,931
37,015
334,648
17,231
801,628
600,154
91,806
109,168
500
267,861
13,005
28,979
215,121
10,756
1,846,726
876,100
483,623
36,935
337,095
18,447
705,367
538,358
79,881
86,741
388
265,258
11,547
29,562
214,105
10,044
1,769,187
894,513
507,780
38,024
328,826
19,882
627,972
489,622
69,791
68,235
324
246,702
11,441
27,770
198,269
9,222
1,769,187
894,513
507,780
38,024
328,826
19,882
627,972
489,622
69,791
68,235
324
246,702
11,441
27,770
198,269
9,222
1,753,045
891,755
507,497
37,425
326,853
19,980
617,163
480,415
70,608
65,808
332
244,128
11,316
27,466
196,100
9,246
1,765,176*
910,989*
526,817'
38,058*
325,519'
20,595
612,458*
480,722'
68,303'
63,111*
322
241,729
11,195
27,174
194,012
9,348
1,768,931
922,492
538,906
37,621
325,124
20,841
609,584
478,297
68,649
62,318
320
236,855
10,%7
26,620
190,061
9,206
1,777,772
940,547
556,778
38,150
324,749
20,870
603,559
472,492
68,533
62,214
319
233,667
10,814
26,248
187,403
9,201
239,003
20
20
0
41,439
18,527
9,640
4,690
8,582
8,801
3,593
5,208
32,600
15,800
8,064
8,736
0
104,870
94,323
10,547
29,416
1,838
27,577
21,857
19,185
2,672
266,146
19
19
0
41,713
18,4%
10,141
4,905
8,171
10,733
4,036
6,697
45,822
14,535
15,018
16,269
0
112,283
100,387
11,8%
28,767
1,693
27,074
26,809
24,125
2,684
286,263
30
30
0
41,695
16,912
10,575
5,158
9,050
12,581
5,153
7,428
32,045
12,960
9,621
9,464
0
137,584
124,016
13,568
28,664
1,687
26,977
33,665
31,032
2,633
286,263
30
30
0
41,695
16,912
10,575
5,158
9,050
12,581
5,153
7,428
32,045
12,960
9,621
9,464
0
137,584
124,016
13,568
28,664
1,687
26,977
33,665
31,032
2,633
287,081'
45
37
8
41,529*
16,536*
10,650*
5,187*
9,156*
13,027
5,631
7,3%
27,331
11,375
8,070
7,886
0
141,192
127,252
13,940
28,536
1,679
26,857
35,421
32,831
2,589
298,991*
45
38
7
41,446*
16,133*
10,739*
5,250*
9,324'
12,945
5,635
7,311
21,973
8,955
6,743
6,275
0
151,513
137,340
14,173
28,592
1,682
26,909
42,477
39,905
2,572
309,579
43
37
7
41,424
15,714
10,830
5,347
9,533
11,797
4,850
6,947
19,925
8,381
6,002
5,543
0
160,721
146,009
14,712
28,810
1,695
27,115
46,859
44,315
2,544
321,907
43
37
7
41,386
15,303
10,940
5,406
9,739
12,215
5,364
6,851
17,284
7,202
5,284
4,797
0
166,642
151,310
15,332
28,860
1,698
27,162
55,476
52,929
2,547
1,079,103
403,613
391,505
12,108
316,359
308,369
7,990
299,833
291,194
8,639
66
17
0
24
26
59,232
53,335
731
5,166
0
1,250,666
425,295
415,767
9,528
359,163
351,906
7,257
371,984
362,667
9,317
47
11
0
19
17
94,177
84,000
3,698
6,479
0
1,425,546
419,516
410,675
8,841
407,514
401,525
5,989
444,979
435,979
9,000
38
8
0
17
13
153,499
132,000
6,305
15,194
0
1,425,546
419,516
410,675
8,841
407,514
401,525
5,989
444,979
435,979
9,000
38
8
0
17
13
153,499
132,000
6,305
15,194
0
1,462,181*
421,514
412,798
8,716
420,932
415,279
5,654
457,316
448,483
8,833
34*
7*
0
16*
11*
162,385*
137,000
6,665*
18,720*
0
1,473,323'
413,166
404,425
8,741
422,882
417,646
5,236
465,220
456,645
8,575
32'
6*
0
15*
11*
172,023*
145,000
7,407*
19,616*
0
1,514,002
415,076
405,%3
9,113
430,089
425,154
4,935
481,880
473,599
8,281
30
6
0
14
10
186,927
158,000
7,991
20,936
0
1,546,818
414,066
404,864
9,202
439,029
434,494
4,535
495,525
486,804
8,721
28
5
0
13
10
198,171
164,000
8,701
25,469
529,104
348,638
85,969
80,761
13,737
559,833
367,633
83,796
93,410
14,994
556,892*
366,998*
86,023*
88,3%*
15,474*
562,101*
372,645*
86,140*
88,412*
14,904*
563,178
373,805
86,428
88,956
13,990
572,1%
382,288
87,000
89,438
13,471
1. Based on data from various institutional and governmental sources; figures
for some quarters estimated in part by the Federal Reserve. Multifamily debt
refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by
bank trust departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from F m H A mortgage pools to F m H A mortgage holdings in 1986:Q4
because of accounting changes by the Farmers Home Administration.
1991
561,649*
372,708
85,430
88,538
14,973r
561,649*
372,708
85,430
88,538
14,973'
0
5. Outstanding principal balances of mortgage-backed securities insured or
guaranteed by the agency indicated.
6. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and finance companies.
SOURCES. Based on data from various institutional and government sources.
Separation of nonfarm mortgage debt by type of property, if not reported directly,
and interpolations and extrapolations, when required, are estimated mainly by the
Federal Reserve. Line 64, from Inside Mortgage Securities.
Consumer Installment
Credit
A39
1.55 CONSUMER INSTALLMENT CREDIT1
Millions of dollars, amounts outstanding, end of period
1994
1993
Holder and type of credit
1991
1992
1993
Sept.
Aug.
Nov.
Oct.
Dec.
Jan.
Seasonally adjusted
733,510
1 Total
260,898
243,564
229,048
2 Automobile
3 Revolving
4 Other
741,093
259,627
254,299
227,167
790,082
762,503
278,321
281,474
230,288
268,784
270,753
222,967
768,573
775,620 r
782,561 r
790,082
796,086
270,650
273,703
224,220
r
276,853 r
279,273
226,435 r
278,321
281,474
230,288
278,956
284,802
232,328
273,822
277,125
224,673 r
Not seasonally adjusted
749,052
756,944
807,298
763,268
770,384
776,101 r
784,148'
807,298
801,509
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets
340,713
121,937
92,681
39,832
45,965
4,362
103,562
331,869
117,127
97,641
42,079
43,461
4,365
120,402
367,140
117,464
114,451
47,382
33,000
4,212
123,649
345,449
111,864
108,095
39,688
35,919
4,728
117,525
349,699
112,645
109,687
39,842
34,985
4,574
118,952
352,559
112,602r
110,830
40,310
34,251
4,599
120,950
358,429
114,800"
112,342
42,047
33,500
4,507
118,523r
367,140
117,464
114,451
47,382
33,000
4,212
123,649
365,233
117,937
115,055
44,986
32,500
4,189
121,609
By major type of credit3
13 Automobile
Commercial banks
14
15
Finance companies
Pools of securitized assets 2
16
261,219
112,666
63,415
28,915
259,964
109,743
57,605
33,878
278,690
123,734
55,274
36,781
270,495
118,535
55,247
35,569
273,291
120,574
55,057
36,123
275,882 r
122,162
54,324 r
37,630
277,060*
122,989
55,337 r
36,569*
278,690
123,734
55,274
36,781
278,175
123,826
56,509
34,947
17 Revolving
Commercial banks
18
19
Retailers
20
Gasoline companies
21
Pools of securitized assets
256,876
138,005
34,712
4,362
63,595
267,949
132,582
36,629
4,365
74,243
2%,445
148,698
41,378
4,212
77,416
269,663
135,466
34,099
4,728
71,562
272,579
136,738
34,214
4,574
72,646
275,109
137,844
34,668
4,599
73,556
280,080
142,382
36,319
4,507
72,357
296,445
148,698
41,378
4,212
77,416
290,099
144,776
39,057
4,189
77,280
22 Other
Commercial banks
23
24
Finance companies
25
Retailers
26
Pools of securitized assets
230,957
90,042
58,522
5,120
11,052
229,031
89,544
59,522
5,450
12,281
232,162
94,708
62,189
6,004
9,452
223,109
91,448
56,616
5,589
10,394
224,514
92,387
57,588
5,628
10,183
225,110 r
92,553
58,278 r
5,642
9,764
227,008*
93,058
59,463*
5,728
9,597
232,162
94,708
62,189
6,004
9,452
233,234
96,631
61,427
5,929
9,382
5 Total
6
7
8
9
10
11
12
1. The Board's series on amounts of credit covers most short- and
intermediate-term credit extended to individuals that is scheduled to be repaid (or
has the option of repayment) in two or more installments.
Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering address, see inside front cover.
2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent per year except as noted
1994
1993
Item
1991
1992
1993
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
INTEREST RATES
1
2
3
4
Commercial
banks2
48-month new car
24-month personal
120-month mobile home
Credit card
Auto finance
5 New car
6 Used car
11.14
15.18
13.70
18.23
9.29
14.04
12.67
17.78
8.09
13.47
11.87
16.83
n.a.
n.a.
n.a.
n.a.
7.98
13.45
11.53
16.59
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.63
13.22
11.55
16.30
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
12.41
15.60
9.93
13.80
9.48
12.79
9.37
12.46
9.21
12.48
9.21
12.52
9.25
12.58
8.%
12.41
8.80
12.33
7.55
12.02
55.1
47.2
54.0
47.9
54.5
48.8
54.7
49.0
54.9
49.0
54.7
48.8
55.0
48.2
54.5
48.4
54.0
48.3
52.9
50.0
88
96
89
97
91
98
91
98
91
99
91
98
90
98
91
98
90
98
91
98
12,494
8,884
13,584
9,119
14,332
9,875
14,430
9,9%
14,324
10,104
14,348
9,808
14,650
9,%9
14,839
10,230
15,097
10,349
15,330
10,434
companies
OTHER TERMS3
Maturity
(months)
1 New car
8 Used car
Loan-to-value
9 New car
10 Used car
ratio
Amount financed
11 New car
12 Used car
(dollars)
1. The Board's series on amounts of credit covers most short- and intermediate-term credit extended to individuals that is scheduled to be repaid (or has the
option of repayment) in two or more installments. Data in this table also appear in
the Board's G.19 (421) monthly statistical release. For ordering address, see
inside front cover.
2. Data are available for only the second month of each quarter,
3. At auto finance companies,
A40
1.57
DomesticNonfinancialStatistics • May 1994
F U N D S R A I S E D I N U . S . CREDIT M A R K E T S 1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1992
Transaction rutponrv nr <f*r1nr
1988
1989
1990
1991
1993*
1992
Ql
Q2
Q3
Q4
Ql
Q2
Q3
Nonfinancial sectors
1 Total net borrowing by domestic noniinancial sectors . .
752.6
723.0
631.0
475.5
582.4
602.6 r
586.2
611.1*
529.5*
404.5
677.6
577.0
By sector and
instrument
2 U.S. government
T r e a s u r y securities
3
4
Budget agency issues a n d m o r t g a g e s
155.1
137.7
17.4
146.4
144.7
1.6
246.9
238.7
8.2
278.2
292.0
-13.8
304.0
303.8
.2
323.8
335.0
-11.2
352.9
352.5
.4
299.1
290.1
9.0
240.1
237.4
2.7
229.6
226.4
3.2
348.2
344.1
4.1
177.2
160.9
16.2
5 Private
597.5
576.6
384.1
197.3
278.4
278.8 r
233.3 r
312.0*
289.4*
175.0
329.3
399.8
6
7
8
9
10
11
12
13
14
15
16
By
instrument
T a x - e x e m p t obligations
Corporate bonds
Mortgages
H o m e mortgages
Multifamily residential
Commercial
Farm
C o n s u m e r credit
Bank loans n.e.c
Commercial paper
O t h e r loans
53.7
103.1
279.6
219.6
16.1
48.5
-4.6
50.1
44.7
11.9
54.3
65.3
73.8
269.1
212.5
12.0
47.3
-2.7
49.5
36.4
21.4
61.0
57.3
47.1
188.7
177.2
3.4
8.9
-.8
13.4
4.2
9.7
63.6
69.6
78.8
165.1
166.0
-2.5
.9
.7
-13.1
-46.8
-18.4
-37.8
65.7
67.5 r
120.8 r
176.0
-11.1
-45.5
1.3 r
9.3
-5.6
8.6
12. l r
68.0
76.5 r
184.7 r
216.5
11.6
-46.9
3.5 r
-9.8
-47.3
2.5
4.3 r
76.6
77.8
69.6 r
111.6
-16.9
-25.7
,6 r
-14.7
27.7
-2.6
-1.0*
75.8
61.7*
134.8*
203.3
-11.2
-57.8*
.6*
13.5
-24.0*
9.3
40.8
42.4
54.0*
94.0*
172.8
-27.8*
-51.5*
.5*
48.3*
21.3*
25.4
4.1*
62.4
82.0
101.3
121.8
-4.7
-18.2
2.5
19.2
-39.7
-27.1
-23.1
67.2
72.0
134.4
174.2
-12.4
-28.9
1.4
22.9
31.7
33.7
-32.5
48.3
68.0
201.5
226.9
-4.0
-19.8
-1.6
60.7
7.3
23.8
-9.8
17
18
19
20
21
22
By borrowing
sector
Household
Nonfinancial b u s i n e s s
Farm
Nonfarm noncorporate
Corporate
State a n d local g o v e r n m e n t
300.1
248.4
-10.0
57.2
201.3
48.9
276.7
236.3
.5
49.4
186.5
63.5
207.7
121.9
1.8
19.4
100.7
54.5
168.4
-33.4
2.4
-24.5
-11.3
62.3
215.0
4.0
1.2 r
-39.4
42. l r
59.4
199.2
17.5 r
3.6 r
-21.8
35.8 r
62.1
176.5
-10.1
3.5 r
-47.4
33.8 r
66.9
217.9*
20.6*
-.2*
-37.3
58.2*
73.5
266.5*
-12.2*
-1.9*
-51.0
40.7*
35.1
130.8
-27.6
-.3
-32.7
5.4
71.7
213.7
46.6
3.8
-31.4
74.3
69.1
321.7
26.0
2.0
-23.1
47.1
52.1
23 F o r e i g n net b o r r o w i n g in U n i t e d S t a t e s
24
Bonds
Bank loans n.e.c
25
Commercial paper
26
27
U.S. government and other loans
6.4
6.9
-1.8
8.7
-7.5
10.2
4.9
-.1
13.1
-7.6
23.9
21.4
-2.9
12.3
-7.0
13.9
14.1
3.1
6.4
-9.8
24.2
17.3
2.3
5.2
-.6
1.9
4.9
1.5
-8.0
3.6
57.7
21.9
14.1
27.8
-6.1
37.8
20.3
3.9
13.1
.5
-.6
22.2
-10.3
-12.1
-.4
50.3
75.6
1.6
-21.7
-5.3
40.1
42.4
6.5
-.6
-8.2
81.8
83.7
1.0
-1.6
-1.3
28 Total domestic plus foreign
759.0
733.1
654.9
489.4
606.6
604.6 r
643.9*
649.0*
528.8*
454.8
717.6
658.8
Financial s e c t o r s
239.9
213.7
193.5
150.4
216.4 r
175.0 r
211.6*
304.1*
174.8*
146.1
131.6
386.1
119.8
44.9
74.9
.0
149.5
25.2
124.3
.0
167.4
17.1
150.3
-.1
145.7
9.2
136.6
.0
155.8
40.3
115.6
.0
126.8
11.5
115.3
.0
195.2
48.3
146.9
.0
169.3
67.7
101.6
.0
131.8
33.6
98.4
-.1
165.8
32.2
133.5
.0
62.7
68.8
-6.1
.0
273.7
167.8
105.9
.0
34 Private
Corporate bonds
35
Mortgages
36
37
Bank loans n.e.c
38
Open market paper
Loans from Federal H o m e Loan Banks
39
120.1
49.0
.3
-3.8
54.8
19.7
64.2
37.3
.5
6.0
31.3
-11.0
26.1
40.8
A
1.1
8.6
-24.7
4.6
56.8
.8
17.1
-32.0
-38.0
60.6 r
65.3*
.0
-4.8
-.7
.8
48.2 r
36.0 r
-.4
22.0
1.1
-10.4
16.3*
64.4*
.1
-39.1
-14.8
5.8
134.8*
81.2*
.4*
17.5*
17.5
18.1
42.9*
79.4*
.0*
-19.8*
-6.5
-10.1
-19.6
55.3
.9
-21.2
-73.1
18.6
68.9
55.8
2.7
-5.9
-17.3
33.5
112.4
97.7
6.2
-14.0
-9.7
32.3
By borrowing
sector
40 G o v e r n m e n t s p o n s o r e d e n t e r p r i s e s
41 Federally related m o r t g a g e p o o l s
42 P r i v a t e
Commercial banks
43
44
B a n k holding c o m p a n i e s
45
Funding corporations
Savings institutions
46
47
Credit u n i o n s
Life insurance companies
48
Finance companies
49
Mortgage companies
50
51
Real e s t a t e i n v e s t m e n t t r u s t s ( R E I T s )
52
I s s u e r s of a s s e t - b a c k e d securities ( A B S s )
44.9
74.9
120.1
-3.0
5.2
39.1
21.7
.0
.0
23.9
-6.2
1.8
37.6
25.2
124.3
64.2
-1.4
6.2
13.8
-15.1
.0
.0
27.4
3.0
1.3
28.9
17.0
150.3
26.1
-.7
-27.7
12.5
-30.2
.0
.0
24.0
-4.0
1.0
51.1
9.1
136.6
4.6
-11.7
-2.5
-13.6
-44.5
.0
.0
18.6
5.7
1.6
51.0
40.2
115.6
60.6 r
8.8
2.3
1.6
-6.7
.0
.0
-3.6
.1
.1
58.0*
11.5
115.3
48.2 r
3.2
10.9
16.1
-18.3
.0
.0
-35.6
27.5
1.7
42.7 r
48.3
146.9
16.3*
5.5
-9.2
29.2
-5.4
.0
.0
-20.1
-35.3
1.3
50.3*
67.7
101.6
134.8*
12.1
6.6
-7.7
11.2
.0
.2
21.2
14.4
2.3*
74.3*
33.5
98.4
42.9*
14.5
.8
-31.1
-14.4
.1
-.2
19.9
-6.4
-5.1*
64.8*
32.2
133.5
-19.6
5.4
21.1
-51.9
7.9
.0
.1
-33.1
-10.4
-1.4
42.6
68.8
-6.1
68.9
10.1
1.3
8.2
17.7
.3
.6
-38.6
15.9
2.5
50.8
167.8
105.9
112.4
6.2
-2.1
-13.2
18.4
.3
-.1
16.0
2.4
6.1
78.4
29 Total net b o r r o w i n g by financial sectors
30
31
32
33
By
instrument
U.S. government-related
G o v e r n m e n t - s p o n s o r e d e n t e r p r i s e s securities
M o r t g a g e pool securities
Loans from U.S. government
Flow of Funds
A41
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued
1993r
1992
Transaction category or sector
1988
1989
1990
1991
1992
Ql
Q2
Q3
Q4
Ql
Q2
Q3
All sectors
53 Total net borrowing, all sectors
998.8
946.8
848.4
639.8
822.9"
779.5"
855.5"
953.1"
703.6"
600.9
849.2
1,044.9
54
55
56
57
58
59
60
61
274.9
53.7
159.0
280.0
50.1
39.2
75.4
66.6
295.8
65.3
116.0
269.6
49.5
42.3
65.9
42.4
414.4
57.3
109.2
189.1
13.4
2.4
30.7
31.8
424.0
69.6
149.6
165.8
-13.1
-26.6
-44.0
-85.6
459.8
65.7
150.l r
120.8r
9.3
-8.1
13.1
12.2
450.6
68.0
117.3"
184.3"
-9.8
-23.9
-4.5
-2.5"
548.1
76.6
164.1"
69.7"
-14.7
2.8
10.3
-1.3"
468.5
75.8
163.3"
135.3"
13.5
-2.5
39.9
59.3
372.0
42.4
155.6"
93.9"
48.3"
-8.8
6.8
-6.6"
395.3
62.4
212.9
102.2
19.2
-59.3
-121.9
-9.9
410.9
67.2
170.2
137.1
22.9
32.3
15.7
-7.2
450.9
48.3
249.4
207.7
60.7
-5.8
12.5
21.2
U.S. government securities
Tax-exempt securities
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
Funds raised through mutual funds and corporate equities
62 Total net share issues
63 Mutual funds
64 Corporate equities
65
Nonfinancial corporations
Financial corporations
66
67
Foreign shares purchased in United States
-98.6
-59.6
22.2
210.6
284.0 r
273.8"
264.1
297.7"
300.3"
300.7
470.7
502.1
6.1
-104.7
-129.5
23.9
.9
38.5
-98.1
-124.2
8.8
17.2
67.9
-45.7
-63.0
9.9
7.4
150.5
60.1
18.3
11.2
30.7
206.7
77.3"
27.0"
19.6"
30.6
174.4
99.5"
46.0
24.4"
29.1
199.5
64.5"
36.0
17.4
11.2
235.2
62.5"
12.0"
15.7"
34.8
217.7
82.6"
14.0
21.1"
47.5
240.9
59.7
9.0
18.8
31.9
357.5
113.2
25.0
34.2
54.0
337.6
164.5
30.0
37.1
97.5
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables F.2 through F.5. For ordering address, see inside front cover.
A42 Domestic Financial Statistics • May 1994
1.58
SUMMARY OF FINANCIAL TRANSACTIONS1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
1992
Transaction category or sector
1988
1989
1990
1991
1993
1992
Ql
Q2
Q3
Q4
Ql
Q2
Q3*
NET LENDING IN CREDIT MARKETS2
1 Total net lending in credit markets
2
3
4
5
6
7
8
Y
10
ii
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Private domestic nonfinancial sectors
Households
Nonfarm noncorporate business
Nonfinancial corporate business
State and local governments
U.S. government
Foreign
Financial sectors
Government sponsored enterprises
Federally related mortgage pools
Monetary authority
Commercial banking
U.S. commercial banks
Foreign banking offices
Bank holding companies
Banks in U.S. affiliated areas
Private nonbank finance
Thrift institutions
Insurance
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds
Finance n.e.c
Finance companies
Mortgage companies
Mutual funds
Closed-end funds
Money market funds
Real estate investment trusts (REITs)
Brokers and dealers
Asset-backed securities issuers (ABSs)
Bank personal trusts
822.9 r
998.8
946.8
848.4
639.8
196.1
170.3
3.1
5.7
17.1
-10.6
108.6
704.8
33.2
74.9
10.5
156.5
126.4
29.4
-.1
.8
429.7
114.8
199.0
104.0
29.2
29.2
36.6
115.9
38.1
-7.4
11.9
19.8
10.7
.9
-8.2
35.9
14.3
122.6
78.6
-.7
13.6
31.1
-3.1
84.4
742.9
-4.1
124.3
-7.3
177.2
146.1
26.7
2.8
1.6
452.9
-86.6
257.4
101.8
29.7
81.1
44.7
282.2
32.0
6.1
23.8
6.3
67.1
.5
96.3
27.7
22.4
162.8
140.1
-1.7
-5.3
29.6
33.7
82.1
569.9
16.4
150.3
8.1
125.1
94.9
28.4
-2.8
4.5
270.0
-153.3
181.6
94.4
26.5
17.2
43.5
241.7
28.4
-8.0
41.4
.0
80.9
-.7
34.9
49.9
14.8
-16.1
-49.7
-4.2
4.3
33.5
10.5
25.6
619.8
14.2
136.6
31.1
84.3
39.2
48.5
-1.5
-1.9
353.7
-123.0
234.3
83.2
32.3
85.3
33.5
242.3
-12.1
11.4
90.3
15.2
30.1
-1.0
49.0
49.0
10.4
998.8
946.8
848.4
639.8
4.0
24.8
2.0
-5.9
-1.6
.5
25.3
140.1
2.9
278.6
43.2
121.6
53.1
21.9
23.7
15.2
6.1
-104.7
3.0
89.6
5.3
-24.0
7.2
199.2
4.1
28.8
309.7
-16.5
284.8
6.1
100.4
13.9
90.1
77.8
-3.6
38.5
-98.1
15.6
59.4
2.0
-31.1
23.1
292.1
2.5
25.7
158.1
34.2
98.1
44.2
59.0
-65.7
70.3
-24.2
14.6
67.9
-45.7
3.5
32.1
-4.5
-35.5
21.5
98.2
.0
25.7
358.8
-3.7
48.2
75.8
16.7
-60.8
41.2
-16.5
-8.2
150.5
60.1
51.4
-2.2
-8.5
-12.5
29.8
169.9
-1.8
27.3*
227.8*
48.1*
9.3
122.8
-60.8
-80.0
3.9
33.6
-10.2
206.7
77.3*
4.2
54.9*
7.9*
-5.7*
-7.5
195.7*
1,632.0
1,883.8
1,306.5
1.6
.8
-6.2
8.4
-3.2
-1.9
3.3
2.5
2.5
-13.1
2.0
8.1
.7
1.6
18.5*
11.3
13.8
23.2*
-9.5
2.0
9.5*
4.4
-11.7
40.2*
-3.6
2.3
1.2*
-.1
-3.0
-29.6
6.3
47.3
-.2
-4.4
32.4
2.3
-77.8
.2
1.6
-31.5
.5
-23.6
-.6
26.2
5.2
.4
-32.1
-.2
-4.9*
31.1
6.9*
-21.1*
-.3
8.2
-26.7
-7.5*
-69.0*
-.2
-18.2
84.1
7.1*
-65.9*
-.2
-7.8*
43.5
24.1*
1.2*
-.1
-1.7*
23.4
4.0*
49.3*
1,614.8
1,928.2
1,351.0
953.1*
703.6*
600.9*
849.2
1,044.9
134.0*
65.3R
37.0*
117.5*
-2.4
-3.9
25.1
36.3
-5.7 R
-4.7*
-12.0*
15.2
96.4*
100.8*
668.8*
534.0*
92.7
69.0
115.6
115.3
28.5
27.9
94.8
85.1
76.3
69.8
16.5
-.5
7.1
5.6
2.2
2.9
361.6*
212.5*
-59.5* -104.8*
177.9*
98.0*
82.4
73.7
12.7
28.8
37.3
-33.2
45.5*
28.7*
243.2*
219.3*
1.7
-5.3
.1
23.0
123.7
95.1
17.9
12.3
1.3
19.1
.4
-.7
40.2
-2.4
40.4*
55.5*
8.0
32.2
779.5*
855.5*
145.6* -105.4*
99.8* -135.7*
-2.7
-2.0
36.8
46.5
11.7* -14.1*
-23.0
-26.7
140.8*
78.1
592.1* 1,006.9*
38.6
73.0
146.9
101.6
19.0
15.7
72.7
148.0
13.3
123.5
56.7
5.2
-.4
16.4
3.2
3.0
314.9*
668.6*
-75.7* - 4 2 . 6
190.4*
261.4*
66.9
85.1
16.4
-2.8
74.1
99.9
33.0*
79.2*
200.2*
449.7*
-16.0
4.0
-38.5
28.9
123.7
156.9
9.4
8.7
3.8
8.5
2.6
-.3
73.0
180.3
50.5*
72.0*
-8.4
-9.3
87.0*
66.6*
-1.0
36.9
-15.5*
-13.3*
87.8*
542.1*
71.7
98.4
48.3
73.3
66.0
4.8
-.6
3.0
250.4*
-15.0*
161.6*
103.7
8.3
8.4
41.2*
103.8*
24.0
-12.8
119.2
13.1
-26.1
-.1
-90.2
59.2*
17.3
-93.1*
-88.6*
-3.7
-12.6*
11.8*
-24.7*
73.2
645.6*
14.6
133.5*
44.5
86.4
100.4
-12.5
-4.3
2.9
366.5*
-33.3*
257.0*
122.1
8.9
118.0
8.0*
142.8*
-34.0
-20.8
130.2
8.9
-65.0
2.9
79.5
42.1*
-.9
-95.8
-91.9
-3.0
6.7
-7.5
-27.8
92.6
880.1
134.1
-6.1
32.6
153.4
142.0
-.7
9.5
2.6
566.0
-5.2
172.9
108.0
10.6
11.1
43.2
398.3
-22.8
31.7
193.4
13.0
51.5
.8
66.7
49.7
14.4
-126.2
-139.6
-2.2
40.1
-24.6
-15.2
140.8
1,045.5
157.7
105.9
28.2
131.9
147.0
-17.2
-.4
2.5
621.8
12.2
261.6
117.1
8.6
91.9
44.0
347.9
8.1
-1.9
168.4
11.0
11.5
1.0
69.0
81.3
-.5
822.9*
855.5*
953.1*
703.6*
600.9*
849.2
1,044.9
-6.5
-8.5
5.1
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
35 Net flows through credit markets
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
Other financial sources
Official foreign exchange
Treasury currency and special drawing rights
certificates
Life insurance reserves
Pension fund reserves
Interbank claims
Deposits at financial institutions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Corporate equities
Security credit
Trade debt
Taxes payable
Noncorporate proprietors' equity
Investment in bank personal trusts
Miscellaneous
56 Total financial sources
Floats not included in assets ( - )
57 U.S. government checkable deposits
58 Other checkable deposits
59 Trade credit
60
61
62
63
64
Liabilities not identified as assets ( - )
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous
65 Total identified to sectors as assets
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables F.6 and F.7. For ordering address, see inside front cover.
779.5*
3.5
-4.0
1.7
-7.7
.3
.2
41.5*
26.3*
53.6*
267.0*
325.2*
291.7*
79.8*
50.0*
19.8*
-.4*
174.1 - 1 4 2 . 7
200.4
93.5
25.0
-83.6
- 3 7 . 8 -155.9*
-52.9
-84.2
1.9
-22.4
-32.9
-37.7
89.6
-67.1
180.3
43.0
-14.2
-13.9*
235.2
217.7
240.9
62.5*
82.6*
59.7*
82.8
5.5
39.7
54.0*
33.0*
26.9*
6.7*
10.3*
7.6*
-27.5*
10.5* -12.5*
-55.4
-35.2
-10.1
213.4*
202.6*
211.8*
.4
39.5
223.0
49.5
219.6
232.2
-57.3
-17.5
66.5
17.6
-21.9
357.5
113.2
38.3
37.4
2.2
-21.0
35.8
385.1
.4
59.5
296.1
-19.8
-5.3
96.3
-72.6
-57.3
-15.8
78.7
-34.6
337.6
164.5
77.2
47.8
4.2
-6.7
-23.0
93.5
1,501.3 1,665.5* 1,385.3* 1,745.8* 2,092.8* 1,437.9* 1,568.5*
2,325.7
2,072.7
.1
-1.8
-20.1*
6.2
-1.4
5.1
-6.4
-5.6
10.4
-.2
11.4*
155.2
-13.2*
-7.8*
-.2
-5.7
16.5
14.1
-36.1
-.2
-16.5
67.7
8.3
-34.9
1,505.2 1,632.8* 1,432.3* 1,736.9* 1,999.2* 1,363.1* 1,444.9*
2,327.3
2,049.9
.1
.3
25.6*
15.6*
144.5*
208.0*
25.7
36.9
-.7
6.3
86.4
110.8
-40.1
-81.8
-72.9 -109.9
44.4
26.7
8.1
103.7
-26.6
-43.2
174.4
199.5
99.5*
64.5*
-66.7
-4.9
54.7*
78.0*
8.6*
6.2*
-21.9*
15.9*
40.2
20.2
94.9*
273.5*
3.4
2. Excludes corporate equities and mutual fund shares,
Flow of Funds
A43
1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING'
Billions of dollars, end of period
1993
1992
Transaction category or sector
1989
1990
1991
1992
Q3
Q2
Ql
Q4
Ql
Q2"
Q3 r
11,983.4
12,128.9
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
10,054.3
10,692.0
11,160.6
ll,747.2 r
By (ending sector and instrument
? U.S. government
3
Treasury securities
4
Budget agency issues and mortgages
2,251.2
2,227.0
24.2
2,498.1
2,465.8
32.4
2,776.4
2,757.8
18.6
3,080.3
3,061.6
18.8
5 Private
7,803.1
8,193.9
8,384.3
11,289.4" 11,427.2" 11,580.6" 11,747.2" 11,824.7"
2,923.3
2,907.4
15.9
2,998.9
2,980.7
18.1
3,080.3
3,061.6
18.8
3,140.2
3,120.6
19.6
3,201.2
3,180.6
20.6
3,247.3
3,222.6
24.7
8,666.9" • 8,429.6"
8,503.9"
8,581.7"
8,666.9"
8,684.5"
8,782.1
8,881.7
2,859.7
2,844.0
15.8
6
7
8
9
10
11
1?
13
14
15
16
By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
Bank loans n.e.c
Commercial paper
Other loans
1,004.7
961.1
3,512.8
2,380.5
304.3
747.6
80.5
799.5
750.8
107.1
667.0
1,062.1
1,008.2
3,715.4
2,580.6
305.5
750.8
78.4
813.0
747.8
116.9
730.6
1,131.6
1,086.9
3,880.4
2,746.6
303.0
751.7
79.1
799.9
701.0
98.5
685.9
1,197.3
l,154.4 r
4,001.6"
2,922.7
291.9
706.5
80.4"
809.2
695.6
107.1
701.6"
1,145.5
1,106.1"
3,917.9"
2,791.8
305.9
740.3
80.0"
777.6
685.5
110.4
686.5"
1,163.7
1,125.5"
3,941.3"
2,825.6
301.7
733.8
80.2"
776.9
694.0
112.0
690.5"
1,186.4
1,140.9"
3,979.4"
2,880.8
298.9
719.4
80.3"
784.5
686.2
108.2
696.1"
1,197.3
1,154.4"
4,001.6"
2,922.7
291.9
706.5
80.4"
809.2
695.6
107.1
701.6"
1,210.0
1,174.9"
4,017.9
2,944.1"
290.7"
702.0"
81.1"
793.7
683.0
113.9"
691.1"
1,225.7
1,192.9
4,057.6
2,993.8
287.6
694.8
81.4
802.3
691.8
124.0
687.7
1,241.8
1,209.9
4,112.2
3,054.7
286.6
689.8
81.0
821.7
691.6
123.2
681.2
17
18
19
70
71
22
By borrowing sector
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
State and local government
3,371.4
3,615.7
134.4
1,199.6
2,281.7
816.1
3,594.8
3,728.5
134.9
1,219.0
2,374.6
870.5
3,762.7
3,688.7
134.8
1,192.3
2,361.6
932.8
3,978.0
3,696.7"
136.0"
1,154.5
2,406.1"
992.2
3,782.6
3,701.7"
133.4"
1,187.6
2,380.7"
945.3
3,837.3
3,705.6"
136.8"
1,177.3
2,391.5"
961.0
3,900.1"
3,698.6"
137.6"
1,165.1
2,395.8"
983.1
3,978.0
3,696.7"
136.0"
1,154.5
2,406.1"
992.2
3,980.6"
3,696.7"
133.7"
1,145.3"
2,417.8"
1,007.2"
4,044.6
3,714.2
137.1
1,139.3
2,437.8
1,023.4
4,132.7
3,708.5
138.5
1,130.8
2,439.2
1,040.5
261.2
285.1
298.9
313.8
288.7
304.7
312.9
313.8
324.8
336.5
355.6
94.1
21.4
63.0
82.7
115.4
18.5
75.3
75.8
129.5
21.6
81.8
66.0
146.9
23.9
77.7
65.4
130.8
22.0
70.5
65.5
136.2
25.5
77.4
65.6
141.3
26.5
80.7
64.4
146.9
23.9
77.7
65.4
165.8
24.3
72.3
62.5
176.4
25.9
72.1
62.0
197.3
26.2
71.7
60.4
10,315.5
10,977.1
11,459.5
12,319.8
12,484.5
73 Foreign credit market debt held in
United States
74
75
76
27
Bonds
Bank loans n.e.c
Commercial paper
U.S. government and other loans
78 Total credit market debt owed by nonflnandal
sectors, domestic and foreign
*
12,061.0" 11,578.1" 11,732.0" 11,893.5" 12,061.0" 12,149.5"
Financial sectors
79 Total credit market debt owed by
financial sectors
30
31
3?
33
34
35
36
37
38
39
By instrument
U.S. government-related
Government-sponsored enteiprises
securities
Mortgage pool securities
Loans from U.S. government
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
By borrowing sector
40 Government-sponsored enterprises
41 Federally related mortgage pools
4? Private financial sectors
43
Commercial banks
44
Bank holding companies
45
Funding corporations
46
Savings institutions
Credit unions
47
48
Life insurance companies
49
Finance companies
50 Mortgage companies
51
Real estate investment trusts (REITs)
Issuers of asset-backed securities (ABSs)
52
2,362.7
2,559.4
2,709.7
2,941.7"
2,759.4"
2,815.2"
2,889.3"
2,941.7"
2,974.3"
3,010.3
3,104.7
1,247.8
1,418.4
1,564.2
1,720.0
1,590.3
1,641.6
1,683.5
1,720.0
1,755.8
1,774.5
1,842.2
373.3
869.5
5.0
1,114.8
509.1
4.0
50.9
409.1
141.8
393.7
1,019.9
4.9
1,140.9
549.9
4.3
52.0
417.7
117.1
402.9
1,156.5
4.8
1,145.6
606.6
5.1
69.1
385.7
79.1
443.1
1,272.0
4.8
1,221.7"
678.2"
5.1
64.2
394.3
79.9
405.7
1,179.8
4.8
1,169.1"
621.9"
5.0
72.7
393.2
76.3
417.8
1,219.0
4.8
1,173.6"
638.0"
5.0
63.1
390.5
76.9
434.7
1,244.0
4.8
1,205.8"
658.3"
5.1
67.5
394.6
80.2
443.1
1,272.0
4.8
1,221.7"
678.2"
5.1
64.2
394.3
79.9
451.2
1,299.8
4.8
1,218.5"
692.0"
5.4
56.9
379.2"
85.0
468.4
1,301.3
4.8
1,235.8
706.0
6.0
55.8
375.9
92.1
510.3
1,327.1
4.8
1,262.5
730.4
7.6
52.4
373.2
98.9
378.3
869.5
1,114.8
77.4
142.5
125.4
169.2
.0
.0
350.4
11.3
11.4
227.3
398.5
1,019.9
1,140.9
76.7
114.8
137.9
139.1
.0
.0
374.4
7.3
12.4
278.3
407.7
1,156.5
1,145.6
65.0
112.3
124.3
94.6
.0
.0
393.0
13.0
14.0
329.4
447.9
1,272.0
1,221.7"
73.8
114.6
135.2
87.8
.0
.0
389.4
13.0
14.1
393.7"
410.5
1,179.8
1,169.1"
63.8
115.0
137.6
89.8
.0
.0
382.2
19.8
14.4
346.3"
422.6
1,219.0
1,173.6"
66.2
112.7
144.9
87.6
.0
.0
377.4
11.0
14.8
358.9"
439.5
1,244.0
1,205.8"
69.0
114.4
143.0
89.2
.0
.0
382.7
14.6
15.3
377.5"
447.9
1,272.0
1,221.7"
73.8
114.6
135.2
87.8
.0
.0
389.4
13.0
14.1
393.7"
456.0
1,299.8
1,218.5"
73.1
119.9
127.6"
90.3
.0
.0
379.1
10.4
13.7
404.3"
473.2
1,301.3
1,235.8
76.6
120.2
129.7
93.4
.1
.2
369.8
14.4
14.4
417.1
515.1
1,327.1
1,262.5
77.9
119.7
126.4
96.8
.2
.1
373.9
15.0
15.9
436.7
14,169.3 15,002.7" 14,337.4" 14,547.1" 14,782.8" 15,002.7" 15,123.8"
15,330.1
15,589.3
4,891.2
1,210.0
2,032.7"
4,023.3
793.7
764.3
565.4"
843.4"
4,970.9
1,225.7
2,075.3
4,063.7
802.3
773.5
572.0
846.7
5,084.7
1,241.8
2,137.6
4,119.7
821.7
770.2
568.2
845.3
All sectors
53 Total credit market debt, domestic and foreign.
54
55
56
57
58
59
60
61
U.S. government securities
Tax-exempt securities
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
12,678.2
13,536.5
3,494.1
1.004.7
1,564.3
3.516.8
799.5
823.0
579.2
896.5
3,911.7
1,062.1
1,673.5
3,719.7
813.0
818.3
609.9
928.4
1. Data in this table also appear in the Board's Z.l
release, tables L.2 through L.4. For ordering address,
4,335.7
1,131.6
1,823.1
3,885.5
799.9
791.7
565.9
835.8
(780) quarterly statistical
see inside front cover.
4,795.5
1,197.3
1,979.5"
4,006.7"
809.2
783.7
579.0
851.7"
4,445.2
1,145.5
1,858.7"
3,923.0"
777.6
780.2
574.1
833.1"
4,560.1
1,163.7
1,899.8"
3,946.3"
776.9
782.7
579.9
837.7"
4,677.6
1,186.4
1,940.6"
3,984.5"
784.5
780.2
583.6
845.5"
4,795.5
1,197.3
1,979.5"
4,006.7"
809.2
783.7
579.0
851.7"
A44 Domestic Financial Statistics • May 1994
1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1
Billions of dollars except as noted, end of period
1992
T r a n s a c t i o n c a t e g o r y o r sector
1989
1990
1991
1993
1992
Q1
Q2
Q3
Q4
Ql
Q2*
Q3*
CREDIT MARKET DEBT OUTSTANDING2
1 Total credit m a r k e t assets
2 Private d o m e s t i c nonfinancial s e c t o r s
Households
3
4
Nonfarm noncorporate business
Nonfinancial c o r p o r a t e b u s i n e s s
6
S t a t e and local g o v e r n m e n t s
1 U.S. government
8 Foreign
9 Financial s e c t o r s
10
Government-sponsored enterprises
F e d e r a l l y related mortgage pools
11
M o n e t a r y authority
12
Commercial banking
13
14
U.S. commercial banks
Foreign banking offices
15
B a n k holding c o m p a n i e s
16
B a n k s in U . S . affiliated a r e a s
17
Private n o n b a n k finance
18
Thrift institutions
19
Insurance
20
Life i n s u r a n c e c o m p a n i e s
21
Other insurance companies
22
Private p e n s i o n f u n d s
23
24
State and local government retirement f u n d s . . .
25
Finance n.e.c
Finance companies
26
Mortgage c o m p a n i e s
27
Mutual f u n d s
28
29
Closed-end f u n d s
Money market funds
30
Real e s t a t e i n v e s t m e n t t r u s t s ( R E I T s )
31
B r o k e r s and d e a l e r s
32
33
A s s e t - b a c k e d securities issuers (ABSs)
Bank personal trusts
34
12,678.2
13,536.5
14,169.3 15,002.7 R 14,337.4* 14,547.1* 14,782.8* 15,002.7* 15,123.8*
15,330.1
15,589.3
2,096.4
1,326.8
56.5
181.2
531.9
205.4
778.7
9,597.7
355.4
869.5
233.3
2,647.4
2,371.9
242.3
16.2
17.1
5,491.9
1,475.4
2,320.7
1,022.0
317.5
590.2
390.9
1,695.9
468.6
22.6
307.2
37.1
291.8
8.4
142.9
219.3
198.0
2,246.8
1,454.6
54.9
175.8
561.5
239.1
897.5
10,153.1
371.8
1,019.9
241.4
2,772.5
2,466.7
270.8
13.4
21.6
5,747.4
1,324.6
2,473.7
1,116.5
344.0
607.4
405.9
1,949.1
497.0
14.6
360.2
37.1
372.7
7.7
177.9
269.1
212.9
2,205.8 2,288.3 r 2,211.0* 2,231.4* 2,209.1* 2,288.3* 2,257.0*
1,380.0 l,434.2 r 1,388.6* 1,392.5* 1,369.4* 1,434.2* 1,412.7*
50.7
48.3
49.3
48.7
48.1
48.3
47.0
180.1
216.4
180.0
192.6
199.5
216.4
205.9*
595.1
589.4 r
593.1*
597.5*
592.1*
589.4*
591.5*
247.0
235.
251.2
246.3
239.2
235.0*
229.2*
936.2 l,031.6 r
960.7*
995.9* 1,015.5* 1,031.6* 1,041.3*
10,780.3 l l , 4 4 7 . 8 r 10,914.4* 11,073.5* 11,319.0* 11,447.8* 11,596.2*
397.7
466.7
419.9
429.0
446.3
466.7
464.1
1,156.5 1,272.0
1,179.8
1,219.0
1,244.0
1,272.0
1,299.8
272.5
300.4
271.8
282.6
285.2
300.4
303.6
2,856.8 2,951.6
2,864.5
2,887.6
2,928.2
2,951.6
2,960.9
2,506.0 2,575.7
2,517.3
2,525.2
2,560.0
2,575.7
2,594.6
319.2
335.8
313.3
328.2
328.9
326.7
335.8
11.9
17.5
13.6
13.1
17.5
17.5
16.4
19.7
22.5
20.2
21.0
21.8
22.5
23.3
6,096.7 6,457. l r 6,178.6* 6,255.4* 6,415.3* 6,457.1* 6,567.7*
1,197.3 1,140.9
1,171.7* 1,153.8* 1,144.9* 1,140.9
1,130.0*
2,708.0 2,874.9* 2,737.2* 2,789.3* 2,854.5* 2,874.9* 2,943.9*
1,199.6 1,282.0
1,222.3
1,243.6
1,264.7
1,282.0
1,317.3
376.3
389.0
383.5
387.6
386.9
389.0
391.2
692.7
719.0*
684.7*
703.3*
728.2*
719.0*
748.5*
439.4
484.9 r
446.6*
454.8*
474.6*
484.9*
486.9*
2,191.5 2,441.2* 2,269.7* 2,312.3* 2,415.9* 2,441.2* 2,493.8*
484.9
480.5
486.6
479.5
477.8
486.6
473.7
25.9
26.1
31.7
22.1
29.3
26.1
20.9
450.5
574.2
478.8
510.2
550.2
574.2
611.4
52.4
64.6
56.8
59.2
61.3
64.6
66.9
402.7
404.1
424.0
412.0
408.2
404.1
404.5
6.8
7.4
6.8
7.5
7.4
7.4
8.1
226.9
267.1
226.3
244.6
289.6
267.1
287.0
318.1
379.9*
334.5*
347.1*
365.1*
379.9*
390.4*
223.3
231.2
231.3
229.2
226.9
231.2
231.0
2,215.3
1,365.9
46.3
211.7
591.4
223.2
1,064.5
11,827.1
496.7
1,301.3
318.2
3,003.2
2,633.8
327.1
18.4
23.9
6,707.8
1,129.8
2,992.3
1,349.5
393.8
751.3
497.7
2,585.7
473.5
28.8
659.9
70.1
403.9
8.3
303.6
402.8
234.6
2,187.7
1,341.7
45.6
217.1
583.4
218.9
1,099.7
12,083.0
535.1
1,327.1
324.2
3,040.2
2,674.7
322.3
18.6
24.5
6,856.4
1,134.4
3,057.5
1,378.6
396.0
774.3
508.7
2,664.4
472.0
28.3
703.6
72.8
400.6
8.6
320.9
423.1
234.5
12,678.2
13,536.5
14,169.3 15,002.7 R 14,337.4* 14,547.1* 14,782.8* 15,002.7* 15,123.8*
15,330.1
15,589.3
53.6
61.3
55.4
23.8
354.3
3,356.1
32.4
4,736.7
888.6
2,277.4
603.4
428.1
396.5
142.8
566.2
133.9
904.2
81.8
503.2
2,591.1
26.3
380.0
3,400.3
64.0
4,836.8
932.8
2,336.3
537.7
498.4
372.3
159.4
602.1
137.4
936.4
77.4
509.9
2,732.4
26.3
405.7
4,056.5
65.2
4,885.2
1,008.5
2,353.0
476.9
539.6
355.8
151.3
813.9
188.9
926.7
68.9
5%.7
2,884.3
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
35 Total credit m a r k e t debt
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
,
Other
liabilities
Official foreign e x c h a n g e
T r e a s u r y c u r r e n c y a n d special d r a w i n g rights
certificates
Life i n s u r a n c e r e s e r v e s
Pension fund reserves
I n t e r b a n k claims
D e p o s i t s at financial institutions
C h e c k a b l e d e p o s i t s and c u r r e n c y
Small time and savings d e p o s i t s
L a r g e time d e p o s i t s
Money market fund shares
Security r e p u r c h a s e a g r e e m e n t s
Foreign d e p o s i t s
Mutual f u n d s h a r e s
Security credit
Trade debt
Taxes payable
I n v e s t m e n t in b a n k p e r s o n a l t r u s t s
Miscellaneous
54 Total liabilities
51.8
52.7
54.4
55.4
51.8
54.5
53.9
55.6
24.6
446.4*
4,492.2*
109.5*
4,887.8*
1,092.2
2,262.0*
398.3
556.6
443.5
135.3*
1,134.6
225.1
975.8*
81.0*
625.0
3,074.7*
24.7
456.2
4,555.3
116.8
4,930.0
1,169.1
2,242.2
389.9
549.8
448.4
130.5
1,225.8
234.7
984.5
77.2
635.6
3,153.0
24.8
471.1
4,701.7
127.7
4,926.1
1,182.6
2,223.1
379.7
547.9
470.9
121.9
1,342.4
254.5
1,002.8
80.7
643.6
3,193.8
29,143.0 30,862.1* 29,397.8* 29,802.8* 30,408.2* 30,862.1* 31,255.0*
31,777.7
32,413.9
24.5
433.0*
4,357.8*
113.1*
4,892.1
1,131.0
2,292.2
397.2
543.6
389.4
138.8
1,042.1
217.3
978.1*
76.8*
619.1
3,053.7*
26.3
412.1*
4,052.5*
63.0
4,878.6
984.3
2,351.3
459.2
572.0
367.0
144.7
860.4
194.6
934.0*
73.2*
612.9
2,900.1*
26.4
416.0*
4,115.0*
68.5
4,870.6
1,032.9
2,325.8
427.5
556.9
393.5
133.9
924.4
193.3
945.5*
70.7
612.7
2,958.0*
26.5
426.4*
4,250.0*
100.7*
4,909.3
1,072.0
2,303.7
418.4
552.9
417.6
144.6
965.6
214.5
965.1*
74.6*
610.9
3,026.7*
24.5
433.0*
4,357.8*
113.1*
4,892.1
1,131.0
2,292.2
397.2
543.6
389.4
138.8
1,042.1
217.3
978.1*
76.8*
619.1
3,053.7*
26,015.5
27,300.7
Financial assets not included in liabilities
(+)
55 G o l d and special d r a w i n g rights
56 C o r p o r a t e equities
57 H o u s e h o l d equity in n o n c o r p o r a t e b u s i n e s s
21.0
3,812.9
2,508.1
22.0
3,543.7
2,440.6
22.3
4,869.4
2,344.6
19.6
5,540.6
2,274.5*
22.0
4,925.6
2,355.6*
22.7
4,837.0
2,340.3*
23.2
4,995.4
2,320.3*
19.6
5,540.6
2,274.5*
19.8
5,721.3
2,259.2*
20.0
5,741.9
2,260.3
20.3
6,006.6
2,252.2
Floats not included in assets (—)
58 U . S . g o v e r n m e n t c h e c k a b l e d e p o s i t s
59 O t h e r c h e c k a b l e d e p o s i t s
60 T r a d e credit
6.1
26.5
-148.6
15.0
28.9
-146.0
3.8
30.9
-144.1
6.8
32.5
-128.5*
.9
29.5
-146.7*
1.4
32.6
-155.6*
4.0
23.3
-149.6*
6.8
32.5
-128.5*
3.4
27.2
-138.1*
3.5
29.6
-148.1
2.2
21.7
-149.3
Liabilities not identified as assets
Treasury currency
I n t e r b a n k claims
Security r e p u r c h a s e a g r e e m e n t s
Taxes payable
Miscellaneous
-4.3
-31.0
13.7
20.6
-210.7
-4.1
-32.0
-17.7
17.8
-213.4
-4.8
-4.2
-12.5
15.5
-254.6
-4.9
-9.3*
18.6
22.4*
-254.9*
-4.8
-1.8
-4.8
7.3
-282.7*
-4.9
-4.0
19.6
13.1
-285.0*
-4.9
-5.0*
33.1
18.2*
-273.2*
-4.9
-9.3*
18.6
22.4*
-254.9*
-5.0
-5.6*
71.8
12.2*
-300.7*
-5.0
-5.7
79.5
19.4
-294.5
-5.1
-7.8
101.6
20.3
-329.7
32,685.1
33,658.6
36,749.2 39,014.1* 37,104.1* 37,385.4* 38,101.2* 39,014.1* 39,590.2*
40,121.3
41,039.1
61
62
63
64
65
66 Total identified to sectors as assets
(-)
1. D a t a in this table also a p p e a r in the B o a r d ' s Z . l (780) quarterly statistical
r e l e a s e , tables L . 6 a n d L . 7 . F o r o r d e r i n g a d d r e s s , see inside f r o n t c o v e r .
2. E x c l u d e s c o r p o r a t e equities a n d m u t u a l f u n d s h a r e s ,
Selected Measures
2.10
N O N F I N A N C I A L B U S I N E S S ACTIVITY
A45
Selected Measures
Monthly data seasonally adjusted, and indexes 1987=100, except as noted
1994
1993
Measure
1991
1992r
1993
June
July
Aug.
Sept.*
Oct.*
Nov.*
Dec.*
Jan.
Feb.
104.1
106.5
110.9*
110.4*
110.9*
ni.r
111.3
111.9
112.8
114.0
114.6
115.1
3
4
5
6
7 Materials
103.2r
105.3
102.8
108.9
96.8 r
105.4 r
105.7r
108.0*
105.7r
111,2r
99.0*
107.7*
110.2
112.7*
108.7*
118.5*
102.6*
111.9*
109.6*
112.1*
108.1*
118.0*
101.8*
111.7*
110.4*
112.8*
108.9*
118.5*
102.9*
111.7*
110.4*
112.7*
108.6*
118.6*
103.3*
112.1*
110.6
113.1
108.5
119.8
103.0
112.2
111.2
113.8
109.2
120.4
103.5
112.8
112.1
114.6
109.7
121.8
104.3
113.9
113.0
115.5
110.1
123.3
105.4
115.5
113.6
116.1
110.5
124.1
105.9
116.1
114.0
116.8
111.0
125.2
105.5
116.7
Industry groupings
8 Manufacturing
103.7
106.8*
111.7*
111.2*
111.6
111.8*
112.1
112.9
114.0
115.4
115.6
116.3
1 Industrial production 1
?
Market groupings
Products, total
Final, total
Consumer goods
Equipment
9 Capacity utilization, manufacturing
(percent) 2
77.8
78.6*
80.6*
80.3*
80.3*
80.4
80.8
81.5
82.3
82.3
82.6
89.7
97.7
99.4*
104.0
98.0
99.0
101.0
103.0
105.0
102.0
103.0
107.0
11 Nonagricultural employment, total 4
Goods-producing, total
1?
Manufacturing, total
n
Manufacturing, production workers . . .
14
15
Service-producing
16 Personal income, total
17
Wages and salary disbursements
Manufacturing
18
19
Disposable personal income
Retail
sales
20
106.2
96.6
97.1
96.0*
109.4r
127.6
124.5
113.7
128.6
121. 1*
106.4
94.9
95.8
94.5*
110.5*
135.3
131.5
117.8
136.8
126.9*
108.1
93.1
93.7
93.7
112.8
141.7
136.2
117.8
143.1
135.2*
108.0
93.0
93.5
93.5
112.8
141.3
136.5
118.0
142.6
134.4*
108.2
93.0
93.5
93.5
113.1
141.1
137.2
118.2
142.3
135.0*
108.2
92.8
93.3
93.2
113.1
142.9
138.2
118.6
144.1
136.0*
108.4
92.8
93.2
93.2
113.4
143.1
138.0
119.1
144.4
136.0
108.5
93.0
93.2
93.3
113.5
144.2
138.8
119.1
145.5
138.7
108.8
93.2
93.4
93.6
113.7
145.0
139.2
119.9
146.4
139.6
109.0
93.3
93.4
93.7
114.0
146.0
139.8
120.7
147.3
141.1
109.0
93.3
93.5
94.0
114.0
145.6
141.3
120.7
146.6
139.1
109.2
93.2
93.6
94.2
114.3
n.a.
n.a.
n.a.
n.a.
141.2
Prices7
71 Consumer (1982-84=100)
22 Producer finished goods (1982=100)
136.2
121.7
140.3
123.2
144.5
124.7
144.4
125.5
144.4
125.3
144.8
124.2
145.1
123.8
145.7
124.6
145.8
124.4
145.8
124.1
146.2
124.4
146.7
124.8
10 Construction contracts 3
80.1*
1. A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the
Federal Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other
sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Company, F.W. Dodge Division.
4. Based on data from U.S. Department of Labor, Employment and Earnings.
Series covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current
Business.
2.11
6. Based on data from U.S. Department of Commerce, Survey of Current
Business.
7. Based on data not seasonally adjusted. Seasonally adjusted data f o r changes
in the price indexes can be obtained from the U.S. Department of Labor, Bureau
of Labor Statistics, Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4, 5,and 6, and
indexes for series mentioned in notes 3 and 7 can also be found in the Survey of
Current Business.
Figures for industrial production for the latest month are preliminary, and many
figures for the three months preceding the latest month have been revised. See
"Recent Developments in Industrial Capacity and Utilization," Federal Reserve
Bulletin, vol. 76 (June 1990), pp. 411-35. See also "Industrial Production Capacity
and Capacity Utilization since 1987," Federal Reserve Bulletin, vol. 79, (June
1993), pp. 590-605.
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted except as noted
1994
1993*
Category
1991*
1992*
1993*
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
HOUSEHOLD SURVEY DATA1
1 Civilian labor force 1
125,303
126,982
128,040
128,102
128,334
128,108
128,580
128,662
128,898
130,667
130,776
?
114,644
3,233
114,391
3,207
116,232
3,074
116,327
3,043
116,687
3,005
116,475
3,093
116,920
3,021
117,218
3,114
117,565
3,096
118,639
3,331
118,867
3,391
8,426
6.7
9,384
7.4
8,734
6.8
8,732
6.8
8,642
6.7
8,540
6.7
8,639
6.7
8,330
6.5
8,237
6.4
8,696
6.7
8,518
6.5
108,256
108,519
110,171
110,338
110,305
110,502
110,664
110,880
111,110
111,108
111,325
18,455
689
4,650
5,762
25,365
6,646
28,336
18,402
18,192
631
4,471
5,709
25,391
6,571
29,053
18,653
17,804
599
4,571
5,710
25,849
6,605
30,193
18,841
17,760
595
4,593
5,709
25,916
6,604
30,320
18,841
17,718
592
4,593
5,690
25,902
6,602
30,381
18,827
17,698
596
4,592
5,692
25,953
6,616
30,433
18,922
17,709
596
4,629
5,693
25,968
6,632
30,534
18,903
17,735
595
4,664
5,700
25,982
6,651
30,649
18,904
17,738
605
4,665
5,697
26,082
6,660
30,709
18,954
17,768
602
4,645
5,705
26,097
6,666
30,688
18,937
17,780
602
4,623
5,717
26,169
6,681
30,809
18,944
3
4
5
Nonagricultural industries 3
Agriculture
Unemployment
Number
Rate (percent of civilian labor force)
ESTABLISHMENT SURVEY DATA
6 Nonagricultural payroll employment 4
7 Manufacturing
8
9 Contract construction
in Transportation and public utilities
II
i?
n
14 Government
1. Beginning January 1994, reflects redesign of current population survey and
population controls from the 1990 census.
2. Persons sixteen years of age and older, including Resident Armed Forces.
Monthly figures are based on sample data collected during the calendar week that
contains the twelfth day; annual data are averages of monthly figures. By
definition, seasonality does not exist in population figures.
2. Includes self-employed, unpaid family, and domestic service workers.
3. Includes all full- and part-time employees who worked during, or received
pay for, the pay period that includes the twelfth day of the month; excludes
proprietors, self-employed persons, household and unpaid family workers, and
members of the armed forces. Data are adjusted to the March 1992 benchmark,
and only seasonally adjusted data are available at this time.
SOURCE. Based on data from U.S. Department of Labor, Employment
and
Earnings.
A46 Domestic Nonfinancial Statistics • May 1994
2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1993r
Ql
Q2
1993r
1993r
Q3
Q4
Output (1987=100)
Ql
Q2
Q4
Q3
Q2
Ql
Q4
Q3
Capacity utilization rate (percent) 2
Capacity (percent of 1987 output)
1 Total industry
109.7
110.3
111.1
112.9
135.3
135.9
136.5
137.2
81.1
81.2
81.4
2 Manufacturing
110.3
111.2
111.8
114.1
137.7
138.4
139.2
140.0
80.1
80.3
80.3
81.5
Primary processing 3
Advanced processing
106.1
112.3
107.0
113.2
107.7
113.8
109.9
116.1
127.6
142.5
127.9
143.4
128.3
144.4
128.6
145.4
83.1
78.8
83.6
78.9
83.9
78.8
85.5
79.9
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment .
112.0
99.8
105.1
109.3
99.4
134.8
122.8
121.7
113.2
98.0
105.2
109.7
99.0
141.7
125.9
118.1
114.2
100.8
106.7
112.3
98.9
147.2
129.7
112.0
118.1
105.1
109.6
115.5
101.4
152.7
132.6
131.7
143.5
114.6
123.7
128.0
117.7
170.6
151.8
152.1
144.5
114.8
123.3
127.4
117.6
173.1
153.8
153.4
145.4
115.0
123.0
126.9
117.6
175.7
155.7
154.8
146.3
115.2
122.6
126.3
117.6
178.2
157.7
156.1
78.1
87.1
85.0
85.4
84.4
79.0
80.9
80.0
78.4
85.4
85.3
86.1
84.1
81.8
81.9
76.9
78.5
87.6
86.8
88.6
84.1
83.8
83.2
72.3
80.7
91.2
89.4
91.5
86.2
85.7
84.0
84.4
92.7
90.3
87.4
85.3
134.1
133.7
133.2
132.8
69.1
67.6
65.6
64.2
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
108.1
107.2
110.5
116.2
111.5
103.9
108.7
108.4
113.2
117.7
112.8
104.0
108.9
108.0
111.7
118.6
111.5
104.0
109.1
107.6
114.3
118.6
113.9
107.6
130.5
118.3
123.8
144.3
129.2
115.9
131.0
118.8
124.3
145.1
130.1
115.8
131.6
119.4
124.8
145.9
131.1
115.7
132.1
119.9
125.3
146.8
132.0
115.6
82.8
90.6
89.2
80.5
86.3
89.6
83.0
91.3
91.1
81.2
86.7
89.8
82.8
90.5
89.6
81.2
85.1
89.9
82.6
89.7
91.3
80.8
86.3
93.1
97.4
116.0
115.2
97.5
114.1
114.8
96.8
117.5
118.0
97.4
115.8
114.8
111.7
133.3
130.4
111.4
133.6
130.8
111.1
134.0
131.2
110.8
134.3
131.7
87.2
87.0
88.4
87.5
85.4
87.7
87.1
87.8
89.9
87.9
86.2
87.2
1975
Previous cycle 2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 Mining
21 Utilities
22
Electric
1973
High
Low
High
Low
Latest cycle 3
High
Low
1993
Feb.
1994
1993
Sept.
Oct.
82.3
Nov.
r
Dec/
Jan/
Feb."
Capacity utilization rate (percent) 2
1 Total industry
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
82.7
87.3
71.8
84.8
78.3
81.2
81.4 r
81.7 r
82.2
83.0
83.3
83.4
r
80.8 r
81.5
82.3
82.3
82.6
99.0
82.7
87.3
70.0
85.1
76.6
80.2
80.4
Primary processing 3
Advanced processing
99.0
99.0
82.7
82.7
89.7
86.3
66.8
71.4
89.1
83.3
77.9
76.1
83.4
78.8
83.9*
78.9*
84.4 r
79.3 r
85.5
79.8
86.4
80.5
86.0
80.7
86.1
81.1
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts . . . .
Aerospace and miscellaneous
transportation equipment.
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
82.7
82.7
82.7
82.7
82.7
82.7
82.7
82.7
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
83.9
93.3
92.9
95.7
88.9
83.7
84.9
84.5
73.8
76.8
74.3
72.3
75.9
73.0
76.8
57.9
78.1
88.4
86.6
87.0
86.1
78.6
81.0
80.1
79.0 1
88.4 r
87.3 r
88.7 r
85.3 r
84. l r
83.7 r
74.2 r
79.6 r
90.9 r
86.5 r
89.6 r
81.8 r
84.7 r
83.6 r
79.7 r
80.6
91.0
89.5
90.6
88.0
85.3
83.7
84.8
81.9
91.7
92.1
94.3
88.8
87.0
84.7
88.5
82.1
91.4
90.6
91.0
90.0
87.5
84.9
90.0
82.6
90.4
91.0
91.7
89.8
87.9
85.1
94.5
99.0
82.7
81.1
66.9
88.3
78.1
69.4
65. l r
64.3 r
r
2 Manufacturing
3
4
99.0
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
20 Mining
21 Utilities
Electric
22
64.5
63.9
63.0
62.4
99.0
99.0
99.0
99.0
99.0
99.0
82.7
82.7
82.7
82.7
82.7
82.7
87.0
91.7
94.2
85.1
90.9
89.5
76.9
73.8
82.0
70.1
63.4
68.2
86.8
92.1
94.9
85.9
97.0
88.5
80.4
78.7
86.0
78.5
75.5
84.2
82.9
90.6
89.3
80.0
85.6
89.8
82.4
89.2 r
89.2 r
80.9*
84.6 r
91.0*
82.5 r
90.0*
90. l r
80.4
84.4 r
93.6
82.6
90.0
91.4
81.0
85.2
93.3
82.8
89.1
92.3
81.1
89.2
92.3
82.6
89.3
90.5
81.3
82.6
88.6
92.3
80.8
92.5
92.6
99.0
99.0
99.0
82.7
82.7
82.7
96.6
88.3
88.3
80.6
76.2
78.7
87.0
92.6
94.8
86.8
83.4
87.4
86.9
88.1
89.4
87.7 r
86.7
88. r
88.4
85.6 r
86.5 r
87.5
86.4
87.5
87.8
86.7
87.6
88.6
89.7
90.3
89.4
88.4
89.0
1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover. For a detailed description of
the series, see "Recent Developments in Industrial Capacity and Utilization,"
Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35. See also "Industrial
Production Capacity and Capacity Utilization Since 1987," Federal Reserve
Bulletin, vol. 79, (June 1993), pp. 590-605.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's
seasonally adjusted index of industrial production to the corresponding index of
capacity.
3. Primary processing includes textiles; lumber; paper; industrial chemicals;
petroleum refining; rubber and plastics; stone, clay, and glass; and primary and
fabricated metals.
4. Advanced processing includes food, tobacco, apparel, furniture, printing,
chemical products such as drugs and toiletries, leather and products, machinery,
transportation equipment, instruments, miscellaneous manufacturing, and ordnance.
5. Monthly highs, 1978 through 1980; monthly lows, 1982.
6. Monthly highs, 1988-89; monthly lows, 1990-91.
Selected Measures
2.13 INDUSTRIAL PRODUCTION
A47
Indexes and Gross Value1
Monthly data seasonally adjusted
portion
1993
1992
1987
Group
1993
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.r
Sept.r
Oct.r
Nov.r
Dec.p
I n d e x (1987 = 100)
MAJOR MARKETS
1 Total index
?
3
4
5
6
7
8
9
10
11
1?
H
14
15
16
17
18
19
70
71
22
73
?4
75
76
">7
?8
79
30
31
3?
33
34
35
36
37
38
39
40
41
4?
43
44
45
46
47
48
49
50
Final p r o d u c t s
C o n s u m e r g o o d s , total
D u r a b l e c o n s u m e r goods
Automotive products
Autos and trucks
Autos, consumer
Trucks, consumer
A u t o parts and allied g o o d s . . .
Other
Appliances, A/C, a n d T V
Carpeting and f u r n i t u r e
Miscellaneous h o m e goods . . .
N o n d u r a b l e c o n s u m e r goods
F o o d s and t o b a c c o
Clothing
Chemical p r o d u c t s
Paper p r o d u c t s
Energy
Fuels
Residential utilities
Equipment
Business e q u i p m e n t
Information processing and related . .
Office a n d c o m p u t i n g
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
I n t e r m e d i a t e p r o d u c t s , total
C o n s t r u c t i o n supplies
B u s i n e s s supplies
D u r a b l e g o o d s materials
D u r a b l e c o n s u m e r parts
E q u i p m e n t parts
Other
B a s i c metal materials
N o n d u r a b l e g o o d s materials
Textile materials
Pulp and p a p e r materials
Other
E n e r g y materials
Primary energy
C o n v e r t e d fuel materials
100.0
111.0
108.9
109.3
109.9
110.1
110.4
110.2
110.5
110.8
111.0
111.4
112.1
113.2
114.0
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
110.2
113.5
108.1
111.3
110.6
112.2
86.1
157.3
108.0
111.9
122.9
107.8
108.3
107.2
104.5
93.7
123.3
100.9
114.0
108.3
116.2
108.2
111.5
107.5
107.9
108.7
111.7
86.9
154.6
103.8
107.2
110.5
105.4
106.6
107.4
104.8
96.0
121.7
100.9
114.4
106.1
117.5
108.5
111.9
107.6
110.9
112.7
116.8
86.6
169.1
105.8
109.3
116.0
105.5
108.0
106.7
104.6
95.7
122.4
100.2
109.5
106.5
110.7
109.2
112.4
108.5
111.3
111.9
114.6
90.2
156.9
107.4
110.7
117.6
106.7
109.5
107.7
105.5
95.0
121.1
101.8
115.5
108.9
118.0
109.5
112.7
108.6
111.5
111.2
113.4
90.5
153.1
107.5
111.7
125.0
104.5
108.9
107.7
104.3
94.6
123.7
102.1
116.0
107.1
119.5
109.6
112.8
108.1
112.2
112.1
114.3
90.2
155.9
108.5
112.3
124.3
106.2
109.6
106.9
103.9
94.9
123.1
101.7
111.5
106.6
113.4
109.3
112.5
107.3
110.8
109.7
110.1
86.5
150.9
109.1
111.8
121.1
108.9
108.4
106.3
104.3
94.2
122.6
101.8
107.4
106.5
107.7
109.4
112.7
107.3
107.9
105.3
105.0
83.5
142.3
105.8
110.2
116.1
109.1
107.6
107.2
104.7
94.6
123.0
102.6
110.4
105.8
112.2
110.0
113.2
107.7
108.6
103.3
100.3
78.2
138.6
108.4
113.2
127.3
109.9
107.4
107.4
104.9
93.6
124.0
101.3
112.9
105.0
116.0
110.3
113.5
107.8
107.9
103.0
99.2
71.8
146.7
109.3
112.2
123.8
108.3
108.1
107.8
105.5
93.3
123.8
100.8
114.7
104.0
118.9
110.5
113.8
107.4
109.3
105.6
104.1
75.4
153.9
108.1
112.5
125.9
107.3
108.2
106.9
104.2
92.6
124.0
100.8
112.9
108.2
114.7
111.4
114.8
108.6
113.4
112.9
114.9
85.2
166.4
109.5
113.8
129.6
109.0
108.0
107.3
104.8
92.6
123.0
101.3
114.6
113.1
115.1
112.4
115.9
109.6
117.0
119.5
124.9
95.4
176.0
110.4
114.9
131.9
108.6
109.3
107.4
104.5
92.9
124.2
100.6
115.4
114.6
115.7
113.0
116.6
109.8
118.6
123.4
131.5
98.8
188.0
109.9
114.4
128.5
109.4
109.6
107.2
104.4
92.5
124.3
99.4
115.7
112.0
117.1
20.0
13.9
5.6
1.9
4.0
2.5
1.2
1.9
5.4
.6
.2
121.2
137.0
156.2
223.6
115.8
141.2
134.5
119.1
78.7
82.5
117.2
129.6
143.2
186.4
112.3
144.1
131.4
109.2
82.5
91.2
128.6
118.1
131.2
144.4
192.0
113.1
146.7
136.7
112.6
82.0
89.0
129.4
118.0
131.7
146.1
198.0
112.2
146.5
136.8
113.4
81.5
77.9
127.1
118.7
133.4
149.1
203.3
113.7
145.0
135.8
114.9
80.7
71.1
116.2
119.7
134.8
150.6
209.5
115.0
145.0
136.2
117.5
80.5
72.4
114.9
119.9
135.4
153.5
216.5
115.0
142.5
133.1
116.2
79.5
75.1
112.1
120.4
136.1
155.7
221.0
115.6
138.0
127.2
117.6
78.6
82.4
113.6
121.2
137.1
158.2
226.5
117.2
133.2
118.9
119.6
78.6
81.0
118.5
121.6
137.6
158.8
232.0
117.3
132.5
119.6
121.9
78.0
87.8
116.2
122.9
139.4
161.5
237.1
117.8
135.3
126.5
123.1
77.5
90.5
120.6
123.8
140.8
162.3
241.8
117.6
141.3
139.6
124.5
76.9
88.9
127.7
125.2
142.9
164.9
247.9
118.5
145.7
150.5
125.0
76.6
85.7
138.4
126.6
144.9
168.2
255.0
119.5
147.7
154.9
125.5
76.1
85.0
14.7
6.0
8.7
100.1
98.1
101.5
98.3
94.5
100.8
98.2
94.8
100.5
99.3
97.5
100.5
99.6
96.4
101.8
100.0
96.4
102.5
99.7
97.7
101.0
99.4
96.8
101.1
100.4
98.4
101.7
100.6
98.7
101.8
100.4
99.3
101.2
101.0
99.9
101.6
101.8
100.7
102.5
101.9
101.3
102.2
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
112.2
116.0
112.7
125.1
109.9
111.4
114.0
104.0
113.3
117.5
113.8
103.5
98.8
112.6
110.0
111.9
107.5
119.7
107.5
108.8
111.5
102.9
110.7
114.6
111.3
105.1
101.3
112.4
110.4
113.3
110.8
120.4
108.6
110.4
112.4
104.2
110.7
114.9
114.1
103.4
100.4
109.1
110.9
114.2
111.8
121.0
109.7
113.2
112.1
103.2
111.9
114.6
112.5
103.8
98.3
114.6
110.9
114.1
112.2
121.3
108.9
109.9
112.8
104.2
112.8
115.6
112.6
103.5
97.4
115.4
111.5
114.9
112.6
122.7
109.5
110.3
113.8
102.7
115.3
116.1
114.2
103.4
99.9
110.3
111.6
114.8
111.6
123.5
109.2
111.1
114.1
104.3
114.1
117.2
113.6
103.4
101.6
106.8
112.1
114.9
110.2
124.1
109.4
111.3
114.8
104.9
115.9
118.6
112.3
104.6
100.9
111.7
112.0
115.4
109.8
124.9
110.2
111.3
114.2
105.9
113.4
117.3
114.0
103.7
98.2
114.5
112.2
115.8
110.3
126.2
109.7
109.7
115.2
105.6
113.5
119.5
114.2
102.8
96.7
114.9
112.7
117.2
112.0
128.0
110.6
110.8
113.8
102.9
112.6
117.9
113.3
103.3
98.7
112.4
113.2
118.2
114.2
129.2
110.8
112.2
114.4
103.9
112.1
118.0
115.8
102.9
97.9
112.7
114.3
119.7
118.6
129.6
111.9
112.8
115.5
104.1
114.2
119.1
116.7
103.0
97.6
113.8
115.5
121.7
123.6
131.5
112.8
114.3
115.3
104.2
113.1
119.8
115.6
103.9
98.5
114.4
97.3
95.3
110.7
110.5
108.6
108.6
108.9
108.7
109.5
109.3
109.7
109.6
110.1
109.9
110.0
109.8
110.4
110.3
110.9
110.9
111.1
111.1
111.3
111.2
111.8
111.5
112.6
112.2
113.2
112.7
97.5
108.3
107.1
107.3
107.8
107.8
108.0
107.7
107.8
108.1
108.1
108.4
109.0
110.0
110.6
24.5
23.3
107.8
107.5
107.3
106.8
107.0
107.4
108.1
107.7
108.2
107.7
107.6
107.6
107.1
107.3
107.5
107.0
108.2
107.1
108.4
107.0
107.7
106.8
108.2
108.0
108.5
108.9
108.2
109.1
SPECIAL AGGREGATES
51 Total excluding a u t o s and t r u c k s
52 Total excluding motor vehicles and parts . . .
53 Total excluding office a n d c o m p u t i n g
machines
54 C o n s u m e r g o o d s excluding a u t o s a n d
55 C o n s u m e r goods e x c l u d i n g e n e r g y
56 B u s i n e s s e q u i p m e n t excluding a u t o s a n d
trucks
57 Business e q u i p m e n t excluding office and
computing equipment
58 Materials excluding energy
12.7
137.2
129.5
130.7
131.3
133.2
134.6
135.6
136.8
138.7
139.1
140.6
140.9
142.2
144.1
12.0
28.4
122.4
115.4
120.1
111.8
121.0
113.0
120.6
113.6
121.6
113.7
122.2
114.6
121.8
114.6
121.8
114.9
122.1
115.1
121.7
115.6
123.0
116.1
123.8
117.0
125.2
118.4
126.4
119.8
A48
Domestic Nonfinancial Statistics • May 1994
2.13 INDUSTRIAL PRODUCTION
„
Uroup
1987
proportion
SIC
code
Indexes and Gross Value1—Continued
1992
1993
1993
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. r
Sept. r
Oct/
Nov/
Dec.p
Index (1987 = 100)
MAJOR INDUSTRIES
59 Total index
100.0
60 Manufacturing
Primary processing
61
Advanced processing
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
111.0
109.3
109.9
110.1
110.4
110.2
110.5
110.8
111.0
111.4
112.1
113.2
114.0
109.2
105.0
111.3
109.9
105.8
111.9
110.5
106.9
112.2
110.8
106.4
112.9
111.4
107.1
113.4
111.3
107.1
113.3
111.3
107.5
113.0
111.6
107.6
113.5
111.9
108.0
113.7
112.3
107.6
114.5
113.2
108.2
115.6
114.5
109.5
116.8
115.3
109.9
117.8
115.9
100.0
109.4
111.8
98.0
103.9
112.9
99.3
105.2
113.8
101.8
106.0
114.1
98.0
107.3
115.0
98.1
108.8
114.9
97.4
108.4
114.6
96.5
109.5
115.4
99.1
111.1
115.7
99.9
111.1
117.0
100.7
111.3
118.3
104.0
111.4
120.1
104.2
111.5
121.7
104.6
110.9
2.4
3.3
1.9
.1
1.4
100.5
105.5
110.5
97.0
102.8
107.0
103.4
97.1
98.9
108.0
112.9
105.9
101.4
98.6
104.2
107.6
102.0
99.4
99.8
104.4
108.4
102.6
98.9
99.6
104.2
108.1
105.1
98.9
100.5
105.7
110.9
106.8
98.5
100.8
105.3
111.9
108.2
96.3
100.9
106.2
112.1
106.2
98.0
102.4
106.0
111.1
105.3
98.9
101.4
105.0
112.4
106.7
94.9
102.9
107.1
111.1
106.8
101.6
103.0
109.1
114.6
98!6
98.0
102.4
107.4
104.6
95.7
5.4
100.9
97.8
99.8
99.7
100.3
101.4
100.6
100.1
101.2
101.0
100.9
101.6
102.7
103.3
84.3
27.1
57.1
111.9
107.5
113.9
Durable goods
Lumber and p r o d u c t s . . .
"'24
Furniture and fixtures...
25
Clay, glass, and stone
products
32
Primary metals
33
Iron and steel
331,2
Raw steel
Nonferrous
333-6,9
Fabricated metal
products
34
Industrial and commercial
machinery and
computer equipment .
35
Office and computing
machines
357
Electrical machinery
36
Transportation
equipment
37
Motor vehicles and
371
parts
Autos and light
trucks
Aerospace and miscellaneous transportation equipment... 3 7 2 - 6 , 9
Instruments
38
Miscellaneous
39
46.5
2.1
1.5
Nondurable goods
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing..
Chemicals and products.
Petroleum products
Rubber and plastic
products
Leather and products . . .
92 Mining
93
Metal
94
Coal
Oil and gas extraction
95
% Stone and earth minerals . .
97 Utilities
Electric
98
99 Gas
"20
21
22
23
26
27
28
29
30
31
10
11,12
13
14
49L3PT
492,3PT
108.9
101.6
8.5
146.8
133.8
135.0
136.7
139.6
142.8
144.2
145.4
148.5
149.9
152.1
153.7
156.2
158.8
2.3
6.9
223.6
131.7
186.4
124.8
192.0
125.8
198.0
127.1
203.3
128.5
209.5
129.0
216.5
129.7
221.0
130.1
226.5
132.3
232.0
133.5
237.1
135.2
241.8
136.0
247.9
137.2
255.0
138.7
9.9
105.6
106.3
108.4
107.8
106.9
106.9
105.5
102.6
100.8
100.4
102.4
106.3
110.0
112.7
4.8
120.1
116.2
120.9
120.7
120.1
120.4
118.1
114.3
110.1
110.0
115.0
124.1
132.3
138.8
2.2
114.9
114.4
118.2
117.8
116.9
117.5
113.1
108.2
102.8
104.0
104.8
116.3
127.3
133.5
5.1
5.1
1.3
92.0
102.2
113.1
97.1
103.3
111.8
96.7
103.0
110.9
95.8
102.2
111.9
94.6
103.3
112.6
94.2
102.6
114.3
93.7
102.5
113.1
91.8
102.5
112.1
92.0
102.8
112.3
91.3
101.3
112.5
90.5
102.0
114.3
89.5
101.7
113.7
89.0
101.5
114.3
88.2
102.1
115.1
37.8
8.8
1.0
1.8
2.3
3.6
6.5
8.8
1.3
106.8
106.9
91.1
106.3
90.8
112.0
94.1
118.3
104.8
106.0
106.2
96.1
106.0
92.7
108.3
94.7
116.7
103.4
106.4
105.9
100.5
106.9
93.1
108.6
94.7
116.8
103.2
106.4
106.9
99.3
106.2
92.5
110.4
94.0
116.2
104.7
106.6
106.7
92.4
105.4
92.1
111.1
94.7
117.6
104.7
106.9
106.7
90.2
104.2
92.0
113.1
95.6
117.8
104.3
106.9
106.7
92.1
106.9
91.2
112.1
94.7
118.1
103.6
107.2
107.1
89.1
107.1
91.1
114.2
94.5
119.1
103.9
107.0
107.2
91.5
107.7
90.7
112.0
93.8
118.7
102.5
107.3
107.8
92.7
107.4
90.6
113.1
93.4
119.1
102.4
106.5
107.3
85.8
105.4
89.6
111.2
93.8
118.5
104.3
107.0
107.8
88.2
106.6
89.4
111.8
94.3
118.1
107.9
107.6
107.2
89.1
106.3
90.0
113.8
94.4
119.6
108.2
107.4
107.0
88.7
106.8
89.7
112.8
93.3
120.0
107.1
3.2
113.7
98.1
111.3
96.7
113.6
97.1
112.7
99.0
112.9
99.1
113.6
100.1
113.8
98.2
112.8
97.0
114.7
96.8
114.8
97.0
113.9
98.2
113.9
99.1
115.4
99.3
116.4
99.4
.7
97.0
165.5
103.6
92.0
93.9
98.2
158.1
107.9
93.4
92.6
98.3
167.7
108.2
92.7
93.8
95.9
163.0
101.7
90.9
95.2
95.3
158.2
102.3
90.4
93.4
96.4
162.5
108.2
90.5
92.3
97.3
169.3
106.4
91.6
94.0
98.0
164.4
106.7
93.1
91.7
96.4
167.7
101.0
91.6
93.2
95.5
148.2
95.9
92.4
94.7
97.7
161.5
103.9
93.0
95.0
98.2
178.5
104.7
92.7
94.3
97.4
172.0
100.7
92.6
95.9
97.9
172.8
104.0
92.6
94.5
7.7
6.1
1.6
116.0
115.7
116.9
116.8
116.4
118.2
112.8
112.9
112.4
117.5
116.5
121.4
117.8
116.3
123.3
114.4
114.5
113.9
112.1
114.0
104.9
114.9
115.6
112.2
116.9
118.1
112.4
117.7
118.9
113.3
115.3
115.1
116.0
114.6
113.6
118.2
115.4
114.8
117.8
116.6
116.1
118.6
79.5
111.4
108.8
109.3
109.8
110.2
110.8
110.9
111.1
111.7
112.0
112.1
112.6
113.4
113.8
81.9
108.7
107.0
107.6
108.0
108.1
108.6
108.3
108.1
108.3
108.5
108.7
109.5
110.7
111.3
.3
8.0
.3
1.2
5.8
SPECIAL AGGREGATES
100 Manufacturing excluding
motor vehicles and
parts
101 Manufacturing excluding
office and computing
machines
Gross value (billions of 1987 dollars, annual rates)
MAJOR MARKETS
102 Products, total
1,707.0 1,890.0 1,857.5 1,864.9 1,880.2 1,880.3 1,882.8 1,872.6 1,873.2 1,877.4 1,879.3 1,887.2 1,914.3 1,938.2 1,947.2
103 Final
104 Consumer goods
Equipment
105
106 Intermediate
1,314.6 1,492.5 1,466.8 1,476.4 1,485.7 1,484.3 1,485.6 1,477.9 1,477.5 1,479.0 1,480.5 1,489.1 1,513.4 1,534.3 1,542.1
866.6
949.4
944.8
936.3
940.0
946.1
943.6
936.1
935.5
936.7
935.5
935.6
965.7
966.6
953.8
448.0
547.6
530.5
536.5
536.3
538.2
541.9
541.8
543.4
552.4
541.9
544.9
559.6
568.7
575.5
392.5
397.6
390.7
388.4
394.5
396.0
394.7
395.7
397.3
398.4
398.8
401.0
403.9
405.1
398.1
1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover.
A revision of the industrial production index and the capacity utilization rates
was released in May 1993. See "Industrial Production, Capacity, and Capacity
Utilization since 1987," Federal Reserve Bulletin, vol. 79 (June 1993), pp. 590-605.
2. Standard industrial classification.
Selected Measures
2.14
A49
HOUSING A N D CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1994
1993
Item
1991
1992
1993
Apr.
May
June
July
Aug.
Sept.
Oct."
Nov."
Dec.
Jan.
1,476
1,198
278
1,612
1,383
229
713
1,358
1,115
243
1,258
1,110
148
722
Private residential real estate activity (thousands of units except as noted)
NEW UNITS
1
2
3
4
5
6
7
8
9
10
11
12
13
Permits authorized
One-family
Two-or-more-family
Started
One-family
Two-or-more-family
Under construction at end of period 1 ..
One-family
Two-or-more-family
Completed
One-family
Two-or-more-family
Mobile homes shipped
Merchant builder activity in
one-family units
14 Number sold
15 Number for sale at end of period 1 . . .
Price of units sold
of dollars)
16 Median
17 Average
949
754
195
1,014
840
174
606
434
173
1,091
838
1,095
911
184
1,200
1,030
169
612
473
140
1,158
1,232R
1,082R
1,121
919
202
1,115
925
190
1,162
977
185
1,242
1,015
227
1,271
1,047
224
1,241"
1,100"
1,238"
1,067"
1,245"
1,076"
1,319"
1,178"
1,359"
1,160"
150"
637
506
141
646"
515
131"
1,137"
169"
658
526"
132"
141"
662
534
128
199"
678
1,168"
153
254
131
l,212 R
l,064 r
148r
240r
171"
649
518"
131"
235"
171
238"
1,097"
955"
142"
246"
1,248"
1,068"
180"
247"
1,172"
1,041"
131"
254"
635"
273"
641
274
647
277"
645"
286
1,206
998
208
1,288
1,126
162
681
544
137
1,193
1,040
1,101
925
176
544"
1,304
1,097
207
1,409
1,231
178
686
1,374
1,145
229
1,406
1,248
158
699
582
551
135
564
135
575
138
1,248
1,248
1,291
1,081
1,107
141
283
1,141
150
308
1,057
167
260
738"
288"
723
291
766
294
822
296
637
300
134"
140
1,193
253
171
964
194
210
507
284
610
266
666
296
685r
271
120.0
147.0
121.3
144.9
126.1
147.6
127.0
148.4
129.9
152.3
124.5
145.7
123.9
143.4
126.6
150.6
129.4
150.1"
125.0
146.9
130.0
152.5
125.0
145.8
126.5
154.4
3,219
3,520
3,800
3,460"
3,610"
3,700"
3,850"
3,860"
3,990"
4,030
4,120
4,350
4,250
99.7
127.4
103.6
130.8
106.5
133.1
105.5r
132.7"
106.5
132.6"
109.2"
137.3"
108.4"
135.8"
108.8"
135.4"
107.2
133.6"
106.6
133.0
107.1
133.1
107.4
133.7
107.9
134.6
992"
145"
997"
136
316
(thousands
EXISTING UNITS (one-family)
18 Number sold
Price of units sold
of dollars)2
19 Median
20 Average
(thousands
Value of new construction (millions of dollars) 3
CONSTRUCTION
21 Total put in place
403,439
436,043
470,420
449,054
453,256
460,680
466,593
468,547
477,125
489,660
499,765
511,678
505,486
77 Private
73
Residential
Nonresidential
74
25
Industrial buildings
76
Commercial buildings
Other buildings
27
Public utilities and other
28
293,536
157,837
135,699
22,281
48,482
20,797
44,139
317,256
187,820
129,436
20,720
41,523
21,494
45,699
342,953
208,092
134,861
20,654
43,145
23,405
47,657
328,150
197,317
130,833
19,458
42,426
22,568
46,381
332,231
198,380
133,851
20,091
42,428
23,293
48,039
335,028
200,496
134,532
19,316
42,723
23,849
48,644
337,909
204,631
133,278
19,799
41,524
23,817
48,138
341,351
206,594
134,757
20,126
42,342
25,047
47,242
345,572
209,520
136,052
21,346
42,225
24,487
47,994
354,102
215,198
138,904
21,311
44,405
24,737
48,451
364,962
223,183
141,779
22,216
46,008
24,036
49,519
372,138
229,645
142,493
21,974
48,157
24,243
48,119
369,023
230,664
138,359
22,180
46,158
23,820
46,201
79 Public
Military
30
31
Highway
Conservation and d e v e l o p m e n t . . .
32
Other
33
109,900
1,837
32,026
4,861
71,176
118,784
2,502
34,929
5,918
75,435
127,469
2,493
37,299
6,126
81,551
120,904
2,533
34,534
5,875
77,962
121,025
2,393
34,320
6,019
78,293
125,652
2,234
37,649
6,103
79,666
128,684
2,493
37,376
5,661
83,154
127,196
2,583
35,148
5,620
83,845
131,553
2,492
39,147
6,307
83,607
135,558
2,550
40,551
5,940
86,517
134,803
2,369
41,539
6,362
84,533
139,540
2,468
41,458
6,360
89,254
136,463
2,972
42,817
6,830
83,844
1. Not at annual rates.
2. Not seasonally adjusted.
3. Recent data on value of new construction may not be strictly comparable
with data for previous periods because of changes by the Bureau of the Census in
its estimating techniques. For a description of these changes, see Construction
Reports (C-30-76-5), issued by the Census Bureau in July 1976.
SOURCE. Bureau of the Census estimates for all series except (1) mobile homes,
which are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 17,000 jurisdictions
beginning in 1984.
A50
2.15
Domestic Nonfinancial Statistics • May 1994
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 12
months earlier
Change from 3 months earlier
(annual rate)
Item
Change from 1 month earlier
1993r
1993
Feb.
Index
level,
Feb.
1994 1
19941
1993
1994
Feb.
Mar.
June
Sept.
Dec.
Oct.
Nov.
Dec.
Jan.
Feb.
CONSUMER PRICES2
(1982-84=100)
1 All items
3.2
2.5
3.1
2.5
2.0
3.3
.3 R
.3'
.2
2 Food
3 Energy items
4 All items less food and energy
Commodities
5
Services
6
1.7
3.2
3.6
2.8
4.0
2.1
-.2
2.8
.8
3.7
2.0
1.2
3.8
3.0
4.1
2.3
-3.8
3.2
.9
4.1
2.6
-4.2
2.1
.0
3.5
4.9
1.2
3.4
2.4
3.7
.5 r
1.9
.3
,2 r
.2 r
.2 r
— .9*
.4*
.3 r
.4 r
.5
-,7r
,2 r
7 Finished goods
8
Consumer foods
9
Consumer energy
Other consumer goods
10
Capital equipment
11
2.0
.9
3.5
2.2
1.9
.2
1.8
-2.6
-.5
1.8
3.9
.0
14.1
2.9
4.1
.0
1.3
-5.4
.6
.6
-2.5
3.2
-7.4
-6.4
2.2
-.3
5.2
-14.6
1.2
.9
-,lr
-,2r
,8r
-,2r
-.4
Intermediate
materials
12 Excluding foods and feeds
Excluding energy
13
2.0
1.7
.6
1.1
4.2
4.0
.3
.0
-1.0
1.0
-.7
1.6
.R
Crude materials
14 Foods
15 Energy
16 Other
.0
2.6
9.7
6.4
-13.7
10.2
1.9
-10.1
22.1
-3.0
17.5
11.2
13.1
-28.1
-4.5
15.5
-26.8
19.6
.0
.3
146.7
,3 r
-.1
-.8
.1
.0
.2
-.3
1.6
.3
-.1
.4
142.9
102.0
155.0
135.8
166.0
,lr
.9
-2.R
,4 r
.3 r
-.1
.6 r
-2.6r
,lr
.3
.2
-.3
.8
.3
.6
.5
-.4
2.8
.2
.1
124.8
126.7
74.9
138.7
133.4
.0*
.2 r
-.3
.2
.2
.2
.4
.0
116.6
124.8
4.R
-4.8r
.9
-8.9
2.3 r
-.9
3.8
1.6
1.2
-6.4
2.0
112.8
66.9
151.4
.R
PRODUCER PRICES
(1982=100)
1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a
rental-equivalence measure of homeownership.
.0
— 1.4r
6.6 r
1.3r
L.TF"
SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.
Selected Measures
2.16
A51
GROSS DOMESTIC PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1992
Account
1991
1992
1993
1993
Q4
Ql
Q2
Q3
Q4
GROSS DOMESTIC PRODUCT
5,722.9
6,038.5
6,379.4
6,194.4
6,261.6
6,327.6
6,395.9
6,532.4
3,906.4
457.8
1,257.9
2,190.7
4,139.9
497.3
1,300.9
2,341.6
4,391.9
537.9
1,351.0
2,503.0
4,256.2
516.6
1,331.7
2,407.9
4,296.2
515.3
1,335.3
2,445.5
4,359.9
531.6
1,344.8
2,483.4
4,419.1
541.9
1,352.4
2,524.8
4,492.5
562.6
1,371.5
2,558.4
736.9
745.5
555.9
182.6
373.3
189.6
7%. 5
789.1
565.5
172.6
392.9
223.6
892.8
875.8
623.4
178.9
444.5
252.4
833.3
821.3
579.5
171.1
408.3
241.8
874.1
839.5
594.7
172.4
422.2
244.9
874.1
861.0
619.1
177.6
441.6
241.9
884.0
876.3
624.9
179.1
445.8
251.3
939.0
926.4
655.0
186.5
468.5
271.4
-8.6
-8.6
7.3
2.3
17.0
22.5
12.0
9.5
34.6
33.0
13.1
16.8
7.7
22.6
12.6
17.6
-19.6
601.5
621.1
-29.6
640.5
670.1
-63.2
661.7
724.9
-38.8
654.7
693.5
-48.3
651.3
699.6
-65.1
660.0
725.0
-71.9
653.2
725.1
-67.6
682.2
749.7
17 Government purchases of goods and services
Federal
18
State and local
19
1,099.3
445.9
653.4
1,131.8
448.8
683.0
1,157.9
443.6
714.3
1,143.8
452.4
691.4
1,139.7
442.7
697.0
1,158.6
447.5
711.1
1,164.8
443.6
721.2
1,168.5
440.5
728.0
By major type of
?n Final sales, total
Goods
?i
Durable
77
73
Nondurable
Services
74
Structures
25
5,731.6
2,227.0
934.3
1,292.8
3,032.7
471.9
6,031.2
2,305.5
975.8
1,329.6
3,221.1
504.7
6,362.4
2,407.3
1,036.8
1,370.4
3,409.6
545.6
6,182.5
2,365.6
1,008.3
1,357.3
3,296.1
520.8
6,227.1
2,362.9
1,003.5
1,359.3
3,341.8
522.4
6,314.5
2,395.0
1,037.8
1,357.1
3,388.1
531.5
6,388.2
2,401.7
1,032.9
1,368.8
3,437.8
548.7
6,519.8
2,469.4
1,073.1
1,396.3
3,470.5
579.9
-8.6
-12.9
4.3
7.3
2.1
5.3
17.0
11.9
5.1
12.0
-1.2
13.2
34.6
15.0
19.5
13.1
2.7
10.4
7.7
14.8
-7.2
12.6
15.0
-2.4
4,861.4
4,986.3
5,137.7
5,068.3
5,078.2
5,102.1
5,138.3
5,232.1
30
4,598.3
4,836.6
n.a.
4,975.8
5,038.9
5,104.0
5,143.2
n.a.
31 Compensation of employees
3?
Wages and salaries
Government and government enterprises
33
Other
34
35
Supplement to wages and salaries
Employer contributions for social insurance
36
Other labor income
37
3,402.4
2,814.9
545.3
2,269.6
587.5
290.6
296.9
3,582.0
2,953.1
567.5
2,385.6
629.0
306.3
322.7
3,772.0
3,100.3
589.7
2,510.6
671.7
321.0
350.7
3,658.6
3,015.8
574.2
2,441.6
642.8
311.3
331.5
3,705.1
3,054.3
584.1
2,470.2
650.7
312.2
338.5
3,750.6
3,082.7
586.3
2,496.3
668.0
321.4
346.6
3,793.9
3,115.4
592.8
2,522.6
678.5
323.8
354.7
3,838.4
3,148.8
595.5
2,553.4
689.6
326.6
362.9
376.4
339.5
36.8
414.3
370.6
43.7
443.2
397.3
46.0
431.2
383.6
47.6
444.1
388.4
55.7
439.4
392.4
47.0
422.5
397.6
24.8
467.0
410.5
56.4
-12.8
-8.9
12.8
-1.2
7.5
12.7
13.7
17.4
458.1
445.6
-12.2
24.7
468.5
443.8
1.0
23.8
n.a.
n.a.
-4.8
23.9
443.2
444.6
n.a.
1
7
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
Fixed investment
7
Nonresidential
8
Structures
9
Producers' durable equipment
10
Residential structures
11
17
13
Change in business inventories
Nonfarm
14 Net exports of goods and services
15
Imports
16
product
76 Change in business inventories
Durable goods
27
Nondurable goods
28
MEMO
29 Total GDP in 1987 dollars
NATIONAL INCOME
1
38 proprietors' income
Business and professional 1
39
1
Farm
40
2
41 Rental income of persons
1
42 Corporate profits 3
Profits before tax
43
Inventory valuation adjustment
44
Capital consumption adjustment
45
369.5
362.3
4.9
2.2
407.2
395.4
-5.3
17.1
n.a.
n.a.
-7.2
24.3
439.5
409.9
4.9
24.7
432.1
419.8
-12.7
25.1
46 Net interest
462.8
442.0
n.a.
447.7
450.1
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey of Current
Business.
A52
2.17
Domestic Nonfinancial Statistics • May 1994
PERSONAL INCOME A N D SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1993
1992
Account
1991
1992
1993
Q4
Ql
Q2
Q3
Q4
PERSONAL INCOME AND SAVING
1 Total personal income
4,850.9
5,144.9
5,388.9
5,328.3
5,254.7
5,373.2
5,412.7
5,515.1
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises
2,815.0
738.1
557.2
648.0
883.5
545.4
2,973.1
756.5
577.6
682.0
967.0
567.5
3,080.3
763.6
577.3
706.5
1,020.6
589.7
3,095.8
783.3
602.0
709.9
1,028.4
574.2
2,974.3
740.7
559.7
682.9
966.6
584.1
3,082.7
765.1
580.3
709.1
1,022.2
586.3
3,115.4
769.4
581.5
714.4
1,038.8
592.8
3,148.8
779.3
587.7
719.4
1,054.7
595.5
296.9
376.4
339.5
36.8
-12.8
127.9
715.6
769.9
382.3
322.7
414.3
370.6
43.7
-8.9
140.4
694.3
858.4
413.9
350.7
443.2
397.3
46.0
12.8
158.3
695.8
912.0
438.4
331.5
431.2
383.6
47.6
-1.2
152.3
694.5
877.4
420.8
338.5
444.1
388.4
55.7
7.5
157.0
695.4
894.4
433.1
346.6
439.4
392.4
47.0
12.7
157.8
693.1
905.5
435.0
354.7
422.5
397.6
24.8
13.7
159.0
695.7
918.5
439.4
362.9
467.0
410.5
56.4
17.4
159.4
699.2
929.5
446.1
9 Proprietors' income 1
10
Business and professional
11
Farm 1
12 Rental income of persons
14 Personal interest income
15 Transfer payments
16
Old-age survivors, disability, and health insurance benefits . . .
17
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
237.8
249.3
264.3
253.3
256.6
264.5
266.8
269.1
4,850.9
5,144.9
5,388.9
5,328.3
5,254.7
5,373.2
5,412.7
5,515.1
620.4
644.8
681.6
670.7
657.1
681.0
689.0
699.1
20 EQUALS: Disposable personal income
4,230.5
4,500.2
4,707.4
4,657.6
4,597.5
4,692.2
4,723.7
4,816.0
21
LESS: Personal outlays
4,029.0
4,261.5
4,517.0
4,377.9
4,419.7
4,483.6
4,544.0
4,620.6
22 EQUALS: Personal saving
201.5
238.7
190.4
279.7
177.9
208.7
179.7
195.4
19,237.9
12,895.2
13,965.0
19,518.0
13,080.9
14,219.0
19,894.0
13,373.3
14,329.0
19,754.1
13,240.9
14,490.0
19,744.4
13,234.2
14,163.0
19,785.4
13,311.6
14,326.0
19,868.8
13,416.2
14,341.0
20,175.1
13,529.3
14,504.0
4.8
5.3
4.0
6.0
3.9
4.4
3.8
4.1
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1987 dollars)
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
27 Gross saving
733.7
717.8
n.a.
718.8
762.0
766.7
774.3
n.a.
28 Gross private saving
929.9
986.9
n.a.
969.4
1,024.8
988.3
988.7
n.a.
29 Personal saving
30 Undistributed corporate profits 1
31 Corporate inventory valuation adjustment
201.5
102.3
4.9
238.7
110.4
-5.3
190.4
n.a.
-7.2
279.7
121.7
4.9
177.9
103.7
-12.7
208.7
116.3
-12.2
179.7
129.3
1.0
195.4
n.a.
-4.8
Capital consumption
32 Corporate
33 Noncorporate
383.2
242.8
396.6
261.3
408.8
262.3
396.5
251.5
402.2
261.0
405.2
258.1
414.0
265.7
413.9
264.5
Federal
State and local
-196.2
-203.4
7.3
-269.1
-276.3
7.2
-224.7
-226.4
1.7
-250.6
-264.2
13.5
-262.8
-263.5
.8
-221.5
-222.6
1.1
-214.4
-212.7
-1.7
n.a.
n.a.
n.a.
37 Gross investment
743.3
741.4
n.a.
750.9
796.5
778.7
787.6
n.a.
38 Gross private domestic
39 Net foreign
736.9
6.4
796.5
-55.1
892.8
n.a.
833.3
-82.4
874.1
-77.6
874.1
-95.4
884.0
-96.4
939.0
n.a.
9.6
23.6
32.1
34.4
12.0
13.3
allowances
34 Government surplus, or deficit ( - ) , national income and
35
36
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
n.a.
SOURCE. U.S. Department of Commerce, Survey of Current
Business.
n.a.
Summary Statistics
3.10
U.S. INTERNATIONAL TRANSACTIONS
A53
Summary
Millions of dollars; quarterly data seasonally adjusted except as noted1
1993
1992
Item credits or debits
1 Balance on current account
Merchandise trade balance
Merchandise exports
3
Merchandise imports
4
5
Military transactions, net
Other service transactions, net
6
Investment income, net
7
8
U.S. government grants
9
U.S. government pensions and other transfers
Private remittances and other transfers
10
?
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )
1990
1991
1992
Q3
Q4
Ql
Q2
Q3 P
-22,308
-29,309
111,530
-140,839
-145
14,769
-37
-3,242
-978
-3,366
-27,172
-34,384
113,118
-147,502
-226
14,685
47
-2,730
-979
-3,585
-27,986
-36,279
111,912
-148,191
-341
14,448
1,748
-2,970
-976
-3,616
-91,861
-109,033
389,303
-498,336
-7,834
38,485
20,348
-17,434
-2,934
-13,459
-8,324
-73,802
416,937
-490,739
-5,851
51,733
13,021
24,073
-3,461
-14,037
-66,400
—96,138
440,138
-536,276
-2,751
59,163
6,222
-14,688
-3,735
-14,473
-17,775
-27,612
109,493
-137,105
-617
15,898
1,703
-2,783
-940
-3,424
-23,687
-25,962
113,992
-139,954
-836
14,265
-806
-5,883
-846
-3,619
2,307
2,905
-1,609
-305
-737
535
-275
-86
822
0
-166
313
675
-544
0
-118
-48
-378
-43,331
7,547
12 Change in U.S. official reserve assets (increase, - )
13
Gold
Special drawing rights (SDRs)
14
Reserve position in International Monetary Fund
15
Foreign currencies
16
-2,158
0
-192
731
-2,697
5,763
0
-177
-367
6,307
3,901
0
2,316
-2,692
4,277
1,952
0
-173
-118
2,243
1,542
0
2,829
-2,685
1,398
-983
0
-140
-228
-615
17 Change in U.S. private assets abroad (increase, - )
Bank-reported claims
18
19
Nonbank-reported claims
70
U.S. purchases of foreign securities, net
21
U.S. direct investments abroad, net
-44,280
16,027
-4,433
-28,765
-27,109
-68,643
3,278
1,932
-44,740
-29,113
-53,253
24,948
4,551
-47,961
-34,791
-12,445
6,584
-3,214
-13,787
-2,028
-31,243
-3,481
1,132
-17,405
-11,489
-11,910
28,055
-4,774
-26,889
-8,302
-29,888
5,317
443
-24,098
-11,550
—45,290
-5,588
V Change in foreign official assets in United States (increase, +) . . .
73
U.S. Treasury securities
Other U.S. government obligations
24
7,5
Other U.S. government liabilities 4
26
Other U.S. liabilities reported by U.S. banks 3
27
Other foreign official assets
34,198
29,576
667
2,156
3,385
-1,586
17,564
14,846
1,301
1,541
-1,484
1,359
40,684
18,454
3,949
2,542
16,427
-688
-7,378
-323
912
864
-7,831
-1,000
5,931
-7,379
874
943
11,219
274
10,929
1,039
710
-395
8,171
1,404
17,699
5,668
1,082
396
9,454
1,099
19,646
18,808
1,545
1,322
-2,213
184
28 Change in foreign private assets in United States (increase, + ) . . .
79
U.S. bank-reported liabilities
30
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net .
31
Foreign purchases of other U.S. securities, net
32
Foreign direct investments in United States, net
33
70,976
16,370
7,533
-2,534
1,592
48,015
65,875
-11,371
-699
18,826
35,144
23,975
88,895
18,609
741
36,893
30,274
2,378
33,828
23,647
1,553
4,870
2,730
1,028
32,914
-1,171
-2,717
21,232
12,478
3,092
14,789
-18,862
2,057
13,599
9,394
8,601
24,681
-1,381
1,361
-623
15,025
10,299
46,806
23,525
34 Allocation of special drawing rights
35 Discrepancy
36
Due to seasonal adjustment
37
Before seasonal adjustment
0
30,820
0
-15,140
0
-12,218
30,820
-15,140
-12,218
0
2,123
-6,754
8,877
0
15,280
1,222
14,058
0
8,948
5,814
3,134
0
14,133
681
13,452
0
5,495
-7,605
13,100
MEMO
Changes in official assets
38 U.S. official reserve assets (increase, - )
39 Foreign official assets in United States, excluding line 25
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22)
-2,158
5,763
3,901
1,952
1,542
-983
822
-544
32,042
16,022
38,142
-8,242
4,988
11,324
17,303
18,324
1,707
-4,882
5,857
3,051
2,336
463
-916
-3,043
1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34, and 38-40.
2. Data are on an international accounts basis. The data differ from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise trade data and are included in line 5.
3. Reporting banks include all types of depository institution as well as some
brokers and dealers.
3,995
17,411
1,875
4. Associated primarily with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
Survey of Current Business.
A54
3.11
International Statistics • May 1994
U.S. FOREIGN TRADE1
Millions of dollars; monthly data seasonally adjusted
1994
1993
Item
1991
1992
1993
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
1 Goods and services, balance
Merchandise
2
Services
3
-27,920
-73,802
45,882
-39,727
-96,138
56,411
-76,799
-132,478
55,679
-6,891
-11,757
4,866
-7,044
-11,647
4,603
-8,183
-12,568
4,385
-8,460
-12,644
4,184
-7,455
-11,351
3,8%
-4,148
-8,748
4,600
-6,298
-11,028
4,730
4 Goods and services, exports
Merchandise
5
Services
6
581,197
416,937
164,260
619,848
440,138
179,710
643,558
456,766
186,792
52,399
36,577
15,822
52,731
37,224
15,507
53,660
38,134
15,526
54,957
39,371
15,586
54,735
39,451
15,284
57,250
41,469
15,781
54,488
38,734
15,754
7 Goods and services, imports
Merchandise
8
Services
9
609,117
490,739
118,378
659,575
536,276
123,299
720,358
589,244
131,114
59,290
48,334
10,956
59,775
48,871
10,904
61,843
50,702
11,141
63,417
52,015
11,402
62,190
50,802
11,388
61,398
50,217
11,181
60,786
49,762
11,024
-66,723
-84,501
-115,738
-10,425
-10,047
-10,621
-10,897
-9,679
-7,367
-9,849
MEMO
10 Balance on merchandise trade, Census
basis
1. Data show monthly values consistent with quarterly figures in the U.S.
balance of payments accounts.
SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and
Bureau of Economic Analysis.
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1993
1 Total
2 Gold stock, including Exchange
Stabilization Fund 1
3 Special drawing rights 2 , 3
4 Reserve position in International
Monetary Fund 2
5 Foreign currencies
Aug.
Sept.
Oct.
83,316
77,719
71,323
75,231
75,835
74,550
74,042
73,442
74,243
11,058
10,989
11,057
11,240
11,056
8,503
11,057
9,133
11,057
9,203
11,056
9,038
11,054
9,091
11,053
9,039
11,053
9,070
9,076
52,193
9,488
45,934
11,759
40,005
12,118
42,923
12,101
43,474
11,908
42,548
11,827
42,070
11,818
41,532
11,906
42,214
1. Gold held " u n d e r earmark" at Federal Reserve Banks for foreign and
international accounts is not included in the gold stock of the United States; see
table 3.13, line 3. Gold stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted
by the International Monetary Fund (IMF) in July 1974. Values are based on a
weighted average of exchange rates for the currencies of member countries. From
July 1974 through December 1980, sixteen currencies were used; since January
1981, five currencies have been used. U.S. SDR holdings and reserve positions in
the IMF also have been valued on this basis since July 1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1
of the year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—
$710 million; 1979—$1,139 million; 1980—$1,152 million; 1981—$1,093 million;
plus net transactions in SDRs.
4. Valued at current market exchange rates.
3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1993
Asset
1990
1991
Aug.
1 Deposits
Held in custody
2 U.S. Treasury securities
3 Earmarked gold
Sept.
Oct.
Nov.
Dec. r
Jan.
Feb."
369
968
205
357
501
390
5%
386
257
190
278,499
13,387
281,107
13,303
314,481
13,686
356,671
12,686
358,860
12,562
358,975
12,464
373,864
12,381
379,394
12,327
388,065
12,302
393,238
12,238
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 at face value in dollars or foreign currencies.
1994
1992
3. Held in foreign and international accounts and valued at $42.22 per fine troy
ounce; not included in the gold stock of the United States.
Summary Statistics
A55
3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1994
1993
Item
1 Total 1
2
3
4
5
6
1
8
9
10
11
12
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities
By area
Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries
1991
1992
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan."
360,530
398,816
427,036 r
436,%9*
445,693 r
444,107
457,129*
468,825
477,525
38,396
92,692
54,967
104,5%
67,461 r
128,837
68,824 r
136,488
70,220*
139,638
65,668
140,525
67,964*
144,865
69,633
150,900
77,363
146,940
203,677
4,858
20,907
210,553
4,532
24,168
196,441
5,488
28,809
197,165
5,508
28,894
200,346
5,542
29,947
201,%5
5,579
30,370
208,188*
5,615
30,497
211,825
5,652
30,815
216,209
5,689
31,324
171,317
7,460
33,554
139,465
2,092
6,640
191,708
7,920
40,025
152,276
3,565
3,320
188,981
8,808
53,802 r
169,080
2,844
3,519
191,890
8,075
55,340*
174,901
3,109
3,652
198,254
8,260
54,704*
177,164
3,888
3,421
193,676
9,441
54,275
178,889
3,665
4,159
208,790*
8,657
50,410
182,437*
3,650
3,183
209,229
9,505
57,950
185,289
3,894
2,956
215,611
10,084
57,761
187,337
3,681
3,049
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.
SOURCE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States and on the 1984 benchmark survey of foreign portfolio
investment in the United States.
3.16 LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies
Reported by Banks in the United States1
Millions of dollars, end of period
1993
Item
1 Banks' liabilities
2 Banks' claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers
1990
70,477
66,7%
29,672
37,124
6,309
1. Data on claims exclude foreign currencies held by U.S. monetary
authorities.
1991
75,129
73,195
26,192
47,003
3,398
1992
72,7%
62,799
24,240
38,559
4,432
Mar.
June
Sept.*
Dec.
80,999
64,057
24,928
39,129
2,625
74,697
55,161
23,449
31,712
3,234
81,045
59,116
22,724
36,392
2,640
77,415
60,221
19,379
40,842
3,145
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.
A56
International Statistics • May 1994
3.17 LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1994
1993
Item
1991
1992
1993
July
Aug.
Sept.
Oct.
Nov.*
Dec.
Jan.p
HOLDER AND TYPE OF LIABILITY
1 Total, all foreigners
756,066
810,259
895,430
821,788
846,626
862,147
867,083 r
887,138
895,430
875,814
2 Banks' own liabilities
Demand deposits
3
Time deposits
4
Other 3
5
Own foreign offices 4
6
575,374
20,321
159,649
66,305
329,099
606,444
21,828
160,385
93,237
330,994
620,393
21,572
174,786
109,843
314,192
589,281
21,818
151,293
106,%2
309,208
606,529
21,503
152,967
116,406
315,653
614,608
25,445
153,607
113,063
322,493
608,979*
22,035
158,845*
129,438*
298,661*
616,879
25,462
155,931
128,578
306,908
620,393
21,572
174,786
109,843
314,192
605,813
23,525
158,406
126,842
297,040
180,692
110,734
203,815
127,644
275,037
176,430
232,507
153,359
240,097
161,827
247,539
165,151
258,104*
164,365
270,259
169,729
275,037
176,430
270,001
170,694
18,664
51,294
21,974
54,197
36,078
62,529
26,477
52,671
27,643
50,627
30,879
51,509
37,562*
56,177*
38,555
61,975
36,078
62,529
37,329
61,978
8,981
6,827
43
2,714
4,070
9,350
6,951
46
3,214
3,691
10,836
5,540
15
2,770
2,755
9,587
6,397
29
2,920
3,448
12,365
8,671
37
2,882
5,752
11,409
7,995
72
4,062
3,861
10,984
6,780
71
2,968
3,741
12,955
9,081
34
2,853
6,194
10,836
5,540
15
2,770
2,755
10,834
6,820
21
3,270
3,529
2,154
1,730
2,399
1,908
5,2%
4,275
3,190
2,635
3,694
3,418
3,414
3,199
4,204
3,566
3,874
3,201
5,2%
4,275
4,014
3,497
424
0
486
5
1,021
0
549
6
276
0
215
0
638
0
672
1
1,021
0
517
0
131,088
34,411
2,626
16,504
15,281
159,563
51,202
1,302
17,939
31,961
220,352
63,875
1,601
21,443
40,831
196,301
62,062
1,583
18,935
41,544
205,315
62,255
1,321
18,110
42,824
209,857
63,618
1,951
20,552
41,115
206,193
60,995
2,121
14,885
43,989
212,789
62,128
2,089
16,938
43,101
220,352
63,875
1,601
21,443
40,831
221,693
67,738
1,668
19,849
46,221
96,677
92,692
108,361
104,5%
156,477
150,900
134,239
128,837
143,060
136,488
146,239
139,638
145,198
140,525
150,661
144,865
156,477
150,900
153,955
146,940
3,879
106
3,726
39
5,482
95
5,297
105
6,514
58
6,149
452
4,491
182
5,614
182
5,482
95
6,855
160
522,265
459,335
130,236
8,648
82,857
38,731
329,099
547,320
476,117
145,123
10,170
90,2%
44,657
330,994
563,550
474,545
160,353
9,713
105,204
45,436
314,192
521,266
450,361
141,153
10,677
84,567
45,909
309,208
531,961
462,736
147,083
10,478
85,%5
50,640
315,653
544,176
470,133
147,640
12,808
83,070
51,762
322,493
543,385*
460,075*
161,414*
9,948
95,208*
56,258
298,661*
555,5%
468,566
161,658
13,369
91,462
56,827
306,908
563,550
474,545
160,353
9,713
105,204
45,436
314,192
539,226
451,950
154,910
11,025
87,670
56,215
297,040
62,930
7,471
71,203
11,087
89,005
10,707
70,905
10,627
69,225
11,327
74,043
11,794
83,310*
10,046
87,030
10,539
89,005
10,707
87,276
9,832
5,694
49,765
7,555
52,561
16,810
61,488
9,049
51,229
8,760
49,138
12,688
49,561
19,106*
54,158*
17,124
59,367
16,810
61,488
17,136
60,308
93,732
74,801
9,004
57,574
8,223
94,026
72,174
10,310
48,936
12,928
100,692
76,433
10,243
45,369
20,821
94,634
70,461
9,529
44,871
16,061
%,985
72,867
9,667
46,010
17,190
%,705
72,862
10,614
45,923
16,325
106,521*
81,129*
9,895
45,784
25,450*
105,798
77,104
9,970
44,678
22,456
100,692
76,433
10,243
45,369
20,821
104,061
79,305
10,811
47,617
20,877
18,931
8,841
21,852
10,053
24,259
10,548
24,173
11,260
24,118
10,594
23,843
10,520
25,392
10,228
28,694
11,124
24,259
10,548
24,756
10,425
8,667
1,423
10,207
1,592
12,765
946
11,582
1,331
12,093
1,431
11,827
1,4%
13,327
1,837
15,145
2,425
12,765
946
12,821
1,510
7,456
9,111
17,567
9,389
9,481
11,264
17,533
17,089
17,567
17,509
7 Banks' custodial liabilities 5
U.S. Treasury bills and certificates
8
Other negotiable and readily transferable
9
instruments
10
Other
11 Nonmonetary international and regional
organizations 8
Banks' own liabilities
Demand deposits
Time deposits
Other 3
12
13
14
15
16
17
18
19
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other
20 Official institutions 9
Banks' own liabilities
21
22
Demand deposits
Time deposits
23
Other 3 .
24
25
26
27
28
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other
29 Banks 1 0
Banks' own liabilities
30
31
Unaffiliated foreign banks
32
Demand deposits
Time deposits
33
34
Other 3
Own foreign offices 4
35
36
37
38
39
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other
40 Other foreigners
41
Banks' own liabilities
42
Demand deposits
Time deposits
43
Other 3
44
45
46
47
48
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other
MEMO
49 Negotiable time certificates of deposit in custody for
foreigners
1. Reporting banks include all types of depository institution, as well as some
brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign
subsidiaries consolidated in Consolidated Report of Condition filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of
foreign banks, consists principally of amounts owed 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, the
Inter-American Development Bank, and the Asian Development Bank. Excludes
"holdings of dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."
Bank-Reported
3.17
Data
A57
LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued
1994
1993
Item
1991 R
1992R
1993
Julyr
Aug.r
Sept.r
Oct/
Nov/
Dec.
Jan.p
AREA
1 T o t a l , all f o r e i g n e r s
756,066
810,259
895,430
821,788
846,626
862,147
867,083
887,138
895,430
875,814
2 Foreign countries
747,085
800,909
884,594
812,201
834,261
850,738
856,099
874,183
884,594
864,980
249,097
1,193
13,337
937
1,341
31,808
8,619
765
13,541
7,161
1,866
2,184
241
11,391
2,222
37,238
1,598
100,292
622
12,741
307,670
1,611
20,567
3,060
1,299
41,411
18,630
913
10,041
7,365
3,314
2,465
577
9,793
2,953
39,440
2,666
111,805
504
29,256
376,289
1,857
28,650
4,517
1,872
39,704
26,617
1,530
11,561
15,981
2,975
3,366
2,511
20,484
2,573
41,588
3,228
133,738
570
32,967
321,005
1,415
20,805
3,983
2,873
33,963
24,498
1,078
10,721
10,465
2,757
2,894
1,406
16,644
2,210
40,494
2,882
113,171
501
28,245
335,460
1,614
23,345
3,023
2,667
36,517
22,199
1,122
11,426
10,854
2,833
3,015
2,254
17,207
1,460
40,987
2,618
118,793
511
33,015
340,374
1,672
23,635
3,135
2,347
40,622
22,530
1,378
11,285
11,429
2,901
3,180
2,229
20,495
3,474
41,909
2,553
116,205
524
28,871
357,847
1,808
24,641
5,084
2,712
43,034
22,820
1,366
10,466
13,368
2,7%
3,215
2,623
20,181
2,355
43,195
2,897
130,941
541
23,804
369,534
1,797
27,541
4,151
2,250
36,623
27,025
1,704
10,734
14,737
3,199
3,229
2,530
19,705
2,672
42,506
2,947
135,712
546
29,926
376,289
1,857
28,650
4,517
1,872
39,704
26,617
1,530
11,561
15,981
2,975
3,366
2,511
20,484
2,573
41,588
3,228
133,738
570
32,%7
365,949
2,567
29,312
5,089
1,843
32,244
27,576
1,361
10,702
17,532
2,533
3,131
2,208
19,652
2,301
41,800
3,120
130,775
549
31,654
3 Europe
4
Austria
5
Belgium and L u x e m b o u r g
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
Italy
11
Netherlands
17
13
Norway
14
Portugal
15
Russia
16
Spain
Sweden
17
Switzerland
18
19
Turkey
United Kingdom
70
Yugoslavia
71
O
ther Europe and former U.S.S.R.12
22
21,605
22,420
20,227
22,264
23,917
25,147
27,452
24,152
20,227
20,588
74 L a t i n A m e r i c a a n d C a r i b b e a n
75
Argentina
76
Bahamas
Bermuda
77
Brazil
78
79
British W e s t Indies
30
Chile
31
Colombia
37
Cuba
33
Ecuador
Guatemala
34
35
Jamaica
Mexico
36
Netherlands Antilles
37
P
anama
38
39
Peru
U
ruguay
40
Venezuela
41
O
t
her
42
345,529
7,753
100,622
3,178
5,704
163,620
3,283
4,661
2
1,232
1,594
231
19,957
5,592
4,695
1,249
2,096
13,181
6,879
317,228
9,477
82,284
7,079
5,584
153,033
3,035
4,580
3
993
1,377
371
19,454
5,205
4,177
1,080
1,955
11,387
6,154
332,537
14,493
73,077
7,873
5,309
165,417
3,203
3,172
33
881
1,207
410
28,064
4,206
3,625
931
1,622
12,807
6,207
315,885
14,120
73,414
6,969
5,425
151,519
3,934
4,464
5
889
1,304
341
24,138
4,159
3,747
891
1,775
12,373
6,418
316,747
14,579
73,790
6,931
5,299
149,897
3,5%
4,383
5
860
1,315
364
24,833
5,413
3,657
898
1,822
12,782
6,323
326,346
14,051
77,8%
7,239
5,268
156,953
3,867
3,988
6
819
1,278
375
24,414
4,695
3,743
903
1,734
12,868
6,249
317,698
14,319
76,557
8,021
5,057
149,468
3,952
3,025
7
868
1,275
376
24,248
5,283
3,567
873
1,716
12,903
6,183
325,059
13,695
78,354
7,287
5,069
159,821
3,455
3,101
7
851
1,243
401
21,947
4,725
3,468
890
1,643
13,076
6,026
332,537
14,493
73,077
7,873
5,309
165,417
3,203
3,172
33
881
1,207
410
28,064
4,206
3,625
931
1,622
12,807
6,207
327,562
14,495
71,683
7,791
5,163
161,028
3,504
3,587
34
891
1,258
387
27,667
5,084
3,592
880
1,727
12,460
6,331
43
120,462
143,540
144,643
143,132
147,517
147,648
141,363
144,476
144,643
140,090
2,626
11,491
14,269
2,418
1,463
2,015
47,069
2,587
2,449
2,252
15,752
16,071
3,202
8,408
18,499
1,399
1,480
3,773
58,435
3,337
2,275
5,582
21,437
15,713
4,011
10,634
17,233
1,113
1,986
4,436
61,483
4,904
2,035
6,137
15,825
14,846
2,728
9,999
16,193
1,053
1,688
2,790
62,233
4,298
3,1%
5,830
18,409
14,715
3,292
9,483
15,621
1,211
1,582
2,729
67,999
3,873
2,648
6,058
19,141
13,880
3,261
9,%9
16,388
1,288
1,715
3,241
65,626
4,356
2,735
5,846
17,255
15,968
3,280
9,804
16,389
1,251
1,504
5,450
60,171
3,889
2,192
6,446
14,681
16,306
3,187
10,960
18,673
1,425
1,674
4,582
58,866
4,409
1,902
6,231
15,489
17,078
4,011
10,634
17,233
1,113
1,986
4,436
61,483
4,904
2,035
6,137
15,825
14,846
4,075
9,960
18,675
1,436
1,807
4,138
58,606
4,712
1,912
6,156
13,134
15,479
23 C a n a d a
44
45
46
47
48
49
50
51
5?
53
54
55
China
P e o p l e ' s R e p u b l i c of C h i n a
Republic of C h i n a (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Middle Eastern oil-exporting countries13
Other
56
57
58
59
60
61
62
Egypt
Morocco
South Africa
Zaire
Oil-exporting countries
Other
4,825
1,621
79
228
31
1,082
1,784
5,884
2,472
76
190
19
1,346
1,781
6,627
2,209
99
451
12
1,303
2,553
5,680
1,880
138
172
25
1,417
2,048
5,649
2,018
78
233
20
1,279
2,021
6,127
2,457
86
275
16
1,281
2,012
6,179
2,220
87
367
15
1,271
2,219
5,762
2,089
110
272
10
1,446
1,835
6,627
2,209
99
451
12
1,303
2,553
5,823
1,961
94
214
13
1,186
2,355
63
64
65
Australia
Other
5,567
4,464
1,103
4,167
3,043
1,124
4,271
3,308
963
4,235
3,253
982
4,971
3,890
1,081
5,0%
4,045
1,051
5,560
4,434
1,126
5,200
3,853
1,347
4,271
3,308
%3
4,968
3,810
1,158
8,981
6,485
1,181
1,315
9,350
7,434
1,415
501
10,836
6,751
3,218
867
9,587
6,028
2,077
1,482
12,365
8,367
2,737
1,261
11,409
7,679
2,448
1,282
10,984
7,340
2,539
1,105
12,955
9,084
3,050
821
10,836
6,751
3,218
867
10,834
6,322
3,402
1,110
66 N o n m o n e t a r y international and regional
organizations
International1
Latin American regional16
Other regional17
67
68
69
11. S i n c e D e c e m b e r 1992, h a s e x c l u d e d B o s n i a , C r o a t i a , a n d S l o v e n i a .
12. I n c l u d e s t h e B a n k f o r I n t e r n a t i o n a l S e t t l e m e n t s . S i n c e D e c e m b e r 1992,
i n c l u d e s all p a r t s o f t h e f o r m e r U . S . S . R . ( e x c e p t R u s s i a ) , a n d B o s n i a , C r o a t i a ,
and Slovenia.
13. C o m p r i s e s B a h r a i n , I r a n , I r a q , K u w a i t , O m a n , Q a t a r , S a u d i A r a b i a , a n d
United A r a b E m i r a t e s (Trucial States).
14. C o m p r i s e s A l g e r i a , G a b o n , L i b y a , a n d N i g e r i a .
15. P r i n c i p a l l y t h e I n t e r n a t i o n a l B a n k f o r R e c o n s t r u c t i o n a n d D e v e l o p m e n t .
E x c l u d e s " h o l d i n g s of d o l l a r s " o f t h e I n t e r n a t i o n a l M o n e t a r y F u n d .
16. P r i n c i p a l l y t h e I n t e r - A m e r i c a n D e v e l o p m e n t B a n k .
17. A s i a n , A f r i c a n , M i d d l e E a s t e r n , a n d E u r o p e a n r e g i o n a l o r g a n i z a t i o n s ,
e x c e p t t h e B a n k f o r I n t e r n a t i o n a l S e t t l e m e n t s , w h i c h is i n c l u d e d in " O t h e r
Western Europe."
A58
International Statistics • May 1994
3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States»
Payable in U.S. Dollars
Millions of dollars, end of period
1993r
Area and country
1991r
1992r
1994
1993
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan."
1 Total, all foreigners
514,339
499,437
482,505
472,877
461,191
477,233
465,986
468,771
482,505
469,158
2 Foreign countries
508,056
494,355
480,100
471,570
459,239
474,854
464,743
466,570
480,100
466,321
114,310
327
6,158
686
1,907
15,112
3,371
553
8,242
2,546
669
344
1,970
1,881
2,335
4,540
1,063
60,395
825
1,386
123,377
331
6,404
707
1,418
14,723
4,222
717
9,047
2,468
355
325
3,147
2,755
4,923
4,717
962
63,430
569
2,157
120,823
413
6,420
382
598
11,490
7,683
679
8,891
3,064
3%
720
2,295
2,763
4,100
6,567
1,287
60,817
536
1,722
125,094
1,094
6,127
835
1,007
11,847
7,746
509
8,153
3,260
876
710
2,799
5,117
5,131
5,193
1,492
60,772
547
1,879
116,836
691
6,515
693
705
11,500
6,766
508
8,839
3,081
941
803
2,591
4,184
4,278
5,634
1,549
55,118
547
1,893
124,253
457
6,589
631
594
10,963
7,994
629
8,985
3,383
841
787
2,547
3,652
4,619
5,216
1,418
62,510
542
1,896
124,616
568
5,500
1,056
730
11,516
7,570
592
8,050
3,163
779
826
2,581
4,747
4,111
4,647
1,638
64,052
535
1,955
120,673
501
5,911
1,261
606
11,622
6,961
684
8,417
3,607
598
787
2,295
4,388
3,531
5,946
1,790
59,411
549
1,808
120,823
413
6,420
382
598
11,490
7,683
679
8,891
3,064
3%
720
2,295
2,763
4,100
6,567
1,287
60,817
536
1,722
113,604
725
5,155
483
699
11,705
7,386
657
8,974
3,035
738
807
2,142
3,267
3,704
7,177
1,118
53,217
539
2,076
3 Europe
4
Austria
5
Belgium and Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
11
Italy
Netherlands
1?
13
Norway
14
Portugal
15
Russia
16
Spain
17
Sweden
18
Switzerland
19
Turkey
70
United Kingdom
Yugoslavia 2
71
Other Europe and former U . S . S . R . 3
22
15,113
13,845
18,311
17,776
17,373
19,009
15,756
15,478
18,311
19,102
74 Latin America and Caribbean
75
Argentina
76
Bahamas
Bermuda
77
78
Brazil
79
British West Indies
30
Chile
31
Colombia
37,
Cuba
33
Ecuador
34
Guatemala
35
Jamaica
36
Mexico
Netherlands Antilles
37
38
Panama
39
Peru
40
Uruguay
41
Venezuela
42
Other
246,137
5,869
87,138
2,270
11,894
107,846
2,805
2,425
0
1,053
228
158
16,567
1,207
1,560
739
599
2,516
1,263
218,078
4,958
60,835
5,935
10,773
101,507
3,397
2,750
0
884
262
162
14,991
1,379
4,654
730
936
2,525
1,400
223,678
4,425
65,045
8,032
11,803
97,484
3,614
3,179
0
673
286
194
15,831
2,367
2,911
651
951
3,070
3,162
208,294
4,841
56,843
8,578
10,842
91,246
3,898
2,886
0
732
240
182
15,738
3,172
2,532
651
807
3,001
2,105
207,554
4,740
56,276
7,122
10,927
93,116
3,796
2,916
0
739
256
181
15,652
3,153
2,361
667
816
2,876
1,960
215,634
4,715
60,906
5,550
11,294
97,409
3,832
2,921
0
701
244
183
15,724
3,155
2,370
617
926
2,835
2,252
212,031
4,390
60,350
8,915
11,675
90,041
3,857
2,957
0
707
269
175
16,155
3,339
2,491
636
926
2,815
2,333
216,687
4,518
63,242
7,565
11,677
92,621
3,728
3,040
0
704
286
186
16,073
3,048
2,625
620
918
3,054
2,782
223,678
4,425
65,045
8,032
11,803
97,484
3,614
3,179
0
673
286
194
15,831
2,367
2,911
651
951
3,070
3,162
225,671
4,561
66,411
10,234
12,705
93,852
3,546
3,241
0
677
313
179
16,462
3,111
2,841
695
793
2,929
3,121
43
125,262
131,789
110,661
113,182
111,196
109,095
105,511
107,519
110,661
101,341
747
2,087
9,617
441
952
860
84,807
6,048
1,910
1,713
8,284
7,796
906
2,046
9,642
529
1,189
820
79,172
6,179
2,145
1,867
18,540
8,754
2,299
2,617
10,864
589
1,522
826
59,575
7,551
1,408
2,154
14,398
6,858
871
1,549
10,654
473
1,282
733
62,726
7,587
1,357
2,006
16,976
6,968
638
1,585
9,390
442
1,289
775
64,890
7,245
1,250
2,018
15,912
5,762
699
1,594
11,153
572
1,330
747
60,263
7,098
1,143
2,143
14,251
8,102
773
1,674
9,640
623
1,268
752
60,308
7,133
1,168
2,146
13,580
6,446
706
2,003
10,449
645
1,474
787
59,934
7,138
1,265
2,110
13,853
7,155
2,299
2,617
10,864
589
1,522
826
59,575
7,551
1,408
2,154
14,398
6,858
881
2,611
10,221
620
1,556
932
54,164
7,374
1,132
2,373
12,876
6,601
56 Africa
Egypt
57
58
Morocco
59
South Africa
60
Zaire
Oil-exporting countries 5
61
Other
62
4,928
294
575
1,235
4
1,298
1,522
4,279
186
441
1,041
4
1,002
1,605
3,818
196
444
633
4
1,128
1,413
3,856
148
437
742
4
1,232
1,293
3,902
168
443
705
4
1,224
1,358
4,023
176
454
713
3
1,206
1,471
3,919
160
433
663
3
1,187
1,473
3,799
218
437
664
4
1,119
1,357
3,818
196
444
633
4
1,128
1,413
3,746
198
489
581
4
1,169
1,305
63 Other
64
Australia
Other
65
2,306
1,665
641
2,987
2,243
744
2,809
2,072
737
3,368
2,443
925
2,378
1,847
531
2,840
2,414
426
2,910
2,401
509
2,414
1,873
541
2,809
2,072
737
2,857
2,030
827
66 Nonmonetary international and regional
organizations 6
6,283
5,082
2,405
1,307
1,952
2,379
1,243
2,201
2,405
2,837
23 Canada
44
45
46
47
48
49
50
51
5?
53
54
55
China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
India
Indonesia
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries 4
Other
1. Reporting banks include all types of depository institutions, as well as some
brokers and dealers.
2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements. Since December 1992,
includes all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia,
and Slovenia.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in
"Other Western E u r o p e . "
Nonbank-Reported
3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
United States1
Payable in U.S. Dollars
Data
Reported by Banks in the
Millions of dollars, end of period
1994
1993
Claim
1991
1992r
1993
July r
579,683 r
1 Total
2 Banks' claims
3
Foreign public borrowers
4
Own foreign offices
5
Unaffiliated foreign banks
6
Deposits
7
Other
8
All other foreigners
9 Claims of banks' domestic c u s t o m e r s 3 . . .
10
Deposits
11
Negotiable and readily transferable
instruments 4
12
Outstanding collections and other
claims
MEMO
13 Customer liability on acceptances
14 Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States
559,495
Aug. r
522,915
Sept. r
Oct. r
Nov. r
Dec. r
518,514
522,915
477,233
31,940
286,604
96,146
44,664
51,482
62,543
468,771
29,776
279,864
92,028
43,995
48,033
67,103
482,505
28,995
286,233
97,907
46,786
51,121
69,370
514,339
37,126
318,800
116,602
69,018
47,584
41,811
499,437
31,367
303,991
109,342
61,550
47,792
54,737
482,505
28,995
286,233
97,907
46,786
51,121
69,370
65,344
15,280
60,058
15,452
40,410
9,619
41,281
9,343
40,410
9,619
37,125
31,474
17,155
18,475
17,155
12,939
13,132
13,636
13,463
13,636
8,974
8,655
7,871
8,190
7,871
43,024 r
36,163
22,825
472,877
32,788
280,100
93,101
44,812
48,289
66,888
29,316
461,191
30,310
275,295
94,009
45,473
48,536
61,577
28,395
24,516
465,986
31,335
269,956
91,921
43,785
48,136
72,774
26,931
21,847
22,825
Jan."
469,158
30,575
274,114
90,911
40,301
50,610
73,558
n.a.
foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of
head office or parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. F o r
description of changes in data reported by nonbanks, see Federal
Reserve
Bulletin, vol. 65 (July 1979), p. 550.
1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are quarterly.
Reporting banks include all types of depository institution, as well as some
brokers and dealers.
2. For U.S. banks, includes amounts due from own foreign branches and
foreign subsidiaries consolidated in Consolidated Report of Condition filed with
bank regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists principally of amounts due from head office or parent
3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. Dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1993
Maturity, by borrower and area 2
1 Total
2
3
4
5
6
7
8
9
10
11
1?
13
14
15
16
17
18
19
By borrower
Maturity of one year or less
Foreign public borrowers
All other foreigners
Maturity of more than one year
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
1990
1991
Mar. r
June r
Sept. r
Dec. p
206,903
195,302
195,119
182,445
183,312
189,900
194,599
165,985
19,305
146,680
40,918
22,269
18,649
162,573
21,050
141,523
32,729
15,859
16,870
163,325
17,813
145,512
31,794
13,266
18,528
152,226
21,239
130,987
30,219
12,214
18,005
154,648
17,962
136,686
28,664
11,255
17,409
162,195
21,226
140,969
27,705
10,507
17,198
165,897
17,308
148,589
28,702
10,994
17,708
49,184
5,450
49,782
53,258
3,040
5,272
51,835
6,444
43,597
51,059
2,549
7,089
53,300
6,091
50,376
45,709
1,784
6,065
54,871
7,884
45,148
37,871
1,677
4,775
54,405
7,979
48,619
38,803
1,712
3,130
57,252
9,835
51,683
37,725
1,916
3,784
56,087
7,538
56,672
40,263
1,783
3,554
3,859
3,290
25,774
5,165
2,374
456
3,878
3,595
18,277
4,459
2,335
185
5,367
3,287
15,312
5,038
2,380
410
4,896
3,120
14,574
5,063
2,130
436
4,579
2,909
13,828
4,809
2,050
489
4,423
2,549
13,519
4,736
2,049
429
4,317
2,553
14,049
5,403
1,933
447
1. Reporting banks include all kinds of depository institutions besides commerrial banks, as well as some brokers and dealers.
1992
2. Maturity is time remaining to maturity,
3. Includes nonmonetary international and regional organizations.
A59
A60
International Statistics • May 1994
3.21 CLAIMS ON FOREIGN COUNTRIES
Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1
Billions of dollars, end of period
1991
Area or country
IVoV
1992
1993
iyyw
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
Dec. p
340.9
320.1
343.6
351.7
358.7
344.5
346.5
361.0'
377.1'
388.1'
403.3
152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.3
132.2
5.9
10.4
10.6
5.0
3.0
2.2
4.4
60.9
5.9
24.0
137.6
6.0
11.0
8.3
5.6
4.7
1.9
3.4
68.5
5.8
22.6
130.9
5.3
10.0
8.4
5.4
4.3
2.0
3.2
64.7
6.5
21.1
135.6
6.2
11.9
8.8
8.0
3.3
1.9
4.6
65.6
6.5
18.7
136.0
6.2
15.3
10.9
6.4
3.7
2.2
5.2
61.0
6.3
18.9
132.9
5.6
15.3
9.3
6.5
2.8
2.3
4.8
60.8
6.3
19.3
142.4
6.1
13.5
9.9
6.7
3.6
3.0
5.3
65.7
8.2
20.4
150.1'
7.0
14.0
10.8
7.9*
3.7
2.5
4.7
73.5
8.1
17.9
153.4'
7.1
12.3'
12.4
8.7'
3.7
2.5
5.6
74.7'
9.7
16.9
160.9
7.4
11.7
12.6
7.6
4.7
2.5
5.9
84.4
6.6
17.4
13 Other industrialized countries
14
Austria
15
Denmark
16
Finland
17
Greece
18
Norway
19
Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia
21.0
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
1.0
2.0
1.6
22.9
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
1.2
1.8
1.8
22.8
.6
.9
.7
2.6
1.4
.6
8.3
1.4
1.8
1.9
2.7
21.4
.8
.8
.8
2.3
1.5
.5
7.7
1.2
1.5
1.8
2.3
25.5
.8
1.3
.8
2.8
1.7
.5
10.1
1.5
2.0
1.7
2.2
25.0
.7
1.5
1.0
3.0
1.6
.5
9.7
1.5
1.5
1.7
2.3
24.0
1.2
.9
.7
3.0
1.2
.4
8.9
1.3
1.7
1.7
2.9
25.4
1.2
.8
.7
2.7
1.8
.7
9.5
1.4
2.0
1.6
2.9
27.2
1.3
1.0
.9
3.1
1.8
.9
10.5
2.1
1.7
1.3
2.5
26.0
.6
1.1
.6
3.2
2.1
1.0
9.3
2.1
2.2
1.2
2.8
24.6
.4
1.0
.4
3.2
1.7
.8
8.9
2.1
2.6
1.1
2.3
25 OPEC 2
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
17.1
1.3
7.0
2.0
5.0
1.7
12.8
1.0
5.0
2.7
2.5
1.7
14.5
.7
5.4
2.7
4.2
1.5
15.8
.7
5.4
3.0
5.3
1.4
16.2
.7
5.3
3.0
5.9
1.4
15.9
.7
5.4
3.0
5.4
1.4
16.1
.6
5.2
3.0
6.2
1.1
16.8
.6
5.3
3.1
6.6
1.1
15.9
.6
5.6
3.1
5.4
1.1
14.9
.5
5.6
2.8
4.9
1.1
16.9
.5
5.3
3.2
6.7
1.2
31 Non-OPEC developing countries
77.5
65.4
63.9
69.7
68.1
72.8
72.1
74.4
76.6
76.9
82.5
6.3
19.0
4.6
1.8
17.7
.6
2.8
5.0
14.4
3.5
1.8
13.0
.5
2.3
4.8
9.6
3.6
1.7
15.5
.4
2.1
5.0
10.8
3.9
1.6
17.7
.4
2.2
5.1
10.6
4.0
1.6
16.3
.4
2.2
6.2
10.8
4.2
1.7
17.1
.5
2.5
6.6
10.8
4.4
1.8
16.0
.5
2.6
7.0
11.6
4.6
1.9
16.8
.4
2.6
6.6
12.3
4.6
1.9
16.8
.4
2.7
7.2
11.6
4.7
2.0
17.5
.3
2.6
7.7
12.0
4.7
2.1
17.7
.4
3.0
1 Total
2 G-10 countries and Switzerland
3
Belgium and Luxembourg
4
France
5
Germany
6
Italy
7
Netherlands
8
Sweden
9
Switzerland
10
United Kingdom
11
Canada
12
Japan
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other
39
40
41
42
43
44
45
46
47
Asia
China
Peoples Republic of China
Republic of China (Taiwan)
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia 3
.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0
.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7
.3
4.1
3.0
.5
6.8
2.3
3.7
1.7
2.0
.3
4.8
3.6
.4
6.9
2.5
3.6
1.7
2.3
.3
4.6
3.8
.4
6.9
2.7
3.1
1.9
2.5
.3
5.0
3.6
.4
7.4
3.0
3.6
2.2
2.7
.7
5.2
3.2
.4
6.6
3.1
3.6
2.2
2.7
.6
5.3
3.1
.5
6.5
3.4'
3.4
2.2
2.7
1.6
5.9
3.1
.4
6.9
3.7
2.9
2.4
2.6
.5
6.4
2.9
.4
6.5
4.1
2.6
2.8
3.0
2.0
7.3
3.2
.5
6.7
4.4
3.1
3.1
2.9
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 3
.4
.9
.0
1.0
.4
.8
.0
1.0
.4
.7
.0
.7
.3
.7
.0
.7
.5
.7
.0
.6
.3
.6
.0
.9
.2
.6
.0
1.0
.2
.5
.0
.8
.2
.6
.0
.9
.2
.6
.0
.8
.4
.6
.0
.8
52 Eastern Europe
53
Russia
54
Yugoslavia
55
Other
3.5
.7
1.6
1.3
2.3
.2
1.2
.9
2.4
.9
.9
.7
2.9
1.4
.8
.6
3.0
1.7
.7
.6
3.1
1.8
.7
.7
3.1
1.9
.6
.6
2.9
1.7
.6
.7
3.2
1.9
.6
.7
3.0
1.7
.6
.7
3.0
1.6
.6
.9
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama
62
Lebanon
63
Hong Kong
64
Singapore
65
Other 5
38.4
5.5
1.7
9.0
2.3
1.4
44.7
2.9
4.4
11.7
7.9
1.4
54.5
8.9
3.8
16.9
.7
2.0
58.3
6.9
6.2
21.8
1.1
1.9
60.1'
9.6
4.1
17.6'
1.6
2.0
57.8'
6.9
4.5
15.6
2.5
2.1
67.5'
12.4
5.5
15.1
2.8
2.1
72.0
12.6
8.1
16.5
2.3
2.4
J
63.0
15.3
3.9
18.6
1.0
1.6J
61.4
12.9
5.1
19.3
.8
1.9
J
54.2
11.9
2.3
15.8
1.2
1.4|
1L3
7.0
.0
9.7
6.6
.0
14^4
7.1
.0
14!O
8.5
.0
14^9
6.4
.0
15^2
6.8
.0
13^8
6.5
.0
16.7'
8.4
.0
16>
9.3
.0
19!l r
10.4
.0
18J
11.2
.1
66 Miscellaneous and unallocated 6
30.5
39.9
48.0
47.8
48.6
36.8
39.7
38.8'
46.2'
46.3'
43.3
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. U.S. office data include other types of
U.S.-owned depository institutions as well as some types of brokers and dealers.
To minimize duplication, the data are adjusted to exclude the claims on foreign
branches held by a U.S. office or another foreign branch of the same banking
institution. The data in this table combine foreign branch claims in table 3.14 (the
sum of lines 7 through 10) with the claims of U.S. offices in table 3.18 (excluding
those held by agencies and branches of foreign banks and those constituting
claims on own foreign branches).
Since June 1984, reported claims held by foreign branches have been reduced
by an increase in the reporting threshold for " s h e l l " branches from $50 million to
$150 million equivalent in total assets, the threshold now applicable to all
reporting branches.
2. Organization of Petroleum Exporting Countries, shown individually; other
members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar,
Saudi Arabia, and United Arab Emirates); and Bahrain and Oman (not formally
members of OPEC).
3. Excludes Liberia.
4. Includes Canal Zone.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional
organizations.
Nonbank-Reported
Data
A61
3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States1
Millions of dollars, end of period
1993
1992
Type of liability and area or country
1 Total
1989
38,764
1990
46,043
1991
June
Sept.
Dec.
Mar.
June
Sept.
44,549
46,122
46,981
45,218
45,776
45,881
48,218
38,286
8,695
37,159
8,059
37,501
8,275
36,558
9,323
38,518
9,700
2 Payable in dollars
3 Payable in foreign currencies
33,973
4,791
40,786
5,257
38,893
5,656
39,270
6,852
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
17,879
14,035
3,844
21,066
16,979
4,087
22,344
17,968
4,376
23,178
17,777
5,401
24,417
17,417
7,000
23,244
16,587
6,657
23,610
16,785
6,825
24,175
16,434
7,741
25,939
18,189
7,750
7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities . . .
20,885
8,070
12,815
24,977
10,683
14,294
22,205
9,267
12,938
22,944
10,285
12,659
22,564
10,227
12,337
21,974
9,893
12,081
22,166
10,005
12,161
21,706
9,683
12,023
22,279
9,140
13,139
19,938
947
23,807
1,170
20,925
1,280
21,493
1,451
20,869
1,695
20,572
1,402
20,716
1,450
20,124
1,582
20,329
1,950
11,660
340
258
464
941
541
8,818
10,978
394
975
621
1,081
545
6,357
11,858
216
2,106
682
1,056
408
6,383
13,470
193
2,324
634
979
490
7,963
14,262
256
2,785
738
980
627
8,074
13,034
414
1,608
810
606
569
8,357
13,397
306
1,610
820
639
503
8,965
13,997
268
2,216
787
585
491
8,995
16,255
278
2,074
779
573
378
11,583
10
i1
12
13
14
15
16
17
18
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
610
229
292
362
345
516
576
492
663
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,357
157
17
0
724
6
0
4,153
371
0
0
3,160
5
4
4,784
537
114
6
3,524
7
4
3,908
353
114
10
2,757
8
4
3,997
230
115
18
2,933
12
5
4,053
369
114
19
2,860
12
6
4,099
521
114
18
2,770
13
5
3,799
426
124
18
2,551
11
5
3,319
1,301
114
18
1,200
15
5
27
28
29
Asia
Japan
Middle East oil-exporting countries 2 . .
4,151
3,299
2
5,295
4,065
5
5,352
4,116
13
5,349
4,245
10
5,723
4,678
17
5,607
4,568
19
5,477
4,495
24
5,717
4,564
19
5,552
4,552
23
30
Africa
6
4
0
0
5
0
6
0
6
0
130
123
132
124
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries
All other 4
Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
2
0
2 .
0
100
409
52
89
85
28
55
40
18
9,071
175
877
1,392
710
693
2,620
10,310
275
1,218
1,270
844
775
2,792
8,715
248
1,039
1,052
710
575
2,311
7,848
240
724
799
605
461
2,405
7,492
- 173
756
851
601
482
2,282
7,555
296
750
717
567
349
2,526
6,930
262
705
643
537
469
2,118
6,810
267
773
603
577
440
2,198
6,973
255
640
565
601
535
2,304
1,124
1,261
1,014
1,109
1,114
1,001
991
933
831
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,224
41
308
100
27
323
164
1,672
12
538
145
30
475
130
1,355
3
310
219
107
307
94
1,814
8
409
218
73
480
279
1,493
3
325
121
85
326
125
1,495
3
307
209
24
447
124
1,776
11
429
236
34
553
171
1,820
6
356
226
16
659
172
1,762
4
340
214
36
570
183
48
49
50
Asia
Japan
Middle Eastern oil-exporting countries'
7,550
2,914
1,632
9,483
3,651
2,016
9,335
3,722
1,498
10,445
3,538
1,778
11,026
3,918
1,813
10,791
3,953
1,791
11,067
4,035
1,796
10,823
3,715
1,815
11,575
4,534
1,816
51
52
Africa
.
Oil-exporting countries 3
886
339
844
422
715
327
777
389
675
335
556
295
675
322
665
378
558
279
53
Other 4
1,030
1,406
1,071
951
764
576
727
655
580
1. For a description of the changes in the international statistics tables, see
Federal Reserve Bulletin, vol. 65, (July 1979), p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A62
International Statistics • May 1994
3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
the United States1
Reported by Nonbanking Business Enterprises in
Millions of dollars, end of period
1992r
Type, and area or country
1989
1990
1993
1991
June
Sept.
Dec.
Mar. r
June 1
Sept.
1 Total
33,173
35,348
45,121
46,517
46,192
41,637
45,569
41,174
41,805
2 Payable in dollars
3 Payable in foreign currencies
30,773
2,400
32,760
2,589
42,548
2,573
43,492
3,025
43,218
2,974
39,047
2,590
42,704
2,865
38,093
3,081
38,575
3,230
By type
4 Financial claims
5
Deposits
6
Payable in dollars
7
Payable in foreign currencies
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
19,297
12,353
11,364
989
6,944
6,190
754
19,874
13,577
12,552
1,025
6,297
5,280
1,017
27,744
19,946
19,071
875
7,798
6,906
892
28,977
19,813
18,456
1,357
9,164
8,433
731
28,573
19,524
18,387
1,137
9,049
8,028
1,021
23,532
15,100
14,302
798
8,432
7,667
765
26,073
16,527
15,469
1,058
9,546
8,793
753
21,791
11,646
10,728
918
10,145
9,221
924
23,331
13,296
12,317
979
10,035
9,276
759
11 Commercial claims
12
Trade receivables
13
Advance payments and other claims
13,876
12,253
1,624
15,475
13,657
1,817
17,377
14,465
2,912
17,540
14,846
2,694
17,619
14,676
2,943
18,105
15,547
2,558
19,496
17,140
2,356
19,383
16,953
2,430
18,474
15,548
2,926
14
15
13,219
657
14,927
548
16,571
806
16,603
937
16,803
816
17,078
1,027
18,442
1,054
18,144
1,239
16,982
1,492
8,463
28
153
152
238
153
7,496
9,645
76
371
367
265
357
7,971
13,316
13
269
283
334
581
11,409
12,906
25
777
354
715
765
8,731
11,301
16
768
292
750
587
8,078
9,310
8
762
326
515
490
6,234
10,330
6
905
378
544
478
6,987
9,623
13
774
373
499
460
6,570
8,261
9
688
361
485
454
5,257
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
1,904
2,934
2,642
2,545
2,281
1,709
2,007
1,761
1,573
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
8,020
1,890
7
224
5,486
94
20
6,201
1,090
3
68
4,635
177
25
10,704
814
8
351
9,056
212
40
12,160
568
12
331
10,828
244
32
13,837
1,248
65
589
11,492
239
26
11,122
658
40
686
9,266
286
29
9,718
320
79
592
8,266
235
23
6,704
697
258
590
4,650
270
24
10,067
494
197
590
8,109
385
25
31
32
33
Asia
Japan
Middle East oil-exporting countries
590
213
8
860
523
8
640
350
5
952
705
4
717
471
4
807
643
3
3,263
3,066
3
2,961
2,444
10
2,726
2,199
5
34
35
Africa
Oil-exporting countries
140
12
37
0
57
1
57
0
71
1
79
9
128
1
125
1
88
1
36
All other 4
180
195
385
357
366
505
627
617
616
6,209
242
964
696
479
313
1,575
7,044
212
1,240
807
555
301
1,775
8,192
194
1,585
954
645
295
2,086
8,480
255
1,685
922
666
394
2,172
8,146
173
1,824
895
588
305
2,004
8,287
188
1,519
916
546
352
2,068
8,650
169
1,468
961
724
425
2,312
8,777
170
1,453
968
556
441
2,502
7,921
163
1,391
863
395
375
2,223
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1,091
1,074
1,114
1,066
1,143
1,226
1,270
1,290
1,307
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,184
58
323
297
36
508
147
2,375
14
246
326
40
661
192
2,655
13
264
427
41
840
203
2,737
12
291
450
32
861
253
3,222
12
256
409
43
975
307
2,997
27
255
352
40
907
340
3,401
18
195
829
17
974
336
3,379
16
239
782
43
880
310
2,980
19
225
401
39
832
268
52
53
54
Asia
Japan
Middle Eastern oil-exporting countries
3,570
1,199
518
4,127
1,460
460
4,594
1,900
621
4,500
1,798
609
4,322
1,776
513
4,695
1,842
682
5,310
2,127
760
5,028
1,824
659
5,343
2,447
446
55
56
Africa
Oil-exporting countries
429
108
488
67
429
95
428
73
439
60
549
78
456
75
507
97
497
107
57
Other 4
393
367
393
329
347
351
409
402
426
1. For a description of the changes in the international statistics tables, see
Federal Reserve Bulletin, vol. 65, (July 1979), p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
A63
3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
Transaction and area or country
1992
1994
1993
1994
1993
Jan.Jan.
July
Aug.
Sept. r
Oct. r
Nov. r
Dec/
Jan. p
32,843
28,362
32,238
28,965
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
221,367
226,503
319,449
297,913
32,238
28,965
24,441 r
25,046 r
26,133 r
23,693 r
23,892
23,023
32,350
27,840
31,924
28,755
3 Net purchases or sales ( - )
-5,136
21,536
3,273
—605r
4 Foreign countries
-5,169
21,264
2,440""
869
4,510
3,169
4,481
3,273
3,273
—652r
2,413 r
951
4,598
3,099
4,457
-4,927
-1,350
-80
-262
168
-3,301
1,407
2,203
-88
-3,943
-3,598
10
169
3,273
10,615
-103
1,647
-603
2,986
4,510
-3,213
5,709
-311
8,199
3,826
63
202
2,951
119
1,170
169
254
614
314
948
-100
-911
-800
10
61
— 185r
45r
76 r
-452r
3691
-73r
-l,400r
413r
-135
632
626
-49
72
67 OF
434
-152
112
69
-259
570
-5%
139
10
977
1,016
3
-16
3,095
198
328
134
409
1,709
-300
1,245
-77
602
349
5
28
1,407
45
130
-767
205
1,470
11
941
53
601
488
6
80
2,415
61
266
183
338
1,078
-110
1,058
11
965
681
20
98
2,951
119
1,170
169
254
614
314
948
-100
-911
-800
10
61
33
272
0
47
27
-82
-88
70
24
0
214,922
175,842
283,651
217,637
25,445
19,643
22,738
20,730
22,288
16,481
24,845
16,294
27,565
19,000
28,947
21,545
28,395
17,427
25,445
19,643
21 Net purchases or sales ( - )
39,080
66,014
5,802
2,008
5,807
8,551
8,565
7,402
10,968
5,802
22 Foreign countries
37,964
65,476
5,818
2,018
5,801
7,865
8,426
7,375
10,901
5,818
23
24
25
26
27
28
29
30
31
32
33
34
35
17,435
1,203
2,480
540
-579
12,421
237
9,300
3,166
7,545
-450
354
-73
21,805
2,346
883
-290
-627
18,970
1,653
16,493
3,257
20,846
11,569
1,149
273
2,868
215
-100
75
176
1,626
23
1,909
360
687
-104
-51
22
-1,001
-76
2
11
172
-1,214
218
901
147
1,382
890
224
147
2,102
64
-207
317
-327
1,847
164
1,678
158
1,432
919
317
-50
3,913
13
-419
219
-204
4,059
249
846
171
2,373
993
236
77
3,911
512
913
-518
203
2,666
95
1,727
375
2,256
1,574
47
15
1,534
110
-231
49
-80
2,300
54
2,650
432
2,765
1,478
-2
-58
3,118
145
-62
95
28
2,853
319
3,681
383
3,137
2,477
119
144
2,868
215
-100
75
176
1,626
23
1,909
360
687
-104
-51
22
1,116
538
-16
-10
6
686
139
27
67
-16
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 1
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations
- 9
202 r
133r
354r
-204r
-128r
613 r
-44
1,204
860
63
35
BONDS2
19 Foreign purchases
20 Foreign sales
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries
36 Nonmonetary international and
regional organizations
Foreign securities
37 Stocks, net purchases or sales ( - ) 3
38
Foreign purchases
39
Foreign sales 3
40 Bonds, net purchases or sales ( - )
41
Foreign purchases
42
Foreign sales
-32,259
150,051
182,310
-15,605
513,589
529,194
-69,063
245,571
314,634
-61,268
834,502
895,770
-5,907
32,928
38,835
-8,981
87,940
96,921
-7,992
19,607
27,599
-10,661
68,741
79,402
-12,229
20,737
32,966
-1,046
75,850
76,896
-5,176
21,475
26,651
-9,903
80,145
90,048
-7,474
24,740
32,214
-2,446
76,034
78,480
-6,931
28,408
35,339
-54
87,459
87,513
-6,502
31,128
37,630
-8,090
79,334
87,424
-5,907
32,928
38,835
-8,981
87,940
96,921
43 Net purchases or sales ( - ) , of stocks and bonds
-47,864
-130,331
-14,888
-18,653
-13,275
-15,079
-9,920
-6,985
-14,592
-14,888
44 Foreign countries
-51,274
-130,492
-14,931
-18,763
-13,329
-15,155
-10,269
-6,994
-14,622
-14,931
45
46
47
48
49
50
-31,350
-6,893
-4,340
-7,923
-13
-755
-87,556
-14,580
-9,324
-14,941
-185
-3,906
-5,406
-2,511
-2,997
-3,179
-60
-778
-15,516
-2,557
-633
121
4
-182
-10,544
1,635
-1,127
-2,644
7
-656
-13,207
-1,394
1,945
-2,221
14
-292
-5,004
-916
-1,280
-2,002
14
-1,081
-4,530
709
-2,248
-502
0
-423
-4,347
-1,718
-4,518
-3,553
13
-499
-5,406
-2,511
-2,997
-3,179
-60
-778
3,410
161
43
110
54
76
349
9
30
43
Europe
Canada
Latin America and Caribbean
Asia
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 securities sold abroad by U.S. corporations organized to finance direct investments
abroad.
3. In a July 1989 merger, the former stockholders of a U.S. company received
$5,453 million in shares of the new combined U.K. company. This transaction is
not reflected in the data,
A64
International Statistics • May 1994
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions
Millions of dollars
1993r
1994
Country or area
1992
1994
1993
Jan.Jan.
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan."
Transactions, net purchases or sales ( - ) during' period 1
1 Estimated total
39,288
24,285
-425
-1,531
13,980
-10,890
3,925
15,194
507
2 Foreign countries
37,935
24,116
-546
-1,144
14,368
-10,748
5,055
14,609
696
-546
-425
3
4
5
6
7
8
9
10
11
Europe
Belgium and Luxembourg
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Europe and former U.S.S.R
Canada
19,625
1,985
2,076
-2,959
-804
488
24,184
-5,345
562
-2,311
1,218
-9,977
-515
1,421
-1,501
6,266
777
11,252
-1,909
-63
2,327
52
-4
26
-3,372
-875
32
-1,539
505
-2,918
524
32
-223
1,455
-914
2,270
3,547
-218
305
-167
293
-74
3,787
-379
324
-5,917
207
1,209
137
53
-209
-8,201
887
-1,119
3,500
-205
1,176
-506
47
448
833
1,707
-342
-841
22
-750
206
141
573
-1,900
867
1,358
499
-65
571
-189
-31
-70
-412
695
846
-1,909
-63
2,327
52
-4
26
-3,372
-875
32
12
13
14
15
16
17
18
19
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other
-3,222
539
-1,956
-1,805
23,517
9,817
1,103
-3,650
-4,692
389
-5,925
844
20,557
17,070
1,156
-1,846
3,669
-208
2,960
917
-2,259
-3,074
-135
56
-333
2
510
-845
-2,587
-980
116
929
6,917
-7
1,178
5,746
3,755
3,561
292
-467
-3,311
32
-1,700
-1,643
-574
-1,809
616
-443
3,701
-102
676
3,127
-2,034
156
74
156
2,070
19
-36
2,087
11,796
5,661
35
191
-4,830
56
-1,061
-3,825
4,029
649
115
37
3,669
-208
2,960
917
-2,259
-3,074
-135
56
1,353
1,018
533
169
-336
654
121
315
7
-387
-321
-21
-388
-698
30
-142
-99
18
-1,130
-874
-23
585
821
40
-189
124
-1
121
315
7
37,935
6,876
31,059
24,116
1,297
22,819
-546
4,117
-4,663
-1,144
-4,677
3,533
14,368
724
13,644
-10,748
3,181
-13,929
5,055
1,619
3,436
14,609
6,248
8,361
6%
3,637
-2,941
-546
4,117
-4,663
4,317
11
-8,836
-5
-1,518
0
-1,261
0
-1,172
0
-980
0
-820
0
-6
0
84
-9
-1,518
0
20 Nonmonetary international and regional organizations
21
International
Latin American regional
22
MEMO
23 Foreign countries
Official institutions
24
Other foreign
25
Oil-exporting countries
26 Middle E a s t 2
27 Africa
1. Official and private transactions in marketable U.S. Treasury securities
having an original maturity of more than one year. Data are based on monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and notes
held by official institutions of foreign countries.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States),
3. Comprises Algeria, Gabon, Libya, and Nigeria,
Interest and Exchange Rates
3.26
A65
DISCOUNT RATES OF FOREIGN CENTRAL BANKS 1
Percent per year
Rate on Mar. 31, 1994
Rate on Mar. 31, 1994
Country
Percent
5.0
5.0
5.64
5.50
5.90
Austria..
Belgium .
Canada..
Denmark
France2..
Country
Month
effective
Feb.
Feb.
Mar.
Feb.
Mar.
1994
1994
1994
1994
1994
Percent
Germany...
Italy
Japan
Netherlands
5.25
7.5
1.75
5.0
1. Rates shown are mainly those at which the central bank either discounts or
makes advances against eligible commercial paper o r government securities for
commercial banks or brokers. F o r countries with more than one rate applicable t o
such discounts o r advances, the rate shown is the one at which it is understood
that the central bank transacts the largest proportion of its credit operations.
3.27
Rate o n M a r . 31, 1994
Country
Month
effective
Month
effective
Feb.
Feb.
Sept.
Dec.
1994
1994
1993
1993
4.75
4.0
12.0
Norway
Switzerland
United Kingdom
F e b . 1994
D e c . 1993
Sept. 1992
2. Since February 1981, the rate has been that at which the Bank of F r a n c e
discounts Treasury bills for seven to ten days.
FOREIGN SHORT-TERM INTEREST RATES 1
Percent per year, averages of daily figures
1993
T y p e or country
1
7
3
4
5
6
7
8
9
10
Eurodollars
United Kingdom
Canada
Germany
Switzerland
Netherlands
France
Italy
Belgium
Japan
1991
5.86
11.47
9.07
9.15
8.01
9.19
9.49
12.04
9.30
7.33
1992
3.70
9.56
6.76
9.42
7.67
9.25
10.14
13.91
9.31
4.39
3.18
5.88
5.14
7.17
4.79
6.73
8.30
10.09
8.10
2.96
1. Rates are for three-month interbank loans, with the following exceptions:
Canada, finance company paper; Belgium, three-month Treasury bills; and Japan,
C D rate.
1994
1993
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
3.08
5.88
4.90
6.52
4.61
6.26
7.07
9.05
9.82
2.59
3.26
5.74
4.76
6.53
4.44
6.20
6.85
8.69
9.05
2.44
3.36
5.52
4.34
6.20
4.44
5.85
6.56
8.94
7.93
2.31
3.26
5.29
4.09
5.99
4.10
5.50
6.39
8.56
7.03
2.06
3.15
5.34
3.89
5.76
3.90
5.12
6.19
8.38
6.88
2.13
3.43
5.15
3.89
5.78
4.04
5.19
6.18
8.42
6.39
2.21
3.75
5.12
4.45
5.73
3.99
5.23
6.11
8.36
6.10
2.26
A66
3.28
International Statistics • May 1994
FOREIGN EXCHANGE RATES 1
Currency units per dollar except as noted
1994
1993
Country/currency unit
1
2
3
4
5
6
7
8
9
10
Australia/dollar 2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
11
12
13
14
15
16
17
18
19
20
Hong Kong/dollar
India/rupee
Ireland/pound 2
Italy/lira
Japan/yen
Malay sia/ringgit
Netherlands/guilder
New Zealand/dollar 2
Norway/krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound
MEMO
31 United States/dollar 3
1991
1992
1993
Nov.
Dec.
Jan.
Feb.
Mar.
77.872
11.686
34.195
1.1460
5.3337
6.4038
4.0521
5.6468
1.6610
182.63
73.521
10.992
32.148
1.2085
5.5206
6.0372
4.4865
5.2935
1.5618
190.81
67.993
11.639
34.581
1.2902
5.7795
6.4863
5.7251
5.6669
1.6545
229.64
66.100
11.540
35.674
1.3263
5.8013
6.6379
5.7554
5.7541
1.6405
237.93
66.465
11.958
36.227
1.3174
5.8086
6.7667
5.8143
5.9069
1.7005
243.43
67.364
12.025
35.694
1.3308
5.8210
6.7042
5.7602
5.8477
1.7105
245.51
69.608
12.252
36.206
1.3173
8.7219
6.7697
5.7004
5.9207
1.7426
250.29
71.611
12.200
35.768
1.3424
8.7249
6.7668
5.5930
5.8955
1.7355
250.48
71.087
11.8%
34.862
1.3644
8.7241
6.62%
5.5436
5.7647
1.6909
246.71
7.7712
22.712
161.39
1,241.28
134.59
2.7503
1.8720
57.832
6.4912
144.77
7.7402
28.156
170.42
1,232.17
126.78
2.5463
1.7587
53.792
6.2142
135.07
7.7357
31.291
146.47
1,573.41
111.08
2.5738
1.8585
54.127
7.0979
161.08
7.7307
31.505
143.19
1,600.93
107.02
2.5478
1.8438
55.260
7.1755
169.60
7.7272
31.434
140.31
1,666.31
107.88
2.5548
1.9084
54.787
7.3882
173.93
7.7245
31.440
141.82
1,687.17
109.91
2.5737
1.9162
55.631
7.4211
174.58
7.7251
31.440
143.03
1,699.45
111.44
2.7160
1.9516
56.263
7.5064
176.04
7.7353
31.449
141.91
1,685.96
106.30
2.7624
1.9464
57.436
7.4885
175.15
7.7268
31.415
143.40
1,666.63
105.10
2.7171
1.9006
57.093
7.3419
174.00
1.7283
2.7633
736.73
104.01
41.200
6.0521
1.4356
26.759
25.528
176.74
1.6294
2.8524
784.58
102.38
44.013
5.8258
1.4064
25.160
25.411
176.63
1.6158
3.2729
805.75
127.48
48.205
7.7956
1.4781
26.416
25.333
150.16
1.5735
3.3924
813.45
132.18
48.954
8.0195
1.4432
26.865
25.269
150.23
1.5950
3.3680
809.79
137.27
49.187
8.2660
1.4969
26.884
25.382
148.08
1.5975
3.3788
812.57
140.42
49.322
8.3501
1.4634
26.768
25.460
149.13
1.6037
3.4107
813.55
143.04
49.460
8.1184
1.4716
26.495
25.543
149.23
1.5873
3.4520
812.24
141.08
49.113
7.9869
1.4565
26.440
25.382
147.92
1.5819
3.4586
810.69
138.78
48.931
7.9156
1.4292
26.414
25.325
149.19
89.84
86.61
93.18
93.29
95.47
95.73
95.79
94.35
1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) monthly statistical release.
For ordering address, see inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the
currencies of ten industrial countries. The weight for each of the ten countries is
Oct.
96.54
the 1972-76 average world trade of that country divided by the average world
trade of all ten countries combined. Series revised as of August 1978 (see Federal
Reserve Bulletin, vol. 64 (August 1978), p. 700).
A67
Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List
Published
Semiannually,
with Latest
Anticipated schedule of release dates for periodic releases
SPECIAL
Bulletin
Reference
Issue
December 1993
Page
A78
TABLES—Quarterly Data Published Irregularly, with Latest Bulletin Reference
Title and Date
Issue
Page
Assets and liabilities of commercial banks
March 31, 1993
June 30, 1993
September 30, 1993
December 31, 1993
August
November
February
May
1993
1993
1994
1994
A70
A70
A70
A68
Terms of lending at commercial banks
May 1993
August 1993
November 1993
February 1994
August
November
February
May
1993
1993
1994
1994
A76
A76
A76
A74
Assets and liabilities of U.S. branches and agencies of foreign banks
March 31, 1993
June 30, 1993
September 30, 1993
December 31, 1993
August
November
February
May
1993
1993
1994
1994
A80
A80
A80
A78
Pro forma balance sheet and income statements for priced service operations
June 30, 1991
September 30, 1991
March 30, 1992
June 30, 1992
November
January
August
October
1991
1992
1992
1992
A80
A70
A80
A70
Assets and liabilities of life insurance companies
June 30, 1991
September 30, 1991
December 31, 1991
September 30, 1992
December
May
August
March
1991
1992
1992
1993
A79
A81
A83
A71
A68
Special Tables • May 1994
4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities1
Consolidated Report of Condition, December 31, 1993
Millions of dollars except as noted
Banks with foreign offices 2
Item
1 Total assets 4
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
MEMO
9 Non-interest-bearing 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
obligations
N
U.S. Treasury securities
14
U.S. government agency and corporation obligations
15
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
16
All other
Securities issued by states and political subdivisions in the United States
17
18
Other domestic debt securities
All holdings of private certificates of participation in pools of
19
residential mortgages
7.0
All other domestic debt securities
21
Foreign debt securities
27
Equity securities
73
Marketable
Investments in mutual funds
74
75
Other
76
LESS: Net unrealized loss
Other equity securities
27
28
7.9
30
31
37
33
34
35
36
Federal funds sold and securities purchased under agreements to resell
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)
LESS: Allowance for loan and lease losses
LESS: Allocated transfer risk reserves
EQUALS: Total loans and leases, net
Total loans, gross, by category
37 Loans secured by real estate
Construction and land development
38
39
Farmland
40
One- to four-family residential properties
41
Revolving, open-end loans, extended under lines of credit
47
All other loans
Multifamily (five or more) residential properties
43
Nonfarm nonresidential properties
44
45 Loans to depository institutions
Commercial banks in the United States
46
47
Other depository institutions in the United States
48
Banks in foreign countries
Banks with domestic
offices only
Total
Total
Foreign
Domestic
Over 100
Under 100
3,674,733
2,072,839
489,039
1,679,827
1,250,244
351,649
271,401
185,962
79,070
n.a.
n.a.
27,346
59,194
20,353
74,309
2,110
n.a.
n.a.
17,892
54,215
92
111,653
76,960
58,876
18,083
9,453
4,979
20,262
65,378
34,385
22,314
12,071
16,121
2,489
12,382
20,061
4
1
i
n.a.
1
4
T
i
n.a.
1
¥
n.a.
n.a.
n.a.
3,055,995
1,609,283
n.a.
7,248
n.a.
•
13,143
8,274
1,128,337
318,376
826,378
354,172
34,436
319,735
353,872
118,335
652,811
n.a.
n.a.
269,545
101,193
168,352
5,876
2,383
3,494
263,668
98,810
164,859
288,772
120,421
168,351
94,494
n.a.
n.a.
176,342
n.a.
77,217
n.a.
88,351
80,001
21,343
27,736
3,418
76
580
204
84,933
79,925
20,762
27,531
70,234
98,116
38,023
20,393
17,757
n.a.
17,851
n.a.
4,706
47,771
n.a.
15,302
6,710
3,882
2,866
37
8,592
2,378
25,358
28,194
7,354
2,338
757
1,581
0
5,017
0
204
26,546
1,230
357
23
334
0
873
2,378
25,154
1,648
6,125
1,981
734
1,248
0
4,144
2,241
18,152
378
6,306
3,312
2,180
1,149
17
2,994
88
4,261
n.a.
1,641
1,060
945
135
20
581
149,657
122,662
26,995
2,138,794
6,475
2,132,320
52,187
172
2,079,961
88,564
64,754
23,810
1,202,798
2,498
1,200,300
33,587
166
1,166,547
413
n.a.
n.a.
215,411
876
214,535
n.a.
n.a.
n.a.
88,151
n.a.
n.a.
987,387
1,622
985,764
n.a.
n.a.
n.a.
43,770
40,765
3,006
749,051
2,884
746,167
15,465
7
730,695
17,322
17,143
180
186,946
1,092
185,853
3,134
0
182,719
911,394
419,998
22,337
4
T
387,761
26,655
7,731
214,380
29,803
184,577
13,890
125,105
6,013
5,426
293
294
103,636
6,468
10,934
55,976
2,787
53,190
2,344
27,913
306
n.a.
n.a.
n.a.
T
1
n.a.
1
1
T
1
n.a.
1
1
44,982
n.a.
n.a.
n.a.
38,664
17,484
383
20,797
18,717
582
34
18,100
397,660
32,666
2,182
237,430
39,968
197,463
13,124
112,258
19,946
16,901
348
2,697
4
t
4
•
I
n.a.
1
1
t
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Acceptances of other banks
U.S. banks
Foreign banks
Loans to individuals for household, family, and other personal expenditures (includes
purchased paper)
Credit cards and related plans
57
58
Other (includes single payment and installment)
36,987
536,078
n.a.
n.a.
2,147
n.a.
n.a.
5,676
381,266
302,990
78,276
1,628
377
1,250
212
95,673
20,327
75,345
1,261
158
1,103
5,465
285,593
282,662
2,931
367
219
148
11,924
124,342
123,892
450
368
n.a.
n.a.
19,386
30,470
n.a.
n.a.
151
n.a.
n.a.
416,697
153,811
262,885
193,131
79,366
113,765
21,555
n.a.
n.a.
171,576
n.a.
n.a.
193,399
72,608
120,791
30,167
1,837
28,329
59 Obligations (other than securities) of states and political subdivisions in the United
States (includes nonrated industrial development obligations)
60
Taxable
61
Tax-exempt
67 All other loans
63
Loans to foreign governments and official institutions
64
Other loans
Loans for purchasing and carrying securities
65
66
All other loans
21,210
1,954
19,256
132,049
n.a.
n.a.
n.a.
n.a.
11,176
1,324
9,852
121,419
20,117
101,302
n.a.
n.a.
275
155
120
52,083
19,311
32,772
n.a.
n.a.
10,901
1,169
9,732
69,336
806
68,530
20,818
47,712
8,880
584
8,296
9,481
32
9,449
2,076
7,373
1,154
45
1,108
1,150
n.a.
n.a.
n.a.
n.a.
37,251
122,390
54,966
16,736
3,559
13,308
n.a.
17,669
118,710
29,840
120,542
30,108
10,662
3,237
12,871
n.a.
11,018
89,157
3,297
82,478
i
T
1
n.a.
1
I
26,543
37,897
n.a.
n.a.
n.a.
n.a.
55,301
n.a.
n.a.
6,884
1,698
19,066
4,924
290
419
n.a.
6,200
23,933
527
150
5,793
1,149
31
18
n.a.
451
5,620
49
50
51
52
53
54
55
56
67
68
69
70
71
72
73
74
75
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 Act and agreement subsidiaries, and IBFs . . .
Intangible assets
Other assets
•
Commercial Banks
A69
4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities1—Continued
Consolidated Report of Condition, December 31, 1993
Millions of dollars except as noted
Banks with foreign offices
Banks with domestic
offices only 3
Total
Total
Foreign
Domestic
Over 100
Under 10<
,674,733
2,072,839
n.a.
n.a.
1,250,244
351,649
77 Total liabilities
78
Limited-life preferred stock
,380,280
4
1,918,663
0
489,035
n.a.
1,525,654
n.a.
1,144,213
1
317,404
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
Mother6
,730,266
1,416,605
329,906
202,884
1,086,698
1,010,118
5,344
30,377
20,438
3,435
5,998
1,066
9,922
n.a.
1,004,967
937,943
2,583
44,342
8,050
4,533
226
53
7,236
n.a.
308,695
283,170
548
20,192
1,171
1,358
n.a.
n.a.
2,206
50
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
430,297
372,202
4,993
14,833
19,330
2,562
5,706
749
9,922
n.a.
322,772
288,772
2,242
17,382
5,644
1,280
199
17
7,236
n.a.
95,910
84,651
433
7,862
555
166
n.a.
n.a.
2,206
36
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
Certified and official checks
107
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
309,182
257,604
4,702
8,613
19,330
2,561
5,702
748
9,922
n.a.
656,401
637,917
351
15,544
1,107
90
1,017
873
291
7
285
318
n.a.
180,591
157,873
2,208
6,180
5,607
1,270
199
17
7,236
n.a.
682,194
649,171
341
26,961
2,407
452
1,954
3,253
26
0
26
36
n.a.
46,541
41,300
416
1,874
550
163
n.a.
n.a.
2,206
31
212,784
198,519
114
12,329
616
n.a.
n.a.
1,192
n.a.
n.a.
n.a.
n.a.
14
76 Total liabilities, limited-life preferred stock, and equity capital
5
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
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 owed to own foreign offices, Edge Act and agreement subsidiaries, and IBFs
All other liabilities
Total equity capital 7
MEMO
Holdings of commercial paper included in total loans, gross
Total individual retirement (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
Money market deposit accounts (savings deposits; 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 negotiable order of withdrawal (NOW) accounts (including Super NOWs)
Total time and savings deposits
-
n.a.
n.a.
n.a.
<
20,179
n.a.
n.a.
272,100
176,989
95,112
n.a.
184,551
13,402
37,139
n a.
107,872
294,449
n a.
28,805
10,737
n.a.
n.a.
27,738
814
98,469
n.a.
196,473
136,172
60,301
n.a.
140,269
12,965
34,760
n.a.
89,072
154,176
277
n.a.
n.a.
n.a.
59,228
3,177
n.a.
n.a.
n.a.
n.a.
196,195
n.a.
n.a.
28,520
81,041
9,789
n.a.
40,725
n.a.
n.a.
72,088
39,438
32,650
6,096
42,298
419
2,340
n.a.
16,006
106,030
3,540
1,379
2,161
333
1,985
18
39
n.a.
2,794
34,243
575
119
456
62,794
22,443
16,172
1,116
878
64,877
15,847
13,143
3,265
n.a.
17,039
634
608
549
15,057
244,439
135,624
190,260
73,388
12,691
120,225
777,516
9,877
173,211
135,858
288
82,385
2,695
139,686
824,376
59
38,161
40,603
107,633
25,464
925
48,085
262,154
942,546
724,883
182,682
11,607
8,957
116,582
136,898
47,884
248,052
133,704
78,765
211,480
175,332
134,088
82,330
294,051
38,179
40,098
25,010
109,189
2,807
7,905
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, automated transfer service
(ATS) accounts, and telephone and preauthorized transfer accounts)
Nontransaction accounts in domestic offices
148
Money market deposit accounts
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
10,922
210
n.a.
n.a.
n.a.
A68
4.21
Special Tables • May 1994
DOMESTIC OFFICES Insured Commercial Banks with Assets of $100 Million or More or With Foreign Offices1
Consolidated Report of Condition, December 31, 1993
Millions of dollars except as noted
Members
Item
1 Total assets 4
? Cash and balances due from depository institutions
4
6
7
Cash items in process of collection and unposted debits
Currency and coin
Balances due from depository institutions in the United States
Balances due from banks in foreign countries and foreign central banks
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
All holdings of U.S. government-issued or guaranteed certificates of
12
participation in pools of residential mortgages
Allother
n
14
Securities issued by states and political subdivisions in the United States
Other domestic debt securities
15
16
All holdings of private certificates of participation in pools of residential mortgages
17
All other domestic debt securities
18
Foreign debt securities
19
Equity securities
70
Marketable
Investments in mutual funds
71
Other
77
LESS: Net unrealized loss
73
24
Other equity securities
75 Federal funds sold and securities purchased under agreements to resell 8
Federal funds sold
76
Securities purchased under agreements to resell
7,7
28 Total loans and lease-financing receivables, gross
79
LESS: Unearned income on loans
30 Total loans and leases (net of unearned income)
31
3?
33
34
35
36
37
38
39
40
41
42
Total loans, gross, by category
Loans secured by real estate
Construction and land development
Farmland
One- to four-family residential properties
Revolving, open-end and extended under lines of credit
All other loans
Multifamily (five or more) residential properties
Nonfarm nonresidential properties
Commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Loans to finance agricultural production and other loans to fanners
43 Commercial and industrial loans
44
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
45
46 Acceptances of other banks 9
47
U.S. banks
Foreign banks
48
49 Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
Credit cards and related plans
50
Other (includes single-payment and installment loans)
51
52 Loans to foreign governments and official institutions
53 Obligations (other than securities) of states and political subdivisions in the United States
(includes nonrated industrial development obligations)
54
Taxable
55
Tax-exempt
56 Other loans
57
Loans for purchasing and carrying securities
All other loans
58
59
60
61
62
Lease-financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs
Remaining assets
Nonmembers
Total
Total
National
State
2,930,071
2,295,573
1,769,915
525,658
634,498
177,031
81,191
30,154
25,575
7,468
32,644
147,900
72,589
24,944
16,986
6,896
26,485
116,935
57,845
19,903
13,817
6,388
18,982
30,965
14,745
5,040
3,170
508
7,503
29,130
8,601
5,210
8,588
572
6,159
2,537,460
1,960,177
1,536,992
423,185
577,283
673,607
219,231
333,209
510,692
161,799
259,891
380,202
124,546
192,112
130,490
37,253
67,779
162,915
57,431
73,319
155,167
178,042
58,785
47,924
4,618
43,306
2,026
12,431
5,294
2,914
2,397
17
7,138
127,340
132,550
40,920
37,479
3,863
33,616
1,550
9,053
2,929
1,423
1,511
5
6,124
92,433
99,678
29,010
26,462
3,039
23,423
1,223
6,849
1,978
1,246
736
4
4,871
34,907
32,872
11,910
11,017
824
10,193
327
2,203
951
177
775
1
1,253
27,827
45,491
17,865
10,446
756
9,690
476
3,379
2,365
1,491
886
12
1,014
131,921
40,765
3,006
1,736,438
4,507
1,731,931
109,446
25,678
1,969
1,342,931
2,893
1,340,038
82,319
21,027
1,704
1,076,705
2,234
1,074,471
27,128
4,650
265
266,226
659
265,567
22,475
15,087
1,036
393,507
1,614
391,893
785,421
59,321
9,913
451,811
69,771
382,040
27,013
237,363
22,328
641
2,991
17,389
586,819
43,983
5,904
348,022
54,382
293,640
19,026
169,884
18,527
370
2,744
12,004
475,045
35,268
4,940
282,484
43,633
238,851
15,435
136,919
15,230
287
1,348
10,360
111,774
8,715
965
65,538
10,749
54,789
3,591
32,965
3,297
83
1,396
1,644
198,602
15,337
4,009
103,789
15,389
88,400
7,988
67,479
3,801
271
247
5,385
409,935
406,554
3,381
334,694
331,622
3,072
267,876
265,331
2,545
66,818
66,291
527
75,241
74,932
309
735
372
232
401
183
198
329
134
183
72
49
15
334
189
34
364,975
72,608
120,791
838
270,644
49,904
74,594
829
221,353
46,240
59,649
739
49,291
3,664
14,945
90
94,331
22,704
46,197
9
19,781
1,753
18,028
77,979
22,894
55,085
16,082
1,489
14,593
71,694
20,799
50,894
11,900
982
10,917
49,763
12,301
37,462
4,183
507
3,676
21,931
8,499
13,432
3,699
264
3,436
6,285
2,095
4,191
33,427
10,123
55,301
205,457
28,125
9,480
48,682
178,016
22,477
7,010
17,692
108,977
5,648
2,470
30,989
69,039
5,302
644
6,620
27,441
Commercial Banks
A71
4.21 DOMESTIC OFFICES Insured Commercial Banks with Assets of $100 Million or More or With Foreign Offices1—Continued
Consolidated Report of Condition, December 31, 1993
Millions of dollars except as noted
Members
Item
Nonmembers
Total
Total
National
State
634,498
63 Total liabilities a n d equity capital
2,930,071
2,295,573
1,769,915
525,658
64 Total liabilities 5
2,669,867
2,091,925
1,615,055
476,869
577,943
65 Total d e p o s i t s
Individuals, p a r t n e r s h i p s , a n d c o r p o r a t i o n s
66
U.S. government
67
68
States a n d political subdivisions in the United S t a t e s
C o m m e r c i a l b a n k s in the U n i t e d States
69
O t h e r d e p o s i t o r y institutions in t h e U n i t e d S t a t e s
70
B a n k s in foreign c o u n t r i e s
71
F o r e i g n g o v e r n m e n t s a n d official institutions
7?
Certified a n d official c h e c k s
73
2,091,665
1,948,061
7,928
74,719
28,488
7,968
6,223
1,120
17,158
1,613,722
1,502,351
6,753
54,128
25,170
5,070
5,746
916
13,589
1,271,759
1,186,112
5,425
42,210
20,011
4,097
3,277
532
10,095
341,%3
316,239
1,328
11,918
5,159
973
2,469
384
3,494
477,943
445,711
1,175
20,591
3,318
2,898
477
204
3,569
74 T o t a l t r a n s a c t i o n a c c o u n t s
Individuals, p a r t n e r s h i p s , and c o r p o r a t i o n s
75
76
U.S. government
S t a t e s a n d political subdivisions in t h e United States
77
C o m m e r c i a l b a n k s in t h e United States
78
79
O t h e r d e p o s i t o r y institutions in t h e U n i t e d S t a t e s
B a n k s in foreign c o u n t r i e s
80
Foreign g o v e r n m e n t s and official institutions
81
Certified a n d official c h e c k s
82
753,069
660,974
7,235
32,214
24,974
3,842
5,906
766
17,158
603,790
526,534
6,188
24,605
23,553
3,053
5,553
713
13,589
472,469
413,126
4,977
19,284
19,027
2,374
3,182
403
10,095
131,321
113,408
1,211
5,321
4,526
679
2,371
310
3,494
149,279
134,440
1,047
7,609
1,421
788
353
53
3,569
83 D e m a n d d e p o s i t s (included in total t r a n s a c t i o n a c c o u n t s )
Individuals, p a r t n e r s h i p s , a n d c o r p o r a t i o n s
84
85
U.S. government
S t a t e s a n d political subdivisions in the United S t a t e s
86
C o m m e r c i a l b a n k s in the U n i t e d S t a t e s
87
88
O t h e r d e p o s i t o r y institutions in the U n i t e d S t a t e s
89
B a n k s in foreign c o u n t r i e s
F o r e i g n g o v e r n m e n t s a n d official institutions
90
Certified a n d official c h e c k s
91
489,773
415,477
6,910
14,794
24,936
3,831
5,902
765
17,158
401,476
337,049
5,876
12,105
23,542
3,049
5,553
713
13,589
307,823
259,086
4,671
8,999
19,017
2,370
3,182
403
10,095
93,653
77,%3
1,205
3,106
4,525
679
2,371
310
3,494
88,297
78,428
1,034
2,689
1,394
782
349
52
3,569
1,338,5%
1,287,088
692
42,505
3,514
542
2,972
4,126
317
7
311
354
1,009,933
975,816
565
29,523
1,616
88
1,528
2,017
193
3
190
203
799,290
772,986
448
22,926
984
62
922
1,722
3
93
129
210,642
202,831
117
6,597
633
26
607
294
97
0
97
74
328,663
311,271
127
12,982
1,898
454
1,443
2,110
124
3
121
151
268,283
39,438
32,650
34,617
123,339
10,207
2,340
40,725
139,417
223,446
29,919
20,658
31,750
93,231
9,563
1,717
30,365
118,494
160,624
25,497
16,177
20,387
68,600
7,058
1,541
26,733
85,086
62,823
4,421
4,481
11,363
24,631
2,505
176
3,632
33,408
44,836
9,519
11,991
2,866
30,108
644
623
10,361
20,923
260,204
203,648
154,860
48,789
56,555
1,334
127,671
38,289
29,315
4,381
330
99,040
26,140
19,833
3,048
320
80,161
20,914
16,379
2,822
10
18,878
5,227
3,454
226
1,004
28,631
12,149
9,482
1,333
9? T o t a l n o n t r a n s a c t i o n a c c o u n t s
Individuals, p a r t n e r s h i p s , and c o r p o r a t i o n s
93
94
U.S. government
95
S t a t e s a n d political subdivisions in t h e United States
% C o m m e r c i a l b a n k s in t h e U n i t e d S t a t e s
U . S . b r a n c h e s a n d agencies of foreign b a n k s
97
O t h e r c o m m e r c i a l b a n k s in the U n i t e d States
98
99
O t h e r d e p o s i t o r y institutions in the U n i t e d States
100
B a n k s in f o r e i g n c o u n t r i e s
Foreign b r a n c h e s of o t h e r U . S . b a n k s
101
O t h e r b a n k s in foreign c o u n t r i e s
102
F o r e i g n g o v e r n m e n t s a n d official institutions
103
104
105
106
107
108
109
110
111
112
F e d e r a l f u n d s p u r c h a s e d a n d securities sold u n d e r a g r e e m e n t s t o r e p u r c h a s e 1 0
Federal funds purchased
Securities sold u n d e r a g r e e m e n t s t o r e p u r c h a s e
D e m a n d n o t e s issued t o t h e U . S . T r e a s u r y
Other borrowed money
B a n k s liability o n a c c e p t a n c e s e x e c u t e d a n d outstanding
N o t e s a n d d e b e n t u r e s s u b o r d i n a t e d t o deposits
N e t o w e d t o o w n foreign offices, E d g e A c t and a g r e e m e n t subsidiaries, a n d I B F s
R e m a i n i n g liabilities
113
114
115
116
117
118
119
MEMO
H o l d i n g s of c o m m e r c i a l p a p e r included in total l o a n s , gross
T o t a l individual r e t i r e m e n t ( I R A ) a n d K e o g h plan a c c o u n t s
Total brokered deposits
T o t a l b r o k e r e d retail d e p o s i t s
I s s u e d in d e n o m i n a t i o n s of $100,000 o r less
..
I s s u e d in d e n o m i n a t i o n s g r e a t e r t h a n $100,000 a n d participated out by the b r o k e r in shares
of $100,000 o r less
120
171
177
173
174
175
126
M o n e y m a r k e t d e p o s i t a c c o u n t s (savings d e p o s i t s ; M M D A s )
O t h e r savings a c c o u n t s
Total time d e p o s i t s of less t h a n $100,000
T i m e certificates of d e p o s i t of $100,000 o r m o r e
O p e n - a c c o u n t time d e p o s i t s of $100,000 o r m o r e
All negotiable o r d e r of w i t h d r a w a l ( N O W ) a c c o u n t s (including S u p e r N O W s )
T o t a l time a n d savings d e p o s i t s
Quarterly
averages
177
128 Obligations (other t h a n securities) of s t a t e s and political subdivisions in the United States
179 T r a n s a c t i o n a c c o u n t s ( N O W a c c o u n t s , a u t o m a t e d t r a n s f e r service (ATS) a c c o u n t s , and
telephone preauthorized transfer accounts)
NO
131
137,
133
Nontransaction accounts
Money market deposit accounts
O t h e r savings d e p o s i t s
T i m e certificates of d e p o s i t s of $100,000 or m o r e
All o t h e r time d e p o s i t s
134 N u m b e r of b a n k s
Footnotes appear at the end of table 4.22
%
24,934
16,785
13,557
3,228
8,149
417,651
271,482
478,305
155,772
15,386
259,911
1,601,891
331,552
205,222
352,703
107,902
12,554
200,443
1,212,246
262,412
151,264
289,236
89,631
6,746
163,025
%3,936
69,140
53,958
63,466
18,271
5,808
37,417
248,311
86,098
66,260
125,602
47,870
2,832
59,468
389,645
1,667,429
20,564
1,289,382
16,784
1,032,191
12,160
257,191
4,624
378,047
3,780
253,480
194,595
157,505
37,090
58,885
423,384
267,793
161,095
505,530
336,059
202,261
113,675
376,419
265,164
148,494
94,504
304,163
70,8%
53,768
19,171
72,256
87,324
65,531
47,419
129,111
3,017
1,592
1,292
300
1,425
A68
Special Tables • May 1994
4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities1
Consolidated Report of Condition, December 31, 1993
Millions of dollars except as noted
Members
Nonmembers
Item
Total
National
State
3,281,720
2,428,820
1,870,612
558,208
852,900
197,092
33,272
28,664
135,156
155,708
26,127
16,470
113,111
122,954
20,814
13,147
88,993
32,753
5,312
3,323
24,118
41,384
7,145
12,194
22,045
2,858,969
2,081,544
1,628,457
453,087
777,425
791,941
646,934
76,637
54,299
4,706
49,593
14,072
6,353
3,859
2,532
37
7,719
149,243
57,907
3,185
1,923,384
5,599
1,917,785
556,376
458,859
47,170
40,557
3,891
36,666
9,790
3,332
1,798
1,546
12
6,458
116,494
32,679
2,015
1,411,992
3,318
1,408,674
415,829
345,833
33,781
28,781
3,056
25,725
7,434
2,312
1,559
763
10
5,121
87,447
26,121
1,740
1,127,728
2,547
1,125,181
140,548
113,026
13,389
11,776
835
10,941
2,356
1,019
239
783
2
1,337
29,046
6,559
275
284,265
771
283,494
235,565
188,075
29,466
13,742
815
12,926
4,282
3,022
2,061
986
25
1,260
32,750
25,228
1,171
511,391
2,281
509,110
889,057
65,789
20,847
507,787
72,557
435,229
29,358
265,276
624,927
46,409
9,333
368,960
55,525
313,435
19,916
180,308
502,959
37,007
7,604
297,663
44,380
253,283
16,108
144,577
121,968
9,402
1,729
71,297
11,145
60,152
3,808
35,731
264,130
19,380
11,514
138,827
17,032
121,794
9,442
84,968
26,265
36,775
440,405
885
21,850
18,501
346,528
435
17,029
15,417
276,438
359
4,821
3,085
70,090
77
4,416
18,273
93,877
450
395,142
74,445
149,120
20,935
1,798
19,137
79,966
33,954
10,142
55,301
215,517
281,952
50,631
85,175
16,476
1,505
14,971
73,024
28,300
9,493
48,682
182,075
229,865
46,843
67,558
12,206
993
11,212
50,837
22,619
7,021
17,692
112,180
52,087
3,787
17,617
4,270
512
3,759
22,186
5,682
2,472
30,989
69,895
113,190
23,814
63,945
4,459
293
4,166
6,943
5,654
649
6,620
33,442
48 Total liabilities and equity capital
3,281,720
2,428,820
1,870,612
558,208
852,900
49 Total liabilities 5
2,987,272
2,212,349
1,706,025
506,324
774,923
1,730,525
1,609,916
6,991
61,154
25,867
5,444
14,466
6,687
1,360,009
1,267,550
5,605
47,720
20,221
4,346
10,751
3,816
370,516
342,366
1,386
13,434
5,646
1,098
3,715
2,871
669,835
621,316
1,484
33,757
3,792
3,882
4,898
706
1 Total assets 4
2 Cash and balances due from depository institutions
3
Currency and coin
4
Non-interest-bearing balances due from commercial banks
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 resell
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
28
29
30
31
32
One- to four-family residential properties
Revolving, open-end loans, and extended under lines of credit
All other loans
Multifamily (five or more) residential properties
Nonfarm nonresidential properties
33
34
35
36
37
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)
38
Credit cards and related plans
39
Other (includes single payment installment)
40 Obligations (other than securities) of states and political subdivisions in the United States
44 Lease-financing receivables
45 Customers' liability on acceptances outstanding
46 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs
51
Individuals, partnerships, and corporations
53
54
55
56
57
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Certified and official checks
All other
2,400,360
2,231,231
8,475
94,911
29,659
9,326
19,364
7,393
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
848,979
745,625
7,669
40,077
25,529
4,008
19,364
6,708
641,349
559,681
6,366
27,375
24,046
3,125
14,466
6,290
501,048
438,546
5,115
21,519
19,094
2,432
10,751
3,591
140,301
121,136
1,251
5,856
4,953
693
3,715
2,698
207,630
185,943
1,303
12,701
1,483
883
4,898
418
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
536,315
456,777
7,326
16,668
25,487
3,994
19,364
6,698
420,140
353,437
6,052
12,750
24,031
3,120
14,466
6,285
321,711
271,518
4,807
9,538
19,080
2,427
10,751
3,591
98,429
81,919
1,245
3,213
4,951
692
3,715
2,694
116,175
103,341
1,275
3,917
1,456
874
4,898
414
1,551,380
1,485,606
806
54,834
4,130
5,318
686
1,089,175
1,050,234
625
33,778
1,821
2,319
397
858,961
829,004
490
26,201
1,127
1,914
224
230,215
221,230
135
7,577
694
405
173
462,205
435,372
181
21,055
2,309
2,999
288
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
A73
4.22 DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities1—Continued
Consolidated Report of Condition, December 31, 1993
Millions of dollars except as noted
Members
Item
81
82
83
84
85
86
87
88
89
Federal funds purchased and securities sold under agreements to repurchase 1 0
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 owed to own foreign offices, Edge Act and agreement subsidiaries, and IBFs
Remaining liabilities
90 Total equity capital 7
91
92
93
94
95
96
97
98
99
MEMO
Assets held in trading accounts
U.S. Treasury securities
U.S. government agency corporation obligations
Securities issued by states and political subdivisions in the United States
Other bonds, notes, and debentures
Certificates of deposit
Commercial paper
Bankers acceptances
Other
100 Total individual retirement (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
Ill
Savings deposits
Money market deposit accounts (savings deposits; 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 negotiable order of withdrawal (NOW) accounts (including Super NOWs)
Total time and savings deposits
Quarterly averages
112 Total loans
113 Transaction accounts (NOW accounts, automated transfer service (ATS) accounts, and
telephone and preauthorized transfer accounts)
Nontransaction accounts
114
Money market deposit accounts
115
Other savings deposits
116
Time certificates of deposit of $100,000 or more
117
All other time deposits
118 Number of banks
1. Effective March 31, 1984, the report of condition for commercial banks was
substantially revised. 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 March 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 of more than $1
billion report additional items. (3) The domestic offices of banks with foreign
offices report far less detail. (4) Banks with assets of less than $25 million are
excused from reporting certain detail items.
The notation " n . a . " indicates the lesser detail available from banks that don't
have foreign offices, the inapplicability of certain items to banks that have only
domestic offices or the absence of detail on a fully consolidated basis for banks
that have foreign offices.
All transactions between domestic and foreign offices of a bank are reported in
" n e t due f r o m " and " n e t due t o " lines. All other lines represent transactions with
parties other than the domestic and foreign offices of each bank. Because 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.
2. Foreign offices include branches in foreign countries, Puerto Rico, and U.S.
territories and possessions; subsidiaries in foreign countries; all offices of Edge
Act and agreement corporations wherever located; and IBFs.
3. " O v e r 100" refers to banks whose assets, on June 30 of the preceding
calendar year, were $100 million or more. (These banks file the F F I E C 032 or
Nonmembers
Total
Total
National
State
271,823
40,817
34,811
34,950
125,323
10,226
2,379
40,725
142,211
225,033
30,550
21,614
31,868
93,892
9,577
1,729
30,365
119,726
161,699
25,844
16,906
20,477
69,128
7,069
1,547
26,733
86,0%
63,335
4,707
4,708
11,391
24,764
2,507
181
3,632
33,629
46,790
10,266
13,198
3,081
31,431
649
651
10,361
22,486
294,449
216,471
164,587
51,884
77,978
39,744
16,597
6,361
1,138
1,463
1,790
97
2,548
9,035
38,587
16,409
6,199
1,095
1,440
1,655
97
2,439
9,032
25,270
11,494
4,325
569
852
1,166
97
1,636
4,945
13,317
4,915
1,874
526
588
489
0
803
4,087
1,158
188
161
42
23
135
0
109
3
144,710
38,924
29,922
4,929
105,215
26,327
20,008
3,205
84,869
21,059
16,518
2,945
20,346
5,269
3,491
259
39,495
12,5%
9,914
1,725
24,993
16,804
13,572
3,231
8,189
455,812
312,085
585,937
181,236
16,311
307,996
1,864,045
346,852
221,256
390,819
117,409
12,838
218,869
1,310,384
273,861
163,153
318,133
%,846
6,%7
177,393
1,038,297
72,991
58,103
72,686
20,563
5,872
41,476
272,087
108,959
90,828
195,118
63,827
3,473
89,127
553,661
1,850,111
1,356,769
1,082,035
274,735
493,341
301,364
212,886
171,728
41,158
88,478
461,563
307,890
186,105
614,719
351,412
218,125
123,057
414,994
276,698
160,278
101,638
333,439
74,714
57,847
21,420
81,554
110,151
89,766
63,047
199,726
10,922
4,281
3,315
966
6,641
FFIEC 033 Call Report.) " U n d e r 100" refers to banks whose assets, on June 30
of the preceding calendar year, were less than $100 million. (These banks file the
FFIEC 034 Call Report.)
4. Because the domestic portion of allowances for loan and lease losses and
allocated transfer risk reserves are not reported for banks with foreign offices, the
components of total assets (domestic) do not sum to the actual total (domestic).
5. Because 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) do not sum to the actual total (foreign).
6. The definition of "all o t h e r " varies by report form and therefore by column
in this table.
7. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
8. Only the domestic portion of federal funds sold and securities purchased
under agreements to resell are reported here; therefore, the components do not
sum to totals.
9. Acceptances of other banks is not reported by domestic banks having less
than $300 million in total assets; therefore the components do not sum to totals.
10. Only the domestic portion of federal fUnds purchased and securities sold
under agreements to repurchase are reported here; therefore the components do
not sum to totals.
11. Components are reported only for banks with total assets of $1 billion or
more; therefore, components do not sum to totals.
A74
Special Tables • May 1994
4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 7-11, 19941
Commercial and Industrial Loans
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity 2
Days
Loan rate (percent)
Loans
secured
by
collateral
(percent)
Loans
made
under
commitment
(percent)
7.9
54.8
4.13
3.99
4.52
16.7
13.3
26.5
71.2
68.5
79.1
10.1
11.2
7.0
5.20
4.58
5.58
40.7
32.8
45.4
80.2
75.7
82.9
3.2
4.1
2.7
5.22
4.08
5.67
61.3
23.3
76.3
62.4
73.8
57.9
4.1
6.0
3.3
4.66
34.9
66.4
4.03
7.%
6.01
5.15
4.42
4.09
3.75
15.5
87.0
73.0
56.8
26.4
16.3
8.6
64.9
45.1
53.4
78.6
76.8
66.3
62.3
6.4
.7
4.6
7.8
8.6
8.6
5.5
5.49
7.49
6.92
6.42
5.91
5.23
4.35
60.3
83.9
78.3
72.9
62.4
48.2
49.5
68.3
84.7
89.2
88.0
84.2
70.7
47.7
3.6
1.6
3.5
7.3
7.9
4.2
1.6
Weighted
average
effective 3
Standard
Participation
loans
(percent)
ALL BANKS
1 Overnight 6
9,723,522
2 One month or less (excluding
overnight)
3
Fixed rate
4
Floating rate
9,712,303
7,193,796
2,518,507
1,301
1,977
659
5 More than one month and less than
one year
6
Fixed rate
7
Floating rate
8,860,720
3,306,361
5,554,359
177
163
186
8 Demand 7
9
Fixed rate
10
Floating rate
14,664,521
4,155,700
10,508,821
296
803
237
11 Total short-term
42,961,066
394
12 Fixed rate (thousands of dollars) . .
13
1-99
14
100-499
15
500-999
16
1,000-4,999
17
5,000-9,999
18
10,000 or more
24,379,379
383,527
409,646
406,331
3,567,810
3,801,297
15,810,767
788
15
218
687
2,365
6,521
20,676
28
140
118
57
32
19 Floating rate (thousands of dollars)
20
1-99
21
100-499
22
500-999
23
1,000-4,999
24
5,000-9,999
25
10,000 or more
18,581,687
1,491,128
2,780,629
1,215,746
3,368,769
1,735,765
7,989,649
238
25
199
127
3.86
666
2,010
6,714
25,484
157
127
175
26
23
160
159
171
136
102
111
.26
Months
26 Total long-term
4,605,265
197
5.85
57.1
81.4
7.8
27 Fixed rate (thousands of dollars) . .
28
1-99
29
100-499
30
500-999
31
1,000 or more
1,093,082
177,348
119,421
84,362
711,951
101
18
206
705
4,628
5.41
7.35
6.88
6.14
4.60
59.0
93.9
87.5
46.8
47.0
67.7
24.7
45.4
44.7
84.8
1.8
.1
1.9
4.9
1.9
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1,000 or more
3,512,183
243,334
608,197
429,622
2,231,029
278
28
222
681
4,007
5.98
7.64
7.15
6.59
5.37
56.5
87.4
78.9
57.6
46.7
85.7
55.9
77.0
85.3
91.4
9.7
4.8
9.4
13.6
9.5
Loan rate (percent)
Days
Effective 3
Nominal 8
LOANS MADE BELOW PRIME10
37 Overnight 6
38 One month or less (excluding
overnight)
39 More than one month and less than
one vear
40 Demand 7
9,389,738
8,662
3.77
3.75
5.9
53.9
4.0
9,193,051
4,0%
20
3.97
3.95
13.7
70.4
10.0
5,496,596
8,676,195
692
3,129
144
4.09
4.00
4.07
3.%
22.4
50.2
84.0
44.7
3.2
3.4
41 Total short-term
32,755,579
2,333
3.94
3.92
22.6
42 Fixed rate
43 Floating rate
23,205,600
9,549,979
3,156
1,428
3.88
4.09
3.86
4.05
12.5
47.3
65.0
51.7
6.5
2.6
4.35
4.30
31.3
89.8
5.1
4.27
4.39
4.23
4.33
39.8
27.2
85.8
91.8
2.7
6.4
26
103
Months
44 Total long-term
2,023,276
700
45 Fixed rate
46 Floating rate . .
668,527
1,354,749
398
1,122
Footnotes appear at the end of the table.
37
Financial Markets
4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 7-11, 1994—Continued
Commercial and industrial loans—Continued
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity 2
Days
Loan rate (percent)
Weighted
average
effective 3
Standard
error 4
Loans
secured
hv
•y
collateral
(percent)
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
LARGE BANKS
1 Overnight 6
7,351,768
6,875
*
3.91
.21
8.9
56.0
3.8
2 One month or less (excluding
overnight)
3
Fixed rate
4
Floating rate
6,004,688
4,635,075
1,369,612
3,862
5,209
2,060
19
18
22
4.13
4.02
4.51
.15
.15
.24
20.2
15.6
35.7
84.9
83.0
91.3
14.9
16.6
9.2
5 More than one month and less than
one year
6
Fixed rate
7
Floating rate
4,860,269
2,106,497
2,753,772
917
2,646
611
147
127
163
4.78
4.08
5.32
.14
.20
.17
34.5
26.1
40.9
87.9
90.6
85.9
4.9
5.7
4.4
8 Demand 7
9
Fixed rate
10
Floating rate
9,868,749
2,835,429
7,033,320
562
2,792
425
*
*
*
4.96
4.05
5.33
.16
.28
.14
62.9
21.2
79.7
54.0
76.8
44.8
3.3
6.8
1.9
11 Total short-term
28,085,473
1,102
46
4.48
.13
34.7
67.0
6.2
12 Fixed rate (thousands of dollars) . . .
13
1-99
14
100-499
15
500-999
16
1,000-4,999
17
5,000-9,999
18
10,000 or more
16,928,769
24,791
136,284
271,656
2,499,143
2,764,191
11,232,703
4,490
31
252
695
2,410
6,602
19,246
25
87
48
36
30
22
25
3.98
6.54
5.34
5.14
4.51
4.12
3.78
.17
.22
.21
.11
.09
.07
.04
14.9
73.8
56.8
56.8
30.6
14.4
9.9
71.2
68.2
78.3
83.4
81.5
65.4
69.9
8.0
1.5
6.2
10.1
9.6
9.1
7.4
19 Floating rate (thousands of dollars).
20
1-99
21
100-499
22
500-999
23
1,000-4,999
24
5,000-9,999
25
10,000 or more
11,156,705
451,282
1,144,661
589,462
1,808,557
1,324,233
5,838,509
514
33
202
655
1,991
6,783
25,868
116
145
155
160
118
104
108
5.23
7.17
6.78
6.37
5.74
5.18
4.51
.15
.06
.05
.08
.20
.32
.34
64.7
85.1
76.3
70.1
54.2
48.4
67.3
60.6
92.9
93.4
90.0
83.3
69.4
39.7
3.4
1.6
3.7
8.0
8.7
2.3
1.6
Months
2,706,300
738
36
5.41
.16
49.8
92.8
7.5
27 Fixed rate (thousands of dollars) . .
28
1-99
29
100-499
30
500-999
31
1,000 or more
523,464
5,435
27,190
31,899
458,939
1,133
27
230
666
4,979
39
44
39
42
39
4.71
7.54
5.83
5.16
4.58
.30
.22
.37
.49
.19
59.9
74.7
71.1
49.8
59.8
88.2
59.1
86.7
91.6
88.4
2.1
.0
4.6
2.9
2.0
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1,000 or more
2,182,836
47,942
243,739
204,858
1,686,297
681
34
226
644
4,459
36
30
33
31
37
5.58
6.80
6.77
6.45
5.27
.15
.13
.09
.07
.39
47.4
84.8
74.3
66.8
40.0
94.0
90.8
87.9
89.6
95.4
8.8
3.3
8.5
8.3
9.0
26 Total long-term
Loan rate (percent)
Days
Effective 3
Nominal 8
LOANS MADE BELOW PRIME1"
7,075,889
8,794
*
3.82
3.79
7.0
54.6
4.0
5,755,804
5,528
19
4.03
4.02
17.6
84.6
15.3
3,442,019
6,673,181
3,551
5,415
137
*
3.99
4.00
3.97
3.96
23.9
58.8
89.5
38.6
4.7
3.2
41 Total short-term
22,946,893
5,669
36
3.95
3.93
27.3
62.7
6.7
42 Fixed rate
43 Floating rate
16,346,979
6,599,914
6,049
4,907
25
93
3.90
4.08
3.88
4.03
13.1
62.4
70.7
42.9
8.1
3.4
37 Overnight 6
38 One month or less (excluding
overnight)
39 More than one month and less than
one vear
40 Demand 7
Months
44 Total long-term
1,424,879
3,128
36
4.19
4.13
27.7
97.1
5.1
45 Fixed rate
46 Floating rate . .
393,333
1,031,546
2,484
3,471
36
36
4.12
4.22
4.10
4.15
50.0
19.2
91.3
99.3
2.3
6.2
Footnotes appear at the end of the table.
A75
A74
Special Tables • May 1994
4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 7-11, 19941—Continued
Commercial and industrial loans—Continued
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity 2
Days
Loan rate (percent)
Loans
secured
by
collateral
(percent)
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
4.9
51.0
3.9
4.12
3.93
4.54
11.2
9.2
15.4
49.1
42.2
64.6
2.4
1.6
4.4
5.72
5.45
5.83
48.3
44.5
49.9
70.9
49.4
80.0
1.2
1.5
1.0
5.75
4.13
6.37
58.0
27.9
69.4
79.9
67.4
84.6
6.1
Weighted
average
effective 3
Standard
OTHER BANKS
1 Overnight 6
2,959
2 One month or less (excluding
overnight)
3
Fixed rate
4
Floating rate
3,707,616
2,558,721
1,148,894
628
931
364
5 More than one month and less than
one year
Fixed rate
Floating rate
4,000,450
1,199,864
2,800,586
89
62
110
8 Demand 7
9
Fixed rate
10
Floating rate
4,795,772
1,320,271
3,475,501
150
317
125
11 Total short-term
6
7
169
127
188
5.6
4.2
14,875,593
178
5.01
35.2
65.2
3.3
12 Fixed rate (thousands of dollars)
13
1-99
14
100-499
15
500-999
16
1,000-4,999
17
5,000-9,999
18
10,000 or more
7,450,611
358,736
273,362
134,675
1,068,668
1,037,106
4,578,064
274
14
204
670
2,267
6,316
25,289
36
142
146
99
36
37
19
4.14
8.06
6.34
5.17
4.20
3.99
3.68
16.9
87.9
81.1
56.8
16.7
21.3
5.3
50.6
43.5
41.1
69.0
65.9
68.5
43.6
2.7
.6
3.9
3.2
6.3
7.4
19 Floating rate (thousands of d o l l a r s ) . . .
20
1-99
21
100-499
22
500-999
23
1,000-4,999
24
5,000-9,999
25
10,000 or more
7,424,982
1,039,846
1,635,968
626,284
1,560,212
411,532
2,151,140
132
23
198
676
2,032
6,504
24,497
138
162
161
179
160
96
114
5.88
7.63
7.02
6.47
6.10
5.40
3.93
53.7
83.4
79.7
75.6
71.9
47.7
1.1
79.8
81.1
86.3
86.2
85.2
74.6
69.4
3.9
1.6
3.4
6.6
6.9
10.0
1.3
1.0
Months
26 Total long-term
27 Fixed rate (thousands of dollars)
28
1-99
29
100-499
30
500-999
31
1,000 or more
32 Floating rate (thousands of d o l l a r s ) . . .
33
1-99
34
100-499
35
500-999
36
1,000 or more
1,898,966
96
6.47
67.5
65.2
569,618
171,912
92,231
52,463
253,012
55
18
201
731
4,103
6.06
7.35
7.19
6.74
4.63
58.3
94.5
92.3
45.0
23.9
48.7
23.6
33.2
16.2
78.2
.1
1.1
6.2
1.8
1,329,347
195,392
364,458
224,765
544,733
141
27
219
719
3,051
6.64
7.84
7.40
6.72
5.68
71.4
88.0
82.0
49.2
67.5
72.2
47.3
69.8
81.4
79.0
11.1
5.2
9.9
18.4
10.9
1.6
Loan rate (percent)
Days
Effective 3
Nominal 8
LOANS MADE BELOW PRIME1"
37 Overnight 6
38 One month or less (excluding
overnight)
39 More than one month and less than
one vear
40 Demand 7
2,313,848
8,282
3.64
3.61
2.6
51.8
4.0
3,437,247
2,857
23
3.88
3.83
7.2
46.6
1.2
2,054,577
2,003,014
295
1,301
157
4.25
3.98
4.22
3.97
19.8
21.7
74.9
64.9
.7
4.1
41 Total short-term
9,808,686
982
52
3.92
3.89
11.7
57.5
2.3
42 Fixed rate
43 Floating rate
6,858,621
2,950,065
1,475
552
27
115
3.83
4.12
3.80
4.10
11.0
13.4
51.5
71.3
2.9
4.70
40.1
72.5
5.2
4.43
4.93
25.2
52.8
77.8
67.9
3.3
6.9
1.0
Months
44 Total long-term
598,397
246
45 Fixed rate
46 Floating rate . .
275,194
323,202
181
355
Footnotes appear at the end of the table.
4.48
4.96
Financial Markets
All
4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 7-11, 1994—Continued
NOTES
1. The survey of terms of bank lending to business collects data on gross loan
extensions made during the first full business week in the mid-month of each
quarter by a sample of 340 commercial banks of all sizes. A sample of 250 banks
reports loans to farmers. The sample data are blown up to estimate the lending
terms at all insured commercial banks during that week. The estimated terms of
bank lending are not intended for use in collecting the terms of loans extended
over the entire quarter or residing in the portfolios of those banks. Construction
and land development loans include both unsecure loans and loans secured by real
estate. Thus, some of the construction and land development loans would be
reported on the statement of condition as real estate loans and the remainder as
business loans. Mortgage loans, purchased loans, foreign loans, and loans of less
that $1,000 are excluded from the survey. As of September 30, assets of most of
the large banks were at least $7.0 billion. For all insured banks, total assets
averaged $275 million.
2. Average maturities are weighted by loan size; excludes demand loans.
3. Effective (compounded) annual interest rate calculated from the stated rate
and other terms of the loans and weighted by loan size.
4. The chances are about two out of three that the average rate shown would
differ by less than the amount of the standard error from the average rate that
would be found by a complete survey of lending at all banks.
5. The rate used to price the largest dollar volume of loans. Base pricing rates
include the prime rate (sometimes referred to as a bank's " b a s i c " or " r e f e r e n c e "
rate); the federal funds rate; domestic money market rates other than the federal
funds rate; foreign money market rates; and other base rates not included in the
foregoing classifications.
6. Overnight loans mature on the following business day.
7. Demand loans have no stated date of maturity.
8. Nominal (not compounded) annual interest rate calculated from the stated
rate and other terms of the loans and weighted by loan size.
9. Calculated by weighting the prime rate reported by each bank by the volume
of loans reported by that bank, summing the results, and then averaging over all
reporting banks.
10. The proportion of loans made at rates below the prime may vary substantially from the proportion of such loans outstanding in banks' portfolios.
A80
Special Tables • May 1994
4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 19931—Continued
Millions of dollars, except as noted
All states 2
Item
1 Total assets 4
Total
including
IBFs 3
New York
IBFs
only 3
Total
including
IBFs
Illinois
California
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
695,677
312,276
533,634
247,705
72,199
35,244
53,136
21,578
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted
debits
5
Currency and coin (U.S. and foreign)
6
Balances with depository institutions in United States . .
7
U.S. branches and agencies of other foreign banks
(including IBFs)
8
Other depository institutions in United States
(including IBFs)
9
Balances with banks in foreign countries and with
foreign central banks
10
Foreign branches of U.S. banks
Other banks in foreign countries and foreign central
11
banks
12
Balances with Federal Reserve Banks
614,784
136,932
178,670
111,525
466,022
117,757
145,832
94,080
66,495
7,334
15,658
6,741
52,990
10,384
12,286
9,889
2,494
23
86,898
0
n.a.
66,158
2,374
16
74,119
0
n.a.
54,565
17
2
5,071
0
n.a.
4,527
87
1
6,999
0
n.a.
6,773
82,313
64,153
70,244
52,677
4,750
4,431
6,813
6,763
4,585
2,005
3,876
1,889
322
97
187
10
46,671
893
45,367
761
40,493
709
39,514
578
2,222
77
2,214
77
3,288
78
3,116
78
45,778
845
44,606
n.a.
39,783
755
38,936
n.a.
2,145
22
2,137
n.a.
3,210
7
3,038
n.a.
13 Total securities and loans
382,819
57,420
265,614
43,272
54,275
8,262
36,669
1,994
94,168
35,413
14,153
n.a.
86,901
34,818
13,000
n.a.
3,861
171
703
n.a.
2,871
353
434
n.a.
21,402
n.a.
20,6%
n.a.
37,353
14,153
31,388
13,000
3,214
703
2,394
434
49,529
11,528
7,716
30,285
4,545
3,863
82
601
46,566
9,394
7,178
29,994
4,058
3,458
22
579
676
501
102
73
170
170
0
0
1,662
1,312
176
174
200
200
0
0
288,765
114
288,651
43,273
6
43,268
178,788
76
178,713
30,276
4
30,272
50,433
19
50,414
7,559
0
7,558
33,807
10
33,797
1,560
0
1,560
44,774
43,700
19,828
17,145
2,683
351
28,636
9,984
9,677
307
24,109
30,634
12,967
11,164
1,803
135
19,504
6,090
5,902
188
13,847
7,448
4,810
4,561
249
177
5,770
3,264
3,170
94
4,127
2,318
1,791
1,243
549
38
1,059
587
587
0
144
23,728
646
23,083
21,810
0
18,652
614
18,039
751
134
17,534
593
16,941
18,655
0
13,414
564
12,851
631
0
2,639
50
2,589
1,204
0
2,506
50
2,456
15
10
517
0
517
1,360
0
472
0
472
34
158,521
140,481
18,040
1,126
450
676
10,272
186
10,087
40
5
35
89,272
76,679
12,592
847
414
433
7,210
159
7,051
33
5
28
27,343
25,000
2,343
54
5
49
1,521
12
1,510
0
0
0
23,911
23,201
710
30
2
28
373
0
373
0
0
0
4,495
2,975
3,352
2,552
158
77
252
57
9,617
4,722
43
205
9,218
2,702
43
168
207
171
0
0
119
1,690
0
0
45,504
14,620
10,800
3,820
5,179
n.a.
n.a.
n.a.
36,085
10,676
7,460
3,216
4,422
n.a.
n.a.
n.a.
4,210
2,675
2,410
265
485
n.a.
n.a.
n.a.
4,276
730
648
83
202
n.a.
n.a.
n.a.
30,884
80,893
5,179
133,606
25,409
67,613
4,422
101,874
1,535
5,703
485
19,586
3,545
146
202
9,293
80,893
n.a.
67,613
n.a.
5,703
n.a.
n.a.
133,606
n.a.
101,874
n.a.
19,586
n.a.
9,293
52 Total liabilities 4
695,677
312,276
533,634
247,705
72,199
35,244
53,136
21,578
53 Liabilities to nonrelated parties
583,541
288,703
478,360
230,535
56,365
34,639
31,570
17,635
14 Total securities, book value
15
U.S. Treasury
Obligations of U.S. government agencies and
16
corporations
17
Other bonds, notes, debentures, and corporate stock
(including state and local securities)
18 Federal funds sold and securities purchased under
agreements to resell
19
U.S. branches and agencies of other foreign banks
70
Commercial banks in United States
Other
21
22 Total loans, gross
LESS: Unearned income on loans
24 EQUALS: Loans, net
73
Total loans, gross, by category
7,5 Real estate loans
76 Loans to depository institutions
Commercial banks in United States (including IBFs)
27
28
U.S. branches and agencies of other foreign banks . . .
29
Other commercial banks in United States
30
Other depository institutions in United States (including
IBFs)
31
Banks in foreign countries
37.
Foreign branches of U.S. banks
33
Other banks in foreign countries
34 Loans to other financial institutions
35 Commercial and industrial loans
36
U.S. addressees (domicile)
37
Non-U.S. addressees (domicile)
38 Acceptances of other banks
39
U.S. banks
Foreign banks
40
41 Loans to foreign governments and official institutions
(including foreign central banks)
42 Loans for purchasing or carrying securities (secured and
unsecured)
43 All other loans
44 All other assets
Customers' liabilities on acceptances outstanding
45
46
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
47
48
Other assets including other claims on nonrelated
parties
49 Net due from related depository institutions
50
Net due from head office and other related depository
institutions 5
Net due from establishing entity, head offices, and other
51
related depository institutions 5
476
124
n.a.
146
n.a.
n.a.
U.S. Branches and Agencies
A79
4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1993'—Continued
Millions of dollars, except as noted
All states 2
Total
excluding
IBFs3
54 Total deposits and credit balances
55
Individuals, partnerships, and corporations
56
U.S. addressees (domicile)
57
Non-U.S. addressees (domicile)
58
Commercial banks in United States (including IBFs).
59
U.S. branches and agencies of other foreign banks
60
Other commercial banks in United States
61
Banks in foreign countries
62
Foreign branches of U.S. banks
63
Other banks in foreign countries
64
Foreign governments and official institutions
(including foreign central banks)
65
All other deposits and credit balances
66
Certified and official checks
67 Transaction accounts and credit balances
(excluding IBFs)
68
Individuals, partnerships, and corporations
69
U.S. addressees (domicile)
70
Non-U.S. addressees (domicile)
71
Commercial banks in United States (including IBFs).
72
U.S. branches and agencies of other foreign banks
73
Other commercial banks in United States
74
Banks in foreign countries
75
Foreign branches of U.S. banks
76
Other banks in foreign countries
77
Foreign governments and official institutions
(including foreign central banks)
78
All other deposits and credit balances
79
Certified and official checks
80 Demand deposits (included in transaction accounts
and credit balances)
81
Individuals, partnerships, and corporations
82
U.S. addressees (domicile)
83
Non-U.S. addressees (domicile)
84
Commercial banks in United States (including IBFs).
85
U.S. branches and agencies of other foreign banks
86
Other commercial banks in United States
87
Banks in foreign countries
88
Foreign branches of U.S. banks
89
Other banks in foreign countries
90
Foreign governments and official institutions
(including foreign central banks)
91
All other deposits and credit balances
92
Certified and official checks
93 Nontransaction accounts (including MMDAs,
excluding IBFs)
94
Individuals, partnerships, and corporations
95
U.S. addressees (domicile)
96
Non-U.S. addressees (domicile)
97
Commercial banks in United States (including IBFs).
98
U.S. branches and agencies of other foreign banks
99
Other commercial banks in United States
100
Banks in foreign countries
101
Foreign branches of U.S. banks
102
Other banks in foreign countries
103
Foreign governments and official institutions
(including foreign central banks)
104
All other deposits and credit balances
105 IBF deposit liabilities
106
Individuals, partnerships, and corporations
107
U.S. addressees (domicile)
108
Non-U.S. addressees (domicile)
109
Commercial banks in United States (including IBFs).
110
U.S. branches and agencies of other foreign banks
111
Other commercial banks in United States
112
Banks in foreign countries
113
Foreign branches of U.S. banks
114
Other banks in foreign countries
115
Foreign governments and official institutions
(including foreign central banks)
116
All other deposits and credit balances
Footnotes appear at end of table.
IBFs
only 3
New York
Illinois
California
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
148,907
104,426
90,973
13,453
27,601
14,853
12,748
7,694
3,650
4,044
216,961
12,165
181
11,984
64,170
57,506
6,664
122,212
3,925
118,287
131,536
89,316
81,631
7,685
26,179
14,063
12,115
7,436
3,650
3,787
196,230
7,827
181
7,647
59,645
53,557
6,089
111,597
3,726
107,871
4,570
4,229
2,601
1,627
68
61
7
46
0
46
6,437
441
0
441
2,171
1,971
200
2,991
36
2,955
3,675
3,236
2,248
987
372
226
146
1
0
1
3,256
5,564
365
18,214
200
2,952
5,357
296
17,040
120
182
20
26
835
0
2
55
9
318
230
180
50
2
1
1
37
0
37
314
300
295
5
0
0
0
1
0
1
1,066
6,682
4,918
3,721
1,196
93
7
87
895
1
894
387
168
365
339
141
296
7,730
5,739
4,173
1,566
1,032
1
1,031
6,487
4,785
3,671
1,114
93
7
87
863
1
862
260
189
152
37
1
1
0
36
0
36
299
286
281
5
0
0
0
1
0
1
356
138
365
321
129
296
4
4
26
2
1
9
140,651
98,255
86,646
11,609
27,502
14,844
12,659
6,627
3,649
2,979
124,854
84,398
77,910
6,488
26,085
14,057
12,029
6,541
3,649
2,893
4,253
3,999
2,422
1,577
67
6
9
0
9
3,361
2,936
1,953
983
372
226
145
0
0
0
2,870
5,397
2,613
5,216
178
0
0
54
8,256
6,171
4,327
1,843
99
9
90
1,067
1
60
216,961
12,165
181
11,984
64,170
57,506
6,664
122,212
3,925
118,287
196,230
7,827
181
7,647
59,645
53,557
6,089
111,597
3,726
107,871
6,437
441
0
441
2,171
1,971
200
2,991
36
2,955
18,214
200
17,040
120
835
0
A80
Special Tables • May 1994
4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 19931—Continued
Millions of dollars, except as noted
All s t a t e s 2
Item
Total
including
IBFs3
N e w York
IBFs
only3
Total
including
IBFs
California
Illinois
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
117 F e d e r a l f u n d s p u r c h a s e d and securities sold under
118
119
120
121
122
123
124
125
126
127
128
agreements to repurchase
U . S . b r a n c h e s a n d agencies of o t h e r foreign b a n k s
—
O t h e r c o m m e r c i a l b a n k s in United States
Other
Other borrowed money
O w e d to nonrelated c o m m e r c i a l b a n k s in United States
(including I B F s )
O w e d t o U . S . offices of nonrelated U . S . banks
O w e d t o U . S . b r a n c h e s and agencies of
nonrelated foreign b a n k s
O w e d t o nonrelated b a n k s in foreign countries
O w e d t o foreign b r a n c h e s of nonrelated U . S . b a n k s . . .
O w e d t o foreign offices of nonrelated foreign b a n k s
Owed to others
129 All o t h e r liabilities
130
B r a n c h o r agency liability on a c c e p t a n c e s executed
and o u t s t a n d i n g
131
O t h e r liabilities to nonrelated parties
5
132 N e t d u e to related d e p o s i t o r y institutions
133
N e t o w e d t o h e a d office and o t h e r related depository
134
institutions
N e t o w e d to establishing entity, head office, and o t h e r
related d e p o s i t o r y institutions
60,741
11,440
8,122
41,180
115,557
9,240
2,275
507
6,459
57,741
52,469
8,367
5,478
38,624
65,470
6,555
1,234
291
5,030
23,647
4,842
1,823
1,817
1,202
36,827
1,369
520
191
659
26,358
3,066
1,113
782
1,172
11,386
1,219
495
25
699
7,034
40,745
11,465
21,576
2,711
16,583
6,375
5,092
633
18,636
3,754
13,342
1,649
4,145
999
2,715
407
29,280
36,341
944
35,398
38,471
18,866
33,926
904
33,022
2,238
10,208
19,087
444
18,642
29,800
4,459
16,846
428
16,418
1,708
14,881
12,841
368
12,473
5,351
11,693
12,725
363
12,362
291
3,146
4,080
102
3,978
3,161
2,308
4,1 80
102
3,978
239
41,375
4,761
32,654
4,103
3,687
475
4,214
152
15,544
25,831
n.a.
4,761
11,570
21,085
n.a.
4,103
2,648
1,040
n. a.
475
748
3,466
n.a.
152
21,566
3,943
112,136
23,573
55,275
17,170
15,834
112,136
n.a.
55,275
n.a.
15,834
n.a.
23,573
n.a.
17,170
n.a.
605
n.a.
605
21,566
n.a.
n.a.
3,943
MEMO
135 Non-interest-bearing b a l a n c e s with commercial b a n k s
136
137
138
139
140
141
142
143
in United States
Holding of c o m m e r c i a l p a p e r included in total loans
Holding of o w n a c c e p t a n c e s included in commercial
and industrial loans
C o m m e r c i a l and industrial loans with remaining maturity
of o n e y e a r o r less
P r e d e t e r m i n e d interest r a t e s
Floating interest r a t e s
C o m m e r c i a l and industrial loans with remaining maturity
of m o r e than o n e y e a r
P r e d e t e r m i n e d interest r a t e s
Floating interest rates
1,178
0
869
0
1,252
1,280
125
0
61
2,626
1,981
451
36
96,593
60,418
36,175
53,462
32,849
20,613
15,987
9,767
6,220
15,480
11,197
4,283
61,928
20,968
40,960
n.a.
35,810
12,250
23,560
n. a.
11,356
4,204
7,152
0
5
11
n.a.
8,431
3,386
5,045
n.a.
U.S. Branches and Agencies
A81
4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1993'—Continued
Millions of dollars, except as noted
All states 2
Item
144 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransaction accounts, including IBFs
145
Time CDs in denominations of $100,000 or more
146
Other time deposits in denominations of $100,000
or more
147
Time CDs in denominations of $100,000 or more
with remaining maturity of more than 12 months . .
Total
excluding
IBFs3
IBFs
only 3
t
145,877
109,109
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
130,440
98,182
t
5,162
3,098
t
3,567
1,825
t
1,295
n.a.
<
n.a.
23,088
\
9,169
Total
including
IBFs
n.a.
776
1
Total
including
IBFs
n.a.
*
Illinois
California
IBFs
only
Total
including
IBFs
IBFs
only
448
1,287
New York
IBFs
only
IBFs
only
Total
including
IBFs
IBFs
only
94,511
14,6%
87,267
13,508
3,905
722
2,802
450
74,233
555
n.a.
37,197
261
n.a.
28,367
127
n.a.
0
7,325
50
n.a.
0
1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
B a n k s . " The form was first used for reporting data as of June 30, 1980, and was
revised as of December 31, 1985. From November 1972 through May 1980, U.S.
branches and agencies of foreign banks had filed a monthly FR 886a report.
Aggregate data from that report were available through the Federal Reserve
statistical release G . l l , last issued on July 10, 1980. Data in this table and in the
G. 11 tables are not strictly comparable because of differences in reporting panels
and in definitions of balance sheet items. IBF, international banking facility.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations
D and Q to permit banking offices located in the United States to operate
international banking facilities (IBFs). Since December 31, 1985, data for IBFs
have been reported in a separate column. These data are either included in or
excluded from the total columns as indicated in the headings. The notation " n . a . "
indicates that no IBF data have been reported for that item, either because the
IBFs
only
10,9%
2
Illinois
California
Total
excluding
IBFs
25,771
All states
148 Market value of securities held
149 Immediately available funds with a maturity greater than
one day included in other borrowed money
150 Number of reports filed5
New York
0
0
item is not an eligible IBF asset or liability or because that level of detail is not
reported for IBFs. From December 1981 through September 1985, IBF data were
included in all applicable items reported.
4. Total assets and total liabilities include net balances, if any, due from or
owed to related banking institutions in the United States and in foreign countries
(see note 5). On the former monthly branch and agency report, available through
the G . l l statistical release, gross balances were included in total assets and total
liabilities. Therefore, total asset and total liability figures in this table are not
comparable to those in the G . l l tables.
5. Related depository institutions includes the foreign head office and other
U.S. and foreign branches and agencies of a bank, a bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
A82
Index to Statistical Tables
References are to pages A3-A81 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 21, 22
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-22
Domestic finance companies, 36
Federal Reserve Banks, 11
Financial institutions, 28
Foreign banks, U.S. branches and agencies, 23, 78-81
Automobiles
Consumer installment credit, 39
Production, 47, 48
BANKERS acceptances, 10, 22, 26
Bankers balances, 18-22, 78-81. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 35
Rates, 26
Branch banks, 23
Business activity, nonfinancial, 45
Business expenditures on new plant and equipment, 35
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18, 69, 71, 73
Federal Reserve Banks, 11
Central banks, discount rates, 65
Certificates of deposit, 26
Commercial and industrial loans
Commercial banks, 21, 68, 70, 72
Weekly reporting banks, 21-23
Commercial banks
Assets and liabilities, 18-22, 74-77
Commercial and industrial loans, 18-23
Consumer loans held, by type and terms, 39, 68, 70, 72
Deposit interest rates of insured, 16
Loans sold outright, 21
Nondeposit funds, 78-81
Number by classes, 69, 71, 73
Real estate mortgages held, by holder and property, 38
Terms of lending, 74-77
Time and savings deposits, 4
Commercial paper, 24, 26, 36
Condition statements (See Assets and liabilities)
Construction, 45, 49
Consumer installment credit, 39
Consumer prices, 45, 46
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 35
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 39
Currency and coin, 68, 70, 72
Currency in circulation, 5, 14
Customer credit, stock market, 27
DEBITS to deposit accounts, 17
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-23
Ownership by individuals, partnerships, and
corporations, 23
Turnover, 17
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5, 6, 13, 69, 71, 73
Deposits (See also specific types)
Banks, by classes, 4, 18-22, 24
Federal Reserve Banks, 5, 11
Interest rates, 16
Turnover, 17
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 45
Eurodollars, 26
FARM mortgage loans, 38
Federal agency obligations, 5, 10, 11, 12, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 30
Receipts and outlays, 28, 29
Treasuryfinancingof surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 7, 19, 21, 22, 23, 26, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 37, 38
Federal Housing Administration, 33, 37, 38
Federal Land Banks, 38
Federal National Mortgage Association, 33, 37, 38
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 5, 11, 12, 30
Federal Reserve credit, 5, 6, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 36
Business credit, 36
Loans, 39
Paper, 24, 26
Financial institutions, loans to, 21, 22, 23
Float, 51
How of funds, 40, 42, 43, 44
Foreign banks, assets and liabilities of U.S. branches and
agencies, 22, 23, 78-81
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 11, 21, 22
Foreign exchange rates, 68
Foreign trade, 54
A83
Foreigners
Claims on, 55, 58, 59, 60, 62
Liabilities to, 22, 54, 55, 56, 61, 63, 64
GOLD
Certificate account, 11
Stock, 5, 54
Government National Mortgage Association, 33, 37, 38
Gross domestic product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 45, 51, 52
Industrial production, 45, 47
Installment loans, 39
Insurance companies, 30, 38
Interest rates
Bonds, 26
Commercial banks, 74-77
Consumer installment credit, 39
Deposits, 16
Federal Reserve Banks, 8
Foreign central banks and foreign countries, 67
Money and capital markets, 26
Mortgages, 37
Prime rate, 25
International capital transactions of United States, 53-65
International organizations, 55, 56, 58, 61, 62
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18-23
Commercial banks, 4, 18-23, 70
Federal Reserve Banks, 11,12
Financial institutions, 38
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18—23
Commercial banks, 4, 18-23, 68, 70, 72
Federal Reserve Banks, 5, 6, 8, 11, 12
Financial institutions, 38
Insured or guaranteed by United States, 37, 38
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 27
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 7
Reserve requirements, 9
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 4, 13
Money and capital market rates, 26
Money stock measures and components, 4, 14
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 10
PERSONAL income, 52
Prices
Consumer and producer, 45, 50
Stock market, 27
Prime rate, 25
Producer prices, 45, 50
Production, 45, 47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 21, 22, 38, 70
Terms, yields, and activity, 37
Type of holder and property mortgaged, 38
Repurchase agreements, 7, 21-23
Reserve requirements, 9
Reserves
Commercial banks, 18
Depository institutions, 4, 5, 6, 13
Federal Reserve Banks, 11
U.S. reserve assets, 54
Residential mortgage loans, 37
Retail credit and retail sales, 39, 40, 45
SAVING
Flow of funds, 40, 42, 43, 44
National income accounts, 51
Savings and loan associations, 38, 39, 40
Savings banks, 38, 39
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 63
New issues, 34
Prices, 27
Special drawing rights, 5, 11, 53, 54
State and local governments
Deposits, 21, 22
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 21, 22
Rates on securities, 26
Stock market, selected statistics, 27
Stocks (See also Securities)
New issues, 34
Prices, 27
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 4. (See also Credit unions and Savings and
loan associations)
Time and savings deposits, 4, 14, 16, 18-23, 69, 71, 73
Trade, foreign, 54
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 11, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18-23
Treasury deposits at Reserve Banks, 5, 11, 28
U.S. government securities
Bank holdings, 18-23, 30
Dealer transactions, positions, andfinancing,32
Federal Reserve Bank holdings, 5, 11, 12, 30
Foreign and international holdings and
transactions, 11, 30, 64
Open market transactions, 10
Outstanding, by type and holder, 28, 30
Rates, 25
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 37, 38
WEEKLY reporting banks, 22-24
Wholesale (producer) prices, 45, 50
YIELDS (See Interest rates)
A84
Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN,
Chairman
EDWARD W. KELLEY, JR.
JOHN P. LAWARE
OFFICE OF BOARD MEMBERS
DIVISION OF INTERNATIONAL
Assistant to the Board
D O N A L D J. W I N N , Assistant to the Board
THEODORE E . ALLISON, Assistant to the Board for Federal
Reserve System Affairs
L Y N N S . FOX, Special Assistant to the Board
WINTHROP P. HAMBLEY, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
D I A N E E . WERNEKE, Special Assistant to the Board
Staff Director
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate Director
D A L E W . HENDERSON, Associate Director
DAVID H . HOWARD, Senior Adviser
DONALD B . ADAMS, Assistant Director
PETER HOOPER III, Assistant Director
KAREN H . JOHNSON, Assistant Director
RALPH W . SMITH, JR., Assistant Director
JOSEPH R . COYNE,
LEGAL
FINANCE
EDWIN M . TRUMAN,
DIVISION
General Counsel
Associate General Counsel
RICHARD M . ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
KATHLEEN M . O ' D A Y , Associate General Counsel
J. VIRGIL MATTINGLY, JR.,
SCOTT G . ALVAREZ,
DIVISION OF RESEARCH AND STATISTICS
MICHAEL J. PRELL, Director
EDWARD C . ETTIN, Deputy Director
WILLIAM R . JONES, Associate Director
THOMAS D . SIMPSON, Associate Director
LAWRENCE SLIFMAN, Associate
OFFICE OF THE SECRETARY
WILLIAM W. WILES,
Secretary
JENNIFER J. JOHNSON, Associate
BARBARA R. LOWREY, Associate
Secretary
Secretary
DIVISION OF BANKING
SUPERVISION AND REGULATION
RICHARD SPILLENKOTHEN, Director
STEPHEN C . SCHEMERING, Deputy Director
D O N E . KLINE, Associate Director
WILLIAM A . RYBACK, Associate Director
FREDERICK M . STRUBLE, Associate Director
HERBERT A . BIERN, Deputy Associate Director
ROGER T. COLE, Deputy Associate Director
JAMES I. GARNER, Deputy Associate Director
HOWARD A . AMER, Assistant Director
GERALD A . EDWARDS, JR., Assistant Director
JAMES D . GOETZINGER, Assistant Director
STEPHEN M . HOFFMAN, JR., Assistant Director
LAURA M . HOMER, Assistant Director
JAMES V. HOUPT, Assistant Director
JACK P. JENNINGS, Assistant Director
MICHAEL G . MARTINSON, Assistant Director
RHOGER H PUGH, Assistant Director
SIDNEY M . SUSSAN, Assistant Director
MOLLY S . WASSOM, Assistant Director
WILLIAM SCHNEIDER, Project
National Information Center
Director,
Director
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
JOHN J. MINGO, Senior Adviser
LEVON H . GARABEDIAN, Assistant Director
(Administration )
DAVID J. STOCKTON,
DIVISION OF MONETARY AFFAIRS
DONALD L . KOHN, Director
DAVID E . LINDSEY, Deputy Director
BRIAN F. MADIGAN, Associate Director
RICHARD D . PORTER, Deputy Associate Director
NORMAND R. V. BERNARD, Special Assistant to the Board
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
GRIFFITH L. GARWOOD,
Director
Associate Director
DOLORES S . SMITH, Associate Director
MAUREEN P. ENGLISH, Assistant Director
IRENE SHAWN M C N U L T Y , Assistant Director
G L E N N E . LONEY,
A85
LAWRENCE B . LINDSEY
SUSAN M . PHILLIPS
OFFICE OF
STAFF DIRECTOR FOR
MANAGEMENT
Staff Director
Equal Employment Opportunity
Programs Officer
S . DAVID FROST,
PORTIA W . THOMPSON,
DIVISION OF HUMAN RESOURCES
MANAGEMENT
Director
Associate Director
A N T H O N Y V. DIGIOIA, Assistant Director
JOSEPH H . HAYES, JR., Assistant Director
FRED HOROWITZ, Assistant Director
DAVID L . S H A N N O N ,
JOHN R . WEIS,
OFFICE OF THE
CONTROLLER
Controller
Assistant Controller (Programs and
GEORGE E . LIVINGSTON,
STEPHEN J. CLARK,
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
DIVISION OF INFORMATION
MANAGEMENT
RESOURCES
Director
Deputy Director
STEPHEN R . MALPHRUS,
BRUCE M . BEARDSLEY,
MARIANNE M. EMERSON, Assistant
Po KYUNG
Director
Assistant Director
RAYMOND H . MASSEY, Assistant Director
EDWARD T. MULRENIN, Assistant Director
DAY W . RADEBAUGH, JR., Assistant Director
ELIZABETH B . RIGGS, Assistant Director
RICHARD C . STEVENS, Assistant Director
KIM,
DIVISION OF RESERVE BANK OPERATIONS
AND PAYMENT SYSTEMS
CLYDE H . FARNSWORTH, JR., Director
DAVID L . ROBINSON, Deputy Director (Finance and
Control)
CHARLES W . BENNETT, Assistant Director
JACK DENNIS, JR., Assistant Director
EARL G . HAMILTON, Assistant Director
JEFFREY C . MARQUARDT, Assistant Director
JOHN H. PARRISH, Assistant
Director
Assistant Director
YOUNG, Assistant Director
LOUISE L . ROSEMAN,
FLORENCE M .
OFFICE OF THE INSPECTOR
GENERAL
BRENT L. BOWEN, Inspector
General
DONALD L. ROBINSON, Assistant Inspector General
BARRY R. SNYDER, Assistant Inspector General
A86
Federal Reserve Bulletin • May 1994
Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET
COMMITTEE
MEMBERS
ALAN GREENSPAN,
Chairman
WILLIAM J. MCDONOUGH,
Vice Chairman
J. ALFRED BROADDUS, JR.
EDWARD W . KELLEY, JR.
SUSAN M . PHILLIPS
ROBERT P. FORRESTAL
JOHN R LAWARE
ROBERT T. PARRY
JERRY L. JORDAN
LAWRENCE B . LINDSEY
ALTERNATE MEMBERS
THOMAS M . HOENIG
THOMAS C . MELZER
JAMES H . OLTMAN
SILAS KEEHN
STAFF
DONALD L. KOHN, Secretary
NORMAND R . V . BERNARD,
and
JOHN M. DAVIS, Associate
Economist
MARVIN S. GOODFRIEND, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
DAVID J. STOCKTON, Associate
Economist
Economist
SHEILA L. TSCHINKEL, Associate
Economist
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
JOAN E. LOVETT,
Manager for Domestic Operations, System Open Market Account
Manager for Foreign Operations, System Open Market Account
PETER R . FISHER,
FEDERAL ADVISORY
COUNCIL
RICHARD M. ROSENBERG,
EUGENE A . MILLER,
N.
Seventh District
III, Eighth District
JOHN F. GRUNDHOFER, Ninth District
DAVID A . RISMILLER, Tenth District
CHARLES R . HRDLICKA, Eleventh District
RICHARD M . ROSENBERG, Twelfth District
First District
Second District
ANTHONY P. TERRACCIANO, Third District
FRANK V. CAHOUET, Fourth District
RICHARD G . TILGHMAN, Fifth District
CHARLES E. RICE, Sixth District
MARSHALL
EUGENE A . MILLER,
CARTER,
ANDREW
J. CARTER BACOT,
President
Vice President
HERBERT V. PROCHNOW,
CRAIG,
Secretary Emeritus
Co-Secretary
Co-Secretary
WILLIAM J. KORSVIK,
JAMES ANNABLE,
B.
A87
CONSUMER ADVISORY
COUNCIL
Chicago, Illinois, Chairman
Tijeras, New Mexico, Vice Chairman
JEAN POGGE,
JAMES L. WEST,
BARRY A. ABBOTT, San Francisco, California
JOHN R. ADAMS, Philadelphia, Pennsylvania
JOHN A. BAKER, Atlanta, Georgia
MULUGETTA BIRRU, Pittsburgh, Pennsylvania
DOUGLAS D . BLANKE, St. Paul, Minnesota
GENEVIEVE BROOKS, Bronx, New York
GARY S . HATTEM, N e w Y o r k , N e w Y o r k
RONALD HOMER, B o s t o n , M a s s a c h u s e t t s
THOMAS L . HOUSTON, D a l l a s , T e x a s
KATHARINE W . MCKEE, D u r h a m , N o r t h C a r o l i n a
EDMUND MIERZWINSKI, W a s h i n g t o n , D . C .
A N N E B . SHLAY, P h i l a d e l p h i a , P e n n s y l v a n i a
CATHY CLOUD, W a s h i n g t o n , D . C .
JOHN V. SKINNER, I r v i n g , T e x a s
Orlando, Florida
MICHAEL D . EDWARDS, Yelm, Washington
MICHAEL FERRY, St. Louis, Missouri
ELIZABETH G. FLORES, Laredo, Texas
NORMA L. FREIBERG, New Orleans, Louisiana
LORI GAY, LOS Angeles, California
BONNIE GUITON, Charlottesville, Virginia
REGINALD J. SMITH, K a n s a s City, M i s s o u r i
ALVIN J. COWANS,
THRIFT INSTITUTIONS ADVISORY
LOWELL N . SWANSON, P o r t l a n d , O r e g o n
MICHAEL W . TIERNEY, W a s h i n g t o n , D . C .
LORRAINE VANETTEN, T r o y , M i c h i g a n
GRACE W. WEINSTEIN, E n g l e w o o d , N e w J e r s e y
LILY K. YAO, Honolulu, Hawaii
ROBERT O . ZDENEK, G r e e n w i c h , C o n n e c t i c u t
COUNCIL
BEATRICE D'AGOSTINO, Somerville, New Jersey, President
CHARLES JOHN KOCH, Cleveland, Ohio, Vice President
Lakewood, Colorado
A. COOPER, Minneapolis, Minnesota
PAUL L. ECKERT, Davenport, Iowa
GEORGE R . GLIGOREA, Sheridan, Wyoming
KERRY KILLINGER, Seattle, Washington
New Bedford, Massachusetts
W. MITCHELL, JR., Winston-Salem, North Carolina
STEPHEN W. PROUGH, Irvine, California
STEPHEN D. TAYLOR, Miami, Florida
JOHN M. TIPPETS, DFW Airport, Texas
MALCOLM E . COLLIER,
ROBERT MCCARTER,
WILLIAM
NICHOLAS
A88
Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
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THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.
1984.120 pp.
ANNUAL REPORT.
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Consumer Handbook on Adjustable Rate Mortgages
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A Consumer's Guide to Mortgage Lock-Ins
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Home Mortgages: Understanding the Process and Your Right
to Fair Lending
Making Deposits: When Will Your Money Be Available?
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When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit
A89
STAFF STUDIES: Only Summaries Printed in the
BULLETIN
Studies and papers on economic and financial subjects that are
of general interest. Requests to obtain single copies of the full
text or to be added to the mailing list for the series may be sent
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Staff Studies 1—145 are out of print.
1 4 6 . THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by
Thomas F. Brady. November 1985. 25 pp.
1 4 7 . REVISIONS IN THE MONETARY SERVICES (DIVISIA) INDEXES OF THE MONETARY AGGREGATES, by Helen T. Farr
and Deborah Johnson. December 1985. 42 pp.
1 4 8 . THE MACROECONOMIC AND SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY TAX ACT: SOME SIMULATION
1 5 6 . INTERNATIONAL TRENDS FOR U . S . BANKS AND BANKING
MARKETS, by James V. Houpt. May 1988. 47 pp.
1 5 7 . M 2 PER UNIT OF POTENTIAL G N P AS AN ANCHOR FOR
THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D.
Porter, and David H. Small. April 1989. 28 pp.
1 5 8 . THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE
PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
1 5 9 . N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, by Nellie Liang
and Donald Savage. February 1990. 12 pp.
1 6 0 . 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.
1 6 1 . A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY,
1980-90, by Margaret Hastings Pickering. May 1991.
21pp.
RESULTS, by Flint Bray ton and Peter B. Clark. December
1985.17 pp.
1 6 2 . EVIDENCE ON THE SIZE OF BANKING MARKETS FROM
MORTGAGE LOAN RATES IN TWENTY CITIES, b y S t e p h e n
1 4 9 . THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE AND AFTER ACQUISITION, b y S t e p h e n
1 6 3 . CLEARANCE AND SETTLEMENT IN U . S . SECURITIES MAR-
A. Rhoades. April 1986. 32 pp.
1 5 0 . STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION AND AN APPLICATION, by John T.
Rose and John D. Wolken. May 1986. 13 pp.
1 5 1 . RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING
FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice
A. Rhoades. February 1992. 11 pp.
KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob,
Lauren Hargraves, Richard Mead, Jefif Stehm, and Mary
Ann Taylor. March 1992. 37 pp.
1 6 4 . THE 1 9 8 9 - 9 2 CREDIT CRUNCH FOR REAL ESTATE, b y
James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
P. White, Paul F. O'Brien, and Mary M. McLaughlin.
January 1987. 30 pp.
1 6 5 . THE DEMAND FOR TRADE CREDIT: A N INVESTIGATION OF
MOTIVES FOR TRADE CREDIT USE BY SMALL BUSINESSES,
1 5 2 . DETERMINANTS OF CORPORATE MERGER ACTIVITY: A
REVIEW OF THE LITERATURE, by Mark J. Warshawsky.
by Gregory E. Elliehausen and John D. Wolken. September 1993. 18 pp.
•
April 1987. 18 pp.
by Carolyn D. Davis and
Alice P. White. September 1987. 14 pp.
1 5 3 . STOCK MARKET VOLATILITY,
1 6 6 . THE ECONOMICS OF THE PRIVATE PLACEMENT MARKET,
by Mark Carey, Stephen Prowse, John Rea, and Gregory
Udell. January 1994. I l l 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.
155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J.
Warshawsky. November 1987. 25 pp.
REPRINTS OF BULLETIN ARTICLES
A limited number of reprints of Bulletin articles are available.
One reprint of an article will be sent on request to Publications
Services.
A90
Maps of the Federal Reserve System
LEGEND
Both pages
• Federal Reserve Bank city
• Board of Governors of the Federal
Reserve System, Washington, D.C.
Facing page
• Federal Reserve Branch city
— Branch boundary
NOTE
The Federal Reserve officially identifies Districts
by number and Reserve Bank city (shown on both
pages) and by letter (shown on the facing page).
In the 12th District, the Seattle Branch serves
Alaska, and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories as follows: the New York Bank serves the
Commonwealth of Puerto Rico and the U.S. Virgin
Islands; the San Francisco Bank serves American
Samoa, Guam, and the Commonwealth of the
Northern Mariana Islands. The Board of Governors
revised the branch boundaries of the System most
recently in December 1991.
A91
1-A
2-B
3-C
5_E
4-D
Baltimore
Pittsburgh
NY
OH
Charlotte
i'
Buffalo
CT
• Cincinnati
y
NJ
BOSTON
•
\
NY
N E W YORK
PHILADELPHIA
RICHMOND
CLEVELAND
8-H
7-G
"I
Wl
MO
•
J".
.•
./^Louisville
Detroit •
IA
U
Littl* )
Rock \
ATLANTA
CHICAGO
™
• Memphis
ST.
MS
Louis
9-1
• Helena
m
I
f g g m
MINNEAPOLIS
10-J
12-L
}
•••
NM
MO
R
Okliihoma City
KANSAS CITY
}
'
• Los Angeles
SAN FRANCISCO
•
Salt Lake City
A92
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106
Jerome H. Grossman
Warren B. Rudman
Richard F. Syron
Cathy E. Minehan
NEW YORK*
10045
Maurice R. Greenberg
David A. Hamburg
14240 Joseph J. Castiglia
William J. McDonough
James H. Oltman
PHILADELPHIA
19105
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Buffalo
Cincinnati
Pittsburgh
James M. Mead
Donald J. Kennedy
A. William Reynolds
G. Watts Humphrey, Jr.
45201 John N. Taylor, Jr.
15230 Robert P. Bozzone
Henry J. Faison
Claudine B. Malone
Baltimore
21203 Rebecca Hahn Windsor
Charlotte
28230 Harold D. Kingsmore
Culpeper Communications
and Records Center 22701
RICHMOND*
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
23219
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75201
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Jerry L. Jordan
Sandra Pianalto
J. Alfred Broaddus, Jr.
Jimmie R. Monhollon
Leo Benatar
Hugh M. Brown
Shelton E. Allred
Samuel H. Vickers
Dorothy C. Weaver
Paula Lovell
Jo Ann Slay don
Robert P. Forrestal
Jack Guynn
Richard G. Cline
Robert M. Healey
J. Michael Moore
Silas Keehn
William C. Conrad
Robert H. Quenon
John F. McDonnell
Robert D. Nabholz, Jr.
Laura M. Douglas
Sidney Wilson, Jr.
Thomas C. Melzer
James R. Bowen
Gerald A. Rauenhorst
Jean D. Kinsey
Lane Basso
Gary H. Stern
Colleen K. Strand
Burton A. Dole, Jr.
Herman Cain
Barbara B. Grogan
Ernest L. Holloway
Sheila Griffin
Thomas M. Hoenig
Richard K. Rasdall
Cece Smith
Roger R. Hemminghaus
Alvin T. Johnson
Judy Ley Allen
Erich Wendl
Robert D. McTeer, Jr.
Tony J. Salvaggio
James A. Vohs
Judith M. Runstad
Anita E. Landecker
William A. Hilliard
Gerald R. Sherratt
George F. Russell, Jr.
Robert T. Parry
Patrick K. Barron
Vice President
in charge of branch
Carl W. Turnipseed1
Charles A. Cerino1
Harold J. Swart1
Ronald B. Duncan1
Walter A. Varvel1
John G. Stoides1
Donald E. Nelson1
FredR. Herr1
James D. Hawkins1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso
Roby L. Sloan1
Karl W. Ashman
Howard Wells
John P. Baumgartner
John D. Johnson
Kent M. Scott
David J. France
Harold L. Shewmaker
Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson
John F. Moore1
E. Ronald Liggett1
Andrea P. Wolcott
Gordon Werkema1
•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Jericho,
New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311;
Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
Publications of Interest
FEDERAL RESERVE CONSUMER CREDIT
PUBLICATIONS
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects
as how the Equal Credit Opportunity Act protects
women against discrimination in their credit dealings,
how to use a credit card, and how to resolve a billing
error.
The Board also publishes the Consumer Handbook
to Credit Protection Laws, a complete guide to consumer credit protections. This forty-four-page booklet
explains how to shop and obtain credit, how to maintain a good credit rating, and how to dispute unfair
credit transactions.
Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage Lock-Ins,
A Consumer's Guide to Mortgage Refinancings, and
A Consumer's Guide to Mortgage Settlement Costs.
These booklets were prepared in conjunction with the
Federal Home Loan Bank Board and in consultation
with other federal agencies and trade and consumer
groups.
Copies of consumer publications are available free
of charge from Publications Services, mail stop 127,
Board of Governors of the Federal Reserve System,
Washington, DC 20551. Multiple copies for classroom use are also available free of charge.
A guide to
Business
Credit
A Consumer's
Guide to
Mortgage
Lock-Ins
for Women,
Minorities, and
Small Businesses
[
I
Pi
Publications of Interest
FEDERAL RESERVE REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a four-volume loose-leaf service
containing all Board regulations as well as related
statutes, interpretations, policy statements, rulings,
and staff opinions. For those with a more specialized
interest in the Board's regulations, parts of this service are published separately as handbooks pertaining
to monetary policy, securities credit, consumer affairs,
and the payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated monthly, and each contains
citation indexes and a subject index.
The Monetary Policy and Reserve Requirements
Handbook contains Regulations A, D, and Q, plus
related materials.
The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with related statutes, Board interpretations, rulings,
and staff opinions. Also included are the Board's list
of marginable OTC stocks and its list of foreign
margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, BB, and DD,
and associated materials.
The Payment System Handbook deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulations CC, J, and EE, related statutes and commentaries, and policy statements on risk reduction in the
payment system.
For domestic subscribers, the annual rate is $200
for the Federal Reserve Regulatory Service and $75
for each Handbook. For subscribers outside the
United States, the price including additional air mail
costs is $250 for the Service and $90 for each Handbook. All subscription requests must be accompanied
by a check or money order payable to the Board of
Governors of the Federal Reserve System. Orders
should be addressed to Publications Services, mail
stop 127, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
GUIDE TO THE FLOW OF FUNDS ACCOUNTS
A recent Federal Reserve publication, Guide to the
Flow of Funds Accounts, explains in detail how the
U.S. financial flow accounts are prepared. The
accounts, which are compiled by the Division of
Research and Statistics, are published in the Board's
quarterly Z.l statistical release, "Flow of Funds
Accounts, Flows and Outstandings." The Guide
updates and replaces Introduction to Flow of Funds,
published in 1980.
The 670-page Guide begins with an explanation of
the organization and uses of the flow of funds
accounts and their relationship to the national income
and product accounts prepared by the U.S. Department of Commerce. Also discussed are the individual
data series that make up the accounts and such proce-
dures as seasonal adjustment, extrapolation, and
interpolation.
The balance of the Guide contains explanatory
tables corresponding to the tables of financial flows
data that appeared in the September 1992 Z.l release.
These tables give, for each data series, the source of
the data or the methods of calculation, along with
annual data for 1991 that were published in the
September 1992 release.
Guide to the Flow of Funds Accounts is available
for $8.50 per copy from Publications Services, Board
of Governors of the Federal Reserve System, Washington, DC 20551. Orders must include a check or
money order, in U.S. dollars, made payable to the
Board of Governors of the Federal Reserve System.
@FedFRASER